Its a Tinfoil Hat Conspiracy
QUESTION: Today employment came with 195K.
1- If Europe is imploding, China slowing, Emerging markets slowing, is the US employment story sustainable?
2- After the governments bond collapse beyond 2015.75, could USA devalue the dollar and make a combination of bond default with a new currency?
3- Is physical gold in the allocated form in a Bank a safe way to keep it?
Thank you very much.
ANSWER: The question ASSUMES that people on Capitol Hill even agree there is a problem. If you try to talk about stuff like that, they will NEVER listen and look for the tinfoil hat. These people are in “power” and the idea that they are the problem does not cross their mind. They do not even consider a default, devaluation, or a change in currency. You are assuming WAY TOO MUCH mental capacity.
These types of economic crisis unfold in slow-motion. It is not rapid in the least. Each event is like a domino. One must push the next down. We MUST see Europe and Japan fall first. That puts the pressure upon the dollar sending it higher, and that turns the US economy down as was the case between 1981 and 1985.
European structure could not have been worse. We needed a consolidated debt and that would have created the reserve currency if Eurobonds existed. Leaving each state with its own debt created a single currency without any reserve capability. It is market DEPTH the creates the reserve status. Yes China would like to create that status, but until we stop the borrowing, the US dollar remains the global reserve currency and that will never be displaced regardless of China simply allows its currency to float. It is more than that – it is DEPTH.
European structure is the worse of every possible world. They will try to roll out Eurobonds after the German election, but here too, they miss the point. For Brussels to simply borrow is not the solution. You cannot have a reserve currency with fragmented financial markets. China cannot reach the reserve status regardless how many deals they cit to allow currency trading. You need a sizable market and China is not there yet.
Only when the dollar soars to new highs, blows all the dollar loans out of the water, at last we will see the start of meaningful reform. Nobody will reform anything until there is no choice. US banks would turn over whatever gold they have of your in a heartbeat if the government said to do so. Therefore, US banks are not to be trusted from that perspective.
QUESTION: Today employment came with 195K.
1- If Europe is imploding, China slowing, Emerging markets slowing, is the US employment story sustainable?
2- After the governments bond collapse beyond 2015.75, could USA devalue the dollar and make a combination of bond default with a new currency?
3- Is physical gold in the allocated form in a Bank a safe way to keep it?
Thank you very much.
1- If Europe is imploding, China slowing, Emerging markets slowing, is the US employment story sustainable?
2- After the governments bond collapse beyond 2015.75, could USA devalue the dollar and make a combination of bond default with a new currency?
3- Is physical gold in the allocated form in a Bank a safe way to keep it?
Thank you very much.
ANSWER: The question ASSUMES that people on Capitol Hill even agree there is a problem. If you try to talk about stuff like that, they will NEVER listen and look for the tinfoil hat. These people are in “power” and the idea that they are the problem does not cross their mind. They do not even consider a default, devaluation, or a change in currency. You are assuming WAY TOO MUCH mental capacity.
These types of economic crisis unfold in slow-motion. It is not rapid in the least. Each event is like a domino. One must push the next down. We MUST see Europe and Japan fall first. That puts the pressure upon the dollar sending it higher, and that turns the US economy down as was the case between 1981 and 1985.
European structure could not have been worse. We needed a consolidated debt and that would have created the reserve currency if Eurobonds existed. Leaving each state with its own debt created a single currency without any reserve capability. It is market DEPTH the creates the reserve status. Yes China would like to create that status, but until we stop the borrowing, the US dollar remains the global reserve currency and that will never be displaced regardless of China simply allows its currency to float. It is more than that – it is DEPTH.
European structure is the worse of every possible world. They will try to roll out Eurobonds after the German election, but here too, they miss the point. For Brussels to simply borrow is not the solution. You cannot have a reserve currency with fragmented financial markets. China cannot reach the reserve status regardless how many deals they cit to allow currency trading. You need a sizable market and China is not there yet.
Only when the dollar soars to new highs, blows all the dollar loans out of the water, at last we will see the start of meaningful reform. Nobody will reform anything until there is no choice. US banks would turn over whatever gold they have of your in a heartbeat if the government said to do so. Therefore, US banks are not to be trusted from that perspective.
Gold & Euro – Here we Go Again.
One reader writes making a statement that clearly we are so influential and that is why only a fool does not read our work. Some people assume simply because I said Friday was a low in gold and we should get a 3 day reaction rally and it does, that this is all influence. This is simply a distraction. What if the markets are far more accurate and there is tremendous hidden order in the markets than people suspect? There is no random walk nonsense. Einstein said it best – “I cannot believe that God plays dice with the universe.”
Let us be honest. The whole idea behind the Tower of Babel was to disrupt the communications of people. When it comes to the nature of all things, there remains a wealth of difference so you will never achieve consensus. If I am right and there is tremendous order to this illusion of chaos, then politicians lose power to say vote for them and they will manipulate society to create the perfect world and economists lost the power of playing God and have to focus on studying HOW things function rather than trying to alter the nature of humanity.
In gold today we have three Weekly Bearish Reversals 1233, 1197, and 1176. Take out all three and we should expect a drop to 1040 area. It would be fantastic to see a collapse to $950 by the first week of August. That would destroy gold in the eyes of most as even an asset class. That would then set the stage for a real bull market.
The Euro peaked precisely with our forecast array on June 18th the week of the 17th. Everything is showing high volatility as we enter the ECM target week in August. The weekly Bearish Reversals on the cash for today at 12914, 12889, and 12841. The main level of support is 12137. Keep in mind that with the German banks in trouble, that will be the final straw for the collapse of the Euro. This will push the dollar higher and gold lower.
For those who are trying to get familiar with these arrays, there is a brief explanation – How to Use the Forecasting Arrays.
Male or Female Makes No Difference – They Are All After Your Money
When Diocletian (284-305AD) came to power after the Great Monetary Collapse of the 3rd Century, he sought to restore the economy even reintroducing silver coins. However, to accomplish that he imposed aggressive taxation and invented passports since you could not travel leaving your town unless you paid your taxes. This is exactly what is in Barbara Boxer’s Transportation Bill that if the IRS “thinks” you ow money, they will revoke your passport preventing any travel until they say you owe nothing. History repeats because the passions of humankind never change and government ALWAYS see the people as the problem, never that they themselves cannot manage anything.
In the United States Congress has been circling the wagons to protect the NSA acting as outright liars pretending this is all about terrorism. It isTAXES and hunting down every penny they can get. The USA has been sending letters to Canadians informing them that since they had one parent that was American, they owed taxes to the USA since they are property of the US government. To the USA, taxes are not your “fair share” of anything – it is what government considers its “fair share” or you total productive capacity.
While Francois Hollande of France has been loud about the NSA spying on European politicians, it has come out that France also taps all phone calls and collects emails of its citizens not for terrorists, but for taxes. The same is going on the UK and just about everywhere in Europe.
This is the Sovereign Debt Crisis. Everything is imploding. We are losing absolutely all freedom because these people who CLAIM to represent us have become the greatest oppressors in history. I have stated many times, there will be NO such thing as HYPERINFLATION for that assumes government will try to be honorable and meet its promises. There is just NOexample from history that has EVER shown any government that tried to do so. They have always seen the people as the problem. They never see themselves as the source of any problem. Alan Simpson is a classic example. He had the audacity to call the seniors the greedy generation all because they dared to expect government to honor its promises.
The trillions of dollars of unfunded liabilities will be defaulted upon just as the City of Detroit defaulting upon its pensions. Rome had the same problem. As they attempted to inflate, confidence declined, and government hunted down capital. Everything fell apart right down to the courts. No government has ever survived s debt crisis of this nature. Rome collapsed on the same basis – unfunded pensions.
The fact are the facts. Only a fool will buy this nonsense that the NSA is all about terrorists. This is all about money. Congress cannot see what it is doing to destroy our society and they stack the courts with former prosecutors and have driven their conviction rate up to nearly 99%.
Edward Gibbon, author of the Decline & Fall of the Roman Empire, wrote of the Roman Emperor Commodus a rather good explanation of the view of those in power toward the people or who some have called the “great unwashed.” He wrote that
“distinction of every kind soon became criminal. The possession of wealth stimulated the diligence of the informers; rigid virtue implied a tacit censure of the irregularities of Commodus; important services implied a dangerous superiority of merit; and the friendship of the father always insured the aversion of the son. Suspicion was equivalent to proof; trial to condemnation. The execution of a considerable senator was attended with the death of all who might lament or revenge his fate; and when Commodus had once tasted human blood, he became incapable of pity or remorse”
(Book 1, Chapter 4).
There is no pity or remorse in Washington. The vast majority see no problem and cannot imagine that there will ever come a day a reckoning. Since they see no problem other than we do not pay enough taxes, then there is not even a solution entertained.