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Sunday, June 8, 2014

Corruption, Gold, Bitcoin, and Beyond

I ran across a summary of recent massive corruption in the US financial system of preferred treatment. I actually have Zero against the rich or influential, I have a problem with the law not being applied evenly. Not because its immoral, but because a system without law, is a system that is bound to fail, as history has shown many times over.

 As I write this, gold MAY have bottomed last week, and Gary of Smart Money Tracker is thinking it has. I did buy some options last week for a GDX bounce, but time will tell. If gold rises, miners should follow. Bitcoin has exploded from about $50 a coin when I bought in a couple of weeks ago to 650 a coin. I should have put ever nickel into bit coin, but its hard to pull that trigger.

The market on the other hand is the gift that keeps on going. I wrote back in 2010 that the market may instead break up instead of down in the next crisis. What I meant by that is if corruption is so great, there is no reason for markets to ever go down. If there is no accounting, no law, no one to judge negatively, then the next market failure maybe the dow 10 times higher than now. In that scenario, being outside of USD is best.

Even though the markets are at all-time highs, there is something very disturbing. Banks are back giving loans to anyone and everyone. the problem with this is once you are willing to give loans to people who cannot pay them back, whats the next level of 'loose' money to get the next leg up? I guess banks could start giving $1,000 bucks for every $10K you deposit, or some other insanity. And that's what we have ahead, either a 2007 correction, or we must be much more reckless than now.

 Either way, the outcome will not be pleasant, 2014 is really shaping up to be the decision for the next 4 years. Good luck!

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