Monday, February 25, 2013

Divergences everywhere, Elliott Wave Pattern, and record complacency and bullishness portend swift decline

With the textbook throw-over after an ending diagonal pattern having completed, record bullishness,  the patterns in the U.S. Dollar, Commodities, and precious metals, the situation could not be more dangerous and deflationary.

First, the U.S. Dollar. The U.S. Dollar index bottomed in March 2008 at 70.70, and, even with all the central bank inflation,  has not  even taken out that low. And, the Dollar index now has in place a massive divergence with equities since the Spring of 2011.

Next, Commodities topped in the Spring of 2011 commensurate with the bottom in the U.S. Dollar, and have been diverging with equities ever since.

All of these divergences are big warning signals, which, when combined with record bullish sentiment, a VIX that looks ready to explode to the upside (has already begun), and the longer-term phasing in equities with a cycle wave b wave labeling, portend a massive deflationary move in a cycle wave c down to complete supercycle wave (a) down of the Grand Supercycle Bear Market.

Further, I want to address one more thing. Many people say that there is a big decline coming, but it will be in real terms only,and won't be in terms of "worthless U.S. Dollars" becasuse "Helicopter Ben" will just keep printing money. It's not that simple. The FED is NOT "printing money". They are adding reserves to the banking system, and it takes a willing populace to  borrow and spend those Dollars (velocity) and willing investors to take the money and speculate with it. With speculation at unheard of levels already, and with social mood about to reverse dramatically from a decade-plus long topping process, the outcome should be a stock market decline of greater than 90% in nominal terms. For more on this discussion, please listen to the interview I conducted with two other gentleman on Friday, February 15, 2013, which can be found in my post below.

Monday, February 18, 2013

Frank DeBaere

I would like to introduce Frank DeBaere. Mr. DeBaere is a resident of Belgium and an extremely intelligent individual. In our interview conducted between Frank, Tim Wood and Myself on February 15, 2013, we discuss the highly fragile nature of the global banking system. Specifically, Frank gives us a first-hand perspective on the european banking system that is as much of a Ponzi Scheme and house of cards as the rest of the global financial system. Stay tuned for more highly informative and thought-provoking interviews.

Click Here to Listen to Frank DeBaere, Tim Wood, and myself discuss the state of the markets

Wayne Patton

I would like to Introduce Wayne Patton. Mr. Patton is a Florida-based Asset Protection Attorney. Asset Protection is essentially legal planning that places assets beyond the reach of future creditors. Wayne is extremely knowledgeable about the legal system and can help you safeguard your assets against potentially devastating lawsuits. Given where the financial system is headed, now could not be a more important time to take proactive measures not only to protect the value of your assets, but to protect your hard-earned money from the broken legal system that exists today. Please find below a link to an interview I conducted with Tim Wood and Wayne Patton on January 11, 2013.

Click Here to Listen to the Interview