Attrition

The well established financial institutions in place currently, such as The World Bank, International Monetary Fund (IMF) and Asian Development bank (ADB) lending to Asia for infrastructural development has been a challenge for many countries, for it is primarily the good old’ Bretton Woods system of the West.  The Western conditions are unfair to other countries because they don’t have a say just where the money from these organization can be applied.  China and India for years have tried to negotiate with U.S. congress for more voting power than the four percent China has, while America and Japan is a little over fifteen percent.  U.S. congress has denied the shift in voting power even when China is now the second largest economy in the world. China along with many other countries see this as truly disabling economic growth and unfair.  Many countries are looking at the Western decisions made so far and the repercussion of forced manipulation by the FED and blatantly see how well that is working for the west and Japan as well as Europe. 

This set the stage for the shocking announcement from China's President Xi Jinping that he will open a new investment bank, The Asia Infrastructure Investment Bank (AIIB) to create a new equality and strengthen cooperation and correlation in the international multilateral mechanisms.  Asian developing countries needs are unfulfilled by the current situation and are in desperate need of such a bank.  This would boost the Yuan and boost China's employment securing contracts from Chinese firms along with investing some of the $3.9 trillion in foreign reserves in commercial firms, most of all it would boost China's influence and power.  This has made the U.S. and Japan uneasy China has invited many countries to sign the memorandum of understanding (MOU) they have till April 30 but opens April 15.  I just wonder if it a coincidence it is on the U.S. tax day.

This move by China of course is to veer from the heavily U.S. influenced Asian Development bank (ADB) and The World Bank and International Monetary Fund (IMF).  The system SWIFT has been the FEDs and U.S. Treasury’s money GPS system in Brussels, like when the U.S. government seized Japanese bonds worth over $134 billion, or tracked down and blocked $100 billion belonging to Iran. Since the U.S. levied the SWIFT sanctions and cut Iran off from the USD, the U.S. lost its leverage it didn’t matter to Iran.  When the U.S. did it to Russia Putin went to China, truly anything he could have gained from the States China can fulfill.  Over one hundred and thirty nations have major deals on using an alternative currency other than the dollar now.  China and Russia have more in common than one would imagine regards to belief and history both leaders being very neologistic has gotten the attention from the Saudi empire they are enticed with the idea of a non-USD arrangement since drifting apart over Israeli settlements and conflict with the nuclear deal in Iran.  The U.S. is dependent on Saudi oil and it holds the alliance together because the Saudi Kingdom needs (needed) U.S. security.  The reduction in need for oil from America combined with profound disagreements on foreign policies has crumbled the alliance and friendship that served the two countries for many years.  Since WW2 the two countries have had overlapping interests and the allies grew through the Cold War against the Soviet backed Egyptian force, the U.S. helped arm them though the 1960s civil war and again in the 1980’s against the soviets.  The U.S. support for Israel with an oil embargo upset the Saudis in the 1970’s the Kingdom remained loyal to its alliance with the U.S. in fact pre Iran, it was Saudi money alone that funded Regan’s congressional ban ageist the rebels in Nicaragua.  In the 1990’s Saudi Arabia welcomed over 500,000 U.S. troops inside their country to fight in the first war against Iraq.  The former King of Saudi Arabia Riyadh not only lifted sanctions, then when rising prices in oil threatened the American economy he increased oil production for Washington.  Why this is important? Because Riyadlh had lost confidence in the U.S. “security guarantee” Riyadlh showed his disdain by withdrawing the U.S. military air space used over Saudi Arabia forcing them to have to go around the Arabian Peninsula.  After nine-eleven, the U.S. questioned the empires involvement and the rift between them didn’t stop with George Bush.  Obama’s deal with Iran caused more conflict, adding the Palestine peace plan conflict between the two didn’t help. Obama embracing Mohammed Morsi the leader of the Muslim Brotherhood after turning his back on his American ally Hosni Mubarak infuriated Riyadh, so much so that he gave $12 billion to Abdel-Fattah El-Sissi for overthrowing Morsi and changed the relationship America had with Egypt for good.  This has caused the Saudis to look elsewhere for a new alliance and China has welcomed them with open arms for the biggest oil producer in the world. China being the new chief customer for Saudi Arabia may have ensured the ideal place and time to move into the Petro-Yuan.  The new King Salman bin Abdulaziz Al Saud has stated they want to punish Iran and Russia along with the U.S. trough the drop in purchasing price of their oil. This new found independence of Salman has extended in to world trade, he is on the market for new commercial relations and charting their very own policy path despite what the U.S. wants. The Saudi empire has enough cash reserves to do just about anything they want to.    This is critical for the USD because of the Petrodollar agreement with Saudi Arabia and the U.S. free trade agreement with China. Good old Nixon was so eager to get involved in both situations. Now America could lose all allies and leverage for the now artificially propped up USD that was fought so hard for.

 The reality that our world’s reserve currency is now debt based, the system we have implemented is not working on so many levels. The world’s reserve currency needs to be backed up by a real productive economy like China.  The U.S. was warned by so many advisers that our Keynesian approach will fail and the debt based economic decisions will ruin the U.S.  If the U.S. is judged by the company it keeps, what does it say when forty-six other countries are signed up and ready to go with AIIB except North Korea and the U.S. not saying that there is much in common, except both are run by delusional self absorbs governments.  Others are jumping on board, the United Kingdom was the first NATO partners to announce they will be joining the AIIB and this sent shock waves through Washington as Spain France and Italy along with the Netherlands joined.  Even Germany who is inching towards exiting out of the Euro has joined.  The US, Japan along with North Korea is the only ones that stated that they have no intention or were rejected.  North Korea was rejected and it is uncertain if the U.S. was as well, along with Japan it is said they refused.  It seems that Russia is not so isolated anymore but the U.S. is. They are not invited to the party. Is this what happens when community organizer becomes president?  I am sure he personally is not really making the decisions, but who then is the true puppet masters and why?

China along with the world has seen the empire of debt that the U.S. has created, sovereignty of client counties abused, disrespect to allies and the selfish nature of the U.S. Washington has not made too many friends along the way to global debt. Other countries would rather gamble on the historically corrupt Chinese empire and join a new unknown investment bank than deal with the reality of what our monetary system created.  This move may not benefit the average Chinese citizen. However, the one percent of rich Chinese control more than a third of the country's wealth, and in 2012 real estate accounted for 70 percent of all household wealth, and now the Chinese are buying massive amounts of land worldwide.  A few years ago, the U.S. would have never even assumed that any country would trust the Chinese central communist party for a reserve currency.  I have a feeling this plan China is showing has been in the works for sometime now.  China has been buying up assets in the U.S. and all over the world; they even wanted and offered to buy out Canada’s oil.  China’s anti corruption and transparency campaign is starting to make sense now paving the way for other countries trust. Many are disgusted with the secrecy and manipulating the U.S. government and Federal Reserve have been doing for so long. Anything the U.S. can offer another country China believes they can too.  China wouldn’t mind helping Iran out with a few war toys, since the U.S. would intervene any weapons shipped to Iran but turn a cheek to a Chinese warship destroyer passing through.  Let us not overlook the multitude of sanctions surrounding Iran, they would be fools not to join this new and intriguing entity.  On the other hand, possibly the U.S. overlooked the Joint military exercises these countries have been partaking in, doubting there advancements towards new alliances is Washington’s big mistake

 This time around the war plan that the U.S. had for Iraq wont stand up to the mass military that would surround the strait or the hundreds of miles of coastline involved.  For all we know China and Russia have been dropping off weapons and picking up takers of oil for some time now.  Or teaming up to solve China's demographic issues along with Iran’s massive youth issues so they marry off the Iranian women for the overwhelming number of Chinese men in waiting.

Trying to make light of it all seems impossible this is a big move and Iran is looking at us wondering if they should pull the trigger because Hassan Rouhani saw first hand how powerful and calculating the U.S. military is when we started a war over the petro dollar with Saddam. Look at Gaddafi, he was our ally until he wanted to quit selling Libyan oil in USD.  The U.S. doesn’t play around with the petro dollar.  The WW3 everyone says is coming has already begun it is just a financial war, this time and I don’t know if the USD has that kind of arsenal with our debt.  Therefore, we may have to blow something up or create other systematic events in our favor.  The question is will the Obama Administration have the backbone needed for this war? 

America has changed from the gun totting pro militant patriot it once was.  American individuals have a different perspective when it comes loyalty to America and its military.  Primarily Americans in general are individualists and don’t rely on community or value communal benefits of necessity that other countries must rely on to survive.  Fighting for your country once involved protecting your property and spouse now Americans are just trying to defend themselves from American banksters and debt.  Divorce rates have never been higher and the poor and poverty-stricken are joining the military for saviour not because of love for the great USA or loyalty to the nation.  Why would they?  The harsh reality is that we have been transferring all our money, industries, technology and employment to china for years…willingly on a silver platter, “here take our trillions you need it more than our people” Greed apparently has no consequences.  I mean maybe some “other” country has a NSA tape with some amazing information or why would any of this be taking place.  This AIIB is a huge game changer on a global scale and a direct threat to America.

            China made some new friends; even the threats that Obama gave Australia and Israel about joining the new bank didn’t change their mind one bit.  I though Bush made enemies, I would bet the Chinese Embassy hasn’t forgotten the U.S. bombing mistake and just to top it off with personal disrespect, the U.S. refused to apologize.  The Obama Administration is on a whole new level of being hated by the world.  Manipulation and lies are becoming more and more transparent and trying to cripple other counties by manipulation is becoming clear.  I won’t even get into the Ebola and oil correlations or the U.S. efforts to keep China out of Africa; we sent three thousand troops to the borders of Africa to fight Ebola.  Yet we will stand down and watch millions of people displaced knowing we could wipe Isis out in a day and do nothing.

All the world economies seem to be on the verge of a major bubble bursting one way or another.  America pushed so hard predicting china to e the most epic bubble burst ever.

It just may be that China could be the next IMF.  Last year China campaigned the de-dollarization of the only thing America would start a war over, the petro dollar.  By leveraging its rise as an economic power with hydrocarbon exporters.  This of course had Putin and most of the Middle East very interested, Putin has been attacked by the U.S. in every way since his petro dollar exit.  This is a direct move to cut the dollar dominance in global energy scene.  In fact, China even parked a Navy destroyer right in the Southern Iranian port along with a logistics ship just to say they were “combating piracy”, this was the first time in history they made a show of foreign support.  Ironically, Russia docked at the same port on the way back from a mission.  The aid offered by both was seen by Iran and was welcomed.  The mouth of the Persian Gulf, The Strait of Hormuz is a passage that ships a fifth of the world’s oil.  This is interesting because these ports are major locations, the same locations that ISIS and Hamas (really the U.S. and U.S. or Russia maybe China) are causing such turmoil with a “risk” of cutting off the ninety-five percent of Asian bound oil.  Most of the Middle East has relied on the U.S. for security and direction.  In 2012 China swapped around $5.5 billion with the United Arab Embassy for oil in the Chinese Renminbi, this showed others like Dubai and the Persian Gulf it could be done.  This last year China also set a deal with Russia that over $500 billion in gas purchased will be in renminbi.  When china expands to hydrocarbon bought and sold in renminbi, Americas influence will no longer be needed and our “foreign polices” that so many counties view as imperialistic will fold.

  Our current practices are not set in stone and are sure to change.  Putin must have seen this as a huge opportunity to merge with China and trade land or gold for a new reserve currency.  Between Russia China and probably India, they have enough Gold to back the Yuan taking it back to the gold standard that so many are yearning for, or a basket currency.  After seeing what Quantitative Easing has done many if not, all countries are looking for any alternatives.  Not just oil for gold, other obtainable assets like arable land, or geo political positions.  The Petro Yuan is already taking place and has been.  The Peoples Bank of China (PBOC) has been swapping with more than thirty central banks internationalizing the Renminbi though external trade proving it could function just fine as the new reserve currency China has gotten the attention of energy producers, being one of the mass consumers, at the rate of growth they are the market in the future of hydrocarbons energy trade.  Once the Saudis reject the USD for oil America will be done.  Its no wonder Obama has been spending so much energy kissing up to Afghanistan and the Saudi empire because while he is worried about immigration so we will have a military in the future other world leaders are immigrating on the reserve currency

Until China unpegs its currency from the USD the dollar will remain strong and winning.  The FED will reset the debt based currency one-way or another.  The reality is the evil régime of America just may be preferred to what a mix of a Russian or Chinese overlord could possibly be like. .

China and Russia and most of all the FED all know all china really has to do is buyout the seventy to one COMEX gold contracts and demand that they delivery, POOF, the whole ponzi scheme is blown creating chaos.  Possibly the FEDs worst nightmare.  Don’t underestimate the power of the FED they are well aware what is taking place and the domino effect it will have, on every level.  Not to give them too much credit but let me just say they are not naive by any means and extremely resourceful.  America’s Powers That Be (TPTB) would never allow COMEX to default if MF Global formerly Man Financial is any indication of just how much influence TPTB have when needed.  Was awarded primary dealer status in 2010 Primary dealers and unregulated by the FED to buy and sell U.S. treasuries at auction was counter party to the Federal Reserves Open Market operations.  The same MF who ended up admitting to federal regulators in 2011 that around $1.2 billion was missing from customer accounts.  Just several days before the bankruptcy, they transferred funds outside the country.  MF Global acknowledged a shortfall, yet The Wall Street Journal reported that MF Global would seek chapter eleven-bankruptcy protection, after investing more than $6.3 billion in sovereign bonds issued by European countries that gave a chapter eleven grand total of $41 billion.  When you see the reality and lack of real regulations for the chosen few, it gives you an idea proving they will do anything before allowing any kind of real default regarding COMEX or any other large entity, just like the London fix, COMEX would become irrelevant.  America will just reset and this could be the master plan,

 America will stay king by any means necessary we can’t forget that.  Progress is what Obama keeps preaching, let us remember that Stalin killed thirty million of his own people in the name of progress, the Obama Administration is just killing an estimated 318,000,000 people slowly and financially.

Litmus test

This week has proved to be one of the most jaw dropping and thought provoking weeks for myself. Last year I wrote about the direction of the USD on a geopolitical scale, my thoughts on Russia, China, and Iran not what we see or hear on the censored news or some crazy outlandish one sided conspiracy site.  I have tried to be neutral and non-bias (hard to do) my opinions are however backed by real facts and my attitude towards society and government, banks and corporations justified.

            Let me begin by stating the obvious that I am concerned about…Did no one see the Russian Ruble and Chinese Renminbi as a pair in the currency futures trading!  Putin has been on a massive de-dollarization campaign since he left the petro dollar last year.  His meetings with heads of countries like China and Iran along with many others including North Korea sparked my interest as he spend a large percent buying up massive amounts of gold from the Shanghai Bank instead of saving the Ruble as oil fell.

America is being  marginalized.  While the American President has been reforming immigration and healthcare, he has been in complete denial in regards to pissing Putin off and making more enemies than any other president known.  Our allies are disappointed and now China and Russia are teaming up and let us not forget whom we are going up ageist.  I wrote last year the Putin was putting a team together and now we see this all coming together as conflict in Yemen grows Iran and Syria seem to be looking to Putin as not only a new partner but as a major solution. With all the chaos and team antics that Putin is up to between the US president and the real people running things the US bank Cartel they will not let the USD fall this week for fear that it will show weakness. Even though generally we see the correlation between the USD and oil, I don’t feel this time we will, price manipulation trumps all in times like this

Don't Burst my Bubble

“There is no means of avoiding the final collapse of a boom brought about by credit expansion.  The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as the final and total catastrophe of the currency involved.”  ~ Ludwig Von Mises

The United States is now based on debt; this perpetual debt has come from the promotion of wealth and financial security.  Some may say that consumers and borrowers were coaxed into the borrowing to expand growth in our economy by spending.  We saw the outcome of debt and mass loans can do in 2008.  In 1999 through 2005, the housing market was up trending and the federal National Mortgage Association (Fannie Mae) wanted to make buying a home more accessible to everyone.  In 1977, The Community Reinvestment Act gave strong incentives to lenders who would loan money to low-income borrowers expanding the role of bankers to loan sales men.  In 1980, the Monetary Control Act Deregulation made it so lenders could change the interest rate depending on the borrower's credit score, the lower the score the higher the rate, unfortunately a low score is a sign of debt or non-consistent income. In 1982, The Alternative Mortgage Transaction Parity Act gave way to balloon payments making a final payment much higher than original payments and Variable Interest Rates Loans, a loan that fluctuates over time.  Then in 1986, The Tax Reform Act that lowered the top tax rate and raised the bottom, it was the first time in income tax history and gave back substantially if you bought a home.  All of these Acts were to entice home buyers who could not truly afford a home.

 This gave way to a real problem called Sub-prime lending.  In 1999, the sub-prime loan mortgage market exploded and anyone with bad credit, no credit, low income, no income could get a loan.  Sub-prime loans are primarily used to finance mortgages that Prime loan qualifications cannot meet.  This added nine million people to the ranks of home ownership, more than half were minorities.  The people were uneducated about the loans and the consequences that could take place.  The sub-prime loans offered are expensive and have major penalties and higher interest rates that can make the payments overwhelming as the rate increases.  The people knew little about the mechanism of a sub-prime loan, and eagerly singed papers to fulfill their dream of home ownership.  The worst mortgages were offered to the least qualified, Adjustable Rate Mortgages (ARMs) like interest only or payment option ARMs would reset after one to two years, then change weekly or monthly. As the increase in borrowers flooded the market, the home equity was rising and the borrower would sell or refinance before the rates would adjust, at least that is what the banks would convince you of while you were signing. They knew what they were doing.

The Federal Reserve lowered the Federal funds rate 11 times, from 6.5% in May 2000 to 1.75% in December 2001. This created a flood of liquidity and growth in the economy and other lending markets. The Securities Exchange Commission (SEC) relaxed the net capital that freed them to leverage up to 30, even 40 times their initial investment in 2004.  Goldman Sachs (GS) The Lehman Brothers, Bear Stearns, Merrill Lynch (MER), and Morgan Stanley (MS) all acquired new lenders; including Sub-prime, lenders securing trillions of dollars in mortgage backed securities and saw bigger profits than expected for years.  In return the stocks kept rising.  The FED began raising its rates up to 5.25 percent.

As people became aware of the downfalls the loans held, the horror stories were airing on every headline creating panic and people stopped buying and started defaulting on their loans.  The lenders of the sub-prime loans were filing for bankruptcy weekly, in February of 2007 over twenty-five companies filed for bankruptcy.  The news spread like a wildfire.  The degree of leverage by the large companies could no longer be supported and they “broke the buck” by creating capital risk with leverage.  Many investment firms were unable to cover the credit derivative contracts.  They halted the sales of short sells trying to stabilize the market, but it was too late.  The panic and uncertainty spread in to the interbank market and they needed to prevent it from becoming a global catastrophe.  The government then had to issue bailout programs with help from the European Union and Japan and other central banks came together using conventional and unconventional methods to provide liquidity support to the institutions.  The Fed cut rates along with the CB, Sweden, China, Canada, Switzerland, and The European Central Bank.  It was not enough.  Each with their own versions of bailout packages, outright nationalization government guarantees, and finally The U.S. came out with The National Economic Stabilization Act buying up billions of distressed assets.

We still have seen the effects of the bubble that burst in the mortgage market; the market has not fully recovered and may never.  Economic cycles that are manipulated though the monetary expansion, this debt can create a large bubble, much larger than the natural cycle would hold.  With that, larger bubble will come much larger consequences; right now, the magnitude of this bubble we are facing in 2015 is bigger than it’s ever been in history.  Since 2008, the Central banks (CB) and Federal Reserve (FED) removed collateral from the markets that were high quality.  The American people and government are even more leveraged out against even smaller quality assets paying a much higher price than they ever were in 2007. The Wall Street Journal came out with an estimate that states “a third of traders have never or will witness a rate hike” this era has driving a rise in leverage.  Chain reaction leading to the collapse has been set in motion for some time now.

The U.S. Treasuries has a rate of return that is considered “risk free” rate of return that is the assets that all assets are priced based on riskiness.  The rate has been falling for over twenty-five years.  These falling rates then spread to other rates of return making investors barrow or turn to leverage to gain a higher return.  While the past thirty years, we have seen investing risk getting cheaper because the bull market those bonds have been in.  This time it will be much different the crash will be all assets worldwide and it will happen simultaneously to devastate huge segments of the global population.  The Fed can keep printing money until they own all the publicly traded companies and we all end up working for the FED or government.  The powers that be like the major investment institutes, CB the FED whose actions have perpetuated and continue to exacerbate the bubble, know just what the outcome of their actions and decisions will be.  The European Central Bank, The World bank along with The International Monetary Fund (IMF) all understand and have understood just what this next massive credit bubble and most large corporations wont be hurt by the outcome.  They know they have laid the groundwork for it and in some way, they will profit from it in the end.  The bubble will only hurt the public and again their personal savings accounts will be drained in the bailout funded by hard working middle class, until they have, nothing left to contribute it will be for the good of the nation, of course.

American Psycho, coming to a government near you!

 

     The last man standing could be the new theme for our global leaders as we witness our alias and enemies destroy each other.  Most men would take a beating once or twice verses being a slave for life.  Most of the governments globally are slaves, slaves to the banker cartel looking for anyway out from the grips they hold on each country’s destiny.  Now we are slaves to technology, and media as a whole by the large corporations, banks intelligence agencies, and such.  We would love the idea that our people and economy will be saved, saved by our next leader or government.  This is also the premise of fairy tales and they too do not exist.  Our world is motivated by money and power, bailouts, loans, all free money they don’t care about the restructure of economy or government.  We are brainwashed and persuaded to believe that our vote and what happens in our world still counts when it does not even matter at all.  The economic model of our world is broken; our economic and political systems are not working.  In the US, our financial system is leveraged out much than in 2008. Yet our “leader” is still convincing us that we are doing better than ever.  Our true reality is that most of our world leaders we know and see are just the pawns and do not have any control over the “masters” playing the game.  Hope is a strange thing and really that is all you have… nothing else is on the table for us.  Our world is being run by an anonymous dictatorship, with obvious dictatorial traits.  The people our leaders represent have little or nothing at all; in common, they are not even the one percent.  Do you really think that they are fighting for the masses? The UN, NATO, IMF, FED, or the World Bank are fighting for themselves and power, not us and the economy.  They are fighting for supreme power, draining every source and growing more powerful.

            Power is a complicated thing. In Physics power is defined as the rate of doing work equivalent to the amount of energy consumed per unit of time.  Power itself is defined as the ability to act on, with the capability of doing or accomplishing something. The fact is, Power is so attractive that many people can and will be completely influenced by the attractiveness of it.  The ability to do, control, command, and sustain it, are all aspects of power.  Women are proven much more attracted to powerful men and are generally unaware of the power enticement correlation.  Beyond the power attraction lays a deeper oddity. What other kind of people power attracts.  In the business world, we have found most powerful jobs will attract a specific kind of individual, they are called psychopaths and sociopaths.  Many studies have proven this over and over again. It is scary to think that one out of every two hundred humans is a psychopath. Most psychopaths have no idea they have anything wrong with them at all and will never seek help. Forbes did an article once on the top ten jobs that attract psychopaths, very disturbing but it makes sense.  Most were all power positions with out need for empathy. This does not mean that one of every two hundred people will go on a killing spree or have disturbing remains in their freezer.  It just means that they lack empathy or emotions with a antisocial behavior, but all have complete disregard for anyone else but themselves.  It is a personality disorder that makes it so scary not just a lack of empathy, they tend to have a superficial charm with egocentric behavior, they are highly persuasive and just love and feed off power. Perhaps those jobs can even create psychopaths. The question is how many are in power of us on a global scale? All of them.

Putin Together a Team

Putin stated his opinion in a speech today from Sochi, he talked about the USD and how it is not the reserve currency that we once had. This was after he had just met with princes from the middle east, it seems Putin has started to form a team, and the US is not a pick. Vladimir also expresses how the US is dismantling its allies and the growing risk on global security, and international relations. He calls for interdependence globally, and looking for new economic ties. He stated that the global leaders are blackmailed into their idealism. That the US has a “self Appointed” leader, and humiliates its partners. Clearly Putin is not a fan of the US. Should he be?

He implied that social media in the US is running things. History of the US social media shows he is right. Would we see Russia differently if the media hadn’t portrayed it the way they did? “My whole life I have watched movies like Top Gun, Red Heat, etc. movies, shows and books that influenced so many of us to believe that the Russians were just evil villains, in fact it was instilled in us though many forms of the anti Russia campaign. He however is talking about a much deeper level of media run society. That we are being fed lies, while the truths are manipulated, concealed by TPTB, they say we are safe and things are fine. I personally would rather spend six hundred dollars on PMs than an iphone, but ten million people don’t agree with me. To TPTB us being blind sheep is better than the alternative, each American standing up grabbing a gun, taking out the fiat that doesn’t exist, investing in gold instead of a digital decimal point and seeing just how stable we really are. What the kids are learning now is very different than the lies that were in the text books just a few years ago.

 The more we withdrew and retreated, the more aggressive Putin has become, he may feel he has to prove himself, show his strength after the cold war era. Vladimir’s campaign seems to be a campaign for anarchy. What he is stating is terrifying because its so true. Out of all the world leaders we have right now, he is the only one that is making any sense of things, and other countries are taking notes, countries seem to be very  intrigued at the quite isolated Russian, now not being so quite or isolated. Should we be looking at what Russia is doing it seems like a few counties are climbing on board with going back to a classic gold backing, Germany, The Swiss, China and India not to mention the others on this team like Iran who if they jump ship on the USD well we saw what happened to Saddam and Qudaffie when they bailed on the USD so even though I am a true believer in PMs, I know what the US is capable of and know if they are pushing against the petrodollar and going for the gold we will find a way to make the price of GLD as low as we can. Almost time to hold short my friends and have a great weekend

Follow the yellow brick road

Experiences in Asian culture concerning paper money has not been so good, historically they have more tangible assets than we Americans do.  With the economy in such disarray, it looks like our own negative fiat experience is just beginning with the monetary challenges that we face in the East and West.  China and India combined make about one third of the global population, this is not including Russia and Iran who both seem to be on the same page as China and India.  Historically having and buying bullion has been a strong cultural way to secure their disposable income for centuries. Gold has not just been a social standard for these countries but a necessity, an insurance.

 The SGE is pushing to provide gold options; this could change the London fix price, something that they have been working on for some time now.  So will we see a mass selling spree of bullion?  I think not, not when it comes to physical gold.  We are not seeing just a trend in the buying of gold; we are experiencing a major shift in structure as a whole.  Russia and Asia are acting like their own CB by veering from the flood of QE and securing their own currency truly diversifying their own wealth backed by gold not oil.

For instance, Russia bought 37.3 tonnes of metal during a time when political tensions are at a high and Putin’s own currency is falling hard, they buy gold.  Putin does not seem concerned with much but the buying of metal, since this was the largest amount by the CB in the last fifteen years.  Putin’s battle with the bankers seems to be reminiscent of the Battle of Stalingrad or Napoleons invasion, he is finding a way to defeat the fall of his currency by investing in gold.  We are seeing this with China and India showing high numbers from the SGE surpassing last years.  The festivities this week in India caused gold to reach a high, during this week 20% of gold purchased annually happens during this festival.  In India, half of the jewelry bought in a year is for the some 10 million lavish weddings that take place, some lasting days.  Where the gold that is bought and passed down to the new families is considered more important than the bride and groom.  Since they are the second largest buyers of physical gold India makes up about 32% of the worlds gold buyers, we see a lot of volatility with the price as the puppetries try to keep it below a reverse level.

Fear of the FED and higher rates cause traders to get cold feet when it comes to gold, and you see more and more of the fluctuation in price and stocks as the market swings. All this year we have been seeing an anti gold campaign in the two largest buyers of the precious bullion with luxury bans.  We have to remember that India’s Reserve Bank is a branch of England’s (Rothschild’s).  These countries seem resistant to the ban and gold and metals are still in high demand, so why is it still low?  That way they can buy it up at a low cost.

A Bear and a Dragon walk into a bar...

I have referred to the petrodollar before with emphasis on it being the only real cause for war.

With every other geopolitical catastrophe, taking place it is hard to focus on just one.  Russia and China seem to be climbing in bed together with a new energy deal, where Russia would provide oil and gas to China.  Russia, who has been mimicking China and buying up gold in major quantities this last year.  Putin may have more in mind in doing this, knowing this could entice China into further trades we do not see just.  In fact, instead of worrying about its own currency, Russia has had a focus on gold even issuing new policies to purchase much more of the bullion.  Looking at gold ratio charts in the last 13 months Russia’s gold reserves increased over 33%, with more than 10% of Russia’s reserve currency is held in bullion, and that is just increasing daily.  As they get closer and closer to the EU’s 40% would take currency back to the gold standard, then maybe people will see Putin’s plan as he is selling his USD for gold.

We know Putin is not a fan of the U.S. and aligning itself with China could be huge in a long-term perspective considering they could truly isolate themselves with land and sea.  Russia has many raw materials and China has the manufacturing capability.  This could cause a truly massive power shift from the U.S. dominance into the hands of Asia.  Just to give you an idea of the foreign gold reserves these counties are holding, China is number one in the world, with $ 3,821,000,000,000, Russia is number six with $ 515,600,000,000, and the U.S. is number twenty, with only 4% of  what China has, so in lame terms, they have 96% more than us.

            As an American, I am so disappointed in my country, its corruption, and lack of good decisions in general.  We are possibly trying to strong-arm Putin, by driving down the oil prices and the Ruble.  However what we are doing will not last, Saudi Arabia wont let that happen, OPEC wont let it happen, just how long till a civil war takes place and some major bombing right on there pipelines?  Putin is by far not an idiot and has a strong military backing and unlike other leaders, he does not need a vote, poll, or any congressional approval to bomb or make any moves that benefit him.  Russians will survive, unlike the Americans they do not have the faith in government, Central banks, or leadership as most do after the last Dictator let millions starve to death.  It will be interesting if all of a sudden we see oil being bought in the Euro, Europe buying gas and oil from Russia, all because of the gold backing and loss of the petrodollar.

"It Shall Be" Are we keeping the faith?

If money was just based on faith instead of a physical commodity like gold or silver, we would need a name for it. That is just the idea when Fiat money came into play in the 20^th century.  Fiat translates from Latin to “it shall be”. With Fiat money the risk is huge when it comes to hyperinflation, since fiat currency is just a type of paper printed out, it has nothing backing it in true form. Since the change Nixon ordered in 1971 after the collapse of the Breton wood system, the conversion from the USD to gold no longer exists. Fiat money was then printed out, in fact supply and demand has nothing to do with fiat money, it truly is just paper. If the people lose “faith” in the USD, it will then be a worthless currency.

            Many gold holdings go unreported. Central Banks, countries and larger corporations are known to stockpile gold and metals without detection. We are seeing many other countries right now buying up gold and other metals in mass quantities. It is crazy to think that other countries are returning to a stable monetary system as we had pre 1971, a reliable gold backed currency. They are possibly quite ahead of the game. In the U.S. we see that our society is breaking down, with a population that cannot pay for basic needs or sustain itself with rising prices. The only reason we are not seeing people lined up for rations is that they now get food stamps and welfare via card.

           PMs seem to be the one thing overtime that has been guaranteed to hold value. Paper money is a game and unless you do not mind losing a lot, you can play, but remember there is a counter party who knows and plays better than you and backs every paper dollar printed.

Now that the Shanghai futures market is open with what seems as a better offer than COMEX, stating that it is backed by actual gold not just highly leveraged paper, we see a slight decline with the PM markets, it’s just the time difference and volume that are swaying it.

 China shows photos of a fashion catwalk with 13 million in gold bars seen though a glass floor just for decoration, so you can imagine what the investors are holding. Even with the luxury bans happening, smugglers are finding ways to get gold in to China and India. Look at the charts of China and Russia, they are accumulating mass amounts of physical gold and the demand is growing.

Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $8.05, with a gain of +18.38%
Buy Gold $1191.50, Currently at $1223.20 for a gain of 2.66%

Oil for Thought

Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $7.30, with a gain of +7.35%
Buy Gold $1191.50, Currently at $1210.20 for a gain of 1.57%

 In 1966 the central banks had 14 billion in U.S. dollars, the USD was bound to the gold standard so with only 3 billion in gold to cover the foreign holdings, it just wasn’t enough. When Nixon declared to “defend the dollar” he removed the USD from the gold slandered in 1971, and the USD became a debt based policy. He claimed he did this for monetary stability.

In 1973 he had secret meetings with the head of Saudi Arabia, and created a deal called The U.S.-Saudi Arabian Joint Commission for Economic Cooperation (JECOR) this stated that with a few exceptions, Saudi Arabia would sell oil in only U.S. dollars. Then invest the rest they made into the U.S. treasury markets, that way the IMF could give loans to other oil importers. The petrodollar recycling system, Saudi Arabia would only buy/sell oil in us dollars, this was presented as a buffer to the rising oil prices. The U.S. monetary restraints were removed now they could increase money at will, Fractional reserve banking was taking place.

Currency is everything to the powers that be, we see a major pattern within the governments and individuals who control the markets. Like gold, fossil fuels are limited and have been a billion dollar investment for major corporations worth killing for, even starting a war over. The main reason for going to war is challenging the USD, it’s the only thing our government sees as a true threat, we would love to belive its for the good of the nation or we are helping “them”, all the bogus reasons they state. As long as we need fossil fuels, and its sold in USD there will be a demand for the USD, America will do anything to keep it this way.

In a 1994 an interview with Dick Cheney, he is asked what will happen if the US invades Iraq, he actually lists off country by country how they would be affected if we  invaded Iraq. Scary thing is, it is happening in the present day, since we went to war with Iraq, he goes down a list of countries and groups that then would be in power, how the direct events would take place and end with Iran. The same Iran that we accused of making or having a nuclear weapons except they didn’t, even stated that they had no intention of doing so. Since 2004 Iran has been organizing their very own oil market and it wasn’t going to have any ties to the USD.

No surprise the government knew exactly what would unfold, the risk of the nations and lives that would be massacred, the money and military that would be expunged. I have stated before, I feel like these threats of terrorists and disease are extremely convenient, that all of the places these “events” are taking place, are in regions that we want access to, or need to gain control over. You may think to yourself, our government wouldn’t risk so many things for money and power, or oil. Oh but they are,  the Iraq war we campaigned for was primarily a result of Saddam Hussein switching the oil sold in USD to Euros. This of course is information that the American people were left in the dark about, even though this was the biggest geopolitical move of the nation.

Lets put it all together, Dick Chaney was also member of Project for a New American Century, they released a strategy called rebuilding Americas defenses, Strategy Forces and Resources for a new century. A way to expand the U.S. dominance worldwide, with major funding for the military spending. This stated that enforcing this would take years to achieve, “absent some catastrophic and catalyzing event similar to a new Perl Harbor”. Then 911 took place one year later. TA-DA, a new Pearl Harbor. We were able to invade and even impose the patriot act, without any resistance. While using terrorists as an excuse, weapons of mass destruction was a way in, a way that the people saw as justification. We know North Korea has weapons of mass destruction, you do not see us invading them.

As soon as we gained control over Iraq, the oil went back into USD.

Keeping up with the Keynesians

Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $7.20, with a gain of +5.9%
Buy Gold $1191.50, Currently at $1207.60 for a gain of 1.3%

October is said to be the most frightening of all months, not just for costumes and Halloween, fear fest, etc. October is frightening most of all for traders, this is the month when the market has crashed in the past, including in 1927, 1987 and 2008. It’s no secret that this time of year is a tricky one (no pun intended), many past reports show even with the decline of S&P and large-cap index companies, it also shows October to be one of the best performing with returns at 10.9%. Personally, I don’t see the month having as much to do with the fear in the market as what is taking place in the geopolitical and global economic realm.

            I feel redundant saying it again, but now that the economic data is out, I can finally stop preaching about how the dollar is weak. The previous reports were wrong, the USD along with our economy is on the brink of collapse. Many people have lost so much faith and respect in the USD, that eventually they will turn to a greater currency. Could Harry Dent be accurate when he invested in Australia the way he has, will that be the better economy to live and invest in? Keynesian economics is dead and gone, now if they could print out deeds, we would at least have some collateral instead of just a mountain of debt. Even then, we would be entrapped in mortgages. There really is no room for growth at this point, we as a nation are tapped out due to the depletion of cheap energy, and an array of greedy puppet masters fueling the people and the market with blatant lies.

QE isn’t going to end just yet, not with the negative interest rates in the Euro and its uncertainty with investors, not to mention the bail-outs. The USD is only the lesser in all the evils, not truly a safe haven for foreign investors, it is just has the illusion it is. The capital we had from the colonial era is gone and we have piggybacked on societies’ that had our “new” technologies and ideas. With the huge entitlement outlays to fund, the U.S. will have to keep borrowing and printing, creating more and more debt.

Maybe I could have been spot on with my prediction that the manipulated rise of the dollar was to bring down the price in gold. It would be interesting to see how much bullion JP Morgan is hoarding along with the other owners of the economy. With the “revised” corrected data out on the housing and economics of the U.S, I am shocked to see just a small change in PM’s I would have thought that gold would be skyrocketing with the information released. 

Did I mention the COMEX manipulation? Let’s touch a little on that, traders are to believe that technical analysis and PMs is totally out. It’s not, just learn from the manipulators, they know what traders will do. It’s like getting into the mind of the puppet masters, Central Banks, the FED, etc. Volatility in the market is high in October with record fluctuations happening even higher. Singapore’s holiday and the Chinese market being closed for a week have affected the slow rise in PMs, however when it opens Wednesday and the new SGE reports come in, my prediction in gold skyrocketing has just begun.  

"All the perplexities, confusion and distresses in America arise not from defects in the constitution…, as much from downright ignorance of the nature of coin, credit, and circulation" — John Adams, August 25, 1787.

No Sleep in the PM

October first to the eighth the Chinese have a large holiday in which the Chinese markets shut down for the entire week. Being that they dominate a large physical amount of the metals market this week might be the time to buy in when it comes to gold. The only problem that I have is that recent surveys are showing that the “bullish” attitude of investors is at a low when it comes to gold around 18% when compared to the dollar at 87%. I have mentioned before about china and India’s anti luxury bans and feel this plays a huge factor on the low levels. Russia may be the ones to keep an eye on when it comes to buying PMs, forget statistics and fundamentals, technical triangles, etc. When the Russians raise their holdings of gold by 0.6% we should all take note. PMs are still available and cheap right now, this may not be the case soon enough. The uncertainty of global destruction is now. We have major threats to all of us as investors, while the majority of people are listening to what the media is spilling, the untrue propaganda that sways the market and the blatant lies being fed to us. We traders see a bigger picture on a grander scale we are constantly strategizing and thinking ahead. Could the lower prices be intentional by the US to drop the price of gold because our gold vaults are empty and who really knows what deals for the physical PMs are truly taking place. Holding short bat 1309.88, current price 1208.00, a current gain of 7.7% Fxmade2trade

Keep it on the LOW, LOW

Most traders think the market will turn around if they hold on to their positions. For the most part, they are correct and successful at doing so. Traders do have a technique; they have a strategy and rely on all kinds of information, trends, and data, fundamentals a trader will preach. You can waste days, even years reading traders tips, and articles. These are all opinions; you cannot predict environmental or political changes. You could follow the scripted rules of trading such as. “Keep the money and the trades moving, find a strategy and stick to it,buy low, sell high, and my personal favorite, rule number one, make money, rule number two repeat number one”. Most trading information is just peoples ideas of what will happen, and charts are only a small part of the art form that is trading. Right now, the metals market is volatile and bearish and trending downward, silver had hit its lowest in four years. Is it an oversold market? Is it the suppression by the central bankers? Volume is shifting the market and playing a major role in all of this. Looking at the charts, there seems to be no indication change is in sight for metals. Even looking at a sixty-minute chart, where you can see the fist indication of any movement, none is in sight. My thoughts are timing truly is everything, let us say you have the ability to move the market, and not really play by the Comex rules. We know certain times of the day traders are much more active. 11 am is the highest; the lowest is around 5 pm East Coast time. The lowest time is when less people trading, so it takes less volume to move the market. Looking at volume should be key to making your move. Volume can indicate the hidden agenda of the “rule breakers” they may be playing on something we do not see. The public will react to the volume change. Humans they know are surprisingly predictable, you can bet the billions of dollars spent yearly on the psychology and sociology of marketing teams will guide those major players’ trades. They are not just trading in the market they are trading the conformity of human nature not. As a trader, you need to look at all the information out there differently. Say you are an art critic, a chart would be an abstract painting anyone could interpret it in so many ways, seeing all the different aspects and beauty in the way it looks. However, “market activity” is what it is, it does not lie, that is a huge indicator on what move to make. Volume con be controlled to an extent, for instance, we do not see the low in gold that we do in silver. Indicating the buyers are refusing to let the sellers take it lower, you can see this by looking at the volume. This is only some information; let us not get ahead of ourselves by believing that the downward trend is at an end. All this shows is the buyers won this round. Holding short at 1309.88 current price 1217, with a gain of 7% Fxmade2trade

E = mc2

The U.S, Britain, China, Germany, and Russian UN Security Council members are now making deals with Iran for nuclear weapons. Oh! I’m sorry, not weapons, for “environmental purposes” (said sarcastically). This deal is to take place by November 24 Britain’s Prime Minister David Cameron seems to be leading the support Rouhani campaign. Cameron said, “That Iran should also be given the chance to show it can be part of the solution, not part of the problem.” This said from a country who wanted nothing to do with him since 1979. Rouhani after publicly blaming the U.S. for the way the Middle East has been overcome with violence and terrorism. Or… he is still hurt about us taking his nuclear power away in 2005, when his over confidence and ego got him demoted (said he resigned) from his position as the top nuclear negotiator. International Atomic Energy Agency (IAEA) saw his need for nuclear “power” to be a sensitive topic with the political issues at the time. Now he wants to team up. Please do not forget in the first press conference after he won the election, Rouhani said, "the ultimate responsibility to resolve the Syrian civil war should be in the hands of the Syrian people.” Now such a change of heart in Rouhani, such a humanitarian. He who has in the past been accused of being “power hungry” with an extreme vendetta against the U.S. We now have a common goal in defeating ISIS. Even the Brit’s are reopening embassies and we are making nuclear deals. Perhaps instead, we should team up with the Shia, the Sunni, and the Kurds. We MUST have other reasons or is it other resources? Is the U.S. worried about Iraq’s new government or military operations that no one seems to be talking about? Iran saw what happened in Afghanistan and the Karzai government we created and what came out of that. So yes, the faith Iran has in the U.S. is understandably limited, if any at all. It seems Rouhani knows that we are all in need of Iran’s help to defeat the threats taking place right now; he seems to know he is holding all the aces and the nuclear power is on the table. Right now The movie War of the Roses is somewhat how our relationship with Russia is now and Rouhani publicly slandering the U.S. resembles an initiation for the Russians to trade “good and services” for oil. Over 500,000 barrels a day from Iran are an estimated offer. What does this mean? Well, we are looking at a complete shift in the oil market for starters. With the contracts for oil that India and China hold with Russia being met, Russia can cut America’s distribution by offering a reduced rate. Rouhani is an extremely smart individual not only an expert in economic trading since ‘89’; he has also been a member of the Supreme National Security Council. Iran's Assembly of Experts member as well as the country's top negotiator with the EU three on the topic of nuclear technology in Iran and his resume is truly extensive. If and when Rouhani teams up with Russia officially, they can provide enough oil to supply all of northeast Asia and more. Rouhani also knows Russia can help them go nuclear; they have been helping them for years. Watch those oil prices fall. Its no wonder Obama was on such a massive campaign to remove oil restrictions. Will gold keep falling as well? Holding short at 1309.88, current price at 1218, with a gain of 7% Fxmade2trade.

Yellow fever turned green

Is the USD a crutch for traders? On the other hand, is it fear? With Asia’s ever expanding economy and the growing emphasis on strengthening the middle class it is somewhat surprising that the consumer demand for gold is so low. Or is the demand still as strong but all the restrictions on imports that the government and the Reserve bank has put on China and India in the last year. The two countries that are the largest consumers of gold, are with the same demand but their hands are tied. This seems to be the theme world wide with so many factors swaying the people from political to the strong equity markets taking investors away from buying gold, however many central banks will still need to buy gold to secure a viable reserve currency. Traders seem to be afraid of the ERO, for a while all the political turmoil in Russia hadn’t caused any shift in trades but we now see that after a few months it fell dramatically. Now with Scotland’s vote just in a few days the GBP is suffering as well. The strength of the USD seems to remain a safe haven for investors as of now. However with The unforeseen realization is that as the U.S. dollar gets stronger the price of international goods gets cheaper and become more enticing for the U.S. to buy overseas. This can cause a major turn of events for the USD and with low domestic demand, we then will be keeping our USD in international waters instead of on U.S. soil. The U.S. economy will be right in the red again with the USD weak and the competition of the ERO, GBP and JPY strong. Holding short at 1309.88 current price 1235.00 gain of 5.7% Fxmade2trade

Willy WONG-KA and their Golden ticket

With China being the largest consumer of gold and India close behind should we be worried that china will start gaining complete control of this major market and not just in the buying but the mining and economic gains as well. The World Gold Counsel and the China Gold Association signed a ‘Comprehensive Strategic Cooperation Agreement’ this last week Song Xin, President of the China Gold Association said at today’s signing ceremony: “This partnership aims to release our shared ambitions to encourage international enterprise in China and shape the ongoing growth of this important and rapidly changing market. The World Gold Council is a strong advocate for the development of the gold market. The collaboration at this year’s China Gold Congress marks the first step in a long-term relationship which we intend to foster over the coming years.” Commenting on the partnership, Aram Shishmanian, CEO of the World Gold Council, said: “China has made many significant contributions to the global gold market and will play an increasingly important role in the future. The partnership supports the China Gold Association’s ‘Stepping Out and Inviting In’ policy and although the World Gold Council has been active in China since 1993, this partnership will allow us to build even stronger ties with our Chinese counterparts, setting the foundations for the next decade of growth both domestically and on the global stage.” The data demonstrated was remarkable and how can you argue with such a positive outlook on gold benefiting so many poverty stricken countries though tax revenue and job placement, etc. Many people believe that the Chinese central bank are not reporting their gold reserves to the IMF just like Russia and others did recently, but of course it is all speculation thus far. Holding short at 1309.88 current price 1234.00 gain of 5.8% Fxmade2trade

OBAMA AND THE GOLDEN FLEECE

The correlation between gold and crude oil is no secret this has been a connection that many traders have accepted and used to hedge their trades for years. In the last year we see oil at the lowest it has been since April of 2013, with gold following close behind it. Obama’s campaign and determination to lift the oil ban that has been set for decades couldn’t have come at a more convenient time, the major countries that are producing crude oil are in a crisis and need U.S. aid. With Asia and the U.S. having the worlds largest oil consumption what better way to dip our hands and gain Intel on these resources’ indirectly. Obama has already cracked the door to exportation of oil and has yet to fling it open completely but when he does and it seems he will expect the price of gold to follow. Holding short at 1309.88 current price 1255.72 gain of 4.1%

Put'in all your eggs in one basket

With the tension still building between Russia and Ukraine, we are finally starting to feel the backlash of the war that we had not seen thus far. People have been bailing on the euro and buying up the USD, not because the USD is strong with a solid economy, it is the fear of Vladimir Putin’s unpredicted moves and the issues with the ECB. Since the beginning of the year the euro has lost over 6% against the dollar and now the USD has been gaining in ways that no one could have predicted surpassing the GBP and the JPY. Many different things can influence the strength or weakness of the USD but one thing is proven as the USD gets stronger the price of gold is declining. Holding short at 1309.88 current price 1255.50 gain of 4.1%