[More than the torrent of fundamentally worthless money the central bank has pumped into our financial system, it is lies and delusions that have so far sustained prosperity’s dying gasp.  In the guest commentary below, Wayne Razzi argues that there are worse things to fear than economic collapse itself – namely, the loss of basic rights and freedoms as hard times causes politicians to seek radical solutions.  Will the sovereign individual be able to resist such an encroachment?  It is probably not too early to start pondering the question, for reasons that Wayne makes clear. RA]

My last predictions here could loosely be summarized as follows: “Why what should happen probably won’t because they’ll do whatever it takes to achieve their outcomes…” The recently replay of the 1980 Silver Heist, with its curiously-timed margin hikes, reinforces the suspicion that Their playbook hasn’t changed in the interim.  I reference it only because it appears that the powers that be are about to enter another phase during which they’ll need to work their old plays aggressively. As I survey the sphere, I see something resembling reality attempting to intrude upon the farcically engineered state of stock-market utopia that’s been presented for our consumption by the ever-reliable mainstream media (MSM).  I feel embarrassed to write this, but is it still possible that a correction could be allowed to occur?  It certainly seems overdue. Dig around a little and you’ll find that the GDP is closer to 0.5%  – and likely on its way to below zero in real terms if you strip out all of the government life-support contributions and tune out the illusions.

Normally I’d be able to continue writing about how we could see things begin to falter — the obligatory chain-reaction that would cause over-levered (i.e., weak hands) to panic much as they were forced to do in 2008. However, quite honestly, I can no longer enthusiastically offer economic and market prognostications as I once did.  Doing so seems as pointless as the staged events and staged reforms that will surely follow.  The reason?  Dark clouds.  These are what preoccupy me almost exclusively, for they figuratively represent one of the most important questions of these times. A quote from the French economist Frederic Bastiat is appropriate here: “When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.”  And to amplify the thought, here’s another from John Madden, coach of the Oakland Raiders at the time:  “Everybody says the Raiders cheat. OK, we cheat. So, what are you going to do about it?”

We at Rick’s Picks, and at several other forums and alternative-media sites, know They cheat.  We also know, in many cases, how egregiously They cheat. So, what are we going to do about it?  All of us should now know that we wake up every day, consumers of a fraud slickly packaged by the MSM.  And yet, I’d bet that many of Rick’s readers have successfully spread their alternative, reality-based take on the economy to friends, family and co-workers.  Economist Paul Craig Roberts, on the other hand, quit attempting to bring the truth to light after decades of failed efforts that he ultimately described as futile.  He said the American public was not able to believe their own eyes, ears and minds.

Patriot Act

So where does that leave us?  At the moment, we are prisoners laboring in futility. Hyperbole?  Not at all. As many of you who have posted to the forum seem to understand, The Powers That Be could change the rules at any time, altering property rights and basic freedoms as they are wont to do – and which they will soon find themselves needing to do radically.  Check out the new and improved Patriot Act to get a sense of where things are headed.

As most of Rick’s readers are aware, Bastiat wasn’t remarking on something new.  Exploitation of humans by other humans has a much longer history than a mere few centuries.  Under the circumstances, and despite what many believe, the off-the-grid solution, although highly attractive in some ways, remains vulnerable if not executed in conjunction with many like-minded neighbors.  And even in that case, it remains far from a sure thing.  This effectively forces an unavoidable confrontation between those who cherish true liberty and those who are willing deploy coercion in its many forms to restrict liberties.

Nearly 20 years ago, I’d joke with fellow traders on the options floor that, armed with Technical Analysis and a thorough knowledge of the game, I’d soon grab the market by its heels, invert it, and shake the money out of its pockets.  I overworked the visual, but it still brought a cheap laugh every time I said it.  At the time, I would never have envisioned that there would be some “They” endlessly shaking us all down as a matter of routine. But here we are.  And although what we face is nothing new under the sun, it might be the most important question of these times: “So, what are you going to do about it?” 

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts.  Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2011, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Friday, 3 June 2011 | Digg This Article