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MF Global went down in October and the government
which can sniff out weapons of mass destruction thousands of kilometres away in enemy territory, still cannot figure
out what happened to $1.2 billion in its own back yard. These outcomes are
perfectly understandable when one is not searching for the truth.
But without being callous to the predicament of
investors in MF Global, does it really matter what happened to the money?
In my view it matters not one iota given that the
USA experiences the equivalent of three MF Global events each and every day
of the year with a Federal deficit of $1.3 trillion in 2011. And three MF Globals per day is just the start given the additional
issues with State and local finances, poorly performing pension plans,
educational debt, the mortgage woes of borrowers and the despair of the
unemployed.
According to one source, MF Global had 50,000 active
commodities accounts and 400 securities accounts. The average loss against
these accounts is $23,809 per customer and to date a number of class
actions have been initiated.
As a comparison, since the onset of the GFC, the
deficits from 2007 through to and including an estimate for 2013, will be
somewhere in the vicinity of $7.5 trillion dollars or $24,350 per US
citizen.
Will anyone be initiating a class action on behalf
of the US people against the government for those "missing funds"?
Highly unlikely, and if anyone tells you that elections are the opportunity
to change things then they should be quoted the words of the anarchist who
said that.... IF VOTING CHANGED ANYTHING, THEY'D MAKE IT ILLEGAL.
If it appears that I am singling out the USA, then
rest assured it is only because it is the largest transgressor in a world
full of similar transgressors all the way from the statistically
insignificant Greece to the 500 pound gorilla in Japan.
Once we add all the MF Globals
of this world, we soon see that we are no longer kicking the can down the
road but up a very steep hill. At some point that can will
become so large and heavy that it will roll back down the hill and crush everyone of us.
The Social Security Trust Fund is just a cruel hoax.
The government is no more a trustee of workers' entitlements than a pedophile
can be a guardian of a child. Future waves of retirees will be betrayed and
made paupers.
In the meantime people everywhere struggle for
survival and those that can sleep easy "are either well prepared
or ignorant".
The well prepared are paying down debt and hoarding
precious metals because these cannot be contaminated by a insolvent system that is interlinked to the nth
degree.
As others have pointed out, we have merely borrowed
our standard of living to date. Rest assured we will pay dearly but not with
dollars or yen or yuan (a.k.a. as renminbi). We will pay dearly with suffering, wars,
anxiety, uncertainty and a diminished standard of living for perhaps the rest
of human history unless we redefine economic growth and adopt non-destructive
and non-confrontational means of dispute resolution.
The USA has a historical and moral imperative to
recoup lost time and opportunities because despite all else, it is still the
best suited and best equipped nation for creating a new paradigm of influence
through confluence. To do this it must first re-think the current processes
by which wealth is created, distributed and destroyed at all levels, whether
they be government, business or individuals and
whether it be at home or abroad.
We live in a world where quantity (debt and paper
assets) is ranked above quality and look where that has put us. To the
contrary neither gold or silver are about quantity.
They are about quality and their performance always has and always will prove
that point when governments and banks do insane things.
Only the younger generations are more valuable than
gold and silver, because in their absence or in the absence of their ability
to find well paid jobs with which to underwrite
functional and solvent households, the wealth of this world will count for
little when old age is upon us.
The demographic freight train headed our way will
not be averted by QE, currency swaps and bombing Iran off the map. The older
members of the world are starting to seriously outpace the younger members
and this carries distressing levels of pension and medical liabilities.
Europe in this regard is the time bomb with the shortest fuse.
And this is where precious metals and young people
are the two sides of the same coin which is called functional civilization.
Both are denied their rightful place. Both have been ignored. The young are
beaten by police batons and precious metals shorted by manipulators. The
young have had their jobs exported and the job that precious metals once
performed has been given to cheap impostors called fiat currencies.
Laws can be drafted and enacted overnight. Bombs can
be dropped and missiles launched at the touch of a button. However, the
consequences of crumbling societies and war require decades to reverse and neither
time nor current "attitudes" are on our side.
MF Global and the damage it did came to an end but
the three MF Globals per day committed by the
Federal Government will continue until people either wake up or their belly
becomes empty.
It is time to give young people jobs and in turn
they will buy houses, have children and feed the future. Any other scheme is
a scam, any other angle is an abyss, any other deal
is a delusion. Likewise, measurements and comparisons by numbers and
movements in stock markets are almost meaningless unless gold is the common
denominator and the reference point.
How many MF Globals do we
need to cop on the chin before we stop turning the other cheek? How many MF Globals can the system take?
Let's pray that in 2012 leaders, losers and winners
find a different way. Until then......
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