Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year

The Business Insider ^ | 5-18-2010 | Joe Weisenthal

[blam]

Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year

Joe Weisenthal
May. 18, 2010, 8:57 AM

Image: US Army

WHOA!

Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note:

Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him.

That's pretty intense!

Update: By popular demand, here's more on what he sees in the market:

And I ask myself, "Am I seeing things? The April 26 high for the Dow was 11205.03. The Dow is selling as write at 10557 down 648 points from its April high. If business is even better than expected, then why is the Dow down over 600 points? And why, if there were 674 new highs on the NYSE on April 26, were there only 20 new highs on Friday, May 14? And if my PTI was 6133 on April 26, why is it down 17 points since its April high?

The fact is that I've been seeing deterioration in the stock market ever since early-April, and this in the face of improving business news. The D-J Industrial Average is composed of 30 internationally known top-quality blue-chip stocks. These are 30 of "America's biggest companies." If Barron's is so bullish on the future of America's

[snip]

The DJIA is up 62 as I post. See here.

[blam]

Suddenly, Everyone's In the CRASH Camp, Not Just The Bear Camp

[Gandalf_The_Gray]

Money is a liquid asset. Where do you sell your money?

Buy silver/gold bullion and pre 1964 silver coins (90% silver). Do NOT store it in a bank's "safe deposit" vault. I could offer some suggestions but that would be telling.

Convert IRA/401K/403B funds into specie (silver/gold) backed plans. If TSHTF, paper (stocks/bonds/dollars) will be worthless. Stock up on long term storage food and ammo for your personal battery, if you don't own guns yet buy a rifle, shotgun and pistol while there is still time. Items like this can always be used as trade goods. Buy extra clothing as if you were preparing for an extended camping trip.

Regards,
GtG

[omega4179]

buy dog. its a dow short thingy.

[April Lexington]

End of the year! Hell! I don’t recognize it now!

[April Lexington]

ping

[Hoosier-Daddy]

Not in AZ. Not in any Trust Theory State most likely.

[hiredhand]

The entire object is to prevent it from happening. That's why people who know better are patient and in no hurry to start shooting. Some have a better idea of how it would digress and would really, really rather avoid it.

I've tried to warn people of something before though and they seem to simply not hear me. Maybe it's that they don't want to outwardly acknowledge something they know is so terrible that they have trouble even thinking about it. Maybe they simply aren't capable of imagining it in their minds. But what I'm talking about is that when a certain large portion of middle America decide to change gears, and go the way of the "Sons of Liberty", they'll do so with total commitment to destruction and violence for the purpose of restoration afterwards. They'll have nothing left to lose and these are the most dangerous types of people to fight. NOBODY looks forward to fighting people with nothing to lose. They're only a little less fearful than fighting people who aren't afraid to die. They fight like nobody else! People just don't seem to understand what this means. But the types that I'm aware of aren't going to enter into something with any intention of turning around. They'll go into it with the goal of winning, or dying in the process...one or the other. Eventually, at some point in the process, they'll use tactics such as those used in Afghanistan and Iraq because they actually DO cause our leadership to back down. Eventually, they'll use them here on our soil. There are plenty of bridges to blow, and 24" culverts in which to install IEDs. I'm certainly NOT suggesting that anybody do such a terrible thing, but eventually it will be done. If somebody like myself can see the purist logic in it (moral issues aside), then certainly somebody else will as well. I'm not that unique! Our infrastructure is fragile! The choice destruction of just a few bridges could cause a major food shortage over vast amounts of real estate for days, perhaps even weeks or months. What are the authorities going to do at that point?... babysit all the bridges? They'll be in the same mode that they're in with Iraq, Afghanistan and a few other lesser known places. If they follow their own established patterns, they'll back down, draw a line, move behind it, and then declare victory... of sorts. But this will result in something which many have predicted for years; the break-up of The United States of America into more than one contiguous chunk on the North American continent. The losing side will be left vastly worse off than before. People don't remember that the South was economically depressed well into the late 1950s on account of the American Civil War. Too many in the south do however remember that in spite of their best efforts to stay uninvolved, they had houses burned, family executed, livestock killed, and lives ruined. There's a general "dangerous" mentality in the south and it's been increasing as political hostilities in D.C. increase. But I'm not the only one who observes this and it's fairly common knowledge in many social and political circles in the south.

Too many people have given me their version of how civil conflict would unfold on our soil and they always seem to forget elements of war such as kidnappings, beatings, extortion, torture, poisoning water systems, burning houses at 0200, or barns, or vehicles...with people in them. Imagine it being DANGEROUS to have a political bumper sticker on your vehicle, or in your yard. Imagine the climate whereby it would be dangerous to discuss politics at work, or in public. Imagine "hits" on political targets. We enjoy such a level of peace right now that our politicians live in "relative" safety. Few of them have even the likes of a full Secret Service contingent. How do you suppose it will go over the first time one gets his/her brains blown out from a distance while going out to get in the car in the morning? ...probably not very well. If people think that the above won't happen, let them not forget that the underpowered side will have to finance it somehow! War is all encompassing...enveloping, and it's truly terrible. But these people I'm talking about will pursue it with great energy and commitment if pushed passed a certain point. They're what we call "if-then" type people. They're very predictable! Everybody knows at least a few. IF you do something to them, you know they will DO something in reaction. They'll usually do the same thing in reaction, every time if possible, without fail. They're the same people who ALWAYS shoot (and kill if possible) home intruders, carjackers and assailants. The MSM doesn't report much on these types for obvious reasons. They aren't good for politics. They network with others around them. They have a plan (even if it's a small plan). They trust nobody except a very few people, and they don't talk much. They're inside of the military, law enforcement, government at all levels. They could be your neighbors, or sit across from you at church. They know who they are, and they know who the others are. Lately, they've been pondering....weighing the expense of breaking the law to restore the Republic. But they love peace, and so they're willing to suffer a great deal and wait to see if our national takeover can be averted through our (semi) democratic voting process. But their next step will be violent, bloody, and widespread. They'll stress local law enforcement and federal law enforcement to breaking point, and probably drag the military into action here on our own soil eventually as well. I've heard people joke about Blue Helmets on our soil. I don't think there's much to joke about.

Personally, I believe what a certain Freeper said about the above scenario. He said that it would be Bosnia x 10. We would suffer to the same degree as if it were a genocidal war, but it would be entirely because of differing political philosophies...to state it simply. That wouldn't change the awfulness of it though.

This is why I hope and pray that those in power stop eroding the foundation of our nation. Every brick they knock out of the foundation takes us closer to that point at which the ordinarily quiet and peaceful "if-then" people are pushed past their breaking point...that point at which they feel they nothing left to lose...and when this happens there will be no turning back. This nation will never, ever be the same after that if it happens.

[Star Traveler]

You were saying ...

This nation will never, ever be the same after that if it happens.

I think you're talking about an armed "revolution" -- as opposed to -- a total outright collapse of the entire civil infrastructure and governing capability and sustaining power of this country. Those would be two different things, and I think they would be handled in different ways.

But, either way, I believe you're right... this nation would never be the same afterwards, because basically there would be no more nation, and it would never come together again.

Either one of those scenarios (the armed revolution or the societal collapse) would mean the end to the Constitution and the end to any kind of reasonable and good standard of living and the end to most all amenities that people normally enjoy today, no matter how poor they are. It's the end of it all... no matter how it turns out...

It's definitely not what one should be aiming for ...

[hiredhand]

I read a few days ago that it was a misconception to believe that having a goodly supply of weapons and ammo would stop the hoards from overtaking you. It went on to say that eventually, they would overtake you. But this definitely doesn't line up with things such as what you've mentioned regarding the LA riots. Ditto for the aftermath of Katrina down in NOLA. The hoards are teachable by force if anything. Once they learn that it's a life threatening ordeal to go into certain areas, they tend to AVOID those areas and others like them. Also, historically they spread the word to others to avoid those areas! They DON'T regroup and form a strategy on overtaking the defended areas. They just stay away and move to those areas which aren't defended. There are too many of those, so why mess with the ones that are defended? They might be mean, violent, and murderous, but they're not stupid or suicidal. :-)

I would say that it is indeed beneficial to have a large store of weapons and ammunition, as well as a network of people who can put them to good use for a common defense. Historically, they should do very well against the hoards.

[shield]

bfl

[this is my country]

Karl Denninger is warning as well:

http://www.freerepublic.com/focus/f-bloggers/2513956/posts

That terrified me. I live in a big city, don't have a gun and would have a hard time getting out.

[hiredhand]

Actually, even though I didn't express it very well... I think it's entirely possible that we suffer a financial collapse followed by an armed insurrection. I say this because too many people are learning that the Gov't orchestrated the collapse. They were complicit. Yet, they profited handsomely by it. Then, instead of actually doing something that would make it BETTER, they told us that they would fix it. But when we overwhelmingly told them "NO", they took our money anyway and did the very thing we knew would wreck the nation financially. Too many people are aware of this now, and more are learning the facts behind it.

Also think about this... the pattern of this administration fixing things always drives those "if-then" people into the other direction. It's as if our current leadership has some innate ability to make exactly the wrong decision in a way that maximizes damage.

When this nation falls, people who lose everything will be a majority, and they'll be looking for blood. I believe a financial collapse (which we are witnessing NOW) and armed civil conflict are intertwined and quite possibly unavoidable at this point. The only hope is what we're just beginning to see unravel, which is the replacement of poor leaders in office with good ones. If this fails, the future situation will be bleak indeed.

I personally don't have a lot of high hopes for the situation as it stands, in spite of conservative hopefulls and the encouraging news in the run-up to the November elections. The left has an established pattern of fighting over hanging chads, dimples, and dents for months, or counting and recounting...dragging the vote through the courts...until they finally get the numbers they need, whether the voters were dead or alive, present or not. The left won't part with power easily. I'm not so sure that a simple vote of the citizenry is going to pull it off. They've got more power now than they've ever had and they're not going to part with it easily. But having said that, there is a LOT of anger against D.C. It's visible, discernible, audible, and seems to be on the verge of violence. It won't take much to push it that way. D.C. should observe these things and be very, very careful.

[hiredhand]

Man I'm SLOW this evening... I thought for several minutes there that you were actually talking about bugs! LOL!

Yep! ...and they should pay at least something. It's only equitable.

[jpsb]

http://www.APMEX.com

[roamer_1]

Those of us who grew up poor and frugal are at a great advantage in a lot of ways.

A country boy can survive.

[nw_arizona_granny]

Thanks for asking, our thread #3 is at:

http://www.freerepublic.com/focus/chat/2299939/posts?q=1&;page=7215#7215

Frugal Survivor with garden, home, food and all the good information we can find to share.

Now more than ever before is the time to see to your food and medicine supplies.

Hope you are well and safe.

[nw_arizona_granny]

You will find survival information in the 3 threads here:

http://www.freerepublic.com/focus/chat/2299939/posts?q=1&;page=7215#7215

You will find the link to thread one and two on page one at above link.

You are welcome to check us out and join in.

granny

[Joya]

Thanks Granny for the pointer, thanks blam, for posting.

Quix ping.

[DuncanWaring]

It's as if our current leadership has some innate ability to make exactly the wrong decision in a way that maximizes damage.

History is full of "the wrong decisions".

When it's your intent to destroy, there are plenty of historical examples of how to go about it.

[blam]

Ten Things for 2010 (Denninger/Market Ticker Strong Warning)