Analysis of Global Temperature Trends, November, 2015 What’s really going on with the Climate?


The analysis and plots shown here are based on the following: first NASA-GISS temperature anomalies (converted to degrees Celsius so non-scientists will understand the plots) as shown in their table LOTI, second 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, lastly, a plot based on an alternative climate model designated ‘PCM’ and based on a sensitively value of 0.65O Celsius.

An explanation of the alternative model designated, PCM, is in order since many have interpreted this PCM model as a statistical least squares projection of some kind. Nothing could be further from the truth. A decade ago when I started this work 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 in my undergrad geology and climatology courses in 1964.

The following observations give a starting point to any serious study. First, there is a clear 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 about 21,000 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. Secondly, there are also 60 to 70 year cycles in the Pacific and the Atlantic oceans that are well documented. Lastly we also know that there are greenhouse gases such as carbon dioxide. 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.

The core problem with the current climate change theory is that the IPCC still uses the NAS 3.0O Celsius as the sensitivity value of carbon dioxide and a number in that range is required to make the IPCC GCM’s work. The problem with using this value is it leaves no room for other factors and hence the need of the infamous hockey stick plots of the IPCC from Mann, Bradley & Hughes in 1999. The PCM model is based on a much lower value for carbon dioxide consistent with current research. This places the value between 0.65O and 1.5O Celsius per doubling of carbon dioxide. If the long and short movement in temperatures and a lower value for carbon dioxide are properly analyzed and combined a plot that matched historical and current (non manipulated) NASA temperature estimates very well can be constructed. This is not curve fitting.

The PCM model is such a construct and it is not based on statistical analyses of raw data. It is based on creating curves that match observations (which is real science) and those observations appear to be related to the movement of water in the world’s oceans. The movements of ocean currents are well documented in the literature. All that was done here was properly combine the separate variables into one curve which had not been previously done, to my knowledge. Since this combined curve is an excellent predictor of global temperatures unlike the IPCC GCM’s, it appears to reflect reality a bit better than the convoluted IPCC GCM’s, which after the past 19 years of no statistical warming have been shown to be in error.

Now, to smooth out highly erratic monthly variations a 12 month running average is used in all the plots. This information will be shown in four tables and updated each month as the new data comes in about the middle of the month. Since no model or simulation that cannot reasonably predict that which it was design to do is worth anything the information presented here definitively proves that NASA, NOAA and the IPCC just don’t have a clue.

Note, starting in late 20014 and continuing to the present NASA has made major changes to the way they calculate the values used in their table LOTI. These changes have significantly increased the apparent global temperatures (political reasons) and these changes are not supported by satellite data; so they are probably not real. For example in the report issued in April 2010 the following temperatures were reported March 2002 102, January 2007 108 and March 2010 106. The current report October 2015 shows March 2002 91, January 2007 97 and March 2010 92 and October 2015 as 104; which makes October 2015 the hotest ever . This paper uses the questionable NASA data since it is all that is available at this time. Prior to this “change” the PCM plot showed almost no error for NASA data as can be seen in the plots posted here last year.

2015-11a

The first plot, UL is a plot of the NASA temperature anomaly converted to degrees Celsius and shown in red with a black trend line added. There has been a very clear reversal in the upward movement of global temperatures since about 2001 and neither the UN IPCC nor anyone else has an explanation for this 13 years later. Since CO2 has continued to increase at what could be argued an increasing rate, this raises serious doubts about the logic programmed into all the IPCC global climate models.

The next plot UR, also in red, shows the IPCC estimates of what the Global temperature should be, based on Hansen’s Scenario B, with the NASA actual temperatures’ subtracted from them. Therefore this plot represents a deviation from what the Climate “believers” KNOW what the temperature should be; with a positive value indicating the IPCC values are higher than actual and a negative value indicating the IPCC values are lower than actual, as measured by NASA. A black trend line is added and we can clearly see that the deviation from expected is increasing at an increasing rate. This makes sense since the IPCC models project increased temperatures based primarily on the increasing level of CO2 in the earth’s atmosphere. Unfortunately, for them, the actual temperatures from NASA are trending down (even as they try to hide the down ward movement with data manipulation) since other factors are in play, therefore each year the gap between them widens. Since we have 13 years of observations’ showing this pattern it becomes hard to justify a continuing belief in the IPCC climate models, there is obviously something very wrong here.

The next plot LL shown in blue is based on the equations in the PCM climate model described in previous papers and posts here and since it is generated by “equations” a trend line is not needed. As can be seen the PCM, LL, and the NASA, UL, trend plots are very similar the reason being that in the PCM model, there is a 68.2 year cycle that moves the trend line up and then down a total of 0.30O Celsius (currently negative .0070O Celsius per year); and we are now in the downward portion of that trend which will continue until around 2035. This short cycle is clearly observed in the raw NASA data in the LOTI table going back to 1868. Then there is a long trend, 1052.6 years with an up and down of 1.36O Celsius (currently plus .0029O Celsius per year) also observed in the NASA data. Lastly, there is CO2 adding about .005O Celsius per year so they basically wash out, which matches the current holding pattern we are experiencing. However within a few years the increasing downward trend of the short cycle will overpower the other two and we will see drop of about .002O Celsius per year and that will be increasing until till around 2025 or so. After about 2035 the short cycle will have bottomed and turn up and all three will be on the upswing again. These are all round numbers shown here as representative values.

The last plot LR in blue uses the same logic as used in the UR plot, here we use the PCM estimates of what the Global temperature should be with the NASA actual temperatures’ subtracted from them. A positive value indicates the PCM values are higher than actual and a negative value indicates the PCM values are lower than expected. A black trend line was added and it clearly shows that the PCM model is tracking the NASA actual values very closely. In, fact since 1970 the PCM model has rarely been off by more than +/- 0.1 degrees Celsius and has an average trend of almost zero error, while the IPCC models are erratic and are now approaching an error rate of +0.5O above expected.

Note: Since I first started posting this monthly analysis a year and a half ago NOAA and NASA were directed make the global temperatures fit the political narrative that the planet was over heating and something drastic need to be done right now. The problem was as shown in this analysis the “real” world temperatures were not at the level that the IPCC GCM’s said they should be. Major adjustments to the data have been made that give the illusion that temperatures are going up even though they are not. However, as this analysis shows even with the manipulation that has destroyed all credibility from NOAA and NASA they cannot get the global temperatures even close to what their false theory claims they should be.

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 move in much longer cycles. 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 would look like from the year 1000 to the year 2300. The plot matches reasonably well with history and fits the current NASA-GISS table LOTI date very closely, despite homogenization. I understand that this model is not based on physics but it is also not 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 into the foreseeable future. 150 years from now global temperatures will peak at around 15.5 to 15.7 degrees 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 between 1.0 and 1.5 degrees C which is about the same as that of the long cycle.

Carbon Dioxide is not capable of doing what Hansen and Gore claim!

2015-11b

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 means there will be such a resolution presented at the COP12 conference in Paris in December. To support this NASA will be forced to show ever increasing global temperatures for the rest of 2015 that will make less and less sense based on observations and satellite data which will all be dismissed or ignored.

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.

 

The Obama administration has started a death spiral of sucking the life blood out of the economy though more and more taxes which will not stop until they have 100% og everything!


The Solution – Debt & Taxes

US Debt 2015 Int Expenditures

QUESTION: Mr. Armstrong; I was given your Solution DVD for Christmas by my son. I just began reading your blog for days. This has been an eye opening experience and it has even opened a dialog with my son. So you can teach old dogs new tricks. So my conclusion is that we can step ahead and that we may not overcome death, but taxes do seem to lead nowhere but more taxes. Do you think they will adopt your solution?

ANSWER: We have sold many SOLUTION DVDs on Amazon. It seems to be a great gift to get others to pay attention. Glad that worked with you. The more people who  watch this and at least enter the debate, the more likely we can see this solution take hold. But keep in mind, this solution would ONLY emerge after we crash and burn and the current system becomes unsustainable.

We are spending per month, even at these low interest rates, over $20 billion in interest per month on average. What happens when rate rise? The system starts to exponentially collapse. Our problem will be that they are increasing taxes and becoming abusively aggressive in tax enforcement, they they are destroying exactly what made the world economy flourish.   But all they care about is holding on to power so they will continue to screw down on society in their own self-interest.

german-debt-int

USIntAsPTotal

It does not really matter looking at debt as a percent of GDP for the GDP includes government expenditures and fails to realize that it is extracting a portion from society to fund itself which wastes productivity since government does not create anything. Therefore, if government is 100% of GDP as in communism, 33% to 50% in socialism, then the debt to GDP ratio becomes delusional. All countries are in trouble because they are operating on a system that is unsustainable.

How you lose money in the market


False Moves & the Force Behind Them

bulls-bears

QUESTION : Mr. Armstrong,
I’ve heard you refer to “the false move”, and have witnessed it myself. I know there is no conspiracy to ruin my day nor deter me from trading. I was just curious, what causes this?

Thank you,
H

PS-Merry Christmas!

ANSWER: The real energy within a market is always to trap the majority for then they lose money and it forces them to cover their position. If 90% of the people are long, then any news can set off the collapse. If you scare the majority, there will be no bid when you try to sell, which results in a flash crash.

Likewise, the lows are made by excessive short positions. Again, something takes place and then the news sparks a short-cover panic. Likewise, because the majority are actually short, they are forced to cover and reverse the position which creates an abrupt swing to the upside.

DJ2731-W False Move

Therefore, markets always make the false move for that is the sling-shot that propels the market in the opposite direction. This is simply the REQUIRED movement of markets to further an important directional change.

We may see that FALSE MOVE yet with a sling-shot on a very major scale. This is the BIG SHIFT that will set the stage for markets to align in order to prepare for what is looking to be the collapse of Western Governments & their Monetary System that is now way out of control. The closings today are an omen of what is to come.

This change will make the next bear market much worse!


NYSE & NASDAQ Ending Limit Risk Orders — You Are On Your Own

NYSE-Shutter

jumper

The New York Stock Exchange and NASDAQ are terminating stop-loss and good-til-canceled orders beginning Feb. 26, 2016. They are claiming risks occur from such orders during volatile trading. They are really admitting that there is a liquidity crisis. Additionally, going after high frequency trading and demanding that they turn over the source code to the proprietary systems will send the smart firms out of the markets. Cancelling these type of orders will only increase the risks for the average investor. The assumption has been that a flash crash takes place, these orders are elected, and then the market recovers. Complaints then materialize with hindsight, as always. Eliminating these types of orders will work in the opposite manner when there is a real decline, for they have the tendency to create a bank of sellers on any bounce and others are carried out bankrupt and unable to get out in a panic. As always, this demonstrates the one-dimensional thinking that screws up everything. This may lead to more jumpers as we saw back during the 1930s.

The IRS Hunts for things to Tax


Maximum Gift One Can Give Anyone in Business is $25

irs-and-capitol

The hunt for money is absolutely destroying everything. The IRS has placed a maximum on the depreciation of assets. Any high-end cars over $40,000 must be paid for with after tax dollars. This will have some impact on the high-end markets. States are already sharing revenue and info. As of January 2014, if you buy a car and have roots in New Jersey and Pennsylvania, you have to pay the higher sales tax; then the dealer has carves it up and New Jersey gets its 7% and 1% goes to Pennsylvania.

States, such as New Jersey, already impose a second surcharge sales tax on any amount over $45,000. They call this the rich man’s tax. You pay the gross sales tax on the full price of the car and then a surcharge on any excess over $45,000.

Now on top of this, the IRS has imposed a $25 limit for ALL business gifts you give directly or indirectly to each person during your tax year. A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. You cannot even buy an employee dinner.

The IRS used an example to explain this on their website:

“Bob Jones sells products to Local Company. He and his wife, Jan, gave Local Company three gourmet gift baskets to thank them for their business. They paid $80 for each gift basket, or $240 total. Three of Local Company’s executives took the gift baskets home for their families’ use. Bob and Jan have no independent business relationship with any of the executives’ other family members. They can deduct a total of $75 ($25 limit × 3) for the gift baskets.”

Today’s market closes are very import to the future of the next several years.


Closings Today will be the Year-End Signals

2015-2016

 

The Holiday Schedule is below. The closing for our models will be TODAY and for the most part this will be a full normal day.

We are hovering around our year-end numbers in many markets from gold and the pound to oil and the Dow, which if it closes lower than last year 17823.07, then there is a risk that we will see further consolidation in 2016 and the Phase Transition will be far worse pointing to 2017-2020.  As we move into 2017, this will be the year from Political Hell since the direction of the world is on the brink with political elections which may yet prove to be a revolution and generational shift in so many countries not the least will be the US elections in November 2016.

Silver is already below its key number warning it is weaker than gold. Gold is trying to hold on to 1044, but the day is just starting. The S&P500 number for the close will be 205890 whereas in the DAX it lies at 1036700. In the British pound, the number is 15200, but the main number will be 146.12. Of course in Crude, the key number will be 35.11.

This is just a few markets. Today’s close will signal what is to come for 2016.


 

Equity and Option Markets

Thursday, Dec 31  Regular Hours
Friday, Jan 1  Closed
Monday, Jan 4  Regular Hours

 

Spot Forex

Thursday, Dec 31  16:00 CT – regular close
Friday, Jan 1 Closed
Sunday, Jan 3 16:00 CT – reopen

 

Futures Holiday Schedule  Equity Products

Thursday, Dec 31  1600 CT – Regular close
Friday, Jan 1  New Year’s Observed
Sunday, Jan 3  1700 CT – Regular open for trade date Monday, Jan 4
Monday, Jan 4  1600 CT – Regular close

 

Interest Rate and FX Products

Thursday, Dec 31 1600 CT – Regular close
Friday, Jan 1 New Year’s Observed
Sunday, Jan 3 1700 CT – Regular open for trade date Monday, Jan 4
Monday, Jan 4 1600 CT – Regular close

 

Energy and Metals Products

Thursday, Dec 31  1600 CT – Regular close
Friday, Jan 1  New Year’s Observed
Sunday, Jan 3  1700 CT – Regular open for trade date Monday, Jan 4
Monday, Jan 4  1600 CT – Regular close

 

Grain Products

Thursday, Dec 31  Regular close – Per each product schedule
Friday, Jan 1  New Year’s Observed
Sunday, Jan 3  1900 CT – Open for trade date Monday, Jan 4
Monday, Jan 4  Regular close – Per each product schedule

 

Livestock and Lumber Products

Thursday, Dec 31  1355 CT – Early Close
Friday, Jan 1  New Year’s Observed
Monday, Jan 4  900 CT - Lumber market open  905 CT - Livestock markets open  Regular close – Per each product schedule

 

Russell Equity Index, U.S. Dollar Index, and Mini Metals

Thursday, Dec 31  Regular Hours
Friday, Jan 1  Closed Monday,
Jan 4  Regular Hours

Sugar No. 11, Coffee “C”, Cotton No. 2, Cocoa, and FCOJ Contracts

Thursday, Dec 31  Regular Hours
Friday, Jan 1  Closed
Monday, Jan 4  Regular Hours

VIX Futures

Thursday, Dec 31  Regular Hours
Friday, Jan 1  Closed
Monday, Jan 4 Regular hours (extended hours open at 17:00 CT on Sunday evening)

 

More support for the Strong Dollar!


China Shuts down FOREX at Foreign Banks to Try to Stop Dollar Rise

central_bank_china

China has suspended FOREX business at three main foreign banks in an effort to curb the outflow of capital into the rising dollar. This is an interesting attempt to curb the rise in the dollar and it is clearly showing the overall trend in motion.

$CHINA-M 12-1-2015

 

It is interesting that China has taken this approach for we have elected ALL FOUR of the Monthly Bullish Reversals from the January 1st, 2014 low in the dollar confirming the change in trend. We still recommend that China just float its currency for the West will blame it for manipulation when in fact the global trend is toward a strong dollar into 2017.

The beginning of the end of cash in the EU


Happy New Year — Bail-In Passed for Europe’s Banks

ECB

The mainstream media is not extensively reporting on the “experimental” bail-in that the EU imposed on Cyrus. The bail-in, that they swore would never be applied to Europe, will officially begin in January. This new power will be in the interest of taxpayers as they will no longer be forced to pay for failed banks that were created by the childish structure of the euro that was created by lawyers who never understood the economy. But wait a minute — aren’t taxpayers the people with deposits in banks? Hm. Moving to electronic money is also about preventing bank runs. The bottom-line here is that they will just take your money to save bankers. Eliminating cash accomplishes two things: (1) they get to tax everything, and (2) you cannot withdraw money from banks.

The bail-in directive was agreed upon on January 1, 2015, and the bail-in system will take effect on January 1, 2016. So here we are, just in case you missed this one. Their website states:

Parliament and Council Presidency negotiators reached a political agreement Wednesday on the draft bank recovery and resolution directive, the first step towards setting up an EU system to deal with struggling banks. This directive will introduce the “bail-in” principle by January 2016, thereby ensuring that taxpayers will not be first in line to pay for bank failures.

The entire system of insuring banks after their collapse during the Great Depression was to restore confidence to end the hoarding and revitalize the economy. Now they have allowed bankers to do everything they did before, and they have reversed the insurance created to restore confidence in banking. They justify this by claiming taxpayers will not have to pay for the failed banks.

FDR-Fireside Chat

Over 9,000 banks failed during the Great Depression in the United States; an estimated 4,000 banks failed in 1933 alone. Roosevelt’s fifteen-minute radio address to the American people on Sunday evening, March 12, was his first Fireside Chat. He told the public that only sound banks would be licensed to reopen by the U.S. Treasury: “I can assure you that it is safer to keep your money in a reopened bank than under the mattress.”

1933 NYT Bank Holiday

1933 Detroit Money Returned to Banks

1933 40percent deposite to be paid

When the institutions reopened for business on March 13, 1933, depositors stood in line to return their hoarded cash to neighborhood banks. Within two weeks, Americans had redeposited more than half of the currency that they had withdrawn from the banks due to the collapse in confidence.

Banks failed even after the bank holiday. The process was indeed a “bail-in”. People would get whatever the scraps were worth upon the collapse of the bank. Absolutely everything the governments did to restore confidence has been reversed in Europe. Yet, they try to “stimulate” the economy with QE? Just brain-dead.

What is in store for us in the next two years?


The Dow for Year-End – Will it All Just Go Nuts for 2017?

DJIND-Y 12-29-2015

The Dow Jones Industrials still remains in a bullish posture on a broader perspective. The real critical support will lie at 16500 and the Panic Support is well below the market at 13100. Panic Support is the level that if breached intraday, this is where a Panic Crash unfolds. That is the real important level for 2016, but it does not appear to be in the cards. Otherwise, a closing for 2015 above 16500 is still moderately bullish whereas the technical levels will be 17345 and 18879.

DJFOR-Y 12-19-2015

We will be issuing the World Share Market Review after the first of the year overing North & South America, Europe, Middle East, and AustralsAsia as well as Asia from India and China up to Japan. We will also discuss the prospect for a continued sideways market for 2016 with the potential for the Phase Transition unfolding 2017-2020.

Keep in mind that the Bail-In becomes a formal European position January 1st, 2016, and 2017 is when G20 begins swapping info on everyone everywhere. Capital is being herded with no doubt and the smart money will begin to position itself realize it is time to get off the GRID. We have the Presidential elections in the USA at year-end and this too will help keep the markets guessing – Trump v Hillary or will the Republicans split entirely as they desperately try to force their own pick as the Republican candidate in a dictatorial move as they have done before.

Yet 2017 will see elections in Europe both in France and Germany. Of course we will also have the British vote to leave the EU. So looking at this agenda of fundamental chaos, it is not that hard to see why the computer is showing it all goes nuts starting in 2017. The question we will address is shall 2017 be a REACTION LOW with the false move before the breakout or a high with the meltdown afterwards?

China appears to be taking a smarter financial approach then the west is — maybe they will survive the coming collapse?


China to Stimulate by Cutting Taxes

China-Street-Scene

China is demonstrating it is more practical than anyone else in the industrialized world. They have announced that they will “reasonably” set limits on new local government debt in 2016. The Finance Minister Lou Jiwei said at a work conference in Beijing on Monday that they will actually limit local debt; something nobody else does. China will also adopt a much more flexible fiscal policy which shall include gradually increasing fiscal deficit ratio and expanding its budget deficit. So China will increase its debt in a gradual manner to try to stimulate the economic decline it is facing ahead.

These policies are to be supplemented by a cut in taxes to help companies reduce their burdens and thus help to prevent rising unemployment. While the Republicans effectively force tax reduction in the year-end budget, there is little doubt that the Democrats alone would never adopt such a measure. The idea of cutting taxes at all in Europe is up there with treason.

We can see that China is taking a far more practical approach to trying to manage its economy that we see in the West. Perhaps when they too come to realize that debt is not the answer and actually compete with money that would otherwise expand the economy, hopefully the day will come when public debt is just forbidden.be more