Stock rally insanity.

The market is rallying on the jobs report.  Only 7,000 jobs different than the last report, and it will be adjusted upward like every previous report recently.  7,000 jobs -incorrectly tallied – are pushing the Dow, S&P 500 and Nasdaq up over 4% today.

WTH are people thinking?  It's not sustainable. Nothing has changed for the better.  Watch the Dow go to 9,800.

Someone is tinkering.

With DJIA futures in overnight trading.   This has been happening for a few days now.  Whenever the bottom gets ready to drop out someone starts buying and pushes the price back up.  You know it's tinkering because it's just about a sure bet that the DOW is going to continue in freefall tomorrow and they will lose their…correction…OUR…tax money- AGAIN.  Someone is tossing money away just to try and create a little consumer confidence. 

I don't think it will happen.  I think the mortgage rate is going to hit the prime rate pretty soon, or very close to it.  I think Europe is done for and the London riots will become the norm throughout Europe and the Middle East.  And I think that it will spread to North America pretty soon. 

There is simply more debt than there is money.  No matter how you spin that, you can't make it work.

I am going Monday for my third operation in a month.  I pushed them all together because I seriously believe the economy is going to hit Depression v2.0 very soon and I need it all done while I still have medical coverage – and while the doctors are still accepting it.  My knee a couple of weeks ago, my face yesterday, and my finger on Monday.   I will then be as patched up as I'm gonna get in this lifetime.

If you are still trying to figure out how to preserve your wealth, and I actually know half a dozen people who are wealthy – I suggest you turn your shares into cash.  When property hits $10k an acre again, buy ten contiguous acres of good farmland, prep it, and give me permission to farm it if you don't want to.  Keep your guns oiled, make sure you have enough ammunition for the long term and hold your silver and gold. 

I still recommend that you do exactly the opposite of what the groupthink says.  Leverage every penny of liquidity out of your home at 3.5% before the value of the home drops any further.  The FED has already indicated that the economy is not going to turn around, so don't watch the ticker expecting it to.  We are past that.  People are now buying Treasury bonds at NEGATIVE rates just to have a place to park their money in what they hope is relative safety.

Every penny of QE2 was lost in the market over the last week or so.  That money is simply gone. So, learning from their mistake, the FED is going to initiate QE3 at some point and that will all be lost immediately as well. 

At that point, neither the federal, state, nor local governments will have the money to continue to supply basic services,  such as fire and police, much less ridiculous entitlements.  But they will have to.  People have to eat.  When a government has to do something it can't do, it starts shooting civilians.  I don't think our military will do that.  I don't think they will obey unlawful orders.  If they think Afghanistan is bad, try oppressing the Heartland of America.

Don't sit at home and pretend this isn't happening.  It is.  The government is feeding on itself but it isn't feeding us.  We are the 'little people'.  We are the formers owners of this country.