US risks war with China and Russia

Great interview

While revolts in Tunisia and Egypt caught the US by surprise there is speculation that they are behind revolts in Libya and Syria. Russia and China are also see observing these developments.

Press TV talks with Dr. Paul Craig Roberts, former assistant secretary to US Treasury in Panama City who concisely provides insight as to the larger scope of American hegemonic strategy that seriously risks Russian and Chinese interests.

My predictions...

Ok so silver is down big today in Asia right now and will probably continue to get hammered during the day as the Fed sends it lower prior to the FOMC announcement.

Tomorrow (Tuesday, Apr 26) is a light POMO day (only $1.5-2.5bn) so I anticipate further sell-off in the equity markets with the anticipation of no QE2.  Other negative news such as poor company earnings announcements and dollar fears will cause further markets to tank. 



On Wednesday, FOMC will announce that the markets have stabilized, QE2 has worked and inflation is a temporary threat.  They will likely signal to market that there will be no extension to QE2.  I do not know the format of Bernanke's conference but if it is a legitimate Q&A, he will fail miserably.  Either way, markets will continue to decline significantly, especially since Wed is NOT a POMO day (see Fed POMO schedule: http://www.newyorkfed.org/markets/tot_operation_schedule.html#).

On Thursday, we will continue to see markets sell off, silver will continue to decline to below $38 level.  At that point, massive capital that has been sitting on the sidelines will start buying (they will have started accumulating at the 42 level) and silver will settle by the end of the week at $43.50. 

This will be the final time we see silver below $40.  After that it will consolidate in the mid $40s and then begin its ascent to over $50 by early May.  After that there will be a skirmish at $60 and a major battle at $75.

Best way to play this is to sit back right now with cash (equity account).  I am mostly in cash with some AGQ (10% of equity account) and TVIX (10%).  My remaining 80% is in cash as I sold out of all my miners last week (I was holding mostly SLW and junior minors AG and GPL).

I also maintain a core physical silver holdings (representing 30% of total account) that I will not sell and am planning to continue to build.  Have about 10% in cash right now that I will use to accumulate more physical.

Tomorrow I will consider buying ZSL for a one or two day hold.  I would buy puts on the market but I want a more appropriate hedge against my large silver holdings.  I am long silver but cannot deny that this downward correction will last through Wednesday, maybe Thursday. 

On Wednesday PM, I will exit my ZSL position.  All excess returns will be used to build physical.  The rest will be put into AGQ.

There you have it.  I welcome your thoughts and opinions on this strategy!

World's Largest Atom Smasher May Have Detected 'God Particle'

World's Largest Atom Smasher May Have Detected 'God Particle'

Published April 22, 2011

| LiveScience

AP

Aug. 7, 2010: An amateur photographer takes a picture in the assembly room of the elements of the LHC (large hadron collider) during the Particle Physics Photowalk at the European Particle Physics laboratory (CERN) in Geneva, Switzerland.

Telegraph Opinion - The United States faces a crisis not seen since the Depression

The United States faces a crisis not seen since the Depression

The poisonous atmosphere surrounding the role of the state and taxation allows no realistic budget bargaining

• 

Maybe it's because Boston is different, a semi-detached city in one of the US's most liberal states. But the news that the world's biggest economy had had its creditworthiness challenged for the first time by the upstart rating agency Standard & Poor's (S&P) hardly seemed to register with the locals.
No one I met fulminated about loss of economic sovereignty or that S&P, whose purblind approval of junk mortgage debt as triple A was one of the causes of the financial crisis, had finally over-reached itself. Bostonians seemed unconcerned. Perhaps this was because it was just one more surreal moment in the pantomime that is American economic and political life.

• 24/4/2011 19:23
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Can BRICS soften dollar crisis?

BRICS
© RIA Novosti. Dmitry Astakhov

15:23 21/04/2011

Alexander SALITSKY, PhD, Chief Scientific Officer IMEMO, Strategic Culture Foundation expert, was published in International Affairs magazine.

On April 10, in an interview with a CNN host and political observer Fareed Zakaria, the former secretary of state James Baker, when he was speaking about the current global changes, said the following: “The biggest challenge facing the U.S. isn’t turmoil in the Arab world. It’s our debt bomb”.  He said that without a strong dollar the US will turn into the United States of Greece. I think we could go on with the list of the problems the US is not interested in such as human rights, democracy, freedom and other “fundamental” things. It also concerns terrorism to some extend. 

FT: Silver surge prompts conspiracy theorists

Silver surge prompts conspiracy theorists

By Jack Farchy
Published: April 21 2011 10:23 | Last updated: April 21 2011 10:23

In 1980 it was the Hunt brothers. In 1998 it was Warren Buffett. And in 2011?
For anyone unversed in the history of the silver market, those dates refer to market squeezes that caused surges in the silver price. The talk among some conspiracy-minded traders and analysts is that something similar could be happening today.

Do you really want to know how badly states are struggling?

Below details public education system, but do not think the police, fire, EMT, etc workers are not going through the same massive rounds of layoffs...

Guest post: Crisis in public education...RJs newsletter

Angry Bear | Apr. 16, 2011, 2:19 PM | Guest Post by RJS

Crisis in public education

School districts around the country have been hit with a triple whammy of cuts to their funding this year...

First, the direct aid in the form of federal ARRA has run its course, so they're no longer receiving that supplement.

Second, the states have budgetary problems for the same recession-related reasons that federal revenues have declined, and as a result a significant number of them have cut their funds for education and local governments...

Third and most recently, the decline in housing & commercial property values accompanying the bubble bursting has started to translate into declining property tax revenues...but even last year, while school districts were supposed to be getting direct aid from the federal stimulus, I was seeing about a half dozen articles a week from districts around the country where cutbacks to their educational programs were being made...this year, now that federal aid has been cut off, the problem seems to have gotten worse...

According to the recent BLS Employment Situation Summary,  local governments have lost 416000 jobs since an employment peak in September 2008....from what I've observed, it seems the lions share of those job losses have resulted from school district cutbacks...but it's not normally a national story; typically, its a local news story, where upset parents show up at the school board meeting and each district cuts something different; some cut teachers, some spec ed, some cut sports, or art & music, or field trips, still others have cut over a month off the school year...so im going to try to tell this larger story with links to a number of small ones which have appeared since the beginning of the year...