Get All Your Money Out of Banks and Other Nutty Ideas!

Yep! This is the way it is; get all your money out of the bank. Put it in a mattress or under the flower planter. Put it anywhere but the bank! 

What's going on in Cyprus is coming to a neighborhood near you. Don't say you weren't warned! Smart folks like me (we'll if we really were smart, we'd be rich) read Zerohedge everyday and knew in 2011 that the criminals and idiots that run our government's had no way out of the current economic mess so they would, eventually, come to steal money in people's bank accounts.

That "eventually" happened about 10 days ago.

I'm hoping that dear reader has kept up on what's really going on in Cyprus and Europe so that I don't have to go too much into detail... But, just in case they are not, here goes:

Cyprus is bankrupt. To pay for the debt, they decided to steal people's money in bank accounts. They figured that the people they could screw the most were Russians who were ex-KGB and mafioso types so that the regular people, Joe-Blow types, wouldn't get too upset. They figured if they made it look like bad guys were getting screwed, and not Joe-Blow, no one would complain too much.

F*ck the rich, right?

Well, the Euro Einsteins in the (as Fred Reed would write) "Gubbmint" figured wrong as it now looks like the ex-KGB and Russian mafioso types have already snuck all their money out of Cyprus while the geniuses weren't looking. Well, hell! Of course they did! That's why they are ex-KGB and mafioso types! Do you think they became a part of the underworld because they were standing around like Joe-Doofus? Er, I mean, "Bending over and holding their ankles like Joe-Doofus?"

No way! This is the real world!

Now it is the average Joe-Blow who will, of course, get F*cked! You didn't really think ex-KGB and mafia people were going to get f*cked did you? I mean, what planet are you living on?

Anyhow, I'm drinking now so I'm on a roll....

This is how it is, folks:

1) Get your money out of the banks*

2) I don't care who your are, you're about to get f*cked (people living in Japan, please take a number!)

3) Get as much gold or silver or real estate as you can (hard to steal that sh*t!)

4) Get weapons, canned food, a damned good home alarm system, a safe and keep money and important sh*t at home.

5) Make a plan with neighbors to watch each other's houses when you, or they, are gone.

*= Get your money out of the banks? Yes, Mike (that's me) says. But! If you have zero in the bank then the feds will be suspicious, so keep a token, but substantial enough, amount in those banks not to draw attention to yourselves. Trust that if you own a million dollar home yet only have $30 dollars in the bank, the tax office will be suspicious.... Point? KEEP A "SACRIFICIAL LAMB" amount of money in the bank to divert attention from yourselves.

Dear Readers! The sh*t is hitting the fan much faster than anyone realizes (I believe). Prepare now!

The people who are running our government and (far too many of) our corporations are completely and totally incompetent! 

Here is an analogy of what is going on. I cannot state specifically the company, or government run airlines doing the following, but this is a real-life example that is going on right now and it should be raising the hair of shareholders in this company!.... This is typical, from what I've seen, how things are going... 

Make no mistake about it, this kind of incompetence and mal-investment is caused by government interference in the economy and easy-credit.

Here's the example:

There's an airlines in Japan. It has a new manager. She is totally over her head and has zero business experience. What she is doing is appalling.

Listen to this and you tell me if you think I am wrong!

On May 1st, this new airlines manager, she has decided to completely change the flight schedules for all routes on the entire airlines.

Is there any reason or scientific data to support this change? No. It is a "feeling."

Then this new manager has cut the working hours on the most popular routes, of her most experienced pilots, from 20% ~ 50%! Of course, all the experienced pilots are unhappy.

I think it is pretty much common knowledge that unhappy employees don't do good work. It gets worse... Read on!

This new manager, to complicate matters, has also completely fired all ground and support staff - who have been there for years - and replaced them all with brand new people! That's right! The entire support teams, from check-in, to luggage, to in-flight dining, to navigation and book-keeping; these have all been changed completely!

So far, so good? 

Well, I don't know... Maybe... 

Maybe these changes do make sense? Maybe these are the ideas of a dedicated and experienced professional. Maybe Richard Branson could pull this off? I'm not sure. But the person in charge has never ran an airlines before. She is guessing.

But the next change is just a jaw-dropper and makes me fear for the future of this airlines:

Not only has the new manager cut all the experienced pilot's schedules by 20% ~ 50%, and fired the complete ground and support crew staff, she has also implemented a completely new check-in, maintenance, navigation and in-flight computer system that doesn't go online until May 1st! This means that no one is able to use the new computer system until it is already online ON THE DAY THE NEW SERVICE IS UNVEILED!

There will be no training and testing of the new system!!!!

Is she completely mad? Actually, no. 

She is just over her head and incompetent. There is no excuse for such actions. She has also surrounded herself with "Yes-men."

You can bet your bottom dollar that there won't be a single flight that takes off or arrives on-time and on schedule with such a scatological management system.

Fact is that even the staff are now complaining. Fact is that even staff of this new boss are now ridiculing her to other people as being "completely incompetent."

No doubt. This is what happens when you surround yourself with "Yes men."

It's simple. You wanna change the flight schedules and experienced pilot's flight times? No problem.

Do that from May 1.

You wanna change the flight schedules, experienced pilot's flight times and complete flight support crew? Well, now you are asking a lot, but it is not impossible; maybe do that too from May 1. Or, perhaps, best to wait for six weeks? Difficult call; that's why management has to make informed and logical (and scientifically based calls).

You wanna change the flight schedules, experienced pilot's flight times and complete flight support crew as well as a totally and completely revamp the computer system (throwing away the old system) - all at the same time?!

Are you nuts?  

Your flights and customer satisfaction are dependent of flights being on time and a comfortable flight. No one cares about the computer system or ground crew you use. Changing so many things at once is just plain foolish and a sure-fire way to screw things up and...

THEN CREATE A BAD REPUTATION FOR YOURSELVES!

Not a good way to start your new service!

..........

....But that's the way it is, folks. 

And that's the kind of "leadership" and "management" we have today. It's the same in many private companies and the government. Why? Because government meddling in the economy causes for mal-investment and a distortion of true market realities and conditions.

This story about the airline is typical, my friends. I am talking about a company that I work with. It is obvious what is going to happen: Things are going to be screwed up and the other companies, whose support is critical, will lose trust.

Losing trust is the death nail; it takes a long time to build trust; it only takes one second to ruin that trust.

And now we come full circle: Japan has closed banks in the past and stolen people's money. It's happened in the USA and now Europe....

What are you going to do? Do you still trust your savings in any bank?  Do you still trust the company management and government.... With these kinds of people in charge?

Your families' health and safety are up to you and only you. You have been warned.

Currency Wars Lead to Trade Wars Which Lead to Shooting Wars - Yen to Go to ¥200 to $1 US Dollar?

And so it begins. The currency wars have most definitely started. The last time this happened was in the 1930s and we know what that lead to as currency wars lead to trade wars which lead to shooting wars. 

I hear that Kyle Bass predicts the yen to drop to ¥200 to one US dollar.

And some people criticized me for predicting this event (though off by a few months) two years ago.

Start to stock up, folks. We're in for a rough ride. It's not coming, it has begun.

Getting Richer By Getting Poorer - Japan's FX-Bond-Stock Trilemma

JPY could fall a lot further because weak JPY has been the most effective tool to create equity market wealth and spur Japanese demand. Moreover, Citi's Steven Englander notes, Japanese policymakers do not have many other options. If JPY is ticket for the Nikkei to regains ground lost versus other equity markets, USDJPY would have to go into three digits. By implication JPY would have to weaken a lot more. The loss of market share in part reflects long-term structural issues but Japanese governments (like others) are more mindful of incurring the anger of domestic political constituencies by making tough structural reforms than of G20 counterparts by weakening the exchange rate. From a political perspective, the Nikkei-JPY relationship is too much a good thing for Japanese policymakers to give up - but divergences are abundant at the short- and long-end of the JGB curve - and too much of a good thing in this case is a disaster.

Read more at Zerohedge

If the G20 criticize Japan for currency manipulation, which they probably will, Japan can point out that their equity market poor performance over these last ten years  also reflects a major loss of export market share… This has occurred since 2000 and escalated since 2007. In fact, some economists would say that Korea has benefitted greatly on the Yen's strength and this is unfair to the Japanese economy. 

Please refer to: Yen's Drop to Give Boost to Earnings in Japan

South Korean manufacturers Samsung Electronics Co. and Hyundai Motor Co. snatched market share away from Japanese rivals, helped by several years of won weakness and yen strength. But some of those advantages are eroding with the weaker yen. The won has strengthened 27% against the yen since June 1. 

The Japanese representatives will also argue that there is undeniable evidence that the yen to dollar exchange rate has contributed to the weakness of the Nikkei and the overall Japanese economy. Couple this with a much more militant Shinzo Abe administration and I think it wouldn't be outside of possibility where we see Japan getting upset at the G20 and strongly protesting actions. Hell, the last time a world wide organization really put the Japanese on the spot for actions was when Japan walked out of the League of Nations on Feb. 24 1933 (Almost 80 years ago today!)

... Hey! Didn't I just read a sentence at the start of this exact blog post that said, 

"The last time this happened was in the 1930s and we know what that lead to as currency wars lead to trade wars which lead to shooting wars."

Yep. I did. 

This isn't going to turn out well....

"A massive 40% devaluation of the Japanese yen is imminent and inevitable..."

Are you sitting down? I hope you're not drinking coffee right now....

From Zerohedge:

"Caixin's Andy Xie, who is now confident that a massive 40% devaluation of the Yen is imminent and inevitable (with dire consequences for regional trading partners) ... now that the Japanese economy is no longer competitive in the New Normal world (read trade surplus) of delaying what every other central banks has been doing so well.... "

(Caixin is News and Analysis on China's Markets)

I hope you have at least 3 months of food and water stored up and you hold some gold besides being ready for earthquakes and other natural disasters, you should be ready for the man-made one that is coming.

Read more: Four Years of Japanese Central Planning Failure Chart