(Tacoma, WA) Yes. The Dow will probably drop 150 points at some point during today’s trading session.
This after the Greeks voted this weekend to kick the moneychangers out of the Hellenic temples and send ‘em packing.
The problem Greece has is pretty simple.
There are three kinds of money in the world today: One kind (admittedly rare) .is backed by a hard asset like gold or silver.
Our analysis is that there is room for a food and energy currency, too, but the rest of the world (RoW) doesn’t read this column and so we don’t have that yet.
The second kind of currency is the kind backed by politicians. They simply promise the moon and conduct accounting operations that would land civilians in jail. What we call the National Debt, for example, would be called “check kiting” if you or I were doing it.
And then there is money backed by industrious people who work hard.
In Friday’s note, I explained how the world was crazy: If Greece is such a bad credit deal, the European markets should rally on the departure of such a huge financial sink hole.
This morning, it turns out, that was only the tip of the financial stupidity making the rounds right now.
The add-on today is the US market is going down…as has China and much of Asia and Europe.
This makes no sense at all.
Perhaps, if the Greeks are wily (they generally are), they will set up a huge duty free port zone, suggested one reader. Build a massive container operation and run up a Chinese flag over it. Then let Chinese goods come into Europe and yes, I suppose that would scare the hell out of Europe.
But that hasn’t happened yet. No one is talking about it, except for genuinely Machiavellian UrbanSurvival readers.
Well, not all Urban readers, just a fixed income guru who offered this idea:
“If I were running Greece – I would re-submit the last compromise they offered which is I believe a 75% haircut and a repayment schedule of 1% for 30 years on the balance – and give them 24 hours – that’s our negotiation. It would be turned down at which point I would inform them that they the EU will be sued in the event they try to kick Greece out – there is no such mechanism for them to do so. Then I would arrest Papandreou (sp) I think he was running Greece back then and all members of his Gov’t that worked with Goldman to cook the books to gain entry into the EU. I would arrest every Goldman employee in Greece and bar Goldman for any future business for ever and I would rid the country of every EU bureaucrat- I would declare all EU debt null and void as entry was made on false premises – bankers get zero. I’m sure they have already been printing Drachma. I would finalize the gas pipeline with Russia as well as the trade agreement for fruits and vegetables – I would ink a lease in perpetuity for a deep water port with China and let the EU get ready to pucker……..”
Seems like a plan to me…let’s see if the Greeks are ready to stand up and kick some post-Icelandic Euro-ass, shall we?
Which gets me to the point: The real reason the markets are down globally has less to do with Greece than “You can’t fool all of the people, all of the time…”
And that list included Iceland and now includes Greece.
A couple of more and we’ll have a trend.
And that would mean the leach-class of bankster’s who own the money-changers franchise would have even more trouble ahead.
Couldn’t have happened to a nicer bunch of pricks.
But the money-changers aren’t throwing in the towel yet.
Ever walk off a used car lot saying “No, not interested”? That’s what Greece just did.
On a used car lot, the salesman would shout after you “Wait…If I could sweeten the deal to (xzy) would you take it?
That’s what’s going on now as the banksters are lining up the “If I could sweeten the deal…” pitch.
If the Greeks have 2-drachmas of financial brainpower left, they’ll keep walking /…no, make that run from the used paper lot as fast as they can.
Bet me he’s sent a resume to the bankster side?
One of the clear views on this comes from Nick Farage who writes it’s the European Union dying before our eyes… My, that has a familiar ring to it, doesn’t it?
You know how the US is going through a Mexification as South Americans flood in and drive down wages? Well, same thing in Europe. Just wait till the container ships start bringing in goods made by people who don’t have unions and who don’t get 9-weeks vacation…
That’s the real reason markets are down: the global trade game is dying.
Trashing The Don
All kinds of media play as the republicans are proving, yet again, how they don’t have 2-drachmas worth of brains, either.
This as reports circulate about how many are trying to distance themselves from The Don’s hard line on border control which used to be a GOP touchstone, once upon a time.
Know what my dream teams would be for the 2016 presidential contest would be?
Bernie Sanders and Liz Warren on the liberal ticket and Trump/Cruz on the republican side.
That would actually be a choice.
Which we won’t have since the Bushistas and Clintonistas have the keys to both the bank and the voting machines.
But in a real democracy that would be choice. In a corptocracy? Ain’t happening if the Don stops writing checks.
We hold to our simple view “No YAB-YAC” (Yet another Bush, Yet another Clinton) anti aristocracy platform.
But not enough people read UrbanSurvival to think our way out of the bag on this. And people are so damn stupid when comes to free lunch promises.
Islamists Want Africa
First, you need the Wikipedia note on who Boko Haram is:
Boko Haram (“Western education is forbidden”), officially called Jama’atu Ahlis Sunna Lidda’Awati Wal-Jihad (Arabic: ????? ??? ????? ?????? ????????, Jam?’at Ahl as-Sunnah lid-Da’wah wa’l-Jih?d, “Group of the People of Sunnah for Preaching and Jihad”), or Wil?yat al S?d?n al Gharb? (Arabic: ????? ??????? ???????, “The state of western Sudan”), or the Islamic State’s West Africa Province (Iswap), is a jihadist group based in northeastern Nigeria, also active in Chad, Niger and northern Cameroon. The group is led by Abubakar Shekau. Estimates of the group’s membership varies between 7,000 and 10,000 fighters. The group initially had links to al-Qaeda, but in 2014 it expressed support for the Islamic State of Iraq and the Levant before pledging formal allegiance to it in March 2015
While the West keeps falling into the pit of correctness disease, the global Caliphate is expanding quickly and occupying rural areas from whence it will eventually fight a resource control action against which the West can’t defend.
You know…like North Korea did back in the day?
Oh, sure, we see daily headlines about how the West is attacking Islamic State in Raqqa…but the real problem is that there is no “front” in old-school terms.
The front is the phone and we aren’t selling a good product.
If America had a more legit American Dream, that actually delivered more than a Housing Collapse, we would be able to market “best of class” government.
but since we have the corporate government in place, and since dreams and aspirations are being hosed all over, of course the side with the better ad campaign is going to win.
The wars of today are front-less, in your face, and our belief systems are in shambles and tatters and without them, we’re totally screwed.
In slow-motion, though, if that’s any consolation.
Ready to Roll Over
While we think there may be one more major leg up to this market, the smart money may want to consider the data and look at some bearish positions for this fall.
While it is axiomatic that markets don’t crash from the top. They crash from lows.
And about the time we get back from our Peoplenomics cruise in September, the 13th, crap ought to be ready to really hit the fan.
With this in mind, a possible sign of roll-over can be seen in this morning’s Gallup poll report on consumer spending, which just came out: Flat in June. Not a good sign of what’s to come.
I mean, back in the day, it was no big to refi a home to buy a new Escalade or Exploder. But would you rollover a house note to get a new iPhone?
And that’s the trouble. 4K phones and Siri ain’t big enough to save the Western Economy.
International Trade report tomorrow and we suspect that will be grim…