Curried Wealth Building
Finding an Edge

If you want help with your finances, give me a call at 703-791-3243.
October 22, 2008
Issue 16  -  Money Spigots on Full Blast

The final battle has begun. The latest numbers coming out of the Fed and Treasury show a huge acceleration towards hyperinflation. The M-1 money supply number is up over 3.8% in the last 4 weeks which, if continued over a whole year would be over 40% annual inflation. The 13 week total equates to 16% annual inflation. We have a great deal of price inflation that is "baked into the cake" and will be seen in the future. Inflation is something that builds slowly and then it just accelerates.

A good way to predict the future performance of stocks is to look at shipping containers coming into the USA and out of China. Reports are showing a sea of empty boats waiting to fill up but not having any thing to pick up. The Port of Portland shows incoming containers down over 13% from last year while the Long Beach Port is down over 15%. This does not bode well for a strong Christmas season or consumer stock profits. While it is true that the stock market is down an amount that in the past has proved to be a good buying opportunity, there was one exception: the great depression.

During the depression, stocks sunk to 10% of their peak values. That was a 90% loss! I'm not saying that this is a repeat of that time, but with the quadrillion dollars of derivatives floating around, it pays to be a little cautious. If you feel compelled to buy stocks, I would ease my way in at 5% month. That way you can take advantage of a rally and if it continues lower as I expect, you will be buying all the way down. That, by the way, is the definition of dollar cost averaging.  As I wrote previously, the bailout bill was nothing about the average citizen.  It was ALL about the banks and elite.  Now the proof is starting to come in: (as if the stock market crashing rihgt after it's passage wasn't enough) 

"Wall Street banks in $70bn staff pay-out

Pay and bonus deals equivalent to 10% of US government bail-out package
By Simon Bowers
Saturday October 18 2008

Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.

Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed."

The unmitigated gall of these guys is beyond belief. They have no shame and the game goes on and on. Until the public stands up and says enough, this fleecing of America will continue unabated. How can they look themselves in the mirror? The answer is they laugh in the mirror as the sheeple go about their daily routine of watching 6 hours of the peoples opiate. I fear that one day, and it may not be as far a way as one might think, there will be an uprising of sorts that will get the attention of Washington. I urge everyone reading this to vote for either a third party, which I will do, or the nonincumbent. These guys just don't care. Why should they? The get reelected at a rate of over 90%. Until someone sends them a message there is no chance for change.

Gold is still scarce and silver is worse. Try to secure the physical metal this week. The Central banks are calling in their leases and that means the tide may be turning as the borrowers will have to try and buy back their gold which should drive the price up. There are rumors of a default on the Comex (gold and silver markets) and that could be why the price is so low as people are scared to buy contracts because they may not be able to get the real product. Get yours now while there is still a chance. I expect that gold will not be available at all in the next two years. Those who have it will be rewarded. Email me at currymagic@gmail.com if you have questions.