us gdp accelerates above 7%, page-2

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    so after all of that we have a falling US$(trend) which is at crictical support on the $ index we have the DOW with a p/e of 22 & a yield of 2.16% (bigcharts)

    and this


    Thursday, October 30, 2003

    Two Economic Story Lines

    Author: Warren Pollock





    The Dow Jones Industrial Average tells the story that most Americans want to believe. Vested forces are fighting with every tool in the book all their might to convince people that everything will be all right and that they are secure in the status quo. Current events suggest that the nation, and the world, reside not in a state of consistency and stability but within a period of flux and transition. Therefore, the majority of people are placing their faith in a plot line twist rather than the conclusion of an economic chapter in history.



    Systems that work properly are able to build wealth that exceeds the friction of the flaws that are ever present in an economy. An economic story ends and a new one begins when the flaws overwhelm the system. “Structural Imbalances,” which are followed by an adjustment create the conditions for the next economic story to evolve.

    Almost no set of circumstances, except perhaps a true technological and social revolution, will create the conditions where the structural imbalances or flaws of the US economy will be offset without an adjustment.

    Thus in contrast to the majority, master financiers like Warren Buffet, John Templeton, George Soros, and Saudi Prince Alwaleed know how this chapter ends and they are planning for it by being positioned away from USD denominated assets. As a minority, these individuals are consistently correct in that they have built through their knowledge the bank accounts to prove their confidence. We are fortunate that we too can be fast followers by listening to information that leaks out into he public domain and by timing the rotation of our funds away from the majority perspective towards safe harbor, capital preservation, and profit.

    Each of these master investors know that by being slightly in front of the majority they are going to take advantage of the momentum of people rushing in to follow them. They have deep pockets, and they can back up their convictions with considerable staying power, thus they don’t need to be as exact as we do in terms of timing. Additionally, these people have more opportunities because they are not locked into the structure of captive savings and brokerage accounts. These people think internationally and they have the contacts and legal staff to structure their finances to address a myriad of complexities and considerations. However, we can still make use of the tidbits of information that leak out.

    Although some of the people I mentioned are secretive a few of them realize the social implications of this pending adjustment thus they have provided us with valuable information. Some of these financial leaders want people to succeed with them because they don’t want become targets through their own success.

    Based on the information currently available, where possible, these people are moving their fortunes to non-US currencies and precious metals. Perhaps they will eventually move from paper-currencies to harder assets such as gold, mines, and other stores of value.

    Money preserved will eventually be rotated back to paper assets but at incredible discounts thus these people will concentrate even more wealth. Indications exist that even at this early stage some of these masters of finance are positioning to buy the ownership interests in companies through the purchase of speculative debt. These titans are going to preserve wealth away from the USD and the US markets and eventually they will buy back into the system for pennies on the dollar.

    With all this information available, why then would people place their faith and savings into a fictional plot twist of economic uncertainty?




 
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