Metals Still Pointing Down
The precious metals are still pointing lower into our Benchmark targets. Indeed, the hunt for money by government is becoming so severe we may see the second Benchmark complete the decline, rather than the first. So be prepared for that development. The hedge funds are starting to sell again, keeping in sync with the charts. Our Energy Models are still negative on the monthly level.
Silver has held the Break-Line Channel for now, but critical support lies at the $12 level. A monthly closing below that will be the final signal that the extreme targets we provided in the the International Precious Metals Report will most likely be seen before this bear market is complete. So nothing has changed to alter those forecasts.
The End of Bonds? Look Out Below 2015.75
Since 1985, I have warned that the Big Bang was coming 2015.75. Here is the slide from our 1998 World Economic Conference (WEC). This target is the culmination of 51.6 years from the first break in the Bretton Woods Monetary system – 1964.15.
So what was 1964.15? That was the end of silver coinage. The following year began the copper-nickel coinage. We should see important turning points in 2017 and 2020. We will be going over these targets at the upcoming WEC in November.
There is a crisis unfolding in the bond markets right now. There is no bid for bonds and liquidity is vanishing rapidly. When the crack materializes, this is going to be so bad it is scary. This is BIG BANG in spades.
The Feds Are Hunting Money Retroactively – Is a Real Estate Crash Coming?
If you apply for a mortgage, you will suddenly encounter the REAL hunt for money. My sister just bought a house and to get the mortgage she had to explain every deposit and cash withdrawal in her account going back five years. My mother had simply written her a check for $400 to reimburse her for picking up some medicine. They wanted her to explain why my mother gave her $400.
Another friend, who lived with his girlfriend for five years and shared an apartment, encountered the full fury of the government’s hunt for spare change. His girlfriend had written him checks for half the rent for five years. He had to explain every one of those checks before they could get a mortgage to buy a home together.
This is completely illegal, yet banks are complying. This is all under the pretense of TERRORISM, whereby they have to know where every penny goes. This is not applying a new law with notice that from this date forward you have to keep track of everything you do with anyone else, as in East Germany, Stasi, this is being applied retroactively. The banks then report that info to the IRS and if you lie somewhere they will convert that to perjury and threaten you with five years in jail. My sister withdrew $2,000 in cash every few months for my mother for incidental purchases. Every one of those cash withdrawals had to be explained. This is between family members; there is no pretense of TERRORISM. We are watching all our privacy and rights vanish before our eyes.
It is no longer good enough that you pay your taxes. Now they want to know to whom you are giving any money, right down to $50. As a matter of law, if I pay a lawyer for work, I must issue a 1099 to document if I pay him any fees. They are tracing every dime.
This sort of red tape will come into play, seriously capping real estate in the housing market. We should expect prices to peak out in general, for this asset class is being hunted. It may be that the high end holds up better, but the low end that needs a mortgage to transact will find it increasingly difficult as the economy turns down, rates move higher, and banks back away from long-term loans.
Cash is rushing into the short-end. The long-end is starting to falter. This should be the same for most real estate markets. This is a 26-year high in Switzerland as well and the rush for condos in Toronto and NYC should top out on this wave where prices depend upon mortgages. Expect the core real estate to peak out with this wave that requires mortgages. This type of unconstitutional tracking of money will eventually discourage people from getting mortgages and as buyers are discouraged in the USA, they will move elsewhere. Caution is advisable.
Boehner Wants to Join Obama to Raise Taxes on Small Business
John Boehner, Mr. Ultimate Establishment Republican, is desperately trying to secure the passage of Trade Promotion Authority (TPA) for Obama, which would give him fast-track authority to secure congressional approval of at least three secretive trade deals without the public having a right to know what the hell is going on. Why is Boehner so willing to violate the Constitution and surrender what remains of some Democratic/Republican process? There must be something behind the curtail deal for him and his family somewhere.
The Democrats shot Obama’s dictatorial trade deal down and Boehner is aligning himself with Obama. This is really strange. Boehner is now secretly supporting an increase in taxes on small businesses. Boehner is destroying the Republican Party for he is simply Mr. Washington. Perhaps this deal is the straw that breaks the camel’s back and splits the Republican Party.
Unfortunately, we should expect taxes to rise sharply over the next four years. The government budget will fail and as interest rates will rise, so will the deficit. Their solution is ALWAYS to raise taxes – never reform.
U.S. Continuous Average Temperature Index – Discontinued
The National U.S. Historical Climatology Network (USHCN) monthly temperature updates have been discontinued. The official CONUS temperature record is now based upon nClimDiv. USHCN data for January 1895 to August 2014 will remain available for historical comparison. However, one must wonder if the data, which was demonstrating a cooling period rather than global warming, was conflicting with political agendas to raise taxes based upon false information.
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