This is happened all over Europe. The “refugee” crisis is getting completely out of control. The attempt by Brussels to pretend this is not happening is just insane.
Very good presentation my Still on Jones this is a must watch and go along what A post I did a few weeks ago on Trump with the same
them. A link to my post is here.
How did we get from the world of the early 60’s to where we are now?
This came precisely on our target. This past week was the tipping point for Europe. The start of the real decline in the euro where mainstream capital begins to question when negative rates can really reverse or stimulate the economy unfolds after 2016.202. This comes into play March 13/14, 2016. This is not my personal opinion. This is just the modeling. From this target onward, we will begin to see a crisis in confidence. Part of this will no doubt be the BREXIT vote in June. It is curious that the Prime Minister of Hungary Viktor Orbán chose our precise target to effective thrown the gauntlet down against Brussels. He states bluntly, that there is no freedom in Europe if we can’t speak the truth that this is not a refugee crisis, but a migration crisis.
We are entering a period of major political change. This is being driven by the economy and this is what has driven our forecasting models. This is by no means a personal opinion or a desire on my part to see some sort of upheaval. The entire purpose of providing this type of forecasting is to PROVE that when you mess with the economy, you create chaos that can lead to revolution domestically as well as international war.
The US press have adopted a new agenda. There were quiet phone calls being made that complained they created Trump by giving him too much attention. So what we say in headlines for Super Tuesday was this precise shift in the press away from Trump and to lead the story with Hillary. It will not be until June when we reach the California primary where it is a winner take all battled for 172 delegates.
In Germany, the right wing has captured the popular vote. The leader of Germany’s right wing Alternative for Germany Party (AfD) is Frauke Petry and she is celebrating huge gains in three regions. This is the beginning of the end for Chancellor Angela Merkel following the refugee crisis.
In Britain, the get out of the EU (BREXIT) is moving into high-gear. People are out and about handing out leaflets that basicly say if you want to be part of the EU, then cross the channel and join them.
BREXIT is right on schedule. Britain only joined in 1973. The interesting aspect has been that people are pointing to Switzerland as the example that you can be outside the EU and not just survive, but flourish.
Of course, not even the Swiss people are away that their political leaders had filed a petition to join. Why not. They surrendered all sovereignty to Brussels over banking, ending their secrecy laws that were imposed because Hitler had also made it a crime to have money outside of Germany like FATCA does to Americans. So ever so quietly, Switzerland’s National Council voted to withdraw an application to join the EU.
So we are indeed just 4 elections away from complete chaos. (1) BREXIT, (2) US Presidental Election, (3) Germany Election, and (4) the French elections.
The concept of Free Trade is very simple but it is found nowhere on the planet today and for most of the past as well; and a hard fact is that if a federal government is involved even a little bit you can bet your bottom dollar there is no Free Trade. Free Trade means that ever transaction is a negotiation between the two parties which are the buyer and the seller for a greed to price in some currency for a good or service in a different country.
So let’s set up a two country world model country A the USA and country B China. The buyer in country A gets the goods and the seller in country B gets the currency. Where things get sticky is what does the seller do with the currency he gets, dollars in this case, since he can’t spend it in his country? Well you say he takes it to the bank and converts it into the currency the seller uses, Yuan in this case, at some specified exchange rate; but that doesn’t solve the problem it just transfer it to the bank. The bank will hold the dollars for a time as the bank knows that a buyer in the banks country will need the Dollars they are holding to buy something in the USA at some time in the near future. Now so long as the need for Dollars and Yuan are proportionally equal, say one Dollar for one Yuan the trading system is in balance and we have Free Trade; meaning at the end of the year the bank has no dollars or yuan in its trading account.
Now we add a complication to the analysis which is what does the bank do if at the end of the year it has a balance of dollars, a surplus, which were not needed? Well since we are still in a Free Trade situation the bank could reduce the exchange rate making the Dollars cheaper vis-a-vis the Yuan say two Dollars for one Yuan which makes the USA goods 50% cheaper. So the demand for dollars goes up and more USA goods are purchase and the system is back in balance. So there is a method to insure that the trade is in fact free; meaning free of government interference i.e. tariffs, customs inspections, fixed exchange rates and various standards and quotas.
What the cleaver Asians have figured out, first the Japanese, is that the American politicians are stupid and corrupt and like buying votes with free things to the poor. But to get the money for paying for the free things (someone does have to pay) they would need to tax the rich and since they are the rich that wouldn’t work so well so they needed another way to get the money that they could blame on others, evil companies. In the previous example we had a surplus of Dollars in China being held by the bank and so in this example the Chinese government took the Dollars from the banks at the previous rate of one Dollar per one Yuan so they now had the dollars. Now the cleaver part was that they didn’t buy goods in the USA they bought US Treasuries, basically they were leading their Dollars to the US Government. And our government was glad to get them as it gave them more money to buy free things for the masses. However there was a price this system made it almost impossible for the US companies to compete in China; and worse it made the Chinese goods so cheap that they had to start buying their parts from China. This system is not sustainable as there are only so many jobs that can be shipped to China and at that point they will have trillions of Dollars in their hands and they will end up buying the country with it.
We are now in a political a system, not an economic system, where we get cheap goods and in return we ship them our jobs. No sane government would ever do this as it can’t last very long and at some point there is no returning to the old system, and we are almost there.
There has been a major political uprising in Germany. For the first time, the Green Party has beaten the establishment in Baden-Württemberg. I have been warning that Trump is not some freak show. This is a global uprising we are watching in politics as we head into 2017 – the year from Political Hell. We are indeed, only three major elections away from perhaps the revision of NATO, the fall of the European Union, and the end of the socialist world order as we have know it. We have not just the US election, we have Germany, France.
Then we have this June and the British Exit vote which is actually the first. If Britain votes to leave, the EU is finished. If they vote to stay, Britain is finished and going down with the EU as the Muslim refugees pour in for free healthcare and welfare, and perhaps a few good looking girls as a bonus. This is like two guys walking in the field in Rockies. Suddenly they see a mountain lion. One quietly slips on his running shoes. The other looks at him and asks: “Do you really think you can out run him?” His friend replies: “No. I just have to outrun you.”
The central bankers are simply crazy, not evil. They are trying to steer the economy by utilizing this simpleton theory that if you make something cheaper, someone will buy it. Japanese and German cars managed to get a major foothold in the U.S. because the quality of U.S. manufacturers collapsed, thanks to unions. The socialist battle against corporations forgot something important – the ultimate decision maker is the consumer. The last American car I bought in the 1970s simply caught on fire while parked in my driveway. Another friend bought a brand-new American car and there was a terrible rattle. When they took the door panel off, there was an empty bottle of Coke inside. Cheaper does not always cut it. Gee, shall we cheer if the stock market goes down by 90%? It would be a lot cheaper. Why does the same theory not apply?
Then we have the trading public. If the central bankers have gone crazy with this whole negative interest rate theory, then the public is simply out of their minds. The euro rallied because Draghi cut rates further, extended the stimulus another year, increased the amount by another 33%, and then declared rates would stay there for years to come. And these insane traders cheer. Unbelievable! They are celebrating the public admission of Draghi that all his efforts to date have failed, so let’s do even more of the same. And they love this nonsense? Negative interest rates have become simply a tax on saving money and the stupid traders and media writers love it. The Fed tries to raise rates and they say – NO! This is a stunning combination of admission and stupidity that one would expect from a pretty but clueless girl and her drunk college boyfriend who can’t say no to any girl:
“I asked John if he slept with Karen and got his admittal!”
“Oh that’s cool, I think it’s probably about time you stopped drinking.”
All they see is that lower interest rates “should” stimulate but ignore the fact that they never do. They are too stupid to grasp the fact that raising taxes cannot be offset by lower interest rates. People judge everything by the bottom-line and not some crazy theory that just stupid. A simple correlation study by a high school student in math class would prove this theory does not correlate to expected outcome. And we cheer this insanity confirming our own overall stupidity and one is left wondering who is crazier? I suppose it is just that central bankers are crazy and the public, as well as the media, are just out of their minds.
It reminds me of the old TV commercial by Wendys:
Ever since the Cologne sexual assaults by the refugees, things have gotten far worse in Germany. The press tends to still hide the crisis. Nevertheless, drawing only from German media reports which have made it to the public, a list documenting more than 160 instances of rape and sexual assault committed by refugees in train stations, swimming pools and other public places against victims as young as seven have been eye-opening to say the least. This is going to have a profound impact in the German elections next year but it is also tearing Europe apart and pressure builds to close borders to prevent these people from spreading out from Germany to the rest of Europe.
The New York-based conservative think tank Gatestone Institute has compiled a shocking list of sexual assaults and rapes by migrants in Germany in just the first two months of the year. This is stunning to put it mildly. Merkel does not appear to be able to survive this crisis.
Then nearly everyday some knife attacks among refugees are reported in the Austrian press. We have Africans against Arabs and those from Chechnya are against Afghanistan. In Austria, the general public is becoming terrified to even walk outside in many areas.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
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