The Coming Solution Conference – Live Stream
Governments are always causing the crisis – it is not the private sector. The S&L Crisis unfolded when they went around locking up bankers for losing money was just an example. First Congress created tax incentives with tax loophole to stimulate real estate in a one-size-fits-all manner as always. They created a boom in office buildings. Then the politics changed and the Democrats came in. They closed the loopholes and altered the amortization schedule to get more taxes. What happens? Nobody wanted to buy commercial real estate any more and they created a all sellers market with no bid. Then our politicians claim to be heroes for they save the economy by bailing out the S&Ls throwing the S&L owners into prison. They blame the private sector as if it was their fault when they instructed them to lend on real estate nearly exclusively. DAH? They drive the economy increasing the volatility for they keep changing the taxes rather than reducing spending or reforming government.
In Europe, the EU government created a similar regulatory loophole that allowed banks to apply a zero risk weight to much of their sovereign government debt holdings. If they had sovereign debt, they never had to reflect a loss as long as they never sold the junk. Banks then avoided any capital charge and thus they were not at risk for being declared insolvent even if the sovereign debt was real junk. This is why the European banking system is in such a crisis. If any member refuses to pay, the whole banking system may be at risk if they have to reflect the true credit worthiness of their reserves. This will effect between €2.5 and €3.0 trillion euros just for starters in the banks. Then there are pension funds who are under law must buy sovereign debt because that is “conservative”. The cascade impact within Europe will be devastating. This is what will most likely set in motion the shift from Public to Private confidence that will be essential to creating an asset boom – even in gold.
This failure to mark-to-market scheme is precisely what sent Japan into meltdown. Their banks and corporations were NOT MARKED TO THE MARKET. They never had to show a loss until it was taken. Thus, the Japanese kept holding and did not liquidate. They managed to turn a normal 2 to 3 year correction like 1929-1932 into a 23 year slow death.
This is why lawyers should be prohibited from becoming politicians and there should be no career politicians to begin with. They will always move in the direction of their own self-interest. It is just inevitable. We will look at some of the alternatives at the SOLUTION CONFERENCE in a couple of months.
We are in the middle of an economic and political crisis that there are no risk-free assets and sovereign exposures by banks and pension funds are going to get a very rude awakening. Anyone who claims to be not a doom and gloomer is either a sublime idiot or a fool in denial. This is not a system that can be sustained indefinitely.
How to Run a Government for Dummies
COMMENT: My wife took our 4-year old Alex to the bank today to open a savings account for him with his piggy bank of about 10k baht ($333.00). The teller noticed he was half Thai and asked if he was American, to which she said he was both Thai and American.
The teller: “We won’t open an account for him because we have to report him to the IRS.”
So my wife said “open it as a trust account as a Thai citizen.” The teller: “Can’t do that. It’s evading U.S. regulations.”
End result: Alex can’t open an account here.
Amazing, simply amazing.
REPLY: FATCA is the worst law perhaps in history. It is prejudicial to Americans and it is wiping out the world economy at an incredible speed. It is also forcing Americans to abandon international business and bring all money home even if they have never lived here. Another ex-pat lives in Switzerland for 20 years with her husband. When her parents died she went to the bank to ask them to manage her inheritance. Not only did they refuse to accept money from an American, they closed her local account.
But these morons are only interested in hunting down money. They see only their self-interest and to hell with everything that was fundamental to creating the world economy we live in today post-WWII. The truly amazing problem is these clowns do not know how to run even a local mom & pop store for they have zero management skills. This is like walking into a store or a bank and they rob you. They are constantly extorting customers because they need more money. And then they blame the rich. Just unbelievable.
The world economy is imploding and we cannot hide under the covers. They are not even intelligent enough to comprehend what they are doing. This is getting really really really bad. There is no place to hide from this economic storm cloud. We need desperately to make everyone understand what the problem is for when the crash comes, they will start a man hunt to find the cause but they are incapable of looking in the mirror.
Beware the Turning Point for Bonds – 2015.75
QUESTION: Marty Hi
I attended your conference in Berlin which was a great insight into your works. However it still took me time to really understand what you have been writing as you foretold of what will happen with Gold. Whilst I took note I did not act and have had the best learning experience there is – I lost some money.
In your bulletin ‘German Bond Auction’ you said – …the trade maybe sell the German/buy American. Having not listened probably before I am now! – but can you be kind enough to clear this in my mind – is it that the yield (interest) on 10 year German Bonds will increase and the yield (interest) on USA bonds will go down. If so what would the best ‘instrument’ to make this trade?
Thank you for your great work
From someone who is getting ‘educated’
Kind regards
ClO MBE CEO
ANSWER: Yes. When the crisis begins to manifest, then rates will begin to rise. They will rise more rapidly in Europe for the EU is really shooting itself in the head and foot simultaneously. Their fiscal mismanagement and outrageous treatment of Russia is even courting war. You win the Russia people over with acceptance with free trade that will put the political pressure on their government. Being a hard-ass against Putin assuming the people will overthrow him has been a huge mistake. They now see the West as evil not the guys in the white hat. All they are doing is making the future far more dangerous for when the economy turns down from October, the finger-pointing will start. Our leaders are lawyers – not statesmen. Really – enough is enough with this power-ego-trip.
Those in government are really clueless and cannot see that the people are losing confidence rapidly in government around the world. Their day will soon arrive and when it does, capital will flee from their debt and that is when rates rise. They are even stupidly pushing Greece into default and when that takes place – oh boy will we have a contagion.
Even the proposals of Greece for reform leaves in place the crazy system of borrowing perpetually when there is no intention of ever paying down no less off national debts. Germany is by no means any different from the US and in fact economically it is far worse. Yet people think Germany is strong. That realization will come to a rude awakening after October. Why would grown people who are suppose to be educated ignore what is right in front of their eyes? They are lawyers use to writing laws who expect people to obey or they will imprison them. There is zero comprehension about human nature and they assume whatever is in motion will just continue forever. There is no one ready to step forward and say – hey guys! this ain’t gonna work!
So keep your powder dry. The time is coming. We will do a specialSOLUTION SEMINAR that will be live streamed soon. We will review the Greek proposals and address the real problems and how band-aids will not work any more.
Scientists Caught Again Faking Global Warming Data
An investigation of the raw data recording temperature, has revealed that once again these academics are manipulating the data to keep billions of dollars flowing into their hands. No matter how many times they are caught, government will not change course because they want to believe in global warming to justify higher taxes. Al Gore even went the Davos to pitch once again for higher taxes to stop global warming he declares is the number one crisis in the world. He too, never heard of cycles.
An audit of their data shows they are adjusting the numbers to convert declining temperatures into rising temperatures using averaging. These people belong seriously in prison for harming the lives of everyone so deliberately and dishonestly. No one will address the evidence of solar cycles discovered from ice core samples. These manipulating academics are out to ruin society by constantly putting forth altered data for the analysis. The original data from which they derive their fake numbers has been seriously altered which has been exposed by simple audits. Far from any rise in temperatures to support global warming, the fact remains that there is more ice now than before and temperatures unadjusted for have declined over the past 65 years by a full degree.
I have mentioned before I attended the National press Conference dinner in Washington where Bill Clinton spoke. I went with my friend Dick Fox who was Chairman of Temple University to which I was an adviser. So whoever made up the seating arrangement stuck the two of us with all the environmental group heads. Dick engaged them and they assumed they were in friendly territory. Dick got them to admit that the REAL agenda was to stop population growth using environmental laws and scare-tactics. Dick finally asked – Whose grandchild are you trying to prevent from being born? Yours or mine?
I just have no time for those who use laws against the people for personal gain. This crowd claims this is “climate change” as if there are no cycles whatsoever. How did the earth warm up after Ice Ages? This is really too much. It is like looking at the Dow for 3 months and assuming it always goes simply higher. All of this nonsense is to stop population growth. That is their ultimate goal. They just won’t admit the truth publicly.
Total World Debt Exceeded $223 Trillion
And people think the dollar is in trouble with US debt at $18 trillion?
Hello Big Bang!
Greece – Is there a Solution?
The outstanding national debt of Greece according to EuroStat was almost 320 billion euros at the end of 2013. The question is how can this crisis be resolved? Merkel is tearing Europe apart and her ideas of austerity are in conflict with the very concept that governments borrow perpetually expanding their debt and never repay. Where is this austerity? You are all printing money that just pays interest strip-mining the economy for bondholders. Someone with common sense needs to step up here or Europe is going to be gone. How can you insist Greece pays back when nobody else does? This is insane and will only lead to oppression, conflict, and war.
Everyone runs around and thinks debt to GDP is the way to measure a country. The problem with this brain-dead statistic, it can be way off the mark for it fails to indicate the trend at hand. If the economy is growing faster than government can spend, then the ratio will decline. However, if the economy declines, then the ratio will rise EVEN if no new debt was added. You will see that the rise in the Debt to GDP began to rise sharply in 2010. That was due in part to the economic decline – not random spending by the government. All nations will experience this trend as they raise taxes, hunt money, and kill their economies. GDP will decline as debts rise. This fails to reflect the true trend in motion for it is simply relative to two indicators constantly in flux.
What Merkel is insisting in Greece pays its debts while the European economy is declining. This will only send Greece deeper into a depression and if the new government does NOT default or suspend its debt, they will be thrown out on their ass.
There is ZERO chance of a solution being reached here. It looks like we will move up our intention to provide a SOLUTION SEMINAR. We will make arrangements for this will be a live video stream worldwide. Those in the Princeton area who want to attend we will let you know when and where. Hopefully before the end of March,