I started out today planning on creating a completely different post having to do with our biggest problem in today’s world—usury. It’s led to a finite few gaining financial control over the world to a point that they have been dictating the narrative for almost a hundred years. Well, longer, actually. But it’s easier to dwell on this most recent period, from the creation of the Federal Reserve, which was the lynch pin for the Rothschild-based banking cartel getting their tentacles into virtually every other aspect of the economy around the world.
Since 1913, for example, the western nations have experienced inflation of 2400% (that’s the same thing as saying our dollar is worth 4% of its value back then). Since as recently as 1974, inflation has risen 500%. These are figures that are hard to beat historically.
Right after I published this chart, zerohedge posted a story about the elephant in the room. The cited a statement by Fed. Gov. Jerome Powell: “Low rates can lead to excessive leverage and broadly unsustainable asset prices — things that we watch carefully for and do not observe at this point.”
The US stock market since 1974 (in Elliott Wave terms, bottom of the fourth wave of the terminal five-wave rise we’re finishing off now), based on the DOW performance, has risen 4000% (or 40 times its value at that time, of about $500.00). The value of money and of assets (including paper assets, like shares) is going to start heading in the other direction (deflation). It can be argued that cash has already turned the corner. It won’t be long before everything else follows.
I can make a very good case that the acceptance of usury throughout the West runs in cycles that parallel natural cycles of varying lengths. I’ve been able to tie its rise and fall, along with economic change, to each 500 year climate cycle. But, we’ll save that blog post for another day. I mention it here only because it’s the backdrop to the “War on Intelligence” that’s playing out in the mainstream media.
I should stay away from television talk shows on Sunday mornings!
The Liberal Media’s Lack of Objectivity
My achilles heal of turning on the tube to watch Meet the Press is a double-edged sword. I watch to get a sense of what the public thinks of US politics at the moment, but it seems to be so far removed from reality right now, that I find it difficult to watch. This morning was another great example of the blindness of US mainstream media.
Chuck Todd, the host, was surrounded by the usual Hillary-enthralled pundits with one exception, Rick Santelli, who broke rank to suggest that perhaps the current propaganda storm against Russia was based on conjecture only. Oh, heresy! And, of course, it sparked a very small twitter reaction, which you can also read in the article here. Make sure to also watch the full interview with Kellyanne Conway at the bottom of that post.
What’s stunning to me is that this show can be so out of step with the perception of the American people, as a recent poll of 84,000 of them shows. The overwhelming majority (83% to 17%) believe Julian Assange over the US intelligence establishment. At least it restores my faith in the intelligence of the American populace and reinforces the current movement of the “revolution dial” that I’m so sensitive to. We’re so obviously near a top.
It’s going to be interesting watching the lights finally come on in the mainstream media. I think the lights are well on at the top, but down on the ground level, with the troops who are the news readers and hosts, judging by the jaws dropping during today’s show, they seem to me to have bought the narrative of the elites hook, line, and sinker. I find that stunning.
After all, they have the same access to the internet that I have.
However, their perception will change. Oh, how it will change …
As a result of this bombardment of my senses this morning, I sat down and concentrated on listing alternative news sites for anyone interested in knowing what’s really going on out there. You’ll find them on my links page here and this afternoon I’ll put a links list in my sidebar so it’s more readily available.
I’ve also added a few recent books I’ve read to my list of recommended reading here.
The Cracks are Starting to Show
From my list of predictions from last weekend, I was pleasantly surprised to see movement in some of them. The questioning of the legitimacy of the U.N. (Israeli and Filipino leaders) has hit the headlines, as has a move to audit the Federal Reserve (Ron and Rand Paul). There’s actually a bill now introduced in Congress, which may have legs.
The scary part is that this action is way too late to have any kind of positive affect. Once the market starts down, the dominos will start to fall very quickly and neither the Federal Reserve nor the government is going to be able to act quickly enough to stop the financial and social destruction.
I also expect the US medical system to completely implode. I say that because I’m worried about our medical system in Canada, which I’ve relied on for a full 50 years now (not of my own choice) and is considered a relatively stable system, relative to the other government-funded systems around the globe. The US system is already starting to fall apart (not that it ever was a great shape), so I expect the worst very early on in the market drop.
The move to shut down cash will ultimately fail. We see the terrible effects the Indian attempt to limit cash is having on their economy. It’s melting down quite rapidly. It’s time to start thinking about squirrelling away a bit of cash for the short to medium term. I’m convinced the India experiment is just that—perpetrated by the banking cartel—and it’s not going well. But the attempt to limit cash is bound to have its influence in other economies as the banking cartel’s fear increases.
Credit will eventually be the bigger issue. When we get into 2018, I believe credit cards will begin to shut down. We have an economic and financial system built on debt and when deflation hits and the market starts down in earnest, it will only be a matter of time before mortgages default in the thousands. It takes a while for them to work through the system, but eventually, not only will the amount of debt balloon, but the effect of deflation on the value of money (it increases) will cause debt to explode. Watch for more bank failures than ever before, but I think the beginning of 2018 is when the fan will hit to the point where it will just grind to a halt.
Thank Goodness for Cycles
My fascination in all this is the fact that nature has a natural process for cleansing the world; washing all the crap off the fan and bringing the human race back to reality. It’s happened so many times before and the parallels are compelling.
The Gutenberg printing press was invented about 1440. The internet network began in the 1960s with the development of Telenet. That was 520 years after the printing press changed the world. The Renaissance and Reformation followed shortly thereafter. The masses in both cases were given access to more knowledge than they’d even had before. The “Great Financial Revolution” as I dub it, has already begun but we’re going to see it up “close and personal” starting in the next few months. The truth is going to win out over any attempts by the elite to form a New World Order. (yes, it’s still portrayed as a conspiracy theory in Wikipedia)
We already know that we humans are affected by exogenous forces. Electromagnetic waves affect us on an ongoing basis; the science is there. The moon regulates our biological clock, which is based on a 25 hour day (on revolution of the Earth). Women experience their menstrual cycle based on a 28 time frame.
The lunar nodal cycle at 18.5 years roughly is a rainfall/drought cycle and the real estate cycle, which I’ve written about here. Wars have cycles. The Elliott Wave Principle is a cycle. Many of you trade by lunar and other planetary cycles. Data tells us the month you were born has an affect on your life span. And on and on and on.
People the world over are waking up. As the climate changes and become wet and colder in the short term, they will act to create major social change around the planet. That’s born out by the history of cycles since the beginning of recorded history.
These are exciting times, but also a time to prepare for the challenges along the way. It’s time to plan for winter: food, water, money, safety, and shelter from the elements (natural and otherwise).
I was asked the question in the past two days about the next wave up in gold and how long I thought it would take. After reflecting on the pattern that we’re in the midst of right now (an ABC corrective wave), it occurred to me that the answer will probably serve as a time guideline for the larger US market in terms of the drop we’re about to undergo.
Gold is just finishing the B wave of a three wave corrective wave pattern. The A wave took 8 months to trace out, while the B wave (not quite done yet) looks like it will take 6 months. The C wave should be at least the same length as the A wave was and should last at least as long. So let’s give it 8 months, as well. That takes us to near the end of 2017 for the first set of waves down in the US market (ending at about the 50% level from the top), if they move in tandem, which I expect to a great extent, they will.
Projection for a Top
Based on the ending diagonal we’re currently in (which is the pattern playing out in all the major US indices), I’m still projecting a final top to our five hundred year set of Supercycle waves early in the New Year. It will take a topping of the third wave of the ending diagonal to give a more accurate prediction of the date, as the fourth and fifth waves should take longer than the third wave by at least three quarters. The third wave up has taken 8 weeks so far.
NEXT Federal Reserve Annct: February 1, 2pm EST
Here’s the latest daily chart of ES (emini futures):
We’re still heading up, but we only have one subwave to go. On Friday, December 30, 2016, ES traced out the end of an expanded flat (a 3-3-5 configuration) and then an ending diagonal at the tail end of that. It was a dramatic end to a B wave and I made the call that we were going to a new high. We’ve reached that high, but we’re not quite done yet. We have another subwave to go before we complete the third wave of the ending diagonal.
Through fibonacci ratios, I’m projecting a possible top for the third wave of the ending diagonal for ES of 2292.
Note the extreme drop-off in volume for this wave (it’s the purple indicator line at the bottom of the chart). Volume is almost none existent. It should surge in the fourth wave down and we should get a volume surge during the first part of the fifth wave.
Here are the rules going forward:
- Wave 3 must be shorter than wave 1 and reach a new high.
- Wave 5 must be shorter than wave 3 and reach a new high (usually it does a “throw-over”—extends above the upper trendline defined by the tops of wave 1 and 3, but it is not necessary.
- Wave 4 must be shorter than wave 2 and must drop into the area of wave 1.
- All waves must be in 3’s (zigzags).
- The trendlines of the ending diagonal must converge.
Summary: We’re completing the third wave of the ending diagonal before zigzagging to the top of the largest bubble in history. I expect a sharp drop in wave four of the ending diagonal perhaps later this week. The long awaited bear market is getting closer.
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