My Theory

Everybody has their theory about Flight MH370 since it has been  missing for more than a week. Now they figure it has been hijacked. But there are some other funny happenings. Russia cashed $101 Billion worth of Treasury Bonds Friday morning. They last time they did that was 1956 before they occupied Hungary. Today at the UN, Russia just vetoed the Security Counsel resolution that the Crimean occupation was illegal.

One possibility is that MH370 was stolen. It would be just what they need to deliver a nuke to Downtown Moscow or Tel Aviv. Moscow? It was tracked as far away as Kazakhstan according to one news graphic. Chechnyans might have a use for it. Bill Still has been thinking about it too. He knows that they were talking with the engines for several hours. Gee, ya think they had a GPS on 'em? Altitude data shows a struggle took place after the last contact, and it flew over 45,000 feet, above the service ceiling, then descended below 24,000. But all they would say is it was covered by the Inmarsat 3 footprint. They wouldn't disclose the location.

Now this is all gonna suck for the markets whenever it all comes down. How do you protect against that? Buy puts in a Hail Mary trade? Could go broke doing that too. It only goes to show you that if you find a way to protect yourself like Long Gold, they will move to block it like they did last year when gold dropped like a rock. The gold bugs got burnt being conditioned into a long gold mentality. If you shorted it, you were loving it until recently, but nobody thought that.

The Long Hedge buying opposing securities is inherently blocked by being a sure loser as well. That is when you buy balanced amounts of two opposing securities like XIV and TVIX or VIIX. They have moved to block the opposite short hedge by making them hard to borrow. They like to keep that one for themselves.

Then there is cash. Watch inflation come home to roost. Venezuela has 57% inflation now. Russia is about to get hit hard as well. The Ruble is rivaling a greased turd. American Equities are rising, but how long does that last until inflation is rising faster? And should you stay ahead, the lead hedge a la Smith and Wesson will be poised to collect. Keep that in mind.

I guess we will be finding out what kind of soldiers Gen Y will make. It seems to be the time tested end game of Democrat social experiments, or at least it has been for over 150 years. Ain't no reason it is gonna change soon AFAICT.