USA Losing Sovereignty to World Fiscal Mismanagement
The IMF and many economists (domestic and foreign) are now warning that a rate hike by the U.S. Federal Reserve, no matter when, will spark a major economic crisis in the emerging markets. They see this crisis being ripe for countries with high budget deficits, such as Turkey, as well as commodity-based economies. This includes the oil exporters such as Russia and even Saudi Arabia who has now begun to issue debt.
This is holding the Federal Reserve’s feet to the fire to the point that they are losing control of their own domestic policy objectives as a consequence of the dollar becoming the WORLD’S ONLY RESERVE CURRENCY no matter what the IMF inserts into the SDR. The emerging economies have issued debt worth nearly half that of the USA without the economic strength to back up that debt. True, there is going to be a debt explosion by 2017 and this is not going to look very nice at the end of the day. Clearly, the Fed is being pressured externally to give up its domestic policy objectives to help the debt burden of everyone else. And people keep saying the dollar will go into hyperinflation? Obviously, they do not understand the world economy or that what is taking place is OUTSIDE of the United States. Sorry, the dollar is not quite ready to burn to ashes.
The Federal Reserve has called a meeting on Monday. This issue of sovereignty will come to a head. The Fed has called this emergency meeting to perhaps change interest rates. The question becomes for who? The lobbying against the Fed to raise rates has been intense. My recommendation is to eliminate the 0.25% paid to banks on excess reserves and raise rates. We must normalize rates ASAP to prevent a major crisis in Pension Funds of which the average hold 40% in government debt and cannot meet future obligations. But this is the domestic sovereignty issue. Does the Fed lower rates and make the same mistake it did in 1927 to try to save the world which will never reform its debt load?
If the Fed lowers rates, the markets may see this as a CONFIRMATION that the sovereign debt crisis is becoming critical and the capital inflows will then intensify into the USA as it did between 1927-1929. So let’s see if the Fed has learned its lesson or are they stupidly going to try to save the world who will then only expect more of the same in the end.
Antibiotics & The End of an Era
REPLY: Yes, disease outbreaks are part of the Economic Confidence Model. Disease organisms mutate and evolve to counteract the drugs that we invent. The abuse of antibiotics is setting the stage for another pandemic.
I myself would not be alive if it were not for such a pandemic in the mid-19th century. My relative Martin’s whole family died and he remarried the woman next door who lost her husband and children. So I am a product of that pandemic that struck Philadelphia. Capitalism began with the Black Death, which killed about 50% of the European population and forced the end of serfdom and the rebirth of wages.
What lies ahead with disease definitely appears to be another pandemic that will thin the herd. We should start to see more aggressive disease appear in 2017 most likely moving into 2020 based on the pandemic cycles.
Captagon Makes ISIS Fighters Superhuman or Are They Just a Warrior Cult?
According to various sources, ISIS is using the drug Captagon to create superhuman warriors. Perhaps this is true. However, it is by no means the first encounter with a warrior culture and it would be a mistake to assume it is simply drugs.
The
modern legend of warrior cults came from the island of Mindanao, where
the U.S. Army had to invent the .45 automatic to stop the fanatical
Moros from cutting down American soldiers in the Philippine Islands. The
legend is not entirely wrong. It is very true that fighting the Moros
was indeed the primary motivator for the “invention” of the .45
automatic. It is true that from 1911 until 1985, the Colt Model 1911 .45
caliber semi-automatic pistol was the official sidearm of the U.S.
military and became the most famous pistol in military history.In the late 19th century, the U.S. adopted the Colt Model 1894 .38 caliber double-action (DA) revolver as the standard sidearm for officers. The six-shot Colt .38 DA represented advanced technology, replacing the famous Colt .45 “Peacemaker” which was a single-action that had to be cocked by hand each shot. The Colt .38 was used during the Spanish-American War, which was actually only two days of actual ground combat. The Philippine-American War (called at the time the “Philippine Insurrection”) was nearly as long as World War II itself from February 1899 to July 4, 1902, because it was really a guerrilla war that they saw as a national liberation battle.
The Filipino Army of Liberation had to make their own bullets and had perhaps one rifle for every three soldiers. Over 4,000 Americans were killed out of 126,468 troops, so the death rate was actually higher than the Vietnam War. The Filipino troops used the bolo, which was a fearsome, short, 16 to 18-inch razor sharp weapon used to in harvesting crops and hacking through trails in the jungle. American troops with a single shot weapon did not stand a chance, and often against a charge of several hundred bolo armed men.
As the war came to an end in the north, suddenly the south island of Mindanao erupted with the first battle taking place between the Americans and the Muslim Moros on May 2, 1902; the Battle of Bayan. Yes, they were Muslim and the fieriest warriors of all. The Americans killed about half of the 600 Moros warriors. About 10% of the American troops were severely wounded in a matter of minutes. American troops ran out of ammo and fixed their bayonets. A wave of Moro warriors were hiding in nearby trenches and charged, swinging their terrifying bolo short swords and some with the double-handled kampilan, while others had the double-edged wavy kris that was considered to be the most deadly of all. One survivor of that battle, Capt. C.C. Smith, recounted that “in hand-to-hand combat our soldiers are no match for the Moro. If our first shot misses the target, we rarely have time to get off another.” In the end, all the officers were killed and about half of the American troops were cut down. Only a torrential rainfall saved the rest.
The battle against the Moro lasted more than a decade from 1903-1913. The most famous of the Moros warriors was Panglima Hassan who was a Tausug war leader. He refused to surrender and by himself he rushed the American line with only his sword. They opened fired but he cut up one American soldier and two officers before being brought down. His body was inspected and thirty-two bullets hit him before a last bullet from a sergeant’s revolver shot him square between the eyes.
The newspapers asserted that the Moros were “hopped up” on drugs. They wore bamboo armor and old Spanish helmets for protection during these charges. This was just propaganda. The Moros were a warrior culture much like the Spartans of ancient Greece or the Celts who would charge at the Romans in a sure death charge. There was never any possibility of surrender in any of these cultures for it was considered dishonorable and highly shameful in both society and their religious values. So there was no possibility of returning after the war. All of these cultures embraced death as honorable where they would gain instant entry to heaven if they died in battle. The Celts believed they would simply be reincarnated. This type of mental state did not require chemicals.
The first Colt .45 M1911 semi-automatic pistols were finally shipped to Moro land thirty years later in 1944-1945. No doubt, the experience with the Moro Muslim warriors inspired the semi-automatic .45 to become a standard issue when they faced another hard to stop warrior type society – the Japanese.
Market Talk – November 20th, 2015
Given the continued USD strength US stock market maintained their momentum with solid gains seen across all indices. Having heard from numerous FED and ECB members this week the plan is set for a US hike followed closely by further ECB QE/easing. It would be very easy just to play this game early by shorting the EURO or (as is known these days) playing the EURO as a carry trade. The logic makes sense but as always it is all about timing.
The talk is now about a Monday meeting at the Fed.
The Climate Change/Global Warming Crowd Paid to Produce Bullshit
Government is always about money — just show me the money. It is a shame that we have to deal with such corruption in academia. They can do as they like because they know students will get loans that they can never pay off so they teach nonsense and tell people they cannot find a job without their piece of paper. But then they have to be retrained anyway or they end up in a field other than what they have a degree in. So you can get a degree in basket weaving and find a job.
This same crew is putting out total bullshit about climate change when in fact they have ZERO analysis prior to 1900 to prove anything remotely close to what they claim. But as long as they can bullshit the people, they get the grants from the government to end up raising our taxes. This is just economic treason and the people are ALWAYS the target.
Now three leading experts have all jumped ship, coming out to state that climate change is just propaganda. MIT climate scientist Dr. Richard Lindzen, Princeton physicist Dr. Will Happer, and Greenpeace Co-Founder Dr. Patrick Moore all have stated publicly this is pure political propaganda. This is simply a tax agenda and not science. I have yet to see any long-term analysis to support their arguments. It is pure bullshit. Please explain all the historical data that shows it has been hotter and colder than before the Industrial Age.
Now they argue, for our own benefit, that government should tax sugar at a global G20 level. This is really getting out of hand.
Former French Colony of Mali Targeted
Mali, a former French colony, has been targeted as the war on France emerges. Mali came under French colonial rule in 1892. In 1893, the French appointed a civilian governor of the territory they called Soudan Français (French Sudan). Finally, by 1905 the French controlled the region. In 1958, the region was renamed Sudanese Republic, which then obtained complete internal autonomy, yet it became part of the French community or old empire. Then the next year saw the Sudanese Republic and Senegal form the Federation of Mali, and by 1960, France agreed to their full independence. So we still have a French target in this incident.
The targets of ISIS are France, Russia, and the USA. They are clearly attempting to create a war against non-Islamic countries in what appears to engage the entire war with religion at the center.
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