**RED ALERT**: Ann Barnhardt Says “GET THE HELL OUT. GET OUT OF ALL PAPER.”

by SGT:

I just finished listening to the most gripping, honest and frightening interview that I’ve heard in years. With credit to James Puplava at FinancialSense.com I’ll share some of it with you here.
It was with this shockingly candid letter to her clients and colleagues “The Entire System Has Been Utterly Destroyed By The MF Global Collapse” that Ann Barnhardt closed down her commodity brokerage firm Barnhardt Capital Management two weeks ago. Citing what she calls the “unprecedented, unfathomable and completely and totally intolerable actions of the CFTC, SEC and the CME following the MF Global collapse”, Barnhardt now lays it all out for those with the ears to hear.
If Pastor Lindesy Williams many warnings about the dangers of holding paper assets hasn’t done it for you, this will. Barnhardt pulls no punches referring to Jon Corzine as “one of these criminal Oligarchs”. In this lucid, articulate and dramatic rant, Ann Barnhardt carefully outlines the now absolutley dire state of affairs in the United States:

“You have to understand, people like Jon Corzine, these are evil, evil people. You have to stop thinking that these people are just misguided, or there’s some sort of difference of opinion on economic theory. These people are nefariously trying to destroy everything in this country. It’s called the Cloward-Piven strategy. Go in and destory and collapse the entire economy, everything. And then re-build a new Marxist Socialist Fascist State out of the burning rubble of this destruction. This is not a function of incompetence. It’s a function of malice of forethought and conscientious theft and destruction.”

At 25 minutes into this exceptional interview, acting as an honorable Watchman at the Tower warning her fellow Americans, Barnhardt warns:

“Get the hell out. Get out of all paper… This is going to cascade through everything. It’s going to get into the equities, it’s going to get into 401K’s and IRA’s, it’s going to get into pension plans. Total systematic collapse. Get out. I don’t know how I can be any more plain about this.”

Listen to this “Interview of The Year” Now @ FinancialSense.com

A Hedge Fund Insider Explains Why Retail Investors Should Flee The Stock Market

Regular readers know that ever since 2009, well before the confidence destroying flash crash of May 2010, Zero Hedge had been advocating that regular retail investors shun the equity market in its entirety as it is anything but "fair and efficient" in which frontrunning for a select few is legal, in which insider trading is permitted for politicians and is masked as "expert networks" for others, in which the government itself leaks information to a hand-picked elite of the wealthiest investors, in which investment banks send out their "huddle" top picks to "whale" accounts before everyone else gets access, in which hedge funds form "clubs" and collude in moving the market, in which millisecond algorithms make instantaneous decisions which regular investors can never hope to beat, in which daily record volatility triggers sell limits virtually assuring daytrading losses, and where the bid/ask spreads for all but the choicest few make the prospect of breaking even, let alone winning, quite daunting. In short: a rigged casino. What is gratifying is to see that this warning is permeating an ever broader cross-section of the retail population with hundreds of billions in equity fund outflows in the past two years. And yet, some pathological gamblers still return day after day, in hope of striking it rich, despite odds which make a slot machine seem like the proverbial pot of gold at the end of the rainbow. In that regard, we are happy to present another perspective: this time from a hedge fund insider who while advocating his support for the OWS movement, explains, in no uncertain terms, and in a somewhat more detailed and lucid fashion, both how and why the market is not only broken, but rigged, and why it is nothing but a wealth extraction mechanism in which the richest slowly but surely steal the money from everyone else who still trades any public stock equity.

UBS On "How Bad Might It Get" And Why "Sooner Or Later Intense Instability Will Resume"

Despite the very short term bounce in markets on yet another soon to be failed experiment in global liquidity pump priming, UBS' Andrew Cates refuses to take his eyes of the ball which is namely preventing a European collapse by explaining precisely what the world would look like if a European collapse were allowed to occur. Which is why to people like Cates this week's indeterminate intervention is the worst thing that could happen as it only provides a few days worth of symptomatic breathing room, even as the underlying causes get worse and worse. So, paradoxically, we have reached a point where the better things get (yesterday we showed just how "better" they get as soon as the market realized that the intervention half life has passed), the more the European banks will push to make things appear and be as bad as possible, as the last thing any bank in Europe can afford now is for the ECB to lose sight of the target which is that it has to print. Which explains today's release of "How bad might it get", posted a day after the Fed's latest bail out: because instead of attempting to beguile the general public into a false sense of complacency, UBS found it key to take the threat warnings to the next level. Which in itself speaks volumes. What also speaks volumes is his conclusion: "Finally it is worth underscoring again that a Euro break-up scenario would generate much more macroeconomic pain for Europe and the world. It is a scenario that cannot be readily modelled. But it is now a tail risk that should be afforded a non-negligible probability. Steps toward fiscal union and a more proactive ECB, after all, will still not address the fundamental imbalances and competitiveness issues that bedevil the Euro zone. Nor will they tackle the inadequacy of structural growth drivers and the deep-seated demographic challenges that the region faces in the period ahead. Monetary initiatives designed to shore up confidence can give politicians more time to enact the necessary policies. But absent those policies and sooner or later intense instability will resume." So what exactly does UBS predict will happen in a scenario where the European contagion finally spills out from the continent and touches on US shores?

Guest Post: When Governments Go Rogue

There are those today who would claim that the lifeblood of a nation is dependent upon the graces of its government.  That government is the focal point of cultural growth, and that we as citizens should respect it as such.  I would be more inclined to agree if the public did not so easily confuse the ideals of leadership with the actions of criminals.  That is to say, regardless of what we wish our government to be, bureaucracies rarely, if ever, embody the spirit of the common man (a necessity for any system that purports to defend the citizenry).  Instead, bureaucracies almost inevitably deteriorate into vehicles for the perpetuation of tyranny driven by the very worst of all stewards; elitist minorities with delusions of godhood.
Unfortunately, despite this fact, the masses often treat these industrious vermin and the plagues of society that they build with the same reverence as they would a sincere and honorable body politic.

A Snapshot Of Ludicrous Volatility: Since May 1 The S&P Has Travelled 1234 Points Yet Is Unchanged For The Year

To suggest financial markets have been volatile as of late is simply a wild understatement.  Although we've certainly seen this type of volatility in terms of percentage moves over short spaces of time in the past, we can't remember when we've last seen this degree of volatility within the context of whipsaw back and forth movement.  Although it may sound hard to believe, if one looked only at closing S&P prices and added up the interim high to low and low to high movements of the SPX since literally May 1 of this year, the S&P has traveled 1,233.83 points!!!!  More than the entire value of the SPX as of the close the day after Thanksgiving.  Now how's that for volatility over a seven month period? Has this played havoc with fragile human emotions?  C'mon.  You may remember that we saw many a headline Street soothsayer turn outright bearish at the end of September, lowering equity allocations as well as equity index targets.  Speaking of defensive portfolio postures and the chance for the S&P to breach 1000 to the downside.  Four short weeks and 186 S&P points to the upside later, giddy strategists and other assorted Street fortune tellers rushed to upgrade equity outlooks literally right on top of the highly anticipated late October Euro bailout plan (which in hindsight has turned out to be neither a bailout nor a plan). We watched in strange amusement as increasing beta exposure recommendations flooded the Street, of course coming after a blistering four week 17% run to the upside in the SPX.  The immediate result of these recommendations of the pros?  A very quick four week 10% loss in the S&P, as a proxy for equities broadly.  It’s never easy, is it?

Of Coordinated Intervention And The PPT. Biderman Questions Our Faith

In one of his best rants of recent times, Charles Biderman, of TrimTabs, exclaims his consternation at the globally co-ordinated central bank intervention and the mainstream media's interpretation of said act. Viewing the interventions as a sign of desperation, the avuncular Biderman fears the instability that lurks just under the carefully veneered surface of the markets. Describing the goal of the Fed as having clearly changed from one of inflation and/or employment to asset-value-elevation, he raises a critical question (that perhaps only Noda knows the answer to): "What happens when central bank interventions are no longer effective?". Faith in the widely held view that money can be created out of nothing and used to solve all financial problems is likely to be tested sooner rather than later.

Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fail Banks?

from The Economic Collapse Blog:
What you are about to read should absolutely astound you. During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret. Do you remember the TARP bailout? The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the “too big to fail” banks. Well, that bailout was pocket change compared to what the Federal Reserve did. As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010. So have you heard about this on the nightly news? Probably not. Lately Bloomberg has been reporting on some of this, but even they are not giving people the whole picture. The American people need to be told about this 16 trillion dollar bailout, because it is a perfect example of why the Federal Reserve needs to be shut down. The Federal Reserve has been actively picking “winners” and “losers” in the financial system, and it turns out that the “friends” of the Fed always get bailed out and always end up among the “winners”. This is not how a free market system is supposed to work.
Read More @ TheEconomicCollapseBlog.com

Soros: World Financial System on Brink of Collapse

by Brenda Cronin, The Wall Street Journal:

The world financial system not only isn’t functioning, it’s on the brink of collapse, according to investor George Soros.
The Hungarian-born philanthropist [Ed. Note: They meant 'psychopath', not 'philanthropist'], who recently spent time in areas where his charities are active, such as Africa, said he sees a growing bifurcation between emerging and developed countries – and he’s more confident about prospects for the emerging ones.
Despite their assorted problems, including corruption, weak infrastructure and shaky government, developing countries are relatively unscathed by the “deflationary debt trap that the developed world is falling into,” Mr. Soros said at a New York gathering to mark the 10th anniversary of the International Senior Lawyers Project, a group that provides pro bono legal services around the world. Mr. Soros was among those honored by ISLP, for his work as founder and chairman of the Open Society Foundations, which supports democracy and human rights.
Read More…

Chinese Economy Crash, No Free Markets, Gov. Manipulation, Gold & More

King World News has released the audio of their interview with Dr. Marc Faber: Editor & Publisher of the Gloom Boom & Doom Report.
Marc is famous for advising his clients to get out of the stock market one week before the October 1987 crash and other great calls. He has also gained a reputation as a contrarian investor. Marc is often quoted in both national, international media and is a frequent speaker on various TV programs. During the 1970’s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong from the beginning of 1978 until 1990. In 1990, he set up his own business, Marc Faber Limited. Marc was born in Zurich and schooled in Geneva, Switzerland. He studied Economics at the University of Zurich and obtained a Ph.D. in Economics magna cum laude. Marc resides in Thailand and is best known as the author of the Gloom Boom Doom report.
You can listen to the interview HERE. (On the left side of the page, half way down, click on the small purple logo that reads, “Listen to MP3 – CLICK HERE”)

Jim Sinclair’s Commentary

In case you did not see media coverage on this situation.

China Will Not Hesitate To Protect Iran Even With A Third World War

Jim’s Mailbox

December 1, 2011, at 12:54 pm
by Jim Sinclair 

Jim,

It is no longer paper, and there is no need to cut down trees. They press a key or two on a keyboard and voila money is made.

Welcome to the financial Disney World. We the public all will pay for this with real hours of work and with real sacrificed money.

CIGA L.

How Does Europe Borrow Dollars From the Fed? By: John Carney

The Federal Reserve and other banks announced Wednesday that they were engaging in a coordinated action to provide liquidity to Europe’s credit markets.
What essentially happened is that the Fed cut the interest rate it charges the European Central Bank to borrow dollars.
The ECB wants the dollars so it can lend them out to European banks, which have been having trouble borrowing dollars at affordable rates due to fears about their financial health.
It’s worth taking a moment to see what actually happens with these swap facilities because they can create the illusion we’re sending boatloads of dollars overseas and the ECB is sending us boatloads full of euros.
Would-be pirates will be disappointed that no currency flotillas cross back and forth on the Atlantic.
What really takes place, for the most part, is down on Maiden Lane in Manhattan’s financial district. That’s where the headquarters of the Federal Reserve Bank of New York is located.
Like most interbank transfers these days, everything is done electronically.
More…




Confidence Is The Wildcard  
CIGA Eric

Excellent conclusions provided by Jim. Confidence continues to be wildcard in this game. If confidence is merely a function of liquidity, then, perhaps, the unexpected can be removed from the list of possible outcomes. Be careful, though. Something that simply cannot fail more often than not does.
Participation in gold has been flushed in 2011. The flush could deepen and extend into 2012 (chart 1) as commercial short positions (connected money) remains uncharacteristically high for D-wave bottom (chart 2). More time and chop may be needed to setup the big turn.
Chart 1: Gold London P.M Fixed (Gold) and the COT Futures and Options Open Interest Stochastic Weighted Average (WA)
Chart 2: Gold London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Long & Short As A % of Open Interest
The angst surrounding the correction of 2011 to 2012 will have been long forgotten by 2015.
Chart 3: Gold, London P.M. Fixed (Gold) and Z Scores of Secular Trend

Commentary: No Major Clearing House Can Fail

The reason that sovereign debt cannot fail is the five largest US banks hold trillions of dollars of credit default swap OTC derivatives guaranteeing that garbage against failure.

If euro debt fails, the Western financial world implodes, so it will not now.

"QE to Infinity" and gold at $4500 is coming as sure as death and taxes. Good call, Alf!

What a head fake gold gave last week, turning almost everyone, even some big guys, gold bearish. They should have known better.

Source: jsmineset.com
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