ReelMan Posted October 16, 2014 Posted October 16, 2014 What everyone needs to understand is that there is significant paradigm shift taking place. As of yesterday afternoon this is where we are, and it is all verifiable: Every October 15th, the corporate charter of the Federal Reserve (yes, it is a corporation) has to be re-signed to keep it in force. It was not signed yesterday, which brought back by default the terms of the Organic Act of 1871, taking us back to the gold standard. The Fed, for all intents and purposes, is out of business, as it has defaulted on its loans. Technically, they went into default in Sept. 2013. The Treasury Dept. is now the only one in control of American finance. The Chinese (and the new BRICS Development Bank) have committed to absorb the default of trillions of Central Bank paper and bank derivatives from the G7 nations, of which the US is the biggest problem. The Global Currency Reset is designed to be a bullion-backed standard, with the inclusion of resource value for every nation in the world as each country resets its currency value. The new American "offshore" currency is called the FRN (Federal Reserve Note). The new useable-in-America-only currency will be released over the weekend as the TRN (Treasury Reserve Note). It is blood-red in color, from what I am told. The New York Fed has zero, none, nada gold bullion on deposit anymore, and they also sold what they had on deposit from Germany. To say that the German's are pissed would understate the anger. Virtually 97% of the world's bullion is now owned by China, Russia, India and Canada. When the new SDR (Special Drawing Rights) international currency index is released for use as the new world currency revaluation index, the US dollar will lose 30%-50% of its value. So will the currency value of many other Western nations. Most likely, the markets will be closed by decree for a couple of weeks as the BIS/IMF code the system to reflect the GCR (Global Currency Revaluation) that is happening before the end of the year. There is virtually no gold left in the COMEX exchange in London. The smart investors have already taken physical delivery of their long positions in gold; all that is left is "paper" gold positions, and they will be wiped out. Currently, for every ounce of gold that was on deposit at COMEX, there are over 100 paper gold derivative contracts outstanding. So, how does that work? U.S. banks were borrowing from the Fed at 0% and buying Treasury's with a 2% yield. They then wrote derivatives on the spread. The "carry trade" is so numerous now that they can't be unwound. Oil will bottom at $80 for the next six months. That deal was signed by all the major mideast providers, in advance. People, we have turned a corner. We have reached the point at which the industrialized nations have run out of money (and printing ink) to keep the sins of over-reliance on the export of inflation to the non-Western nations, and that time is now. If you thought 2008 was bad, you ain't seen nothing yet. It will get ugly. There is going to be pain, but it is the only way to get back on a secure economic footing. IF we are lucky, those in America will not have to suffer through a buy-in of their bank accounts, as happened in Greece. My advice: read DEEPLY on the internet to find that what I say is true. Second, get out of the market within a couple of weeks and get your cash out of the bank. Buy metals. You will see the Chinese, via the new Shanghai Exchange, value gold at $4,000 and silver at $200 per ounce. For those so inclined, research the term Hegelian Dialectic, or start reading J.C. Collins and others found through his elegant writings. Best of luck to all 2
ReelMan Posted October 16, 2014 Posted October 16, 2014 Plus I have money tied up in short selling stocks, so I need it to drop … a lot. You are going to be in very good shape soon.... Sent from my iPhone using Tapatalk
ReelMan Posted October 16, 2014 Posted October 16, 2014 Agreed! FED is in a tricky spot, if they truly stop QE then the economy and stocks will tumble. If they continue with more QE then they risk destroying the dollar. Unfortunately the USD (like all fiat currencies in history) will go to ZERO. My fear is that day may be sooner rather than later. There's just to much debt!! +1 Unfortunately, the day of reckoning has come. The Fed is screwed either way they turn. That is why they have hit a brick wall and the IMF/BIS have turned on what was, essentially, a worldwide extension of Fed policy.
Lotusguy Posted October 17, 2014 Posted October 17, 2014 Cool - then my mortgage will also be in worthless USD, so bring it on 2
TiminBC Posted October 17, 2014 Posted October 17, 2014 Perhaps 'hard assets' are best. I favor habanos of all sizes. 1
dangolf18 Posted October 17, 2014 Posted October 17, 2014 Haha....jesus christ. Still in some sort of correction in my opinion. I'm slightly bullish gold in the near term, but will probably not see prices above $1400...remember it doesn't pay dividends.I think Europe is going to hell (no offense)...Draghi can't do anything else to keep it afloat. Greece, Italy, Portugal, and Spain are a ticking time bomb as far as I'm concerned. I'm fairly confident we'll see the euro reach parity with the dollar by mid-2016. 1
asmartbull Posted October 18, 2014 Posted October 18, 2014 In my old life, I used to live "finance" and have recently been offered an analysis position in a well know national firm....Over the past weeks I have sat in in many meetings with some top international bankers.....the consensus is "hold on because we are going to relive 08 plus some". The question is when.... and no one believes it is more than 2 yrs away. It is my opinion that we are going to see the perfect storm for a reset....on a side note while many will be going to cash, it may too be worth 50 percent of what it is today.....believe it or not, big money will be buying real estate. I am happy to go into great detail after I get some sleep..... 3
Habanos2000 Posted October 18, 2014 Posted October 18, 2014 As far as the Dow is concerned, I like to stick with fundamentals: Inflation: annual rate is 1.5 - 1.7%. Pretty acceptable as far as the Fed is concerned Employment: looks like employment is on the rise. It's not setting the world on fire, but people are starting to work again. New unemployment claims: pretty stable, that's positive. Everyone knows the Fed is winding back QE, no surprises there and the market HATES surprises I think we're still in decent shape. The past few years have been pretty good to the stock market investor. I don't see the sky falling any time soon.
Habana Mike Posted October 18, 2014 Posted October 18, 2014 Got a pretty decent bounce today. Lots of good earnings reports coming in. Curious to see what Monday brings.....
asmartbull Posted October 18, 2014 Posted October 18, 2014 The GOV is playing with numbers The U6....True unemployment is 11.8 % And the there are fewer people working today than was in 1978. The trigger for the drop may well be when folk realize that entitlement spending has to be addressed...truth be told, the market is so volatile that there is 1/2 a dozen feasible trigger. Oil prices is a double edged sword.....while great for mom and dad, it also means that the world economy is in the tank....truth be told conspiracy theorist are alive and well in this regard, speculating that the fix could be in to drop the price to slow the Russian economy......I do enjoy this discussion, just wish we were seeing the country move as it did in the latter part of the Reagan administration. 1
JohnLeupp Posted October 21, 2014 Posted October 21, 2014 What a difference a week makes. S&P 500 up 6% from its lows. Incredible vol.
Laxman Posted October 21, 2014 Posted October 21, 2014 Midterm elections in the US are Nov 4th I believe. Lower Oil prices look good to voters so as soon as we clear elections I would be surprised if it did not spike back up as they have been leaning on it. They are not going to let the Dow tank either during elections, but to me it is propped up. The state of the world economy and QE is keeping it over inflated. However I don't see a substantial pull back unless we see the housing market slide backwards. As stated true unemployment is a lot higher then what the the government numbers are showing. But a high Dow makes people believe they are actually doing something.
Merovius Posted October 24, 2014 Posted October 24, 2014 Well that buying opportunity didnt last very long... https://www.youtube.com/watch?v=52UxIgsC_0g
Diamondog Posted October 24, 2014 Posted October 24, 2014 I will upgrade my original call, we may even see the USD get to 1.18 by Q4 2015..
Nedule Posted October 24, 2014 Posted October 24, 2014 this sudden drop & then quick climb back up is just proof that things are very unsettled
paulF Posted December 3, 2014 Posted December 3, 2014 Reviving this thread after some pretty grim week for the AUD and AU economy in general... Things need to get a lot worse before they get better it seems...
sengjc Posted March 15, 2015 Posted March 15, 2015 Reviving this thread after some pretty grim week for the AUD and AU economy in general... Things need to get a lot worse before they get better it seems... Despite the grim economic outlook, property prices and clearance rates are still up though.
NastyPirate Posted March 15, 2015 Posted March 15, 2015 Despite the grim economic outlook, property prices and clearance rates are still up though. Don't be fooled. Oil will drop again, many major currencies will de-peg from the USD soon, the USD will drop 20% overnight and the stock market is going to take a 30% hit. The "magic circle" or 4 currencies will become 7 due to the new SDR. I mentioned as much a couple of months ago. The Swiss Franc was only the beginning.....It is going to get ugly. And I am saying this as a bull, not a bear.
Lotusguy Posted March 15, 2015 Posted March 15, 2015 Don't be fooled. Oil will drop again, many major currencies will de-peg from the USD soon, the USD will drop 20% overnight and the stock market is going to take a 30% hit. The "magic circle" or 4 currencies will become 7 due to the new SDR. I mentioned as much a couple of months ago. The Swiss Franc was only the beginning.....It is going to get ugly. And I am saying this as a bull, not a bear. Err - except the Swiss Franc was pegged to the Euro and not the dollar.
NastyPirate Posted March 15, 2015 Posted March 15, 2015 Err - except the Swiss Franc was pegged to the Euro and not the dollar. That is true; it was pegged to the Euro. I did not say that they de-pegged from the USD. The US does not want to be the reserve currency for the world any longer. The SDR will take the place of a reserve currency going forward. The fact that the Swiss Franc de-pegged at all is indicative of the movement towards a revaluation of national assets (a measure of mineral wealth and productivity) as the baseline for currency value. The fact that the CHF de-pegged was an IMF mandate, regardless of the surprise that the IMF professed. This is all scripted. My point is that many of the currencies that have been pegged to Euro or USD will un-peg. Germany will not be far behind in a go-it-alone strategy. The CHF will be entering the SDR basket soon (May or June) along with the Canadian Loonie and the Chinese Renminbi. The fact that the UK is joining the new Asian Infrastructure Bank should be the wake-up call to all that we have a new playing field with different rules. This ain't your grandfather's financial world anymore.
JohnS Posted March 15, 2015 Posted March 15, 2015 When my grandfather was alive the Bretton Woods system was used to peg world currencies to gold. That is long gone. I very much appreciate your insight, NastyPirate.I have a few questions. I am assuming you are saying that the IMF will include China into their fold, which would not surprise me. But why would the Special Drawing Rights be expanded from four currencies to seven?
anacostiakat Posted March 15, 2015 Posted March 15, 2015 Like Groundskeeper Willie I say watch your retirement grease!
NastyPirate Posted March 15, 2015 Posted March 15, 2015 I am assuming you are saying that the IMF will include China into their fold, which I would not surprise me. But why would the Special Drawing Rights be expanded from four currencies to seven? Yes, The IMF will include three more currencies. The reasons are simple: more stability through the use of a larger basket of currencies, thereby increasing the potential hegemony in currency trades, and the reflection of the "most used" currencies for international trade. These top seven currencies control almost 85% of world trade. Gold will be used as an underlying support mechanism for the basket.
CaptainQuintero Posted March 15, 2015 Posted March 15, 2015 The fact that the UK is joining the new Asian Infrastructure Bank should be the wake-up call to all that we have a new playing field with different rules. This ain't your grandfather's financial world anymore. The US public display of unhappiness at this is pretty unprecedented in the UK-US relationship, even with this the UK move went ahead which underlines the significant power shift taking place.
NastyPirate Posted March 15, 2015 Posted March 15, 2015 The US public display of unhappiness at this is pretty unprecedented in the UK-US relationship, even with this the UK move went ahead which underlines the significant power shift taking place. I agree, Cap'n. So far, the US has held Oz in check but not for much longer. These "spats" aren't really such; this is all scripted. The IMF and BRICS banks are taking a reasoned approach to changing the world financial model, as too much change too quickly will freak people out. The US is the first to admit that they no longer want to be the world's reserve currency; neither does China. Being the reserve currency means that you export too much inflation, which has now come back to haunt America.
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