Global Market Watch – Pi Day – March 14th, 2014
Gold & The Land of Confusion
Gold rallied and provided a minor weekly buy signal but has formidable resistance at the 1425 level while the gold promoters tout inflation, the Fed, war, and more hyperinflation. Their counterpart is of course CNBC in the stock market who will claim there really was no sell off only a buying opportunity as Bloomberg TV will take the contrarian view to whatever CNBC just said. Then there will be the traditional litany the various news agencies attributing things to the tensions in Ukraine and the Crimean peninsula at the WSJ, CNN to the missing Malaysian flight 370, Fox Business News most likely to Obamacare and Fox News to Gay Marriage, Yahoo Finance to just normal Russians creating chaos, Forbes will attribute it to taxes being too high and the Huffington Post will counter with taxes are too low and the pause in global warming.
So after all the fundamental explanations, there may have been just possibly more sellers than buyers as profit-taking infected US traders, Europeans fearing currency losses with the rising euro, and Russians running for the hills fearing US will freeze their money to put pressure on Putin. If it weren’t for all the confusion, life would get boring and too predictable. Bottom line – capital is contracting globally as it attempts to figure out which direction is up and for what. Nobody touts the BRICS anymore and they have been shocked to discover that China has not been in a bull market after all.
So somewhere between hyperinflation and only gold will survive to the pause in global warming and all stocks should be taxed so Obama can help Al Gore;s retirement fund, the trend keeps moving along.US Relinquishing Control over Internet Names to Appease NSA Critics
The backlash from the NSA has led U.S. officials to symbolically announce plans to relinquish federal government control over the administration of the Internet domain names, a move that pleased international critics. However, this has alarmed many business leaders and others who rely on the smooth functioning of the Worldwide Web.
Clearly, the pressure to let go of the this final vestige of U.S. authority over the system of Web addresses and domain names that keep the Web organized is in response to the National Security Agency surveillance. Of course, it will relinquish only that control, but not stop the NSA surveillance.
The change would end the long-running contract between the Commerce Department and the Internet Corporation for Assigned Names and Numbers (ICANN), which is a California-based nonprofit group. That contract is set to expire next year but could be extended if the transition plan is not complete.
In a statement, the Senate Commerce Committee Chairman John D. Rockefeller IV (D-WVa.) called the move “consistent with other efforts the U.S. and our allies are making to promote a free and open Internet, and to preserve and advance the current multi-stakeholder model of global Internet governance.”
Is there a Global Bank Run?
The side-effect of the Obama-Putin tiff is they have set off a quiet panic around the world. Some banks even in the USA are limiting wire transfers to $2,000 and they must clear before you can send another to the same party. Russia’s ‘My Bank’ has suspended cash withdrawals temporarily. Russia itself is selling US Treasuries it held as reserves. People in general do not know which way to turn right now.
It clearly seems that there may be a growing trend to grab cash out of banks in general given the uncertainty arising from economic and geopolitical concerns.
Gold Closing today Above 1376 Bullish
I have said countless times that gold is NEVER a hedge against inflation or hyperinflation. I can show how even silver declined during the Roaring ’20s while inflation soared. This whole concept of gold and inflation is just absurd for even the Dow has outperformed gold since 1980 by nearly 17 times. As for hyperinflation, that is at a minimum 400% per month, not 25% annually. The increase in the monetization of the Fed is a drop in the ocean compared to the global economy.
Gold is the hedge against GOVERNMENT, and it typically rises in time of war when it has been a free market because it is aNEUTRAL asset in a sea of currency confusion. When gold was used for money in the very first coinage, it was debased from nearly 11 grams to about 8 due to war.
The Russians are scrambling to get euros simply because they do not want to be seen supporting the dollar when they do not want the ruble either. Yet, the euro is by no means a riskless trade either. So where do you put your money in such periods of chaos and uncertainty?
This is when gold performs best – not during the nonsense the gold promoters have been selling for years. It is vital to understandWHAT really drives gold for if you do not, then after losing your shirt since 2011, you are not likely to listen to the same rhetoric a second time.
So watch gold today. If it closes above 1376 on a nearest futures basis, then we should see some further upside. Keep in mind that the formidable resistance stands at 1390-1400, 1425 and the 1450 area.
We will be providing a special report on Gold after the Conference
Pro-Russian Ukrainian Joke of the Day
Germany to Throw in Prison People with Swiss Accounts
Uli Hoeness is the president of one of Germany’s most famous football clubs who has been put on trial and sentenced to 3.5 years in prison for tax evasion having accounts in Switzerland. Hoeness, 62, was charged with just €3.5 million ($4.87 million) but admitted to evading €28.4 million ($39.6 million) in taxes on income earned in secret Swiss bank accounts. He intends to appeal for it clearly never pays to tell the truth to governments who only know how to lie.
It is also ironic that the Swiss secret accounts were created because Hitler made it illegal for a German citizen to have an account outside of Germany. The Jewish were getting their money out of Germany, but of course that is overlooked. Merkel grew up in the East so she may not see anything contradictory here.
This illustrates the entire problem with taxes. There is never enough for the politicians who are someone if you gave €10 to go to the store to buy something for €2, surely they would never return with the change. When it comes to money, you can’t get their fingers out of your pockets. What is their’s is their’s and what is your’s is their’s whenever they need it.
Taxes are destroying the economy. There is no longer any need for taxes when money is no longer tangible anyway – but simply the total productivity of the nation. Adam Smith’s invisible hand is spot on even today. I do not care how much someone has, it is HUMAN to try to retain what you have earned. National Taxes are a barbaric relic from the past. The only taxes that are even reasonable are local when that government does not create the money.
These people are destroying the world economy and imprisoning everyone they can get their hands on will be accomplishing nothing to reduce the over 60% unemployment of the youth. We are dealing with antiquated ideas of economics and how to manage the government. We have embraced everything modern to spy on people except the way we manage government.
So what will you do when you imprison everyone who creates jobs for those who prefer less risk? What then? Society cannot wait for this older generation to die for they have surely doomed society to war and taxes.(see Solution).
The Ukrainian Joke of the Day
Russian Capital Flows
We have been investigating the Russian capital flows in more detail. We see two trends emerging that is reflecting the war tensions. Foreign capital that invested in Russia is pouring out, but at the same time, the Russian Oligarchs are pulling back money in western banks. They do not yet seem to be investing in Russian banks for they fear the ruble. They have been buying the euro and taking cash home rather than dollars. This is giving some lift to the euro. Clearly, capital is confused on both sides of the conflict.
Nonetheless, prior to every war, capital flows give advance warning more often than not. It appears those who know, move money appropriately. This time, the Russian Oligarchs are grabbing the euro in cash for that can be obtained in larger denominations than US dollars, plus they have no idea whose currency will survive given it could be cancelled as well or counterfeited as part of the economic war (another reason to cancel the currency and move totally electronic using war as the excuse). The Oligarchs are between a rock and a very hard place. The ruble looks risky, but then the USA is the enemy.
Here is a German counterfeit British 5 pound note from World War II. It was very, very good. So beware. War at this time would have the benefit of eliminating currency altogether to prevent counterfeiting, but then again that has been the goal to get every penny of tax. It is also suggested that it will eliminate crime.
Keep in mind eliminating currency will also eliminate bank runs. It is a win-win for government and war may be the excuse they need to eliminate all cash and that would help Europe right now who is staring straight in the eye of perhaps the worse banking collapse in history of banking.
The propaganda war still rages. There is all sorts of disinformation hitting the internet under the pretense of being part of theAnonymous movement, but this is just counter-intelligence right now. There are a lot of fake emails and claims of reports and phone calls all designed to move the public opinion in one direction or the other,
Then there is the missing Malaysian plane. Rumors now fear that it was taken someplace to be used for a terrorist attack later in China to get the masses there outraged. This is purely speculation at this point, but we are trying to test the veracity of this theory. Of course it could just be aliens who escaped from Area 51 or the White House – hard to tell the difference sometimes.
Global Market Watch – March 13th, 2014
The Fourth Branch – Deeper than the DEEP STATE
While many have been writing about the DEEP STATE as an unholy alliance between government and the corporate world, the deeper problem is the FOURTH BRANCH (the real shadow government) that shares nothing with the corporations and Snowden’s documents show they operate behind the scenes anddo not even inform the elected politicians they also do not trust. They exist and will always exist at the core of everything and they are beyond the law for most of what they do nobody has a clue and there is no oversight. When there is some pretend oversight, they spy on that as well as Feinstein just learned. They see themselves as the real government protecting themselves from the madmen that run around in their wildest dreams.
Snowden’s information has been all about the privacy. Some of ourBRAIN-DEAD politicians still see him as a traitor saying he should have gone to them not to China or Russia. To make this perfectly clear, the very documents he had demonstrated they are also the targets and cannot be trusted. He did not run to China or Russia, but to the British newspaper the Guardian for no American would dare publish it. He fled to Hong Kong because Congress wouldNOT protect him. He fled to Russia when they called for his head as a traitor. Sorry, but the people are sovereign and disclosing what Congress and the FOURTH BRANCH does can NEVER be treason when that person is telling their only sovereign – the people.
Obama – Feinstein – NSA – Destroying America Better than Russia Could Ever Do
This is why we cannot have lawyers who have avoided working for a real living in government. They see only the government’s side and do not comprehend what they have done to the American economy or the image. I saw a local computer store where they service people and companies who had a sign out front – we build computers with Windows 7. I stopped in and inquired. They said so many people do not want Windows 8 the are building computers locally to your specification. I then found a company on-line doing the same thing and they too were offering Windows 7.
These two people have highhandedly done far more damage than two bulls walking through a Venetian Glass store. They have not merely resurrected the cold war with Russia and China turning it red-hot, but they have inflicted deep wounds to the American technology industry that nobody could have done better. I myself will never buy Windows 8 computers – it’s a joke.
Now the Chief Executive Mark Zuckerberg of Facebook has come out and screamed at the U.S. government’s electronic surveillance practices on Thursday as he watches his business turning down globally. Zuckerberg said he had personally called President Obama to voice his outrage at the NSA spying activity that everyone has come to see as standard. He said on his own Facebook Page:
“When our engineers work tirelessly to improve security, we imagine we’re protecting you against criminals, not our own government.”
Of course there ought to be a law against holding office without qualifications. But then again, these people are corrupt, not that stupid to every pass such a law. So at the end of the day – that is what produces Maidan – not CIA plots.