Analysis of Global Temperature Trends, July, 2017, what’s really going on with the Climate?


The analysis and plots shown here are based on the following two data series. First NASA-GISS estimates of a global temperature shown as an anomaly (converted to degrees Celsius) as shown in their table Land Ocean Temperature Index (LOTI) and shown in the following Chart as the red plot labeled NASA. This plot is shown as a twelve month moving average to minimize the large monthly swings and better show trends; the scale for the temperatures is on the left. Second NOAA-ESRL Carbon Dioxide (CO2) values in Parts Per Million (PPM) which are shown in the following Chart as a black plot labeled NOAA. This plot is shown exactly as the data from NOAA is presented and there is no need for a moving average the scale for CO2 is shown on the right.

NASA published data as stated in the first paragraph is shown as an anomaly, but what is a temperature anomaly?  An anomaly is a deviation from some base value normally an average that is fixed. There were two problems with the system that NASA picked which were number one there is no “actual” global temperature and two since climate is a variable there cannot be a real base to measure from. NASA known for its science and engineering expertise back in the day thought it could get around these issues and created a system to do so. First they developed a computer model which took readings from all over the planet and made significant adjustments to them called homogenization and came up with the estimated global temperature. Second they picked the period 1950 to 1980 (30 years) and averaged the values and came up with 14.00 degrees Celsius and make that their base.  Then they took the calculated temperature and subtracted the base from it which gave them the anomaly. The problem is that both the base and the anomaly are arbitrary.

Now that we have a base to work with we are going to add to the previous Chart three things. The first is a trend line of the growth in CO2 since that is the entire basis for climate change according to the government through NASA and NOAA. That plot is superimposed over the black plot of the actual NOAA CO2 values as the cyan line labeled as the CO2 Model and one can see there is a very good fit to the actual NOAA values so there should be no dispute about its validity.  This plot allows us to make projections to future global temperatures according to the projected level of CO2 .  The second added item is James E. Hansen’s Scenario B data, which is the very core of the IPCC Global Climate models (GCM’s) and which was based on a CO2 sensitivity value of 3.0O Celsius per doubling of CO2. This plot is shown here in lavender and is part of a presentation that Hansen showed to congress in 1988 when the UN was about to set up the International Panel on Climate Change (IPCC) and this plot is labeled as Hansen Scenario B which Hansen stated was the most likely to happen based on his theories’.  The third item is the current plot of the most likely temperature of the planet based on the growth of CO2 published by the IPCC. This plot is shown in Red and is labeled as IPCC AR5 A2 as that is the table where the data was found. This plot is a GCM computer projection of the planets temperature based to the complex relationships developed on the levels of CO2 by the IPCC primarily though NASS and NOAA.

It can be seen in this Chart that the lavender plot and the Hansen plot are very close from 1965 to around 2000 after that, from 2000 to 2014, there is a very large and growing deviation reaching close to .5 degrees Celsius in 2014, which is not an insubstantial number.  Also of note is that there doesn’t seem to be a good correlation between the growth in CO2 and the increase in the planets temperature. The CO2 is going up in a log function and the Temperature was going down in a log function until recently where it reversed in 2015 and is now going up in a log function. That unexplained and major change in temperature direction appeared to have occurred between 2013 and 2014 and is the subject of this monthly paper.

The next Chart is developed from the raw data from NASS and NOAA as shown in the first Chart.  This plot was made first by adding ten years blocks of temperature and CO2 as indicated in the Chart and diving by 120 to give an average for each.  Then the average Temperature was divided by the average CO2 to give degrees of temperature increase per PPM of CO2. After that was plotted it appeared that there were two different curves the first was from block 1965-1974 through block 2004-2014 shown as Black Dots and the second was from block 1995-2004 through block 2005-2016 shown as Black Dashes. When trend lines were added they were both almost perfect fits to the raw data and so you cannot see the data points very well on the Chart.  These blocks were picked to represent the entire period of time where we had both NASA temperature data and NOAA CO2 levels.

On the following Chart are two sets of color coded information. The first is Cyan plot and the Cyan box with the equation in it along with the R2 value of 1.0 are for the first series from block 1965-1974 through block 2004-2014. The other is the Red plot and the Red box with the equation in it along with the R2 value of 1.0 which are for the first series from block 1965-1974 through block 2004-2016. We can speculate on how this change has happened but it cannot be said that the plot change is not real; however additional data over the next few years will be required to actually prove that something has changed.

In summary the Cyan data set indicates a diminishing effect of CO2 on global temperature for about 54 years and the Red data set represents an increasing effect of CO2 on global temperature for the past 2 years. Since both data sets have an R2 value of 1.00 the trend lines cannot be in question.

Before we get into a possible explanation to the drastic change from the Cyan data to the Red data that occurred in 2014 we need to consider other factors than CO2 on Climate change.  The fault that occurred in the work that was done in the 1980’s was in assuming that there was an optimum or constant global temperature and therefore any change that was being observed was from the increasing amount of CO2 in the atmosphere.  There may have been correlation but it was never proved that there was causation (high R2 value) between CO2 and global temperatures. With that assumption, which limited options, we moved from true science into the realm of political science.  True science has an open mind and finds relationships that work in matching observations with predictions.  Political science changes history and/or facts to match the desires of the politicians. Since the politicians control the money political science is what we get; which means that what we get may not be technically correct.

A decade ago when I started looking at “climate” change the first thing I did was look at geological temperature changes since it is well known that the climate is not a constant; I learned that 52 years ago in my undergrad geology and climatology courses in 1964. The next paragraph explains currently observed patterns in climate related to this subject and is historical accurate.

Ignoring the last Ice Age which ended some 11,000 years ago when a good portion of the Northern hemisphere was under miles of ice the following observations give a starting point to any serious study on the subject of climate. First, there is a clear up and down movement in global temperatures with a 1,000 some year cycle going back at least 3,000 to 4,000 years; probably because of the apsidal precession of the earth’s orbit of about 20,000 years for a complete cycle. However about every 10,000 years the seasons are reversed making the winter colder and the summer warmer in the northern hemisphere. 10,000 years from now the seasons will be reversed again. Secondly, there are also 60 to 70 year cycles in the Pacific and the Atlantic oceans that are well documented. These are known as the Atlantic MultiDecadal Oscillations (AMO) in the Atlantic and as La Nina and El Nino in the Pacific. Thirdly, we also know that there are greenhouse gases such as carbon dioxide that can affect global temperatures. Lastly the National Academy of Sciences (NAS) estimated that carbon dioxide had a doubling rate of 3.0O Celsius plus or minus 1.5O Celsius in 1979 when there were only two studies available and one for sure and maybe both were not per reviewed.

The result of looking objectively at the three possible sources of global temperature changes was a series of equations based on these observations that when added together produced a sinusoidal curve that seemed to follow NASA published temperatures very closely when first developed in 2007.  Since this curve was based on observed temperature patterns it was called a Pattern Climate Model (PCM) which has been described in previous papers and posts on my blog and since it is generated by “equations” many assume it is some form of least squares curve fitting, which it is not. It does seem to be related to ocean currents where the baulk of the planet’s surface heat is stored.

As can be seen in the following Chart the PCM has a 69.1 year cycle that moves the trend line up and then down a total of 0.29O Celsius and we are now in the downward portion of that trend (-.01491O C per year) which will continue until around ~2035.  This short cycle is clearly observed in the raw NASA data in the LOTI table going back to 1880. Then there is a long trend, 1036.7 years with an up and down of 1.65O Celsius (.00396O C per year) also observed in the NASA data. Lastly, there is CO2 currently adding about .0079O Celsius per year so together they all basically wash out at -.0039O C per year, which matched the current holding pattern we were experiencing until 2014. After about 2035 the short cycle will have bottomed and turn up and all three will be on the upswing again duplicating what was observed in the 1980’s.  Note: the values shown here are only representative as the actual model uses many more places than what are shown here.

When using the 12 month running average for global temperatures up until 2014 the PCM model was within +/- .01 degrees of what NASA was publishing in their LOTI table since the early 1960’s as shown in the next Chart. Further the back projection of the PCM plot matched historical records and global temperatures going back past the time of Christ. It should also be consider that geologically CO2 levels have reached levels many times that of the current 400 ppm without destroying the planet so the current hysteria over the current small numbers can only be explained by political science not real science.

The nest step in this analysis is to put all of the known data and projections into one Chart which will contain: NASA’s table LOTI global temperature estimates, NOAA’s actual CO2 values, the CO2 model projections, the PCM model global temperature plot, Hansen’s Scenario B 1988 global temperature plot, and lastly the IPCC AR5 A2 global temperature plot. With that done we can look at the results and try to make some sense of what is going on with the various arms of the federal government that are promoting that carbon based fuels be eliminated since they are responsible for the global temperature level  going up.  As previously started when the government pours money into the sciences the sciences respond with technical papers the support the governments views, this is what I call political science verses real science as was done prior to the 1980’s; money talks and BS walks as everyone on the street knows.  This Chart views a good overview of the current situation showing all the facts and all the projections.

This Chart contains no manipulation of the data and the only change that was made was to convert the NASA anomalies back to degrees Celsius to make it more readable to lay people.  This is only a change in units and has no bearing on the look.  A subject not broached here is that of the NASA homogenization process itself and the base period from 1950 to 1980. The portion in the black circle contains the NASA base period of 14.00 degrees Celsius and the reason it’s brought up here is that the Homogenization process causes the global temperatures to move around since the entire data base all the way back to 1880 is recalculated each month.  But since the base has to stay at 14.00 degrees Celsius the program must be set to not allow changes in that period of time. I’m sure the programmers have fun with that. Prior work here has shown how this creates a teeter totter effect with the data plots, some of which have recently been significant.

The next Chart will be a look at the period from 2010 to 2020 so we can see the detail of the past few years where a change in CO2 of only a few ppm has caused a major change in the global temperature way beyond anything previously shown in any published NASA data. There are two black ovals on the Chart one at the top of the Chart which is a black oval around the CO2 levels for 2012, 2013, 2014, 2015 and part of 2016 and it’s very obvious that there has been very little change, maybe 7 ppm or about 1.9%. Then at the bottom of the Chart is another black oval around the NASA global temperature levels for 2012, 2013, 2014, 2015 and part of 2016 and its very obvious that there has been a very large change, almost .50 degrees Celsius or about 3.1%. There has never been such a large increase in temperature from such a small increase in CO2.

By contrast the previous comparable period of the last part of 2010 through 2013 shows about the same increase for CO2 at 1.1% but no increase for global temperature but actually small decrease. Worse it appears that this current strange upward trend will continue as the values shown here are based on a 12 month moving average and the current values being published by NASA have been very high for the past 7 months and therefore I would expect the NASA plot to be well over 15.00 Celsius within a few months and certainly before the end of 2016 and that is exactly what happened. After COP21 the need for Fake Warming was no longer needed and so we are now seeing a downward trend developing. With the new administration we may see the end of data manipulation from NOAA and NASA and a return to real science political science.

In summary, the IPCC models were designed before a true picture of the world’s climate was understood. During the 1980’s and 1990’s CO2 levels were going up and the world temperature was also going up so there appeared to be correlation and causation. The mistake that was made was looking at only a ~20 year period when the real variations in climate all move in much longer cycles of decades and centuries.  Those other cycles can be observed in the NASA data but they were ignored for some reason.  By ignoring those trends and focusing only on CO2 the models will be unable to correctly plot global temperatures until they are fixed.

Lastly, the next chart shows what a plot of the PCM model, in yellow, would look like from the year 1400 to the year 2900. This plot matches reasonably well with recorded history and fits the current NASA-GISS table LOTI data, in red, very closely, despite homogenization.  I understand that this model is not based on physics but it is also not true curve fitting. It’s based on observed reoccurring patterns in the climate. These patterns can be modeled and when they are, you get a plot that works better than any of the IPCC’s GCM’s. If the conditions that create these patterns do not change and CO2 continues to increase to 800 ppm or even 1000 ppm than this model will work well into the foreseeable future.  150 years from now global temperatures will peak at around 15.750 to 16.000 C and then will be on the downside of the long cycle for the next ~500 years.

The overall effect of CO2 reaching levels of 1000 ppm or even higher will be about 1.50 C which is about the same as that of the long cycle.  The Green plot on the Chart shows the observed pattern with no change in CO2 from the pre-industrial era of ~280 ppm. CO2 cannot affect global temperatures more than 1.500 C +/- no matter what the ppm level of CO2 is. The reason being that the CO2 sensitivity value is not 3.00 per doubling of CO2 but under 1.00 C per doubling of CO2 as shown in more current scientific work.

The purpose of this post is to make people aware of the errors inherent in the IPCC models so that they can be corrected. 

The Obama administration’s “need” for a binding UN climate treaty with mandated CO2 reductions in Europe and America was achieved as predicted at the COP12 conference in Paris in December 2015. To support this endeavor NASA was forced to show ever increasing global temperatures that will make less and less sense based on observations and satellite data which will all be dismissed or ignored.  Within a few years the manipulation will be obvious even to those without knowledge in the subject, but by then it will be to late the damage to the reputation of science will have been done.

In closing keep this in mind. The current panic generated by the government using political science is that the current global temperature of around 15.0O Celsius is an increase of 7.14% from the 1960’s when the global temperature was 14.0O Celsius; and that does seem like a lot. However those views would be in error as the actual increase in thermal energy, as measured by temperature, would be only .35% because we must use Kelvin not Celsius when working with heat energy. When we use kelvin the temperature goes from 287.15O K to 288.15O K which is only .35% not 7.14% about 1/20 of what is implied by the IPCC.

 

Sir Karl Raimund Popper (28 July 1902 – 17 September 1994) was an Austrian and British philosopher and a professor at the London School of Economics. He is considered one of the most influential philosophers for science of the 20th century, and he also wrote extensively on social and political philosophy. The following quotes of his apply to this subject.

If we are uncritical we shall always find what we want: we shall look for, and find, confirmations, and we shall look away from, and not see, whatever might be dangerous to our pet theories.

Whenever a theory appears to you as the only possible one, take this as a sign that you have neither understood the theory nor the problem which it was intended to solve.

… (S)cience is one of the very few human activities — perhaps the only one — in which errors are systematically criticized and fairly often, in time, corrected.

 

Global Warming is All Fake Nobel Laureate Says its Just a Religion


Sir Karl Raimund Popper (28 July 1902 – 17 September 1994) was an Austrian and British philosopher and a professor at the London School of Economics. He is considered one of the most influential philosophers for science of the 20th century, and he also wrote extensively on social and political philosophy. The following quotes of his apply to this subject.

If we are uncritical we shall always find what we want: we shall look for, and find, confirmations, and we shall look away from, and not see, whatever might be dangerous to our pet theories.

Whenever a theory appears to you as the only possible one, take this as a sign that you have neither understood the theory nor the problem which it was intended to solve.

… (S)cience is one of the very few human activities — perhaps the only one — in which errors are systematically criticized and fairly often, in time, corrected.

Is the Stock Market Really Overvalued?


All we have been hearing since 2011 is how the stock market is going to crash and then there will be hyperinflation and all sorts of strange relationships that never materialize. They simply focus on the level of the stock market in nominal terms without adjusting it for inflation or showing how it has performed relative to the rest of the economy. Here is a chart of the stock market expressed as the total value of shares traded annually as a percent of GDP. Sorry, this illustrates that the retail market is not in crash mode just yet and it is still nowhere near the overbought levels of 2007.

This chart also reflects the crisis we have in liquidity. The more government tries to also regulate banks, they have been withdrawing from proprietary trading and we find the trading volume has been shrinking.

Government manipulates the statistics to always try to reflect that everything is OK and they are doing a fantastic job. Here is the ECB’s assessment of liquidity trying to pretend it’s back to normal. Real liquidity is HALF that of 2008 yet the ECB’s the Financial Market Liquidity Index is a complete fraud for it simply measures the spread between bid and ask and not the volume traded. The Index combines eight individual “liquidity” measures based upon their definition. Three of them cover bid-ask spreads: (1) on the EUR/USD, EUR/JPY and EUR/GBP exchange rates; (2) on the 50 individual stocks which form the Dow Jones EURO STOXX 50 index and; (3) on EONIA one month and 3 month swap rates. Three others are return-to-turnover ratios calculated for: (4) the 50 individual stocks which make up the Dow Jones EURO STOXX 50 index; (5)

Honestly, the bid ask spread can narrow and let a panic start and that will quickly vanish as market-makers withdraw. There is far less depth to the markets today than before back in 2007. A return on investment also means nothing with respect to liquidity.

So as long as we have analysts relying upon government statistics without thinking about their construction, this is really the blind trying to lead the blind. What a joke!

Ulterior Motives – Ford Offers Cash for Clunkers Program in U.K…


An interesting press release from Ford Motor Co. operations in the U.K. as they announce financial incentives (additional $2,500) to trade in old vehicles for newer “cleaner” emission vehicles in the U.K.

(Via Fox Business) Ford (F) is offering car buyers in Britain a 2,000-pound ($2,570) incentive to trade in older vehicles for newer, less polluting models.

The offer announced Tuesday is available to new car buyers who trade in vehicles registered before Dec. 31, 2009. The cars will then be taken off the road and scrapped. (read more)

Pay attention to these types of stories within the auto sector.  Watch for these types of “incentives” to cross the Atlantic.  The incentives described here are wrapped around a point of cleaner emissions, ie. “climate friendly” etc.  However, as we have shared the financial branch of the auto sector is in trouble; these incentives appear to be a marketing ploy.

The auto sector, in this example Ford Motor Credit, need to keep turning out new financial products (leases and loans) to cover the deficits of previously issued financial products and the financial gaps within soon to be received via massive lease returns.

There’s an influx of over-leased vehicles coming into the secondary market.  Each of those vehicles returns with a residual financial loss attached (lower value than anticipated).  If the underwriting auto financial system doesn’t quickly turn up additional capital they will not be able to offset the looming losses.

It will be interesting to watch it play out.  The auto-finance system is trying to keep the finance bubble inflated.  Unfortunately the economic odds are not favorable toward their goals.

Understanding the Global Economy


It is becoming painfully obvious that the amount of sheer theft of our forecasts right down to names of publications is escalating unbelievably. I personally fear that these charlatans are only looking to exploit people and could care less what is really at stake. From outright just stealing our track record and claiming they called markets to the day of the 1987 Crash to taking the title of the Great Bull Market in History and calling it their own, are confirmations that they really cannot stand on their own.

None of these forecasts we have made for the past near 40 years was  possible without the largest database ever assembled covering the entire world. Our initial Socrates launch covers about 500 instruments around the world. No individual analyst is capable of forecasting the world without such a database and computer systems designed to do so. There is just far too much for any analyst to watch every single day. And as for forecasting things to the precise day, only the Economic Confidence Model has accomplished that and I myself remain in awe of how the world is so precise. The complexity simply masks the hidden order. This was never my theory that I set out to prove, it is something that I bumped into along the way of just trying to forecast markets for my own trading.

I have advised more governments and been called into more crisis events than anyone I know of. That does not happen out of thin air. Such levels are achieved only with long standing track records that are know to be true over the course of decades.

Anyone taking our targets to stealing our track record claiming they accomplished the same, I warn that such conduct is not that of anyone you should trust. They are simply  charlatans  looking to exploit you for money and when crisis does come, they will be clueless what to advise. This not a game. This is reality. Such people are parasites looking simply to mislead you for profit.

Yellen Reveals She Also Does Not Understand What it all Crashed in 2007-2010


The head of the Federal Reserve, Janet Yellen, has warned politicians against turning back financial market regulation. She has warned that any adjustments to the framework should be discreet. The Jackson Hole gathering turned out to be financially tense. Yellen admonished politicians stating bluntly that this is a question of preserving the “increased resilience of the financial system” through the course of reforms. Some were expecting Yellen to point the finger at lower interest rate monetary policy of past Chairmen, but she did not. She was addressing the issues of regulation reform being suggested by Trump’s people. Indeed, Trump has ordered that the Wall Street reforms of 2010 be reviewed.

Many suspect that Yellen’s speech will be her last. She essentially disagreed with the position of Trump and Congressional Republicans that the regulatory burden is strangling lending and has hamstrung the economy under Dodd-Frank, which gave the financial supervision far greater power, yet remain bewildered and in the dark concerning the causes of the 2007-2010 crash. Trump is absolutely correct that Dodd-Frank cannot truly function properly and it is so far off the mark, it is simply slowing down the economy. Yellen also said in Jackson Hole that some people were obviously forgetting how expensive the crisis had been.

 

The entire regulation took aim at only the results and not the cause of the crash. Nobody seems to really understand just how significant the entire economy was altered when Clinton who was in the pocket of the bakers. By the time Clinton signed the Financial Services Modernization Act, commonly known as Gramm-Leach-Bliley, repealing the key components of GlassSteagall in 1999, nobody on Capitol Hill not even understood Larry Summers, the father of negative interest rates, really understood what he was supporting.

I wrote a full report on how they altered the economy forever changing our banking system from Relationship Banking to Transactional Banking. The arguments how this would reduce risk for banks overturning the regulation of the Great Depression, Glass-Steagall, have gone over the heads of everyone on Capitol Hill and I suspect Donald Trump as well.

There is precious little that anyone seems to comprehend about the core structural changes the Clinton put in place. Even Yellen is operating from an assumption that Dodd-Frank  is good regulation. What it did was put the burden on the people once again and never addressed the structural changes of the Clintons.

There are no mirrors in Washington. If Congress ever dared to look into a mirror they would see what they really are – a bunch of idiots and fools seeking to regulate the economy over which they never comprehend and they lack personal experience to even understand the subject matter.

The bankers argued that Glass-Steagall was holding them back. They were like a child who was asking their parent can they only eat cookies for dinner. The politicians had no idea they were altering the banking system for thousands of years ending Relationship Banking where a bank lent you money for a small business and then they reviewed you quarterly and you handed in your financial statements. The banker kept an eye on you because your loan was on his books.

Clinton changes 5,000 years of banks and gave birth of Transactional Banking where the bank suddenly didn’t care if you would repay your loan because they were selling it to someone else. They should show the movie the Big Short on Capitol Hill and then do a slide show geared for the 3 grade and force ALL politicians, and Yellen, to watch it. Maybe then they might understand what they have really done to the world economy and why economic growth today at 2% is considered a wild boom compared to 8% during the 1980s

Extreme Left & Extreme Right Believe in the Same Thing – Oppress all Opposition


 

paradox-morepowerI have written before that if you go extreme right and extreme left, you reach the same political position with two different thought processes – more state power. With all the press of the Alt-Right since CNN can then attribute that to Trump and call him indirectly a fascist, they will not put the spotlight on the extreme left.

Antifa is a extreme or far-left militant political movement that self-describes itself as anti-fascist groups in the United States. The term “fascist” has been completely redefined and seems to have lost all true meaning to what a fascist used to be. Today, the term seems to refer very loosely to anti-racist, anti-sexist, anti-homophobia, as well as anarchist and anti-capitalist groups. They are definitely closer to Marx than to fascists. Fascism is an authoritarian nationalism, that is characterized by dictatorial power, forced suppression of opposition, and control of industry and commerce. It is not focused on anti-racist, anti-sexist, anti-homophobia. It is focused on military power.

Such systems have always placed the “good” of the state before the worth of an individual. The right to property is subject to constant search and seizure and courts only rule in favor of the state.

Fascism-1

The extreme or far-left militant Anifa groups are often also anti-capitalist, because they are truly closet-Communists. Their methodologies and tactics are far more aggressively violent and anarchistic than those of associated groups in the far right. The interesting distinction between the Alt-Right and this Alt-Left is the former seeks to be left alone individually which they see as freedom whereas the latter seeks to force their dictates upon society and are willing to surrender all rights as long as those they hate are stopped.

Back in is a 1933, Wilhelm Reich wrote a book, The Mass Psychology of Fascism, in which he explores how fascists come into power, and explains their rise as a symptom of sexual repression. I certainly do not agree with his conclusion. Nevertheless, it is a very strange development why such people join fascist organization that on the surface would appear that such groups are against their own self-interest while calling everyone else fascist by redefining the term. It seems to be the same as a rapist who denies he raped a girl saying she really secretly wanted it.

I look at this from an economic approach rather than sexual repression. These are people who blame all their failures upon others and will never take responsibility themselves. This is far more common and it is in fact the core fundamental of how government functions. They will never investigate themselves as a cause of a crash, it must always lie among the capitalists.

Unfortunately, government today is a reflection of the Anifa group’s thinking process but not yet to that extreme. You can see this in the effort to eliminate cash, because we are the problem. There is FATCA, threatening to confiscate the assets of any foreign entity if they do not report what Americans are doing overseas. Again, they do not trust the people. The list is endless of laws more and more designed directly against the people because government has no self-control and always spends more than it has and the problems it runs into is always blamed on the people because we cheat them out of their “fair share” that fills their coffers. They present themselves as if they were a charity there to help the poor. The problem is, their hand is in the cookie jar before anyone else. All that is left is always just the crumbs.

The Overlooked Cost of Electric Cars by EU Gov’t


Government first imposed taxes on alcohol and cigarettes under the claim that they were trying to make people stop for their own good. But as always, as the governments became addicted themselves to the tax revenue, then they looked to tax soft drinks in Philadelphia to prevent people from drink too much sugar, and New York tried to them impose a tax on  electronic cigarettes.  In New York, the Democratic Governor Andrew Cuomo lived up to the Democratic motto – tax everything. Only the fact that the GOP-controlled Senate in New York, the Republicans rejected Cuomo’s plan to tax the liquid used in  electronic cigarettes. Government always pretends to be raising taxes to help people, but it is always a huge lie.

Now all the fuss over the environment and the push to electric cars has a tremendous problem in cities such as how does someone pug in their car when they live in a tall apartment building? But the other side of this coin is the same problem governments have faced with declining revenues from cigarettes.

It seems that nobody publishes a simple statistic to reflect how much taxes on fuel represents in the total budget of the European Union. There is plenty of information on how much tax on fuel countries charge. But when it come to how addicted government is on those fuel taxes seems to be something nobody wants to reveal.

Average price of oil for the last 20 years is 0.98 Euro per litre. In the EU average consumption of petroleum is 12,530,000 barrels a day in 2016. Therefore, taking this very low average price we arrive at the following:

1 BBL = 158.99L

Therefore multiplying this together we get the amount of litres of consumption of petroleum products per day.

1,992,144,700

Multiply this by 365 to give the yearly total

727,132,815,500

Multiplying this by 0.98 (conservative figure of the average price of oil for the last 20 yrs)

712,590,159,190 Euros of sales of Petroleum.

Multiplying this by the average tax rate of approximately 60% of the pump price is taxation, we then arrive at EU countries recoup approximately 427,554,095,514 per year in TAX revenues from fuel. Now let is take that as a percentage of total tax revenue in the EU and we arrive at 427,554,095,514 TAX on petroleum products within 5,877,506,000,000 in total 2015 Tax revenues of all 28 member states, and we finally arrive at 7.27% of total TAX revenues.
The cost of going Green to the state budgets is going to be huge. This will lead to tax hikes in other areas to make up the shortfall. Then add the rise in interest rates and we are looking at the next 4 to 5 years of a true crisis in funding government. We can expect electricity to rise in taxation dramatically and this will impact people in their apartments in cities who do not even own a car.

Gold


QUESTION: Mr. Armstrong, looking at the analysis of Socrates on gold we see that the Momentum is bullish, trend is bullish, cycle trend is bullish, but Long term is bearish, how does that square with your call that Gold is going up to $5,000.00 when the long term is bearish.

Thank you.

ANSWER: Looking very long-term is different from the relevant time frame. Gold has not broken out and I have given the number where that becomes a possibility. We are not yet there. Events on the horizon are the critical issue. The world is not ready yet and the stock market also reflects this pending threshold. Socrates comment is thus concerned with the immediate outlook and until gold gets through key points, there is no breakout. The extreme target is not due on this cycle but the next.

It is Always a Matter of Capital Flows


QUESTION: Do you use astrology as one of your inputs as to cycles? There are, as you most likely know, financial astrologers who have tracked the patterns of planets that co-incide with market movements.

ANSWER: No. I am fully aware that some people use that and I have been told sometimes it lines up with our targets once in a while. Our model is strictly correlating hard data – nothing subjective. Following the movement of capital is the breadcrumbs through the forest.

My personal goal is to step back and let the computer write the reports and forecast the world.