Goldman Sachs issues a Strong BUY recommendation on what is forecasted to be the hottest selling toy of 2014 holiday season. God Almighty, Inc (GOD), now with AK-47.
Wall Street To Main Street ……Suck It America
The average bonus paid to securities industry employees in New York City in 2013 grew 15% to hit $164,530 in 2013. That’s 3X the median American household income of $51,000. But, how dare are you to question such bonuses? After all, 2013 was a great year for all market participants. Plus, do you know how freaking hard it is to shuffle paper assets around? That’s right, so shut up you average American peasant.
Now, last time Wall Street bonuses were this high was in 2007. This is rather simple. The massive Wall Street bonuses last year are yet another indicator for the stock market top. As I have indicated many times before, based on our mathematical and timing work, the bear market of 2014-2017 is just around the corner. When it starts, most of the excesses associated with the last 5 years will disappear. If you would be interested in learning the internal structure of the upcoming bear market and its exact timing, please Click Here.
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Wall Street To Main Street ……Suck It America Google
The average bonus paid to securities industry employees in New York City in 2013 grew 15% to hit $164,530 in 2013, according to estimates released Wednesday by New York State Comptroller Thomas P. DiNapoli. That includes cash for the current year and compensation deferred from prior years.
That is the third biggest bonus on record, says DiNapoli. The other two stand-out years: 2006, when workers gleaned $191,360 and 2007, when they gained $177,830.
THREATS: Record margin debt poses risk for bull market
Although profits were lower than in past years, Wall Street still had a healthy 2013, DiNapoli said in a statement.
Firms had to deal with costly legal settlements, higher interest rates and an evolving regulatory environment, yet “Wall Street continues to demonstrate resilience,” he says.
Wall Street, which had record losses during the financial crisis, has shown profits for five consecutive years, he says.
Profits for the broker/dealer operations of New York Stock Exchange member firms totaled $16.7 billion in 2013. That is 30% less than in 2012, he said in the statement, “but still strong by historical standards.”
The securities industry in New York City is reaping more dollars, but has fewer workers. It had about 165,200 workers in December, which is 12.6% less than before the financial crisis, which brought about massive layoffs as well as the demise of entire financial firms.
Nuclear World War 3 Is Coming Soon.When, How & Why (Full Report)
Quick Update: May of 2015: Over the last few months quite a few people told me that my timing is off. Questioning my work and suggesting that this war will start much sooner than 2029. Well, it’s NOT going to happen. My cycle work is exact. What I talk about below represents approximately 5% of my work. I left quite a bit of stuff out. Every single war, including smaller wars, can be predicted with these cycles. Either through the primary 84 year war cycle or its smaller counterparts.
Let me give you another quick example that I didn’t mention in the book/report below. The US entered World War 1 in April of 1917. Exactly 84 years from that date brings us into April of 2001. Just 5 months shy of September 11th, 2001 and the start of Iraq/Afghanistan/Terror wars. In other words, scary accurate. I rest my case.
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A Few Excerpts From The Book If you want to see the rest of the information, please get the book. In addition to the excerpts below the book offers mathematical proof and the steps you need to take in order to save your family and yourself. WARNING LABEL Yes, this book should come with its own warning label. The subject matter discussed here is beyond hard to swallow. For most people. Try telling parents that their kids only have 15-20 years to enjoy life before their world is turned into a literal hell and you will get a death stare of a thousand knifes. Try telling Christians that there will be no Rapture before the gates of hell open up and they will curse your soul to ten thousand years of fiery hell. Try telling religious leaders and scholars that the final war will NOT originate in or around Israel and they will laugh at you. Finally, try telling the rest of the populous that the war is coming and they will immediately dismiss you as one of those “The End Is Near” crazy sign holders with a free WI-FI connection. Nevertheless, it is a book that I had to write in order to save the very few who will pay attention. For others, I have a quick message. If you are closed minded enough to dismiss the message in this book purely on religious grounds or from a vantage point of sheer terror, I demand that you put this book down and move on. There is no point in reading it. It will bring nothing but frustration and anger into your life. Then email me at [email protected] with a proof of purchase and I will gladly refund the entire amount (direct purchases only, not Amazon). In essence, I have no desire to argue with people about the validity of my forecasts. My work speaks for itself and I hope you will see that throughout the book. Finally, before you assume that I am sort of a doomsayer seeking to build some sort of a cult following, understand something very important. I am a very well to do and generally very happy. I do not have any interest in doom and gloom, I am simply reporting what my work indicates. As such, please don’t contact me or seek further guidance in regards to this report. Simply be aware that this is coming down the pipeline and decide what plan of action is best for your entire family. “The Future” – Universal Consciousness II thought long and hard whether or not I should publish this report and information. After careful consideration I have figured that if this information saves just one life and/or one family, it’s worth it. Report Summary: I plan to spend the 2029-2040 time frame at my beach house on one of the Islands somewhere in the South Pacific as the
…..NUKE each other back to the stone age. |
Now, before you assume that I am sort of a doomsdayer seeking to build some sort of a cult following, understand something very important. I am a very well to do and generally very happy. I do not have any interest in doom and gloom, I am simply reporting what my work indicates.
I have learned a long time ago that I cannot change violent human nature NOR future. As such, please don’t contact me or seek guidance in regards to this report. Simply be aware that this is coming down the pipeline and decide what plan of action is best for your family and yourself.
The Bible calls this period Armageddon, graphically describing its aftermath in the Book of Revelation. Fortunately or unfortunately, I was able to figure out the exact time frame of this occurrence. By accident I might add. This report is to show you exactly why, how and when things will unfold.
I first became aware of the subject matter at hand during my research and analysis of future stock market cycles. After years of work with cycles and getting a fairly good understanding of the stock market composition (giving me the ability to predict the stock market with incredible accuracy) I came across something that puzzled me. When I got into the early 2030’s something crazy happened.
After a strong run up (due to inflation, not fundamentals) the stock market proceeded to collapse to the tune of 90-95% within a 2 weeks time frame. At first, I thought that I got some of my calculations wrong, but after some verification my original work was confirmed. Which brought out an incredibly important question.
What can collapse the Dow Jones 90-95% within a two week period of time?
I knew that it had to be something big. Such drops are unprecedented in the history of the stock market. As a matter of fact, it had never happened before. Even the 1929-32 collapse of 90% took 3 years to play out. So, what the hell could cause such a meltdown?
Sure, a natural catastrophe, an earthquake, giant tidal wave, meteor strikes, etc….are all a possibility. However, we are not talking about a specific region. We are talking about the entire stock market which represents every corner of Americana as a whole. Some sort of a war is always a possibility, but for the market to collapse to such an extent so rapidly, it would have to be a nuclear war.
Is that even possible in today’s world?
I had to find an answer and so began my research into the subject matter. Using the same cyclical analysis I use for the stock market work, it wasn’t long before I found my answers. What I found shocked me to the core. The nuclear war is indeed coming. It will be fought between 2029-2032 and it will literally destroy the world and impact every human being on the face of the Earth, one way or another. What I find fascinating, is that today’s macroeconomic and geopolitical developments are already lining up for what is to come.
This report is to show you exactly what will transpire over the next 20 years and what you can do to in order protect yourself.
WHEN?
Every significant* American war has been fought exactly 84 years apart. Based on my work this is not a coincidence. Let’s take a look.
(*Significant can mean many things. In this case, it’s the % of casualties based on total population).
Revolutionary War: Started in 1776. Total American Casualties (killed and wounded) 50,000. 1.25% of population. Total US Population at the time…. 4 Million (including 700K slaves).
EXACTLY 84 YEARS LATER—————-
Civil War: Started in 1860. Total American Casualties (killed and wounded) 1.1 Million 3.2% of population. Total US Population at the time…31 Million (12.7% are slaves).
EXACTLY 84 YEARS LATER————————
World War II: For the US the war technically started on December 7th, 1941 with the attack on Pearl Harbor, but the US suffered the highest % of casualties in 1944. Exactly 84 years from the previous cycle. Total American Casualties (killed and wounded) 1.05 Million. 0.7% of population. Total US Population at the time 132 Million.
EXACTLY 84 YEARS LATER (NATO Vs. Russia/China)——————-
World War III. 2029-2032. Nuclear War. The war will be fought between NATO Members and Russia/China Coalition. Massive casualties. Most major cities or population centers with +1 Million people throughout the world will be Nuked.
(***Please note, I am very well aware that there were many wars in between the wars described above. World War I, Vietnam War, Korean War, Iraq/Afghanistan, etc… They do not count because they were not major wars. Even though tens of thousands of people have died, as per % of population such losses were small. For example, the total number of casualties in Vietnam (killed and wounded) were 200,000 or 0.01% of US Population at the time. Now, compare that to massive losses as per % of population in the wars described above. )
Why Do I Believe This Will Be A Nuclear War?
My study shows that the weapon that were “brand new” at the preceding 84 cycle war are used on a massive scale during the next war. For instance, machine guns (Gatling Gun) were first introduced during the Civil War in 1861. Subsequently, they were used during the World War II on a massive scale, inflicting a devastating casualty count.
As you know, the first Atomic Bomb (Little Boy) was used by the US on Hiroshima on August 6, 1945. Followed by Nagasaki on August 9th. If we take 84 years from those dates, it will bring us into the summer of 2029. Whether or not that’s the exact date…….I refuse to say. A date of 2029-2032 is sufficient enough for our purpose.
Please note, there will be a multitude of signs right before the nuclear war starts. These sort of things do not happen in the vacuum and/or out of the blue. There will be plenty of news during that period of time that will allow you to narrow down the time frame and hopefully to save your family and yourself.
PART II
WHY
All wars repeat in cycles. In Part I of this report, I have shown you the major war cycle associated with all of the MAJOR American Wars. Unfortunately, the war is coming and cannot be stopped. Based on my stock market work, future is predetermined and cannot be altered.
Fundamental Reasons:
Let’s take a look at North Atlantic Treaty Organization (NATO).
NATO is a military alliance organization that consists of 28 countries. You can see the full list HERE. It’s membership consists mostly of the EU countries and North America. Obviously, the US is the largest superpower, force multiplier and policy driver. More or less, the treaty works as follows. If any of the NATO members are attacked, all other members must provide military support, assistance and equipment. Basically, if any of the member states are attacked, the entire NATO goes to war. NATO was originally created to counterbalance Soviet Russia after WW II.
Political Reasons:
You don’t have to go very far to see the tension between Russia and the US -OR- China and the US. Just turn the TV on. As I write this today, the relationship between Russia and the US has cooled to the point we haven’t seen since the 1980’s, before the Soviet Union broke up. All because of Ukraine. Whether or not the situation in Ukraine has been caused by the US or Russia is outside the scope of this discussion.
The major point I want you to understand here is this. Russia is fed up with the US due to NATO’s expansion right up to its borders. Plus, the US keeps lecturing Russia on what to do and how to do it. Since no one likes being lectured, Putin is not only fed up with the US foreign policy, he is furious with it. His speech on March 18th, 2014 proves that without a shadow of a doubt.
With that said, we can anticipate Putin to be in power in Russia for as long as he wants. For as long as the US continues with it’s policy against Russia (and I don’t see it changing anytime soon) our relationship with Russia will continue to deteriorate.
China finds itself in a very similar situation. If you have ever been to China, you very well know that Chinese are very proud people. Just as Americans are. Yet, America cannot help itself but to shove it’s god given “Righteousness”, democracy and politics down Chinese throats. I can tell you this. This infuriates the Chinese to no end. Plus, China is trying to build a military superpower in the region only to be constantly undermined by the US with the help of Japan, Taiwan and the Philippines. Again, who is right or wrong here is outside the scope of this discussion.
The bottom line is this, both Russia and China are fed up with the US at this point in time. Further, given today’s geopolitical and macroeconomic situation I see no reason for the situation to improve. Quite the opposite. I see the US relationship with both countries deteriorating further as all 3 superpowers fight for their own interests.
If you didn’t know, China and Russia are both “communist” countries that go way back. In fact, until China started selling crap to the US, it was always expected that China and Russia would stand together. Vietnam War, North Korea, Communism Ideology, etc…. In fact, it wouldn’t be wrong to describe China and Russia as having a “brotherly” relationship. You see the evidence of that at the United Nations, where Russia and China tend to support each other on important international issues.
In Summary: Both China and Russia are fed up with the US. On multiple levels. As the US and China/Russia relationship continues to deteriorate over the next 10-15 years, Russia and China will, once again, be forced to form an alliance. With the US/NATO flexing its military muscles, the alliance between Russia and China will eventually become a military alliance similar to NATO.
Economic Reasons:
Most wars are triggered by economics, not ideology. For example, Civil War was fought over cotton trade, not slavery…..Revolutionary War was fought over excessive taxes…not British rule and WWII was triggered by economic depression and war repatriations in Germany in the 1920s and the 1930s.
So, if you haven’t noticed the US owes China $1.3 Trillion. With the US National Debt at over $17 Trillion, the US is one recession away from not being able to cover its interest payments. In a nutshell, we don’t have the money to repay the Chinese. The only way out of this mess is for the US is to inflate its currency away. The FEDs have been trying to do just that over the last 10 years. Thus far, without too much success, due to a number of deflationary forces within the economy.
Based on my timing and mathematical work, that is about to change. The FED will be successful in getting inflation going after 2017. Slow at first, much faster after 2022. Basically, they will be able to inflate away the Chinese $1.3 Trillion or more.
This might not be a problem if China didn’t face a massive economic slowdown over the next decade. It’s own bear market so to speak. Chinese leaders will need someone to blame in front of their population and since the US will inflate its $1.3 Trillion away, China will point its finger where it belongs. Rightfully so. Of course, this will cause massive friction with China. In fact, I see this economic issue as the major trigger point that will eventually set this war off.
That is why I view macroeconomic and geopolitical issues between China/Russia and the USA/NATO as a major trigger point. You will see most of the issues I talk about come into light over the next few years. They will not get better. They will continue to deteriorate further from this point on.
HOW
This section will be a pure speculation, but we have a good reference point.
Looking at the Cuban Missile Crisis in the 1960 provides us with a perfect example. If you study the incident, Soviet Union and the US literally came a few minutes away from blowing each other up. The bombers were already in the air and both nations had their finger on the proverbial red button. The scary part was, if one sailor or one pilot or one soldier would have made a simple mistake at that juncture….as simple as accidentally firing their gun…..we would have had a nuclear war in the 1960. And that’s the most important thing to remember.
It is difficult to predict exactly what will happen and how things will unfold, but we will eventually end up with some sort of a standoff between Russia/China Vs. USA/NATO. During that standoff a number of small skirmishes might eventually turn into an all out war and shortly thereafter, into a nuclear war. A trigger might be as simple as a short firefight between a Chinese and an American soldier.
At the end of the day, it doesn’t really matter what actually triggers it, the point is, the war will be triggered one way or another.
WHO WILL WIN?
No one will win. If the above scenario comes to fruition, as my stock market work indicates, billions (not millions) of people will die. No one wins in a situation like that. Most population centers throughout the world (particularly in China, Russia and the US) will be radioactive wastelands. Who cares who wins. Humanity as a whole will lose. Big time.
WHAT YOU SHOULD DO
You have a number of options.
1. You can dismiss me as a crazy person and that is totally fine by me. I will have a beer for you while sitting on a beautiful beach somewhere in the South Pacific as the War starts.
2. You can save this report and start watching macroeconomic and geopolitical developments over the next 10 years. What you will find is that this report was right on the money. You will see the US relationship with Russia/China deteriorate significantly over the next 10-15 years. You will also see China and Russia coming together and forming a military alliance. At that stage you will have two options.
- Do nothing. You will eventually get vaporized or otherwise killed during the war.
- Get away from major population centers and become self sufficient. Same applies to your family. Make sure you can protect yourself as well as sustain your family over a 10 year period of time.
Good luck everyone. We will need it.
Investment Joke Of The Day
Unprofitable IPOs Don’t Scare Investors…Great
As WSJ reports, 74% of all IPO’s today are not making any money and/or are not profitable. Guess when that happened before? That’s right, right before the 2000 Nasdaq collapse.
But don’t worry. It’s different this time. After all, the investors are “NOT Scared” this time around….whatever that means. This is just another indication that the bear market is about to start and destroy bulls. Particularly, those playing in the IPO market. Earlier today I posted a good “Short List” that should get you started.
Since January of this year I have argued that the Dow Jones topped out on December 31st 2013 at 16,588. We continue to maintain this position as it is based on our precise mathematical and timing work. With the Dow pushing this level again, it is up to you to figure out what happens next. However, if you would like an exact breakdown and bear market composition of (2014-2017) please Click Here.
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Unprofitable IPOs Don’t Scare Investors…Great Google
A hot IPO market isn’t necessarily an optimistic development for the aging bull market.
Companies are going public at a pace reminiscent of the 1990s Internet heyday, a positive sign for young companies aiming to cash in on the rallying stock market. But analysts say the underlying mix of companies rushing to go public represents a warning sign for the stock rally.
Some 74% of companies that went public over the past six months weren’t profitable, the highest level since March 2000 when about four out of five new companies were money-losers, according to Jason Goepfert, founder of Sundial Capital Research and author of the SentimenTrader Daily Report. That same month, the Nasdaq Composite peaked before tumbling into a deep bear market as the dot-com bubble burst.
Since 1990, 42% of companies that have gone public, on average, haven’t been profitable, Mr. Goepfert says. In the early-to-mid 1990s less than 1/3 of these companies didn’t generate profits. This percentage rose through the tech bubble, fell afterward and rose again through the 2007 market peak before tumbling to as low as 15% in October 2009, seven months after the bear-market bottom.
In the past several years the percentage of unprofitable companies going public has hovered predominantly between 55% and 65%. It moved back above 70% early last month.
“This kind of behavior is troubling,” Mr. Goepfert said. “Not only do we have a willing public market ready to provide capital to these companies, but in many cases these are instances of professional investors selling their claims to a less-sophisticated public,” he added.
The list of newly minted money-losing public companies in the past six months includes microblogging platform Twitter Inc. and cybersecurity firm FireEye Inc.FEYE -0.08%Twitter shares have more than doubled off the IPO price; FireEye has more than quadrupled.
Investors don’t seem too perturbed by the trend. If anything, recent IPOs boast better returns than the broader market. The average U.S. IPO this year rose 19% from its debut through Feb. 28, and 5% from where it closed after its first day of trading, according to Dealogic. The S&P 500 index, meanwhile, has edged only slightly higher for the year.
To be sure, the IPO market has a long way to go before reaching tech-bubble levels. In the first two months of this year, 42 companies went public in the U.S., compared to 77 in the same period in 2000, according to Dealogic.
That’s why many stock investors aren’t willing to turn bearish right now.
In his weekly commentary, BlackRock strategist Russ Koesterich didn’t sound enamored with stocks, but he still considered them to be better than other alternatives.
“To start, we would say equities are no longer cheap and that stronger economic growth will be needed to drive earnings and prices higher,” he said. “But we do believe stock prices are more likely to head higher rather than lower from here,” Mr. Koesterich added, while cash investments “are effectively paying nothing, and traditional areas of the bond market offer little return after factoring in the effects of inflation and taxes.”
Even with a pricey stock market and an increasingly frothy IPO market, the fact that inflation and interest rates are low and the economy is gradually improving offers “sound arguments for overweighting stocks,” he says.
Morning MoneyBeat Daily Factoid: On this day in 1888, a brutal blizzard smacked the Northeast, resulting in a shutdown of communication and transportation lines along the U.S. Atlantic Seaboard. More than 400 people died from the storm.
Ukraine Wants The US To Get Into A War With Russia
Why are we supporting these idiots again? Oh, right, freedom, liberty and justice for all. Especially the Ukrainians who would like nothing more but to get America involved into yet another war that would cost the lives of thousands of American soldiers. Right…..
The new and illegitimate Ukrainian government makes it very clear. They want the US to interfere militarily. I hope no one in our administration is even considering this action. Doing so would trigger a massive war with Russia. I guarantee you that. Plus, any war with Russia would be a little bit more difficult than blowing up a 1984 Toyota Pickup full of Taliban fighters.
It is time the US stops meddling in the business of other countries and starts paying attention to the US Economy and our own future.
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Ukraine forms new defense force, seeks Western help
KIEV/SEVASTOPOL (Reuters) – Ukraine’s interim leaders established a new National Guard on Tuesday and appealed to the United States and Britain for assistance against what they called Russian aggression in Crimea under a post-Cold War treaty.
Blaming their ousted predecessors for the weakness of their own armed forces, acting ministers told parliament Ukraine had as few as 6,000 combat-ready infantry and that the air force was outnumbered nearly 100 to 1 by Moscow’s superpower forces.
There was no let-up in the war of words, with the pro-Russian regional parliament in Crimea approving a declaration of independence that will take effect if people on the Black Sea peninsula vote to unite with Russia in a referendum on Sunday.
The national parliament in Kiev said it would dissolve the Crimean assembly if it did not cancel the plebiscite.
Viktor Yanukovich, whose overthrow last month after protests triggered the gravest crisis in Europe since the Cold War, insisted from his refuge in Russia that he was still Ukraine’s legitimate president and commander of its armed forces.
Lavrov: Russia has proposals to resolve Ukrainian …Play video
Acting Prime Minister Arseny Yatseniuk, who will visit the White House and United Nations Security Council this week, said a 1994 treaty under which Ukraine agreed to give up its Soviet nuclear weapons obliged Russia to remove troops from Crimea and also obliged Western powers to defend Ukraine’s sovereignty.
He said a failure to protect Ukraine would undermine efforts to persuade Iran or North Korea to forswear nuclear weapons as Kiev did 20 years ago. The terms of the Budapest Memorandum oblige Russia, Britain and the United States as guarantors to seek U.N. help for Ukraine if it faces attack by nuclear weapons.
DISARMAMENT PACT
Parliament passed a resolution calling on the United States and Britain, co-signatories with Russia of that treaty to “fulfill their obligations … and take all possible diplomatic, political, economic and military measures urgently to end the aggression and preserve the independence, sovereignty and existing borders of Ukraine”.
NATO powers – and the authorities in Kiev – have made clear they want to avoid a military escalation with Moscow, which has denied its troops are behind the takeover of Crimea 10 days ago by separatist forces – a denial ridiculed by other governments.
U.S. Ambassador to Ukraine: Discussion “over& …Play video
The European Union and United States have been preparing sanctions against Russia, though with some reluctance, especially in Europe, which values commercial ties with Moscow.
Direct diplomacy has stalled this week. U.S. Secretary of State John Kerry turned down an invitation to Moscow until Russia modifies its stance. Ukrainian premier Yatsneniuk said he had been unable to reach either Russian President Vladimir Putin or Prime Minister Dmitry Medvedev for the past five days.
Russia says the overthrow of Yanukovich was a coup backed by the West and that it has the right to defend the interests of the ethnic Russian majority in Crimea, a territory of two million that the Kremlin transferred from Russia to Ukraine at a time when the collapse of the Soviet state was unthinkable.
NATO AWACs surveillance planes were beginning flights over Poland and Romania to monitor events in Ukraine and the U.S. navy was preparing for exercises in the Black Sea with NATO allies Bulgaria and Romania over the next few days.
Yatseniuk, who said he supported efforts to set up a “contact group” of major powers to resolve the crisis, accused Russia of seeking to undermine the world security system:
Russians rally in Moscow to support annexation of …Play video
“This is not a two-sided conflict. These are actions by the Russian Federation aimed at undermining the system of global security,” he told parliament.
NATIONAL GUARD
Acting president Oleksander Turchinov said the National Security and Defence council had decided to raise a new National Guard among veterans. He accused Yanukovich of leaving the military in such a poor state that it had to be built “effectively from scratch”.
The acting defence minister said Ukraine had not been prepared for military confrontation with Russia. Having mobilized its forces, he said the country had only 6,000 combat-ready infantry out of a nominal infantry force of 41,000 -compared to over 200,000 Russian troops on its eastern borders.
Turchinov warned against provoking Russian action, saying that would play into Moscow’s hands. The National Guard, based on existing Interior Ministry forces, would “defend citizens from criminals and from internal or external aggression”.
View gallery
An armed man, believed to be Russian serviceman, is seen in an armoured military vehicle outside a U …
A partial mobilization would begin of volunteers drawn from those with previous military experience, he said.
Yatseniuk said the government was doing all it could to finance pay and equipment for the armed forces, but that Kiev needed help from Western guarantors of its security.
Western powers have been careful to note that Ukraine, not being a member of NATO, has no automatic claim on the alliance to defend it. But Yatseniuk said the principles of its 1994 nuclear disarmament pact entitled it to expect assistance.
“What does the current military aggression of the Russian Federation on Ukrainian territory mean?” he said.
“It means that a country which voluntarily gave up nuclear weapons, rejected nuclear status and received guarantees from the world’s leading countries is left defenseless and alone in the face of a nuclear state that is armed to the teeth.
“I say this to our Western partners: if you do not provide guarantees, which were signed in the Budapest Memorandum, then explain how you will persuade Iran or North Korea to give up their status as nuclear states.”
George Soros: Banks Are Parasites….I agree.
In his new book “The Tragedy of the European Union” George Soros blasts the banking sector by calling them “parasites” who prevent real economic recovery. He goes on, “35% of all corporate profits in the United Kingdom and the United States came from the financial sector. That’s absurd.” Mr. Soros is, of course, right on the money, but I will go even further than that. It’s not just the banks. It’s the collusion between the big banks/financials and the government. Until this cartel is broken up we will continue to have these boom/busts cycles where the primary driver behind economic growth (or perceived economic growth) is credit and speculation.
Too bad.
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George Soros: Banks Are Parasites….I agree. Google
George Soros blasts ‘parasite’ banks
George Soros, the billionaire investor, has warned that little has changed since the 2008 crisis in the ‘parasite’ banking sector
George Soros, the billionaire investor, believes the banking sector is a “parasite” holding back the economic recovery and an “incestuous” relationship with regulators means little has been done to resolve the issues behind the 2008 crisis.
“The banking sector is acting as a parasite on the real economy,” Mr Soros said in his new book “The Tragedy of the European Union”.
“The profitability of the finance industry has been excessive. For a while 35pc of all corporate profits in the United Kingdom and the United States came from the financial sector. That’s absurd.”
Mr Soros outlined how the problems that caused the Eurozone economic crisis remain largely unresolved.
“Very little has been done to correct the excess leverage in the European banking system. The equity in the banks relative to their balance sheets is wafer thin, and that makes them very vulnerable.
“The issue of “too big to fail” has not been solved at all.”
The proposed solution of a European banking union does not address the underlying problems, Mr Soros adds.
“A real danger to the financial system is the incestuous relationship between national authorities and bank managements. France in particular is famous for its inspecteurs de finance, who end up running its major banks. Germany has its Landesbanken and Spain its caixas, which have unhealthy connections with provincial politicians.”
In his new book Mr Soros outlines, in a series of interviews with Dr. Gregor Peter Schmitz, how he believes the European Union is in danger of becoming a thing of the past unless its flawed structure is reformed.
The German economy at the regions heart could also be its biggest weakness.
“What was successful in Germany before the crisis will not be successful as a prescription for the rest of Europe in the years ahead.
“In German the word Schuld has a double meaning (both “blame” and “debt”). So it is natural (selbstverstandlich) to blame the debtor countries for their own misfortunes,
“Germany’s tone, is sometimes self-righteous and even hypocritical…. In 2003 Germany was among the first countries to break the eurozone rules. ”
The prospect of Germany leaving the eurozone is very real and it would have serious implications as the euro would depreciate sharply and deutsche mark would go through the roof, Germany would find out how painful it is to have an overvalued currency.
Mr Soros, who famously “broke the Bank of England” by betting against the pound during the 1992 sterling crash, talks candidly about his most successful trade.
“I have a clean conscience. The big events in which I participated would have occurred sooner or later, whether I speculated on them or not.”
Get Your Shorts Ready
It’s not a secret. The stock market in a massive overvaluation bubble that is about to pop. Based on our mathematical and timing work it would be prudent to start getting your short positioning ready for what is to come. And I mean NOW. Below is list of stocks that I deem “highly overvalued and speculative”. It should be a good start. Typically, when the bear market starts such issues decline much faster and further than the overall market. Providing you with out-sized returns. Good luck and don’t forget. Do you own research and always wait for a breakdown confirmation.
ALKS, COG, TECH, PINC, AL, ILMN, CELG, RGLD, MA, DDD, V, GILD, SSYS, FLT, TRIP, SBAC, VRTX, AR, REGN, FB, TWTR, VEEV, NOW, N, DATA, TSLA, SPLK, WDAY
If you would be interested in learning about when the bear market will start and it’s exact composition, please Click Here.
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Japan’s Economy About To Collapse….Again?
I am not sure why it is so difficult for people to understand. Particularly, our Nobel Prize winning economists and charlatans throughout world governments. Let me spell it out.
YOU CANNOT PRINT YOUR WAY TO PROSPERITY.
Japan is a perfect illustration of that(see the article below). With Nikkei being roughly at the same level it was about 30 years ago, things are not looking good. Japan is a good case study of what not to do when facing “Deflation”. Instead of embracing it and letting defaults work themselves out of the financial system, Japan did everything in its power to keep zombie companies afloat. Cutting interest rates to zero, printing money, devaluing currency, inflation targeting, etc…. Today’s Abenomics is simply a continuation of fiscal insanity. Japan, once a great financial powerhouse, is now an empty shell.
Too bad America is following Japan’s footsteps to a tee.
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Japan’s Economy About To Collapse….Again? Google
Japan’s Economy Expands Less Than Initially Estimated
Japan’s economy expanded less than estimated in the fourth quarter and the current-account deficit widened to a record in January, highlighting risks to Abenomics as a sales-tax increase looms.
Gross domestic product grew an annualized 0.7 percent from the previous quarter, the Cabinet Office said today inTokyo, less than a preliminary estimate of 1 percent and a 0.9 percent median forecast in a Bloomberg News survey of 20 economists. The current-account deficit widened to 1.59 trillion yen ($15.4 billion), a record in data back to 1985, the finance ministry said.
While growth is set to surge this quarter before the bump in the sales levy next month, a sentiment survey released today highlighted expectations for a sharp pullback when businesses and consumers face the higher burden. Prime Minister Shinzo Abe is due to detail growth measures in June to sustain momentum, while economists forecast the Bank of Japan will add to unprecedented easing to keep the world’s third-biggest economy on track for a 2 percent inflation target.
“Capital spending remains weak and exports are not coming back to strengthen the recovery, and without support in these areas, Japan’s economy is going to contract significantly in the second quarter,” said Yoshimasa Maruyama, chief economist at Itochu Corp. in Tokyo. “The negative effect from the sales tax rise could be worse than the BOJ and government expect.”
Net Creditor
The Topix index of shares fell for the first time in five days after growth missed estimates, closing down 0.8 percent. The yen traded at 103.15 per dollar at 3:11 p.m. in Tokyo, up 0.1 percent.
Business investment rose 0.8 percent from the previous quarter, revised down from a preliminary 1.3 percent increase, today’s data showed. Consumer spending climbed 0.4 percent, less than an initial estimate of a 0.5 percent gain.
Abe jump started the economy last year with reflationary policies dubbed Abenomics. Record easing by the BOJ helped to push the yen down 18 percent against the dollar last year, boosting corporate profits and fueling economic growth.
The government in December approved a 5.5 trillion yen extra budget to offset the higher sales levy, which will rise to 8 percent in April from 5 percent now.
Sentiment Falls
Companies and consumers have rushed to make purchases before April, with industrial production rising the most in January since June 2011 and retail sales gaining at the fastest pace since April 2012.
Businesses are bracing for a drop in economic activity after the sales tax rise, according to a survey released today by the Cabinet Office.
Economic expectations of people such as taxi drivers, supermarket managers and restaurant workers fell in February by the most since March 2011, when the economy was struck by a record earthquake and tsunami, the Economy Watchers survey showed.
The expectations index fell to 40 from 49 in January, reaching the lowest since April 2011 and erasing all the improvement made after Abe took office in December 2012.
The BOJ, which concludes a two-day board meeting tomorrow, will keep its main policy target of expanding the monetary base at a pace of 60 trillion to 70 trillion yen per year, according to 33 of 34 economists surveyed by Bloomberg News.
Meiji Yasuda Life Insurance Co. forecasts the central bank will add to its record stimulus tomorrow, predicting a boost in the target range to 80 trillion to 90 trillion yen.
Thirty-eight percent of 34 economists forecast the BOJ will add to easing by the end of June, according to the Bloomberg survey, which was conducted from Feb. 26 to March 4.
Prolonged deterioration in Japan’s current-account balance would erode the nation’s position as a net creditor, one of its main credit strengths, Moody’s Investors Service said last month in a report.
Goldman Sachs Says “Sell Gold”. Is It Time To Load Up?
I am not a gold bug, not by any measure, but the yellow stuff is starting to look very attractive here. Particularly, when you take into consideration the fact that the US Economy and it’s financial markets will go through a severe recession where the FED will be forced, once again, to flood the market with cheap credit. Is gold in a simple technical bounce or is it signalling the trouble ahead?
That is inconsequential for our purposes. What is important here is that the gold is reversing it’s technical downtrend. In all categories. Miners, ETFs and the metal itself. While the short term trend is already pointing up, if the gold is able to break above $1,400 over the next few months it will give us a clear indication that the trend has reversed. So, while the Goldman Sachs is telling you to “Sell”, I am telling you to put it on your watch list. The upside here can be significant.
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Goldman Sachs Says “Sell Gold”. Is It Time To Load Up? Google
Gold Most Bullish Since 2012 as Goldman Sees Slump
Gold is getting more attractive to hedge-fund managers even as Goldman Sachs Group Inc. says the metal’s surprising rally this year will soon fizzle.
Hedge funds and other speculators expanded bets on higher prices for a fourth week in New York futures and are now the most bullish since December 2012, government data show. While gold is off to its best start in six years after topping $1,350 an ounce, Goldman’s Jeffrey Currie says chances are increasing that prices will slump to $1,000 for the first time since 2009.
This year’s 12 percent rally came amid signs of weakening U.S. economic growth and Russia’s incursion into Ukraine. Investors who shunned the metal in 2013 are once more buying the biggest exchange-traded product backed by gold, with holdings poised for the first quarterly gain in a year. Hedge funds also are adding to bullish wagers on sugar, corn and coffee, driving combined wagers on a commodity rally to a record.
“The gains have been impressive,” said Chad Morganlander, a fund manager with Stifel Nicolaus & Co Inc. in New Jersey, which oversees about $150 billion of assets. “There’s been a perfect storm of geopolitical uncertainty as well as growth scares here in the U.S.”
Weekly Gains
Gold futures in New York climbed 1.3 percent last week, the eighth advance this year. The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.6 percent, while the MSCI All-Country World index of equities increased 0.3 percent. The Bloomberg Dollar Index, a gauge against 10 major trading partners, slipped less than 0.1 percent and the Bloomberg Treasury Bond Index dropped 0.7 percent.
The net-long position in gold climbed 3.8 percent to 118,241 futures and options in the week ended March 4, U.S. Commodity Futures Trading Commission data show. Short holdings declined 15 percent to 26,321, the lowest since October. Net-bullish holdings across 18 U.S.-traded commodities rose 9.7 percent to 1.59 million contracts, the most since the data begins in June 2006.
U.S. service industries, which range from health care to finance and make up almost 90 percent of the economy, grew last month at the slowest pace in four years, data from the Institute for Supply Management showed March 5. Holdings through gold ETPs rose in February for the first time since 2012. Assets in the SPDR (GLD) Gold Trust, the biggest such fund, are up 0.9 percent in 2014 after a 41 percent plunge last year that wiped $41.8 billion in value.
Billionaire Paulson
Billionaire hedge-fund manager John Paulson, who holds the biggest stake in SPDR, posted gains in his firm’s main strategies in February partly as bets on gold paid off.
Russia said it may cut off Ukraine’s gas supplies, and the U.S. has threatened more sanctions after authorizing financial restrictions last week. The escalating tension also drove up prices for energy and grains amid concern that supplies would be disrupted.
The turmoil in Ukraine doesn’t change Goldman’s bearish view on gold, and the recent weakness in the U.S. economy is probably weather driven, not “real deterioration,” said Currie, the bank’s head of commodities research. Lower mining costs mean it’s more probable than it was six months ago that prices will drop below $1,000, he said in an interview.
February Payrolls
American employers added more workers than projected in February, indicating the U.S. economy is starting to shake off the effects of the severe winter weather, government data showed March 7. The China Gold Association says demand in the nation is poised to drop to 250 metric tons this quarter, down 17 percent from a year earlier.
“Some kind of middle-ground solution in Ukraine is probably the case at some point,” said Rob Haworth, a Seattle-based senior investment strategist at U.S. Bank Wealth Management, which oversees $115 billion. “For the two big commodities, oil and gold, we’ve probably seen relative highs for the next month. Once this geopolitical risk premium ebbs, I don’t see a lot of fundamental speculative support to push gold a lot higher.”
Bullish bets on crude oil rose 2.2 percent to 346,469 contracts as of March 4, the most ever in records going back to June 2006, government data show. West Texas Intermediate reached $105.22 a barrel in New York March 3, the highest since September. Russia is the biggest energy exporter.
Frigid Weather
Frigid weather in the U.S. boosted demand for heating fuel, while supplies of natural gas and coal will decline to six-year lows by the end of this month, government data show.
Speculators switched from a net-long position in copper to a net-short holding of 2,567 contracts. On March 7, futures tumbled 4.2 percent in New York, the biggest drop since December 2011. China’s first onshore bond-market default raised concern that demand will ebb in the top metals consumer.
While Goldman and Citigroup Inc. expected raw materials to drop this year, extreme weather drove rallies in everything from coffee to soybeans. Seventeen of the 24 commodities in the GSCI index climbed in 2014, and eight of them have posted gains of 10 percent or more.
A measure of speculative positions across 11 agricultural products rose 22 percent to 855,764 contracts, the CFTC data show. That’s the highest since September 2012.
Speculators almost tripled their net-long position in sugar to 64,740, the highest since December. Futures climbed for six straight weeks, the longest rally since 2011, amid drought in Brazil, the biggest grower and exporter.
Brazil Drought
The prolonged dry spell and excessive heat have also erased prospects for a record coffee crop in Brazil, the top producer. Prices for arabica beans, the variety favored by Seattle-based Starbucks Corp. (SBUX), surged 81 percent since December. Investors increased their net-long position to the highest since May 2011.
Bullish bets on corn swelled 81 percent to 158,122 contracts, the most in almost a year. Futures reached a six-month high in Chicago last week. On average, U.S. export sales in the past four weeks have gained fivefold from a year earlier. Urkaine’s escalating turmoil is signaling that grain buyers may be forced to purchase more American supplies, according to the U.S. Grains Council.
Investors’ hog holdings rose 6.3 percent to 69,642 contracts, the highest since November. Futures surged 32 percent this year, reaching a record March 5. A deadly hog virus continues to spread through the U.S., killing piglets and limiting the outlook for pork supplies.
“You had factors influencing commodities that weren’t expected, the weather with the energies and the grains, and then geopolitical risk with the gold and the grains,” Donald Selkin, who helps manage about $3 billion as chief market strategist at National Securities Corp. in New York, said in a telephone interview. “Weather has been so crazy this year. The question is, can prices keep going up?”