If anyone thought the bad blood between Germany and the rest of the insolvent proletariat, aka the part of the Eurozone which is out of money (most of it), and which has been now confirmed will be supporting Obama (one wonders what the quid for that particular quo is, although we are certain we will find out as soon as December), complete collapse of the Greek neo-vassal state of the globalist agenda notwithstanding, had gone away, here comes former ECB chief economist Juergen Stark to dispel such illusions. In an interview with Austrian Die Presse, the former banker said what everyone without a PhD understands quite well: "The break came in 2010. Until then everything went well..."Then the ECB began to take on a new role, to fall into panic.... Together with other central banks, the ECB is flooding the market, posing the question not only about how the ECB will get its money back, but also how the excess liquidity created can be absorbed globally. "It can't be solved by pressing a button. If the global economy stabilises, the potential for inflation has grown enormously... It gave in to outside pressure ... pressure from outside Europe" Why, whichever bank headquartered at 200 West, NY, NY might he be referring to?
from KingWorldNews:
Today King World News is reporting on incredibly important developments taking place in the gold and silver markets. Acclaimed commodity trader Dan Norcini told KWN that in the metals markets, “I don’t recall seeing something like this over the last eleven years we’ve been in this bull market.”
Norcini has been stunningly accurate in his predictions of the movement of the gold and silver markets. Now the acclaimed trader discusses these incredibly important developments in both the gold and silver markets: “This week there was a big change in the (COT) swap dealers position, Eric. They added the equivalent of (roughly) 13,700 contracts worth of selling (in silver). That was a large amount of selling this week (by the swap dealers in silver). It changed their position quite quickly.”
Dan Norcini continues @ KingWorldNews.com
Today King World News is reporting on incredibly important developments taking place in the gold and silver markets. Acclaimed commodity trader Dan Norcini told KWN that in the metals markets, “I don’t recall seeing something like this over the last eleven years we’ve been in this bull market.”
Norcini has been stunningly accurate in his predictions of the movement of the gold and silver markets. Now the acclaimed trader discusses these incredibly important developments in both the gold and silver markets: “This week there was a big change in the (COT) swap dealers position, Eric. They added the equivalent of (roughly) 13,700 contracts worth of selling (in silver). That was a large amount of selling this week (by the swap dealers in silver). It changed their position quite quickly.”
Dan Norcini continues @ KingWorldNews.com
by Jeb Handwerger, SilverBearCafe.com:
Since July we have alerted our readers to a breakout in gold and silver prices as we expected a risk on rally in commodities with the catalyst being QE3 combined with worldwide stimulus moves from Central Bankers.
Since that time silver has soared 30% higher almost 10 straight weeks in a row as Bernanke announces a QE 3, 4, 5+? and record low interest rates until mid-2015.
Silver has been outperforming gold over the past 10 weeks as investors are hoarding and buying poor man’s gold to hedge against worldwide quantitative easing and pump-priming being implemented by Central Banks around the world to devalue their respective currencies.
Read More @ SilverBearCafe.com
Since July we have alerted our readers to a breakout in gold and silver prices as we expected a risk on rally in commodities with the catalyst being QE3 combined with worldwide stimulus moves from Central Bankers.
Since that time silver has soared 30% higher almost 10 straight weeks in a row as Bernanke announces a QE 3, 4, 5+? and record low interest rates until mid-2015.
Silver has been outperforming gold over the past 10 weeks as investors are hoarding and buying poor man’s gold to hedge against worldwide quantitative easing and pump-priming being implemented by Central Banks around the world to devalue their respective currencies.
Read More @ SilverBearCafe.com
by Chris Puplava, Financial Sense:
This week saw the third central bank step on the gas in an attempt to reflate their economy. We had the ECB and the Fed which announced open-ended QE (quantitative easing) programs, followed this week by Japan which extended its current QE program into 2013. In effect, global QE has now begun, stoking a reflationary fire as stocks, commodities, and other asset markets react to the fire being kindled by central banks around the globe.
A simple look at the aggregate debt that will be maturing across the world’s top debtor nations coupled with anemic economic growth rates made it abundantly clear global QE was coming as was highlighted earlier in the year (See Global QE is Coming: Let the Gold Mania Begin!). In that article, I pointed out that the sovereign debt maturity cycle kicks in to high gear starting this year where by the end of 2015 half of the entire outstanding debt of the world’s top ten debtor nations needs to be rolled over, which comes out to more than $15 TRILLION DOLLARS! Mind you, that is $15 Trillion in just over two years, which will absolutely overwhelm current demand for sovereign debt. Thus, in come world central banks to the rescue.
Read More @ financialsense.com
This week saw the third central bank step on the gas in an attempt to reflate their economy. We had the ECB and the Fed which announced open-ended QE (quantitative easing) programs, followed this week by Japan which extended its current QE program into 2013. In effect, global QE has now begun, stoking a reflationary fire as stocks, commodities, and other asset markets react to the fire being kindled by central banks around the globe.
A simple look at the aggregate debt that will be maturing across the world’s top debtor nations coupled with anemic economic growth rates made it abundantly clear global QE was coming as was highlighted earlier in the year (See Global QE is Coming: Let the Gold Mania Begin!). In that article, I pointed out that the sovereign debt maturity cycle kicks in to high gear starting this year where by the end of 2015 half of the entire outstanding debt of the world’s top ten debtor nations needs to be rolled over, which comes out to more than $15 TRILLION DOLLARS! Mind you, that is $15 Trillion in just over two years, which will absolutely overwhelm current demand for sovereign debt. Thus, in come world central banks to the rescue.
Read More @ financialsense.com
Iran Accuses German Siemens Of Sabotaging Its Nuclear Plant As Turkey Sends Heavy Weapons To Syria Border
It seems you can't turn your back on the Middle East for more than a few minutes without something going bump in the desert. Sure enough, a few shorts hours after we reported that the leader of Iran's Revolutionary Guards is certain war with Israel is coming, here comes Iran again with the stunning admission that none other than German industrial conglomerate, and occasional maker of nuclear power plants, Siemens was reponsible for "implanting tiny explosives inside equipment the Islamic Republic purchased for its disputed nuclear program. Prominent lawmaker Alaeddin Boroujerdi said Iranian security experts discovered the explosives and removed them before detonation, adding that authorities believe the booby-trapped equipment was sold to derail uranium enrichment efforts. "The equipment was supposed to explode after being put to work, in order to dismantle all our systems," he said. "But the wisdom of our experts thwarted the enemy conspiracy." Expert wisdom aside, what is stunning is not the ongoing attempts by everyone and the kitchen sink to terminally corrupt the Iranian nuclear power plant: after Stuxnet one would expect nothing less than every form of conventional and "new normal" espionage thrown into the pot to cripple the only peaceful argument Iran would have for demanding nuclear power, which by implication would mean that all ongoing nuclear pursuits are geared solely toward aggressive, military goals, of the type that demand immediate military retaliation by the democratic superpowers. No, what is stunning is the implicit admission that Germany's, and Europe's, largest electrical engineering company, has been not only quietly transacting with none other than world peace (as portrayed by the MSM) enemy #1, Iran, but instrumental in its nuclear program.Draghi's Coup D'Etat And Why OMT Is Illegal
According
to Mario Draghi, OMT, or Outright Monetary Transactions, is a program
of conditional bond buying targeted at specific countries to restore
the perception of the euro's irreversibility and stability, and repair a
broken monetary policy transmission mechanism. Once launched, OMT has
no ex ante limits, it is within the ECB's price stability
mandate, and it can be halted or interrupted based on achievement of
its objectives or non-compliance with conditions imposed upon the
targeted national government. We would posit that OMT is much more than what the party line states. Here are some alternative interpretations for your consideration. We challenge you to refute the logic of any of them.IceCap Asset Management: Three Days That Shook The World, And The Law Of Diminishing Returns
Let’s review the tricks the central banks & governments have available to beat back any financial challenges presented by the debt reaper.- Money tool # 1 = deficit spending. For years, the G7 countries have believed that spending more than you make, will create jobs and prosperity. To measure the success of this strategy, we invite you to hang out in Spain, Greece or Italy.
- Money tool # 2 = cut interest rates to 0%. All the really smart people in the World know that lower interest rates encourage people and companies to borrow more money and spend this money. To measure the success of this strategy, we invite you to hang out at the US Federal Reserve and help them count the $1.5 trillion in excess money held by the big banks.
- Money tool # 3 = when all else fails print money. Everyone knows by now the reason the Great Depression was great was because no one had the idea to print money to kick start the economy. To measure the success of this strategy, we definitely do not invite you to visit Japan. The Japanese have been printing money for over 10 years and that hasn’t shaken their economy from its funk one bit.
Total Donations over the last 3 1/2 years. approx $165.00 (Thank You).
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Continuity of Agenda: Neo-Cons and Obama administration sponsor global terror against Iran
by Tony Cartalucci, InfoWars:
As the US government confirms that terrorists involved in the Benghazi, Libya US consulate attack were indeed the very militants funded, armed, and provided air support in last year’s bid to overthrow the government of Libya, yet another disturbing announcement has been made. Terror organization Mujahedeen e-Khalq (MEK) will be delisted by the US State Department in order to clear legal obstacles in the way of overtly arming and funding the terrorists in pursuit of a proxy war with Iran, the LA Times reported in their article, “U.S. to remove Iranian group Mujahedin Khalq from terrorist list.”
The LA Times states specifically:
Read More @ InfoWars.com
by Tony Cartalucci, InfoWars:
As the US government confirms that terrorists involved in the Benghazi, Libya US consulate attack were indeed the very militants funded, armed, and provided air support in last year’s bid to overthrow the government of Libya, yet another disturbing announcement has been made. Terror organization Mujahedeen e-Khalq (MEK) will be delisted by the US State Department in order to clear legal obstacles in the way of overtly arming and funding the terrorists in pursuit of a proxy war with Iran, the LA Times reported in their article, “U.S. to remove Iranian group Mujahedin Khalq from terrorist list.”
The LA Times states specifically:
Some current and former U.S. officials have called for arming the MEK to conduct attacks against Iran, which experts say could tip the United States and Iran closer to war.The lobbying effort to delist MEK has been led by former New York City Mayor Rudy Giuliani,Howard Dean, first “Secretary of Homeland Security” Tom Ridge, John Lewis, Ed Rendell, former FBI Director Louis Freeh, retired General Wesley Clark, Lee Hamilton who farcically oversaw the 9/11 Commission, former US Marine Corps Commandant and former Obama National Security Adviser General James Jones, and Alan Dershowitz. There are also members of the British Parliament including David Amess of the Parliamentary Committee for Iran Freedom, speaking on MEK’s behalf.
Read More @ InfoWars.com
One Obviously Well Informed Deer
Trader Dan at Trader Dan's Market Views - 1 hour ago
I could not resist posting a link to the following story.
This is one deer that every gun lover and hunter should pass up taking a
shot at if they were to ever see it come into their crosshairs. Why? We
need this deer to pass on its genes to its progency. Now if we could just
get some more American Citizens to do the same maybe we could get our
country back again!
Enjoy....
By the way, for any of you leftists who happen to read this blog, it's a
damn shame that a deer's got more sense that some of you.
Texas couple snaps photo of deer destroying Obama front yard signA Texas
couple... more »
On The Rise Of ETFs As A Driver Of Bond Returns
The seemingly inexorable rise of corporate bond ETFs
(most specifically HYG and JNK is the high-yield market, and LQD in
investment grade) have been discussed at length here as both a 'new'
factor in the underlying bond market's technicals (flow) as well as
their correlated impact on equity and volatility markets. Goldman Sachs'
credit team delve deep into the impact of these relatively new (and rapidly growing) structures with their greater transparency but considerably higher sensitivities and conclude that not only are they here to stay but the consequences of ETF-inclusion (dramatic outperformance bias relative to non-ETF bonds)
are deepening the liquidity divide (and relative-value) of what is
already a somewhat sparsely-traded market. Our concern is that, as the
divide grows (and liquidity is concentrated in ETF bonds), given the
crowding tendency we have witnessed, (even with call constraints at
extremes thanks to low interest rates), this is yet another crowded 'hot potato' trade hanging like a sword of Damocles over our markets (courtesy of Bernanke's repression). from TruthNeverTold :
from RT:
There’s something you should hear, but we’re willing to bet you might not believe it. The results of a new Gallup poll reveal that Americans’ distrust with the media is more severe than ever.
Gallup released findings from one of their newest studies on Friday, and through their research the polling group has determined that more than half of Americans have little to no trust in the mainstream media. According to the group’s findings, 60 percent of Americans polled say they have “little or no trust in the mass media to report the news fully, accurately and fairly.”
Pollsters with Gallup have asked Americans about their take on the mass media routinely since the 1990s, but analyzing the answers they’ve received in the two decades or so since reveals that distrust is indeed at a record high.
Back in 1997 when Gallup first began regularly asking around, only 46 percent of the people polled said they had very little-to no trust in the media, compared to 53 percent who favored it either a great deal or a fair amount. Today, 40 percent say they trust their sources that much, compared to 44 percent just one year earlier.
Read More @ RT.com
There’s something you should hear, but we’re willing to bet you might not believe it. The results of a new Gallup poll reveal that Americans’ distrust with the media is more severe than ever.
Gallup released findings from one of their newest studies on Friday, and through their research the polling group has determined that more than half of Americans have little to no trust in the mainstream media. According to the group’s findings, 60 percent of Americans polled say they have “little or no trust in the mass media to report the news fully, accurately and fairly.”
Pollsters with Gallup have asked Americans about their take on the mass media routinely since the 1990s, but analyzing the answers they’ve received in the two decades or so since reveals that distrust is indeed at a record high.
Back in 1997 when Gallup first began regularly asking around, only 46 percent of the people polled said they had very little-to no trust in the media, compared to 53 percent who favored it either a great deal or a fair amount. Today, 40 percent say they trust their sources that much, compared to 44 percent just one year earlier.
Read More @ RT.com
by Ethan A. Huff, Natural News:
Big-box retailer Walmart is once again in hot water after an on-site manager at one of its stores in Pembroke Pines, Florida called the police on a group of elementary school students that tried to sing “God Bless America” inside the store on September 11. After being booted from the store, the 75-member children’s choir actually had the police called on it for trying to perform the pre-arranged tune under a flag outside the store that was set at half-staff in honor of 9/11 victims, reports the South Florida Sun-Sentinal.
At the leading of their principal Terri Thelmes, the students, all of which attend Coconut Palm Elementary School in nearby Miramar, Fla., obtained permission in advance from another Walmart store manager to perform the tribute inside the store on the 9/11 anniversary. But upon arriving to the location at 12800 Pines Blvd. around 7 p.m. that Tuesday evening, another store manager told the children they were a “liability,” and that they would not be allowed to perform the song.
Read More @ NaturalNews.com
Big-box retailer Walmart is once again in hot water after an on-site manager at one of its stores in Pembroke Pines, Florida called the police on a group of elementary school students that tried to sing “God Bless America” inside the store on September 11. After being booted from the store, the 75-member children’s choir actually had the police called on it for trying to perform the pre-arranged tune under a flag outside the store that was set at half-staff in honor of 9/11 victims, reports the South Florida Sun-Sentinal.
At the leading of their principal Terri Thelmes, the students, all of which attend Coconut Palm Elementary School in nearby Miramar, Fla., obtained permission in advance from another Walmart store manager to perform the tribute inside the store on the 9/11 anniversary. But upon arriving to the location at 12800 Pines Blvd. around 7 p.m. that Tuesday evening, another store manager told the children they were a “liability,” and that they would not be allowed to perform the song.
Read More @ NaturalNews.com
from Activist Post
As you will see in the video below, the results collected during a study that focused on determining the potential harm done to animals and humans from consuming GMO corn NK603 are worthy of the outrage and concern we are finally witnessing on a mass scale. The most telling discovery is that rats fed GMO had a 600% increase in death over the control group. Experts across the spectrum have weighed in to discuss these shocking findings. Equally disturbing are the findings surrounding the world’s leading herbicide, Roundup. It is a combination that now can be conclusively called pure poison.
The campaign for labeling of GMO is now gaining steam in California, and France has launched a major investigation, but until we have at a minimum universal proper labeling of what we are ingesting, we face a future of incredibly compromised health at the hands of giant chemical corporations like Monsanto and DuPont who already have provably poisoned people and the environment with creations like DDT, Agent Orange and now, apparently, modern-day genetic modification and herbicides and pesticides like Roundup.
The images and video below are disturbing, but must be shared. Now is the time to spread this information and exert maximum pressure with wide-scale boycotts of these destructive companies.
Read More @ Activist Post
As you will see in the video below, the results collected during a study that focused on determining the potential harm done to animals and humans from consuming GMO corn NK603 are worthy of the outrage and concern we are finally witnessing on a mass scale. The most telling discovery is that rats fed GMO had a 600% increase in death over the control group. Experts across the spectrum have weighed in to discuss these shocking findings. Equally disturbing are the findings surrounding the world’s leading herbicide, Roundup. It is a combination that now can be conclusively called pure poison.
The campaign for labeling of GMO is now gaining steam in California, and France has launched a major investigation, but until we have at a minimum universal proper labeling of what we are ingesting, we face a future of incredibly compromised health at the hands of giant chemical corporations like Monsanto and DuPont who already have provably poisoned people and the environment with creations like DDT, Agent Orange and now, apparently, modern-day genetic modification and herbicides and pesticides like Roundup.
The images and video below are disturbing, but must be shared. Now is the time to spread this information and exert maximum pressure with wide-scale boycotts of these destructive companies.
Read More @ Activist Post
by J.D. Heyes, Natural News:
In America, where freedom of speech is supposed to reign supreme, there is still censorship, even at our country’s mature age. And what’s more, the problem is getting worse.
In recent months, for example, YouTube and Google put an age restriction to access to a satirical video about the Transportation Security Administration, produced by our founder and editor, Mike Adams, the Health Ranger. The video, entitled, TSA: Help Wanted, highlighted the agency’s crass and absurd policies and procedures, as well a growing number of officers hired by the agency as screeners (many have criminal records and many more have been arrested for a host of crimes, ranging from theft to child pornography).
But apparently it’s okay with YouTube to allow hackers to promote their services, uninhibited and without restriction, even though the very act of hacking is malicious in nature and often involves theft of private information.
Read More @ NaturalNews.com
In America, where freedom of speech is supposed to reign supreme, there is still censorship, even at our country’s mature age. And what’s more, the problem is getting worse.
In recent months, for example, YouTube and Google put an age restriction to access to a satirical video about the Transportation Security Administration, produced by our founder and editor, Mike Adams, the Health Ranger. The video, entitled, TSA: Help Wanted, highlighted the agency’s crass and absurd policies and procedures, as well a growing number of officers hired by the agency as screeners (many have criminal records and many more have been arrested for a host of crimes, ranging from theft to child pornography).
But apparently it’s okay with YouTube to allow hackers to promote their services, uninhibited and without restriction, even though the very act of hacking is malicious in nature and often involves theft of private information.
Read More @ NaturalNews.com
by Susanne Posel, Occupy Corporatism:
Janet Napolitano, Secretary of the Department of Homeland Security spoke to the Senate Homeland Security and Governmental Affairs Committee meeting this week and confirmed that the Obama administration is circumventing Congress and drafting an “inter-agency process” which is “close to completion depending on a few issues that need to be resolved at the highest levels.”
John Brennan, assistant to the President for Homeland Security and Counterterrorism and chairman of the Senate Committee on Commerce, Science and Transportation has planted the concept that a cybersecurity executive order will give the Obama administration power over the future of the internet in ways the passage of legislation would never be able to provide. In a letter to Senator Jay Rockefeller, Brennan said that Obama is “exploring issuing an executive order to direct federal agencies to secure the nation’s critical infrastructure by working with the private sector to develop security standards.”
Read More @ OccupyCorporatism.com
This is an ancient observation true even today – that most people spend their childhood in pranks and play, their youth in sports, pleasure and pastime, middle age in plans and schemes to pile up a fortune, and old age in hospitals trying to bolster failing health through failing wealth. Earning and spending, one fills their time with work and worry. People are busy with a number of attempts to earn happiness, but success is little and short-lived. The only panacea for all ills, the effort that will result in total victory is the control of the mind, which is the master of the senses. Every sense organ is an outlet for energy that binds one to the objective world. The senses are induced by the mind to move out and attach themselves to objects. You must make the mind submit to wisdom, which discriminates between right and wrong. Then the mind, instead of harming, will help you. –SSB, Oct 2, 1965
What Does the Invisible Hand Already Know About The Final End Game? CIGA Eric
Jim’s timeline commentary does a great job explaining why QE has become the global policy tool of choice to kick the can (excessive debt of the Western economies) down the economic road.
In my opinion, his best observation “once on the QE road there is no exit other than business recovery success which will not occur” explains why gold is rallying and capital flows remain defensive despite periodic risk-on reallocations.
For instance, a great indication that infinite QE cannot remove the can from the road is revealed by the actions of the invisible hand in the US Treasury market. US Treasury bonds sold off sharply once the Fed announced QE(n) disguised as QE3. Experts were quick to proclaimed QE3 as highly inflationary and pronounce US Treasuries as dead money. An untold number of bodybags have been filled by investors eager to proclaim long bonds as dead money.
My September 14th commentary (US Budget Deficit Hits $1.16 Trillion Through Aug ), I wrote
Accumulation of US Treasury bonds by the invisible hand during the sharp selloff as part of a weak to strong hand transfer would suggest trouble in 2013. This has been illustrated by a rising DI reading as price declines. Last week’s sharp selloff has yet to be included in the computer analysis illustrated below (chart 2).
What did the invisible hand do? A sharp increase in Treasury Bond’s diffusion index (DI) from -5% to 43% screams ACCUMULATION during the selloff (chart). Anyone screaming ‘sell bonds’ once DI exceeds 60% will be standing on thin ice.
Chart: US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI)
Observations:
My dear extended family:
The final end game of QE 3 to Infinity, with a month or two off from time to time, will be a product of the long term viability of the Federal Reserve Balance sheet and the impact on the dollar therefrom.
Lets review what has transpired:
More…
Jim,
The short term AU series (slide 11) is still looking for $2200 mid November.
The longer term AU series (slide 1) suggests higher – but in a measured way.
Thank you,
CIGA Drew (aka Paracelsus)
Total Donations over the last 3 1/2 years. approx $165.00 (Thank You). Donations will help defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
Janet Napolitano, Secretary of the Department of Homeland Security spoke to the Senate Homeland Security and Governmental Affairs Committee meeting this week and confirmed that the Obama administration is circumventing Congress and drafting an “inter-agency process” which is “close to completion depending on a few issues that need to be resolved at the highest levels.”
John Brennan, assistant to the President for Homeland Security and Counterterrorism and chairman of the Senate Committee on Commerce, Science and Transportation has planted the concept that a cybersecurity executive order will give the Obama administration power over the future of the internet in ways the passage of legislation would never be able to provide. In a letter to Senator Jay Rockefeller, Brennan said that Obama is “exploring issuing an executive order to direct federal agencies to secure the nation’s critical infrastructure by working with the private sector to develop security standards.”
Read More @ OccupyCorporatism.com
This is an ancient observation true even today – that most people spend their childhood in pranks and play, their youth in sports, pleasure and pastime, middle age in plans and schemes to pile up a fortune, and old age in hospitals trying to bolster failing health through failing wealth. Earning and spending, one fills their time with work and worry. People are busy with a number of attempts to earn happiness, but success is little and short-lived. The only panacea for all ills, the effort that will result in total victory is the control of the mind, which is the master of the senses. Every sense organ is an outlet for energy that binds one to the objective world. The senses are induced by the mind to move out and attach themselves to objects. You must make the mind submit to wisdom, which discriminates between right and wrong. Then the mind, instead of harming, will help you. –SSB, Oct 2, 1965
What Does the Invisible Hand Already Know About The Final End Game? CIGA Eric
Jim’s timeline commentary does a great job explaining why QE has become the global policy tool of choice to kick the can (excessive debt of the Western economies) down the economic road.
In my opinion, his best observation “once on the QE road there is no exit other than business recovery success which will not occur” explains why gold is rallying and capital flows remain defensive despite periodic risk-on reallocations.
For instance, a great indication that infinite QE cannot remove the can from the road is revealed by the actions of the invisible hand in the US Treasury market. US Treasury bonds sold off sharply once the Fed announced QE(n) disguised as QE3. Experts were quick to proclaimed QE3 as highly inflationary and pronounce US Treasuries as dead money. An untold number of bodybags have been filled by investors eager to proclaim long bonds as dead money.
My September 14th commentary (US Budget Deficit Hits $1.16 Trillion Through Aug ), I wrote
Accumulation of US Treasury bonds by the invisible hand during the sharp selloff as part of a weak to strong hand transfer would suggest trouble in 2013. This has been illustrated by a rising DI reading as price declines. Last week’s sharp selloff has yet to be included in the computer analysis illustrated below (chart 2).
What did the invisible hand do? A sharp increase in Treasury Bond’s diffusion index (DI) from -5% to 43% screams ACCUMULATION during the selloff (chart). Anyone screaming ‘sell bonds’ once DI exceeds 60% will be standing on thin ice.
Chart: US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI)
Observations:
- The invisible hand is accumulated the US Treasuries into weakness warns of trouble ahead.
- Positive and negative divergences displayed by drug and transportation stocks, respectively, warn of trouble ahead.
- Jim suggests that the end game problem is an extended recessionary business conditions going into 2015 to 2017 wherein the supply of dollars continually expands, the US Federal Deficit. As usual, he’s correct. Smart money, generally too big for quick and discrete decision-making, often positions well in advance of cycle highs and lows. Cycle highs and lows generally coincide with headline events. Numerous negative and positive divergences between sectors and markets suggest that smart money already knows the importance of 2015.
My dear extended family:
The final end game of QE 3 to Infinity, with a month or two off from time to time, will be a product of the long term viability of the Federal Reserve Balance sheet and the impact on the dollar therefrom.
Lets review what has transpired:
- OTC derivatives manufacturers and distributors sold fraudulent paper to almost every entity as clients of the Western world financial system.
- Until Lehman was flushed, and flushed it was, most all OTC derivatives could have been netted to zero in a Derivative Resurrection Bank. Losers would have rejoiced and winner would have declared war. However when Lehman was forced into bankruptcy it broke the "Daisy Chain" (a chain of near risk-less transaction when netted) of the OTC derivatives scam. At this point winners had won huge and loser had lost huge and there was no longer a means of repair to the quadrillion dollar scam.
- The size of the OTC derivative market stood at one quadrillion one hundred and forty four trillion as reported by the Bank of International settlement, the counter internationally.
- The Bank of international Settlements seeing this outrageous number changed their computer method of valuation to maturity assuming no failures and reduced the number of OTC derivatives of all kinds to a more acceptable huge number of $700 Trillion.
- In the first and second round of QE the Federal reserve purchased OTC derivatives and Securitized Mortgage debt generally at issue price to remove them from the balance sheets of the Western world financial system. That means the Federal Reserve has impaired its balance sheet in order to repair some of the balance sheet integrity of the Western world financial system. The amount they have purchased is quit small as compared to total outstanding OTC derivative paper of all varieties above one quadrillion dollars.
- The reason for QE to Infinity, QE 3, is the failure of business activity in the Western world to pick up with early huge monetary stimulation so as to repair the balance sheet of the Western financial world financial system.
- The crisis not seen by Fed observers is the true balance sheet condition of the losers on the more than one quadrillion OTC derivative fraudulent paper. This is thanks to FASB, the gate keepers of Western world accounting that allows financial institutions to value their value-less OTC derivative paper at whatever their computers say with no reference to any market value. Many specific performance contracts, the definition of the majority of OTC derivative simply have no market.
- As QE 3 to infinity moves ahead the balance sheet of the Federal Reserves continues to acquire worth – less paper in exchange for dollars usually paying the issue value for worth-less paper.
- The end game problem is an extended recessionary business conditions going into 2015 to 2017 wherein the supply of dollars continually expands, the US Federal Deficit.
More…
Jim,
The short term AU series (slide 11) is still looking for $2200 mid November.
The longer term AU series (slide 1) suggests higher – but in a measured way.
Thank you,
CIGA Drew (aka Paracelsus)
Total Donations over the last 3 1/2 years. approx $165.00 (Thank You). Donations will help defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
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