“What if the banks stop loaning you money to make your payments on your loans? What happens then?”
Economics and War
In 2011, Saudi Arabia, Turkey and the U.S. State Department made a deal to take out Assad in Syria with the intention of creating a new Sunni government in Syria that would be sympathetic to Saudi Arabia’s circle of influence.
Well everything was working fine towards that goal until Russia stepped in and turned the tide of the war around. So now we have the NATO countries of Saudi Arabia and Turkey, who don’t want to lose the momentum they’ve gained, poised for a ground invasion of Syria with indirect help from the U.S.
Saudi Arabia has amassed up to 350,000 troops on the southern border of Syria and Turkey is staging troops on the northern border of Syria. Russia has stated that if these countries invade Syria, Russia is threatening to use tactical nuclear weapons to protect their own troops and the Assad regime.
This could escalate very quickly into world war, as the current players are Russia, Syria and Iran vs. Saudi Arabia, Turkey and possibly the U.S., although the U.S. has stated they will not be drawn into this war even though they are the ones who started it. Fat chance!
Saudi Arabia has stated that they have nuclear weapons and we know Russia as one of the largest nuclear player’s and it’s also believed that Iran already has nuclear weapons, so this could turn into a real cluster if these NATO countries invade this March.
This invasion could start at any time and it could usher in the beginning of World War III. This is just another catalyst in the ongoing systemic collapse of the global economic system.
Encompassing a Series of Events
The crash of 1929 was not a single event, as most people think, but a series of events that happened over many months until the U.S. was in a depression. I believe that’s what’s happening in the current global economic system, things are getting worse each month until eventually we are going to find ourselves in the depths of depression.
This global collapse has been happening for many months and has many more months to go. I do believe it will accelerate this year. Whether we see a stock market crash or just a gradual decay of the markets until they hit bottom remains to be seen.
There are many catalysts that could create an overnight crash, such as war mentioned above, but there has been a gradual decay in global economic activity, as witnessed in China, the price of oil, huge bank losses and global trade coming to a virtual standstill.
We are teetering on the precipice of a systemic collapse of the entire system. All it will take is one domino to fall and the rest will follow. Watch for one of the large banks to fail, like Deutsche Bank, Citibank or Credit Suisse, many of the largest banking institutions are in very serious trouble.
Once the dollar decline begins to accelerate, you will see gold and silver take off. This will be a signal that things are coming unglued and that investors are losing confidence in the system. Once confidence is lost, that will be the endgame.
Our government will become insolvent and those dependent on the government to live will be the first to revolt. Events could unfold quickly and we will see social unrest as the government loses control. Martial law will be forced on the masses and who knows where that will lead?
I think it’s important for my subscribers to see the whole picture of what is transforming right in front of our eyes, yet most ignore it. Things will accelerate this year, be prepared.
In past reports I mentioned that I thought the manipulation of the gold and silver markets was waning, but unfortunately, I was wrong. The extreme hits gold took in the paper futures market last week during option expiration was blatantly obvious and today the commercial banks are trying to cover their short positions and this chart below shows the blatant manipulation in premarket hours.
This is the 5 minute chart of gold. Between 2:30 AM until about 4 AM, the price of gold soared all the way up to 1276, then the intervention started and drove the price down 25 points this morning, allowing some of these panicked short sellers to cover before the open.
The good news is that these manipulations are short lived. The markets have bounced back with just as much force after the manipulators were unable to hold it down. In fact, we are seeing divergence in the price of gold in relation to the U.S. Dollar.
It used to be that every time the dollar bounced upward, gold would retrace and vice versa, but today we are seeing gold move up along with upward movement in the dollar. This is creating divergence in the gold market and it’s a bullish sign for the future of gold moving forward.
To prove that a new bull market in gold is underway, take a look at these charts below.
Above is the daily chart of gold showing that the price has surpassed the 100, 200 and 400 day moving averages. In addition, a classic cup & handle pattern has formed and there was a breakout to the upside on Thursday.
This should create a massive short squeeze because according to the COT report, commercial banks are at all-time net short positions in gold. This always caused a significant retrace for gold in the past, but this time gold is acting more bullish and it seems that more of the mainstream is getting onto the gold bandwagon. I expect a huge surge in gold in the coming weeks as these commercial shorts cover their positions.
This is the weekly chart clearly showing a breakout above the downtrend line extending from the 2011 highs. The next major target should be around 1,400 and then we will see resistance at 1,790 and 1900.
Stock Market: (SPY) (QQQ)
The DOW fell approximately $2,400 points since its peak in May of 2015 and now has rallied back towards the 61% Fibonacci retracement level.
Every rally creates a false ray of hope for many investors who still have faith that the Fed will juice this market back to new highs. Investors still expect the return of an everlasting bull market and they think this is simply just a temporary correction.
Unfortunately, this recent rally is providing a false sense of security and has created a ‘Bull Trap’ for the ever hopeful mom and pop investor. Now would be the time to sell into the rally just like the smart money is doing. This rally should stall as it gets closer to the 61% Fibonacci level and then make lower lows.
Most of these investors will ride this rollercoaster down to the very bottom and this is why the largest wealth transfer in history will take place over the next few years.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
We’ve had a slight breach of the weekly downtrend line in oil. Normally I would consider this a bullish indication, however, with global trade plummeting and demand for oil at all-time lows, I can’t commit to a long position here without a little more confirmation and even if we do have a bounce here, I think it will be short term. Based on the fundamentals, I just don’t think the bear market in oil has completed yet.
Financial Stocks: (XLF) (IYF)
Looks just like the S&P.
Commodities: (FCX) (JJG) (DBA)
Today we had a gap up in the commodities sector. This is a bullish sign for commodities, but I would wait for this gap to be filled before entering any positions. I expect a retrace back to fill the gap on Monday or Tuesday and that’s when I would enter.
US Treasury Bonds: (TLT)
As expected, treasuries are dropping as stocks go up.
(SLW) January 2017 CALLS
(GDX) January 2017 CALLS
(ABX) January 2017 CALLS
(FNV) January 2017 CALLS
(RGLD) January 2017 CALLS
(SPY) December 2016 PUTS
(IYF) August 2016 PUTS
Caught On Tape: U.S. Test Fires Nuclear ICBM, Warns "We Are Prepared To Use Nuclear Weapons"
Of course, the #1 unspoken rule when launching ICBMs is to never explicitly say why you are doing it. By breaking said rule, it marks a much greater escalation in international diplomacy than merely test firing the nuclear-capable ballistic missile.
Satyajit Das: This Is Why You Can Expect Another Global Stock Market Meltdown
The conditions for a crisis are now firmly established: overvaluation of financial assets; significant leverage; persistent low-growth and deflation; excessive risk taking reliant on central banks for liquidity, and the suppression of volatility.
Is a False Flag About to Be Used To Justify A Massive Ground Invasion Of Syria?
Throughout history, governments have staged attacks on their own people in order to place the blame on their enemies. These kinds of attacks are known as “false flags”, and they are often used to justify military action.