Gold Completing the September Rally?
Gold’s rally into the target weeks for the ECM appears to be linked to the potential crisis in European banking. This has nothing to do with the dollar, fiat, inflation, or whatever. This this the only reason gold rises – the hedge against real crisis and uncertainty.
Gold may not be sustainable. We really need to see a Weekly closing above 1188 to think that there is some sustainability short-term. We need that signal to reach the technical resistance in the mid 1200 level. We have a crisis in confidence and a crisis in German banking with the ECM on Sept 30th/October 1st will shake the tree of public confidence on a major global level.
Deutsche Bank – The new Lehman Brothers?
This rumor mill has been going on and it doesn’t stop. The crushing blow to Europe will be the failure of Germany’s biggest bank. Yes, Deutsche Bank is quietly being talked about in every circle that it is facing bankruptcy. Since March, the rumors have flown since Deutsche Bank had failed the US regulatory stress test which was followed by the resignation of its head in June. A collapse of the Deutsche Bank is profound and very likely to impact Europe to the point everyone is calling it behind the curtain a new Lehman Moment. Sources tie this with the Fed’s decision not to raise rates fearing they would be seen as the cause of its failure. Germany clearly faces a major shock and if this combines with Volkswagen for the turning point next week, well here we go again.
The potential financial chaos the other side of 2015.75 is just mind-numbing. Since Germany has been regarded as the primary driving force which has held the Euro and Europe together, one can only close your eyes to vision what comes in the aftermath. So pay attention here. These are critical indications within what is the core economy of Europe. We are not talking about Greece here. The structure of the Euro undermined the entire banking system of Europe far more profoundly than in the United States where reserves are only US federal debt not the debt of all member 50 states. This is the major difference between Europe banking and the US banking.
The Dow & the Computer
Video Player
The
Global Market Watch picked the May high and the August 24 low in the
U.S. share market. It is warning that we may have a temporary high in
2015. If we penetrate the August 24 low, then we may indeed fall to the
13000-14000 area leading to a slingshot move back to new highs.
The
interesting aspect will be the correlation models, which we will go
over at the conference. What is lining up this time is really incredible
and forewarns that we may be preparing to see wild times ahead in all
markets.
Assume
nothing is cheap if you want to survive this crazy period. Keep in mind
that a daily closing in the Dow below 16160 will signal further selling
pressure; a close for the week below 16280 will also warn that we could
see this slingshot move.
The
Global Market Watch is an entirely different model altogether from the
Reversals and Cycles. This is our Artificial Intelligence system using
pattern recognition far beyond any human capability that is dependent
upon subjective analysis.
If You Cannot Tell the Truth, Hide the Truth
The motto of the ECB is plain and simple: why reform when we still have some power? Governments will fight until the last drop of blood is spilled; they assume it will be your blood, not theirs. We will see the opposite of transparency unfold along with a rush to eliminate cash. This will force Europeans into electronic money for that is the solution to prevent bank runs. The head economist of the Deutsche Bundesbank warned that the ECB cannot afford to tell the people the truth about banking for it may lead to bank runs.
The banking crisis in Europe is huge because bank reserves are a mixture of sovereign debt from each member state. The only way to prevent this potential banking failure crisis is to withhold the results of bank stress tests from the public. The ECB is most likely going to follow this advice to prevent the public from knowing which banks are in the worst shape. If you do not know whom to trust, human nature will distrust everyone.
It’s Not Your Money
These Marxists want to suppress freedom and cannot see that we are all different and have a God given right to pursue our own dreams. Some people want to produce while others do not. All these people do is drool over what other people have and demand they have been cheated because they are entitled to the same.
What Corbyn cannot understand is that this is no different from robbery. If you walk down the street and a man points a gun at you, demands your watch, all your cash, and justifies it by saying that he has nothing you have everything, then what is the difference between that and writing a law to accomplish the same thing? Where can we go to be free of people who just want to rob whatever we have because they are lazy or incompetent to ever have an original thought? This may be the final end of the British Empire. After all, it is getting close to 443.76 years from Elizabeth I (51.6 * 8.6). A very precarious event that may indeed signal the shift from the West is underway to China.
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