Printing money or quantitative easing, if you will, when allowed to get out of hand, which it now has, always gets very very bad.
Tag Archives: BRICS World bank
Judgment Day for the Euro is here!
The Euro & The Waterfall Projection
The interesting part, after the economics, is about half way down when Martin talks about the results of what he shows. Comment by Centinel2012
We have not seen a Waterfall Projection on any market in years. All of a sudden, it showed up in Euro and in Oil. Those who have been with for decades will notice that the projection for the high was virtually a perfect formation at the top of the circle based upon the Pi derivative. That meant we should have then stayed within the circle forming that sharp curve (Waterfall) that will then rush to the bottom of the projection.
The confirmation that the forecast would be spot on came the week of June 9th, 2014 when the Euro turn NEGATIVE on a Energy models. The inability to mount a recovery warned that the Euro was in a real FREE-FALL to complete the Waterfall.
The fascinating aspect about Socrates is how it picks wars and political elections that are reflected in the price movement without any fundamental analysis. Tomorrow, we have Judgment Day – the Greek elections on Europe.
If the polls are accurate, Greece is on the verge of electing the first anti-austerity party in the Euroland. If that happens, Greece’s future will once again be uncertain and we can bet on increased volatility in the months ahead. Our model is warning that there are critical points here. A simple yearly closing below 116 is confirmation of a bear market. Then our targets were 113, 105, and 85. The collapse to 1.1115 with the closing at 1.1209 was longer-term bearish. However, this does not imply a further immediate collapse. A closing below 105 was needed for that.
But the election will be judgment day on how Europe will survive long-term. This financial and economic crisis is the result of academics and lawyers assuming that power can merely dictate to the free markets. Sorry, the Russian had to figure that one out for itself. Centralized government economic planning just does not work. Their own self-interest prevents economic management from working.
The Greece has been bailed out with €240bn (£188bn) from the EU, the ECB and the IMF. But the economy has shrunk by 25%, unprecedented in the modern era. Why? Because these morons just have NEVER understood currency and capital flows. Converting the pre-Euro Greek Debt to euros that doubled, caused their national debt to double in “real” terms and then they suddenly have seen their economy strip-mined. If the Greeks do not pull out of the Euro, we will see civil war erupt there by 2017.
Many Greeks believe they have been assigned to a laboratory for austerity. The despise the Germans and rightly so. The Germans remain fighting their last nightmare – hyperinflation. They do not understand what took place and simply assign its cause to an increase in money supply when it was a revolution in 1918 where Communism was infiltrating from Russia. Capital fled NOT because of money supply increases, but because of the treat of capital seizures. This is like assuming everyone who ever eat a carrot died eventually so the cause must have been the carrot. It was a 100% correlation.
Prime Minister Antonis Samaras, when in opposition, was mistrusted by Brussels and Berlin. He doubted whether cutting spending in the middle of a recession would work and resisted signing up to it. In power, he has essentially followed the script of the so-called troika; the EU, the IMF and the ECB. This has proven to be BRAIN-DEAD and Europe is facing Judgment Day on a grand scale. This is perhaps the greatest fiasco in modern history of the worst possible fiscal mismanagement in record history. Thus, the Euro is at risk of extinction long-term and it will promote separatism and civil war. This is not personal OPINION, this is the correlation of history.
Ukraine Lurches to Full Scale War as Russia Drastically Reduces Gas Supply to EU
And while this goes on Obama plays golf and talks about more freebees and higher taxes.
Putin Strikes Back:
Russia Cuts Off European Gas Supplies, Starts Selling Dollars: “The Decision Has Been Made”
By Mac Slavo
www.SHTFplan.com
January 15th, 2015
Vladimir Putin has been silent lately. But if anyone thought he had been shamed into defeat or marginalized, then think again.
In the last few hours Russia has announced two key strategic decisions that show they are not going to stand idly by while their economy and way of life are destroyed by Western forces.
First, presumably in response to stiff sanctions leveled by the United States and the European Union after the annexation of Crimea last year, Russia has cut off 60% of Europe’s gas supplies right in the middle of winter. This has caused an almost immediate crisis in six European nations that have seen a complete cut-off to their supplies – Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey – with more to follow. According to reports via Zero Hedge, the effect has been almost instantaneous.
Without Russia residents across Europe have no way of staying warm.
Vladimir Putin ordered the Russian state energy giant Gazprom to cut supplies to and through Ukraine amid accusations, according to The Daily Mail, that its neighbor has been siphoning off and stealing Russian gas. Due to these “transit risks for European consumers in the territory of Ukraine,” Gazprom cut gas exports to Europe by 60%, plunging the continent into an energy crisis “within hours.” Perhaps explaining the explosion higher in NatGas prices (and oil) today, gas companies in Ukraine confirmed that Russia had cut off supply; and six countries reported a complete shut-off of Russian gas. The EU raged that the sudden cut-off to some of its member countries was “completely unacceptable,” but Gazprom CEO Alexey Miller later added that Russia plans to shift all its natural gas flows crossing Ukraine to a route via Turkey; and Russian Energy Minister Alexander Novak stated unequivocally, “the decision has been made.”
Russia has taken similar steps in the past because of non-payment but turned the gas supplies back on once deals were reached.
This time, however, there won’t be a deal.
Russia says it will deliver the gas through Turkey, and then it’s up to the European Union to build the infrastructure that will transport it to the rest of the continent, as noted by Bloomberg.
“Transit risks for European consumers on the territory of Ukraine remain,” Miller said in an e-mailed statement. “There are no other options” except for the planned Turkish Stream link, he said.
“We have informed our European partners, and now it is up to them to put in place the necessary infrastructure starting from the Turkish-Greek border,” Miller said.
…
“The decision has been made,” Novak said. “We are diversifying and eliminating the risks of unreliable countries that caused problems in past years, including for European consumers.”
Europe, of course, does not have the necessary infrastructure in place for this, and Vladimir Putin most certainly knew this before he shut off the spigots.
Second, and perhaps even more significant than the overt move to show Europe who’s boss, Putin took a direct shot at the United States.
Also from Zero Hedge:
As Bloomberg reports Russia “may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009.”
These are dollars which Russia would have otherwise recycled into US denominated assets. Instead, Russia will purchase even more Rubles and use the proceeds for FX and economic stabilization purposes.
“Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy.”
Call it less than amicable divorce, call it what you will: what it is, is Russia violently leaving the ranks of countries that exchange crude for US paper.
What we are seeing are the strategic moves that will eventually catalyze the next great war. And make no mistake, this is exactly what’s in store for the world should these escalations continue.
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The Clash Of Civilizations
The death of patriotism
Most of the ones in office now would sell out the country for 10 pieces of silver they are the scum of the earth!
Freedom Is Precious, And Can Be Taken Away In The Blink Of An Eye. Just Look At What’s Happening In Sweden
Sweden is done and its a race to the bottom between all the old countries of Europe, non of which will survive till mid century. The exception could be Germany but that is only a possibility and that is only if the Green’s wake up to what is going on!
Don’t think for a second this can’t happen here. We have a Constitution that is regularly ignored, and an entire mass of people who tell you what you can and cannot say – then call it being “fair” and “politically correct.” Not only could it happen here, we’re already doing it to ourselves.
According to that sourcelink, and this one, a new law in Sweden which takes effect now, will allow people to be PROSECUTED for criticizing immigration. They can also be prosecuted for criticizing politicians’ unwillingness to address immigration.
This is for real, y’all.
Apparently, parliament voted on this issue after a member of the Constitutional Committee, Andrew Norlen, pushed it, claiming it would help deter people from complaining about their country.
He said, “I do not think it takes very many prosecutions before a signal is transmitted in the community that the internet is not…
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“BRICS most important element of global governance”
Today the currency swaps when into effect primarily between Russia and China but other as well and the movement is growing!
Ditching US dollar: China, Russia launch financial tools in local currencies
The end of the dollar dominance is almost over thanks to Obama and his policies!
China To Launch Yuan Swap Trading With Russian Rubles On Monday
If what this post says does happen it will be the end of the Dollar as a reserve currency.
Centinel2012 