Dow Closing for October 2015
The Dow closed neutral on our indicators for the month-end of October. We have held support below and bumping against resistance. There are only two possible patterns: (1) a slingshot move that penetrates last year’s low and swings to new highs in a blast to the upside, or (2) we simply base and then enter a Phase Transition.
The fascinating aspect is in our Energy Model. We can see that despite the rally in October, the Energy turned negative in a full-blown divergence. This means that the over-bought position of the last few years is being resolved. That opens the door for a Phase Transition.
Now look at the DAX. It bottomed WITH the ECM one day ahead of the turning point. Many individual stocks bottomed precisely with the ECM. The DAX did penetrate the previous year’s low intraday. The closing now for year-end will be absolutely critical for the survival of Europe as a whole.
Money Is Also Perishable – Debasement & Devaluation Easier Than Taxing or Defaulting
GH
ANSWER: Honestly, most people are oblivious to the fact that governments always default in modern times. Jean Baptiste Say took the position that a rational businessman will never hoard money because of inflation and he will promptly spend any money he gets “for the value of money is also perishable.” (“A Treatise on Political Economy”, Book I Chapter XV, 1803 id/138–9). Before modern times, money was ALWAYS debased or devalued as a means of paying expenses. It was easier to do this, even when using metal for coins, than to tax or borrow.
In the modern era, the princes of Europe began to borrow money and quickly learned to imprison and default on their bankers. Edward I of England borrowed from the Jews, and when he could not repay, he suddenly discovered that they were Jewish and banned them from England while not allowing them to take property.
Honestly, it is just insane. They do not do their research and governments are always responsible for creating wars and destroying the savings of the people. Adam Smith in his 1776 “Wealth of Nations” expressed it best.
We are just fools. We insanely believe that we can create change by replacing one politician with another. The ONLY possible way to achieve change is to change the very system of how government functions. Until we are prepared to do that, suck it up, for your future belongs to the madness and corruption of politicians.
Russia & Double Taxing Tax Havens
Russia has proposed to put Switzerland on a blacklist along with 118 other countries on the provisional list of tax havens. If Russian authorities approve of the list in November, Russian companies in Switzerland will suffer double taxation. This also threatens the Austrian economy.
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