Michael Voris has hit the nail on the head and has come up with a question of extreme simplicity that will allow anyone to instantly discern the orthodoxy of any clergy, religious or layperson. The question is:
“Do you desire that everyone in the world be Catholic? Yes or no.”
If the answer you get is anything other than an instantaneous, emphatic, and unqualified YES, then there is a massive, massive problem and all future dealings with that person should be addressed and parsed with the full knowledge that the person is NOT properly catechized at best, or a heretic or apostate at worst.
No matter who it is.
NO. MATTER. WHO. IT. IS.
I would encourage one and all to start asking this question. Frequently.
First, a repost of a piece I wrote months ago on cash markets decoupling from the futures and derivatives markets, specifically in the context of metals. I have not changed anything, but I have bolded the key, key points.
For all of you Bitcoin fans, you are now realizing the massive flaw in the Bitcoin paradigm. You have no cash commodity to arbitrage. All you were ever dealing with was zeroes and ones on computer servers. I am hard-pressed to think of ANYTHING more vulnerable.
As I have been saying all along, if you can’t stand in front of it with an assault weapon and physically defend it, then it isn’t yours, and probably never was.
(Ahem. Cough. 401ks. Cough.)
Originally penned and posted on December 15, AD 2011, seven weeks after MF Global.
3. Finally, a very simplistic explanation of how the cash commodity markets are soon going to decouple from the futures markets. This is a little complex, but stay with me. I think this is important to understand because none of us who have lived our whole lives in the U.S. have ever seen a market disintegrate.
The threat (or promise) of delivery upon expiration is what keeps the futures markets tethered to the cash markets. Up until now, if an unreasonably wide spread between the futures price and the underlying physical commodity market got too out of whack, a process called arbitrage would kick in. Arbitrage is when a party simultaneously buys and sells on two separate but related markets in order to capture an inefficient spread between those two markets.
Im going to use precious metals as my example commodity because there are alot of metals guys reading this, and because the metals markets will be the big tell in term of when decoupling and thus total futures market disintegration is upon us. But these examples apply to all of the physical commodities.
Lets say that the physical silver market is trading far lower than the silver futures price. This is what is called a WEAK BASIS. The BASIS is the relationship between the cash market and the futures market and is very simply defined as (CASH minus FUTURES). If cash silver can be bought at $25.00 per ounce and the futures are at $30.00 per ounce, the cash is $5.00 under the futures. When cash is under the futures, this is called a WEAK basis.
Up until now, what would a metals trader do? In very simple terms, he would buy the cash silver at $25.00 per ounce and then simultaneously sell the futures at $30.00. Because he has short-sold the futures, he could hold the contract to expiry and then deliver the $25.00 cash silver he bought to make good on the contract and receive his $30.00 price. So his simple net profit would be $5.00 per ounce. As many traders saw this spread and simultaneously executed this same strategy of buying the cash and selling the futures, what effect would this have? Right. It would cause the cash-futures spread to move back in toward convergence by pushing the futures price down (lots of sellers) and propping the cash market up (lots of buyers).
Now the opposite scenario: a STRONG basis. Lets say cash silver is trading at $32.00 and the futures are trading at $28.00. A trader might take physical silver that he has in inventory and sell it in the cash market, and then immediately take those proceeds and buy back and equal number of ounces in the futures market and take delivery. Since the same number of ounces in the futures market cost $4.00 per ounce LESS, he would end up with the same number of ounces in his inventory PLUS $4.00 per ounce in CASH in his pocket. If he and many other traders saw this condition and they all sold cash silver and bought the futures, this would, again, converge the spread between the cash market and the futures market.
The lynchpin that is holding this dynamic together and keeping the futures markets tied to the underlying cash market is the fact that the futures contracts are deliverable, and a trader can either deliver or take delivery of actual physical silver via his futures position.
Are we seeing a problem yet? The futures markets have lost their viability and trustworthiness because of the MF collapse and theft. At some point in the not-too-distant future, people everywhere are going to realize that the delivery mechanism is not reliable. Heck, just holding cash and/or positions in a futures account is no longer reliable. The the market itself is not reliable, traders will no longer attempt to arbitrage these basis spreads because the risk to the trader that the rug will be pulled out from underneath them is simply too great.
And in the metals markets, the delivery process itself is . . . um . . . shall we say, easily corrupted? When you take delivery of physical metals, it doesnt get sent to your house. All you get is a certificate saying that X number of ounces are being held in a certified vault somewhere with your name on them. After the MF collapse, that sounds like a joke, right? A CERTIFICATE with my NAME ON IT? Yeah. That really is how it works.
When the arbitrageurs finally lose all confidence in the markets, the cash market will decouple from the futures because no one will be willing to take the risk of having their money, positions and/or physical metals stolen/confiscated. If no arbitrageurs are willing to trade these spreads no matter how wide they may become and thus there is no force causing the cash and futures to converge, we will see the basis spreads become extremely wide. As people flee the futures markets, the futures prices will drop, while the cash markets hold steady or even diverge and actually rise as all of the former paper players realize that physicals are the only remaining game to be played.
Watch for this. Watch for the gold and silver futures to sell off as people walk away from paper while the online cash dealers, seeing that market demand for their physical inventory is robust, begin to ignore the futures prices and hold their prices steady or even raise them. When you see this basis decoupling and absence of arbitrage, lo, the end is nigh. A parabolic spike is coming.
Next, people are asking why I’m not saying much about Cyprus and all of that.
Um, because I already did. Back in November of 2012. I made a 2.5 hour economics presentation that “called” and explained exactly what has and is happening in Cyprus, Europe, and eventually here. And, big props to Karl Denninger and Warren Pollock who were all over these ideas before I was. Warren, in particular, was warning of bank holidays and “bail-ins” two years ago.
Part 3 beginning at the 6:00 mark is where I discuss the sweeping confiscations of bank deposits.
I explain repos and CDS in the context of MF Global, but you can just substitute “Cyprus” for MF Global and it is the exact same thing. Cyprus was basically forced by the Troika (European Commission, European Central Bank, International Monetary Fund) to lever up on Greek junk bonds. The Troika, through various “regulatory” arms were “fake auditing” the Cypriot banks (just as MF Global was being “fake audited” by the Commodity Futures Trading Commission and the Chicago Mercantile exchange) and were valuing the worthless Greek bonds as having essentially full, “par” value. Then, when the Troika wanted to collapse the Cypriot banking industry and begin the process of seizing customer deposits, they did an about face and declared that the Greek paper that the Cypriot banks were holding – at the urging of and enabled by the Troika all along, remember – was worthless. Acknowledging this reality and marking the Cypriot banks’ balance sheets to REALITY is what instantly collapsed the Cypriot banks. So, just making sure you understand, the Troika forced and enabled the Cypriot banks to load up on junk, and then when the Troika olgarchs, led by Obama Chicago crony Christine Legarde, wanted Cyprus dead and the accounts swept, they just dropped the sword of damocles. And, of course, we now know that the Russians and the Continental “elites” were given weeks of warning, and slithered out of the Cypriot banks, mostly via London. It’s basically the mom-and-pop accounts that lost their funds in Cyprus – again, just like MF Global.
Guys, exactly the same condition exists in the U.S. banking system. If the U.S. banks were suddenly forced to mark their mortgages and credit cards to REALITY, and not full par, peak-of-the-bubble values, the entire U.S. banking system would instantly implode. And that doesn’t even take into consideration the hundreds of TRILLIONS of dollars in derivatives on European junk bonds that all of the U.S. banks are holding, too. I lay all of that out in lurid, lurid detail.
1. One sure way to know that you’re on the right track is when the demons start attacking. For me, this is manifested mostly in my email box, which is a quite mild vector as those things go. But, you can always tell when the demoniacs are out and about. Today’s example was extremely easy to spot, what with all of the satanic jargon and slogans, and the truly uncreative use of the “c” word. Before deleting it though, my eye happened to fall upon one line near the top that went something like this:
“What are you going to do? Pray to Baby J? LOL.”
What an absolutely SPLENDID idea. Thank you.
I am happy to announce that the whole “estate liquidation” endeavor has now been consecrated to the Infant Jesus of Prague. Yay!
Long story short, Our Lord has seen fit to manifest Himself in ways particularly attached to a statue of Himself as an infant which resides in Prague. He wants us to love Him in every possible way, including as an infant. Why? Because babies are totally helpless and that helplessness reminds us of and points us to the Eucharist, wherein Our Lord is likewise totally helpless as He comes to us under the appearance of bread and wine. A Host, like the Baby Jesus (because a Host IS the Baby Jesus, remember), must be handled with exceeding tenderness and care, and can be dropped or otherwise mishandled at any time. And yet, despite this, God Almighty, for Whom all of creation is like less than a drop in the ocean to us, became incarnate and was a Baby, and comes to us on the altar, totally helpless and physically dependent in the Eucharist every day.
So, there’s that, and then there’s also the snuggling part. Baby Jesus just loves to snuggle. When we receive Him in the Eucharist, we are truly snuggling with God, as He settles right under our hearts and stays there for fifteen minutes or so. Show me a person who receives Holy Communion and the runs out the door and I’ll show you someone who hasn’t a CLUE what is going on, and probably has never heard word one about the Real Presence.
Thus, the statue of the Infant Jesus of Prague reminds people of the Baby Jesus (Who can easily be forgotten outside of Christmastime), and when people specifically call upon Our Lord in this way, miracles and extreme blessings tend to rain down. In fact, the Infant Jesus of Prague devotion is known to “keep us from all want”.
I have said this before and I’ll say it again. Satan and his minions are IMPOTENT. They can also be surprisingly obtuse, especially considering their angelic nature.
Okay, I don’t think anyone really “got” what I was getting at with my whole Ebay estate sale idea, but we’ll give this a shot. Item number one has been listed. It is a wooden spoon, direct from my kitchen drawer. If this goes well, then dude, I have a whole drawer-full of wooden spoons. I don’t want to get anyone overly excited here, but I will just say that I have a wooden SPORK, too. If the spoons sell well, then we can move into the whisks, the spatulas, and even into the tongs if things get really lively.
This auction is three days long, ending on April 15th at 1919:58 PDT and will determine if I bother to list any more items or not. Like I said, we’ll just see how this goes. Thank you in advance for your kind consideration.
Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And FORGIVE US OUR TRESPASSES, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.
1. Another internet access outage coupled with glorying in Holy Week and now the Octave of Easter has kept me away. Here is my Easter gift to one and all, Bortniansky’s Cherubic Hymn Number Seven. It is in Slavonic (the language of the Eastern Church), but this YouTube has the English translation subtitles. Be careful. You may just put this on perpetual repeat loop and lie on the sofa in a beauty-induced, tear-streaked coma for the next several hours.
Come, let us cast off all earthly care and forget every vain employ. For the King of All comes in triumph by unseen hosts of angels to us that bid Him welcome. Alleluia, Alleluia, Alleluia.
2. My Psalm 68 citation is correct. Protestant Bibles *and some modern Catholic Bibles that are trying to be protestant) mis-number the Psalms. The Church, both in the West and the East, uses the Septuagint-Vulgate numbering. It is Psalm 68.
3. Regarding the Spectral Doughnut, a clever reader suggested that I point out that the conceptual image would be better if I pointed out that in life the Spectral Doughnut is not sitting flat, as a doughnut on a table, but rather is standing vertically on end. Thus when we move toward Truth, we are traversing UP, ascending to the top of the doughnut, and when we move away from God, either by the “right” surface or the “left” surface, we are moving DOWN, converging at the lowest point, which is hell. Excellent.
4. I have peacefully decided to let my office/home property go, and my eviction date is set in a little over a month. I could have contested the whole thing as the chain of custody of the mortgage is textbook fraud, but I want to move on and be rid of all property, and guys, I gotta tell you, since making the final decision I feel FANTASTIC. The fruit of the Third Joyful Mystery (the birth of Our Lord) is poverty, and it is indeed a joyful, joyful fruit.
I cannot bring myself to solicit funds, but I have had an idea. I obviously need to get rid of a lot of stuff. Most of my remaining property I will donate and/or give away, but I could put some small, random, easily shippable items on Ebay. I’m thinking small kitchen wares and stuff like that. Ebay is an auction, and thus I would have no control over the sale prices. The “market” would determine that. I’m still agonizing over this, but if you think that an “estate sale” is either a good or terrible idea, I would be interested to hear.