Big Picture from the Road
Clearly the chaos has begun and it's hard to tell what the most important things to follow these days are. Here's a quick list of the things I'm interested in:
1) The JPM derivative problem is HUGE. If it was only $2B they could have, and would have, swept it under the rug by burying it. It is a "nothing burger" for a portfolio of derivatives of over $70T. But it wasn't buried. It was brought out in the open for all to see and comment on. There is much more to follow.
2) There is word out of Greece that bank runs have begun. The people are running to get their EUROS out of the bank but soon after they will be trading those in for REAL GOODS. If they are smart they will stock up on the necessities like food, water, supplies, gold and especially silver. It will happen very fast.
3) There are NO PLANS for any country to leave the Euro. No plans at all. JP Morgan recently predicted that if Greece were to leave the Euro it would blow a $400B hole in the banking system. The banks are already on life support so even this occurrence will push them over the cliff.
4) Although I believe the Good Guys plan is to put forward Ron Paul as the Republican candidate there is another winning scenario. If the anger towards our 2 party system gets so extreme that everyone is looking for an alternative...Ron Paul would be a third party choice that could win. He'd pull votes from the Republican Party, the Democratic Party, the Libertarian Party as well as everyone in the middle. It is possible...but I think the plan is still to have him run as a Republican. It will take a banking crash to get him elected...hint, hint!
5) Gold/Silver - Aren't you happy that you are on the SIDELINES with your physical?! We knew "they" could set the price anywhere they wanted and that's exactly what they are doing. The only way to survive is to be on the sidelines with your metal out of their hands. When all is said and done you will be very happy that you are holding physical.
As to when it will all go sideways...keep an eye on JP Morgan as their take down has begun. Blythe Masters will have to EAT HER WORDS! That will be a great day :-)
Those are my top 5 issues I'm keeping an eye on.
You should watch them too.
Bix
