Money Flow Trading Method along with Risk Management

THINK ABOUT THIS HOUSE OF CARDS !!!

http://www.zerohedge.com/news/2017-0...ops+to+zero%29

Banks Are Dumping - JPMorgan Goes Red
http://www.zerohedge.com/sites/defau.../picture-5.jpg
by Tyler Durden
Jan 13, 2017 12:20 PM


Well that's not supposed to happen...
"awesome" earnings...
http://www.zerohedge.com/sites/defau...0113_banks.jpg

"sell the news"?
http://www.zerohedge.com/sites/defau...banks1_1_0.jpg

Someone do something!!!
Just a reminder... no the yield curve is not steeper!!!
http://www.zerohedge.com/sites/defau...12_curve_0.jpg
And yes - these bank stocks are way over their skis relative to earnings expectations...
http://www.zerohedge.com/sites/defau...0112_wfc_0.jpg
http://www.zerohedge.com/sites/defau...0112_jpm_0.jpg
http://www.zerohedge.com/sites/defau...112_bofa_0.jpg

HEADS UP IMPORTANT TO READ UNDERSTAND AND WATCH IN THE FUTURE !!!

http://www.zerohedge.com/news/2017-0...ops+to+zero%29

Snippet:
One of the bigger, if unde- reported, stories to emerge from the various Fed speakers yesterday, is that Fed members, if maybe not Yellen herself, are actively contemplating the reduction of the Fed's balance sheet, and whether credibly or not, it launched not one but two trial balloon efforts to give those traders who are paying attention advance notice. The first one was when Philly Fed's Harker said that when rates hit 1%, the Fed will "need to look at unwinding its balance sheet"; several hours later St. Louis Fed's Bullard added that a "balance sheet rolloff may be better than aggressive hiking."

Overnight, that theme was noticed by various sellside analysts, who are now making a Fed balance sheet rolloff their base case for 2017, most notably the head of rates strategy at RBC, Michael Cloherty, who in a note previewing the Fed's balance sheet over the next year, says that "the Fed's balance sheet will start shrinking in Q4 of this year. Fed Chairs usually like to get major initiatives under way before they leave, and Yellen is likely to feel more strongly about that because some potential successors have talked about a relatively disruptive balance sheet reduction "

Here is the rest from RBC's Cloherty, who appears more concerned with the impact of such a rolloff on the MBS market rather than TSYs. We disagree, but we'll cross that bridge when Yellen does suggest that balance sheet reduction is indeed what she is contemplating.

Fed balance sheet outlook

We think the Fed's balance sheet will start shrinking in Q4 of this year. Fed Chairs usually like to get major initiatives under way before they leave, and Yellen is likely to feel more strongly about that because some potential successors have talked about a relatively disruptive balance sheet reduction (sales).

The Fed will not sell. When the Fed was buying they targeted the issues investors most wanted to sell, so liquidity was sufficient to do large volumes every month. But if the Fed sold, they could only sell what they own. And they primarily own a mix of high WALA mortgage pools and deep off-the-run Treasuries, which have a very different liquidity profile.

Instead they will stop reinvestment and mature their portfolio away. We look for an extended taper lasting almost three quarters.

We think the decline in the balance sheet will be relatively modest. While it is extraordinarily difficult to predict demand for reserves for LCR purposes, our best guess (stress guess) is north of $1T. On the last day of 2016, reserve balances probably got close to $1.75T. For LCR, averages are irrelevantsince banks always need to meet the LCR standard, it is the extreme low points in liquid assets like reserves that matter for bank balance sheet planning.

With more than $100bn of reserves disappearing every year as reserves get converted to other Fed liabilities (currency, Treasury deposits, etc.), the annual low in reserves is likely to hit that $1T level about two years after the runoff begins (timing depends highly on MBS prepayment rates).

Each dollar of Treasuries that the Fed allows to run off will boost the Treasury's financing need by one dollar. But there is a supply scarcity in the bill sector that suggests that a meaningful portion of the additional financing will be in very low duration bills that will have little market impact. There will be some incremental supply out the curve (probably hitting more in 2019), but it is unlikely to be enough to cause a major change in rates or swap spreads. The only issue would be a possible curve steepener if the Treasury decided to use the increase in auction sizes to extend the average maturity of the debt. Until we know more about who will be in the relevant seats at the Treasury, it is premature to speculate on this.

Once reserve supply and demand is balanced, the Fed will continue to allow its MBS portfolio to decline as it tries to move back to an all-Treasury portfolio. Declines in MBS would drain reserves, so we think the Fed will need to start buying Treasuries in 2020 to offset the slide in MBS holdings.

That means that the duration shock to the Treasury market will be small and short lived, while the duration shock to the MBS market will be much larger. This leaves us thinking the Fed portfolio story is primarily an MBS spread story.

When prepayments accelerate, it will cause duration to move off the Fed balance sheet to the market. This means Fed runoff of MBS will have a stabilizing effect on the market lower (higher) rates will cause increases (decreases) in prepayments that will force more (less) MBS duration to hit the market. However, there will be a lag before the securities leaving the Fed balance sheet will reappear in the market as new production.

COMMENTARY FROM BENJAMINIS: When they sell then who will buy JUNK ? Also reducing the FED Balance Sheet is inflationary. As I said before the REAL PLANS will be set starting January 17, 2017 in Davos Switzerland. We will not know then yet we will see within the months of February and March 2017 if new patterns and actions emerge and it is IMPORTANT to NOTE as of January 20, 2017 , one week from today there will be NEW GATEKEEPERS in place and ALL HELL or HEAVEN will break out. We might be at the start of the most incredible year in World History and that might not be so pleasant as things unfold and unwind and events that could not be predicted last year can be predicted this year as well mainly because of the changing of the guard.

My Forex FXCM UK $50,000 US Funds Demo Trading Account was opened by myself on December 20, 2016 as the record shows.

Today is the 24TH day since it was opened. I told everyone my goal was a ROI (Return on Investment) of 10% which is reasonable for me however I knew that if I said 20% perhaps my credibility might be in question. At the moment I have one Forex Trade still OPEN which is SHORT US 30 , 100 Units or $100,000 US Dollars for the contract. My risk is $1100 US Dollars on the Margin side since that is the capital required to leverage the 100 units SHORT US 30.

I expect to close it shortly and my balance ALL in cash will be OVER $62,000 US Dollars or a GAIN of $12,000 US Dollars.

We all can do the math. All of you also have done extremely well so I say Bravo. CLOSED !!! $62,044.83 US Dollars. My Day is Done !!!


Benjaminis


http://www.forexfactory.com/attachme...7&d=1484335593


ACCOUNT SUMMARY



Beginning Balance 0.00

Trading Commission-88.00

Rollover Fee-877.10

Profit/Loss of Trade 13,009.93

Deposit 50,000.00

Ending Balance 62,044.83

Floating P/L 0.00

Equity 62,044.83

Necessary Margin 0.00

Usable Margin 62,044.83



Notes:
"THIS IS A DEMO ACCOUNT WHICH IS TRADED WITH VIRTUAL FUNDS. NO REAL MONEY IS USED IN TRADING THIS ACCOUNT. Demo accounts are used primarily for education purposes, testing of strategies, and familiarizing traders with market movement and the FX Trading Station. There are inherent risks associated with online trading that may arise due to downtime, currency fluctuation and other risks associated with currency speculation. Only risk capital should be used when trading a real account."

Thank you all for a very productive and educational week.

Benjamin, thank you for the nice reading material, I will go through it over the weekend, also need to study some economics 101. lol

I took a $149 and $ 280 loss one my accounts today, hindsight is 20/20, but over all I had a very profitable week.

All we can try to achieve week by week is to become better, have more patients and to trade with discipline.

My goal for next week is to be more patient, waiting on confirmation for better entry point.

Everyone must have a nice weekend and find time to relax and spend time with family, next week is a brand new week with new opportunities.

http://seekingalpha.com/article/4036...ald-show-money

Hey Donald, Show Me The Money!

Jan. 13, 2017 3:11 PM ET




https://staticseekingalpha.a.ssl.fas...png?1453343736

Lawrence Fuller

Fuller Asset Management


Summary

The Donald has promised a lot, and markets have responded.

Now is the time to show investors the money, but there is no money to found.

As a result, expect the Trump rally to turn into the Trump fade.

President-elect Trump has made a lot of grandiose promises both on the campaign trail and since he was elected. The financial markets have responded, with stock prices soaring and bond prices falling, while consumer and business confidence has surged to multi-year highs. It is reasonable to argue that we have stolen all of 2017's potential equity market gains, packing them into November and December of last year. The Fed is quite adept at this practice of stealing forward demand for financial assets, but Trump is using words, whereas the Fed used monetary policy. Time will tell, but I am repeatedly reminded of this quote from our president-elect:

"We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We're going to rebuild our infrastructure-which will become, by the way, second to none-and we will put millions of our people to work as we rebuild it."

This all sounds great to me, as I am sure it does to you as well. The problem is that this wish list is as likely to come to fruition as me turning pro on the ATP tour and advancing to the semi-finals of the US Open at the ripe old age of 47. I'm a pretty decent player, but this just isn't going to happen. Regardless, financial markets have responded as though Trump's wish list is already underway, as can be seen by the performance of specific market sectors below:
https://staticseekingalpha.a.ssl.fas...08969_rId5.png

The stock market (NYSEARCA:SPY) has risen sharply by more than 6% while the sectors leading the way have been materials (NYSEARCA:XLB) with a gain of 7.5%, industrials (NYSEARCA:XLI) with a gain of 8.5%, and financials (NYSEARCA:XLF) with an outsized gain of more than 18%. At the same time, we have seen long-term Treasury bonds (NYSEARCA:TLT) fall by an approximate 7% and gold (NYSEARCA:GLD) decline by nearly the same amount.

The rationale behind these moves is quite easy to explain. Investors expect Trump to follow through on his promises. A significant increase in infrastructure spending will be a boon for the materials and industrial sectors. The intent to eliminate the vast majority of financial regulatory reform, namely Dodd-Frank, will lead to significant gains for the banks and investment firms on Wall Street. The boost in hiring and economic activity that will result from this fiscal and regulatory stimulus will drive interest rates higher, leading to losses in bonds. Lastly, the great certainty with which all of this will happen, now that Republicans control the Federal government, means that there is no reason to gravitate towards the safety of assets like gold.

Now, back to reality!
Trump's initial press conference held on Wednesday was a highly anticipated event. Yet, instead of hearing about the substance of his policy agenda, he simply filled the room with a lot of hot air. Hot air can only go so far when it comes to inflating risk assets, which is perhaps why the Trump rally has been gradually reversing course since the beginning of the year.
https://staticseekingalpha.a.ssl.fas...08969_rId6.png


The sectors that were leading the market following the election are now trailing the performance of the S&P 500, as bonds and gold outperform. This started well before Trump's press conference, and I expect it to continue. If Trump wants to stem this reversal, he is going to have to follow in the footsteps of Jerry Maguire, and "show me the money!"
https://staticseekingalpha.a.ssl.fas...08969_rId7.jpg


The problem is that there is no money. Additionally, a lot of the money out there is either being withdrawn or faces proposals that will withdraw it in the future. The Federal Reserve is withdrawing excess reserves from the banking system at an increasing rate, which is commensurate with its increases in short-term interest rates. The Fed is proposing three additional rate increases in 2017, which will lead to a much more significant reduction in reserves. These reserves have had a close correlation with the stock market over the past eight years, serving as fuel for financial assets. The decline of more than $200 billion over the past month is notable.
https://staticseekingalpha.a.ssl.fas...rId8_thumb.jpg


This combination of rising short-term rates and declining reserves also means that financial conditions are tightening, which does not bode well for consumer or corporate borrowing. The Fed is no longer showing us the money, and I think it intends to take what it can away from a potential spend-thrift Trump administration.

Trump has also proposed abolishing Obamacare despite having no plans for an alternative. I am no fan of this program, but it is important to remember that this plan was a tax CUT for millions of lower- to middle-income households, which is costing the federal government approximately $150 billion a year. If the federal government ceases to subsidize a similar program by this amount, it will effectively be a tax increase for those families who choose to retain their insurance. That will be a major headwind for consumer spending on other items. Is Trump going to show these families the money?
https://staticseekingalpha.a.ssl.fas...08969_rId9.png

Trump has proposed significant tax cuts for the middle-class electorate that was largely responsible for his election win, but after reviewing the various analyses of his tax plan, I don't see him showing any money to middle-class families, unless they pay exorbitant costs for child care. To the contrary, the majority of the benefits go to the wealthiest Americans. I am not addressing whether this is right or wrong for the purposes of this discussion, but rather what will lead to strengthening economic and market fundamentals. The reality is that tax cuts for the wealthy will be saved or invested while tax cuts for the middle class will largely be spent. Middle-class tax cuts will boost real (inflation-adjusted) income, real consumer-spending growth and the rate of real economic growth. What he and his Republican colleagues have proposed will not. He is showing the money to those who already have it.

As for his infrastructure boom, if it does happen, it will be far smaller than the $1 trillion advertised, and it will happen over a long period of time. That will dilute its impact. The $1 trillion is now $550 billion to be spent over 10 years, according to Trump's website. Since the Republican Congress is unlikely to show Trump the money, he is relying on private investors to fund new infrastructure projects. In order to incentivize investors, he has proposed offering them a tax credit as high as 82% of their investment. The problem is that investors typically require a revenue stream from a project, which greatly reduces the number of infrastructure projects that would be of interest to them.

Irrespective of the reality, consumer and business confidence has soared over the past two months on expectations of good things to come. Consumer sentiment is near decade highs, as can be seen below:
https://staticseekingalpha.a.ssl.fas...8969_rId11.png

Small business optimism realized its largest increase since 1980 in the month following the presidential election.
https://staticseekingalpha.a.ssl.fas...8969_rId12.jpg

This is great news, but optimism and confidence only go so far until you (Trump) show me the money! Based on this morning's retail sales report, you can't spend optimism or confidence. Retail sales saw no increase in December when we exclude auto and gasoline sales. This indicates there wasn't a whole lot of holiday gift giving unless it was a gas card or a new car. How about a nice dinner out on the town for your family or significant other? Apparently not, as restaurant sales declined 0.8% in the month, which was the largest decline in nearly a year. In fact, unless it was an online purchase, just about every category of discretionary spending declined, despite the reported 2.9% increase in wages for the month.

Of course, for those of us who follow real income, this decline is understandable. The rate of wage growth adjusted for inflation and the length of the work week has fallen to just 0.5%. This is why trend in core retail sales is still a negative one.
https://staticseekingalpha.a.ssl.fas...8969_rId14.png

I'm waiting to see if Trump actually "shows me the money," but my suspicion is that he has over-promised and will under-deliver. Therefore, I'm positioned for a decline in equities led by those sectors that have risen the most since the election. I have also added to my gold position and am looking for a decline in long-term interest rates that brings the 10-year Treasury yield closer to 2%.


Disclosure: I am/we are long GLD, TLT.


I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


Additional disclosure: Lawrence Fuller is the Managing Director of Fuller Asset Management, a Registered Investment Adviser. This post is for informational purposes only. There are risks involved with investing including loss of principal. Lawrence Fuller makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by him or Fuller Asset Management. There is no guarantee that the goals of the strategies discussed by will be met. Information or opinions expressed may change without notice, and should not be considered recommendations to buy or sell any particular security.

https://dailyreckoning.com/nomi-prin...y+Reckoning%29

https://dweaay7e22a7h.cloudfront.net..._3-650x360.jpg
https://dweaay7e22a7h.cloudfront.net...raigWilson.jpg
BY CRAIG WILSON
VIDEO POSTED


JANUARY 13, 2017


Nomi Prins: Big Banks Already Failing Stress Tests


Nomi Prins joined Jason Burack on the Wall Street For Main StreetPodcast to discuss the impact of a strong US Dollar on the global economy and what kind of damage it could cause big banks that are already failing stress tests. Wall Street For Main Street takes on themes of finance, investing and the economy and offer a natural setting for important, independent discussions from economic insiders offered from Nomi Prins and others. The conversation delves into what to expect in the political and economic year ahead for 2017.


When asked what type of damage could a strong U.S dollar do to the global economy she noted, “First, the fact that the U.S dollar is as strong given how long the Federal Reserve has completed quantitative easing (QE) policies and bought securities is very troubling in general because it indicates that the rest of the world is far weaker on a relative basis.”

“It also indicates that is it not necessarily a policy that drives dollars stronger. What’s occurring is, outside of the U.S for example, in emerging market countries, they have had funding that has been denominated in dollars over the years.”

Nomi Prins a former managing director on Wall Street. Prins’ is currently working on her latest book, The Artisans of Money which is set to be out later in 2017. Before stepping out of the world of Wall Street, she worked at Goldman Sachs and Bear Stearns, among other banking giants.

“Increases in funding from 2014 and 2015 because of the expectations that rates would rise in the U.S and money would be more expensive to come by in terms of lending opportunities. These have leveraged themselves in debt that will have to be paid in U.S dollars. We saw this in the 90’s with major debt crises, in particular within emerging markets like Latin America. That was based more on government debt that was owed to the United States and U.S private banks.”

“Now what we have is a situation where a lot of the debt is corporate in nature which makes it a different type of debt. That is still a debt denominated in dollars, and the more expensive it because the more difficult it is to repay. What we are seeing is an increase in global corporate defaults. We have had as many corporate defaults in 2016, which were 40% increase over 2015, as we have had in any year since the global financial crisis. That trend is upward. That is going to feed into the general financial fabric of the world and markets outside of the U.S.”

When asked about the failed central bank policies that seem to continually get doubled down in efforts to curb economic problems the author remarked, “Whatever aspect you choose to look at the financial system, it is being bolstered by fabricated money – what I call artisanal money. These institutions whose leaders are appointed, and not even elected, have tremendous impacts on economies globally. On a coordinated level, they have become much more powerful. The Fed started this when bringing rates down to zero.”


“The coordinated efforts, such as currency swaps, are backdoor ways to provide, effectively, money to an external central bank. The idea on the surface is to purchase and sell currency, but the reality is that you are providing capital and liquidity that is fabricated. It is not earned by companies, it’s not even produced from tax revenues. It is simply fabricated and has an artificial impact on markets and economies. It is simply going from balance sheet to balance sheet of central banks. It is a way to ensure that government has the appearance of being in control of their economies.”


When asked about the threat of big banks and the stress tests involvement in attempting to curb financial crisis, “If everything’s fine, except for one factor going wrong they will have enough capital to handle it. A crisis is not one “little thing” going wrong and banks need enough capital to protect themselves. That being said, last April 7 out of 8 banks in the U.S under review basically failed their stress tests. Some failed both tests given, but 7 out of 8 banks are not doing well enough at the moment to survive on their own.”


Mr. Burack in discussion regarding the banking climate and the liabilities prompted Prins’ to remark, “The only reason it the financial conditions don’t appear to be hurting us everyday is because there hasn’t been an actual, acute additional crisis. Just the fact that these cheap money policies have existed for so long indicates that the financial system does have the ability to go into crisis mode, and quite easily. That is a problem.”


“Whether you are a conservative or liberal, when a market crashes and your retirement fund gets pillaged by lower values because the values were tossed up by an artificial means, that impacts everyone. That is part of the problem because it is global. People can feel that inherent fragility in the system.”

To catch the full conversation on banks failing stress tests, the global financial outlook for 2017 and more with Nomi Prins together with Jason Burack at Wall Street For Main Street, CLICK HERE.


Kind regards,
Craig Wilson, @craig_wilson7
for the Daily Reckoning


Ed. Note: Sign up for your FREE subscription toThe Daily Reckoning, and you’ll receive regular insights for specific profit opportunities. By taking advantage now, you’re ensuring that you and your family will be financially secure for the future. Best to start right away – it’s FREE.
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http://www.acting-man.com/?p=48343#more-48343

Wheres the Outrage?
January 12, 2017 | Author Roger Barris





Blind to Crony Socialism
Whenever a failed CEO is fired with a cushy payoff, the outrage is swift and voluminous. The liberal press usually misrepresents this as a hypocritical jobs for the boys program within the capitalist class. In reality, the payoffs are almost always contractual obligations, often for deferred compensation, that the companies vigorously try to avoid. Believe me. Ive been on both sides of this kind of dispute (except, of course, for the failed bit).

http://www.acting-man.com/blog/media..._parachute.jpgPeople are usually struck by the seeming injustice of CEOs running companies into the ground and then getting paid obscene amounts in the form of golden parachute type good-bye presents. Often there is no other way to get rid of a bad CEO though if his or her employment contract guarantees a large termination benefit, the company may have little choice in the matter. As a rule, private shareholders are bearing the cost of such transactions, and they are in this position voluntarily (after all, they could sell their shares or vote against generous CEO payment packages at shareholder meetings). We realize of course that in the age of crony socialism, one usually has to judge such things carefully on a case by case basis. Still, it is a far cry from the misuse of taxpayer funds, which are appropriated by coercion and offer those bearing the costs no opportunity to opt out.


So wheres the liberal outrage with a story like the pension swindle in El Monte, California? This is about a dying town, with a per capita income of $10,316 and a quarter of its population below the poverty line, that is paying a pension to one of its retired (at the age of 58) city managers of more than $250,000 per year. Adjusted for inflation. With medical for him and his wife. And survivorship benefits. And to which he contributed nothing.
Or another retired city manager who collects $216,000 per year, allowing him to take some things off his bucket list such as golfing at the Old Course at St Andrews. And it looks like the public is paying for more than just green fees. His retirement came shortly after he was swept up in an anti-prostitution sting operation.
More broadly, with Trumps cabinet nominations and his presidency, there is currently an enormous amount of discussion about conflicts of interest in the public sector. All of these discussions completely ignore the most flagrant example.

http://www.acting-man.com/blog/media...toon-jan13.jpgSqueezed by cronyism

Public Sector Union Thugs
Many politicians, especially Democrats, get elected with huge support from public sector unions. When it comes to negotiating the compensation of public employees, the unionists sit, in essence, on both sides of the table. The politicians buy the support of the unions with public money.
The favorite coinage for this corrupt bargain is pension and other retirement benefits since the real cost of the bribery is easily obscured with bogus assumptions, especially about expected investment returns.[1] The end result is public pension plans that are underfunded by trillions and the occasional bankruptcy in a place like Detroit.

http://www.acting-man.com/blog/media/2017/01/seiu-2.jpgThe costs of surreptitious vote buying via the detour of public sector unions supporting politicians, who then provide enormous taxpayer-funded benefits to union members have become increasingly obvious to the tax cows in recent years. Ever since the bubble era has begun to be frequently shaken by financial crises, many pension funds had to abandon their fictitious return assumptions. Suddenly it became clear that maintaining the generous benefits and pensions of a great many civil servants would require vast sacrifices. Alas, those asked to do the sacrificing can only dream of receiving even remotely similar benefits.

This is such a glaring conflict that I have tried to find if there are any laws against it. So far, I have found nothing. I have, however, found an Atlantic article by a clearly left-wing journalist who started off very sympathetic to public unions but who had a Damascene moment when he was a reporter in a small California town:

Over the next couple years, I nevertheless came to see the several downsides of the unions influence. Contract negotiations were held in private, with the City Council representing Rancho Cucamonga residents and union reps representing the firefighters. This posed a structural problem, for the interests of elected officials werent particularly aligned with the public, whereas the union negotiators had a personal stake in whatever compensation package was adopted.

To be more specific, if a City Council member behaved in a fiscally irresponsible manner, it wouldnt matter for at least a few years, by which time ambitious pols would have moved on to a county post or the state legislature. And lavish compensation packages could easily be obscured by combining what appeared to be a reasonable salary, the only number the public was likely to hear, with exorbitant pay for overtime or over the top fringe benefits.

But if a City Council member crossed the fire union? The consequences were immediate. As soon as the next election rolled around, theyd face a well-financed challenger. On his campaign mailers, hed be photographed flanked by handsome firefighters. On weekends, friendly guys in fire-coats would go door to door on behalf of their would be champion. Were very concerned that Councilman X is endangering public safety by refusing to do Y, they might say. Or else, Challenger Z is a crucial ally in our effort to make this city safer. The incentives were clear.

Conclusion
The left goes nuts when a private company is contractually obliged to use its own money to pay off a failed CEO. Or the leftists dust off their little-used copies of the Constitution and start quoting the Emoluments Clause when there is the prospect of a foreign visitor to the presidential inauguration taking a bag of peanuts from the minibar in a Trump hotel.
But when left-wing politicians collude with their public union supporters to rack up unpayable pension bills in the trillions, we get crickets.
So I askwheres the outrage?

http://www.acting-man.com/blog/media...t-cat-boss.jpgWell at least someone is outraged. Sorry, boss but you actually have no say in the matter.

Image captions by PT
Footnote:
1] Probably even accurate accounting would not be sufficient for voters to apply effective control. Voters only really pay attention when something hits their wallets through taxes. Therefore, they are unlikely to control future promises even with accurate information. What is required is 100% pre-funding of these liabilities on a completely arms-length basis, in cash and when they are granted. Or, as the private sector is increasingly doing, the conversion of defined benefit to defined contribution pension plans.

Roger Barris is an American who has lived in Europe for over 20 years, now based in the UK. Although basically retired now, he previously had senior positions at Goldman Sachs, Deutsche Bank, Merrill Lynch and his own firm, initially in structured finance and latterly in principal and fiduciary investing, focussing on real estate. He has a BA in Economics from Bowdoin College (summa cum laude) and an MBA in Finance from the University of Michigan (highest honors).

Good Morning Everyone

One of the things that I want to do is to improve communications as not everyone posts and those that do I sometimes have things to share with them.

I was thinking out loud looking for your feedback now, on the idea about how to do this most effectively

If anyone who has been trading the FXCM UK $50,000 US Funds is around either today or tomorrow please take a SCREENSHOT of your FXCM UK account so we can both review it by my adding my comments. There is no results that are bad as the whole idea is to learn properly without any fear of loss.

This is also not a competition so whatever your numbers that is perfect for you.

Keep in mind that 95% of all Forex Traders would love to be able to reach 5% a month and even the 5%, do not constantly reach this number.

Our method of Forex trading if you have the right abilities, would allow you to really do good trading Forex and the fact that the results here by some of the more involved Forex traders has been amazing in the 42 days or six weeks since I started this thread on December 3, 2016 confirms my thinking.

It has been the start of a great journey for myself. When I teach as I trade it definitely improves my own Forex trading as well and having the additional skills available to all that participate by the excellent charts produced by wayfarer and KeepCalmfx is another EDGE for all of us.


Benjaminis

Benjaminis, привет! Вы можете торговать в это время, когда были рецессия в Соединенных Штатах. Что сценарий на фондовом и рынке облигацийкак ожидается? Какие активы во время спада растут и которые падают? http://www.marketoracle.co.uk/Article57832.html
[Приложить] Screenshot_65.png; 2140336 [/ приложите]
Benjaminis ,Thanks to you, I have learned so many new things! Never before selling shares and bonds. It is very difficult when a lot of new information, but I try. God bless you!

wayfarer

G-D Bless you my Friend. It has been my pleasure to help and you also have helped me. We will work together and profit together. Keep up your good work.


Benjaminis

http://www.financialsense.com/michae...tion-challenge

Commentary From Benjaminis: This article fairly represents the reality. Read it slowly and it would be a good idea to print it out for future reference. I will just post the most important parts in three snippets. You can read the rest of the article and if anything needs to be understood in any way please post your questions so they can be answered. Have a nice weekend.

Snippet One:
I challenge economists Brad DeLong, Larry Summers, Ben Bernanke, Paul Krugman, Steve Keen, Michael Pettis, Albert Edwards (and anyone else), to respond to this post.

The Financial Times article USs flawed economic recovery divides Trump and Obama supporters have a pair of interesting charts on income growth and income inequality. Here is the first.

Income Growth

http://www.financialsense.com/sites/...quality-11.png

That is an interesting, albeit extremely biased chart. Had the chart broken out the top .01% instead, it is highly likely even the top 1% might have looked weak by comparison.


Of course, the bulk of the gains went to the top 1%, as it should be. Were they supposed to go to zero-skilled teenagers removing baskets from automated fryers at McDonalds?

Real Household Income
Heres a look at the situation from an unbiased perspective courtesy of Doug Short at Advisor Perspectives: Monthly Median Household Income Since 2000.

http://www.financialsense.com/sites/...stagnation.png

Snippet Two:

At the median level, household income rose from $40,804 to $58,221. That’s a jump of 42.7%.
But inflation ate up the entire increase, and a tiny bit more, as the next chart shows.

http://www.financialsense.com/sites/...016-12-30b.png

The median household is actually worse off than 17 years ago. And many would dispute the alleged CPI, making matters even worse.
It’s safe to assume that at least 50% of households are worse to much worse off than they were 17 years ago.

Snippet Three:

Pin the Tail on the Donkey
At no point does either DeLong or Summers pin the tail on this donkey. Neither can, because income inequality is a symptom of the problem.


That problem started the moment Nixon closed the gold window. The event is now described as “Nixon Shock”.

Indeed it was. Unencumbered by a need to redeem gold, credit exploded.
Credit Market Before and After Gold Window Closed

http://www.financialsense.com/sites/...ket-debt-3.png

Gold Window Synopsis

1. Total credit exploded from $1.7 trillion to $63.5 trillion at the end of 2015.
2. To service that growing pile of debt, the Fed had to keep slashing interest rates.
3. Instead of allowing consumers to benefit from technological advances that are inherently price deflationary, the Fed sought to increase inflation. This is to the benefit of the banks and already wealthy.
4. A policy of 2% inflation coupled with no restraints on trade deficits (thanks to the removal of the gold window), encouraged the outsourcing of jobs.
5. After the dot-com bubble burst in 2001, the Greenspan Fed stepped on gas blowing the biggest housing bubble on record. Then the Fed bailed out the banks, the asset holders and the wealthy. This chain of events left the median person being worse off than before.
6. Given that executive pay is based on performance, rising share prices further benefited the top 1%.
7. Fed policy itself, coupled with a rampant expansion of credit thanks to Nixon closing the gold window is totally responsible for the rising income inequality from 1971-present.

Attacking Symptoms
Instead of attacking the symptoms of the problem, as Summers and DeLong do, let’s be honest about the real problem. Let’s also be honest about the alleged scourge of deflation.


My Challenge to Keynesians “Prove Rising Prices Provide an Overall Economic Benefit” has gone unanswered.


There is no answer because of history and logic both show that concerns over consumer price deflation are seriously misplaced.

The BIS did a study and found routine deflation was not any problem at all.
“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the BIS study.
For a discussion of the BIS study, please see Historical Perspective on CPI Deflations: How Damaging are They?


The final irony in this ridiculous mix is central bank policies stimulate massive wealth inequality fueled by soaring stock prices.


Grasping Reality With Both Hands
Delong’s blog is entitled “Grasping Reality With Both Hands“. It would behoove, Delong, Summers, and Ben Bernanke to do just that.


A good starting point is “why” income inequality is rising as opposed to investigating ridiculous wealth-transfer schemes and government stimulus projects in a fool’s mission to fix a problem that Summers, DeLong, Bernanke, and Krugman all fail to understand.


Brad DeLong, Larry Summers, Ben Bernanke, Paul Krugman, Steve Keen, Michael Pettis, and anyone else, have at it. Where am I wrong?


COMMENTARY FROM BENJAMINIS: Without doubt this extremely informative and brilliant article explains all the parts of the puzzle and once you understand why all this historically and in other ways leads all of us to this moment in time. We start a NEW ERA completely unpredictable on January 20,, 2017.

This has zero to do with Donald J. Trump and his cabinet. They are only acting as the CATALYST for MAJOR changes in our World that we are all part of so in closing please trust me when I tell you that this article once fully understood will let you be one of the few to understand the REALITY of one of the most INFAMOUS decisions ever made by a President and his Government.

August 15, 1971 will go down in HISTORY , as the MAIN EVENT that started this incredible downfall of a Nation and affected all other nations of the world.

The next Link is to a source that is definitely not mainstream yet is credible and someone that I know along with the others mentioned in his article.
The information is meant more for people to become aware of what is afoot and it does have direct affect on all of us and it has already happened in India as recently as November 2016. I will post the link and have commentary afterwards.

https://dollarvigilante.com/blog/201...rt-cities.html

Snippet:
From Scandinavia to Amsterdam to India and elsewhere, the trend of going cashless is gaining traction.

We have been covering the shortcomings of what is rightly called the War On Cash here at TDV for a while now and have shown just how negative the effects can be on an unsuspecting nations people.

Chandigarh, India, which is the capital of the northern Indian states of Punjab and Haryana, is like one of Indias labrats. Indian officials are working hard toward making it into Indias first cashless city.

This initiative is part of the Prime Minister of Indias call for state governments to begin developing what hes calling smart cities.

That means cities attached to the latest internet technology. However there is nothing intelligent about his plan.

One of the major changes being made to work toward that objective was the insistence of having all bills paid electronically at government offices within the city.

Similarly, in Panjim, the capital of Goa, India, the local government is attempting to incentivize the locals into paying digitally by offering them discounts on train tickets and other public transportation services if they pay electronically.

This is an extension of the ongoing cash battle which has been going on in India since November when Modi announced he was going to replace the 500 and 1000 rupee banknotes. However the government has not started replacements, only ensured the removal.


What followed the eradication of Indias largest denomination notes was a constricted Indian economy, particularly among the middle and lower classes who rely predominantly on cash transactions to conduct daily business.

There are a myriad of problems associated with this. Many street vendors, rickshaw drivers, and other small time merchants cannot afford the card readers necessary to conduct the transactions electronically.

In some cases the consequences have been starvation, suicide, and the inability to pay for medical expenses because of lack of access to funds or because of how difficult it is to exchange the 500 and 1000 rupee notes for lower denomination bills.

Also in Europe, in places like London, many stores and restaurants have stopped accepting notes or coins for payment and only allow their customers to pay with plastic.

Its becoming common for Londoners to treat people using cash as second class citizens. In other words, it is becoming unfashionable to pay with cash according to the status quo.

The same is true for the people of Sweden, particularly in the cities of Stockholm and Gothenburg. Which is ironic considering that in 1661, the Scandinavian monarchy became the first country in the world to issue paper currency.

In Sweden this had forced people into storing their cash in bank accounts that come with negative interest rates - yes, the banks are charging them to save their money rather than rewarding them with positive yielding interest.


In Amsterdam, the homeless, many of whom survive by selling magazines, are increasingly hard pressed to find people willing to pay in cash as well. The problem is that even if the homeless had cheap cell phones with QR readers - which Amsterdam has talked about helping the homeless community to obtain - they still dont have the bank accounts necessary to receive the payments.

Then there is Uruguay which doesnt get much attention, but this small South American country was among the very first to announce it was getting rid of at least some cash transactions. Unlike some other counties, Uruguays cash reduction was couched in terms of helping the poor.

Soon the country plans to implement bank accounts for all payroll payments. It is supposedly doing this in order to make sure even the very poorest have bank accounts. In fact, this is not going to do much to help very poor people because they dont have jobs to begin with. But it sounds good on paper.

All in all, the elimination of cash is being done under the guise of helping to combat terrorism, white collar crime, tax evasion, and criminals from hiding behind untraceable cash transactions.

Of course, the reality is that without cash, governments and banks gain the ability to run economies like totalitarian police states - tracking every transaction and parasitically siphoning wealth via income tax and other forms of taxation.


This is all part of a UN backed, globalist movement towards smart cities where people will own nothing and live in small boxes and everything will be transacted digitally via the government.

About the Author

Anarcho-Capitalist. Libertarian. Freedom fighter against mankinds two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the worlds freedom, investment and gold conferences including his own, Anarchapulco, as well as regularly in the media including CNBC, Bloomberg and Fox Business.

Join us this February 24th in beautiful Acapulco, Mexico for the annual TDV Internationalization & Investment Summit where people like G. Edward Griffin, David Morgan, Bix Weir, Roger Ver and many others will give their best analysis and recommendations on how to survive and profit during these perilous times.

COMMENTARY FROM BENJAMINIS: We see and understand what is happening in front of our eyes on a daily basis. I will link here an article on the War on Cash so it will be more clear to those that need to see te complete picture in order to be aware and take whatever steps are in your best interests.


The War on Cash Just Escalated

I’ve been warning investors for months about the war on cash.

This war has been in full swing in Europe and the U.S. for a long time. Governments plan to use negative interest rates, confiscatory taxes and other techniques to rob savers of their wealth. In order to do this, they have to force savings into digital accounts at large government-controlled banks.


As long as savers can hold cash, they can avoid many of these confiscation techniques. Therefore, governments must eliminate cash.

The latest battleground in this war is India. In a shock announcement on Nov. 8, India declared that 500- and 1,000-rupee notes are no longer legal tender.

Imagine that — the money in your wallet or purse is instantly made worthless by government decree. That’s what happened.

There were limited exceptions for hospitals and gas stations. Naturally, gas lines formed everywhere, and some people rushed to hospitals to prepay for future medical care with now worthless bank notes. The other exception to worthlessness was if you deposited the notes in the bank.

There you would receive “digital credit” in your account. Of course, the tax man was waiting at the bank to ask you where you got the money. Those without an acceptable answer can expect trouble from the Indian Revenue Service. this is not the end of the war on cash. It’s just the beginning.

India’s decision is having devastating ripple effects in the Indian economy and the market for gold. The consequences of the decision are both appalling and encouraging — appalling because they show governments’ ability to destroy wealth, and encouraging because they show the ingenuity of individuals operating under the thumb of an oppressive government.

One immediate consequence is that paper money began trading at a discount to face value. In plain English, you might be able to sell your illegal 1,000-rupee note to a middleman for 750 rupees in smaller denominations. You would get legal tender for your worthless 1,000-rupee note.


This is the first time I’ve ever seen cash trading at a discount (although I did predict this development in Chapter 1 of my new book, The Road to Ruin,released Tuesday).

By Friday, Nov. 11, the entire banking system in India was beginning to run out of cash and alternative forms of payment such as gold and barter were emerging. Don’t think of this as something that happens only in poor countries. Similar scenes will play out in the U.S. and Europe as elites become more desperate to take your money.

There’s a lot else going on that is aimed at destroying your wealth to solve the global debt problem. I write about these developments in issues of Strategic Intelligence.


The global elites are using negative interest rates to do the same thing as inflation — make your money disappear. One way to avoid negative interest rates is to go to physical cash. In order to prevent that option, the elites have launched a war on cash.


The war on cash has two main thrusts. The first is to make it difficult to obtain cash in the first place. Coming back to the U.S., banks will report anyone taking more than $3,000 in cash as engaging in a “suspicious activity” using Treasury Form SAR (Suspicious Activity Report).


The second thrust is to eliminate large-denomination banknotes. I just described what’s happening in India. The U.S. got rid of its $500 note in 1969, and the $100 note has lost 85% of its purchasing power since then. With a little more inflation, the $100 bill will be reduced to chump change.

The war on cash is old news, but it’s picking up. Earlier this year the European Central Bank announced that they were discontinuing the production of new 500 euro notes (worth about $575 at current exchange rates). Existing 500 euro notes will still be legal tender, but new ones will not be produced.

This means that over time, the notes will be in short supply and individuals in need of large denominations may actually bid up the price above face value paying, say, 502 euros in smaller bills for a 500 euro note. The 2 euro premium in this example is like a negative interest rate on cash.

The whole idea of the war on cash is to force savers into digital bank accounts so their money can be taken from them in the form of negative interest rates. An easy solution to this is to go to physical cash.


Yet if physical cash becomes scarce (or nearly worthless due to inflation), savers may pay a slight premium for large-denomination notes. Your premium disappears because the note pays no interest. The elites have actually figured out a way to have negative interest rates follow you from digital accounts to paper money.


Another solution to negative interest rates is to buy physical gold. But if the government has a war on cash, can the war on gold be far behind? Probably not.
Governments always use money laundering, drug dealing and terrorism as an excuse to keep tabs on honest citizens and deprive them of the ability to use money alternatives such as physical cash and gold. When you start to see news articles about criminals using gold instead of cash, that’s a stalking horse for government regulation of gold.

Guess what? An article on the topic of criminals using gold just appeared this May in Bloomberg. This is one more reason to get your physical gold now, while you still can.


As if inflation, confiscation, and negative rates weren’t enough, the global elites are coordinating a new plan for global taxation. As usual, there’s a technical name for global taxation so non-elites won’t understand the plan. It’s called base erosion and profit shifting, or “BEPS.”


The BEPS project is being handled by the OECD and the G-20, with the IMF contributing technical support. If you’re interested in BEPS, there’s an entire website devoted to the global taxation plans and timetables.


The website is worth a look. To paraphrase that famous line attributed to Trotsky, “You may not be interested in BEPS, but BEPS is interested in you.”


The global elite plan doesn’t stop there. There’s also the climate change agenda led by the United Nations. This agenda goes by the name United Nations Framework Convention on Climate Change (UNFCCC).


The science of climate change is a sticky topic. It’s enough to know that climate change is a convenient platform for world money and world taxation.
That’s because climate change does not respect national borders. If you have a global problem, then you can justify global solutions. A global tax plan to pay for global climate change infrastructure with world money is the end game.

Don’t think that climate change is unrelated to the international monetary system. Christine Lagarde almost never gives a speech on finance without mentioning climate change. The same is true for other monetary elites. They know that climate change is their path to global financial control.


That’s the global elite plan. World money, world inflation and world taxation, with the IMF as the central bank of the world, and the G-20 Leaders as the Board of Directors. None of this is secret. It’s all hiding in plain sight.


This will be playing out in the next few years.

Regards,
Jim Rickards
for The Daily Reckoning

http://wolfstreet.com/2017/01/14/fro...ed-homeowners/

Snippet:
“Poisoned offers” to settle, backed by the government.
By Don Quijones, Spain & Mexico, editor at WOLF STREET.


Spain’s biggest banks, it seems, will never learn — not even when the highest court of the land, the European Court of Justice (ECJ), rules against their dodgy practices.


The ECJ ruled just before Christmas that Spain’s major banks would have to refund all the billions of euros they had surreptitiously overcharged borrowers as a result of the so-called “mortgage floor-clauses” that were unleashed across the whole home mortgage sector in 2009 [A Nightmare Before Christmas for Spanish Banks].


These floor clauses set a minimum interest rate, typically of between 3% and 4.5%, for variable-rate mortgages, which are a very common mortgage in Spain, even if the Euribor dropped far below that figure. In other words, the mortgages were only really variable in one direction: upwards! While this is not illegal, most banks failed to properly inform their customers that the mortgage contract included such a clause.

The ECJ’s ruling was an emphatic victory for the almost 1.4 million borrowers who had been fleeced out of thousands of euros, many of whom have spent years trying to recoup the funds through Spain’s creaking legal system. Yet even now, the banks, many of which are struggling against a backdrop of negative interest rates and tightening margins, seem loath to part with the cash.

The president of Spain’s sixth biggest bank, Josep Oliu, today called the ruling against the bank’s floor clauses an “attack against the banks,” likening claimants to “roguish swindlers.” His bank, Sabadell, has been accused of pressuring its mortgage customers to sign a “pact of silence,” by which the customers, knowingly or not, pledge never to speak publicly about the conditions of their mortgage — not even to their lawyers — and in return the bank removes the floor clause from the mortgage, without reimbursing a single cent of what it owes.

Even today, with the law firmly on the borrowers’ side, “poisoned offers” continue to proliferate, warns consumer association Facua-Consumidores en Acción.



“It was entirely predictable that the same entities that had shafted consumers out of millions with their abusive mortgage contracts would try to do the same despite the fact that the European Court of Justice has ruled that they must reimburse absolutely all the money they have overcharged customers,” said Facua’s spokesperson, Rubén Sánchez.

Some banks are pressuring customers to sign documents seemingly designed to strip them of their rights to take the banks to court while reimbursing just part of the money they’re owed.

As usual, the banks have the Rajoy government firmly on their side. At first his coalition government considered passing a law that would have forced all the banks to reimburse all the money they had overcharged customers, as the ECJ had ruled. Unsurprisingly, such an approach was firmly opposed by the banking sector and was duly shelved.

The government then came up with a much more bank-friendly offer that included a voluntary, non-binding arrangement, which all big banks tend to love. However, the proposal was deemed too lenient by the coalition government’s “socialist” faction, which fears being seen by voters as coming down too softly on the banking sector, especially at a time when social-democratic parties are fading into irrelevance all over Europe.

In the latest offering, which could be enacted by Royal Decree as early as Saturday, the banks are not obligated to reimburse affected customers, but merely to enter into bilateral negotiation with them. The two sides will have a maximum period of three months (well over double the initial 36 days tabled) to reach a mutually satisfactory arrangement.

If, after that time, the customer is still unsatisfied, he or she can launch legal action against the bank. However, if in the end the amount awarded is less or equal to the amount initially offered by the bank, it is the customer that must cover the legal costs.

The problem with such an approach is that it treats the banks and their customers as equals, says Fernando Herrero, the secretary general of Adicae, an association representing financial end users. It’s a ludicrous proposition given the vast gulf in financial knowledge and expertise of the two sides, not the mention the fact that for the banks “negotiating means flagrantly deceiving the consumer, signing away his or her rights.”

The new proposed legislation has two main goals: to prevent the collapse of a major, cash-strapped bank (such as, say, this one) from the pressure of having to reimburse all its customers all at once, while also reducing the strain on Spain’s already over-burdened judicial system. According to Herrera, the government hasn’t even bothered to contact consumers or their representatives; “it only liaises with the banks.”

And it tells: the government’s new proposal will allow banks to repay customers not only in cash, which will be the most heavily taxed option available, but also by any other “equivalent means.” That apparently includes offering customers “financial products” (subordinated bank bonds, anyone?) of the equivalent value of the money owed, or the possibility of reducing the interest or principal payable on the mortgage, which will have a much less destructive short-term impact on the bank’s balance sheets.

Banks will also be able to offer to swap a customer’s variable mortgage (with floor clause) for a fixed rate one. The consumer association OCU has advised consumers to reject these types of offers, many of which include clauses preventing signatories from undertaking future legal action against the bank in question.


Whatever happens in the coming months, one thing is certain: regardless of what EU law may hold, the banks will do whatever they can to ensure that they refund as little as possible of the billions of euros they surreptitiously overcharged their customers. And they will have the government’s consent throughout. By Don Quijones, Raging Bull-Shit.


The bank-bailout business rages on. Read… UBS Warns: Spain’s “Most Italian Bank” Runs Out of Options

http://www.birchgold.com/news/fed-pr...ba3e4-74825921

Snippet:
How the Fed May Step In to Protect Corporations from Americans’ Rising Wages

January 13, 2017 Birch Gold News


http://www.birchgold.com/wp-content/...fed-hike-7.jpg
From Birch Gold Group
The Federal Reserve’s plan for three small and “gradual” rate hikes in 2017 is already worrying analysts, but newly released minutes from the central bank’s December meeting and insight from recent job data reveal that it might hike rates faster than expected. An uptick in labor markets and wages threatens to put big businesses at a disadvantage, and the Fed may use interest rates to protect them – all at the expense of American workers.


Why the Fed Favors Corporations Over Workers

The Fed has a vested interest in protecting the economy’s biggest drivers: big businesses and corporations. In the eyes of Fed officials, workers are a renewable commodity to be managed and manipulated, but corporations are finite assets to be nurtured and grown.


From the Fed’s perspective, America’s millions of underemployed and unemployed individuals can bounce back if/when the private sector starts generating sufficient demand in the labor market. But once a corporation dies, it’s gone for good.

That’s why workers take a back seat to big businesses in today’s economy.

But it’s this mindset that could severely hurt the American public.

Playing the Inflation Game
The Fed keeps a close watch on the relationships between three core metrics to gauge the pressure being exerted on large businesses, and to subsequently guide the speed and frequency with which they increase interest rates. They are:

1. Wage inflation – how fast salaries are growing.
2. Labor market tightness – how many employees are actively working and contributing to corporate overhead.
3. Consumer price inflation – how much money companies can charge for their goods and services.

The Fed wants to keep consumer price inflation higher than wage inflation; exactly how much higher depends on labor market tightness.

Put simply, the Fed favors corporations by working to keep market prices for their goods and services higher than their personnel costs, which rise with wage inflation and labor market tightness.
Corporate profits become threatened if the economy “overheats” from a rapid increase in wages and employment, but the Fed can use rate hikes to stall the economy and keep big business from getting squeezed.


Can We Expect Rate Hike Surprises in 2017?
The Fed is getting nervous.
Since 2014, wage inflation has been making significant strides compared to consumer price inflation. And as we move into 2017, the labor market is tightening more than expected.

Minutes released on Jan. 5 from the Fed’s meeting in December imply there’s a strong possibility Fed officials could yank the economy’s leash with more aggressive rate hikes:

…Several members noted that if the labor market appeared to be tightening significantly more than expected, it might become necessary to adjust the Committee’s communications about the expected path of the federal funds rate, consistent with the possibility that a less gradual pace of increases could become appropriate…

Even under ideal circumstances, Fed intervention would create a frustrating economic slowdown. And at worst, Fed officials could lose control and push the economy far further than intended.

In the event that the economy is pushed too far, buying protection from the Fed’s runaway train today – through real assets like gold – may prove be a prudent choice tomorrow.

Hi Benjamin

Here is my report.

I am reading my Phoenix Capital Research report of 1-4-17 and Graham Summers recaps the $USD / YEN pair and he points out the tick for tick correlation. Here is the first chart symbols he is showing. (UUP:FXY) then he shows how the reverse of the Yen / USD pair has collapsed Gold. All this between November 8, 2016 and January 13, 2017. The chart symbol is (FXY:UUP).

Here is the chart for http://charts.stocktwits.com/product...94.?1472577562 one of them. I suggest that wayfarer or KeepCalmfx or anyone looking at this review and we might want to follow these correlations. He also points out that the correlation has been FLAT since December 17, 2016 and in the Big Picture he shows that the Yen/$USD pair is now at MASSIVE Multi-year resistance. There is one more correlation that he uses and it suggests that USD/JPY could go back to 105.000 very quickly IF , the US 30 reverses. These are all new symbols for me so while I can read and understand them the view from the technical side is important. Here is the chart symbol. ($USD:$XYJ)

http://www.marketoracle.co.uk/Article52969.html

This next chart is a combo chart that I believe I only showed you once before back in 2014. This combo chart has the $USD:$XJY ratio on top and gold on the bottom. What this chart tells us is that when the US dollar is out performing the $XJY gold is generally weak. As you can see the ratio chart on top is just now hitting a brand new high while gold on the bottom is almost hitting a new low for its bear market on a monthly closing basis. The two red arrows shows where the ratio chart and gold came together in 2011 which was the start of the bear market for gold.
USD:XJP Monthly Chart
http://www.marketoracle.co.uk/images...eflation-5.png
Next lets look at a daily chart for the $XEU which is the biggest component in the US dollar and how the euro goes the US dollar should show an inverse look. If the US dollar is breaking out of a consolidation pattern to the upside then the euro is most likely breaking down from a similar pattern.
XEU Daily Chart
http://www.marketoracle.co.uk/images...eflation-6.png
The long term monthly chart for the euro shows it breaking down from the blue bear flag that is sitting right on a possible mid line of a big downtrend channel. As you can see there are no touches on the bottom black rail. Many times a channel like this will double if the bottom rail is broken.
XEU Monthly Chart
http://www.marketoracle.co.uk/images...eflation-7.png


Please review and share your comments. Thanks.

Graham also states that the strong $USD will be annihilating 1Q17 results for corporate earnings.


Benjaminis

In the last few days I have devoted much time to show any interested parties the REAL condition of our world. One of my skills is to constantly challenge my own views by reading on a daily basis all views and opinions so I get to see all sides of the same picture. I just received an email from one of my trusted information sources and since he is confirming what clearly is the TRUTH or REALITY , I will post the link here and put some of the more important Snippets on this post.

As always feedback and questions are most helpful for all of us to have an excellent understanding if your interest is there.

https://srsroccoreport.com/precious-...nancial-enema/

Snippet:
While many Americans have been hornswoggled to believe President-elect Trump is going to make the United States great again, are you prepared for the greatest FINANCIAL ENEMA in history? Of course not. That is why we continue to see precious metals sentiment fall further into the cesspool.


I have to laugh at how much the gold inventories at the GLD ETF have declined in less than three months. Since October 20th, 2016, the GLD has shed 17% of its supposed gold holdings. No, I dont care if the gold is really there. Its probably not, but that isnt the important thing to focus on now. Its the sentiment.
Moreover, even though the gold price has risen from a low of $1,130 on Dec 23rd, to $1,200 recently, GLD inventories continued to decline by another 628,000 oz.

Regardless, the falling gold price and falling gold inventories at the GLD ETF suggest that the mainstream investor is cashing in their GOLD CHIPS for LEAD SLUGS to wager in the broader markets. Nothing like BRAIN DAMAGE gone wild in the good ole U.S. of A.

Now, when I say the GREAT FINANCIAL ENEMA is coming.. it is. However, it is difficult to pinpoint a date and time when this will occur. This is due to the ability of the Fed and Central Banks to continue sucking more and more blood out of the patient before he turns white and finally drops dead.
The reason the patient hasnt died sooner is due to significant plasma transfusions right when the patient is ready to keel over. This is the most difficult part for the Financial doctors to deal with. They want to continue bleeding the patient as much as they can, but they dont want him to turn into a corpse prematurely.

Not yet that is.

Unfortunately, the economic and financial system is decaying much quicker than the public realizes. And those who believe Trump will make positive changes for the country, may be sadly mistaken once he starts renovating the rat invested house. As soon as President-elect Trump begins ripping apart the structure to see what is inside, his policies will likely speed up the collapse of the United States, rather than provide a new manufacturing utopia.
The reason I am so certain of the upcoming disintegration of the GREATEST PONZI SCHEME in history, has to do with the information in the following chart:

https://srsroccoreport.com/wp-conten...-4-768x555.png

This chart was produced by Louis Arnoux. I interviewed Louis during our conversation about the Thermodynamic Oil Collapse. If you havent watched that video, I highly recommend it.

Anyhow, the chart above it quite easy to understand. There are three lines. The GREEN LINE is the U.S. GDP divided by the population. Then the DOTTED BLUE LINE is U.S. GDP in gold and the RED LINE is the U.S. GDP in oil.

I will simplify the chart by saying, for the public to enjoy real wealth creation, all three lines need to move up in the same direction. You will notice that all three did from 1900 to 1970. Then all of a sudden gold and oil shot up in the 1960s and crashed in the 1970s. The same thing took place in gold and oil in the late 1990s and then crashed in 2011.

Snippet:
Thus, this is the SETUP for the GREATEST FINANCIAL ENEMA in history. For those who continue to follow the markets via CNBC or Fox business, your brain is turning into mush. I am sorry to be so blunt, but there it is. The folks talking out of both sides of their mouths on these financial networks do not have your best interest at hand. So, when the LEAD SLUG CHIPS start lose some serious value in the future, you should not be surprised.

However, if you thought the crying and belly-aching that took place by many of the public after Trump was elected, you AIN’T SEEN NOTHING YET.
I have updated three charts below to show how the huge disconnect continues to take place in REAL vs FAKE ASSETS.
This first chart shows the increase in U.S. Debt since 1980 versus the increase in the Dow Jones Index:

https://srsroccoreport.com/wp-conten...1980-Today.png

Gosh, will ya look at that…. the starting points and increase in these two charts are nearly identical. The U.S. Debt has increased from $863 billion in Q1 1980 to $19.96 trillion today. The Dow Jones Index ballooned from 865 points in Q1 1980 to 19,830 today. Both the U.S. Debt and Dow Jones Index surged 23 times in this period.

Of course, this is just a mere coincidence….

In addition the S & P 500 is up 21 times since 1980 and the U.S. Retirement Market has been inflated by a staggering 24 times in the same time period.
Again…. nothing to see here, just more coincidences.

So, what isn’t doing as well as these wonderful bull market stock indexes? You got it, GOLD & SILVER.
The price of gold has only doubled since 1980:

https://srsroccoreport.com/wp-conten...-1980-2017.png

And then we have an even worse performer, the SILVER PRICE;

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While the Dow Jones Index surged 23 times since 1980, gold has only doubled and silver is basically the same.

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However, Fed Chairman Volcker and the “Financial Doctors” at the CME Group initiated the Silver & Gold Coup in 1979-1980, which allowed the GREATEST FINANCIAL PONZI SCHEME to continue for another 36 years.


In order for the “Financial Doctors” to be able to control gold and silver, they had to make sure the public didn’t get too interested in these “Barbarous relics”. Thus, the U.S. and British Govt started the Gold & Silver Futures Markets. Their plan was to make sure POOR UNWORTHY SLOBS did not put their Dollars in physical gold or silver, but rather in the paper futures market.


This was released by Wikileaks and published on GATA’s website via TFMetalsReport.com on January 4th. Here are two of the most important sections of that official 1974 cable:
The U.S. gold futures market was created in December 1974 as a result of collusion between the U.S. government and gold dealers in London to facilitate volatility in gold prices and thereby discourage gold ownership by U.S. citizens, according to a State Department cable written that month, obtained by Wikileaks


“The major impact of private U.S. ownership, according to the dealers’ expectations, will be the formation of a sizable gold futures market. Each of the dealers expressed the belief that the futures market would be of significant proportion and physical trading would be miniscule by comparison. Also expressed was the expectation that large-volume futures dealing would create a highly volatile market. In turn, the volatile price movements would diminish the initial demand for physical holding and most likely negate long-term hoarding by U.S. citizens.”


Basically, the “Financial Doctors” realized that they could funnel a great of gold and silver demand into a paper market rather than into physical bullion. Craig at TFMetalsReport.com has stated this many times on his site. When the volume of gold demand on the futures markets increases tremendously, the bullion banks just add more contracts. They don’t care how many POOR UNWORTHY SLOBS want to buy paper gold, they can issue as many new contracts as necessary.


This is the same with silver. The genius behind the creation of the Gold & Silver Futures markets is that it provided a mechanism to funnel more money into the GREATEST PONZI SCHEME in history and away from 2,000+ years of REAL MONEY.

And yes, this stunt has worked extremely well. Try to talk one of your family members, friends or associates into buying physical gold or silver. After several attempts, you will realize the brainwashing has been a complete success. I always find it simply amazing when those who have been BAMBOOZLED, actually defend those who do not have their best interest at hand.


I hope those who read the SRSrocco Report are more wise than those who look at gold and silver more superficially. Buying and holding physical gold and silver is probably the best protection when the FAN finally hits the SEWAGE PLANT. While some may sell some of their precious metals holdings to trade like the professionals (or so they try), it is extremely wise to hold onto most of one’s physical gold and silver when the Fed and Central Banks no longer are able to suck anymore blood out of the patient.


As stated in several articles, the energy is the key to understanding when things really fall apart. The SRSrocco Report site will continue to publish information that will detail the changing energy dynamic.

To give you an idea just how screwed up the U.S. financial system is versus energy, I suggest taking a look at the article, The U.S. Empire Would Have Collapsed Decades Ago If It Didn’t Abandon The Gold Standard.

THE STATE OF THE UNION - 6 DAYS BEFORE THE INAUGURATION !!!

Benjaminis

Good Night...


http://theeconomiccollapseblog.com/

Why Is Obama Moving Troops Into Poland And Provoking A War With Russia Right Before The Inauguration?
http://theeconomiccollapseblog.com/w...in-460x294.jpgJanuary 20th cannot come soon enough. Instead of stepping back and trying to ensure a smooth transition for Donald Trump, Barack Obama has decided to go hog wild and use every ounce of presidential power still available to him. He has been establishing a bunch of new national monuments, he just stabbed Israel in the back at the United Nations, and on Thursday he even took time to give Joe Biden a Presidential Medal of Freedom. But one of the things that has people the most concerned is his endless provoking of Russia. Every few days it seems like Obama is doing something else to aggravate Russia, and if he wasn’t leaving office in about a week I am sure that the mainstream media would be full of speculation about a possible war. (Read More...)


Tags: Depression, Donald Trump, Obama, Pain, Painful, Poland, Russia, Suffering, Trump, War | Category: Commentary | 153 Comments - ()
Why Are Wal-Mart And Boeing Laying Off Workers If The U.S. Economy Is In Good Shape?
http://theeconomiccollapseblog.com/w...ia-460x358.jpgThe stock market has been on quite a roll in recent weeks, but signs of trouble continue to plague the real economy. Earlier this week, I talked about the “retail apocalypse” that is sweeping America. Major retail chains such as Sears and Macy’s are closing stores and laying off workers, but I didn’t think that Wal-Mart would be feeling the pain as well. Unfortunately, that is precisely what is happening. USA Today is reporting that approximately 1,000 jobs will be cut at Wal-Mart’s corporate headquarters in Bentonville, Arkansas by the end of this month… (Read More...)

Tags: Apocalypse, Arkansas, Boeing, Feel The Pain, Feeling The Pain, Macy's, Michael T. Snyder, Pain, Painful, Sears, Stock Market, The Real Economy, The Stock Market, The U.S. Economy, Wal-Mart | Category: Commentary, The Economy | 193 Comments - ()
Trump’s Approval Rating Is Supposedly Only 37 Percent, But Small Business Optimism Just Hit The Highest Level In 12 Years
http://theeconomiccollapseblog.com/w...in-460x277.jpgA Quinnipiac University Poll that was released on Tuesday says that Donald Trump only has an approval rating of 37 percent. Meanwhile, that same survey found that Barack Obama currently has an approval rating of 55 percent. Of course considering the fact that Quinnipiac polls showed Hillary Clinton winning the election in November easily, perhaps we should not put too much stock in these results. But other polling organizations have come up with similar results. In fact, an average of nine recent polls indicates that Trump’s approval rating is somewhere around 42 percent. So without a doubt there are a whole lot of people out there that do not like Donald Trump. (Read More...)

Tags: Business, Donald Trump, Optimism, Pain, Pain Treatment, Painful, Small Business, Small Business Optimism, Stock, Trump | Category: Commentary | 143 Comments - ()
Activists Are Hoping To Turn Donald Trump’s Inauguration On January 20th Into One Of The Biggest Riots In U.S. History
http://theeconomiccollapseblog.com/w...dy-460x283.jpgRadical leftists are planning to make January 20th the most chaotic Inauguration Day in American history. Their stated goal is to “disrupt” the Inauguration festivities as much as possible, and they are planning a wide range of “actions” to achieve that stated goal. Some of the more moderate groups are using terms such as “civil resistance” and “civil disobedience”, but others are openly talking about “blockades”, jumping barricades, throwing projectiles and “citywide paralysis”. My hope is that all of their efforts will turn out to be a big flop, but it is important to understand that these groups are well funded, highly organized and extremely motivated. The election of Donald Trump has been perhaps the single most galvanizing moment for the radical left in modern American history, and they are working very hard to turn January 20th into a major political statement. (Read More...)

Tags: 2017, Civil Unrest In America, Disease, DisruptJ20, Donald Trump, Injuries, Injury, January 20th, Pain, Painful, Paralysis, Refuse Fascism, Treatment, Treatments, Trump | Category: Commentary | 514 Comments - ()

It’s A Retail Apocalypse: Sears, Macy’s And The Limited Are All Closing Stores
http://theeconomiccollapseblog.com/w...in-460x305.jpgIt has only been two weeks since Christmas, and already we are witnessing a stunning bloodbath of store closings. Macy’s shocked the retail industry by announcing that they will be closing about 100 stores. The downward spiral of Sears hit another landmark when it was announced that another 150 Sears and Kmart stores would be shutting down. And we have just learned that The Limited is immediately closing all stores nationwide. If the U.S. economy is doing just fine, then why are we experiencing such a retail apocalypse? All over America, vast shopping malls that were once buzzing with eager consumers now resemble mausoleums. We have never seen anything quite like this in our entire history, and nobody is quite sure what is going to happen next. (Read More...)

Tags: Apocalypse, Buying, Closing Stores, Consumers, Macy's, Retail, Retail Apocalypse, Sears, Selling, Store Closings, The Retail Industry, The U.S. Economy | Category: The Economy | 254 Comments - ()

Donald Trump Was Born Exactly 700 Days Before Israel Became A Nation
http://theeconomiccollapseblog.com/w...in-460x259.jpgDo you want to see something amazing? If you go to any of the major search engines and ask when Donald Trump was born, you will be told that it happened on June 14th, 1946. And then if you go to any of the major search engines and ask when Israel became a nation, you will be told that it happened on May 14th, 1948. If you take both of those dates and plug them into the handy calculator provided by timeanddate.com, you will discover that Donald Trump was born exactly 700 days before Israel became a nation. (Read More...)

Tags: Donald Trump, Israel, Trump | Category: Commentary | 381 Comments - ()
10 Ways That Donald Trump Could Try To Reverse The Curse That Obama Has Put On America
http://theeconomiccollapseblog.com/w...ll-460x327.jpgWhen Barack Obama betrayed Israel at the United Nations, that put a curse on our nation. But that doesn’t mean that we have to stay cursed. In the coming days, the new Trump administration should immediately start taking steps to reverse the curse that we are under as a result of what Obama has done. Perhaps if Donald Trump takes strong enough steps to try to undo what Obama has done, instead of being cursed we can once again return to being blessed. (Read More...)

Tags: 2017, A UN Security Council Resolution Establishing A Palestinian State, Barack Obama And A Palestinian State, Barack Obama Has Betrayed Israel, Barack Obama Has Given East Jerusalem To The Palestinians, Cancer, Consequences For Dividing The Land Of Israel, Dividing The Land Of Israel, Growing Like Cancer, Israel, John Kerry, Michael T. Snyder, Pain, Painful, Palestinian State, Palestinians, Two State Solution, UN Resolution Dividing The Land Of Israel, UN Resolution Establishing A Palestinian State, UN Resolution On A Palestinian State, UN Resolution Palestinian State, UN Resolution To Divide The Land Of Israel, UN Security Council Resolution 2334 | Category: Commentary | 264 Comments - ()

John Kerry Unveils His Plan For A Palestinian State Based Upon 1967 Borders With East Jerusalem As The Capital
http://theeconomiccollapseblog.com/w...ly-460x306.jpgBarack Obama stabbed Israel in the back on Friday, and now John Kerry has slapped Israel in the face just five days later. In a shameful speech that lasted for 71 dreadful minutes, U.S. Secretary of State John Kerry laid out his plan for peace in the Middle East on Wednesday. His six-part plan is being welcomed warmly by the Palestinians, but it has further infuriated the Israelis. Kerry claims that his plan reflects the emerging global consensus as to what a “final solution” will look like, and now we will wait to see what the 70 nations that will be gathering in France to discuss the Israeli-Palestinian conflict on January 15th will do.

There is a great deal of concern that the principles agreed upon at that conference will form the basis for a UN Security Council resolution that will be rushed to a vote before President-elect Donald Trump is inaugurated on January 20th. (Read More...)

Tags: 2017, A UN Security Council Resolution Establishing A Palestinian State, Barack Obama And A Palestinian State, Barack Obama Has Betrayed Israel, Barack Obama Has Given East Jerusalem To The Palestinians, Cancer, Consequences For Dividing The Land Of Israel, Dividing The Land Of Israel, Growing Like Cancer, Israel, John Kerry, Michael T. Snyder, Pain, Painful, Palestinian State, Palestinians, Two State Solution, UN Resolution Dividing The Land Of Israel, UN Resolution Establishing A Palestinian State, UN Resolution On A Palestinian State, UN Resolution Palestinian State, UN Resolution To Divide The Land Of Israel, UN Security Council Resolution 2334 | Category: Commentary | 564 Comments - ()

Circle January 15th: 70 Nations Will Gather In Paris To Discuss The Creation Of A Palestinian State
http://theeconomiccollapseblog.com/w...in-460x307.jpgOn January 15th, representatives from 70 different countries will gather in Paris, France for an unprecedented global conference. The stated goal of this conference is to promote a “two-state solution” as the way that lasting peace will be brought to the Middle East. In Israel, there is a tremendous amount of concern that whatever is agreed upon at this conference will immediately be used as the basis for a UN Security Council resolution that would permanently divide the land of Israel and create a Palestinian state. But things would have to move very rapidly in order for that to happen, because Barack Obama’s time in the White House comes to an end on January 20th, and Donald Trump has already made it exceedingly clear that he would never support such a resolution. (Read More...)

Tags: 2017, A UN Security Council Resolution Establishing A Palestinian State, America, America's Reprieve, Barack Obama And A Palestinian State, Barack Obama Has Betrayed Israel, Barack Obama Has Given East Jerusalem To The Palestinians, Consequences For Dividing The Land Of Israel, Dividing The Land Of Israel, Israel, John Kerry, Michael T. Snyder, Pain, Painful, Palestinian State, Palestinians, Two State Solution, UN Resolution Dividing The Land Of Israel, UN Resolution Establishing A Palestinian State, UN Resolution On A Palestinian State, UN Resolution Palestinian State, UN Resolution To Divide The Land Of Israel, UN Security Council Resolution 2334 | Category: Commentary | 631 Comments - ()


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One week after JPM made the exact same forecast, warning that the recent surge in the USDJPY will fade dramatically as Dollar euphoria shifts to concerns about protectionism, overnight UBS Group’s $2 trillion wealth-management arm said yen traders have got the Donald Trump "trade" all wrong, and the yen will strengthen to 98 per dollar by this time next year.
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Cited by Bloomberg, the firm’s Tokyo-based head of Japanese equity research Toru Ibayashi echoed warnings first voiced on this website two weeks ago, and says expectations for fiscal expansion have become overblown, and protectionist policies will come first in the new U.S. administration.
The conventional wisdom that has taken hold in the days since Trump's victory is that since the President-elect campaigned on pledges of “massive” tax cuts and spending of as much as $1 trillion over a decade to rebuild infrastructure, he will send inflation surging while unleashing a new debt-funded fiscal stimulus. This speculation has driven the yen to an eight-month low near 114 on Friday, capping the biggest three-week decline since 1995.
However, Trump also promised to tear up existing trade deals and punish companies that send jobs overseas. It is that part that has the UBS strategist worried.
“The market has latched on to only the juicy bits of Trump’s policies, and wrapped them up with unreasonable euphoria, which we think is pretty much a misinterpretation,” Ibayashi said in a phone interview Monday. “A market that’s been overbought on hope will quickly fall apart.”
UBS and JPM are not the only ones to warn against the market's uphoria. The firms join bulls including former Japanese currency chief Eisuke "Mr Yen" Sakakibara in forecasting the yen will gradually strengthen to beyond 100 per dollar next year because of Trump’s “America first” stance on trade, even as strategists raised dollar-yen estimates at the fastest pace since January of last year. A reversal of the yen’s post-election slump would negate what has been a welcome tailwind for Japan’s struggling economy.
Among the risks facing the market is that Trump may backtrack on most of his pledges. It’s unclear how much of Trump’s campaign trail promises will translate into policy. He has already backed away from a pledge to build a wall along the southern border paid for by Mexico, saying some parts could be a fence. But he reiterated last week that the Trans Pacific Partnership, also signed by Japan and 10 other nations, would be “a potential disaster for our country.”
There are also concerns about pushback from Congress: as reported last week, Republicans have already balked at Trump's proposal to boost the national debt by as much as $5 trillion over the proposed trendline, and contrary to the House Republicans' own deleveraging budget.
* * *
For now Sakikibara's forecast has yet to take hold: he predicted that the yen would strengthen as far as 90 per dollar within six months of Trump’s surprise election victory. Elsewhere, JPMorgan’s Tokyo-based head of Japan markets research Tohru Sasaki sees it at 99 as of the end of 2017.
That said, there is still time: both forecasters were correct in calls made at the start of the year for the yen to appreciate, when most analysts predicted an extension of the currency’s record four years of weakness against the dollar. The yen remains the best performer among its developed-market peers in 2016, strengthening 7.4% against the greenback. That trend is something Trump and other U.S. policy makers won’t be keen to change, according to UBS’s Ibayashi.
“A strong dollar will be a drag on revenue for U.S. businesses,” he said. “It’s a headwind for employment, and Americans would find that unacceptable.”
Finally, and perhaps suggesting that Trump won't even be necessary to unleash a regional wave of protectionism following the collapse of TPP, Nikkei reported that Japan has proposed stricter tariff rules that would knock five trading partners including China and Mexico off the list of countries receiving preferential treatment for emerging economies.
A finance ministry customs committee said Thursday that the list of nations qualifying for zero or minimal import tariffs on certain goods would be revised to exclude nations that account for 1% or more of world exports or make the World Bank's list of upper-middle income economies for three years running. Currently, trading partners need to qualify as high-income economies for three years to have preferential status revoked. The rules change would end special treatment for China, Mexico, Brazil, Thailand and Malaysia.
It is only a matter of time before Japan's trading partners retaliate and - if UBS and JPM are right - undo all the recent Yen losses.
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Examine the chart below very carefully. It is a chart of the CBOE Volatility Index from 2006 to 2008. As you can see, volatility was very low as stocks soared during 2006. Then things started to get a bit choppy in 2007, and investors should have recognized this as a warning sign. Finally, you can see that the VIX absolutely skyrocketed during the financial crisis of 2008…
http://theeconomiccollapseblog.com/w...08-425x282.png
Looking back, it seems so obvious.

So why aren’t more people alarmed this time around?

As CNN is reporting, the VIX is up almost 20 percent so far in 2015…

Volatility has returned with a vengeance this January. The Dow has been moving up or down by at least 100 points nearly every day this year.
CNNMoney’s Fear & Greed Index is showing signs of Extreme Fear again. And a volatility gauge known as the VIX, which is one of the components in our index, is up nearly 20% so far this year.

Meanwhile, there are lots of other signs of trouble on the horizon as well.

For example, the price of copper got absolutely hammered on Wednesday. As I write this, it has fallen more than 5 percent and it has not been this low in more than five years.

In financial circles, it is referred to as “Dr. Copper” because it is such a valuable indicator regarding where the global economy is heading next.

For example, in 2008 the price of copper was close to $4.00 before plummeting to below $1.50 by the end of that year as the global financial system fell apart.
Now the price of copper is plunging again, and many analysts are becoming extremely concerned…

One growing global worry is the steep decline in copper, which is used in many products and is often viewed as good gauge on how China is doing. The price of copper hit its lowest price since 2009 on Wednesday at $2.46. Copper is down nearly 7% this week alone.

Meanwhile, the recession (some call it a depression) in Europe continues to get even worse, and the euro continues to plunge.

On Wednesday, the euro declined to the lowest level that we have seen in nine years, and Goldman Sachs is now saying that the euro and the U.S. dollar could be at parity by the end of next year.

That is amazing considering the fact that it took $1.60 to get one euro back in July 2008.

Personally, I am fully convinced that Goldman Sachs is right on this one. I believe that the euro is going to all-time lows that we have never seen before, and this is going to create massive problems for the eurozone.

With all of these signs of trouble out there, the smart money is rapidly pulling their money out of stocks and putting it into government bonds. This usually happens when a crisis is looming. It is called a “flight to safety”, and it pushes government bond yields down.

On Wednesday, the yield on 10 year U.S. Treasuries fell beneath the important 1.8 percent barrier. We will probably see it go even lower in the months ahead.
As the rest of the world economy crumbles, the remainder of the globe is looking to America to be the rock in the storm.

COMMENTARY FROM BENJAMINIS: Think very carefully about what you just read. I read it again this morning even though it was written back then and now it is clear to see what has changed and where we are at the moment. Now the MONEY that has flowed into the Bonds has gone out of the Bonds into the Equities however this time the USA is no longer the ROCK. It soon will be rocked starting in 5 days. Look at the other article that I posted this morning from November 27, 2016 and we see what is ahead of us. Even though the collapse has not arrived now it is clear. The FACTS prove that and soon the PERCEPTION and the REALITY will become the same and it will not be very pleasant.