Understanding a New World Order in Economics Is Possible
I have been doing a lot of interviews in Germany from TV and radio to newspapers and magazines. It is clear that they are starting to get the message that this is not about just opinion. Every economist has recognized that there is a business cycle. The approach has been starkly different from medicine. Instead of trying to decipher the DNA code to understand how life functions, in the social science of economics it has been about MANIPULATION ever since Karl Marx.
Marx set out with the approach that there is indeed a business cycle, but he saw the early transition from an agricultural life to industrial revolution as evil and capitalists forming factories were then exploiting labor for they profited by using the labor that he determined was the real wealth. Marx assumed this could be eradicated by simply taking all personal ownership and handing it to government. What he overlooked was that those in government were not exempt from the same human nature that drives greed and power trends. Indeed, it proved far worse for government possessed the guns and tanks to force their demands upon the people where no factory owner could ever have harmed society in such a manner.
Then even John Maynard Keynes still followed the assumption of Marx that government possessed the capacity to MANIPULATEthe business cycle. Keynes did not advocate taking everyone’s possessions and freedom to be what you wanted to be in life where in communism the needs of the state came first. Nevertheless, Keynes advocated what became hailed as the age of New Economics where recessions and depressions would be forever smoothed out and eliminated under the stewardship of an idealistic benevolent government.
Two former Chairman of the Federal Reserve conceded that the Business Cycle has won everything time. The entire approach in economics is sadly wrong. We look at the existence of the Business Cycle like DNA and say we do not like the way it operates so lets change the system. Medicine is advancing because we FIRST discover the way DNA functions. In economics, we need to at last discover that there is a Business Cycle and try to live with it.
Unfortunately, those in government want to exercise power they think they have. All we hear is “vote for me for change” as if they can actually alter the Business Cycle and eliminate recessions and unemployment. But the more they try to force the cycle to obey their commands as we now see with a tax on savings (Negative Interest Rates), the worse the swings within the Business Cycle will be.
The next turning point in the Economic Confidence Model should not produce a major event to the day this time because it is not focused in a single market as we have experienced to date. This time it is the concentration of capital in government that is the bubble. The smart money is starting to move out of banks and into other areas from stocks to real estate.
The 1985.65 low in the ECM which began this Private Wave was actually August 25, 1985. This was indeed when it was decided to get together the following month where the formation of G5 and the Plaza Accord took place. This was the beginning of deliberately trying to force the economy to do as they desired. The G5 was all about manipulating the dollar low to reduce the trade deficit. The actual announcement took place on September 22, 1985 (1985.72). This is the type of turning point we see for 2015.75 – nothing precise took place on that day, but a noticeable shift in trend. It may have been when the decision was made behind the curtain to manipulate the world economy.
Of course we then had the 1987 Crash come 2.15 years (quarter cycle) later precisely to the day for this was a reaction of capital in the private sector. This crash was set in motion by the G5 and their stupid attempt to manipulate the dollar lower by 40% to help trade. This above all demonstrated that lawyers should never be allowed anywhere near economic decisions. The G5 set off a currency panic where Japanese sold US assets and took their money home. That set in motion the bubble top in Japan for the peak in the ECM first wave 1989.95 as capital from around the world now noticed the rise in the yen and Japanese assets.
Once Japan peaked, capital then looked around and asked – who is next? When Greece hit in 2010 traders looked around and also asked who is next? This is how capital moves. The capital ran into South East Asia and it then peaked on the next turning point in 1994.25.
We can see international capital flows for when SE Asia peaks, we find the precise day of the low in the US share market on April 1st that year in 1994. The capital concentration was moving into private assets so we saw that confirmed to the day just as the 1987 Crash bottomed precisely to the day October 19th.
The next target was 1998.55, or July 20th, 1998. Again precisely to that very day the US share market peaked. That marked the high of the cycle, but what unfolded thereafter was illustrating how everything is connected.
At our World Economic Conference held in London that year, a journalist from the London Financial Times was there. We gave the forecast that Russia would collapse and that made the front page story of the second section.
The events set in motion following the 1998.55 turning point were quite astonishing. Indeed the concentration of capital in Russia had come to a head. The contagion spread rapidly because when people could not get out of Russian bonds, they sold whatever else they had to raise money. The contagion became massive resulting in the Federal Reserve having to bailout the banks by pretending to bailout Long-Term Capital Management hedge fund set up by John Meriwether who was the supervisor in the Salomon Brothers manipulation of the US Treasury auctions back in 1991.
What came after the 1998.55 turning point was really fascinating. It was at this point that we seem to begin to see a shift in intensity toward government power. We can see that the Pi frequency from the July 20th, 1998 turning point was precisely the WTC 911 attack that shifted the power clearly into the hands of government. Ever since, terrorism has been used as the excuse to track money and is the drive behind eliminating paper money.
There was something more hidden behind the mask. Gold reached its 19 year low on August 25th, 1999. This was precisely 8.6 days after the ECM target of August 16th, 1999. On our 224 Year Cycle of Political Change that too was due at this time. The United States hit this target in 1999 on the 224 year cycle from 1775. We get the low in gold, which is the hedge against government (not inflation) and we get the 911 game changer in power following this target.
The 2002.85 turning point was not precise to the day in the Dow. It was precisely on the 19 frequency cycle. This marked the first high from the low on October 10th.
The 2007.15 high came precisely to the day for the high in the Shiller Real Estate Index for that was where the capital concentration existed. The 2009 low came on the half-cycle 2.15 years later and the 2011.45 turning point saw the formation of the high in gold and the breakout in the stock market.
Precisely to the day the Greek Crisis began April 16th, 2010. This was Pi from the 2007.15 turning point exactly as the 911 Attack on the World Trade Center in 2001. How is it possible that such events take place to the very day? This is the most fascinating discovery I have ever made, yet it is illogical on the surface, and mind stimulating demonstrating there is something going on that is much more profound that warrants our investigation.
What stands out has been the regularity of the Business Cycle even when it is not precisely to the day. The mere fact that this has worked out at times to the very day in the economy or market that reflects the concentration of capital, demonstrates that there is hidden order behind this mask of chaos. For this reason alone, the entire field is certainly worth exploring as we do other sciences. We have to stop the idea of manipulation and reflect upon understanding how this all works. That is the ONLY way to advance in this game we call life.
A Cure for Cancer?
A new antibody injection could “wipe out advanced cancer” by rooting out and obliterating tumors, according to scientists at Stanford University School of Medicine. We seem to be in a phase where once we understood the DNA makeup of life, we are off and running being able to change the world. Once we understand the code behind everything, it becomes much easier to figure out how to deal with the world around us. The next step is to advance social science – economic, for that has been responsible for killing far more people in battles over theories than any disease.
Miracle Advancements in Science: Can Aging Be Reversed?
Grey Hair: Scientists Say They’re Close to a Cure
There have been amazing discoveries in the area of health. The cause of an accelerated aging disease, known as Werner syndrome, which causes patients to show early signs of aging in very early adulthood, has finally been revealed. These patients are actually deficient in a gene responsible for copying DNA. Aging takes place as cells are replaced, but the DNA loses a bit in the copying process, similar to making a photocopy of a photocopy until it becomes unrecognizable.
The key to stopping the aging process will be to repair any mistakes in the replication process. It has been the telomeres, which are the fragments of DNA at the ends of chromosomes, that define the life cycle of the cell. TIME Magazine reported the discovery, and researchers are now saying it may be possible to slow and even reverse aging by keeping DNA more stably packed together in our cells.
Scientists are also close to discovering a remedy for grey hair. My grandmother never got grey hair. Now my 96-year-old mother suddenly had a patch of hair turn jet black from grey. This shows that the process can even be reversed.
Then there was the announcement that U.S. scientists have managed to transform ordinary skin cells into specific types of neurons. This could lead to artificial brain cells. There is also a new treatment method available, which makes it possible to repair a damaged spinal cord. The first patient who underwent this procedure is already back to work, thanks to novel therapy. He previously suffered from paralysis for two years after a knife attack.
So while doom and gloom hits the financial markets, there are significant advancements in areas of medicine. Now if we could only find the cure for corrupt governments and human complacency that fosters corruption until it goes too far and ends in revolution.
The Debt Crisis in Europe that Can’t Wait
There is little doubt now that so many people are calling for a debt crisis in European sovereign debt whatever was once strange when we warning this would arrive by 2015 before the 2016 Presidential elections seems to be old-hat right now. The key is this has been the forecast of our computer, not the clairvoyant visions of just me. Opinion is not consistent so the only way to move forward is to reply upon quantitative analysis without human interpretation.
The IMF has at last come out and stated the obvious that the taxpayers of the Eurozone area must finally accept losses with respect to Greece. European Taxpayers will eat the ECB loans which are the largest creditor of Greece. For the next installment of Greece expects 7.2 billion euros, half of it to pay taxpayers from the euro zone, the other half comes from the IMF.
We are plagued by lawyers who think they can simply write a law and dictate the outcome. We need people who are qualified to run government and make these decisions. This crisis in the Eurozone is a structural defect from birth. The debts should have been consolidated. Southern Europe joined the Euro and their debts were left intact but redenominated to Euro. That meant when the Euro rose from 80 cents to $1.60, the bondholder profited hugely. The countries could not pay just as someone who mortgaged their home in Swiss francs to save interest lost 30% on the currency shock. The Euro never stood a chance because it was design to get votes, not to function economically.
The computer has been targeting May all year. We see a move into July and then a trend into October. Volatility should start to rise come July into September.
The key support in the Bunds lies at 15620. A weekly close below that level willl be a serious break. However, holding that level warns that the reversal in trend is not yet ready for prime time.
