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« 25.61% Profit in 8 Days: Our Subscribers Benefit From Stock Market Rally | Main | skoptionstrading Completes 100 Trades »
Saturday
Jun232012

Ministry of [Un]Truth

By Eric Sprott & David Baker

Speaking at a Brussels conference back in April 2011, Eurogroup President Jean Claude Juncker notably stated during a panel discussion that "when it becomes serious, you have to lie." He was referring to situations where the act of "pre-indicating" decisions on eurozone policy could fuel speculation that could harm the markets and undermine their policies' effectiveness.1 Everyone understands that the authorities sometimes lie in order to promote calm in the markets, but it was unexpected to hear such a high-level official actually admit to doing so. They're not supposed to admit that they lie. It is also somewhat disconcerting given the fact that virtually every economic event we have lived through since that time can very easily be described as "serious". Bank runs in Spain and Greece are indeed "serious", as is the weak economic data now emanating from Europe, the US and China. Should we assume that the authorities have been lying more frequently than usual over the past year?

When former Fed Chairman Alan Greenspan denied and down-played the US housing bubble back in 2004 and 2005, the market didn't realize how wrong he was until the bubble burst in 2007-2008. The same applies to the current Fed Chairman, Ben Bernanke, when he famously told US Congress in March of 2007 that "At this juncture… the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained."2 They weren't necessarily lying, per se, they just underestimated the seriousness of the problem. At this point in the crisis, however, we are hard pressed to believe anything uttered by a central planner or financial authority figure. How many times have we heard that the eurozone crisis has been solved? And how many times have we heard officials flat out lie while the roof is burning over their heads?

Back in March, following the successful €530 billion launch of LTRO II, European Central Bank President Mario Draghi assured Germany's Bild Newspaper that "The worst is over… the situation is stabilizing."3 The situation certainly did stabilize… for about a month. And then the bank runs started up again and sovereign bond yields spiked. Draghi has since treaded the awkward plank of promoting calm while slipping out enough bad news to ensure the eurocrats stay on their toes. As ING economist Carsten Brzeski aptly described at an ECB press conference in early June, "Listening to the ECB's macro-economic assessment was a bit like listening to whistles in the dark… It looks as if they are becoming increasingly worried, but do not want to show it."4 And the situation has now deteriorated to the point where Draghi can't possibly show it. Although Draghi does now warn of "serious downside risks" in the eurozone, he maintains that they are, in his words, "mostly to do with heightened uncertainty".5 Of course they are, Mario. Europe's issues are simply due to a vague feeling of unease felt among the EU populace. They have nothing to do with fact that the EU banking system is on the verge of collapsing in on itself.

When Prime Minister Mariano Rajoy assured the Spanish press that "There will be no rescue of the Spanish banking sector" on May 28th, the Spanish government announced a $125 billion bailout for its banks a mere two weeks later.6 This apparent deceit was not lost on the Spanish left, who were quick to dub him "Lying Rajoy". But Mr. Rajoy didn't seem phased in the least. As the Guardian writes, "Even when the outpouring of outrage forced Rajoy to call a hasty press conference the next day, he still refused to use the word "bailout" - or any other word for that matter - and referred mysteriously to "what happened on Saturday". He went as far as to say that Spain's emergency had been "resolved" ("thanks to my pressure", he said). He then took a plane to Poland to watch the national football team play ("the players deserve my presence")."7 Sound credible to you?

Please click here to read the whole article in full.

Regarding www.skoptionstrading.com. This week we closed a trade involving the S&P which generated a profit of 25.61% and was opened just 8 days ago, the charts and stats will be updated shortly.

Our annual performance figures are as follows:

2009 We made a profit of 23.89%

2010 We made a profit of 158.66%

2011 We made a profit of 40.95%

In 2011 we outperformed:

S&P by 42%

HUI by 53%

Gold by 31%

Silver by 41%

The 2011 Annual Report by be accessed via this link.

 

Our trading success rate is 90.81%

89 profitable trades out of 98.

Our model portfolio is up 447.55% since inception

Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

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Reader Comments (1)

Isnt this Euro Crisis just another attempt by the Central Gangsters to Implement Rule of Law by them? In order to establish their total control by a One World Goverment and to dictate policies?. Also hasnt it been there goal for them to chip everyone so that all Fiat currency will be abolished and all monies will be nothing but a computer algorithym within your hand. All this unlimited borrowing has been a form of trickery from the very beginning.Like baiting the trap with unlimited amounts of money. What do they get when no one can pay it back?. They will collect all of us as collateral and if you dont agree with their policies they will just simply turn off your chip and your ability to buy and sell will be eliminated. Believe me all that is happening is cloak and dagger stuff and a bit of magical misdirection. Please everyone be aware what the real intent is in all this. Make no mistake this Euro Crises is no accident and just happened because it happened. Like I have been commenttng for a long time the continuing Financial Crisis is a creature intended by design and there will be no end to it until all current Goverments relinquish all their governing power to them.

June 23, 2012 | Unregistered CommenterDoug Grant

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