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8.28.2016 - Financial Intelligence Report Bookmark

Global Control?
Before we get into today’s chat, I want to mention something. On Wednesday I did a piece about preparing for the possibility of a disaster, where in your tap water is no longer available. Many don’t understand that in a true disaster, often the pumps are shut down, OR, there’s no power to operate them. So finding and filtering water is a very important part of being prepared.
I wasn’t however prepared for the amount of people that wrote in to thank me for the article, as they’d never seen or heard of the products that I put links up for. Many suggested to me that they had already ordered some life straws and “big berkey’s.” To which I say... BRAVO! Technology is a wonderful thing and being able to take pond water from your local retention pond and turn it into clean drinkable water is a blessing indeed. I’ll continue to run some “prep” articles for you all as 1) it is Hurricane season, 2) everyone should have some level of preparations, and 3) the way the world is going, who knows if some terrorist group or what have you finds a way to knock down the grid for a while. So stay tuned.

For now, I want to run something buy you all that has some interesting consequences. As I’ve been showing you for the past several months, the Central banks of the world have been the ONLY thing that’s been keeping our markets and our economies moving along. Take out the CB’s and we’d crash. Period. Now for many of you, you think of that for a minute and figure, “well that’s fine, they’re picking up the slack until the economies heal”. Well that would be a fine retort, if indeed the economies were to heal. Unfortunately, they won’t.

First let me run some facts by you. According to Bank of America, the Central banks now own 25 TRILLION worth of financial assets. There’s been 667 interest rate cuts by global central banks since the Lehman event. There’s 12 trillion in negative yielding global bonds, and 8 trillion in negative yielding sovereign debt.

With CB’s owning 25 trillion in financial assets, they own more than the entire GDP of the US and Japan combined. Now we hear that the Japanese Pension fund, will probably be the biggest owner of all Japanese stocks by late 2017. We know that the Swiss National Bank holds 60 billion worth of US stocks and is adding more. Our Fed’s don’t tell us how much stock they own, but they have a very comfy relationship with the Citadel folks, and it doesn’t take much thinking to connect the Fed’s nefarious buying through Citadel.

While it is one thing to buy publicly traded stocks, it is another when they’re buying up Corporate Debt also. Consider the ECB over in Europe. They are now buying Corporate debt paper, Corporate “bonds”. With Draghi printing and buying 85 billion Euro’s worth each MONTH, you can imagine how much they’re going to end up with.

Which brings me to the point of this article. Are they indeed doing all this buying of stock and Corporate paper to Prop the stock markets up...or...are they actually involved in taking over? Could this be the way that the “state” takes control of all private companies? Don’t laugh, don’t roll your eyes. Think long and hard about this folks.

Look at the Bernie supporters. They did not blink an eye when confronted with the idea that Bernie’s a Socialist. When questioned, many of them didn’t or couldn’t care less if the “State” took over everything, just as long as they got their free college and more Pokeymon’s to chase. In fact, has not the actions of our Government actually looked a whole lot more like a socialist/communist operation, rather than a free market republic?


For as many years as I’ve been writing this rag, one of the themes has always been that the utopian version of many of the elite’s is a one world type government. One world money, one world UN dictatorship, etc. Well, to get there don’t they have to take down the freedom’s, take down what was once considered normalcy and eventually “take over” all aspects of our lives? Indeed. And if you look at the communist manifesto that they released back in 1963, You’d be amazed at how far they’ve come and how close to their original goals.

While I’m not going to reprint the entire piece, you can look it up easy enough by the following information:

Communist Goals (1963) Congressional Record--Appendix, pp. A34-A35 January 10, 1963

In that list of 45 proposed goals, about 33 of them have been achieved. For instance:

9. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces
21. Gain control of key positions in radio, TV, and motion pictures
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policy-making positions.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.

On and on it goes. This one seems fairly timely considering Mr. Comey’s actions recently as concerning Hillary’s Email....35. Discredit and eventually dismantle the FBI.

As you can see, while this was written in 1963, and outlined the goals of the Communist ideal, and as you can see they’ve achieved a lot of their goals, there’s some things that they would still like to implement. Socialism/Communism demands that the state takes over private companies. But there’s a problem. See, in a place like Venezuela some nut can just announce “we are nationalizing all the oil companies and all the food companies” and no one shouts back. But in the US or in Europe, there’s some manner of push back.

Yet are they not “taking control” of things now? How long will it be before Draghi owns so much corporate debt that the “state” actually owns the lions share of many companies? How long before the “state” of Japan owns so much company stock that they are a controlling factor? Same with the Swiss, etc?

There’s already no way out of what they’ve created. As I’ve mentioned so many times, there has to be a global reset, because debts that can’t be paid back, won’t be paid back. Where’s the exit plans for this 25 trillion in Central bank assets? I see none. Where’s the end of the printing? I see none. All I see is desperate Sovereigns buying up public assets.

Could we be looking at a situation where as the world works closer to turning away from the US dollar as the sole reserve currency, and as implementation of the SDR’s becomes more widespread, could it be that Central banks are buying up so much stock and paper in private companies, because that “value” will be used to judge each nations weighting in the SDR’s?

Consider Japan. What value do you place on them as a nation that’s in dire debt, has virtually NO natural resources, and an aging population? When being evaluated for their weighting in a global currency, would not the inclusion of the “ownership” of so many private companies help their cause? Indeed.

I’ve mentioned something to you many times that needs mention again. Job one at the central bank is NOT to produce employment or steady inflation rates. Job 1 is to keep themselves in power. Everything else is subordinate to that rule. Having backed themselves into a situation where 25 trillion has not fixed anything, then rest assured 50 trillion is on the way. Many times there’s so much QE, there’s not enough bonds to buy. They’ll buy up bonds, stocks, hell they’ll buy Mortgages again if they have to.

I only know of 3 ways that the future unfolds. One is that the major nations agree on a total “Bretton Woods” style reset and debts get annulled, and currencies get devalued. Another is the “Event” an “event” so big that it changes everything. (Think war folks, as tensions in the Ukraine/Russian border continue to heat up, and now Turkey is flirting with Russia...a NATO country with nukes is choosing sides here....) and then choice 3 is that they coordinate and just continue to buy up everything, to an end where the nation state owns just about everything.

None of these are wonderful choices. But we’re in too deep. We can’t just “work this off”. Sorry that’s impossible. Something quite major has to happen. I think they desperately want “the event”. Lord knows they’re pushing for it daily. We are literally one “mistake” away from a hot war with another nuclear nation, and we’re pushing for it. Insanity reigns. If they can’t get the event, I think they’ll keep buying up anything that isn’t nailed down, until they work out a global reset. That’s my guess folks. I hope they don’t get their event “that changes everything” and with China’s help we get a true Global monetary reset instead. Because if we don’t get a reset, or their precious “event” then in 10 years the state will have controlling interest in everything. Not very inspiring is it? No and I’m sorry. Buy more gold.

The Market....

Friday was the day Yellen and her actual boss Stan Fischer were to release statements at the Jackson Hole Wyoming “meeting”. Heading into the open the futures were flat to slightly red. Then “boom” out of nowhere the DOW soars for 100, and the S&P soars for 12. What’s up with that? My guess is that they got ahold of the printed statement, saw more “blah blah” about interest rates and the algo-bots got excited.

However, as the day wore on and we got to hear from the Fed heads, the air came out of the market and soon enough we were NOT up 100, we were down 65 and looking ugly. This is what I wrote to the Insiders Club members at 1 pm...

Obviously I'm not looking to buy anything. If we close under 2175, and that looks like it might happen, then we should see 2160 - 2163 as the next support. We're at 2169 now. Sure anything can happen and they rush in and save this, but hey... I'm not that desperate that I need to 'hope' this market holds.

So what did the S&P do? It faded right down to 2160.39 and then bounced. Just like “magic”. When the final bell rang we were at 2169 again. Now here’s the issue. For 14 straight sessions we were in a “box” with a floor of 2175 and a high of 2190 (closing basis) Then Thursday we lost the bottom of the box, closing at 2172. Friday, they couldn’t reclaim it. We closed at 2169.

What’s it all mean? Well, it could mean several things. One is that the “box” has expanded and they’re going to try and keep us in a range of 2160 to 2190. Or, it could mean that there’s enough softness to where we lose that 2160 support and then the next areas of “minor” support would be at 2157 and 2152. However, if we were to lose 2152 on a closing basis, I can make the case for 2120.

The main point is that we’re heading into September, which is typically a tough month. So as funds continue to withdraw money ( another 6 billion left equity funds) the Central banks will determine where they’re willing to let the market drift to. If they do a coordinated buy, we’ll be back to 2190 in no time. If they don’t, we’ll fade in stair step fashion.
What about upside? Isn’t it possible they just push this market ever higher? Again it’s all about the CB’s. Consider this headline...

Illinois Warns Of "Crippling Tax Hikes", "Devastating Impact" If Largest Pension Fund Admits Reality

That’s REALITY folks. Things are pretty messy no matter where you look, and stocks are already at nosebleed levels. So the only way this market makes new highs, is if the Swiss, the Japanese, the ECB and the FED continue to buy stocks. Period. Will they? Probably. But It almost feels like they’re out of the ”New all time high” game and into the “let’s just keep it steady” game.

I sold a lot of positions Friday and took my gains. I got 3+ on GS, a buck and change on half my MSFT, sold flat on NXPI and lost a buck on EA. Overall in this choppy mess, a decent take.

Until we see if 2160 is going to hold, I’m going to sit on my hands for a while and just watch the action. I’d be lured into taking some trades if we get back over 2175, but that’s to be determined. Good luck out there folks.

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