COMMENT: Hi Marty,
I must say your analysis of the dow for the last six months is simply mind blowing.
Everything you said has been accurate. You are right that most will not get what your saying because they are stuck in a linear world – not a dynamic world.
You did say markets would churn into May. You were SPOT on. I guess what throws most is when you say we could get a high in May/June or September. They can’t process the dynamism. They guys would be good candidates for government work where they can just try control everything.
Indeed I am looking forward to the biggest “mind twisting” trade of the century, as you say. It is looking at this stage like a May/June high – everything is truly connected. You have opened my eyes forever.
REPLY: It is so hard for many to understand how everything is connected and to separate me from the computer. The vast majority who disagree always make this personal rather than the analysis. The churning of the Dow until May was connected to the dollar rise and the collapse of the Euro on just one level. If you would normally see a decline that everyone was calling for in the US market, they missed the currency play which would provide steady support for the Dow. Continue reading
A top financial advisor, worried that Obamacare, the NSA spying scandal and spiraling national debt is increasing the chances for a fiscal and social disaster, is recommending that Americans prepare a “bug-out bag” that includes food, a gun and ammo to help them stay alive.
David John Marotta, a Wall Street expert and financial advisor and Forbes contributor, said in a note to investors, “Firearms are the last item on the list, but they are on the list. There are some terrible people in this world. And you are safer when your trusted neighbors have firearms.” Continue reading
China increased its holding of US bonds by US$10.7 billion to US$1.305 trillion in October. A financial expert said the surge of net capital inflow in October suggests that the demand for US debt is still healthy despite concerns about potential defaults, reports the financial news website of Chinese web portal Tencent. Continue reading
The US is “seriously” considering creating a $1 trillion platinum coin to write down part of its debt to stop the world’s largest economy defaulting as early as next month, according to financial analyst Cullen Roche.
“I know it’s been spoken about at the White House and a number of prominent people, including congressman [sic], are talking about it,” he said. Continue reading
America faces a seminal reality: We are broke, and we are getting broker by the day. This is the real “fiscal cliff” the country is about to jump off, not the artificial one consuming Washington. Instead of confronting our looming insolvency, the electorate voted to take the plunge. It ratified Mr. Obama’s drive to erect the equivalent of a Franco-German welfare state. Consider Obamacare, the massive stimulus, failed green-energy boondoggles, record numbers on food stamps, constant extensions of unemployment benefits, public housing subsidies, unprecedented government spending and free contraception.
Voters chose economic security over individual opportunity, handouts instead of self-reliance, statism over capitalism. Rather than rebuking Mr. Obama, they rewarded him. Continue reading
Maybe what Russian professor Igor Panarin had to say quite a few years ago, although off on the timing, might slowly be coming to fruition.
The prospect of once again hitting the federal debt ceiling has provoked the ritual round of hand-wringing about the intractable nature of this $US16 trillion conundrum. But there is a simple, elegant option that involves no tax increases, no spending cuts and just a bit of imagination.
That’s right. Put the entire state – from Juneau to Deadhorse, from the Bering Strait to the Beaufort Sea – on the auction block.
Absurd? No more absurd than the spectacle taking place right now as we skid closer to the fiscal cliff. Continue reading
“How long can a government with a $16,000 trillion foreign debt remain a world power?” he asked at a press conference with Kuwaiti media personnel. “The Americans have injected their paper wealth into the world economy and today the aftermaths and negative effects of their pseudo-wealth have plagued them.” Continue reading
The big contradiction seems to be that a fifth of humanity is living under a communist one-party state within a free-wheeling capitalist economy – a conflict that, on the basis of history, should tear the country apart.
“The spectre of turmoil terrifies the leadership,” says Ferguson. “They face the challenge of managing a dynamic society and that is a real problem with real tensions. But I don’t buy the idea that China is about to implode or disintegrate.”
Harnessing the resurgent nationalism is part of the strategy to contain this threat. So is a policy of economic expansion overseas.
Why does this matter for the rest of the world? For one thing, Ferguson sees unnerving echoes in that mixture of shrill nationalism and overseas ambition of Germany a century ago.
China is already devouring two-fifths of the world’s coal, zinc, aluminium and copper. Now it is turning its attention to foreign territory for those basic natural resources. In Zambia, after Ferguson descends a Chinese-run copper mine, he muses: “Maybe this is the beginning of a world empire.”
Full article: Niall Ferguson: China’s got the whole world in its hands (The Telegraph)
Most people don’t even realize we have an actual war being fought — one that has been ongoing for over a decade. Most people also believe that our economic downturn is part of the usual economic cycle and will return to normal. This couldn’t be farther from the truth. Fact of the matter is, the US Dollar’s days are numbered and America is doing very little to defend it.
In late 2008, when the U.S. Treasury bond seemed the safest investment in the world and the dollar once again reigned supreme as a safe haven, we predicted a Phase Three attack. At the time, we said that the way things would play out, so-called experts would say that it was just a natural and inevitable result of global events. Never mind that these would be the same people who dismissed the concern only a short while earlier. We have documented all of this repeatedly in our final report for DoD (Economic Warfare: Risks and Responses published in June 2009), our book Secret Weapon (www.secretweapon.org) and in this Blog. We explained well in advance that the BRIC nations would call for the end of the dollar as reserve currency, piling on to similar expressions from the IMF and UN. We stated without hesitation that the US Treasury would lose Triple-A status even as Timothy Geithner said it could never happen.
Now, the alarm bells are ringing louder than ever before. But, the policymakers are ignoring the handwriting on the wall, lulled into complacency by lower interest rates paid by our Treasury. Let’s be clear. This is not an “all clear.” Just today, we received some powerful research by Citigroup titled The “Frozen Hell” of a High Deficit, Low Rate Environment. Here are some of the insights that support our concerns:
“As was the case for a decade in Greece, low government bond yields delayed recognition of a problem. The effects on investment spending, employment and income never produced are more difficult to measure than any obvious interest rate spike related to large deficit
Greece’s budget and external imbalances went undisciplined by markets for a full decade. For how long could the U.S.?”
Full article: The Death of the Dollar (Kevin Freeman / Global Economic Warfare)
Another very common objection raised to the Economic Warfare reality is based on the misperception that China is so connected to our economy that “they” would never harm us. [Of course, these are the same people who said that America would never lose our Triple-A Credit Rating.] The idea that “the Chinese” would never harm us is ridiculous on its face, given the proven reality that there are Chinese who continually hack our systems, manipulate and undermine our markets. There is ample evidence of that. The whole concept is rather naive, assuming that all Chinese are the same. Certainly the average businessperson in China might not want harm to our economy. But, how about the PLA (People’s Liberation Army)? We addressed this in our posts titled “Which Chinese?” and “Which Chinese Part 2.”
“Here in the U.S. you may hear many people worry that the Chinese government might stop buying American T-Bills. I think those fears are vastly overblown. The economic situation between China and the U.S. is the financial version of mutually assured destruction…”
Basically, this theory is based on the idea that the Chinese hold so much in dollar debt that they couldn’t afford to see the dollar go down. Here’s the problem. The military doesn’t care. They have a much longer view of things than the next quarter’s export sales. The smug response of those who believe China needs us so much that they must always stay friends is just another example of American arrogance. Now, there is further evidence of what we have been saying all along. We have no idea about what China really holds in dollar debt. They have so many ways to obscure their holdings that we can’t ever be certain. This from the March 2, 2012 Wall Street Journal cover story (Beijing Diversifies Away From U.S. Dollar):
Full article: But Aren’t We Joined at the Hip with China? (Kevin Freeman / Global Economic Warfare)
In 1935, one U.S. dollar would buy you 1/20th of an ounce of gold. By 1968, it was down to 1/35th of an ounce of gold. Today, one dollar will buy you only 1/1,750th of an ounce. The same thing happened against silver. In 1968, one dollar would buy an ounce of the silver metal. Today it will only buy you a mere 1/32 of an ounce.
Talk about debasement.
And the dollar hasn’t plunged just against precious metals. Against copper, nickel and zinc—the metals found in pennies and nickels—it is in free fall too. In fact, the dollar has plummeted against orange juice, whiskey, beans, bullets, pork bellies, single family houses, automobiles, coal, oil, good suits, healthcare, tuition, labor costs—and virtually every measurable commodity. If you can name it, it probably cost more today than it did 30, 10, or five years ago—probably more than it cost last year.
The mint reports that if it replaced the copper-coated zinc penny (it took the copper out of the penny in 1982 because it was too expensive) with a steel one, it would still not be profitable. What’s cheaper than steel? Tin? Nope a penny’s weight of tin would cost more than a nickel. A penny’s weight of aluminum would cost 2 cents. Lead is little cheaper. See the problem?
How about plastic? Anyone for a plastic penny? Clay? Asbestos?
Calls to just get rid of the penny altogether are growing louder. But that will only hide the danger to the dollar for a little longer.
And don’t be fooled. The dollar is in grave danger.
Full article: America Is Looking a Lot Like Ancient Rome — or Is It Modern Greece? (The Trumpet)
Those who deny the reality of financial terrorism tend to use the same basic arguments. One of those is built on the idea that everyone is motivated by money and so no one would intentionally harm America’s economy. There are many flaws in this reasoning and we will likely catalog them in a future post. Another set of arguments is built on the idea that we brought on the decline all by ourselves through terrible monetary and fiscal policy. There is truth in this line of reasoning but it is not the whole truth.
Few people recall that a little over a decade ago our government was running a budget surplus. In fact in December 2000, the Office of Management and Budget projected that the entire Federal debt would be paid off by 2010. Imagine that. It was less than a dozen years ago but it seems like more than a lifetime. Now, we are almost $16 trillion in debt with $1 trillion deficits projected for years to come.
It was in this context that al Qaeda attacked the World Trade Center with the intention of harming the American economy. Bin Laden even stated as much in his December 2001 speech taking credit for 9/11. This was noted in a September 11, 2007 US News article that actually made the case that bin Laden had failed in his economic attack. Ironically this article was written right as the stock market was peaking just before the horrible 2008-09 collapse still haunting us today.
Full article: Understanding the Big Picture (Kevin Freeman/Global Economic Warfare)
When considering the possibility of economic warfare, the most frequently asked question is:
“Why would the Chinese hurt our economy when they are so dependent upon it and have trillions of dollars in U.S. debt?”
Our standard answer is a return question: “Which Chinese?”
It is clearly naive to believe that China is monolithic. Certainly the business community and many in the government would not want anything to hurt the American economy if it in turn hurt China. Having said that, however, there are no doubt members of the People’s Liberation Army (PLA) who have every intention of harming America. We proved this point once before in our post “Which Chinese?” In that post, we documented how the PLA leadership had gone around the civilian leadership, making a dramatic and aggressive statement. Now, it has happened again. Rumors have begun to surface that some military officers may have attempted a coup. Why? Because they believe that the civilian leadership has not been aggressive enough. Should anyone doubt that given the opportunity, some PLA elements would strike hard against us? The collateral damage to Chinese business would not be their primary concern.
Continue reading article: Which Chinese? (Part 2) (Global Economic Warfare)
Additional article: Which Chinese? (Part 1) (Global Economic Warfare)