China’s Reserves & the Flight of Money


China Foreign Reserves

All we have been hearing are claims that if China sends the dollar flooding back to America, the dollar will become worthless and hundreds of businesses will go broke overnight. The gold promoters put out such wild claims and have no idea what they are saying or the type of world that would unfold. It is not in China’s self-interest to dare to do such a thing for their own economy would collapse. Jobs would be lost and unemployment would soar, leading to another revolution.

These people yell the same thing all the time. They want to see America destroyed so they alone can become wealthy and look down upon the rest of society while kicking them in the gut and rejoicing in their pain. I really do not understand such hatred. Of course, they do not want to talk about how U.S. corporations have $2 trillion+ in cash offshore and only about 10% resides in U.S. government debt.

These scenarios are absurd. When China’s reserves decline, it will be because capital had fled China. This is precisely the opposite of what these people are saying. China has sold U.S. Treasury bonds and U.S. equities to raise cash to support the yuan to boost confidence. It has nothing to do with being bearish on the United States. China has no such interest in destroying the U.S. economy or that of Europe. To do so would destroy their own economy and that would only lead to revolution.

These scenarios are just pathetic. China has been suffering from a lack of confidence and capital has been pouring out of the country. The Chinese are the big-ticket buyers of real estate in the United States. China’s reserves have been collapsing as capital has fled. In fact, March was the first time in five months that China’s foreign reserves rose to $3.213 trillion, which was up by $10.26 billion from the end of February, according to data from the People’s Bank of China. The numbers from April showed a second consecutive monthly increase of $7.09 billion to $3.220 trillion.

As far as China’s gold reserves, they have 1797.46 tonnes (57.7 million ounces) or about $75.1 billion at $1300, which amounts to only about 2% of their reserves.

The problem with all of this nonsense is that they are desperate to create a reason to sell gold. You can fool people sometimes, but not all the time. When they listen to these wild scenarios and they do not pan out, they will lose confidence and stay away. So they could care less about the veracity of their claims. All they care about is selling gold for a profit.

Gold will breakout, but not for such absurd reasons.

Constructing a Future


Future

Our models have been targeting 2018 for the last 30 years as the first potential year for a monetary crisis and reform. There was a shot that we could have doubled the Dow and everything would have bottomed on the first potential, such as gold in 2013 to 2014, and then turn up into that target. But the markets have been dragging this affair out so long that it looks like this is the beginning rather than the end point, and the real chaos is just extending into the next 8.6-year cycle. This is why we have the Reversal System, for it provides the numbers we have to achieve to confirm the trend. Just as we missed the 17800 on the Dow for the close of May, everything happens for a reason.

The vast majority remains bearish on the Dow, and, of course, the gold promoters always say the dollar is worthless, but their forecasts have not changed for decades. The Dow has all these people claiming it is overvalued and has to crash. Then we have Fed watchers who just focus on domestic numbers and ignore the entire world trend.
It is clear that everything is within a staging position in preparation for something really big. While so many say this is the end of the world and everything will go to zero, such events have never corresponded to their scenarios in history.

The most likely course of action has not changed. When confidence in government collapses among the GENERAL MASS PUBLIC, everything will breakout. Listening or convincing oneself about fiscal mismanagement of government is nice, but the general population is what counts. They are the movers and shakers. We merely jump to their actions.

Reversals TimingSo the computer gives us the numbers and the time. They simply have to be elected to confirm a trend. All I can do is articulate the points and then say here are the points and the time.

What we are facing is nothing anyone has ever experienced. So it is not going to be easy to come up with some “gut feeling” or opinion that matters. Whatever we “think” will or will not happen is irrelevant. Everything is changing. Financial analysts are failing everywhere. Hedge funds are losing money. The only way to trade is with something definitive without the personal opinion.

The days of searching for some guru who is never wrong from an opinion perspective are gone and only fools seek such ideals. We are heading into the eye of a financial storm that will topple governments. The future is being constructed before our eyes if we wake up and just look. The hard heads always lose everything because they are too stubborn and incapable of adjusting their investment strategy. Those looking to buy growth or value in equities will also lose their shirt for this is not a normal trading affair.

The Supreme Court Just Created a Full-Blown Police State – The End of the USA Cannot Be Far Behind


US Supreme Court

The Supreme Court ruling in Utah v Strieff awarded the police total freedom to stop any citizen, at any time, to do whatever they desire. The Supreme Court determined that the “poisonous fruit” of a police officer’s stop of a citizen can be used against them at trial. This has wiped out, in reality, any constitutional protection you thought you had. This is a sad day for the United States, for the Supreme Court has officially created a full-blown police state and clearly has no intention of honoring why this nation began the entire American Revolution —  to prevent illegal searches that allowed the king to look for anything he could use to prosecute citizens.

The Supreme Court ruled that even though the officer had initially violated a person’s rights (in other words, the Constitution) the officer’s conduct was “at most negligent” and the result of “good-faith mistakes.” This language is a wink and nod to the police who only have to claim they made a mistake that was not intentional and they walk free. We have witnessed police outrageously murder citizens, but the police officers involved are usually not charged. Now, with this decision, the United States has become exactly as Ukraine stood before the people revolted.

A friend of mine from Ukraine came to the states before the last revolution. When they would see a police officer, they would tense up and try to avoid them at all costs. At home, the police were the criminals. They would shake you down, abuse you, and there was simply no rule of law. The Supreme Court, as of yesterday, has committed suicide.

Otis-James

In February 1761, James Otis, Jr. (1725–1783) argued brilliantly against the Writs of Assistance that was authorized in 1660 but became an instrument of tyranny in 1758 in the American colonies as a means to raise taxes. For nearly five hours, Otis made a brilliant oration in court against the Writs, but he lost the case, for what judge would ever rule against his master? John Adams later wrote that the child independence was then and there born, [for] every man of an immense crowded audience appeared to me to go away as I did, ready to take arms against writs of assistance.” This spirit of resistance appears to rise roughly every 51.6 years, albeit at different intensity.

This very power to arbitrarily search anyone sparked the American Revolution. No taxation without representation followed, but the inspiration was the right to be free and the Supreme Court just took away. The police no longer have restraint. This is the final stage of how empires, nations, and city-states collapse when there is no rule of law. Once the state elevates itself above the people, the end is not far behind. The dissenting words of Justice Sonia Sotomayor reflect the dire state to which the United States has degenerated.

Sotomayor Justice

Scalia would have joined Justice Sotomayor on this one, and if he were still alive, he would have tipped the scale and protected our liberty. With Scalia gone, who was a strict constructionist, there is little hope left in the Supreme Court. Justice Sonia Sotomayor wrote, “Even if you are innocent, you will now join the 65 million Americans with an arrest record and experience the ‘civil death’ of discrimination by employers, landlords, and whoever else conducts a background check.”  She concluded, and I must agree:

By legitimizing the conduct that produces this double consciousness, this case tells everyone, white and black, guilty and innocent, that an officer can verify your legal status at any time. It says that your body is subject to invasion while courts excuse the violation of your rights. It implies that you are not a citizen of a democracy but the subject of a carceral state, just waiting to be cataloged.

We must not pretend that the countless people who are routinely targeted by police are “isolated.” They are the canaries in the coal mine whose deaths, civil and literal, warn us that no one can breathe in this atmosphere. They are the ones who recognize that unlawful police stops corrode all our civil liberties and threaten all our lives. Until their voices matter too, our justice system will continue to be anything but.

The EU Determined to Ensure BREXIT Will Not Succeed


Troika-Unelected

The voter fraud in the Austrian election to save the EU has been ruled by the Austrian Constitutional Court has revealed outrageous “errors” to the point that votes were simply regarded as non-binding recommendations. The investigations continue, but this reflects the desperate attempt to save Brussels at the expense of all of Europe. This was portrayed as dangerous had the people been allowed to actually vote so the election had to be rigged. This casts a lot of questions over the reality of BREXIT vote to take place on the 23rd. Is there any hope of a real election at all? Unfortunately, those in Brussels, like the Troika, cannot be voted out of office since they have defeated any possible democratic vote. They never stand for election. The very people who dictate the fate of Europe and are responsible for undermining all the pensions with negative interest rates, never stand for election at any time and still tell the people it is a democratic process. Why any Brit would surrender their independence to become economic slaves to Brussels just shatters the mind. This is a dangerous situation for the only means to reform or disagree with the policies in place will be civil unrest if not war.

Meanwhile, in France, President Francois Hollande has proposed to actually ban all demonstrations, according to his presidential spokesman. The excuse is of course the country is plagued by terrorism, and with Hollande less than 15% in the polls, the conditions are not in place to protect “personal or public property.” He said: “At a time when France is hosting the Euro 2016 [football tournament], when it is faced with terrorism, demonstrations can no longer be authorized if property, people and public property cannot be safeguarded,” Hollande told a Cabinet meeting, according to his spokesman Stephane Le Foll, AFP reported.  Very convenient.

In Italy, we now see the Anti-establishment Candidate Taking the lead in the Rome Mayoral Election. The disagreement with the management of the “establishment” on a worldwide basis is rising precisely in line with our Cycle of War. This is part of the cycle and why we sadly will see the crumbling of Western Civilization as the financial capital of the world moves to China after 2032. Even in Japan, you have Finance Minister Taro Aso asking just how long the elderly intend to live effectively saying – die already, to reduce the government payouts.

 The “establishment” is faking polls, and the press is in bed with them, all to retain the status quo everywhere. Even the establishment Republicans are not raising money for Trump and want him to lose. Hillary is one of them. They do not want any outsiders. In London, Cameron is in bed with Brussels despite the fact he has lost every single negotiation to date with them. Is he an idiot or just corrupt? Brussels simply cannot allow BREXIT to succeed for it will signal the end of the EU, which they are desperately fighting on every front.

This week will be extraordinarily important for the failure of BREXIT to win will most likely lead to sharply rising civil unrest throughout Europe. The machinations behind the forced federalization of Europe by the elitists from assassinations and political coups right down to massive immigration to breed-out the European race, cannot be sustained. The whole refugee crisis is a crisis since the majority of these people are not even from Syria and among their ranks are terrorists intent upon destroying Europe.

Central Banks Made Government Debt the Riskiest Debt of All Time!


End of Everything

The central banks have risked it all and lost. They have reached the point of no return. The Fed decided not to raise rates, which are desperately needed to prevent a collapse in pensions and insurance companies, and merely froze like a deer in headlights. The superficial analysts who think lower rates are good for the stock market are blinded by their own stupidity. The theory that low rates will encourage people to buy stocks is brain-dead and demonstrates that these people are incapable of comprehending how the economy functions.

CALLMONY-MA

We have taken simple correlations of interest rates and the stock market and discovered something in plain sight. The market has NEVER peaked with the same level of interest rates in history. WHY? It is not the empirical level of interest rates that matters, rather it is the rate of interest that is a factor of expected inflation. Therefore, if the expectation of gain is greater than the rate of interest, there is profit in borrowing. If the expectation is below the rate of interest, then the rate must decline. Consequently, assuming that simply raising or lowering rates will reverse the trend is primitive and lacks any analysis whatsoever.

The central banks have gone way too far and are now trapped. They do not have the ability to influence the economy anymore for they are loaded with government debt that will default. They have converted government bonds into one of the riskiest asset classes of all time.

More and more of our institutional clients (pensions & insurance) are bailing out of government bonds and switching to corporate. Why? No major corporate debt becomes worthless. One was audited by S&P and they remarked that they were taking on more risk. They conducted their own studies to verify what we have been saying and found no corporate defaults, but countless government defaults and partial defaults. In the few rare cases of a default, you receive a payout after liquidation. In the case of government debt, you have something to frame and that is all. Government debt is unsecured and since they have the guns and the armies, you cannot force them to pay anything.

Some insurance companies have come out and stated publicly that they are selling government debt and moving to corporate. Swiss Re AG moved more of its investments into corporate debt as conceded by its chief investment officer who said, “If you’re looking for a bubble, here you go…With government bonds, you’re not adequately compensated for the risk you’re taking.”

We have been in meetings with pension funds. Here too, we find the same response. They are starting to shift. Government debt has become a time bomb. A simple 1% rate hike will be devastating to bond values and blow the budgets of government sky-high.

The European Central Bank has created a total mess of the European banking system. Negative interest rates have been devastating. Now in the Middle East, the National Bank of Abu Dhabi and First Gulf Bank PJSC are exploring a potential merger to create the largest lender in the Middle East. But forget the fluff — banks do not merge unless there is a problem. Rumors behind the curtain say First Gulf Bank PJSC is in trouble.

Negative interest rates have destroyed much of the economy. The rise in regulations and taxes have combined to create the weakest recovery in the United States post-Great Depression. This is not going to end nicely. It is only a matter of time before the general public begins to see the real crisis, and then everything will explode in their faces.

The Father of the European Union – The Real Mover & Shaker Behind the Curtain


Richard Coudenhove-Kalergi

Wolfgang_Schaeuble_1-15-2016Most people have never heard of the real man behind the curtain who inspired the idea of the European Union. They certain do not realize that his idea was to stop the inbreeding within Europe and to support the mixing of peoples and many say races to create the United States of Europe. Richard Coudenhove-Kalergi (1894-1972), was of noble birth and was very much an elitist. He is the real father of the European Union for his efforts go back to 1922 when he founded in Vienna the “Pan Europe” movement. Indeed, his idea was partially supported by the fact that the people of Europe migrated to the United States and intermarried to create America. He saw the same thing was necessary for Europe. This idea is behind German Finance Minister Schäuble outrageous statement that the refugees are needed calling for more immigration into Europe otherwise, Europe will“degenerate into [an] inbred” continent. This is right out of Coudenhove-Kalergi whose argument captured many elitists and spread from Austria to most other countries within Europe. You have to keep in mind that the Royal families were engaged in such a policy. The English monarch is related to the German, Russian, Dutch, and Spain where there were all intermarriages under the theory of creating political stability.

In 1938, Coudenhove-Kalergi had to flee from the Nazi regime and sought asylum in Switzerland and then moved to the United States. Many people have heard of Hitler and his idea of a master race of pure blood, what they do not realize is that this idea was the opposite of Coudenhove-Kalergi’s proposal which is why he had to flee. Coudenhove-Kalergi marketed his vision to breed Europeans into a single race managing to gain many politicians to support his idea based in part on the melting pot of America. However, he would take it even further.

On his return to Europe, Coudenhove-Kalergi was no doubt the initiator of the Parliamentary Union and the concept behind the Treaty of Rome and the evolution of the euro to attempt to merge Europe into the federalization process. Finally, during 1966, Coudenhove-Kalergi submitted before the X. Vienna Paneuropean Congress a memorandum for the future of Europe, which is still regarded as an important guideline to this day. Coudenhove-Kalergi managed to become an adviser to Charles de Gaulle, Georges Pompidou and Konrad Adenauer and Bruno Kreisky.

The sudden advocacy of Schäuble to mix the races and German women should marry refugees has a rather disturbing link to Coudenhove-Kalergi. In his book Praktischer Idealismus (Practical Idealism), he wrote:

The man of the future will be of mixed race. Today’s races and classes will gradually disappear owing to the vanishing of space, time, and prejudice. The Eurasian-Negroid race of the future, similar in its appearance to the Ancient Egyptians, will replace the diversity of peoples with a diversity of individuals. …

Instead of destroying European Jewry, Europe, against its own will, refined and educated this people into a future leader-nation through this artificial selection process. No wonder that this people, that escaped Ghetto-Prison, developed into a spiritual nobility of Europe. Therefore a gracious Providence provided Europe with a new race of nobility by the Grace of Spirit. This happened at the moment when Europe’s feudal aristocracy became dilapidated, and thanks to Jewish emancipation.

id/Coudenhove-Kalergi 1925, pp. 20, 23, 50

There is a lot more going on behind the curtain than people realize. The Pan European idea will fail. They are missing the very element that made it work in the United States – a single language. You will not see Scottish men marrying Italian women generally because of language. Without a single language, Coudenhove-Kalergi idea of simply breeding all the races together to end war is rather absurd. There have always been those who see themselves as playing the roll of God.

Assassination & Conspiracy Theory to Prevent BREXIT Vote?


 

Jo Cox

Anna_Lindh_2002Kennedy 50cent half dollarThere is disturbing opinion circulating about Jo Cox may have been assassinated to prevent a BREXIT vote. Many are starting to believe there is a conspiracy plot connecting the dots to ensure a sympathy vote to remain within the EU. People are pointing to the familiar tool of assassination often used to achieve political agendas. Of course there is the Kennedy assassination that many believe was orchestrated to create the sympathy vote to start the Vietnam War when in fact Kennedy vetoed such a measure. But the more recent assassination was on September 10th, 2003. Anna Lindh  (1957 – 2003), was a Swedish Social Democratic politician who was a member of parliament from 1982 to 1985 and 1998 to 2003. Anna was elevated to minister for foreign affairs by prime minister Göran Persson in 1998. She was widely considered to be his successor as party chairman and there was much hope that she would become prime minister.

Lindh was a supported of adopting the euro. She became the face of joining the new EU and was to be on a TV debate when in Stockholm on the afternoon of September  10th around 4 pm, she was attacked with a knife while shopping in the ladies’ section of the Nordiska Kompaniet department. Lindh was to appear on a televised debate later that night on the referendum about Sweden’s adoption of the euro. At the time of the attack, Lindh was not protected by bodyguards from the Swedish Security Service.

Olof_Palme_1974Then there is the unsolved assassination of prime minister Olof Palme in 1986. Palme was accused of being anti-EU and more pro Soviet. His assassination did clear the way for Sweden to join the EU, which was finally presented in the Swedish European Union membership referendum of 1994 approved, which gain only a 52% majority.

While Silvio Berlusconi was not assassinated, the EU did stage a coup against him because he wanted to take Italy out of the euro. Then there was the Greek Prime Minister Georgios Andreas Papandreou who wanted the Greek people to vote on any bailout to stay in the euro. He was told by Brussels there would be no referendum.

The recent Austrian election was rigged with the closest race in history decided by the mailed-in ballots. As the days have passed, the results of the Austrian presidential election have become far more suspicious.  The official results claimed the far-left candidate Alexander Van der Bellen defeated Norbert Hofer from the Freedom Party of Austria by just 31,000 votes, 50.35% to 49.65%. Again, the fate of the EU hung in the balance. The provisional result in voting reflected major polls released in the last days before the election, which all showed Hofer with the clear majority of public support over his rival coming in at 53% to 47%.
scotland-no

The Scottish youth called their referendum to leave the UK a “REVOLUTION” and felt very betrayed by what they called the over “65” crowd who just wanted their pension checks from London. It is clear that when people are voting with paper ballots, they vote can easily be rigged. There were countless photos of how they committed outright fraud to ensure there would be no “yes” vote.

Camerob-9-19-2014

David Cameron basically said reading between the lines – the younger generation lost and their fate is now settled “for a generation.” This degree of arrogance is not going to be helpful. Governments will not reform and that brings us only to the point of our rising civil unrest that will rip the systems apart. No one in charge will address the long-term. They are only concerned about one vote at a time.

So is there a conspiracy? Perhaps. They would never investigate themselves, so all this is has been suspicion. What is clear, has been that the EU will collapse if BREXIT is allowed. There is far too much at stake to allow this vote. The burning question will be, just how they cover it up and at what cost?

Venuzeula’s Food Crisis Worsens…


This is what happens when there is just too much free stuff!

Approaching Britain’s Final Hour of Independence


FIC-Y 6-19-2016

The FTSE share market index for London has long reflected the problem with the EU. Despite the lies and propaganda that the EU has been some great miracle for Britain, the low in the FTSE took place in 1974. There was a fierce bear market in the FTSE which fell into a sharp low AFTER joining the EU reflecting more regulation and an oppressive external government imposed upon the British. It was actually Margaret Thatcher who reversed the fortunes for Britain and we see the share market exploded with her economic reforms, but that would be stopped by Tony Blair. The rally which unfolded in the FTSE lasted for 25 years until 1999. That is when Gordon Brown sold the British gold reserves. Tony Blair became Prime Minister in 1997 until 2007. That shift to Labour resulted in the stagnation of the British economy reflected within the price action of the FTSE which has never been able to close higher than 1999 ever since.

British GDP Growth since 1949The FTSE made a new intraday high in 2015, however, it has not been able to close above the 1999 high for the past 17 years. This is two 8.6 year cycle durations warning that we should now begin to breakout to the upside during this next cycle, but why is the real question. The answer brings into focus the primary mover behind such a rally. This implies that the pound will FALL sharply. That may indeed be the result of Britain surrendering its independence to be ruled by the EU where it has lost 72 objections every time so far. The FTSE will rally as the only domestic means of a hedge against the government. The stock market will rise simply because people will park money in equity rather than banks or trust the currency. If Britain does not leave the EU, its currency will collapse as will the euro.

The EU even stole the British waters away from their fisherman. Britain has always been looked down upon from Continental Europe in private meeting I have ever had for decades. Britain has also been seen as an outsider and resentment has run rather deep simply because the English language became the main language in world commerce. Even in air traffic control, pilots flying internationally must speak English.

We can see the technical resistance stands at 65330 and technical support lies at 49751. This pattern is a holding pattern of stagnation. It has reflected the overall economic decline Britain has endured ever since joining the EU back in 1973.

There is little hope that Britain can be save from the EU. The vote is likely to be fixed because if Britain left, the EU would collapse. There is far too much at stake for career politicians. In such conditions, there is no limit to their machinations behind the curtain. I will reveal some of that this week as we approach Britain’s final hour of independence.

America United – “You are That Force” !


I have tried to say this myself but Captain Higgins has said it so well that I don’t think anyone else can say it better. THIS IS THE MESSAGE WE NEED TO PROMOTE for as the saying goes

Divided we fall —United we stand

And I’ll add that I think Trump gets its and that is way I support him 100% And I do have a Masters and I have swept floors and been a grunt and failed and moved on but when I go to the VFW or the American Legion (Obama can’t get in) we do more than drink and tell story’s we are out there helping other Vets the ones the government has forgotten because they are more concerned about their wealth then those that made that wealth possible.

IT IS TIME FOR A CHANGE!