HORRENDOUS STORM DAMAGE

The nation is heavily distracted by the Hurricane Sandy, its wind, its water, the resulting floods, the resulting electrical power outage, and ruined businesses, the controversies over flood damage versus wind rain and storm damage for insurance coverage. Look for Sandy to surpass Katrina in its total storm damage, which was $105 billion in 2005. Basic research indicates Sandy and Katrina had much in common, as the mad scientists attempt to play god. The efforts to produce a mild winter a year ago might have had a sling shot effect of generating a potent drought. The path was open for a unique storm, called once in a century, for the NorthEast. My memory is clear of the last hurricane to hit the region, which was Julia. The Jackass taped windows in the Boston area all for naught, since the 50-60 mph winds were nothing but a nuisance and cause for numerous downed trees on power lines. This storm is for the history books, perhaps retaliation by Mother Nature for messing in her kitchen, maybe worse. She always reaps her wrath and delivers her vengeance. The High Frequency ActiveAuroral Research Program has a shady sinister tone, but it is beyond the scope of the Hat Trick Letter. What Mengele was to medicine, HAARP is to meteorology. What Fort Dietrich is to viral weaponry, it is to weather control and seismic generations. What Monsanto is to modified genetic foods, it is to weather developments. The public seems laughably ignorant of devices to produce earthquakes and to amplify then steer storms, with nuclear power packs. Tesla notes and dreams have indeed come to life. Some personal contacts have close colleagues who actually worked on the project for theBoyz.

The delusional dopey derelict US economists have surfaced with their errant vacant viewpoints of a reconstruction benefit boost to the USEconomy. If only all could break windows and direct garden hoses in living rooms, the national economy could recover quickly. The key news item is that finally the New York Stock Exchange was finally shut down for two days due to uncontrollable liquidity and its widespread damage, due to a Hurricane Sandy Weill margin call on systemic failure. No amount of high frequency flashes to dry out the systems could succeed. No amount of plunge protection teams could open the drains beneath the damage. No amount of derivative exercises could bring workers to the trading pits.

The storm damage is estimated at $20 to $25 billion, again in a process divorced from the real world. Recall the Fannie Mae bailout estimates for $50 to $100 billion at first. Recall that the Iraqi War costs were $200 to $400 billion at first. The Jackass cited cost forecasts multiples higher, all accurate. Quick footnote on storm aftermath. Think Desert Storm, or Desert Shield, or whatever mucky name they offer. The yellow painted bricks taken from the Iraqi central bank were really gold bricks, stolen, then covered by a lame news network story gobbled up by the incredibly braindead public. In a few weeks, some concocted story might emerge about how the New York Fed was without electrical power, its vault systems left unsecure.

The Hurricane Sandy storm damage will reach far past the $100 billion level, probably closer to $200 billion. The center of the impact was the NorthEast, the most densely populated area of the country. Already 20% of the entire US population has been affected, with almost 7 million homes without power. Insurance firms will be depleted, at a time when their income has been hampered by the ultra-low USTBond yields, coupled with mortgage bond losses. The USFed will receive a big boost in destroying final demand, as the central bank has conducted a hidden agenda to keep commodity prices down by harming the general economy and thus reducing final demand. They will next enjoy hypocrisy of high order, as the economy pauses, then energizes with rebuilding and cleanup. The central bankers will talk of a boost and stimulus. The price of lumber and cement might become a problem later on. Time to fix the broken windows and mop up the flooded living rooms. It is all good, as people are back to work, the economic recovery enhanced.