The End of the EU Part One.


Greek Rising Civil Unrest

Leaders-Merkel

Alexis Tsipras has to implement pension reform in order to get more loans from Brussels. He is betraying everything the Greek people voted for and is pushing Greece over the edge. Brussels is demanding that the Greeks pay for the shenanigans of Goldman Sachs whom helped Greek politicians cook the books.

Greek Protest 1-21-2016

Protests against the pension cuts and tax increases in Greece are spreading throughout the country. On Thursday, Greek farmers blocked major roads with their tractors. Among other things, the traffic was hampered on the axis linking western Greece with Turkey. The sailors continued a 48-hour strike. Most ferries remained in port and the rail transport was hampered by work stoppages of railwaymen.

Mother-Merkel

The ONLY solution is to exit the euro. Brussels is totally insane and their actions are designed only to maintain their own jobs. Merkel created this entire refugee mess by trying to show she was human while denying anything to Greece, despite Greece forgiving the German debt after World War II.

It is ironic that Merkel refused to bend for the Greeks, yet she let in hordes of “refugees” who are tearing Europe apart and have resulted in passports checks between member states.

Are we next to go cashless?


China to move to Electronic Currency

central_bank_china

The People’s Bank of China held a seminar yesterday to discuss the
issuance of a digital currency. The Chinese central bank said issuing a digital
currency would have positive implication as it would reduce the high printing
and circulation costs of traditional cash notes, make economic transactions more
convenient and transparent, reduce money laundering and tax evasion and
strengthen the central bank’s control over money supply and circulation. The
Chinese central bank pledged to issue China’s own digital currency as early as
possible.

The Dollar will continue to rise as the world implodes!


Why Pegs to the US$ Will Break

US$-HK Peg

Speculation is, at last, starting to rise that the HK$/US$ peg could break. The all-powerful governments are suddenly being seen as no so powerful. The massive dollar rally that our model has been forecasting is rather straight-forward. The higher the US$ rises, the more deflation will be exported to economies that are out of sync with the USA.

The dollar haters only talk about the $18 to $19 trillion debt and that is the sole reason, they assume, why commodities must rise and the dollar has to crumble. What they fail to see that it just so happens to be the WORLD. The sea of debt out there has exceeded $200 trillion. When you look at the U.S. government, I hate to say it, but it is a drop in the bucket.

Then we have China in a contractionary decline, Europe being torn apart thanks to the refugee crisis that will only get far worse, and emerging markets who assumed China would buy every commodity in sight forever. There is little hope of anything rising right now to offer any sort of an alternative to the US$ federal debt. Believe it or not, there is a SHORTAGE of federal debt when the entire world has only one place to park BIG MONEY.

Consequently, we will see virtually EVERY currency pegged to the dollar break from Hong Kong to the Middle East. Welcome to BIG BANG.

Worldwide people are seeing their governments do crazy things that make no since and are hurting them; soon all “TRUST” will be gone and chaos will reign!


Davos – The Collapse in TRUST

DAvos

The most telling sign that we are headed into a real political-economic shit storm is the fact that “TRUST” is collapsing on all sides. Every chance Obama gets he wants to disarm Americans. Why? This is simply because government is in trouble and they no longer “trust” the people. Likewise, the “rich” are starting to withdraw their money from investment that would create jobs because they too are worried about the rising discontent among the majority of the population. Then we have the collapse in
trust” among the people of anyone who is a career politician. So welcome to the theme of Davos – the collapse in “trust”.

Soon the entire EU will be in Economic Emergency!


France in State of Economic Emergency

hollande-shocked

President Francois Hollande has publicly stated that the French economy is now in a state of “economic emergency”. He set out a €2bn job creation scheme in a desperate attempt to lift France out economic death spiral created by his socialistic policies that have raised taxes and chased out those who create wealth and jobs.

Hollande’s scheme he proposes will be a two-year plan where firms with less than 250 staff will get subsidies if they take on a young or unemployed persons for six months or more. In addition, Hollande says he will create 500,000 vocational training courses but that is pointless without firms hiring.

France’s unemployment rate is officially 10.6%, compared to a European Union average of 9.8% and 4.2% in Germany. However, this numbers are modest and do not properly reflect the students who cannot get a job to even start. He also says that this program will be paid “without any new taxes of any kind.” I suppose he is finally realizing that rising taxes shrinks the private sector and than means less jobs are available.

Oil could go down to $25.00 per barrel or lower!


Crude – What Lies Beneath $30 & Where Will Resistance Stand Here After

Crude-W 1-18-2016

 

Right now, the fear has been that Iran will start dumping oil now that the sanctions have been lifted. Thus, crude has been falling out of bed in a nightmare scenario. The fact that Crude was below $35 and then rallied to close above it for the 2015 year-end closing was a warning that the long-term may not be as bearish as it appears at first glance. Crude still elected a year-end sell signal at $41. So that meant lower lows. But our other two numbers were $35 and $25. Breaking $30 certainly focuses our attention on the $25 level as support on a system basis. Technically, the $25 area is also showing up as support during January.

Crude-FOR-M 1-1-2016

Cyclically, this collapse in price has been on target since our timing projections have been January, March, and June here in early 2016. We have warned that 2016 was the target for at least the intraday low.

Crude-Y 1-18-2016

Crude-FOR-Y 1-1-2016

When we start to look at what the computer is projecting in time, indeed 2016 is a Directional Change. It appears choppy until about 2018. From there out into 2022 to 2023/2024, which will be the next top in the Economic Confidence Model, we see a sharp rise in volatility. This is lining up with two primary factors – WAR and a MONETARY CRISIS.

So for now, we should focus on the $24-$25 area as the next psychological support zone. Our two key areas of target support for 2016 are $25 and $16. Looking forward, we employed our WHAT IF models to try to forecast where the Yearly Bullish Reversal (buy signal) will be generated from a low at either position in 2016. Interesting enough, in both scenarios, we end up with $40-$41.50. This will clearly become the major resistance moving forward. It does not appear that crude will ever make new intraday highs. It must fight again

All Governments fail as soon as they promise the citizens a Utopia!


Leverage v the Black Hole in Economics

Leverage-Economy

QUESTION:

Dear Marty,

Please correct and expand my understanding of a Sovereign Debt Crisis as it pertains to leveraged accounts.  If global economies are leveraged because of too much debt with no plans to pay, then what are the pros and cons to leveraged short investments when economies are deleveraging?  Might they be dangerous at times?

Thanks in advance for your incredible knowledge and willingness to educate others wanting to learn and understand.

Sincerely,

BB

ANSWER: Leverage seems to be the buzz word everyone relies upon to predict the end of times. All we hear about is the leverage in derivatives and the issue that will collapse society. Quite frankly, that is a lot of hype. They are quoting the total gross without looking at the net because so much of this is offset.

Babtlon-Futures-Contracr

Because of these scenarios, the predictions people tout is always inflation. They keep the German hyperinflation in mind even if they do not explain their base reasoning. Within this idea is the fact there is a basic assumption government is GOOD and will attempt to honor its debts like bailouts when in fact they will NOT; i.e. bail-ins. Nevertheless, like a horse race, the doomsayers are betting on the wrong horse. LEVERAGE has existed since ancient times. Here is a Babylonian tablet recording the earliest futures market. Sorry, but LEVERAGE has been around a very long time. It is inevitable government will collapse for NEVER has a single one ever survived.

Denarius-Annual Production-R MoneySuppy-157-50BC

Roman-DieCareful correlations of historical data we have gathered which even include the money supply determined by the number of known dies for coins and the average 25,000 coins which can be struck before a die breaks. When I say we put together the largest collection of coinage providing a complete run back to 600BC to recreate the monetary system of the world, it is no exaggeration.

GORD-DIEWe even have Roman dies that were used to strike coins shown above and to the right. You cannot ascertain what the future will bring without a road-map of the past. Forecasting the future demands a database – not merely theories. By assembling the hardcore evidence of history tracing the footsteps of humankind throughout the centuries, only then can you speak with any pretense of authority that is not qualified with “I think”.

TAX-CYC

 

The battle has always been not with LEVERAGE, but with Government. The larger government grows, the more wealth they consume. Government produces nothing, but they ultimately consume everything. This is why they ALWAYS collapse. We are in a DEFLATIONARY spiral because they continue to suck in more and more money. LEVERAGE only adds to volatility. Government is like a BLACK HOLE, sucking in everything including the light of the future. Nothing can escape until its collapses.

Obama Organized Crime

This is the present HUNT FOR MONEY because they are going broke. It is not the quantity of money that counts; it is what crumbs are left on the table at the end of the day. Government is indistinguishable from any criminal organization engaged in the “protection business”. You pay up to be protected or they themselves rob you.

This hunt for money will not end here they will leave no stone unturned —- including yours!


The Hunt for Money: Tracking Real Estate Off the Grid

Porsche Building

It has been only a matter of time. The U.S. Treasury will begin tracking high-end real estate to see where the money comes from because many properties are selling for CASH without mortgages. The news release on January 13, 2016, states:

The Financial Crimes Enforcement Network (FinCEN) today issued Geographic Targeting Orders (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in the Borough of Manhattan in New York City, New York, and MiamiDade County, Florida.

Porsche Building-2

The hunt for money is now turning to real estate in order to track those trying to get off the grid, in such places like the Porsche Building in Miami, Florida. The property has an oceanfront view and you ascend in a glass elevator to your private residence while sitting in your car. The building was the vision of the Porsche Design Group and South Florida developers. Condos start at $17 million.

Gold just a commodity like everything else but oh does it have physiological meaning!


Gold – No Time Left for Conspiracy Theories

COMMODITIES-GOLD-METALS-PRICE-SRILANKA

To some, this is a religious battle. To others, it is just a time to rip off a lot of people by selling fantasies and sophistry. I have stated this many times, so here it goes again: Gold rises when people lose confidence in government. It has nothing to do with inflation. So, you start to worry about government survival or who’s going to win a war when gold rises — not before.

Short term, we still have the risk of gold going under $1,000 per ounce. It’s going to flip when everything is right — not before. It will probably max out at $5,000 per ounce or perhaps $6,000 at best. That we will not know until we have the low and the projection angle from that low. We’re dealing with a very profound event, religion aside. Such events of political-economic trend resets come around every 309.6 years. The last one was the global revolution against monarchy which began in the United States.

If you just step back and look OBJECTIVELY at what is unfolding from electronic currency to G20 demanding info on everyone and every penny that changes hands, then you can see where the future is headed. We do not have a democracy; that is total nonsense. The president appoints the heads of all departments. Nobody stands for election right down to the head of the Federal Reserve.

In Europe, you have the three-headed dragon they call the Troika — the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF). None of those three members heads have EVER stood for election. They too are undemocratic appointments. So the European population cannot even vote for their future.

George-1778-Tory-Confiscation-Note-r

Gold will respond ONLY when the majority sees the crisis unfolding. Just because you may understand it and see the logical outcome does not mean that the bulk of the population will. During the American Revolution, they actually issued currency backed by assets confiscated from “Tories” or those who supported the king against the people.

There is no time for nonsense conspiracy theories or other sophistry. This is about a major shift in political economic trend, which is far more important than the job to sell gold by people pretending to be analysts with nothing new to add to the issue other than inflation, fiat, and the theory that all paper currency is evil.

More problems in Britain!


Cameron – A Morally Corrupt Politician

EU-Cameron

 

Cameron is just an example of how morally corrupt politicians are no matter what country we talk about. Cameron promised a referendum on exiting the EU because he never in his wildest imagination contemplated that the British would leave the EU. So what does a corrupt politician do when he fears losing? He rigs the game. Cameron is now looking to postpone the referendum because the British people want out as a majority. The sex assault by the refugees is just the tip of it. With another 3 million coming in 2016, Merkel is destroying the very fabric of Europe. Cameron is trying to postpone any referendum until 2017 and will hope something will happen so he can just forget about the whole thing.

Withe bankers also being corrupt, they have tried to scare the British people saying if the Brits exit the EU, nobody would do business with them. Toyota, on the other hand, came out and stated bluntly the truth – they will of course continue to work with the UK. The British banks are in league with Cameron and are full of SHIT. This is the same scare-tactic the banks played on the Scottish exit and we saw similar nonsense in Greece telling the people they would “starve” because most food is imported from Europe.

Cae-PontifMax

Cameron has revealed his untrustworthy character trying to postpone any exit vote. This is exactly the same corruption which sparked the civil war in Rome and compelled Julius Caesar to cross the Rubicon. Why? Because the politicians would manipulate the calendar to postpone elections they know they would lose. The took advantage of the fact that the high priest, Pontifex Maximus, would arbitrarily adjust the calendar by inserting the leap days at his discretion. Solution? Bribe the high priest. The Senate fled and Caesar assumed the position of Pontifex Maximus and created to fixed Julian Calendar to end the arbitrary manipulation by priests thereafter. Cameron is following the same pattern – postpone a vote he knows he will lose.

corbyn Jeremy

God help Britain. Their choice is between a communist who thinks putting a maximum wage of people solves something, or Cameron who sees himself as a European before being British.