Finances On DEFCON ONE Alert

By Graham Summers

Last week's moves were entirely based on the fact that stocks are now tracking the Euro almost tick for tick. And last week, the Euro hit "take off," despite the clear indications that Europe is facing systemic failure (the entire banking system is leveraged at Lehman-like levels and European sovereigns are facing failed bond auctions on a weekly basis).

I mentioned that last week could be a potential top. I still hold that view and would consider anywhere between today's levels and 1,250 (MAJOR resistance) to be a spot to lighten up on longs and establish shorts.

Indeed, deflation looks to be the dominate theme in the markets today. Gold is having trouble catching a bid.

Inflation hedges falling, Treasuries rallying... this is a deflationary backdrop. And it's occurring at a time when the EU is talking about launching a LEVERAGED version of the EFSF and the Fed has hinted at launching another version of QE 1???

Folks, something VERY bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.

Ignore stocks, they're ALWAYS the last to "get it." The credit markets are jamming up just like they did in 2008. The banking system is flashing all the same signals as well.

Comment:

Comrades, I'm no financial expert. If I was, I wouldn't be broke all the time. LOL It's true, Mr. Summers uses a lot of technical jargon in his articles, but he IS an expert. We may not always understand everything he says, but we get the gist of it. And to me, the gist doesn't sound good. I'm not sure what he means by our finances are on DEFCON ONE, but I know what that means when the military goes to DC1. That means attack or horrible disaster is imminent.

We all know how bad things have deteriorated in Europe. We're not as bad off, but we will be eventually.

Contrary to what many believe, China is in terrible shape as well. They've borrowed and leveraged themselves to the max, and with the world's economy going down the toilet, countries who owe them money (the U.S. isn't the only one) can't make their payments, and countries who they owe money to are calling in the loans and China may have to default, just like the U.S. will sooner or later.

When everything collapses, we have to be ready. I don't just mean ready to take care of our families, although that is top priority with everyone. What I mean is people will be lost, frightened, and looking for a direction - ANY direction. We must be ready to direct them to National Socialism.

Even after the collapse, keep handing out literature. Keep talking to people and recruiting. Keep your outreach efforts on the internet going (assuming that is the internet doesn't go down as well).

In other words, when the worst happens, let's not be a bunch of "We told you so's". That's being negative. Let's be positive. We must point our Folk to a better way, rather than let them try and rebuild the system that caused this mess in the first place.

Dan 88!