Perfect storm next week: This stuff is so on egg shells I am having a hard time sleeping because of the excitement!

Even though one should not be excited for the big hurt coming, but no hurt if you are prepared.

The Saudi's were smilin' in the pic I saw yesterday as they were announcing OPEC production reductions on the day congress voted down Obama's veto 97:1. Well maybe the smirk wasn't about the veto but that they agreed to shut off the oil tap to the worlds economy. On the same day, that they said if that new law (911 victims allowed to sue Saudis) passed, they promised to liquidate their US holdings. I wonder if their word means anything or just full of bull?

And all that as mega fund manager warns “for any professional investor, this is the most difficult period we’ve ever experienced”, adding that “I’ve never seen it in my career. It’s the most treacherous moment.” All while Syria is sparking up and China is being allowed to buy SDR's. Will China move record amounts of US Treasuries into SDR's while the Saudis bail out next week?

Lets not forget the warning from Soros and Bill Gross that was said in recent days. Now what about the bad news this week from WTO. The other big elephant in the room is our friend Ms. Merkel from Germany said no to any bail out for Deutsche Bank all while the Fed said no to postponing of capital requirements. I wonder if Deutsche Bank will play their cards next week pulling the plug and stop lending or have a fire sale on some assets making partners in crime capital requirements fail especially all the Italian Banks? I also wonder if 15 of the largest banks decided to close at the same time if tax payer money would be used to help the starving little chubby bankers.

Sure hope there is no run to safety, just imagine if the COMEX could not deliver physical gold or silver calling in a whole bunch of paper contracts making another 20-40 large banks insolvent – now wouldn't that be for an exciting week.

Remember the stock market is at a record 25:1 P/E (price to earning ratio) while having corporate profits down 3 quarters in a row. The longest and broadest slide in earnings since the financial crisis. During good times and before this near zero interest rate policy the average P/E was something like 15:1.

Did I mention home ownership rates are at 50 year lows in the USA and the job participation rate is also at 38 year lows. So don't be listening to the fake unemployment rate as that is all new part time jobs. Does that add to the Dry Bulk Index being at multiple year lows and this week a report from the WTO said they are lowing their forecast by about a third to its lowest rate since 2009.

I think there is some anxiety around town and this may blow up (on purpose) around election time so the establishment says – so much going on you better vote for the status quo to handle the current stresses as they are experienced. Never would they mention they caused this and most were too incompetent to see it while the decisions makers behind the curtains have big smirks on their faces.

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Peace be with you.