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

Bubblicious

Governments unlike the big banks and the Federal Reserve do not have the luxury of keeping the bank scheme continuing as long as they can anymore, factors that once padded the same pockets is now harder to manipulate to benefits all parties involved. Government has elections to face, the voters with new links to real facts and information and media influence run by government. Many big businesses believe that half of anything is better than nothing at all, even just the idea that you can save or gain can be enough, the illusion that you may still have control over your money can be attractive to anyone. This is just what is happening with the big banks trying to salvage and preserve any of the actual asset debt by deflating the fiat debt, with derivatives and swaps, this ongoing process has create a global bond bubble bigger than we have ever seen. This is the compromise to avert the disaster looming, the paper millionaires will be the fist to feel it after the banks. The loss of their gains that were never real to begin with will be appeased by banks reducing their debts and the feeling of them "gaining" will pacify the real loss of all. The real question is what will cause the collapse in the global economy, inflation or deflation?
The biggest credit bubble is on the verge of bursting and we all know that the results will change the world forever. Governments used to love inflation because they are for the most part the "borrowers" so they can pay back the borrowed money far into the future with inflated money. Banks on the other hand used to hate inflation when they actually had to hold on to the loans they made now they pack and sell off the loans they make with little to no regard for the default rate or logistics of the details. The natural outcome would have been deflation from the banking crisis of 2008 , it would have lead to real business growth for the small majority, yet it would have cost the established powers that be their christmas bonuses or positions. The powers that be (TPTB) cannot have that. The complete asset forfeiture crash in 2008 was avoided by a hand out, half of our world's money given to banks, this has created a negative tenue within government and banks. This cycle we are seeing deflation then inflation only occurs when you are dealing with debt based fiat money. The banks are not any better than the cartel or drug dealers handing the ignorant a bag or a lifestyle (debt) and you are in it, stuck with it for life with no way out.
really it is disinflation, then stagnation, followed by deflation, then you get inflation across the nation, looms a dangerous fixation, with a finale of hyperinflation.
The Federal Reserve (FED) has an agenda and that is devaluing the US dollar. The FED has told us time and time again that inflation is good for the economy. Now the head of the FED Janet Yellen is admitting that deflation will be a positive thing for the economy. However, the Debt deflation is the FEDs worst nightmare,because the truth is that the economy is not what Yellen is concerned with. The real concern is the bonds interest rates, the $191 trillion that Wall St. banks and U.S. have in derivative trades. The obsession the FED has creating inflation allows government spending without going bankrupt and debt deflation would for sure wipe out big banks and the U.S. altogether. The main focus is to keep interest rates to be low as possible because a slight rise even one percent means hundreds of billions more added on to the already massive payments of U.S. debt.
Miss priced assets have lead to multiple markets manipulated by what we think has value. Possession is law and fraud is the status quo now. Banks insured by the FED, with the extensions of the commodities clauses that the Dodd and Frank Act has enabled the banks to gain control profitably. Supply and demand, the general order of human innovation, increasing productivity and the real assets that can be bought and sold and we wont really see deflation even though it is there with the things we need because those things are real, like food and medicine, unlike the swaps and derivative that are truly phony assets. There has never been a solution to scarcity, not monetary, fiscal, economic or political. Currencies can and have died, the scary thing is this time it is on a global scale. Death of our currency is close but it wont just die quickly. It will be a horrific struggle with massive denial and a fight to the death. Most people are earning half of the loans they owe. Loans for houses or cars that are three times what they are worth. People have more money in debt than in savings it is just a matter of time before people see that fiat currency is merely currency, not real value or money. For a while, currency will have increased buying power then people will start to get it and see it is being inflated, then the currency will collapse in buying power, while the buying power of money will be maintained. The only way to get ahead is to ride it out you buy into deflation and ride out the inflation.

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.

A Bull caught in a Bear trap

As Obama ends the war in Afghanistan, another war is seen on the horizon, a currency war. A fight to prevent a global  depression, economic crisis, and financial collapse.  Could it be just a coincidence that major market crashes intermixed with war, recessions and depressions come every 7 years.  After WW1 the United States globally  dominated finance. The roaring twenties brought on unexpected growth economically and industrially. Customer demand, new technology, and media created a completely new culture and lifestyle, women be coming accepted in the job market creating more income for their families. Women in many countries for the first time could vote. We saw the influence of music and art, a fist motion picture change the post-medieval European tradition, an existential experience.  The change was massive, fueled by a supply side economic policy.  The money spent brought back by soldiers acculturated into consumerism.  The 1920s was a historical processes and cultural phenomenon a huge change from the post-industrial life they thought that Radio, automobiles, film, sports and electrification enabled for Americans to spend spurring a demand for consumer goods.  .  As Americans over spent the term "buying on margin" entered our vocabulary and in 1929 stock prices on Wall Street collapsed, putting millions out of work worldwide, The Great Depression or called Black Tuesday.  1932 The great depression at depth, 1939 beginning if WW2, 1946 recession and the end of WW2, 1953 Recession and the end of Korean war, 1960 Recession, 1967 Israeli -Arab war, stocks decline, 1973-1974 Arab oil stock causes a deep recession, 1980-1987 inflation and interest rates create a massive rescission 1994 stock market crash, 2001 bond crash and Mexican peso crash, 2008 do I even need to elaborate?  Banks can’t cover the quantity of loans owed in bank credit in fact it is estimated that owed in more than ten times what is actually in bank reserves.

2008 was just a rehearsal for what is to come.  A global depression has began, the decline in oil at such a fast rate, steel and cement following the decline with lack of demand and over abundance of supply.  Many people are terrified about the market collapse, what they do not realize, the crash has already started.  We have already seen this with many different currencies crashing, a result of low demand and fear.  Many individuals and companies that are leveraged are bailing on their high yields.  One would assume that this is some grand swindle by bankers or the FED perhaps the government it could be a JP Morgan next great idea.  If or when this major crash takes place that we would think the powers that be would not let anything come between them and their large piles of fiat, they must have a master plan.  This will be the time for the FED to come to the rescue and presume a hero like status forcing our only choice to induce QE4 and bank bail-ins.  The reality of raising interest rates would be suicidal for the FED.  Look at what the market did in December with just a threat of them raising rates.  Fundamentally, the market is prime and ready for a crash.  There is not an economic fundamentals to support the strong USD or stock prices, we have used cheap borrowed dollars and they will state, that this will be our recovery. Now that the USD is strong, we will see more and mutable  risk assets stretching over nine trillion dollars ready to explode in our face. The energy issue is just the beginning.  1929, 2000 and 2007 were the only other times the S&P 500 higher than its historic average since 1882.  Could this manipulation to lower oil, the market and raise the USD to generate a compound interest trap, sending the Eurozone into deflation.

And they believe in Unicorns too

Should we be anticipating this major change predicted by so many with the looming Federal Open Market Committee (FOMC) meetings that will be taking place this week?  The fear of the FED’s decision to raise rates has the market bouncing out of control.  We see much volatility on Wall Street, there is just no room for the FED to raise rates while the market is acting like it is.  We seem to be so influenced with even the threat of the FED’s decision to raise or not.  I get it, it is a big deal and some kind of change has to take place, I just do not think they really will raise those rates, if you look at the FED’s past history they do not really seem to have a clue what to do.

The FED thought adding a Zero Interest-Rate Policy (ZIRP) was going to be a “fix-all-solution” and became a major liquidity problem.  The FED thought that cheap money would entice big business to invest, thus strengthening growth with hope of refinancing and creating more fiat to spend or invest in the market, lifting asset prices knowing that only about half of Americans even hold mutual funds or stocks and wanted to follow in the footprints of the ever-emerging 1989 Japan.  We are now seeing how that worked out for Japan, and we should be taking notes.  The ZIRP has created a mass of bailouts and left people who had been saving their whole life with nothing, pensions and funds undervalued and many unable to even think about retirement.  This caused mass miscalculations of capital and distorted the market for so many.  The worst thing about it is that it gave the government lead way to borrow and spend in to the hundreds of trillions and produced a large amount of Quantitative Easing (QE).  This has been a conscious decision that the FED has made knowing what was to come, so what makes you think they will really raise rates and fully quit QE?

The FED will not raise those rates and so far, they have an excuse for everything.  They have blamed the financial crises, inflation, GDP growth, employment, then China then Europe, Wall Street, volatility, then wage growth or lack of.  Now they blame the fact that the dollar is too strong, energy too low, at one point they even blamed the weather.  It is ridiculous that we base our trading on their actions or lack there of, but we do, or should I say we base it more on the predictions of how the market can and will move.  All this meeting will really be about is who will have to clean up this awful mess they have created and maybe they will have a new bank welfare system that can assist in the clean up of all the miss-priced assets of high yield returns and piles of crap numbers and fake balance sheets.  The FED has a big hole to climb out of, and the boomers are not going to just stand by as the FED makes it impossible to gain, soon we will see the affects of them pulling their money out of the market and banks, to invest in precious metals and physical holdings a more grounded investment.  This causes major bubbles and we know what bubbles’ do, don’t we.  Soon we will see what real inflation looks like and real volatility.  For now with how things are going, they are not going to change too much and even if they did, it will not sway the strength of the USD anytime soon not with the holidays right around the corner and the skepticism of every other currency.

Gang Related

For years now, the United States was eager to follow in the footsteps of Japan.  In the new-found sector Japan has come into, regarding inflation sheds light on the FEDs reality that Quantitative Easing (QE) may be here to stay.  The US is about to see inflation like never before.  News has come out stating that the raise in interest rates discussed by the FED is looking close to impossible to achieve.  Central banks create foreign capital that floods the US and pushes rates down.  The statements that have come out state that the FED has no idea how they will make it work without QE.  The focus and comments that Yellen has discussed about diversity within the FED would seem that she is more interested in women becoming executives than in finding a solution.  People may believe that the FED is controlled by Congress; truth is everyone is controlled by the FED, with an exception of banks holding mass amounts of precious metals they have more control than we could ever imagine. 

What will the solution be?  Can there even be one?  We are so in debt and printing money seems to be the only way the US will stay a global power.  Around the world, leaders are becoming more and more disappointed in the actions, as well as the lack of action, taken by the US.  This leads to uncertainty with the USD and has other world leaders looking at ways to prevent America and keep it from overpowering the decision making process for other countries that gain headway economically.

When you look closely at America, you can find some major flaws.  Yes, it is a land of freedom, and believe me when I say I am blessed to be in this country and to be a proud American.  The problem is Americans are such individualists.  The fact is we strive for individuality with ourselves, our families, especially when it comes to our money.  We are the prime example of low- and high-class categories.  When it comes to communities in the US, you see a strong bond in lower income communities, where reliance, family, and even gang affiliation...  If we look at this from a global military perspective, you see America as higher class, with other counties looking like those community driven neighborhoods.  So why wouldn’t they just team up with one another to create their own “gang?”  While Obama is looking at pipelines and immigration, he seems nearsighted to the fact that other countries are teaming up while America is warming the bench, unable to play at all.

America has not needed (so far) to team up or rely on anyone or anything but oil, keeping it in USD and keeping USD in global reserve currency.  Other countries are sick of us dominating the game.  America has the force and power to take over anything anywhere at anytime.  Just to put this in perspective, no mater how many weapons a country has, America reigns supreme.  Warfare is fought by the powers of finance more than weapons.  And we love to spend our QE on our military.

            Yet we see Putin making nineteen presidential trips this year alone, meeting up with many world leaders, most recently with Kim Jong-un.  That must have interested Hassan Rouhani, the leader of Iran, who has eagerly been waiting approval for “nuclear energy.”  The decision is supposed to happen Monday.  Is it so odd that we do not see this information on most news networks in the US?  This writer does not see approval going forward.  I doubt Rouhani will be surprised at the denial and why wouldn’t he just make Russia and North Korea his allies due to the fact they have the nuclear power Iran is in need of. 

Right now, other countries are feeling the wrath of treachery, power, and hypocrisy the US is ruled by.  No one seems to be feeling it more than Russia.  Globally we cannot survive without the oil from Russia, yet we keep pushing oil prices down, expecting them to fall.  We seem to forget that Russia has been living comfortably in a black market with hyperinflation since the 1990’s.  Us trying to destabilize them is close to impossible.  They are true survivalists and have the resources and global firepower to keep up with and surpass our already bankrupt US shale companies.  Putin knows Russia will be just fine when, in a few years, oil will be right back up and the US will be in yet more debt.  America is the most powerful when it comes to many things, the people are not survivalists by a long shot.  We are sheltered and blinded by media and comfort, but we mere sheep, with a government that is controlled by bankers not the democracy that so many would love to believe exists.

Putin is set on shifting the anti-corruption plan many countries set in place globally.  He has been preaching about the corruption of foreign leaders and it could be much closer to his home than we understand as regards the Ukrainian conflict.  The whole mess with Ukraine seems to be a conspiracy lover’s dream come true.  All we know is that the plane went down.  We have only a third party video and no black box to be found. Nor is there any solid information that Russia was the one to bring it down.  What is odd is that the Dutch have agreed to keep any information about MH17 a secret…and somehow they got 122 tonns of gold back from the NY FED.  We are trying to destroy the ruble by driving down oil prices, while in all reality it costs Russia only about $35 a barrel, unlike the US and its strict guidelines for oil manufacturing.  After the $35, the rest is all profit for the Russians.  Even with oil prices dropping gold keeps rising it seems to be all these newly formed teams are becoming more and more interested in.

Fairy Tails

          Composed of a board of governors, the reserve bank presidents and the seven members of the Federal Open Market Committee (FOMC) meet eight times a year to discuss and set interest rates, these decisions will control the money supply and the exchange value of the U.S. dollar.  The FED who buys and sells government securities that can tighten or loosen the monetary supply this in return will raise or decrease interest rates.

Today they publicly announced the end of QE3 they perhaps may just call it something else, weigh-able aid, perceptible appease, or computable assist.  They can call it what they want, but the one thing they will not really do is stop it.  They announced their extraordinary positive outlook on our economy.  I do not really know where or how they got their information; they said that they see solid job gains, lower unemployment due to under utilization of labor resources.  That low energy costs will hold down inflation (back to my USD and oil theory) or that the inflation is somewhat diminished.  I do not know what billionaire world they live in. While in the real world we are seeing that the FED is buying up the assets we supposedly own.  We will never pay off our homes or land, we are taxed so much that until we are dead they own us.

If they raise the rates it will cause a huge disruption in the world of politics, and with elections so close it is hard to fathom that Obama would let them.  How long till QE4?  The real economy cannot and will not just be fixed by debt

"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%

Interested in Yellen at Janet?

First off let me start by quoting myself...“after this Wednesday, gold will be skyrocketing”, overnight we finally saw the 1% jump in gold, 2% in silver, platinum 0.5% even palladium rose 0.4%. This is just the beginning. Other commodities rose as well with the capital rushing back in, as the USD weakened. The FED announced that they will not raise interest rates, knowing how unstable the economy is. With the focus on the Asian and European market, Britain's FTSE 100, Germany's DAX and France's CAC 40, showed the USD weaken quickly.

Traders and investors are afraid that Janet Yellen’s will take the views of her predecessors, Alan Greenspan or Ben Bernanke regarding her decisions about monetary policies, which will lead to market volatility as it has before. We can blame this meeting and low interest rates all we want, but Janet is not the only reason we are seeing the market move like this. I feel that people are hypersensitive right now, a lot is happening between ISIS, Japan, Ebola, etc. The world news is pumping us all up to panic, causing the market to act unstable and unpredictable.

The USD continues to drop right after Janet’s announcement, but also after a release came out from a meeting the FED had in September that stated, how if the dollar rises it could very well have a severely negative “impact on the fragile U.S. recovery”. When the FED states that they are worried about a strong USD, you can bet its going to weaken. When this happens, these decisions are made knowing well what will happen and what is happening now, you have to ask yourself why?  What are the true intentions?  This is when you have to look at all of it from new and sometimes odd perspectives.

Higher inflation is on the rise, it is important to get your positions correct and hedged accordingly.  If you have never traded metals now is the time to start, throughout history it has maintained purchasing power, and is a solid investment.

Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $8.20, with a gain of +20.5%
Buy Gold $1191.50, Currently at $1223.20 for a gain of 2.66%

FED Found Economy Dead

Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $7.95, with a gain of +16.91%
Buy Gold $1191.50, Currently at $1219.70 for a gain of 2.36%

The strength in the economy is not measured buy the market stocks; it is the FEDS balance sheet that rates it.

 Not any branch of government, agency even president can overrule the actions by the FED. The FED it is an independent agency, in fact they have there own rules and standard.  It may seem that the FED is this secret agency, comparable to the Illuminati or the Masons, with all these numbers, statistics, with many things to hide.

On the contrary Rosengren has published federal funds rate targets. He also released limited and edited minutes of committee meetings, along with announcements of interest rate targets, and how long they see those targets remaining.  On Rosengren’s “path to transparency” he even let an outside companies Deloitte & Touche along with one of there own inspectors mandated by congress to audit the fed.

 Of course, who knows how fourth coming they truly were with their information, what relationship these “good ol' boys” have with one another, and to what end the FEDs statements can be manipulated in an audit. The government and the people want into the FED. Now the chairman of the FED Ben Bernanke testifies regularly before Congress, and the public, quite possibly to just ease the media and people from pushing their way in. The FED may just be misunderstood by many, some see it as a essential need to stabilize currency, others see it as doing much more harm than good.  Charles Plosser president of the FED argues, “They don’t have the tools to wind down the stimulus”. If they don’t, then what is the “Doomsday Book”?  Will it ever be released?  The global economy should have collapsed in 2011, the book has been implemented and used since 2008, could it have so much to do with just why it didn’t?

The FED could just be the most sophisticated money-laundering organization on earth ever. They do not want us to know what is in that book.. Could it be page after page of ways to rule the world? Chapter 24.  Ensure a nasty untreatable bio-weapon or virus that will make its way to the U.S. In the panic, print more money.  Chapter 20 to make gold illegal and nationalize assets.  I personally think there is only one word in the book: RUN.

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.

Lets get Phyiscal, Phyiscal

Strange days are now upon us… In January, physical bullion sales were astronomical and it was affordable for the most part the buyers were excited for the rise of the numbers. Now with the USD strong why are we seeing the same pattern, gold is dropping in value, yet buyers are fanatically buying the physical bullion up. In fact, more physical gold was sold in September than in October of 2013. Despite the current luxury tax, China and India are back buying the physical bullion. Reports show high demand of a 30% increase, possibly due to the current holiday in China and festival in India that is about to take place. Manipulation of the markets may be taking place by common interests and this is said to be a general rule to move the market in a direction that is beneficial to the parties involved. I say this because the buying power of gold shows strength, yet the price is decreasing daily. This is really only with the USD, if you look at other currencies you do not see the price of gold as low, worldwide the price and demand for physical gold is still very strong. If you look at the weekly reports from SGE vaults, they withdrew 50.3 tonnes in week 38, the demand is that high. Silver in London is declining while Shanhi (WPSE) leveled out without decline at SHFE, SGE vs. COMEX. What reports you compare determines the information you receive, reports like OTC tend to lag and COMEX can only give us so much. Seems that the world Gold Counsel would like us to think that the gold demand is low. Just like the U.S. government would like us to believe the USD is strong and that we’re not in a recession let alone a depression. Gold and metal trading has kept many traders afloat in times of uncertainty. If you are not yet trading metals, now is the time to start. Finally coming to an end of a good run, the position from 1309.88, now closed at 1191.50 with a gain of 9%. Cheers Friends.

USD a R rated feature

In 1985, the dollar was strong and the economy and equity markets were how they say, “booming” They did this with all the higher interest rates enforced by the FED, then again in 2000. These were the times the dollar compared to right now, yet the USD is still 30% weaker than in “85’ and 20% weaker than in 2000. So how is the USD soaring above all these other currencies? We as investors want to look at the Purchasing Power Parity value or (PPP) that is just what Scott Gannis did when he wrote the article “The Return of King Dollar” he decided to compare five different currencies to the USD, in this form he states… “PPP theory holds that, over time, currencies move vis a vis others in a way that reflects changes in relative prices between countries. Currencies that depreciate against others typically have higher inflation rates, and currencies that appreciate have lower inflation. For each currency, I have picked a base year in which I thought that prices were in rough equilibrium, and then adjusted that value over time for changes in relative inflation rates. The current PPP value of each currency is therefore approximately equal to the exchange rate that would produce roughly equal prices for a given basket of goods and services in each country.” He goes on to show graphs that use a basket of goods (commodities) with each currency and used inflation information for charts from the U.S., the PCE deflator; for Australia, the CPI All Groups Goods Component; for Canada, the CPI; for the Eurozone, the German CPI; for Japan, the CPI Nationwide General; for the UK, the RPI less Mortgage Interest Payments. No shock the USD lost major value against all. So what is really moving the market? CNN put out a “Fear and Greed index” I mean truly they did! I find it amusing that how this can be measured, short fear, long fear? Sure why not. Investors should be terrified right now. Fear, as I have said before plays into why the reality of why the USD is weak, the traders ever looming fear of the market collapse. The true reality that the USD is a reserve currency and will have to handle the EUR’s deflation. The present investment demand from china is low, as well as need for oil. We see that commodities are decreasing all over the market. Leverage is at a all time high. In fact right now the market looks like a horror movie “Soul of Dudley” and just wait the sequel is coming soon, Blockbuster hit “were F@$#ED” Ethics in the U.S. are separated by law apparently. Holding short at 1309.88 current price 1214 with a gain of 7.3% Fxmade2trade

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.

Don't trim the HEDGE too close America

Could it be real yields, interest rates, and crude oil, have less to do with the gold than is believed. Gold as a hedge with inflation? The gold price chart varies year to year compared to all sorts of inflation data and seems completely random in the patterns. What moves Gold? Gold is much more appealing when the price is high and seems to be a major “time trend” so along with all the coloration's and charts people put above their own personal strategy, are they looking at the bigger picture. Most think gold is the most unproductive asset one could hold. Could it be that gold is just valuable because people “think” it to be? That people just want to value something, anything, might as well be gold. Could it be that it truly is a natural limited resource, that will again up, way past $2000 oz. in late 2015? When paper money and bonds and futures all fall gold is a physical asset that has been used for thousands of years worldwide. Well I will buy into the idea that the dollar will fall, and possibly the U.S. collapses completely, so I guess I am buying into American human nature and the workforce failing, with no faith in the U.S. government at all, call me a cynic if you want. We only own 5% of all the global gold reserves and it baffles me that our monetary policies are the fuel to the worldwide price. When the over saturation of paper gold get's torn to pieces you better hold on to your physical metals and keep bulling on my friends, looking ahead of course. Holding short at 1309.88, Current price 1221 a gain of 6.7%

YOU"RE as COLD as ISIS

Traders seemed undaunted as the U.S. crusades a “bomb ISIS” movement and when September 11 came and went and the S&P only fell 1% all seemed unchanged on the market even with the loom of a terrorist attack. As the U.S. government tries to dumb-down the reality of what it would mean for investors if, and when they do attack the U.S. so for now we are looking at dipping our hands into yet another war that we for now have nothing to do with… well, at least not on out home turf. The reasons could vary from protecting our country, or a much deeper level of ways that the government would be able to access areas and acquire resources otherwise unobtainable to the U.S. The pentagon estimates we will spend close to seven million a day for operations in Iraq and Syria. Is this a coincidence that all our involvement in wars and “aid” are places of major oil lines or mines? Even the Malaysian crash let us into inaccessible areas and see what kind of technologies our “competitors” hold. Do we really have the money to spend seven million a day? The impact on our already extensive debt, bodes the market will have a monumental crash. When this event takes place and this is only a matter of time before traders fear takes over. They will start bailing on the USD, searching for more physical investments. If you do have metal in the physical form hold on its coming soon my friends just do not rush it and be pulled in to soon. Holding short at 1309.88 current price 1222.00 a gain of 6.7% Fxmade2trade

A "DENT" IN GOLD PERDICTIONS

The founder of Dent research and Harvard grad Harry Dent is a fascinating and amazing individual, many traders have relied on his predictions to aid and sway their own strategies. However, can his predictions of gold being at $700 in 2015 and in 2020 to $250 be real? Maybe, it could all be propaganda to sell his "The Demographic Cliff," book and idealism. He predicts a crash in our economy like no other, and that I can believe more than gold being that low even after the crash in 2008 trying to buy physical gold was close to impossible. If and when the market does collapse again people do turn to physical metal as a great investment as well as by then the anti luxury ban in China and India will be over, and just because gold follows the trend of crude oil, it doesn’t have to. “If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he shall end in certainties”-Francis Bacon Holding short at 1309.88 current price 1216.00 a gain of 7.2% Fxmade2trade