US markets deadcatted last nite couretsy of PPT whilst George...

US markets deadcatted last nite couretsy of PPT whilst George and Ben said nothing tangible to inspire confidence in them watching. Best bit was verbal punch-up between Santelli and Kudlow and a coupla others in CNBC post mortem.

New bit I noted from the traders pit was that total size of derivatives market now sits at est USD 700 TRILLION ....... cf only 400 as of last year which itself was multiples of that at DJIA "A" primary low Oct 2002. The beast is now so big no action IMO will be able to control it as GORM WW3 versus USD gathers pace.

Hence IMO we are already in the megabear minefield and waiting for some accidental / outside deliberate trigger to break USDX 79.7 base and open Pandoras Box. Watch the POG confirmation break thru circa 690+ if the bear doesnt deflate it down in the first instance.

My expectation revisited simply put then is :

GORM stage 1 : debt default asset deflation "C" wave over next 2 years or so, Jap-style black hole, followed by/overlapping with ...

GORM stage 2 : monetary (hyper) inflation, already started and accelerating from here ......later resources supercycle "C" / driving broader market "D" wave bounce probably kicking in from say early 2009 +

++ asset deflation + monetary inflation = stagflation ++

The GORM covers the intricacies (see July 23 courtesy of USP repost) with survive and thrive rules 1-5 as well.

#1 Why Not;

#2 Olympians have no fear;

#3 be prepared for the worst and hope (pray Zeus) for the best;

#4 cash is king / debt is (poss) death in deflationary waves

#5

Thats MY PERSONAL call and how I personally am playing it and increasingly so.

GORM 1 calls for 80 cash / 20 emerging resources olympians, gold, with cash then being applied to emerging gold / resources olympians during GORM 2 (later?)

But being voluntarily tied to the Ark's mast from its rebirth backing the evolution of the RJMF mega-resource base, I am not a trader and have not followed my own rules. I did sell a few post news when it failed to hold 382 pivot and given the still undefined TIME delays for start-up ... straight to the GORM warchest.

With this background which I EMPHASISE is PERSONAL BELIEF, THEORY and APPLICATION, it saddens and totally frustrates me to see the Ark now floundering aground a sandbank with its boilers flooded and wave stabilisers not yet operational and IMO, in a most vulnerable state exposed to, IMO, the fast gathering stormclouds, with sharks now sniffing blood.

Delays / cost over-runs are an unfortunate fact of life but beats me how one can be so far out so quickly with most of the plant already up (?) Lots of answers needed for clarity's sake.

Meanwhile we all need to do some thinking re the current reward / risk equation based individual beliefs and strategies based new factors now in play. I am VERY wary of the general market as u know and hope we can get our Ark off this damned sandbank and with wave stabilisers operational before the storms I fear arrive.

IMO 330 - 365 - 382 -404 are the tech pivots immediately in play. Market forces will decide which way from here. Gets a bit hairy short -term TECHNICALLY if 330 doesnt hold ...... we even have roosters now crowing. Sure not vultures in disguise (?)

Long term we have such wonderful assets to develop and there would be plenty around looking closely at the numbers. We need some GOOD news soon on resource upgrades for both base metals and Uranium to relieve the pressure.

But gotta say, CREDIBILITY has taken another major hit now and desperately needs bolstering. Oxides plants are supposed to be simple.

Meanwhile, whilst our Ark is subjected to whatever dangers and humiliations the market storm(?) may throw at it, u will find me in the Ark's hold with a keg or RUM attempting to become numb to whatever the coming storm dishes out. Tis awful watching large numbers sliced from the value of your holding when you have sweated blood and tears during its early evolution. You all know the feeling.

Lets hope we get some real answers REAL soon on what next to expect. Lotsa wildcards around like what the hedge funds and HNC will think. LUCKY we have cash in the kitty but what a WASTE to think so much of it will go toward lousy capex estimations ..... and at our expense solo! There's another issue. Im peed off all round.

Reckon there might be some emergency war cabinet meetings over the weekend. Hope so.

IMBOOC