Gold Turning Down
I have stated NUMEROUS times that gold is neither the hedge against inflation nor does it rise all alone during hyperinflation when everything rises. The difference between gold and other investments such as real estate and stocks lies in its MOVABILITY. During hyperinflation, EVERYTHING rises so long as the nation survives aside from the government. If the nation is being invaded or you have the confiscation of all wealth as was the case during the Russian Revolution, then tangible assets collapse and only gold survives for it can be easily transported from one country to the next. Our ONLYproblem or wildcard right now is that the transportation of gold becomes impossible thanks to metal detectors. This introduces a whole to variable to gold being the historicalMOVABLE asset class.
The Gold Promoters as always got all lathered-up proclaiming the bull market is here. They never bother looking at the world around them and cannot get through their heads that there is a huge difference between analysis and self-promoting. It gets to be like politics. The far left like the EdShow will never say anything good about a Republican and the same is true on the extreme right. Between the two is reality.
We closed Friday below the Weekly Bearish at 1309 and now we are testing the next Weekly bearish at 1280. After that we show 1240 and thereafter new lows once again. The tree has to be shaken. Just as in the stock market, when we forecast that it was turning back in 2011 and NEW HIGHS would be seen, that seemed like a novel concept that Barron’s mentioned in passing. Nevertheless, all the way up the talking heads were talking it down. That is why it kept going because the MAJORITY must ALWAYS be wrong. That is the fuel that makes the markets move.
We see a low ideally forming temporarily as early as tomorrow. If gold bounces into a marginal high next week on the 9th, then lookout below thereafter. The 2014 Metals Report will be out shortly with the long-term forecasts.
Our World Leaders In the Light of Day
Our World Leaders as they really are that the Press Filters Out
Депутаты = Deputies
Global Market Watch for March 31st, 2014
French dealt an Unprecedented Defeat to Hollande’s Socialist Party
French President Francois Hollande and his Socialist Party were handed an unprecedented defeat in the municipal elections. The voter outrage in France is significant, yet not enough yet to turn the IMF from their equally insane policies. Hollande went on TV and said in his 8 minute speech:
”In voting or in abstaining, you expressed your unhappiness and discontent, and I’ve heard you,” … “Not enough change, too much unemployment, not enough social justice, too many taxes, not enough efficiency.”
It is simply incomprehensible how his Socialist Party can reform anything when they firmly belief in taking from anyone who has money as their national right.
North Korea Fires Artillery Shells in the South As they Return Fire
North Korea fired more than 100 artillery rounds into South Korean waters as part of a military drill on Monday, March 31st. The South returned the fire. The North is more-likely-than-not going to engage the South after 2015.75. When the economy turns down, the saber-rattling may turn into actual confrontation. The North will need its external enemy to keep the people directed away from government. The South will be weakened by the economic decline of the USA. Our models on South Korea targeted 2012 for the rise in tensions to begin with the North and so far that is on schedule. Extreme caution is advised after September 2014 for now the Cycle of War will also turn upward and the tensions will only increase sharply.
The history of South Korea formally began with its establishment on August 15th, 1948.
In the aftermath of the Japanese occupation of Korea following Japan’s defeat in 1945, Korea was divided at the 38th parallel in accordance with a United Nations arrangement. The North was to be administered by the Soviet Union and the South fell to the United States. The Cold War ensured that the Soviets and Americans were unable to agree on anything and this led in 1948 to the establishment of two separate governments, with each claiming to be the legitimate government of all of Korea. Therein lies the conflict.
In the aftermath of the Japanese occupation of Korea following Japan’s defeat in 1945, Korea was divided at the 38th parallel in accordance with a United Nations arrangement. The North was to be administered by the Soviet Union and the South fell to the United States. The Cold War ensured that the Soviets and Americans were unable to agree on anything and this led in 1948 to the establishment of two separate governments, with each claiming to be the legitimate government of all of Korea. Therein lies the conflict.
Historically, the Sino-Japanese War (1894–1895) ended with Korea passing to the influence of Japan rather than China. In 1897, it became the Korean Empire. The imperial government aimed to become a strong and independent nation by implementing domestic reforms, strengthening military forces, developing commerce and industry, and surveying land ownership. Clashes with the government proclaiming an absolute monarchy and power began to appear. This is when Russian influence became very strong in the Korean Empire until the Russo-Japanese War (1904–1905) when Russia was defeated by Japan.
On the 17th of November 1905, Korea effectively became a protected state of Japan ignoring the Korean Emperor’s approval. In 1907, the Emperor Gojong was forced to abdicate after Japan learned that he sent secret envoys to the Second Hague Conventions to protest against the protectorate treaty. In 1909, there was a famous independence activist An Jung-geun who assassinated Itō Hirobumi, who was the Japanese Resident-General of Korea. This prompted the Japanese to ban all political organisations and proceed with plans for the total annexation of Korea.
In 1910 Japan effectively annexed Korea by the Japan–Korea Annexation Treaty that resulted in Japanese rule (1910-1945). Korea was controlled by Japan under a Governor-General of Korea until Japan’s unconditional surrender to the Allied Forces on the 15th of August 1945 giving birth to the dividing of Korea into North administered by Russia and the South the United States.
For 1888, Korea was effectively the Empire in Isolation. Therefore, little can be determined looking directly at Korea. However, in 1889, the Meiji Constitution of Japan was adopted and the Korean rival was itself beginning to take on a modern mantle.
The turning point of 1919 marked the beginning of the Korean Independence Movement known as the March 1st Movement, which became a national holiday in 1949. This was at first just 33 activists that demanded independence. This was the catalyst for the momentum for the Korean Independence Movement. Governor-General Hasegawa Yoshimichi accepted responsibility for the loss of control in Korea as the civil uprising spread. However, most of the repressive measures that lead to the civil uprising were carried out by his predecessors. He was replaced by Saito Makoto.
The Japanese responded with suppression and began to hunt down activists. The military police were replaced by a civilian force, and limited press freedom was permitted under what was termed the ‘cultural policy’. The Korean activist leaders fled to Manchuria, Shanghai and other parts of China where they continued their activities. The Movement inspired the establishment of the Provisional Government of the Republic of Korea in Shanghai in April 1919. It was this movement that became a contagion and also influenced nonviolent resistance in India and many other countries.
The Korean Liberation Army was thereafter formed and allowed to operate in China by the Nationalist Government of China. The movement also saw a rise in mobilization of Catholic and Protestant activists and inspired activism in the United States, China as well as Russia.
On June 25, 1950, North Korean forces invaded South Korea initiating the Korean War. The People’s Republic of China’s entered on behalf of North Korea in late 1950, and this turned the war into a stalemate. Armistice negotiations began in July 1951, but was not finally concluded until July 27, 1953. There has been a unique cycle of 31.4 following Pi that appeared in the establishment of South Korea.
In 1980 moving into the next major turning point in 1981 that coincided with the turn in the Economic Confidence Model, we find the Gwangju Uprising in South Korea that is also known as Gwangju Democratization Movement and the Gwangju Massacre. This refers to a popular uprising in the city of Gwangju that led to the massacre of at least 165 people. The citizens rose up against Chun Doo-hwan before he took office and his eventual dictatorship. They sought to take control of the city. The citizens took up arms by robbing police stations and military depots since they were unarmed. It was the South Korean army that crushed the movement brutally. Nevertheless, while the government called them communists, they were seeking democratic reforms.
Kim Jong-un (b 1983) became the Supreme Leader upon his father’s death in 2011 Kim Jong-iI (1941–2011) who was the son of Kim Il-sung (1912–1994). While in 2012, the World Expo took place in Yeosu, South Korea, Kim Jong-un began flexing his political muscles. It was on March 16, 2012, that the New York Times reported the beginning of the new North Korean leader Kim Jong-un assertiveness reporting “North Korea Says It Will Launch Satellite Into Orbit”. On April 13, a North Korean Earth observation satellite, exploded shortly after launch. The United States and other countries had called the impending launch a violation of United Nations Security Council demands. The launch was planned to mark the centenary of the birth of Kim Il-sung, the founder of the republic. On February 12th, 2013, North Korea conducted its third underground nuclear test following 2006 and 2009, which prompted widespread condemnation and tightened economic sanctions from the international community.
Is Obama just Outclassed by Putin?
It seems that Obama is living in a world of prejudice and cannot understand that his own actions are inconsistent with his arguments making his opponent stronger not weaker. Obama will continue to escalate for he is just outclassed by Putin. Obama is becoming the evil empire and Putin the great defender. Obama is the Russian people toward Putin by his own stupidity.
This is like the story of the teacher at university confronting Gandhi who in this case is smarter than the teacher (Obama).
When Gandhi was studying law at the University College of London, there was a professor, whose last name was Peters, who felt animosity for Gandhi, and because Gandhi never lowered his head towards him, their “arguments” were very common.
One day, Mr. Peters was having lunch at the dining room of the University and Gandhi came along with his tray and sat next to the professor. The professor, in his arrogance, said, “Mr Gandhi: you do not understand… a pig and a bird do not sit together to eat “, to which Gandhi replies, “You do not worry professor, I’ll fly away “, and he went and sat at another table.
Mr. Peters, green of rage, decides to take revenge on the next test, but Gandhi responds brilliantly to all questions. Then, Mr. Peters asked him the following question, “Mr Gandhi, if you are walking down the street and find a package, and within it there is a bag of wisdom and another bag with a lot of money; which one will you take?”
Without hesitating, Gandhi responded, “the one with the money, of course”.
Mr. Peters, smiling, said, “I, in your place, would have taken the wisdom,
don’t you think?”
“Each one take what one doesn’t have”, responded Gandhi indifferently.
Mr. Peters, already hysteric, writes on the exam sheet the word “idiot” and gives it to Gandhi. Gandhi takes the exam sheet and sits down. A few minutes later, Gandhi goes to the professor and says, “Mr. Peters, you signed the sheet, but you did not give me the grade.”
One day, Mr. Peters was having lunch at the dining room of the University and Gandhi came along with his tray and sat next to the professor. The professor, in his arrogance, said, “Mr Gandhi: you do not understand… a pig and a bird do not sit together to eat “, to which Gandhi replies, “You do not worry professor, I’ll fly away “, and he went and sat at another table.
Mr. Peters, green of rage, decides to take revenge on the next test, but Gandhi responds brilliantly to all questions. Then, Mr. Peters asked him the following question, “Mr Gandhi, if you are walking down the street and find a package, and within it there is a bag of wisdom and another bag with a lot of money; which one will you take?”
Without hesitating, Gandhi responded, “the one with the money, of course”.
Mr. Peters, smiling, said, “I, in your place, would have taken the wisdom,
don’t you think?”
“Each one take what one doesn’t have”, responded Gandhi indifferently.
Mr. Peters, already hysteric, writes on the exam sheet the word “idiot” and gives it to Gandhi. Gandhi takes the exam sheet and sits down. A few minutes later, Gandhi goes to the professor and says, “Mr. Peters, you signed the sheet, but you did not give me the grade.”
Markets actually move on ANTICIPATION not based on fact or reason. In the 1987 Crash, fund managers were asked why they sold? They responded it was the lack of news. They called their brokers and asked why was the stock market crashing. The reply was straight forward – nobody knew. All sorts of rumors emerged to explain the drastic move without any fundamental domestic event. They sold because they could notANTICIPATE what would happen the next day.
It is NEVER the “news” that makes the trend, but the confidence and anticipation of the trend. To understand an opponent, it matters what he believes and nothing else. If someone confronts you with a gun and demands all your money, do you anticipate whether or not the gun is loaded assuming it looks real? You assume it is loaded and comply.
The persecution of the Christians by the Romans failed because they anticipated a reward upon death. If you took a terrorists and said you would kill him and bury him in a pig skin so he would be deprived of his reward, things would change. It matters what he believe – not what you believe.
Obama is the idiot here for he fails to comprehend Putin. The more Obama yells and threatens him, the stronger Putin will become domestically. Obama is having the exact opposite effect than the pretend sanctions are supposed to create building Putin into a superstar against America that is being seen as the oppressive evil empire. Obama will ensure the crisis will turn into war beyond words and indeed we have an idiot in charge who cannot see he is outclassed in a battle of words he cannot win precise as Peters confronting Gandhi.
Based upon reliable information, if Obama continues to escalate this crisis, Putin will deal with Iran and circumvent all UN sanctions. In this way, Russia will expand into the Middle East. Obama is blind, death, and cannot speak anything of substance. Obama so just be some divorce lawyer. His tactics are just confrontational without a shred of strategy.
NSA Targeted 122 Heads of State including Merkel of Germany
The latest revelation shows that the NSA was targeting world leaders, A total of 122 leaders were under surveillance. The NSA revelations are extremely damaging for they reveal an agency that has spun totally out of control.