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4.26.2015 Financial Intelligence Report Bookmark

The Cashless Push

In our last letter, we were talking about “cash” and its future. While there’s no question that  the elite’s ultimate desire is to have a completely cashless system for us, you have to understand that the elites move in “long term” timelines.  Things usually progress in steps. They make a statement, then make a move and then wait to mop up the mess the move had made. Then another statement, another move and so on. This can take decades.
 The Cashless Push

In our last letter, we were talking about “cash” and its future. While there’s no question that  the elite’s ultimate desire is to have a completely cashless system for us, you have to understand that the elites move in “long term” timelines.  Things usually progress in steps. They make a statement, then make a move and then wait to mop up the mess the move had made. Then another statement, another move and so on. This can take decades.

I found it interesting that as I was talking about cash and how banks don’t want you to have it, I was informed by several readers that JP Morgan Chase is sending out new lease agreements for the owners of safe deposit boxes and in the new agreement it reads: "Contents of the box: You agree not to store any cash or coins other than those found to have a collectible value."

NOTE>  I have not personally seen this memo, but it is being reported on several well traveled web sites, so I have to think it has a pretty good ring of truth to it.

One thing I can however tell you is that the elites have been waging a war against cash for years and now with all the make believe terror going on, they’re using that as a perfect excuse to move us away from cash into a cashless society. I wrote about this a couple years ago when bitcoin was the new rage.

Cash is something of an endangered specie. If you want to take out a large cash withdrawal, say over 8K dollars, often you have to call the bank days ahead so they can “order” the money. Yes you read that right, many banks simply don’t have that awful much cash on hand and if they get too much demand for it on a single day, they’d “run out”.

In France they’ve declared that because the latest so called terror event utilized cash to buy their equipment; that they would limit the citizens to how much they can get out of the banks and how much they can actually spend. I kid you not.  Starting in September French citizens are limited to a maximum of 1K Euro’s for a cash payment.

Bill Gates is on the record saying that he’d prefer a digital currency especially in poorer nations because (and get this) “ poor people have more access to mobile phones and they could store their financial assets better than having cash at home”  What a bunch of hooey that is. What Billy Boy really means is that if every single transaction is digital, they know every single thing about that particular person. But that’s just the very beginning of the story.

Let’s suppose that they pushed this digital cashless society on us. The young people in this nation would foolishly flock to it because technology is all they’ve been raised on. They think cash is silly stuff for old folks. Well that’s because they’ve never been put in a tough spot in their life. I’m talking war in the streets tough like in the middle East. I’m talking bombed out city tough like Palestine. The average American 20 year old couldn’t live for a week in 60% of the world, they have no skills other than pushing buttons. They don’t fully understand yet just how ugly a world can indeed be. Yet a digital currency is pure evil of the highest socialist regard.

Instantly the ability to tax you to death becomes evident. A politician could propose new taxes for something and ten minutes later it is sucked right out of your “phone bank”. Every single thing you do would be known by someone. Suppose you wanted to buy your neighbors antique collection of vintage ladies corsets?  Maybe you don’t want some Government Issue whacko knowing that. But in a cashless society, someone does.  You cannot keep anything hush.

The idiot argument that some will make is that “if you’re not doing anything wrong like buying drugs, what’s the problem??”  The problem you moron is that there is no more freedom to be you, no privacy, no liberty. If you go to a book store and buy a book about Christian values, some atheist dog turd knows your belief system. If you buy a drug at the pharmacy to help with a skin rash, they can cross reference that to your medical records. Should your insurance fee’s be higher maybe? Someone will investigate that.

But the ultimate goal about a cashless society isn’t just that they can get their jollies watching what you can buy. It isn’t even taxing you when ever they want to. Have you noticed that virtually every digital transaction has a cost involved?  Whether it’s paying the phone company to provide you the transmission mechanism to actually “send” your payment, or the terminal you’ll need to take in payments, there’s costs involved in every aspect of digital.

The bankers WANT THAT COST. They want those millions and millions of tiny transaction fee’s. Think about it like this…there’s nations now where the interest rate is negative. If you pay for goods and services with cash, your cash costs you NOTHING to store under your bed. But if you keep it in the bank, they’re going to charge you for it. If we’re all completely digital, you have no choice but to keep money in the bank, and then PAY for the privilege.  

Finally of course there is the total control aspect of your entire life. While it sounds like a wild scene out of a sci-fi movie, the fact is that if we were completely digital, they could put a block on your phone/chip/card what have you, and you’re effectively dead in the water. If you can’t take in money on your card, or pay money out from your card, you’re life is going to grind to a halt.

I’ve seen the effects that going on a tax strike can have on a person. People that have decided they will no longer pay the IRS so the Government can use the money to bomb nations or what have you, find their lives upside down. They can’t open a checking account. They can’t get a paycheck. They have to do “under the table jobs and get cash payments”. Well what if there’s no cash??  See the point folks?

Obviously the centrally planned socialists of the world are orgasmic over the idea of a cashless, centrally controlled digital money. It is their perfect answer to the peons of the world whom they like to control. So you cannot ever just “brush off” the idea that this is the direction we’re heading because we ARE heading that direction. Apple pay is just the camels nose under the tent. This will grow and grow. But as I said at the start of this letter, things come in stages and we’re a long way from that situation. They have a lot of other things on the table to take care of first, and those things are in full motion.

I’ve been making mention of the IMF’s SDR program quite a bit since the 2008 melt down. The reason is pretty simple, they’ve been gearing up for China’s inclusion into the SDR basket for years now and I think they will have it done by October of this year. But a lot of folks think this is some new development, like a quick stop-gap they came up with as a band aid to the worlds ills. That’s simply not true. Way back in 1988 there were articles in certain financial publications suggesting that there’d be a new world currency system based on the SDR model.

Long term readers of our letters know that I’ve been talking about the global “reset” for a long time. But they don’t happen overnight and they don’t come all at once. It’s step by step. The first step was to load the world with so much debt that it is impossible to repay it. The next step is then to offer up the solutions to the problem they created. Well the next step is to remove the US as the ONLY reserve currency and start to replace it with the IMF SDR’s. This is why China has to be part of it, they are the first or second largest economy on earth.

Once they’re in; the campaign will be for more use of the SDR as an “equalizing” force around the globe, and they’ll start to revalue currencies in relation to the SDR. The cry will be “the US has been the only reserve currency for 60 years, and an unfair advantage to the rest of the world, so henceforth the SDR will become a new global standard in the practice of fairness”  I suspect some disruptions and problems with that, as transitions never go well. But that would just be the warm up pitcher for the push for a digital currency. That’s the one that has all the military running drills in our Cities. See? They have to go in steps, and digital currency won’t be their ultimate push until they get the other things in place first.

I know this all sounds too fantastic and dramatic and like a fiction novel, I really do. But then so did the idea of Central banks having a volume discount mechanism to buy futures in stock markets. But we found out….They do.  The point of all this and the point I’m trying to make in the last couple letters is this…they want your money. They want control of you. Negative interest rates aren’t normal, but they exist now. Bail in’s aren’t normal but they exist now. Changing the definition of ownership of money left in a bank deposit isn’t normal, but they did it. (  you loan your money to the bank when you make a deposit, it’s no longer yours)  Sentinel commingling customer money with theirs and losing it isn’t normal, but the court said it was okay.  On and on I could go, and NONE of it would have sounded legal or normal before it happened. It happened anyway.

Cash is important and they want to abolish it. You can believe that or be surprised by it when it happens, the choice is yours. I’m simply trying to help you understand the big picture and give you ideas you might want to consider when it comes to “what do I do with it?”  Stay tuned.


The Market…

One of the things that seems to come less and less frequently to me as I get older is the good old fashioned belly laugh. You know the one I’m talking about, where you literally laugh so hard that your belly starts to hurt. Well I had one of those on Friday.

It started with a conversation I had with Trader Rob over the lunacy we see during this earnings season. Companies missing earnings, missing revenue estimates but flying higher on the day because of an announced stock buy back. So, we wondered…why even bother with the whole idea of producing or selling anything. You could open a public “company”, put in one desk and a phone and simply sell debt. Take the money from selling debt and buy the company stock on the open market. Wash rinse and repeat.

Offer up high yield interest on the debt you sell, and continually push your stock price higher using buy backs, than your debt service costs. Ludicrous right? Well, unfortunately that is exactly what passes for Corporate America today. Sales are fading. Balance sheets look horrendous. Yet they continue to issue debt and buy up stock.

People continue to harp on this story of Corporate “cash on the sidelines” as they see cash, deposits and foreign deposits that have jumped about 700 billion dollars since the 08 crash. But they NEVER seem to harp on the fact that during that same time, corporate DEBT has surged by over 1.5Trillion.  

Anyway, I had told my Insiders members in mid afternoon session on Friday, that I fully expected them to push the S&P up and over the March 2nd all-time high so they could go into the weekend with trumpets blaring about how wonderful the market is. How sound the economy is. How great Obama’s policy is. How masterful the Federal Reserve must be.

They were having a hard time pulling it off. With just an hour left in the day we were several points below the all-time closing high. Were they going to miss out on the trumpets and kazoos?  Well, the March 2 closing high on the all important S&P was 2117.52.  When the final bell rang to close the session on Friday we were at 2117.69.   They managed a new all time high…of 17 cents. That’s when I lost it. Between joking about our fictitious company that had no product, no employees and no revenues, it simply sells debt and buys its own stock,  and then the “all time high” close by a whopping 17 cents… the absurdity got the best of me and I couldn’t stop laughing for a full minute. I almost had tears in my eyes.

But they had done it. So the question is, what now? Up up and away on another leg higher as they keep the ponzi alive? It is indeed possible. According to Goldman Sachs, they forecast an 18% jump in 2015 S&P buy backs.  But I’m a bit concerned about it all.

I had told my Insiders and in this free newsletter several times over the past couple weeks  that I expected the market to challenge the all time highs. But I also warned that we could be building up to something akin to a blow off top, where they jam the market higher in a last exhaustive orgasmic thrust, and then it rolls over.  In fact this is exactly what I said at 1:30 Friday….” I have to imagine they're going to "stick the landing" and close us OVER 2117 and maybe even over 2120 ...the intra day high. They'd love to parade that around on the weekend shows. That will NOT change a thing for me initially. I keep having this feeling that we're setting up for a blow off top where they jam us over the highs, we run like crazy for a day or two and then see one of those days like last Friday and we're down 360 and heading lower. “

And so it goes. If this market wants to go to S&P 2200 I want to go for the ride. But it has to prove it to me, and to do that it has to hold new highs for a few days, and make sure it wasn’t a headfake.  But right now, at this moment, I’m not convinced. They struggled mightily to squeak out that  close Friday, and they might not have the same conviction come Monday. We’ll have to see.

Seasonality becomes a question. The age old adage is “sell in May and go away”. Well May’s only 5 trading days away. So even if this breakout holds up, we’re heading into a very weak period and could easily set off a pullback.  Either way we’ll know soon enough. Just consider this statement by Jamie Dimon, the ultimate elitist and head of JP Morgan… “Some things never change — there will be another crisis, and its impact will be felt by the financial market.”  Yep, he’s right and he even probably knows what it is.

I’ll see you all on Wednesday and we can discuss where we’re at!

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