Jingoistic Jingoism's

Media Bred Eugenics, Part 2

One can become consumed watching the News and world events unfold in this bizarre new world.  We are witnessing change on a grand scale and evolution in every aspect at a historic rate.  Evolution is a strange thing; I am not speaking in terms of Darwinism the conventional form of evolution such as, over time living organisms develop.  I am speaking of evolution chemically, scientifically, mathematically and technically the evolving patterns and changing maneuvers. The general need and sense for development and change.  Even the most skeptic of Darwin has witnessed his theories playing out through time, “survival of the fittest” or the “natural selection”, if his theories are accurate we at some point will have to encounter a “test” the test of all tests some may survive others will not.  
     We are developing our minds, all of us, we are learning at a rapid rate.  A new born babies brain triples in size the first two years of life and continues growing till about age twenty. Keep in mind all the cells and neurons we will ever need in our lifetime are already there, the growth comes from the connections or synapses between the cells.  We are adapting and learning in our new habitat of technology and media.  Billions of dollars are spent on figuring out the best way to learn and how we can learn more, faster a superior way to learn.  Media has been a great way for information to be received by the masses.  With all the information, we now have on our brain and the hundreds of years spent researching the mind had paid off. No other time than right now has our new discoveries opened so many doors to development and research on our behavior and emotion.  Knowing just what information changes our behavior, emotion or action, is the research that is so interesting and profitable. The media has been a great way to change all, so great we do not even know they are changing us..   

When I see the Greek problems playing out wondering to myself how America would let them make alliances with Russia and the scenario of a war with Turkey, or something involving NATO perhaps ISIS invading around Greece that brings in NATO somehow.  Then I see Obama with the new and young influential Italian Prime Minister avoiding some questions and topics altogether.  I question why?  Is the US showing and proving we that have at least one allies left?  When Russia and China appear to be cutting the US off and out of the loop completely, and us with the fear of nationalizing a new currency cutting off the worlds reserve the USD, then we see news on the pacific trade open up, or how great an investment in the Shanghai exchange would boost anyone’s portfolio.  On the other hand, is the Federal Reserve so broke that they are making bets on the volatility of the Shanghais market?

 We know what they are feeding us; it is just what we will bite on that is being bet on.  Is perception of what is being shown us the key?

The 9/11 war on terror brought new ways to instill fear in every household thanks to the media (not to mention ways to infiltrate and control the masses with an express pass to enforce our “patriot act”.)  To add some extra panic they include a scale that would show the level of terrorism risk day to day in a color system so even kids could keep up, broadcasting every second along with every horror experienced.  Whatever theory you believe it is most likely true or a part of the truth behind the reason or conspiracy, as to just what exactly took place on 9/11, if you read my past work, you know where I stand.  The aftermath of the “event” (attack? Not so much) was just as traumatic then as it is today.  What it has done to this country, is irreparable.  It caused stereotypes and hatred with Arab Americans and mistrust among innocent groups.  It created fear of the unknown the “what if” and this fear opened doors for the FBI, CIA, and NYPD to allow and enforce blatant stereotyping and discrimination against the Muslim community. Fear of the Unknown, and the “what if” factor. This fear and anti-Muslim behavior, violence and mistrust forced many people to give up their faith, fear of being profiled, or segregated as a Muslim extremist.  Mosques were burned, families beaten and murdered. This was not the first time fear was used to paralyze our thoughts and control our emotions, and it wont be the last. While Americans mourned and panicked staying indoors, glued to the news, afraid to fly or go to the local store. The reality is, Americans are one hundred times more likely to die from a homicide, than a terrorist attack, or even more likely to get killed by our own  cities police unit, than a Muslim terrorist.  While terror struck the nation through media, the authorities fueled the fear and rewrote laws while the masses were too afraid to second-guess our great country.  Media drained all it could out of the tragedy and pain. The majorities of the American people are not familiar with eastern history , let alone ours. People knew little about the Middle East or Arab groups, the religion or countries.  This was a pre. Smart phone time,  most people still assumed and believed all the media and myths on our trusted news networks, believing they are true and non biased with real factual information, not just to push the market for a common interest.

  The news and our government keeps pushing us to be more divided, less communal, in turn, less powerful as a group.

Once upon a time (1983) our news media  was controlled by approximately fifty different corporations. Today it is a  private interest owned, by only six corporations. These six are powerful corporations, they do not just own the news or media they own production studios, television networks, newspapers, magazines, movie studios, anything from web sites to music labels. They have control over it all these huge six entities are not just rich beyond belief they are selling a priceless item… control. People pay for control. Social control has been around for sometime, and has been used even longer than one may think, the first use was in c. 515 BC that we know of, “The Rise of Darius to The Persian Throne”, then “The Arthashasta” c.350-283 BC, and of course, the Romans used it c.59 BC - 17 AD. It spread during the Reformation in ways never seen before with the printing press in Europe and there were thirteen American colonies that had specialized on topic for the interest of the Patriots and not so fond of the Loyalists, playing a major role in the demand for independence. It goes on continually throughout time.

Even the word propaganda has been turned into a negative, in its original sense was positive and helpful neutral and useful for information. Edward Bernays “the father of public relations” and regarded as one of the hundred most influential Americans of the twentieth century. Bernays also said, “The public’s democratic judgment was not to be relied on”. One of the most prominent political writers Walter Lippmann sat together on a US public information committee Bernays pioneered the PR industry by using social sciences and adding psychology this  popularized Freud ideas, mainly group psychology. Barclay's’ actually wrote the book on psychological manipulation, literally in 1928, “Propaganda” he even stated that, “the manipulation of public opinion was a necessary part of democracy”. He also wrote, “Manipulation ones opinion” in 1928, and states, “a technique has been developed and applied”. Indeed it has who we are what we want need how we love what we think is love it has all been predetermined for us. Not like worm wholes repeating our lives, no they are using us all working for the powers that be. So we become aware and watch learn take the “red pill” while the “sheep” take the “blue pill”.

 I have seen more and more shows and news pumping us up while we are in the hypnotic state of brainwashing watching some great new show and then another and a common theme arises every change of shows brings a “NEW THREAT” to you! Your household, the kids, the earth (the one thing that is real)... never the less a common “trend” in major shows. Like, perhaps… women in power? Seem familiar. Recently I see survival shows a lot of them, and a negative veering and lack of trust towards the mercenary groups. In the long run, the military saves the day, not the survivalists or redneck leading a city with an AK, no they are depicted as bad people and guns as an evil threat to families and always shown in the wrong hands. 

My perception could be totally off, or… they are trying to sway us, disarm us willingly, and place the idea in our heads not go rise up against the government when the time comes to, and it will. When all the people see the big Ponzi scheme, the government and barker cartels have bestowed on us just to line their pockets. They are desensitizing us to the future n new world order, all those zombie shows are just junkies ready to eat your face off when they Close America off to all other countries and resources and China has bought up all our good land and energy. All that will be left is Anarchy, Drugs, liquor and guns…our knowledge and empathy remains. I went a little too far there; however, the “what if” or disaster looming is each individual’s perception. So I will continue with the “rant” of new world order. I do not know why with all violence that we are exposed to, and desensitize by, why aren’t we just publicly hanging people that have wrecked America?... Raise Nixon and flank him till we go back to gold. Bernanke burned at the stake, or pitting him in cage against lions or Bears and Bulls, loose in some coliseum or a dome like a bad mad max reenactment! Yellen and Draghi as Master Blaster…Michelle Obama as Tina Turner, now I have to post the video clip of that.

I could be way off. Perhaps they have a plan, and it is for everyone to unite, peace love and freedom, America Land the free, rich happy and healthy. They will have every person rise above middle class, and issue high tax for the rich they will even take a ten percent cut for just one year. Every banker and government personal will do it, just to fund low-income schools and include theater and art classes or days that they cut. Sad thing is they could… for every school in the nation… for the next fifty years. The pessimist I am, I just kind of lean towards them being greedy and see them more or less wiping out the middle class setting up their life in luxury while we the 99% just hope… as they manipulate us to believe if we do what is being said, we need to… and in time everything will be ok, someday.

  Now we know the public perception is the focus for swaying us through media, how the public responds to information given is the key. The concern in this is finding the concurrent high points of some information then when other information being introduced. This information is what advertisers and the powers that control all seek. What action will cause a reaction, most of all just what will the reaction be? The public’s reaction is what the big boys bet on, profit from, and invest in. The media has become the ultimate advertising tool pushing products and bias information, then acting as rivals while supporting the same globalist organizations pushing a product. Thirty years ago, The Central Intelligence Agency (CIA) director Dave McGowan stated (who also was murdered shortly after he stated) “The Central Intelligence Agency owns everyone and any significance in the major media”. The CIA has advanced in every way since then. One can only imagine what the CIA could have control over with the new technological advances combined with physics and science, biology, and chemistry, the breakthroughs have been historical recently and keep growing  The list could go on and on. Knowledge of Humanity and the way we think and act are mapped out; we have learned so much about our cells and body, and our brain finding why and how we do what we do. 

We still do not know so much about the mind, humans are complex, and though most behavior is predictable, some is not. the aspect of free will and unpredictability’s of sadness, empathy, and  love, anger, hope and lust are emotional and each of us express these differently. Fear however, is a much more predicable human response, more of a fight or flight formula to manipulate us with. Tragedy sells, the collapse, ruin, and war, disease, money, the loss of the hopeful gain, false reassurance, and outright lies, all fed to us in a multitude of ways, redirecting or behavior to serve their greedy interests. The stories we have been told all our lives may hold some truth, more a piece of the puzzle or a guide to the truth. The tales of mythology, religion, even poets, and art have altered our perception throughout time. Even fables, songs, and fairy tales can been depicted in many ways unveiling racism, sexism, and control, etc. The common thread in all manipulation is, good and evil, heaven and hell, white and black, these all have two sides to every story, all the things we have been told and learned are depicted and swayed by the storyteller, we will never find the whole truth, time has buried most information with the motives and greed mankind constantly seeks .

  Truth and fiction become irrelevant when profit or desperation becomes involved. 

H.G. Wells wrote about social engineering though sports and back then, people may have thought he was crazy when he wrote of a tribal system that was needed for men, engrained in us primitively a need for a tribe and leader, an Alpha male. As the emerging expert class arose, man would be more disengaged from what you would call a tribe or his own destiny. Sports though radio and adding a stadium in every city gave man the outlet he was subconsciously seeking, in the hypnotic state of a new cultural industry. The Soviet Union even had what was called a culture industry. The actors and directors of media and film were called the "cultural leaders", because they could control the public. This was the psychology behind control because humans have a need to belong; a need to be liked wanted and accepted by our peers, we are easily programmed by a scientific dictatorship. We have been programmed as if machines manipulated so much we cannot even determine the difference between “real wealth” and what we are programmed to believe “real wealth” is. When did owning even leasing a Bentley become a better investment than land, education, family, or medicine, even free will? The pressure to have material possessions, a bigger house another car or truck, a better life, is not just a pressure, this has been instilled in us so much that now advertisements are making fun of the blatant brainwashing of these unobtainable social status.

 For the 99% what we see the lavish lifestyles lived is an unobtainable social structure and status, it is a distraction for the masses, something to strive for and keep going, set up so you remain unfulfilled and keep working and spending. They want you to spend not save that is not what our economic structure is based on. They want and need you to max out your credit take a mortgage out, even a second or a third, all so, you will not have any true assets and you will keep paying on that interest. Media does more than take your money for various purposes it drives you steering you and guiding your next step.

 I see more and more people taking the “red pill”, seeing the media for what it really is a tool to control us. People have learned that investigative journalism is just associated with different specifics, not truth. What the media says and shows you may just be a movie set or even actors, even the energetic newscaster pushing a new company, you now may know is their sponsor. Media is a tool and like everything have two sides and two ways of looking at it and two ways to use it. Alternatively, the public can use it to their advantage as well. The information is out there, just some codes will be easer to crack, others much harder. An informational puzzle and all the pieces, what they are discussing and selling or buying, it is the history and relationships all of it is out there. However, it’s more “why” they are broadcasting it, selling it, or buying it, the true history not what is told to you the real relationships between people. 

The public is waking up to the fact we have been living in a nation opposite of everything we were told America is and what it stood for, the opposite of what we have learned in school from teachers, parents, peers. Our history has been rewritten to conform societies and create a mass of human machines to program. . A false nation built with blood and greed, manipulation and power. Our history like our nation is false, made up, altered by fake governments, fake rules, fake leaders hand picked by Oligarchs and bankers in a fake democracy. Our fake judiciary system with its fake laws designed so though Oligarchs, bankers and government can rob you blind without due process or even court orders, then the powers that be can rob them. Our Freedom? Fake, our amendments? Falsified, and rewritten, our authority Fake, a nation with the backbone of our proud constitution reworded and altered so they can serve there own control and strip us of power and our true rights even our own choice. What do we have left that is real or ours truly? Knowledge and the right to bear arms and defend ourselves (for now). There are many upsides in our new god we call media in this lawless run nation. Knowledge is power, and we are curious creatures with instincts for survival to protect our legacy though our children.

It is all Greek to me.

      Just because you read it, see it or feel it, doesn’t mean it is real or you understand it.  I have been horrified how the media sways the opinions of people and the market with inaccurate or misleading information.  The whole Eurozone and Greek fiasco has been consuming headlines for months and now is postponed until March.  I have found most of the information and publicity I have seen and heard is swayed and bias.  The information varies from one extreme side to the other; how the Greeks are lazy and spent more than they brought in, they never enforce or paid taxes or they just want to blame the banks, they should suffer, they already were bailed out once.  Greece may have been irresponsible, but the banks funded that irresponsibility, knowing Greece was totally bankrupt...  The media is making it seem like Greece is snubbing The German taxpayer who is extending a hand just trying to help. The understanding of the language used is what needs to be clear to people reading about all of this as to what exactly the bailout entails.

The Greeks are upset because what they are rejecting is a loan not a bailout, the term “bailout” is misleading on so many levels. A “Bailout” is actually referring to the banks, unless they are bailing out payments to Greek banks.  It is not Greece itself or its economy, the money involved in the “bailout” will not help Greece.  It will be used to bail out bad banks.  Unfortunately, Greece is just a cover for the money transfer.  Just to be clear what happened to the “loans” the last time, ninety-two percent went directly to banks, six percent went to government, and only two percent went back to the Greek people.  The Greek people are the victims of the banker cartel who is immune to any and all consequences with their actions and funded Greece without effective collateral, knowing the credit risk and dumped funds into it anyway, just socializing the loses to the taxpayers.

 The real problem to the Euro group is how any changes they make will affect the global derivatives market. The derivatives market holds roughly seven hundred trillion dollars, ten times the size of the world (GDP) it includes bonds from many different countries, even bankrupt countries, like Greece.  The entire western financial system has sovereign bonds from other counties.  Sovereign bonds are seen as a “risk free” asset when considering the risk the chances a company will go belly up is way more risk than a whole country going belly up. The banks have to consider what happens to the trades made using Greek sovereign bonds.  Many factors have to be looked at by both sides; one thing not mentioned much is the most important thing, collateral.  The primary collateral underlying all of these trades is Greece.  Sovereign bonds are the senior most assets pledged as collateral for the trillions dollars worth of trades.  The bondholders will be affected most by the decisions made.  Just how and how much they will be affected is the real question.  The last bail out was for the Euro banks that held Greek bonds as collateral.  This is not about helping and restricting the Greek economy; it’s all about the Euro group and banks the collateral and maintaining the balance sheet to avoid taking a loss.

 To make the situation and language clear, to the people of Europe, the Greeks have spoken at the Tour of Europe to correct misleading information and terminology of just what they are asking for and what the Euro group is offering.  Greece and Germany are using non-communication “communication” the resolution is not close.  Now Washington has stuck its nose in to the Business between Greece and the Euro group “urging a compromise” this has been by the US Treasury secretary, Jacob Lew.  Ironic that the United States can even speak on the debt with America eight-teen trillion dollars in debt.

 They want Greece to leave their policies behind and pay back the debt they owe.  This of course is not going to happen.  Why would Greece pay it back even if it could when every country has debt in one way or another and they are not expected to pay up the hundred percent in debt they owe (US).  Greece is just a few years ahead of the rest of the world.  The numbers the Euro group is asking for will be impossible for Greece to pay back.  Can we even believe the numbers that they are giving us?  The numbers are calculated by the same system that was used to get Greece approved into the Euro. We saw those numbers, they were completely fraudulent.  How can we blame anyone or take sides?  The central banking system has everyone believing that money is free, and now feel entitled to it.  There maybe “no risk” in the central banking system, but now there is no value.  The bankruptcy and austerity are now inevitable for many counties.  This has all been a game, a play executed by best-organized gangs of criminals, our world’s biggest gangsters, the banksters.  They are who effectively control the biggest forms of organized crime…the government.  All we can do is sit back and watch, while poor Spain and Italy, watching, and thinking, saying, “We’re next”

Germany is doing all of this the worst way they can.  They are pushing the decision back to March giving Russia and China time to set up a fund for Greece, which would be a huge game changer.  I am sure the Eurozone ego would never see Greece joining Russia as part of its master plan.  Spring tends to be Europe’s protesting months, and civilization cannot survive on run theft ethics.  The Euro group has most likely already dumped Greek bonds on pension funds long before now.  The only reason Greece would repay is to give the Eurozone citizens reassurance that they haven’t just been robbed.  Default maybe the only answer; it is immoral to ask future generations to pay debts they did not incur.  .  The real problem ultimately is the fact, that to a central bank you are the collateral.

This could this just be a step closer to achieving a global currency deemed as the only legal tender by the IMF.  They all know the eventual inevitability, with their Madoff-scheme debt-based monetary system.  We as individuals will have to change the system ourselves and open our eyes. The change will require more than merely recognizing the social facts about central banks; we have to profoundly change paradigms that will be necessary to perceive those central banksters facts in radically different ways.  Then you will have a chance of formulating real solutions to the endless cycle of treacherous usury that is the banking system.  The global bond bubble is still going to burst; when it does, it will make the last crisis look like a cartoon.  Let us not overlook the Euro banks as a whole are leveraged at twenty-six to one.

Just for your own information…The Financial Crisis Inquiry Commission (FCIC) Report states on page.  48

The CFMA effectively shielded OTC derivatives from virtually all regulation or oversight.  Subsequently, other laws enabled the expansion of the market.  For example, under a 2005 amendment to the bankruptcy laws, derivatives counterparties were given the advantage over other creditors of being able to immediately terminate their contracts and seize collateral at the time of bankruptcy.

Out of Control

The ever-looming Grexit decision has created weakness and uncertainty in the Euro and the Central Banker's have been planning just what to do next and what limited options they have. The other currencies can benefit from the decision one way or another, one alone would benefit the most the Swiss Franc (CHF). If Greece exits the Euro (EUR) Switzerland would have billions of fresh capital that would need a safe place, that it wont be denominated into Greece's new or old Lira, Peseta or Drachma. One thing is for sure, the Swiss will do whatever it takes to benefit them in the long run. The CEO of Zuercher Cantonal Bank, Martin Scholl has said "anything is possible" when asked the question if they were going to implement capital controls or lower the already negative interest rates. Capital controls limit the flow of foreign capital in a domestic economy. This flow in and out of capital affects Forex, bond, equities and overall market based forces. Control over the flow in and out of an economy can be seen as positive or negative and has been a subject of much debate. The foreign capital includes tariffs, taxes, outright legislation and volume. Many have strong opinions on just how this can affect the economy overall. Economy's open to foreign capital give large companies easier access and the overall demand for domestic stocks can rise a great deal. Some think it can limit the efficiency and economic process, tight capital controls in developing counties are common. The integration of financial markets along with other global factors have contributed to the easing of controls, yet the Swiss are saying this is a option. Central banks all over the world are blowing up with liquidity, what choice does a independent Central Bank have other than limiting their own currency's convertibility? They have an obligation to protect their country's currency from the coming currency crap-storms, and they will do whatever it takes.
The Swiss don't really have any commodities so they import them in U.S. dollars (USD) or in Euros (EUR) so they are striving to lower their currency even though they are in a healthy position with good demand for their currency. Capital controls are control of money and that just leads to control of people, the banks are feeling as though they are losing control over the money and the people. This is a big problem and the SNB will have to make some major decisions before the grexit.
The Swiss have been open with their plans and generally give a great deal when it comes to their next moves and strive in maintaining their independence. They were not so forthcoming when they ended the cap, in fact they made statements that would make people think they never would end it. Because of this many think they have lost their well established credibility. The Central Bank had stated that "The minimum exchange rate must remain" just two days before ending the CHF cap, that caused a black swan event within the market. Huge currency swings like that make trading highly problematic, and fear moves the market the most. People are veering from unstable currencies, however the CHF is a historically "safe" currency. Normally capital controls are implemented to prevent a massive outflow of capital not a inflow, in turn this would seem that the National Bank (SNB) could be worried about a collapse in the CHF or the other way around they thought that a strong currency would hurt exports.
The currency war is accelerating. Central banks, like all decision makers have a range of options. The SNB (one Friday afternoon on a bank holiday weekend) may just impose negative interest rates to a level that forces bank runs then order capital controls to lock everyone out of getting their money, highly doubtful. The discussion of imposing negative rates is a clear sign that the borrowing entity is bankrupt. The SNB has not stated that they will impose the negative interest rates or capital control. However, when you say you're not considering something at the moment, that seems to imply that you might consider it in the future. Most people in the U.S. pay with plastic not cash , in Europe more cash is used. We may soon have to bank at home , it will be the only safe place for your money. The banker cartel's worst fear is that we will take the money printing press away from them and no longer support digital and fiat.

Bring on the CORRECTIONS

Cause and effect is the basis of all currency trading.  Currency exchange is supply and demand; fundamental analysis that examines economic factors can help determine supply and demand.  You could spend years even decades learning all there is to know about Forex trading.  You can apprentice “all knowing traders” dump money into technical systems, apps, and lessons.  The best education is experience, if by chance (you will), you do come across the “all knowing trader” run the other way.  A good trader is a humble one; they have made bad calls and lost a lot and also made great moves and gained.  A humble trader will have more respect for the Forex market, including the individuals that follow their own way and want to learn all they can.  The Forex market is a combination of corporate and private traders using different strategies, looking at different pieces of data that sway their moves.  With more than eight major currencies and at least seventeen derivatives available for trading at any given time, finding the right information that will work for your strategy is key.  More than seven pieces of vital information is released daily, regarding the eight major currencies.  This information can be about the country’s  inflation, deflation, trade balance, payroll, production, sales, or banks.  Specific information can be much more important and move the market causing high, medium, or low volatility.  We can download many different types of economic calendars that highlight all of these aspects even what the rate the volatility will be upon the reports release.  Timing is also another thing to consider.  The time when the information is released in another country can create a trend quickly causing momentum unable to sustain even the right moves.  Even if you do your research, the risk of reversal is high due to the volatility. 

            U.S. economic releases are looked at the most since the USD is involved with 90% of all trades. Unfortunately, the United States focuses on corruption everywhere but America.  The correction in the reports will come regardless of what they report now.  If you are not one of the sheep believing that the economic data reports are accurate, you can predict what the outcome of those reports will be.The real indicator is price.You can listen to the rumors or buy and sell fact.  Focusing on too much on news, propaganda, and fundamentals can damage your performance.The major players are not concerned with the facts or reports based on what they want to happen.

 It is important to watch how the market is moving and just what information is making an impact.  What factors move the market? I mentioned before Fundamental analysis, the study of economic factors that influence the Forex market. Technical analysis on the other hand predicts patterns, studying price levels, volume, and then forecasting the pair and what direction they will move.  Information is the key, and your own knowledge is truly power you have. Unfortunately, the United States focuses on corruption everywhere but America.If you are not one of the sheep believing that the economic data reports are accurate, you can predict what the outcome of those reports will be.  If you are one or know one of the major players on Wall Street you may be able to gain your own what they call a “Whisper Number” this number is the earnings per share (EPS) unpublished and unreleased forecast.  These numbers are much more regulated and confidential now days.  However, major corporations and the extremely wealthy still get tips here and there.  You can also generate your very own Whisper Number, just by your own research, information, company financials, and market trends.  You can even use instinct or gut feelings when it differs from the consensus forecast you can set your trades appropriately to gain an edge.  Forex trading is not based on logic, it is primary a price action strategy, gauging the directional future of the market.  You should definitely incorporate all the information given to position yourself correctly.

 A study on just how long information from the news affects the market was done by Martin D. D. Evans and Richard K. Lyons in 2004.  It showed that it takes hours if not days to absorb the effect on returns and order flow, it generally occurs in the first or second day and really pronounced by the third day lingering till the forth day.  This study was also done in 2004.  Technological advancements and instant data are much more accessible.  You can see the effect happen quickly looking at the volatility.  Volatility is crucial to understanding the way the market moves.  How much a pair moves by the minute, hourly, daily, and long volatility vary drastically?  Monitoring the volatility is constant, and can tell you how you should be trading.  Volatility is much more useful when measured by the fundamental and technical analysis.  Conditional bias will happen, politics, and other elements will throw off any predictions they have. Developing your own strategy is the key to achieve or sustain profitable trades.

Blogger: Adrienne DeMarco 

The allure of self-confidence (jpy)

     Hello,
As awaited the Japanese news was released and helped our trades. Usd/Jpy didn't move immediately in our direction, but sometimes moves play out over the course of a few hours as traders figure out what they want to do and the manipulators have chance to run those positions.
     Japanese purchasing of foreign bonds had increased from 44.2bln yen to 675.2bln yen, foreign stocks had increased from 382.1bln yen to 457.9bln yen. As for their purchasing of Japanese bonds, that dropped from 236.3bln yen to 70.2bln yen. Purchasing of Japanese stocks dropped from 464.8bln yen to 104.bln yen. Wow! the purchasing of foreign bonds increased +1428%. That blows me away, and the purchasing of domestic bonds and stocks fell an average of -74%. In a simplistic view of this, a layman's view, I would say this shows their doubt in the stability of their economy. I haven't delved too deep into the structure of their finances, so they could be balancing it all out in some way, but as for trading it on a time frame of a couple days, I think most traders are looking at the currency the way I stated. From the time of this economic news, the Usd/Jpy has moved up about +0.17% as I type this. The pair also seems to be unable to find a direction and wants to oscillate back and forth across the 117.45, ranging between 117.10 to 117.70
     For tomorrow we have non-farm payrolls and unemployment, so we'll go ahead and hold to see what happens then.

Have a good evening and good luck,
Professor Chaney

Usd/Jpy long, round 2

Hello and good day traders!
Previous trades were closed a couple of days ago for an overall gain. The Aud/Jpy and Usd/jpy were the two positions that refused to return a profit, which is more than ok considering our long Eur/Chf, Gbp/Chf and Usd/chf trades turned out so well.
This week Usd/jpy once again met all my parameters to go long and once again we seem to be bouncing around in a range testing and bouncing off resistance at 117,25. This trade has been bouncing around from negative -0.30% to +0.30%, negative, than back again. At this point I'll be happy if it just breaks even or better yet I can get out a few ticks up. Yeah I know this is how currency moves, but it's one thing to bounce around in a profit or loss and another to bounce around from loss to gain than back and forth.
In about 35 minutes, some economic data is being released for japan and with 2 of our 3 trade parameters still being met, hopefully this will give Usd/Jpy the push up we need until we get out in a couple days, when our exit parameters are met.
The data coming out is as follows.
:JPY Japan Buying Foreign Bonds (Yen) (JAN 30) previous ¥45.6B -medium importance
:JPY Japan Buying Foreign Stocks (Yen) (JAN 30) previous ¥382.1B -medium importance
:JPY Foreign Buying Japan Bonds (Yen) (JAN 30) previous ¥237.5B -low importance
:JPY Foreign Buying Japan Stocks (Yen) (JAN 30) previous ¥466.9B -low importance
About 1 hour and 40 minutes later the following is happening.
:JPY BOJ Iwata Gives Speech and Hold a Press Conference -low importance

...Will catch you on the other side, good luck!!

IPA $67 keg..... OIL $50 and below

People have been speculating for some time about the true underlying reasons as to why and how the oil l price has been declining and where it will go. We have the Saudi's stating that we will never see $100 a barrel of oil again. Then we have the Secretary General Abdell El-Bardri saying that oil will climb up to $200 a barrel.
The Saudi's have been lowering prices to cripple the American fracking rigs. Its working, North Dakota as well as all other minor fracking Fields across the U.S. are shutting down. Manipulation to put America's production on halt could be OPEC's doing. It is like Wal-mart vs. mom and pop stores if you can wipe out all the small stores then you can reign supreme because you are the monopoly. It took over six months for many oil and fracking companies just to turn off the tap even though they saw the demand decreasing and prices plummeting. Most if not all these companies will never be able start up again because its all leveraged out with junk bonds. The lack of investors will make it impossible to open the way it was. The population is growing, that means demand for food and other conveniences such as oil and energy will grow regardless. It is estimated that by 2030 China's demand for oil will increase 600%, even though demand is low now it may not be soon enough.
Many theories are on the table, I personally see this as economic war. The U.S. is driving the price down in targeted countries Russia, Venezuela and Iran. These counties will soon be replaced with pro-westerns leaders, most likely by the Obama Administration. Putin, Maduro and Rouhanie are on the United States "blacklist". Putin is a major target, he has the will and drive to assert their *sovereignty*. He supports Assad because he was freely elected. However he opposes Islamic fundamentalism. Other nations bow under America's drone bombs and trade agreements, like China has been doing. The world buckles under the "extra-sovereign" companies like Monsanto and Apple. On the other side of this onslaught is really just one man, Putin. There's a second guy in Greece, but the powers that be will make sure he doest have a leg to stand on.

Positions update.

Current positions update.
It's now Wednesday and positions have continued with our directional bias, Up. To over view our positions, we are holding the following positions all longs (buys). Aud/jpy, Eur/chf, Gbp/chf, Gbp/jpy, Usd/chf, and Usd/jpy. The Aud/jpy and Usd/jpy positions have retracted some since there ultimate high, but the Swiss Franc associated trades that we sold it against have more than made up for the strength of Japanese Yen (jpy). I could get into some macro fundamental breakdown of why the pairs are moving in the way that is playing out, but trading it on a shorter time frame of positions being held for only days, I think the technical aspect is more relevant and I don't really have it in me to come up with some fundamental bs today. Instead we'll just go over some facts about the trades.
     The Eur/chf pair had originally sold off about -18%, our trade in that has moved up about +3.3%. Our Gbp/chf trade is up about +3.6%, that had sold off some -15% since the Swiss National Bank (SNB) removal of the Eur/chf $1.20 support barrier. Usd/chf is at +2.6% rebound from it's -14% sell off. Where are these going to end up you may ask? Beats me, my guess is we will probably hold close to the current levels with a possible testing of the high water marks from earlier this week. Both the Eur/chf and Gbp/chf reached up over a +4% rebound before settling back down to where they are currently. The Japanese yen trades have completely evaporated their gains and the Aud/jpy, Usd/jpy pairs are now posting a loss.
     In one hour and 40 minutes Japanese retail sales are being released for year on year (y/y), so hopefully this will help out positions. Later at midnight my time, Great Britain national house prices month on month (m/m) are being released. Two hours after that German unemployment change and rate will be released, this could help out our Eur/chf trade, so of course we'll be praying for the best outcome.

That's all I got for right now, good luck.
Professor Chaney

SNB, CHF reaction squared

Hello again fellow traders!

With the (SNB)Swiss National Bank having surprised the currency markets with the removal of the 1.20 Eur/Chf support barrier, it was only a matter of time until currency pairs trading against the (CHF) Swiss Franc recouped some of their loss. Those losses from the date of the SNB meeting averaged a loss of over -15% paired with the majors Eur, Gbp and Usd. Having dropped that large of an amount, the market has been poised for a recovery of those moves. Such a large amount of people disintegrated the week of January 15th, that the market was able to rebound since there was no loss to the 'market'. So much money vanished, where usually stops would be run on people trying to buy the rebound, that I think the pairs Eur/chf, Gbp/chf, Usd/chf will be left alone to rebound, because enough stops were run to cover weeks and months of trading. If anything, I think most traders that do specialize in those pairs are hesitant to catch a falling knife, which means there could be low volume on the buy side (low amount of stops) and traders that are coming in late trying to sell on the up moves are having their stops run. Yeah, just about everyone is getting burned with CHF associated pairs. Even those who are trading Euro associated pairs are feeling the heat. One would think after the Euro was hammered from the SNB, then the (ECB) European Central Bank, that a safe play would be buying the Euro against anything other than CHF. Like the Eur/aud, Eur/gbp, Eur/jpy or the Eur/usd. Somehow that already seems to be integrated within the 'invisible hand' of the currency market. 'It' knows traders are scared to trade the CHF, so they would be trading other Euro pairs, hence Eur/chf going sky high^, no one is trading it. Except you and I. Holding the following long (buy) positions Aud/jpy, Eur/chf, Gbp/chf, Gbp/jpy, Usd/chf and Usd/jpy.

Thank you, please feel free to comment on any post.
Professor Chaney

Count Drag-hiu-la "He wants to suck your bond"

The Central Banks evaluating, planning and the decision making process has not been working so far, they have lost sight of the peoples need and expectations. The new normal is Central Banks exporting deflation to on another by printing money, to buy financial assets including sovereign bonds. While the amount of eligible collateral is becoming scarce. Where are the days of practical supply and demand? In the early 2000's Japan was the first to do this, at the height of crisis and it was too late, we are seeing the deflation outcome of mass bond buying in Japan. The main effect is on the currency it ruins and the exchange rate. Just like Japan the ECB may have been too late.
As the European Central Bank (ECB) announced that 1 trillion in Quantitative Easing (QE) will be the only answer to the lagging economy and Euro crisis within the Euro zone. Fundamentally if an economy has the potential for recovery, they leave the interest rates alone. The economy has been unable to reach sustainable growth, they are dependent on exports, so they also have to make sure the Euro does not gain excess strength adding risk to the export market. The QE starts march 1st, with the rate the Euro is dropping it wont be soon enough. The Euro debt is too large to just sit on, unexpected events or risk looming, so much can take place until QE starts.
Mario Draghi who has been the President of the ECB since 2011 when he replaced Jean-Claude Trichet, has been vigorous in convincing the ECB members that QE is the only answer. Draghi who was named by Forbes as the eighth most powerful person in the world, has a resume of a conspiracy writers dream. He is a member of the Group of Thirty (G30) consisting of privet, Central and major bank heads and even some former Central Bank heads from Brazil, Japan, Italy, Argentina, India, Israel, Italy, Mexico, Poland, Singapore, Spain, Canada, Britain, France and Switzerland. Stuart P.M. Mackintosh, Jacob Frenkel, and Paul Volcker along with two Chairmen from the ECB and two chairmen from the New York Federal Reserve, members from international and academia institutions, even a chief economist of the World Bank. It continuous with a chairmen of the Bank for International Settlements, two chief economists from the International Monetary Fund and a chairman of the Basel Committee on Banking supervision. The G30,s chairmen is Draghi predecessor Jean-Claude Trichet. The group started as the Bellagio Group in 1963 by a Austrian economist Fritz Machlup who wanted to investigate the balance of payments crisis and currency problems in the 1960,s. In 1978 Geoffrey Bell started the G30 after a invitation from the Rockefeller Foundation who gave the initial funding to start the G30. If the connections to Rockefeller was not enough Draghi was also the managing director and chairman of Goldman Sachs. One may think this to be a major conflict of interest since he is also the president of the ECB, and perhaps could have a outside agenda. Draghi was also the Italian Executive Director at the world bank, later director of the Italian Treasury, then governor of the Bank of Italy where a loan secured with bonds of two billion Euros to the Monte dei Paschi di Siena (MPS) bank. The Italian Central Bank (Draghi) was making decisions that the Parliament and the public were unaware of and the end result was tax payers repaying the debts with interest and the MPS got government bonds and the ICB ended up with junk bonds. Draghi used this as a foundation for a system that protects privet banks and their owners from nationalisation and economic collapse.
Draghi had been pushing for QE from the start, Greece possibly exiting the Euro, and uncertainty in Ukraine, the "low-flation" in the Euro zone economy Draghi knew he would succeed with QE. This was to be expected by the market and you see it in the sovereign-bond market as the yields fall. Historically the ECB has given ample notice in regards to their decisions, when they had their meeting earlier this month it was a 9-0 vote for QE, only one man Mr. Weale stated that a hike was needed and they pushed back the meeting. The risk of QE is high and banks take on a 80% of the risk in sovereign bond buying, some banks have buffers others do not. Other bail out counties will be massively impacted unable to purchase until it redeems debt and given a limit on holdings for the sovereign issuer.
Negative Rates encourage physical cash, metals and real assets like real estate. This all would equal the opposite of the end game. The Government drives prices up and the people who save lose, and the wants of Government drive the innovation instead of how it should be where Government technology drives price down and consumers drive the innovation. As it stands we pay them to give us our own money.
The total Forex reserve is an estimated 12 trillion, half the government will invest, about a quarter in held in Euros and anything sold by a CB most likely will end up in the privet financial sector, so who knows how much will end up injected into the manipulation of the market. Why do we have to pay for the risks they took ? Well knowing, if there is risk, there will be loss. Don't forget, this will only work the way "they" intend it to.

For every action there is a reaction.

Hello fellow traders!
     What an incredible week we had. Just when one thinks the markets can't get any crazier, Swiss associated pairs go ballistic. Luckily zero parameters were met to signal a position in any of the Swiss currency pairs.Whether this was just luck or this happened because my strategy somehow 'knew' not to be in those pairs I really don't know. I think what happened was my strategy waits for specific situations within pairs so the price will move rapidly in a given direction, and perhaps the Swiss National Bank (SNB) also knew this situation existed and timed the information release to take advantage of this. Hence a move that magnified beyond most imaginations. The Swiss Franc moved 17% on average against the Eur, Gbp, Usd, Aud, Cad, Jpy. This in turn moved the Eur which is direct competition, an average of 8%.
     By the grace of a higher force we have been blessed (hopefully) with the parameters having been met to buy the Eur/jpy pair. First the pair has sold off so much, I can not imagine there are any more traders able to push the price lower, nor is there anymore stops to be run (if you believe in that). Reading over other traders forecasts on the Eur/jpy, it looks like most of them are calling for a push lower, talk about missing the boat! I could see being scared to trade the Swiss Franc and maybe the Euro, but calling for a push lower seems improbable.
     Helping out our positioning early this morning, Germany's Bundesbank announced the continuation of repatriations of gold from London, New York and Paris. Bundesbank specifically declared 120 tonnes of gold was transferred from Paris and New York, 35 & 85 tonnes. To me this seems as though this informational press release was done to reassure the world that the Euro has a solid foundation and to help recoup some of the massive sell off that just happened. Looking at charts, the start of the rebound seems to coincide perfectly with the time I believe the information release was made. Along with this information, a repatriation  timeline, table was also released further showing their commitment to stabilizing the Eurozone.
     In case you have been living under a rock, the European Central Bank (ECB) is meeting Thursday January 22 over deposit rates, refinancing rates and a bond purchasing program. This program would consist of purchasing €550 billion ($640 billion) of bonds, independently through each nations national bank, the purchases will represent 20-25% of the individual nations debt. Greece will be excluded since their bonds do not met the minimum criteria. If this bond purchasing happens which is most likely, I think the Euro could get incredibly strong against the other major currencies and create a massive up swing for our long Eur/Jpy trade. Let's cross our fingers.
     Let's go ahead and keep holding our position and hope for the best and reconvene tomorrow or later this week.

They issued VE ...verbal easing

        Since 2008, employment gains have been declining, and just this year they have started to stabilize, effectively pushing the unemployment down with the solid employment gains.  Gains in employment were the highest this last November than they have been in the last three years.  Online ads for jobs increased, indicating employment gains.  Surveys came back stating that many jobs were available and were much easier to obtain.  The indicators were encouraging in the anticipation of the reports.

The numbers came back and for the most part, they looked good, then they looked a little closer.  For eleven months straight the payroll increases have been up above 200k, those numbers have not been that strong since 1994.  The Economy has generated the strongest number in new jobs since 1994, and showed 50k more than the forecasters predicted.  The economy looks to be positioned for strong growth in 2015.  In fact, the numbers were so good they almost deemed America fully employed by FED standards.   

Despite all the optimism in employment, weak wages took the spotlight and the softness in earnings that fell drastically.  There really is no obvious fundamental factor that can explain the numbers that were reported.  They listed excuses and blamed a “seasonal fluke” in the retail trade sector.  This time they couldn’t directly blame the weather.  Job quality was not good as well, creating disputes as to what exactly these numbers could mean.  Updated adjustments will of course be released further, most likely while some catastrophic event is taking place to distract us, from the outright manipulation of the numbers, as they always do.

 These statistics and reports are just a reason to issue or delay the rise of the FEDs interest rates, or a justification of QE printing to monetize debt.  These numbers and reports can be perceived many different ways.  They have the ability to manipulate what information is presented and how the surveys are handled. The numbers just do not add up.

 We have roughly 47 million people who get food stamps and inflation with food prices continue.  Many people still live paycheck to paycheck, less than three percent of Americans make over 75k.  Jobless claims rose to 299k.  Jobs in the energy sector had the highest number of job cuts since 2012. With a population, around 316 million and 94 million are not in the labor pool how can we be close to fully employed.  America is still in massive debt and the FED has many people waiting to see if they will raise their interest rates.  The verbal easing Yellen keeps spewing has become intolerable.  One person will say they are raising rates is what will happen then the other will say no that we will wait.  The reality is that if they do raise the rates the trillions in bonds, trade derivatives would create a mass of bank runs and the same banks that control the FED wall St. banks would implode.  It would also crush equity markets the many corporations that took massive loans to cover there debt and had to buyback shares.  The impact would be devastating for the main players, most of all the FED would become unable to control the economic conditions.  The FEDs policy is really designed to take wealth from the largest population and has systematically been wiping out the middle class.  They do not really care about the numbers of employment or income they want to keep the current financial system just the way it is.  The FED will protect it’s self and the banks, they know that foreign cash will shrink the long-term rates and they can always print to cover their own debts if need be.

ECB Roadside assistance, AAA cant help

ECB Roadside assistance, AAA cant help

Two European Central Bank (ECB) meetings are coming up and traders should take note.  The first is a meeting on January 7 on non-monetary policy, the other a very important meeting is on the monetary policy followed by a press release, and a maintenance period that will last until March 10 to guarantee that the appropriate funds are available for those decisions. Statements and leaks have indicated that the ECB is going to use Quantitative Easing (QE) to purchase an abundance of government bonds.  Alternatively, they would have the central banks purchase so the country or countries individually would take on the risk of amount borrowed or owed separate from the interest.  They could buy bonds that are AAA rated these have little to no risk of default.  The AAA rating is issued by credit rating agencies; these bonds have the highest creditworthiness and guarantee liability.  Only four companies were left with an AAA rating after the financial crises in 2008. It seems over and over we see failed attempts on monetary expansion and all the monetary measures have been used up. They keep trying to offset deflation by printing and borrowing while weakening currency and eroding the economy.

            The ECB declined to comment, however Peter Praet, ECB chief economist had made many indications that these options are what is being considered. The Prospect of more QE has the EUR/USD dropping searching for any support. Wall street is feeling the impact hitting the biggest fall in the last three months. Commodity currencies also felt the panic, and U.S. treasury yields fell, many found a safe haven in the USD and JPY. Between the ECB meetings and the low numbers from Germany and possible withdraw from the Euro by Greece, the Euro has a long road ahead.

They just didn't have enough Greece to make it run properly

In 2012, Ebrahim Rahbari and Willem Buiter CitiGroup’s Chief Analysts came up with the term “Grexit” a blend of Greece, Euro, and Exit.  Following the Financial crisis in Greece it was acknowledged that they might be leaving the Euro, predicting that more money lent would hurt the Euro and neighboring counties and the Grexit would be the only other option than differentiated government bond yields.  In 2012, De la Rue a British money printing company was rumored to have been printing out the fresh drachma, which takes an estimated six months from time of order placement to printing on paper.  These rumors and fear created a nine-month money withdrawing frenzy.  It was estimated that Greek banks deposits fell by thirteen percent constructing a plan to impose control on the movement of money anticipating more panic with upcoming elections.

Convincing the people of Greece to leave the Euro to support a currency that will potentially collapse was not the only challenge.  The economic depression that this would cause would end with slow economic growth for many, not to mention the hardship the Greek citizens would face.  The Deutsche Bank stated in 2010 that Europe accounted for twenty-five percent of world trade; it was the largest trading partner between China and the United States.  Speculation that European stocks would plummet fifty percent and other nation’s bond yields could widen 100 to 200 basis points leaving them unable to service their own sovereign debts.

            The Euro has hit a nine-year low, for many counties and regions unemployment, flat growth rate along with low inflation it seems impossible to reduce the debt levels that would help shift this trend.  The Eurozone is better assembled than it was in 2010, The Eurozone can handle the exit without a massive hit because the privet sector only has about five percent of Greece’s debt, and the government is better equipped with bail out funds ready for such events unlike five years ago.  However, this has nothing to do with the unpredictability of the people, investors, and stability that will directly affect and hurt the Euro and the ECB.

This has become not only a financial matter, it now is highly political.The upcoming elections on January 25 in Greece have sparked some not so inviting tones from France and Germany.  With new prime ministers in Italy and France ready to reform their nations in ways that have gained total support of Germany’s Angela Merkel, who has insisted European-imposed austerity on nations who really need the complete opposite. January will be a hard month for the Euro to regain at strength, too much is uncertain and unanswered. Many questions will be pending on the candidate Alexis Tsipras, who may soon be the youngest Greek leader at the tender age of forty with a left-wing alliance Syriza on his side it seems that they deem to diminish the austerity measures. This threat is creating disorder among Eurozone members. If Tsipras is elected it is not certain that Greece would exit the Euro but it is implied. Could Greece leaving the Euro cause a ripple effect and open Pandora’s Box to many other counties assuming their role?

Tis the season!

Reports keep coming out, giving Americans this false sense of hope.  With gas prices so low the little bit of loose change that the average person has in there pocket is making them feel overly confidant in their spending.  Christmas is here and we see the manipulation of advertizing hypnotizing individuals to buy, buy, and buy.  Many people in the U.S. live way beyond there means, so they spend credit, fiat that they do not have and probably never will.  Most people have acquired a mass amount of debt, so much so that the average citizen’s family debt is over 52,000 and the savings per family is under $8,000 those numbers don’t add up to a stronger economy, yet they keep spending what they don’t have. 

I say this because when I mention what a major impact Christmas has over the market, I just cannot stress how many positions one must understand to see just how this retail extravaganza affects the global economy.  Christmas is not just a major American holiday all of Europe and may other countries indulge is this free fall of debt, Americans are just primarily consumers so we see it on a larger scale.  While countries that Americans buy goods from seem to be doing better than average during this consumer holiday. For instance, Sweden that we buy jewelry and watches from and many high end items i.e. Rolex and Omega, not to mention the pharmaceutical companies that benefit from the stress of Christmas.  So many industrial companies are depending on this season and rely on the holidays for a majority of their revenue. Like China, where we get everything from, all benefit from sales for the last half of the year.

During this festive gut-wrenching holiday that is driven by guilt and a need to spend, and credit cards to be used at over capacity.  The need to buy presents for everyone you know is totally justified and expected before paying off your house or a your car or even your electricity bills, during this holiday all this spending seems like a reasonable idea and puts families in even more debt and panic heading into the new year.  When I talk about debt, I am not just talking about individuals, I want to include huge corporations and government as well. We have acquired massive debt and the numbers are growing yet all these reports are trying to convince people that we are headed in the right direction. With Christmas here we don’t need distractions like ISIS or Ebola to distract us and the news is all puppies and babies, in fact they avoid any negativity during the holidays. They want to keep us blind to the truth, out of sight out of mind.  

During the depressions in the past we have seen it first hand people lined up for aid and food, out in the streets begging for any help at all.  Now we are sheltered from it, we have a food stamp card, government assistance personnel, whole offices dedicated to housing, disability and welfare. Free government money is the new normal. 

An estimated 45 plus of Americans are on food stamps, that is about 15 percent of the population and I believe it is way more, but that is just what they report, more like 30 percent. Our children are growing up used to and accustomed to aid, and government assistance programs, they don’t see why it is a problem to be on assistance and don’t care about it at all. Most young women in America, single mothers depend and rely on that government check and while some do benefit from the situation, go to school and see it all as a temporary time and assistance in they’re life. Others make this a life choice and take full advantage of the help, just take what they can and are comfortable living off the government. While we stay blind to the numbers and are persuaded by the reports and the FED’s false confidence, energy manipulation and media. We sit back and spend just to enjoy a day with family and friends. Tis the season to sit back save and trade, take it from me, it may make your New Year a whole lot better. -Adrienne

Don’t Do The Crime If You Can’t Pay The Fine…

With Christmas right around the corner, we should see our ponzi numbers soaring upward creating a stronger than should be USD.  Since 70% of Americans are consumers, with our numbers looking better than estimated Americans are feeling the full force of commercialism and the pressure to spend. This is always good for the USD; the low cost in oil and gas are fueling the cognitive dissonance between spending and saving.  Even though personally, I cannot see the greenback sailing on the way it has for another long stretch. I do see why traders are eagerly selling off the GBP with what has been taking place in the UK.

The people in the UK are appalled at the reality that the banks have been paying hundreds of millions to avoid jail time, for manipulating the market, literally robbing them blind.  The Financial Conduct Authority (FCA) regulation in the UK has fined five banks so far reaching the billions for “rigging” the foreign exchange rate and more. Leading the FCA enforcement is Tracey McDermott who has now been active on campaigning the need to do something more than just fine the bankers who seem to have jail immunity.  McDermott read back bank statements from 2002 all the way to 2014, so far, bankers just don’t seem to care for instance, the multinational bank Barclay's was fined for “rigging” lending rates, and the next day traders manipulated the gold market.  This is not really a surprise they had been accused of money laundering in 2004, and again 2009 they settled with the government for a cool $298 million, not to mention tax evasion, rate fixing, the list went on even energy manipulation, this has been going on for years and into hundreds of billions in charges, yet no jail time.  The only common factor is the hundreds of millions in fines paid per charge.

Is the FCA truly relying on the banks to have a moral outlook towards the criminal acts taking place? Or will real action take place? Investors and traders get weary when money handling is exposed the way it has been in the UK, with elections taking place in May of next year we should see many other scandals and hidden truths fueling the candidates arguments trying to sway votes.

Should we be following Iran is this fight sentencing our guilty bankers to death? Instead they let the GBP die along with faith in the financial system. When you cant trust the system you invest elsewhere and where better than the USD. Don’t get me wrong I defiantly don’t think our bankers are doing anything less of the described above, but I can bet they will hide it a little better.

The big “barrel” out

How can our own private oil companies compete with the Saudi state run oil companies?  The Saudis have predicted this decline for months now, so who is running this decline in the price per barrel. Who owns the most oil owns the world, and the Saudi empire cannot and will not be affected by the digital generated commodities prices, they will make revenue regardless.  Could it be such a large manipulation in oil price?  America’s grand schemes to keep Putin up at night, or keep Iran on its toes, disable Venezuela?  I do not think this was Americas plan, yes I see the pros in low oil; we can fund our overwhelming service economy.  Americans are huge consumers, when those numbers drop right before Christmas people are not spending, instead they are saving. This can take a toll on the US more than low oil prices will. The FED has stated that a lower income would provoke more spending.  The benefits of the low oil price is primarily for the EU, China and most of East Asia, not the US or Putin.  I wonder if the FED and The Powers That Be thought this one through.

In 2005 we saw a need for oil at about 7 million barrels a day, it is estimated that that number will be above 9 million by 2015.  With oil need higher than ever, many companies took out massive loans in this expectation and hope oil will again be over $100 a barrel as previously.  The US production was in full force before the ultra steep decline in price per barrel.  The lower prices have made it impossible to expand production, and have put the bids on the energy index far into the red; in fact, the energy market has been one of the worst sectors on the index.  In October when people were saying how $88 a barrel was at an all time low, and the seasonal need for oil would boost cost and not to worry.  The analysts at OPEC were extremely wrong this time, since as of today it stands at $63.56 and heading lower.  It seems that oil is falling at an astronomical rate as low as it has been since 2010 after the last crash. It seems people forgot it was as low as $35 in 2008-2009 and we are still in the $60 range, is this decline a indicator of what’s yet to come.

  Not to mention that energy sector on the index makes up the second largest high yield bond market for investors and with oil rates dropping and the energy sector performing badly it has many of those investors pulling out leaving the banks to cover the high liquidity its causing.  The selling of the banks high-yield debt exchange traded funds “junk bonds” overall banks may not be able to sell off the bonds to break even.  The sizable share decline could push the high yield market down lower leaving investors looking for a new investment.

We are living in a massively over-leveraged economy, how can we achieve sustainable economic growth with this extreme debt the monetary system has created.  The fiat and crypto currency and any digital form of decimal points have created a need to hold on, and seek out a safe hold for our investments.  What was once seen as a smart move for a working citizens to invest in a bank or IRA even SSI is now a total nightmare. Deceiving people and lies seem to make more money that honor and truth, and if we are talking about the big bucks, we are taking heavy manipulation .It seems nothing is sacred anymore and it all comes with a price tag attached, we have police and government that we all once trusted breaking us down and pushing us further into a hole we cant climb out of.  46,000,000 individuals have been on food stamps for 37 straight months.  They say unemployment is at an all time low but they only count people that are filing for the first time.  For many investors, looking at the numbers and graphs it would seem that the US is growing steadily and things are A-OK. Things couldn’t be further from the truth and its about time to make some real money. Don’t just follow the trend, the information can be overwhelming and takes more time than many people can invest into a profitable strategy. I continue to gain in trading metals as well as fourteen different currency trades weekly.  

Liquid Gold

     While on vacation in the middle of the eastern Oregon checking in now and then to see spot prices.  I was not too shocked to return to the same thing that took place last week.  Gold is moving quickly, oil is the main initiator here, as I wrote last week, that TPTB would not let it get lower than $75.  Thursday it was $74.42 if the prices remained low it could cause a major problem for the Keystone pipeline and make it financially undo-able, the break even price for the new Canadian oil production is around $85, already up and running producers can do it for much less but this affects all the new projects.
     Is it really a surprise when it came down to the release of this passing, that we see oil rising.  The Democrats are now standing behind the approval for the Keystone XL pipeline.  All we have to do is sit back and wait for the president to sign it, since he is in Asia he will get to it sometime in the next week.  Even though Congress might try to take the responsibility away from Obama, he is the only one who can approve it because it crosses international borders.  The question every broker and oil executive is wondering, will he pass it?  Legislation's like this in the past have been vetoed and frowned upon by the White house administration.  The pipeline is a major concern for the environmentalists that the Canadian extraction could worsen global climate changes and threaten the U.S. waterways.  On the other side, this is huge for the U.S. to become energy independent, creating mass amounts of job growth that can lead to a strong U.S. economy and we are in extremely different circumstances than when this bill was pushed in 2008.
      We know that gold tends to follow oil in the market and the indicators to make calls happen fast.  With the rise of the Euro and the dollar longer than it should have been we have to add in all the factors that sway PMs for instance we have the Swiss Gold Initiative coming and traders on high alert waiting the vote, but many already assume it will be a no.  The physical gold moves the market way less than the digital kind.  Let us add GOFO Gold Forward Offered Rate, kind of a way to swap gold in return for USD a lease to own dollar rate.  However, there is not an interest like on a lease with a borrower and lender where the lender gains it is more of a swap because the lender is the one paying a rate of interest.  It is not the spot price of gold; it is a subtraction of LIBOR corresponding values.  These swaps are made from one up to 12-month periods.  Shorting mass amounts of gold drives up the lease demand and that GOFO then is lower.  There are no supply problems for contract and the idea of leasing metals appeals to many especially when they see the contracts lower than spot price like we have.  A negative GOFO shows that demand for the swap is high; this could be for lack of inventory by COMEX or the futures offered by the SGE.  These indicators with the GOFO could be that big changes in the PMs could be on the horizon, even if the demand is just so traders can short gold the GOFO has shown the bottom price before could it again?

Bought Nov. 14
SLV April 17, 2015 calls strike $15.50
paid $1.23