They Are Officially Eyeing up Pensions
I have been warning that my sources on Capital Hill have been pointing to the next great take-over that is coming – the $19.4 trillion in pension funds. This is now starting to hit the mainstream press. This will be the way to regain national security by buying back foreign holders of US debt. Additionally, keeping interest rates so low, at 2% pension funds cannot survive with US Treasuries anymore. The typical allocation has been 40% in US Treasuries. That has no choice but to decline. Therefore, we have the sudden interest now of the U.S. Consumer Financial Protection Bureaueyeing up the $19.4 trillion in retirement savings as a measure of course to protect consumer investments with decisions of people with absolutely no investment experience.
I have been warning that my sources on Capital Hill have been pointing to the next great take-over that is coming – the $19.4 trillion in pension funds. This is now starting to hit the mainstream press. This will be the way to regain national security by buying back foreign holders of US debt. Additionally, keeping interest rates so low, at 2% pension funds cannot survive with US Treasuries anymore. The typical allocation has been 40% in US Treasuries. That has no choice but to decline. Therefore, we have the sudden interest now of the U.S. Consumer Financial Protection Bureaueyeing up the $19.4 trillion in retirement savings as a measure of course to protect consumer investments with decisions of people with absolutely no investment experience.
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Update on Computer Modeling
We are getting closer to bringing on-line the full model where clients will actually be able to ask the computer questions. This is theREAL model that taught me how the world really functioned. Many have asked if I personally can really be replaced. That is my goal and new modeling has been underway for the past year as I try to code those subtleties. True, it is not easy. But it is clear that eventually the only way to really help society is to create a knowledge base that accumulates over the course of generations.
There are those who are personally greedy and other who will do anything to stop this project. Perhaps it is the battle between the evil Karma and the good. What is clear, however, is that with each crisis, society simply tries the same thing over and over. It would be nice just once to have a computer you asked what are the options and has anyone tried this before? What was the outcome? We are simply the definition of insanity – we keep doing the same thing over and over again while expecting a different result.
We are getting closer to bringing on-line the full model where clients will actually be able to ask the computer questions. This is theREAL model that taught me how the world really functioned. Many have asked if I personally can really be replaced. That is my goal and new modeling has been underway for the past year as I try to code those subtleties. True, it is not easy. But it is clear that eventually the only way to really help society is to create a knowledge base that accumulates over the course of generations.
There are those who are personally greedy and other who will do anything to stop this project. Perhaps it is the battle between the evil Karma and the good. What is clear, however, is that with each crisis, society simply tries the same thing over and over. It would be nice just once to have a computer you asked what are the options and has anyone tried this before? What was the outcome? We are simply the definition of insanity – we keep doing the same thing over and over again while expecting a different result.
US – Italy – China
Of course, the USA stock futures and the dollar came under some pressure as the shutdown of the government appears more likely. Everyone knows this is just drama and posturing as if the USA would actually default. But hey, it is good for moving markets as the talking head talk to themselves so much, they will confuse the issue, The euro is also feeling political troubles as it is becoming increasingly clear that there is a movement toward federalism in Europe and Brussels will be taking over most of Europe. But then there is the Italian government that has teetered on the edge of collapse. Italy is too big to bail-out. Then there is China that surprised everyone with a downward revision to its activity in its factory sector.
We are still headed into a turning point this week/next in most markets.
Gold Lending Could Stop in London
Many of the Goldbugs will be happy to hear that the London Bullion Market Association (LBMA) says it might start charging member banks more or even dissolving the Gold Forward Offered Rates (GOFO) – the rate at which dealers will lend gold against US dollars – due to new financial market regulations. The push for regulation stems from the Libor (London Interbank Offered Rate) manipulation scandal in 2012. The International Organisation of Securities Commissions (IOSCO) has been looking at how to supervise market benchmark setters.
The truth behind gold lending was also the expansion of the market and added liquidity. During the 1970s, the way OPEC members could legally earn interest under Islamic law was to “buy” gold and “sell” it forward collecting the difference that was not formally called interest. The OPEC nations ran their money in gold in this manner and that helped create the liquidity to launch gold as a viable futures contract before 30-year bonds hit in 1977 and even the S&P500 futures that did not appear until 1985. It was gold that was the leader in creating an international marketplace. If gold can mo longer be used in this manner, there will be liquidation of gold holdings by those who still use it to park money and earn unofficial interest for religious reasons.
The Chairman of LBMA told Reuters reporters on Sunday that the new principles require the body to “look at how data is collected, how it’s recorded, who is administrating it.” If members decide that they “don’t need to spend more money on regulatory affairs [...] then the GOFO might not exist.”
This could be bearish for gold and actually reduce its liquidity. Money has parked in gold for religious reasons. If there no possibility of income, there is no reason to park cash in gold for religious institutions. Some will immediately disagree and claim money is there because it’s bullish on gold. That is like saying everyone in New York is a banker. In any market, people buy for a variety of reasons. It is NEVER a single act that causes all people to buy or sell. You cannot reduce it to a single cause and effect.