US Guarnteeing Ukrainian Debt?
The idea that the US guarantees foreign debt is nothing new. The proposal for the US to guarantee the debt of Ukraine actually side-steps direct aid. Mr Obama, winner of the Nobel Peace Prize, wants Ukraine to fight Russia and as such they need offensive weapons to accomplish this goal. So the Obama is guaranteeing the Ukrainian debt side-steps the argument that he is providing Ukraine free weapons as aid. Guaranteeing the debt is not the same as giving them aid, but in reality it becomes a US bond that is used for weapons that cannot be done directly.
Solution Conference Links Are Going Out by Email
We have an unbelievable turnout for the live stream. We have had to purchase additional bandwidth for this may be more than even Netflix gets at a single time. Those looking to sign up for the stream please do it now. This will be live but you can also watch it for the next two weeks to take into consideration we have an amazing worldwide audience here.
So please sign up now. Do not wait for the last minute if you expect to watch it live.
Los Angeles Debut This Week
Welcome to Global Warming 2 feet of Snow in Columbia
Sunday 2 feet of snow fell in Bogota, Columbia. The weather is becoming very volatile. In theory, this type of craziness would precede a polarity shift as sunspots appear when the polarity flips on the sun which are cold spots. This would be slightly different from just a decline in the solar energy output of the sun. Looks like we definitely live in interesting times. Between politicians just so corrupt not even trying to hide nonsense any more, the collapse in market liquidity, and Mother Nature having a bad hair day, looks like Bronson better get flights to Mars ready real fast.
Copper
The Rally in Copper is coming on schedule. A weekly close above 290 will suggest a further rally into next week. But the key will be 312 for the closing of the month. If Copper can do that much, then a sustained rally become possible. Otherwise, a retest of support will be more likely for now.
China kicking Obama’s Ass
Obama will go down as perhaps the worst President at least since 1900 if not ever. He has torn apart the entire fabric of world peace and whoever has made any decisions in global strategy seem to be some sort of Megalomaniac. Russia has developed planes to ensure they can directly bomb the USA and Obama is more concerned about golf outing with Tiger Woods.
On the financial front, China is moving strategically to create an alternative to the dollar-based world where it controls the World Bank and IMF. The US government has suffered a setback in its geopolitical financial ambitions on every front with Obama at the helm. Now the UK, Germany, France and Italy all have agreed to participate in the new Chinese Development Bank aIIb. The bank is regarded by Washington as a rival to the World Bank. Australia and South Korea are also likely to join the Chinese.
I have reported before that when I was invited to Beijing by the central bank, the striking difference in meetings there compared with the West was the fact that all the people I met with had real live trader experience. They had all visited the West and worked on dealing desks. That was why I was invited rather than an academic.
China is doing everything right because they are traders. China has been doing a debt swap to reduce the high debt levels at high interest rates in its lower government levels. Local governments will be allowed to swap 1 trillion yuan ($160 billion) of their existing high-interest debts for lower-cost bonds. Such swaps could become a feature of China’s fiscal landscape over the next few years, given that local debts may have reached as much as 30 trillion yuan, or 47% of GDP.
China is way ahead of the game. They have already stated they are using Capital Flow Analysis, which the West still does not grasp. Our Beijing site will be launching in Mandarin within the next few weeks. Our Staff from China will be at the Solution Conference..
IMF Tried to keep Floor on Interest Rates at 0.5%
Tthe IMF said it is introducing a floor of 0.05 percent for the interest rate on Special Drawing Rights (SDRs). The IMF’s move shows how global financial conditions are heading into never-never-land. Just how are these governments going to handle the Great Recession? Will rates go to -10% to achieve stimulus?
What they do not grasp is there are two-sides to every coin plus the edge. All they think is lowering rates will force people to spend and borrow, yet they raise taxes and hunt cash like a serial killer. They are wiping out the elderly and the pension funds who were told to save for their retirements and now the whole socialistic idea is being flushed down the toilet.
Ah – my future for just someone with a brain to step forward in politics. This is not going to end very well.
The War on Cash
I reported that the French now require banks to report to the government financial police anyone depositing or withdrawing €10,000 over one month. The United States is also moving in the same direction. The Justice Department wants banks to report to the police if you withdraw $5,000 in cash. Already it appears that deposits or withdraws of cash of just $3,000 are being reported to the IRS. Stores or business depositing cash are now being charged a fee to deposit cash.
The governments are desperately using terrorism as the excuse to hide their war on cash. They are trying to eliminate money all together to force 120% tax collection. There is no reform contemplated, just raise taxes all the time. There is no end game here that has anything to do with preserving our freedom and way of life.
What is going to become the new underground money? It may be diamonds, stamps, and rare coins. This is getting very crazy.