Friday, May 14, 2010


I interpreted last thursday's 1000-point drop, and subsequent recovery,
to be the warning-signal to anyone still in the water, that the sharks are coming.
My own portfolio was heavily short. I happened to close out most of the shorts
when I saw the jaw-dropping changes; then reopened them just before the closing
bell, so I had a profitable day. Even after the next monday's gap up I was
still looking good. After that, of course, I took on even more shorts.
That leaves only one gold position as a naked long, everything else is hedged or
From what I'm reading about the deterioration in European markets, I
believe that not even the PPT can keep stocks from falling now. For what its
worth, I stand to clean up better than John Paulson did last time. I
seriously doubt that I'll ever be able to actually spend the cash.
The only thing saving us all from instantaneous breakdown is us shorts;
I'm quite aware that there's a whole lot of savvy folk like me, who
have gone short with a whole lot more wealth than I have.
I traded my physical gold for a piece of real estate last month.
I expect gold to continue up for awhile. However, in a situation of
anarchy and general social collapse, owning gold is not going to be
good for one's health. Not with americans armed to the teeth and
drugged to a frenetic torpor with CNBC.
The internet itself will not last too much longer. Satellites have
a way of drifting out of orbit when they are not closely monitored.
Infrastructure requires constant vigilant maintenance. However,
more and more of the intellectual giants find that the only stimulating,
fascinating endeavors lie in the arena of finding new holes and
more devious exploits.
I pay for old sins. My parents had imminent trust in "the establishment"
and they turned me over to the psychiatrists, I expect as much in order
to protect me from the drafty winds blowing towards southeast asia as
because of genuine concern fore my behavior. Still, I believed in
personal change as much as social change, so I gave them enough rope
to do real damage to my body. With my smattering of chemistry, I surmise that
Lithium, the drug of first choice for bipolar, mainly acts by binding
with any free iodine in order to short-circuit the thyroid gland and
just radically dampen-down all bodily function. Yes, it definitely
reduces the intensity of emotional expression, and the parents and doctors
and nurses have no idea of what that feels like from the inside, where
the turmoils and dilemmas are just as intense, they just don't show themselves.
Of course it does, as the metabolism slows, the cholesteral and weight rise, the
kidneys, liver, and gastric system all begin to deteriorate. In enough time,
the thyroid typically sustains permanent damage so that stopping the lithium
cannot save you. Thyroid replacement hormone is a safe, simple, well-understood mechanism. If there is enough of a social system exisitng in the world in
order for drug factories to produce it and pharmacies to dispense it. If not,
a young man will slowly become very, very sick. An older man like myself
will whither. I hope it does not take too very long.

God will be with all of you. After a generation or two, the detritus of our
failed culture will whither and become overgrown. Nature will be able to heal
itself and overgrow all our pathetic and ugly social structures. Life itself
will survive and prosper. People will learn to trust and to rely on each other
again, they will learn that giving is a better means of survival than taking.
I just won't be there to see it. But still, its okay, I know that its coming.

chistletoe,(formerly "Pan" of "Pan and Dora")