The Euro
The Euro closed the month at 10742 and then there was a huge fight back and forth at 10765 the following day. This is a LONG-TERM signal, not short-term. It is serious for this confirms the broader trend moving forward. However, on the Quarterly level we also elected 10970 and 11983. The first will provide the initial reaction resistance on a closing basis. The latter is the major reactionary resistance followed by the technical resistance at the 12313 level. Support lies at the 10164 level.
Our timing models on the Quarterly level have been showing what we have been warning about. We do not expect to break the 80 cent level right now. That is way too much short-term.This is a long-term view not immediate. What we have to watch closely here is this quarter and the the last quarter this year here in 2015. The big turning points are the 3rd quarter next year 2016 and the 4th quarter 2017. These are followed by Directional Changes. as well.
At this point the daily bullish Reversal stands at the 11035 level so a closing above that would tend to point to the 11350 to 11500 level. The Weekly level show shows the resistance at the 11450-11540 area with a key timing target the week of 04/13. Monthly resistance starts at the 11250 area then the 12300-12600 zone. The Quarterly resistance is really at the 14000 level.
The markets in general are churning, posturing for the change in trend on the horizon. The banks have cut dealing lines and retail participation is still not here yet. After the summer, that is when things will start to get interesting.
Art of War on Steroids
QUESTION: Mr. Armstrong, do you think your proposal will be accepted?
ANSWER: This is the ONLY chance we have. The ONLY way it will be accepted is through pain. I have done extensive interviews on this in Europe, not the States. Why? They already “feel” the pain.
If we can take a step toward reform in Europe, then it will spread like a contagion assuming the press bothers to report the truth. Britain abandoned the Gold Standard (austerity) first and George Warren used that to show Roosevelt he had to do the same. I doubt we will accomplish this in the States before we see change outside first. But in Europe we have a chance. I have done three interviews with leading economic publishers in Europe so far. I have a 6 week tour coming and requests are still coming in from all over the continent.
I would love to see Greece adopt this. It would open the eyes of everyone.
There is NO CHOICE here. If we do not TRY, we will end up with the fall of Rome and a MadMax. You cannot just buy gold and assume that will save you. If you go all the way, food becomes money once again just as rice became money in Japan when the people ignored government and Japan lost the ability to even issue money for 600 years. As far as coinage was concerned, the Japanese trusted Chinese coins not Japanese.
You will NOT be able to survive counting your gold coins in a condo on the beach. Sorry, we are talking about the fabric that binds civilization here is under direct assault from government. All these people selling hyperinflation, just what do you expect at the end of such an event? You can still take your family for a weekend at Disneyland?
This is not hype to sell you something. This is serious shit here and we are dealing with the future. Are we going to try to save something for our posterity, or is this just only aME ME ME world and to hell with everyone else? Step one – understand your enemy. This is the Art of War on steroids.
Peak in Government Corruption 2015.75?
As we move into this peak 2015.75, one aspect that should become more obvious is the total breakdown in the corruption of everything. Senator Robert Menendez of New Jersey was indicted yesterday on bribery charges.He has been charged for a scheme to trade political favors for luxury vacations, golf outings, campaign donations and expensive flights. Look at Hillary and Bill. She takes up the State Department and Bill makes hundreds of millions from foreign countries while her brother gets a deal from the islands. Corruption is absolutely everywhere. There is nothing safe and no lines to cross. Menendez had enemies so he is taken down. But honestly, there is hardly anyone in Washington who has not been there for more than 10 years who is not on the take in some way or another.
We even find companies lining up to join the NSA handing their information over. The NSA says it will do all their security. This is subsidizing the private sector. They are too stupid to realize that any connection with the NSA will cost them international business. The Republicans will be handing more and more power to the NSA for the crazies who support Boehner think there is nothing that should be private. Just amazing.
I am not even sure George Orwell could have figured out the future from here with all this insanity. These people are destroying civilization itself and fragmenting society. That is the very end of times. Once Venice did this and turned its society into a paranoid mass of people who did not trust one-another, the end was swift and final. It looks like we are going flame out. The core economy will move to China and the West will be blaming one-another for the next 100 years. You cannot tear apart the synergy that binds society together for once that is gone, the purpose of civilization no longer exists and tribal warfare returns as separatism. The rise in separatism is driven by the decline in civilization and the economy.
Hillary Commits A Crime & They Defend Her
MSNBC’s Ed Schultz who never saw a Democratic he did not like or a Republican who should not be executed, amazingly admitted in trying to defend Hillary that she is 67 years old and too old to know what she is doing. “There’s a lot of people in her demographic that just don’t want to be overwhelmed by that technology that are going to take the easier, simplest route to do something — I get that.”
You cannot get around the fact that what she did was criminal for when all those emails were subpoenaed by Congress, she failed to produce them or inform Congress she had a secret personal email. That is outright OBSTRUCTION OF JUSTICE and anyone else would go to prison for 5 years. Then when they are discovered, she erases the files. Come on! Why are there three sets of laws – (1) for Democrats, (2) for Republicans, and (3) for the rest of us?
Then her supporter Ed Randel, Former Pennsylvania governor whose wife is a Federal Judge on the Court of Appeals in Philadelphia, argued with a straight face that Edward Snowden hacked the NSA so Hillary was entitled to keep a private server. Hillary’s security would be even less impressive on a computer at her home.
Come on. Rendell is a lawyer and he KNOWS the law. What Hillary did is an absolute criminal act – there is no exception if there is honestly one rule of law for everyone. Can you image what what have happened if Nixon just said sorry, I erased all the tapes. Tough shit!
Then the venomous James Carville blamed the Bush Administration for all the investigations of the Clintons that justified her secrecy. Oh yes, there was Hillary trading commodities and making tons of money in a futures account while she was in meetings that were just a means of money laundering with the wins stuffed in her account and the losses in her lawyer’s account. This was typical kill the messenger. How come she never trades commodities ever since that one wildly successful trade?
All of these excuses are symbolic of the fact that politics is out-of-control. This is indeed the peak in insanity and with this ECM we may see a real turn against these people that just feel they can do whatever they want and then hunt us down to pay their bills.
What About the Unfunded Liabilities?
QUESTION: Hi Martin,
Saw ‘The Forecaster’ in London, only sorry it was not showing for longer as many friends would have liked the opportunity to see it, it was an excellent documentary.
Very much enjoyed watching the ‘Solutions Conference’. How do you see debt for equity operating in the UK alongside the abandonment of the Central Government income tax levy - Where would the cash come from to fund outstanding unfunded pensions which traditionally have been funded from current income tax receipts? Future pensions for those just starting to contribute to a pension could be moved to a new superannuation fund, I am confused as to how the current generations of pensioners + those who have already made the bulk of their contributions could be financed, unless they also could be funded through a debt for equity swap.
I would much appreciate your feedback as to how you see this working.
Many thanks for your fantastic public spirit in educating all those who read your blog and writings, you are a much needed breath of fresh air on the subject of finance and economic cycles! Let us hope many more of those who need to make the right decisions take note of your solutions and make the correct choices when the opportunity arises, even if it takes waiting for the crash and burn to change minds.
Bests regards.
S
ANSWER: First we have to swap the debt and STOP the borrowing. Just monetizing the debt by having the central bank buy it back and then cancel it really accomplishes nothing for it will still leave us with escalating taxes and the debt cycle will continue. This is like just having to take a haircut as a bondholder. The rest is still there. You cannot cancel the debt without wiping out Social Security.
Part of the problem with pensions and the elderly getting screwed is all about government trying to keep interest rates low (1) to help bankers, and (2) to lower their interest rates costs. This is a conflict of interest which will hurt the pensions and the elderly. It pits government’s self-interest against the people.
As for the the unfunded liabilities, some portion will have to be monetized the same way Japan had to deal with the Postal Savings fund they abused. Keep in mind that all pension funds that hold federal levels of debt will then be transformed into real wealth funds. Keep in mind that most public funds like Social Security in the USA would be reversed and then private assets would flip negatives into positives reducing future unfunded liabilities.
You must also keep in mind that we have to take this one step at a time. Eliminate the important aspects of debt and borrowing terminating federal taxes. We have massive problems with the state and municipal levels of government and eliminating federal taxes will be the first step in reforming the state and local levels. We cannot deal with all the problems one time – that is revolution. This is a step by step approach to try to save our future rather than sit by and watch the bonfire of the society.
NYPD Abuse – Police Gone Wild
This officer was Patrick Cherry, who is also a member of the FBI’s top-secret Joint Terrorism Task Forces. These are the people have no respect for citizens which is clear. This is indicative of a major high as we move toward 2015.75. Government just off the chain.