(snip)"The thesis is that maybe you should right now be thinking about getting liquid – gradually. I consider our time right now, May 07, to be a time just like before the world stock crash of ‘29.
Imagine what people would have thought, if, after the stock market crashed in successive waves over a period of a year into 1930 – what they would have though it they could have gotten out of those markets in say, Feb 29…..and not ridden stocks down 50% .. and later 90%, in the several years following the ’29 crash.
If you wanted to sell stocks or whatever, it makes sense to sell in liquid markets that are going up right?
Or would you rather wait, and sell in falling markets after they had peaked? That is what greedy people do.
On the other hand, the ‘insider’ types usually sell in the last stages of a bull market, and we see ‘distribution’ patterns that precede stock crashes. Only this time, we are looking at a world stock crash – as if the world stock markets together were one market. The present world bubble is an unprecedented world financial mania, never seen before, and at least 1000 times the money value of the 1929 world stock market. It is synchronized. It will all crash on one swoop eventually.
We have record insider selling right now, just like on 2000. This is distribution. They are selling you their shares, getting out, and knowing the market is rising. They are cashing out."(snip)
(snip)"You know, after several years of this newsletter, and even before, there is one primary problem that I have been working on. It is, ‘how does one save his wealth, even if there is a currency crash, even if there are financial market crashes, even if there is a deflationary depression?’
Well, what I find out is, there are different types of liquidity. I am working on this in more detail, but let me broad brush this:
If financial crashes are coming, you need to be liquid before the crashes – that is obvious.
There are different types of liquidity. These depend on the currency they are in as well as things like interest rates.
If you have decided to get liquid and out of paper markets then, you need to consider currency risk and interest rates, and liquidity. I do not consider ETFs or electronic gold to be serious candidates for crisis survivable liquidity.
To be liquid in a financial crash, you need to sell assets and go to – say – cash. What you do with your cash comes into two categories.
First, you go into a currency and say, take an insured CD with 5% interest. That is liquid.
Or, on the same vein, you can use an insured savings account and get maybe 4% with no timeline.
If you really want to get liquid, you can buy precious metals and things that central banks use to back their currencies. These pay no interest, but they are immune – more or less- from currency crises. I do not consider any paper metal vehicle to be metal. It is paper only, and depends on the viability of the market and normal market operations.
The cost of being immune from a currency crisis is that you lose interest.
If you want interest, you have to be in a currency…."(snip)



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