Our Weekend Homework - "Rollover"

Friday, June 1, 2012 at 5:02 pm

To prepare for what will, most assuredly, be a wild week ahead, there is nothing quite as relaxing as some cinematic entertainment to help your minds off of things. NOT!

I only first heard of the 1981 movie, "Rollover", a few weeks ago. On page 96 of his great book "The Golden Revolution", John Butler discusses how the events depicted in this film could easily transpire today. In the film, global liquidity vanishes when the Saudis begin moving reserves out of dollars and into gold due to fears of a dollar collapse. Obviously, the plot is a bit dated but the premise is still real. Here's the wiki page for the film: http://en.wikipedia.org/wiki/Rollover_(film)

Substitute the Saudis for the Russians or the Chinese. Better yet, don't even imagine a sovereign boogeyman. Simply imagine a global liquidity event/meltdown like 2008 or, potentially, 2012.

First, if you haven't yet, please page through this presentation by the hedge fund manager Raoul Pal. If you don't think it sounds plausible, you haven't been paying attention recently.

The End Game

Now, watch this brief compilation that intermingles parts of Rollover with actual news footage from 2008.

Getting nervous yet? Me, too. Now, I urge you to take some time and watch the entire film here. Maybe make some popcorn. Kick back, relax and prepare to be seriously unnerved.

Look, I'm not saying that this is what's going to happen. However, I think we can all envision a scenario where these events, as depicted in the film, can happen.

Prepare accordingly.

p.s. I'm off to Cabela's to buy some more ammo.

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Comments

Brokerage repays investors

Submitted by redwood on June 2, 2012 - 7:59am.

http://business.financialpost.com/2012/05/02/rbc-brokerage-to-repay-us2-...

BOSTON — Royal Bank of Canada’s brokerage unit agreed to repay investors in Massachusetts up to US$2.9-million to cover losses on leveraged and inverse leveraged exchange-traded funds.

gordo

Submitted by boatman on June 2, 2012 - 8:18am.

feels like a dress rehersal but u never know.........

i am going for ammo tho.

and remember oil of oregano kills MRSA on contact.

The End Game

Submitted by crissman on June 2, 2012 - 8:22am.

Does anyone know of a way to access 'The End Game' without using Scribd?

It requires that Flash Cookies be allowed, but I don't do that kind of thing!

Dangers of root canals...

Submitted by recaptureamerica on June 2, 2012 - 8:31am.

http://www.westonaprice.org/dentistry/root-canal-dangers

http://articles.mercola.com/sites/articles/archive/2012/02/18/dangers-of...

http://www.healingdaily.com/exercise/root-canals.htm

Is this the end?

Submitted by Xty on June 2, 2012 - 8:37am.

How indeed would we get by without the help of experts - and I love the stay calm, but stay tuned because any second all hell could break loose. In order to make us a little more fearful, our local Dear Leader the Mayor helped unveil signs similar to this one, as part of a provincial programme to scare the poop out of us, every time we drive our coal-powered electric cars back and forth from the meat-grinder:

They actually had an unveiling:

(Isn't he inspiring?) Here are the official reasons for this fear-inducing eye-sore campaign that even employs that modern hideous nounage, signage:

"This is a release from the City of Ottawa:

Emergency detour routes are in place to help guide motorists throughout the City of Ottawa in the event of an unplanned highway closure. Mayor Jim Watson was joined today by city and provincial officials at City Hall to unveil the new Emergency Detour Route (EDR) signs.

Last month, staff from the Public Works Department began installing approximately 2,000 EDR signs along Ottawa’s roads and highways. The Ministry of Transportation has also installed EDR signs at key interchanges on Highways 417 and 416. Highway drivers will be directed to follow the EDR signs whenever there is an unplanned closure of a section of Highway 417, 416 or Ottawa Road 174.

“City of Ottawa residents count on our major traffic routes to get to work, move goods and deliver services every day. So when an incident closes a highway, we need to have a plan to safely reroute traffic,” said Mayor Jim Watson. “Now, with the Emergency Detour Routes in place, the job of rerouting traffic away from the scene of an incident is easier and safer for drivers.”

“Emergency Detour Routes were established as part of a provincial initiative to standardize signage and procedures for major road closures across Ontario,” said Yasir Navqvi, MPP for Ottawa Centre. “The routes are designed to provide drivers with an effective pre-determined route of travel when the highway is closed due to an incident or emergency.”..."

http://blogs.ottawacitizen.com/2011/05/04/ottawa-gets-emergency-detour-routes/

If "o" cancels the election

Submitted by opticsguy on June 2, 2012 - 8:39am.

I would hope some generals would step up and put "O" under house arrest. Declare a temporary military government (6 months), dissolve congress, and call for a new constitutional convention. Our country would work just fine without any new laws for a year.

At the convention, change the legislature into a proportional parliamentary system, instead of the winner-take-all two-party system so easily corrupted by money. Elections are held and the new legislature then choses a new supreme court. The new president takes office in late 2013. Hopefully the new CC would outlaw credit-based money.

Wishful thinking, but perhaps the only way to do a reset without millions getting killed, locked away, or starving.

boatman

Submitted by Xty on June 2, 2012 - 8:43am.

always liked the word digress, and reminds me of the Barnum and Bailey "This Way to the Great Egress" cry.

However, re who was right, I would remind you (and here I feel I am actually conceding my original point) that I am a woman, and therefore was right, regardless of what actually happened. I am sure you understand, as you mention a GF.

After a Friday like that one...

Submitted by Teach on June 2, 2012 - 8:50am.

The weekend seems eerily quiet. It really feels like Monday could be a big day...is it really the beginning of the end game? Perhaps cancelation insurance on my summer travel plans might have been a good idea. Given the difference in preparedness levels between the summer destination and home, I'd have to say home is the better place to be.... Then again, it can be difficult finding the line between prudence and cowardice. Ain't life grand? Never a dull moment! (And I cannot wait to get to the beach!!) And of course I have a root canal booked in 2 weeks....never a dull moment.

Early Stages of a Fear Event

Submitted by Watcher on June 2, 2012 - 8:56am.

"The independent strength in gold and silver can only mean one thing. We are in the early stages of a fear event. As the fear of insolvent banks and broken government promises grows, people will increasingly move out of paper assets of all types and into physical gold and silver.”

Turk - This Coming Disaster Will Be Worse Than Lehman 2008

May 31, 2012

With continued volatility in major markets, as well as gold and silver, today King World News interviewed James Turk out of Europe. Turk told KWN, “The money coming out of the stock market is not only going into German and US government paper; it is also going into gold and silver...” Here is what...

Root canal dangers..another good article

Submitted by recaptureamerica on June 2, 2012 - 8:57am.

http://www.newswithviews.com/Howenstine/james34.htm

@recaptureamerica

Submitted by boatman on June 2, 2012 - 8:58am.

yes, that was before i knew what you just posted.

and you are 100% correct, if i wasn't a one finger typist i would have went there.

glad you did.

****************************************************

XTY.....................................yeah, if momma ain't happy........then NO one is.........if i only had a FRN for ever time i ran Karen outta here.

i gotta have things my way to keep me in my youth........at 63..........too old to be domesticated.........i'm a sumbtch.....never been invited to a wedding.........wouldn't go anyway.

@boatman

Submitted by TexasStacker on June 2, 2012 - 9:03am.

Good stuff this am on alternative therapies. Back in the 90s I added some auricular point stimulations to my toolbox of therapy techniques, and it did help some people I treated. Good to hear that fixing your tooth/lung problem solved your bronchitis issue.

Sometimes modern medicine is just perplexingly unimaginative. Your comments on abx touch a nerve too. Never understood why a patient with diminished to absent arteiral flow is given po abx for osteomyelitis and then we sit and wonder why the infection doesnt clear. Maybe cause the rx isnt reaching the target? Now, before I get too far off topic, how bout that action yesterday! Lovin the action in EXK GPL HL and the metals....

wanted to put this out on main strEEt this wEEkend

Submitted by survivalwstyle on June 2, 2012 - 9:03am.

kEEp your head right

Recapture..

Submitted by Teach on June 2, 2012 - 9:04am.

Thanks for the links. I had no idea. As someone who has had several root canals..and whose immune system has for several years been really challenged (I always thought it was from constant exposure to sick kids) this information is valuable. I am going to have a chat with my regular dentist about this prior to letting him start drilling. I have the choice of going to a root canal specialist for a higher fee, but maybe it is worth it. I do wonder about the other 4 or so from long ago though.

Re Root Canals

Submitted by Tube on June 2, 2012 - 9:06am.

Just brush your teeth and floss. Then you won't have to worry about it. Rocket science!

She has ya there, Boatman

Submitted by Roark on June 2, 2012 - 9:07am.

Roarks father (a very wise man) once said: "son, there are two words you must learn if you want to survive in a world of women. Those words are Yes Dear. Use them frequently, with sincerity, and whenever a rapid escape from a situation is needed"

C'mon Boatman. Say it. :) you can't win this one. Her avatar is just too cute.

(the above post meant with good humor to all parties)

boatman

Submitted by ivars on June 2, 2012 - 9:08am.

If ECB cuts, there should be a buying opportunity on Wednesday-as usual - but this time on an upgoing trend.

End of system will definitely not come this year, nor even next. There is still time to live same old ways for 2-3 years. Is the Usa ready for fascist regime
already- no way.. And Obama/Romneys are not the ones to see such regime through.
There needs to be grass root movement supported by part of big business and a charismatic and sligthly visibly mean leader. Not afraid to cause conflicts in society, thriving on them. Takes time, more than few years.

Brushing and flossing was never the problem...

Submitted by Teach on June 2, 2012 - 9:10am.

Getting kicked in the mouth caused a few loose ones one time..getting coup batonned caused a few more. :-) Friday nights can be bumpy.

I am fond of undomesticated sumbtch's

Submitted by Xty on June 2, 2012 - 9:18am.

never been invited to a wedding.........wouldn't go anyway.

Including your own, no doubt! Better keep me away from Karen ...

The End Game

Submitted by crissman on June 2, 2012 - 9:24am.

Does anyone know of a way to access 'The End Game' without using Scribd? It requires that Flash Cookies be allowed, but as a long-term, confirmed, practitioner of 'safe hex', I don't do that kind of thing!

Rollover

Submitted by cpnscarlet on June 2, 2012 - 10:06am.

Since I knew the story pretty well, I concentrated a little more on the tension between the two leads (KK and Fonda). I found the aspect of "trust" between them as the nub of the movie. This is what led to the breakdown. Fonda didn't trust KK and so she went to the Arabs, precipitating the collapse. And when they finally COMMUNICATED and found that trust, it was too late. (BTW, how much do you and your spouse communicate? Are you totally honest?)

And what is lacking big time in finance right now? Trust. How appropriate in its trite little way. Without trust and the rule of law, commerce goes forward at a very inefficient snail's pace. And when a complex financial system slowly moves from a state of trust to mistrust, it will collapse eventually.

And so we buy the one financial "instrument" where the trust is not placed in man, but in the absolute of matter alone and its historical context, "God's Money", if you like.

And with that little speech mercifully over , I'll say "Have a good weekend".

cpnscarlet

Submitted by Xty on June 2, 2012 - 10:15am.

"God's Money", if you like.

I think you could easily add an 'l' to that:

"Gold's Money" indeed!

I hope the cats are keeping off the tracks, and that you also have a good weekend.

@ Turd et.al - Santa getting real, too

Submitted by Lamenting_Laver... on June 2, 2012 - 10:23am.

Santa says that there is safety in undervalued quality mining shares. He also says, that in order to be safe one should take delivery of the share certificates or buy them with direct registration.

I have contacted my two brokers, and asked if they offer direct registration on foreign shares. They do not. So I have to let the opportunity pass for now. Reluctantly!

What are you guys doing about this? Do you know of online brokers, who do offer direct registration service? And how does it work?

@cpnscarlet: Nice analysis. Unfortunately this is exactly why yesterdays actions, market as well as less reserved than normal postings, was so unsettling.

Ivars wrote If ECB cuts,

Submitted by murphy on June 2, 2012 - 10:24am.

Ivars wrote

If ECB cuts, there should be a buying opportunity on Wednesday-as usual - but this time on an upgoing trend.

Agree with Ivars on this one except ECB wont ease until after Greek elections. If history has taught us nothing else but how long TPTB can drag out the end game. Someone of a Rand Paul type will bridge the gap between the masses and the Republocrats.

I don't believe the Fed will ease at the June meeting. Just too early in the election cycle since the Romneyites would use it as ammunition against the Obamamaniacs. USA needs more economic pain before then. After the ECB rate cuts dollar will continue to increase and which time it will not be allowed to go any higher. At that point QE3, our savior. I think we have three to five years before the great reset.

Be prepared, but enjoy life while we can.

Rollover

Submitted by GoldFinch on June 2, 2012 - 10:30am.

The first time I heard about this movie was 5 years ago from David Morgan:

Economist and Author, David Morgan reenatcs a dramatic scene from the Movie "Rollover" (1981), a frightening worldwide currency crisis he says we should be prepared for in our lifetimes.

Apache. A, it is silver that

Submitted by tmosley on June 2, 2012 - 10:31am.

Apache.

A, it is silver that is going to zero.

B. it is paper silver only.

C. this is the most bullish possible scenario possible in any universe for physical silver holders.

D. QE does nothing but apply a scalar to the price. You go happy happy joy joy crazy when you see a nominal price going up, failing to see that it is simply the fall of the currency.

E. Fuck off, dipshit. Even with your stupid ass on my ignore list, I can still see the titles of your posts.

I leave my shares in street name.

Submitted by Eric Original on June 2, 2012 - 10:42am.

This whole schtik about direct registration/share certificates is just too tin-foil hatty for me. I don't care if it comes from Santa.

Paper shares are for trading, not for taking to your grave. I want to maintain easy liquidity. I want to buy/sell with a click, not f*ck around with registration or sending certificates through the mail.

My real "deep in the bunker" stuff is the physical metal.

Jim Rickards' book

Submitted by Strongsidejedi on June 2, 2012 - 10:51am.

I just re-read Jim Rickards' Currency Wars. In his final chapter Rickards discusses possible end game scenarios.

The first scenario appears to be playing out now. There are regional reserve currencies that are clearly forming.

Euro, USD, and the Chinese Yuan.

another delightful interview by my favourite professor of econ:

Submitted by Xty on June 2, 2012 - 10:52am.

Larry White on the Clash of Economic

Ideas

Lawrence White

Hosted by Russ Roberts

Lawrence H. White of George Mason University and author of The Clash of Economic Ideas talks to EconTalk host Russ Roberts about the economists and their ideas of the past one hundred years. They discuss Keynes and Hayek, monetary policy and the Great Depression, Germany after the Second World War, the economy of India, and the future of monetary policy.

http://files.libertyfund.org/econtalk/y2012/Whiteideas.mp3