FED force feeds Market Mania with ZIRP

While the stock market is manipulated ever higher and higher, the US economy is growing ever sicker and sicker.  ALL these things we predicted back in our inaugural issue of our Market Review and in our very first Blogs when we decided to go VERY public with our forecasts.

The following news story does reveal the truth of all the economic horrors that we are right now living through and the ordained fact that even MUCH greater horrors are in store for all of us when the “Great Deception of 2012” is finally completed in mid 2014 to late 2014 with the Dow Jones above 16,500! 

For, the FED is now revealing, in the following article, that they do intend to leave the insane ZIRP in place until THE WINTER of 2014, which does clearly reveal that they are forcing the American 'Sheeple' to buy stocks and that they DO UNEQUIVOCALLY KNOW that this economy is deathly ILL!
Well, these things should be very, very clear, if you know how to read the tealeaves.  We will give a very short lesson here.  The Sheeple are being told (30 to 50 times a day) that the stock market is going up because the economy is getting better.  This is an outright lie, as the following ‘Micro–Mini- Analysis’ (MMA) will clearly reveal:

#1 The Sheeple are told every day that Caterpillar is experiencing greater sales because the economy is improving. 

This is an outright lie!

Caterpillar is showing ever increasing sales because, because there is now a worldwide explosion in the mining of GOLD and SILVER and other precious metals.  And this is so because the smart money ALL OVER THE WORLD KNOWS that the real inflation rate is MUCH higher than the 2.5% reported by the US CD to the compliant and ignorant American ‘Sheeple’ and that it is soon to be soaring!

The rest of the Dow and S&P components that are pushing ever higher are Internet stocks like Google and Apple that have NOTHING to do with an improving American economy.   Google and Apple are not adding workers from middle America.  In fact, they both import their High Tech wizards from India, while Apple exports all their manufacturing and assembly jobs to the Third World at very near slave-labor rates.

Neither of these two “Darlings of Wall Street” - nor the ridiculous Internet IPO’s that are now hitting the Street – contribute one iota to the real US economy, as far as substantial jobs or employment opportunities for middle class Americans.

And, MARK OUR WORDS, Caterpillar is VERY likely to begin exporting jobs real soon, just as has Boeing and many other formerly stalwart American companies!
So, are you and your company ready for a poorer American consumer?

You had better be, especially after Obama’s ‘Bait and Switch’ “Buffet Tax Bill” passes and really begins to pauperize the middle class!
U.S. Stocks Advance as Federal Reserve Signals Low Rates
Bloomberg; By Rita Nazareth - Apr 12, 2012 12:51 PM ET

April 12 (Bloomberg) -- Kate Moore, senior global equity strategist at Bank of America Merrill Lynch, discusses the outlook for U.S. markets and investment strategy…
The S&P 500 advanced 1.2 percent to 1,385.45 at 12:50 p.m. New York time. The benchmark gauge yesterday snapped the longest losing streak since November
“We’ll continue to see similar language: the Fed is ready to provide more accommodation if necessary,” said Russ Koesterich, the San Francisco-based global chief investment strategist for the IShares unit of BlackRock Inc…
 
Equities rose after Federal Reserve Vice Chairman Janet Yellen and Fed Bank of New York President William C. Dudley endorsed the central bank’s view that borrowing costs are likely to stay low through 2014. U.S. central bankers next meet on April 24-25 to debate policy after a report last week showed job growth slowed to the weakest pace in five months.
Jobless Claims

The comments offset investors’ disappointment after a government report today showing that more Americans than forecast filed claims for jobless benefits last week, a sign the pace of improvement in the labor market is slowing.

….“It’s very difficult to kill a rally that we’ve seen over the last few months in one shot,” said Michael Shaoul, chairman of Marketfield Asset Management in New York, which oversees more than $1.6 billion. “Without new news it will be very difficult to send this market lower. Ultimately, earnings are going to be important. I would expect good domestic earnings.”

Caterpillar, Alcoa

The Morgan Stanley Cyclical Index of companies most-tied to economic growth added 2.5 percent. The Dow Jones Transportation Average, considered a proxy for the economy, gained 2.4 percent. Caterpillar Inc. (CAT) advanced 3.7 percent to $105.50. Alcoa rose 2.8 percent to $10.18.

…Google, which is scheduled to report first-quarter results after the market close, added 1.2 percent to $643.80. On average, the analysts surveyed by Bloomberg estimate earnings of $9.64, a 19 percent growth from the same period a year earlier.
Google’s Cash

…The retreat in the S&P 500 may not be over, as a gauge of bullishness reached levels that coincided with the market’s peak in 2007 and preceded the biggest pullback in both of the last two years.

The Consensus Bullish Sentiment index on stocks, based on a weekly survey of brokerage strategists and newsletter writers, exceeded 75 percent for seven weeks through April 3, the longest streak since Kansas City,
…
“We’re concerned at what we view as very complacent bullish sentiment, almost frothy, and it needs to be unwound,” John Kattar, chief investment officer at Eastern Investment Advisors in Boston, which manages $1.7 billion, said in a telephone interview. “We should see some fear creeping back into the market, but we’re a long way from that happening yet.”

Sheering the Sheeple of their Gold

Well Folks the following article proves that the Psy-Ops (Psychological Operations) of the MSM (MainStream Media) is now going into high gear, as they really begin to scare the Sheeple out of ALL things Gold and into common stocks.

We foresaw EXACTLY these things just over three years ago (March 2009) and wrote of them here - back in November 2011.  When other experts saw Gold going to $2,000 in December 2011, we predicted DOWN.  Our very clear predictions on the stock markets and inflation and Gold and interest rates all  are clearly in lock-step with what is now happening.  

Since then, we have covered these things ‘ad infinitum’ in all our Blogs.  

The MSM's Psy-Ops on gold is all part of a program of manipulation that is intended to persuade ALL Sheeple that they are experiencing inflation of only 1.5 to 2.5% per annum and not being MURDERED every day by raging inflation for ALL food and sundries and fuel and everything else they really do pay for (like insurance and ink cartridges and GIRL SCOUT COOKIES and INK PENS and CLOTHS PINS and NAILS and SCREWS and PAINT and POTTING SOIL and fertilizer and taxes and tolls for bridges and tollways and tires and ALL utilities and etc., etc.).

The goal of the "Puppet Masters" is to move all Sheeple out of Gold and interest bearing investments and into common stocks, where they will be finally WIPED OUT in the GREATEST stock market crash of the century - right after the “Great Deception of 2012” is completed and the aggregate market PE has been run to truly insane levels and some “Fruitcake” stocks actually go over a thousand dollars a share, i.e. you do know which stocks I refer to, I hope!

Are you and your company ready for the market dislocating horrors that are ordained to ensue after that?

If not – or if you don’t even have the slightest comprehension of what we are talking about – you had better read all our pages at www.polestarcomm.com and all of these Blogs starting from the beginning or subscribe to our Market Review and Quarterly Updates.

If you don’t see the need of any of these things and you do choose to follow the ‘economist class,’ some of whom are quoted in the following article, that DID NOT see the First wave of the Super Tsunami “Kondratieff” Long-Wave coming, then check out the list of those companies, THAT WENT BANKRUPT, on the bottom of our Home page that your company will most likely be joining in the 2014 time-frame.

Gold Traders Bearish for First Time in 2012: Commodities

Bloomberg; By Nicholas Larkin - Apr 5, 2012 11:09 AM ET

 

Gold Rush Tarnished by the Federal Reserve

Gold traders are bearish for the first time this year after the Federal Reserve signaled it may refrain from more monetary stimulus and jewelers in India, the world’s biggest bullion market, shut to protest a new tax.

Fifteen of 29 analysts surveyed by Bloomberg expect prices to decline next week and five were neutral, the highest proportion since Dec. 30. Imports by India may have plunged as much as 81 percent in March and could drop 40 percent in the second quarter…

Slumping Indian demand comes as prices already erased more than half of this year’s gains on mounting concern the Fed won’t buy more debt. …

“Reduced prospects for quantitative easing, if you read that as a strengthening U.S. economy, then it’s bad for gold,” said Carole Ferguson, an analyst at Fairfax IS in London. “Gold has lost some of its safe-haven shine this year. …

 Labor Department report tomorrow may show employment rose by more than 200,000 workers for a fourth consecutive month, according to a Bloomberg survey of economists. U.S. growth will accelerate to 2.2 percent this quarter and 2.5 percent in the following three months, compared with 2 percent in the first quarter, according to the median of 73 economist estimates compiled by Bloomberg.

(Now remember, THESE ECONOMISTS ARE THE VERY SAME CLASS OF PEOPLE THAT DID NOT SEE THE CREDIT-CRISIS OF 2007/08 COMING AND THEN DID CLAIM THAT NO ONE COULD HAVE FORESEEN SUCH THINGS, WHICH ONLY PROVES THAT BESIDES BEING IGNORANT - THEY DO LIE.  FOR JUST A PARTIAL LIST OF those (including us) WHO DID SEE THAT DISASTER COMING, GO TO the the fourth paragraph of the section entitled "Epilogue...2006" on OUR HOME PAGE at www.polestarcomm.com.

And now the reporters for the MSM are asking these “Blind Shepherds”  what they think is going to happen.  And then the reporters do report the economist's gibberish and BALDERDASH as though it does have value, because people are repeatedly told (explicitly and implicitly) that economists ‘Have a Handle’ on what is coming, when it is quite clear (to all who really study their pontifications over time, going back at least to the '60s) that the ONLY thing economists "Have a Handle" on is something ('private') I can't mention in this Blog.

Now, please read our “Econometrics” page and our “New Normal” page and our “Home” page at www.polestarcomm.com, if you really would like to understand why this type of news story quoting the vacuously-founded meditations of economists is very dangerous for all people who do read it and do not understand the utter worthlessness of this 'pabulum' that is being passed off as 'news' and that they are being fed daily - NOW and into the "Great Deception of 2012!"

And, as you can see below the ‘real’ smart money continues to be long huge amounts of actual Gold, which accumulations we believe will increase dramatically over the next 36 months with the true horrors that will emerge with the onslaught of the Second wave (of three) of the Super Tsunami “Kondratieff” Long- Wave.

Investors in exchange-traded products backed by gold remain bullish, holding 2,398.2 tons valued at about $125.4 billion, data compiled by Bloomberg show. That’s about 0.5 percent below the record reached March 13. Hedge funds and other speculators increased bets on higher prices in the week ended March 27, raising their net-long position by 15 percent to 130,472 futures and options, Commodity Futures Trading Commission data show.

…“Markets seem to be assuming all is OK now, but any re- emergence of problems -- Iran, Europe, U.S. economic front -- would see gold higher again,” said Adrian Day, the president of Adrian Day Asset Management in Annapolis, Maryland.

Spot gold’s 100-day moving average dropped below the 200- day measure for the first time in three years last week, reinforcing a bearish trend, UBS said in a report yesterday. Its 14-day relative-strength index is at 39.3, with a level of 30 indicating to some analysts that a rebound may be due.

 Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “The market right now is more about confidence, but it’s too early to say there’s a recovery for sure.”

But Bayram Dincer is – in point of fact - very strongly implying that,  “there’s a recovery for sure” by the insidiously disingenuous wording of his comments.  

I do ask all of you to remember this prediction of Mr. Dincer’s and look back after the Sheeple have been COMPLETELY Sheered in the Greatest Crash since ’74 that is now ordained, by ALL things ‘Bernanked,’ right after the DOW climax is seen around 16,500 in very late 2013 to mid 2014.

The extension of our predictive time frames (out to very late 2013 to mid 2014 from our original prediction of early 2013 to late 2013) was made necessary by the TOTAL insanity of Bernanke’s promise to extend the ridiculously economy-wrecking, investment-skewing madness of the ZIRP (Zero Interest Rate Policy) until 2014!