From the Mind of Kalidas 1

Oil Dollar Gold

Down UP
• Higher Demand • Banks failing
• Less Supply • Brokers failing
• Less Inventory • Insurers failing
• Higher orders • Properties falling
• Weak Dollar • Mortgage defaults
• Higher Inflation • High Inflation
• Low Interest Rates • No Jobs
• Low Interest Rates
• Recession
• Dow, S&P Falling
• Bonds falling
• Munis bankrupt
• Local Govt insolvent
• Credit Squeeze
Rubinomics Back?
• No One lending
• Derivatives Zero
• Budget Deficits
• Trade Deficits
• Iraq/Afghan War
• Trillions in Printing
Hank Paulson
•
Down
• Great Depression
• Paper Currencies
destroyed
• Derivatives Zero
• Money lost in black
hole
• Hyper inflation
• Free Money
• No confidence
• Economy collapse
• No gold with Central
banks
• Manipulated Gold
stock figures at Fed
• Hedge funds not
returning shorted
gold nor money
• Economy Collapse
• Unworthy Treasury
• Uncontrollable
Dollar ($)Printing

US- a Nation on the Grill

A true nature of a person or nation comes to the fore, when it
comes under extreme duress. A bankrupt person, corporation
or a nation tries very hard to project itself as a person of extra
ordinary means, contrary to facts, figures and market rumors,
and go on shopping spree.

This is why billions of dollars are being paid by one bankrupt

bank or corporation to the other in take over process lasting
only a few hours. No due diligence, no submission of bid to
the board, No minority interest, no news out – just black out.

Today’s scenario reflects “blind game”. No one knows about

self or other party. The suitor does not know what he has, and
the target does not know what it is worth. The vultures circling
on the prey, ask for $700 billions with no questions asked.

The President of United States, Senators, and Congressmen are stunned at the attack of unknown
origin and extreme brutality. This is an act of extortion of $700 billions. Call it “Blackmail of
Greenback” if you like.

Copyrighted @ Kalidas Hong Kong – 2008

From the Mind of Kalidas 2

With worsening scenario being played out every day, no one in right mind will ever buy US dollar.
Look at the box under Dollar Up and consider the following:
• Fannie/Freddie Mae got $200 Bln,
• AIG $85 Bln,
• JP Morgan got $59 billions ($30 Bln for taking over Bear Sterns and $29 Bln given to Bear
Stearns itself),
• Washington Mutual Bank (WaMu) was given $230 Bln in last 3 months, all zero now,
• $673 Blns flooded into the market on Dow’s fateful day losing 778 points, and
• Billions of others not yet declared but given to host of banks, brokers and investment banks.
• $700 billions are now planned to be spent to buy the rotten and Zero value assets of the
bankrupt banks.
• Bernanke opened up the empty treasury and also opened up largest currency printing press in
the world, working 247365 or 24 x 7 x 365 (24 hours a day, 7 days a week and all 365 days a
year) Never before in the history of United States, the dollar was printed with such intensity
and also disappearing with the speed of hurricane category 6 into a giant black hole

No foreigner in right frame of his mind would at this point of time buy US dollar against his
own currency, be it Euro, Pounds, Yen, Yuan, Aussie Dollar or any damn local currency.

With Dow falling, bonds collapsing, properties dumping, interbank dealing sine die, who is buying the
US dollar? Why Euro, the most alternative currency for US dollar is falling, when it should have gone
to almost magic 2.00 figure?

If any foreigner wants to buy stocks or bonds or $ class assets, he has to sell his own currency and
buy $. Then only $ could go up. But when the foreigners are not buying $, in fact they are dumping
dollar assets. In that case who is buying this bankrupt dollar?

About 10 years ago, whenever Dow rose, dollar also used to rise, because foreigners have to buy $
first before buying stocks or bonds. For the last 5 years, especially in last 3 years, dollar is falling
while the Dow and Bond rising. This means that there is no demand for $ from overseas, it is only
from within. The dollar so printed by FED is being used to manage (or manipulate) various sensitive
commodities like Oil and other foreign currencies like Euro.

Who is Buying Dollars, Why and How?

Of course, the Americans by themselves. Not the ordinary resident Americans. They are just naïve
and innocent law abiding citizens. The crooks are in the corporate world.

Some US institutions, in US and newly floated off shore corporate entities, under the ostensible
authority from US administration, are now buying US$ index and shorting Oil heavily on NYMEX.
They appear to have been commissioned to search and destroy the vicious circle of oil price rise
which is the major cause of inflation.

This is similar to the practice being adopted during the days of Clinton Administration when the
Rupert Rubin was the Treasury Secretary. He was a proponent of strong dollar policy, and during his
administration, the Asian crisis unfolded, Enron was created and busted, LTCM with over $1 trillions
of exposure to the market was bankrupted. His policies and practice were known as “Rubinomics”. He
engineered the rescue package for LTCM with the help of local and foreign banks and brokers,
raising $ 3.6 billions initially to $26 billions

After 15 months, this group was disbanded saying that the problem was resolved. Even the best fund
manager in the world, can not generate the return of $ 1 trillions or $1000 billions with meager $26
billions of fresh capital, that is, whopping 3846% return in 6 months of 7692% annualized. Show me a
single fund manager in the world, including George Soros and Julian Robertson (now dead). The
losses of $ 1 trillion are still in the system under various names and disguises.

However, both futures contracts are subject to physical delivery. So on settlement day, these
contracts are reversed by covering the short position in oil, and liquidating the long position in $. This
Copyrighted @ Kalidas Hong Kong – 2008
From the Mind of Kalidas 3

is why during September settlement, there was vicious move to cover the “oil shorts” against $ index,
with the result that oil prices spiked up by over $25 in a single day, and dollar slumped against the
major constituent currencies like Euro. The contracts were rolled over to October/November by selling
the Oil futures again, and buying the $ index. Euro weakened on the following day of its steep rise
due to such roll over, and oil fell from $130 to $106 again in just under 2 days.

Another ENRON in the making, this time 20 times larger…

In short, Rubinomics is back. The banks used in these cases appear to be same old players who
were and are close to the US administration – CITI, JPMC and BOA. The brokers are also same as
before, Goldman Sachs except Salomon Brothers this time which has been bankrupted before in
LTCM saga.

The similar situation will develop again with OPEC starting to control the spot market by curtailing
production. They already reduced by 500,000 barrels per day. At least that part can not be controlled
by the US institutions.

Both Rupert Rubin, former Treasury Secretary and Hank (Henry) Paulson, present Treasury
Secretary, who just got the blanket authority to spend $ 700 billions whenever and wherever he wants
with no questions asked or for any sort of accountability, are from the only surviving Broker –
Goldman Sachs. It is obvious that part of this loot will go to his former colleague to cause the
collapse of Oil prices and Euro, British Pounds, Commodity currencies like Aussie dollar, South
African Rand, Canadian dollars and Russian ruble.

Copyrighted @ Kalidas Hong Kong – 2008

From the Mind of Kalidas 4

Myth & Reality of Oil Prices… The Theory of Demand & -Supply Imbalance is obsolete for time being..
When the giant economy in corporate world or Central Banks (Fed in USA) or Treasury department,
became very creative (manipulative in layman’s terms) in accounting, and they in the name of
“financial engineering” go on inventing methods or products and use any means.

It may be noted that –

• Oil prices started falling from July onwards. US$ too started climbing from July Onwards
• The oil prices falls and dollar climbs (euro, GBP, Yen, etc falls) in beginning of month
• The position reverses on settlement day due to physical settlement requirements
• This is why there was sharpest rise in Oil by $25 in a day, and $ fall steeply same way
• After roll over into November settlement, the oil prices fell again and US$ rose
• Many honest people believe that rise in oil prices Vs dollar was due to rising demand of oil
from emerging economies like China and India. They also believed that recent fall in oil prices
were due to fears of recession and demand destruction. These are naïve and puritan people
who believe that the world is as pure as gold
• In reality, we are living in a murky world. No real demand or supply – just paper trading of
derivatives and futures – that determine the prices. The entire dollar and oil market is
dominated by powerful nations in the Middle East and United States.
• Off shore entities may have been used in more than 50% of cases to avoid any scrutiny. The
funding of $ index is arranged by 3 of top 5 banks in United States

In my opinion, there was no reason for oil prices to go to $145 due to excess demand from China and
India. Their consumption is a tiny part of what United States consumes. The prices were going up
due to some nations’ collective efforts to punish the United States for its crime in Islamic world.
Similarly, the recent fall in Oil prices and rise of dollar was due to the game of poker being played by
United States.

Most of the Economists only know theories. They

never had enough education on the front line of the
markets. There is a saying that “Everything is fair in
Love and War”. In today’s world, we are in the middle
of intense financial war of unimaginable proportion. So
do not ask any questions. This is why Henry Paulson
got the diplomatic immunity for spending $700 billions.

It is therefore very likely that a man worth $700

millions, armed with $700 billions, with diplomatic
immunity, and his dear firm Goldman Sachs at his
service, the world may be facing lot of unexplainable
conduct in the financial market like UFO in physical
science.

Copyrighted @ Kalidas Hong Kong – 2008

From the Mind of Kalidas 5

States and Local Governments’ debilitated finance and their renewed demand.
Almost all 50 states, local governments and
municipalities are near breakdown due to
lack of finances. They collectively need
$200 billions to keep their government
running. Jefferson County is near bankrupt.

Even a state like New York has to raise

funds paying interest @9%. There are many
who find difficult to retire maturing bonds
without paying 12% to 20% on renewals.

If the state machineries break down, sewers

start overflowing and the trashes left
unclear, the health conscious and puritan
Americans may react very sharply.

This time around the protests may not stop peacefully, but
may degenerate into violence. This is the greatest risk that
the US Administration faces.

Only yesterday, the strongman Arnold Schwarzenegger, the

Governor of California, having found his budget delayed for
several days, raised a demand of $7 billions before Paulson
who has $700 billions in his kitty now.

He will ask - why would not you give me $7 billions for the
worthy cause of managing my sunny state, when you are
trying to pump in 100 times more into the bankrupt banks
and brokers? If you can print $700 billions for them, why not
print $300 billions more for the states for much desirable
cause?

Kalidas, Hong Kong

6-Oct-2008

Copyrighted @ Kalidas Hong Kong – 2008

From the Mind of Kalidas 6

Who is Kalidas?
Hi, everybody. Kalidas is the screen name of Anil Selarka from Hong
Kong, one of the most vibrant city in the world, be it as an entertainer;
business, money or free wheeling center or an ambassador of China, call
it what you like. Hong Kong is a Rainbow of all cities – colorful, musical
or soulful. Make it a point to visit this city.

Kalidas is a well qualified with a degree in Science, Law, Banking and

Cost Accountancy (in part). He was an International banker for 19 years
followed by 16 years of stint as stockbroker specializing in US Stocks,
Bonds and Economy, Hong Kong and Indian stocks. A Convertible Bond
specialist, a Bond trader and a problem solver for every kind of financial
situation - good, bad or ugly.

An expert in reading US economy and world economic scene for over 21

years, he has seen through the crashes of 1987, Asian Monetary Crisis
and subsequent crashes specific to Hong Kong and in general to major
world markets.

Kalidas has written a highly researched book called “ Sub

Prime Resolved “ – a comprehensive solution for the
current economic crisis, covering every issue or poser
being asked by practically every interviewer to leading
experts without getting any answer.

There is no one in the world at this point of time, that come

anywhere close to the solution outlined by Kalidas. The
book is rightly called “The Bible for Recovery of United
States of America” to be published soon.

All solutions presently offered in massive $700 billions bail

out will completely fail. Kalidas' solution does not involve
any expenses but create almost $2 trillion income in short
time and further $2.4 trillions in next 3 years. This is
highly imaginative solution that eludes all.

He has extra ordinary sense, almost sixth sense, to

anticipate the major economic events months or years in
advance. He also has special ability to judge the potential
effects of any major events almost instantaneously. An
extremely analytical and logical, he has track record of
being proved correct and right on spot over 95% in last 15
years.

Kalidas has also invented a special theory on numbers, known as Mystical Numbers, that apply incredibly to
every market with great accuracy – be they stocks, bonds, currencies, commodities, properties, retail stores,
fish and vegetable markets, and in every form of business or personal life. The ordinary people are unable to
follow chart or its technical jargons like MACD, Head & shoulders, Moving Averages, Support, resistance etc.
However, they can understand simple numbers any where, every where. This is where Kalidas excels. He is
currently writing a book on this subject that may be published in April 2009.

If you happen to read Kalidas book or his blog, please send your comments to kalidasji@gmail.com . He will
endeavor to improve quality of his work day by day with your valuable feedback. –Kalidas’ blog link is
http://anilselarka.wordpress.com/

With Regards and Greetings to you and your lovely family.

From the Mind of Kalidas.

Copyrighted @ Kalidas Hong Kong – 2008