Category: Geopolitical

What in the world is going on?

Current events have not changed my outlook for the next four years at all.  In fact, they continue to validate at least the overall premise that we are headed for extraordinary times in this nation.

Civil unrest is now taking a more partisan form.  Rather than general protests over taxes, spending, lack of leadership, etc., some states have upped the ante by striking at the heart of the Democratic party – the Unions. By focusing on budget cuts that include unions (not exclusively, but simply including them in the austerity) these states have fired a shot across the bow of one of the Democratic Party’s sacred cows.

In return, Obama (he is the first person to occupy the White Hose whom I refuse to refer to “President” even out of respect for the office) has upped the ante on social conservatives by refusing to defend the Defense of Marriage Act, or DOMA.  In response, Presidential candidate (he will run) Newt Gingrich is pandering to social conservatives with a veiled threat of impeachment.  Gingrich: If Palin Took Obama Actions, There Would Be Calls for Impeachment.

Make no mistake.  The geopolitical chaos is a breeding ground for domestic chaos, and both parties are increasing their hard line stances – defining their “lines in the sand.”   As these lines become deeper and more visible, it will serve to frame the battle when it erupts.  And at the current pace, erupt it will.

The police state continues to expand and is now increasingly targeting our children. See  Arvada Police arrest 11 year old over inappropriate stick figures and Deputies seek protection after threatening family. Public school or home school.  The police are set to intimidate families and children.  They almost seem to be probing to find out just how people will fight back, assuming that people’s children are something they will fight for.  What they learn will tell them a lot about how far they can expand their police state before they have to deal with real opposition.  Sadly, it appears as though it will be very far down the line.

Now, enter the pro-life debate.   Defunding of Planned Abortionhood should have happened eons ago.  However now it is a real threat.  These traditionally “compromised” areas of social conservatives are being addressed with steps that actually have teeth – baby teeth yes, teeth none-the-less.  And it has the left going nuts.

Oh yes, if homosexuals, abortionists and unions are not enough of a minefield, lets talk about food.  The good ole’ police state is claiming now that walnuts are drugs and need to be regulated. Big Pharma can’t have natural cures now can it.

Add to all of this the fact that inflation is raging.  Calls for shortages of vegetables due to the late frost in Mexico has people expecting a doubling of prices of some foods in the next few weeks.  Gas is well over $3 per gallon nation wide.  Monetary policies are one thing, but when the geopolitical world gets lit on fire, there is no telling what oil can do.

My sense is that a growing number of “average” Americans are getting quite uneasy about the future.  They are beginning to sense that their ‘normalcy bias’ is about to be exposed in a very powerful and unpleasant manner.  The rhetoric used in nearly every political arena is growing more intense.  This is exactly what was predicted just two months ago.   If you haven’t done it,  read the Outlook 2014 paper. It is early, however it is playing out as scripted.

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Is the next wave upon us?

Global markets were off Thursday 3%+ as Dubai debt problems come to light.  After a drubbing of the dollar Wednesday, it was in danger of breaking a critical support line (see last post on the $$).  Yesterday it caught a crisis bid with the US markets closed.

Regardless of this bid, gold held firm just below $1,200/oz.  What was interesting was the intra-day trading.  Gold sold off while the London market was open, likely in sympathy with the broader markets.  However the minute London closed, the NY market made a bee line up to wipe out all the day’s losses.  One would think that it would continue to fall in sympathy for what is likely to be a rough open in NY stock markets tomorrow.   While gold did get hit overnight last night, it is on the rise again from off of its lows so far this morning.  Look for today to be quite volitile in all markets.  Let’s see how the day ends.

I don’t have a conclusion on this, it is just interesting.  I suspect gold will have to take a pause at some point, and this could be that point. However, overall gold is acting very differently now than it has in the first 8 years of this bull market.  To me it means a very different game is unfolding in the global financial markets.

Many think gold has decoupled from the dollar.  I don’t believe it has.  What it is likely doing now is discounting the dollar’s direction 30 to 60 days from now, essentially front running it.  Gold at $1,200 projects a dollar in 30 to 60 days in the mid-60′s.  Any bounce the dollar gets as a crisis bid will likely be sold aggressively in short order.

We may finally have the catalyst to turn the DOW and S&P down, moving closer to reality.  At a minimum, it should spark a correction in the 10% to 15%  range.  We’ll see when it gets there what the situation looks like.

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Two items…

First of all, I hate to say “I told you so,” but HB1207 has been gutted.  If it had passed the House, it would have never made it past the Senate. As it is, they won’t have to worry about that.

Fed Audit Legislation “Gutted”

Also, something to watch on the flu front.  Right now they don’t think this is the swine flu, but you never know.  While not by any means a fan of the vaccination, I still want to watch carefully what transpires here and if there is any mutation that would make it more serious.

Unidentified flu outbreak in Western Ukraine

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A glimpse of the New World Order

This is not President Obama being a gracious and wise leader – one that wishes to include the rest of the world in economic decision making.  It is, in fact, President Obama taking orders from China, India, Brazil and Russia to make room at the table.

Obama to user in New World Order at G20

When power and influence is divided 8 ways, as was the case with the G8, and now it is split 20 ways, by default, the powerful have lost power.  The  influential  have lost some of their influence. Get ready – economic changes nearly always proceed geopolitical/military changes.  This is the beginning of the implementation of the New World Order.  One which sees a vastly diminished presence of the United States.

For those concerned with wealth and power, this is unwelcome news.  For those concerned with serving Christ, it is an opportunity to return to a focus on serving Him and sharing the good news.  I say opportunity because unless we act now to influence the direction of our nation, it will be an opportunity lost and we will be assimilated into the NWO in a manner which will make us subservient to the rest of the world.  Our choice must be made now.

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Are you seeing the big picture yet?

Please read the following and note the emphasized text.  I will have comments at the end.

From jsmineset.com:

“China may ban export of gold, silver. Last week Alan Greenspan noted that “Rising prices of precious metals and other commodities are an indication of a very early stage of an endeavor to move away from paper currencies.” In other words, people are buying gold as a hedge against inflation.

…How could China affect the price of gold? We live in China and spend a lot of time with local industry leaders and policy makers. We hear repeatedly that the time has come to think seriously about how to survive the perceived dollar devaluation. In some cases we note serious concern, and in other cases absolute dread over a perceived dollar crash.

Over the past six months Beijing has made a series of moves to protect itself against a dollar devaluation. In a recent “BRIC Summit” in Russia several months ago, Chinese leaders came out strongly in favor of a new reserve currency to replace the dollar (including the IMF’s “SDR” currency). China is also quietly purchasing mining assets and gold bullion. But the government has recently gone further.

According to Financial Sense:

As recently as 2002, the private ownership of gold was prohibited in China. You could be jailed if caught with any in your possession. Beginning in 2009, in a stunning about-face, the central government removed all restrictions. In fact, as Mineweb and other sources report now it is actively pushing folks to buy some personal metal, with China’s Central Television, the main state-owned television company, running news programs cum infomercials, letting the public know just how easy it is to purchase gold and silver as an investment.”

I have pounded the table on this before, but I will do so again.  China is a student of history.  They do try to learn from it, unlike the west who believes they are the ones who can cheat human nature and historical precedent.  China doesn’t just see the coming dollar devaluation as an economic event.  They see the political climate in our nation and know that it is about to become quite contentious.

Political stability (or lack thereof) within a nation is a primary driver of its currency value.  For a nation like China to act as they are, as quickly as they are (remember, they are strategic long term thinkers) means they see something quite disturbing right around the corner.

The economic axiom that is developing  for the coming decade (if not the coming century) is to buy what China buys.  I suggest we expand that to include understanding why they are doing so.

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China is making its move

Just read through these articles and tell me what they say to you.  I stated in the title what they say to me.

GM Power Shifted To China

China considering ban on rare earth element exports

Petro China Agrees Biggest North American Acquisition

China to Default on Derivatives ?

The last article is the most important.  The United States sold toxic derivatives across the globe – including China.  While not explicitly stated here, I believe China sees these OTC derivatives as fraudulent and thus has stated they may simply default on their (losing) end of the contract.   What happens if other nations follow suit?

These articles demonstrate China is moving NOW to secure their position in the post US-dollar-reserve-currency world and are close (months? weeks?) away from showing their hand more clearly.  It seems pretty clear to me already.

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Alert Level Orange

It is time to cut to the chase on a few issues. There is an always present reality that there are only so many hours in a day. Thus I have to ask the Lord to give me clarity and focus on what He wants me to be focused on. Now that my time has shifted away from the investment arena, there have been many things clamoring to take its place. First of all, I am committed to writing my next book, as I clearly feel God is leading me to do so. Yet that cannot be my sole focus for this ministry.

I find myself becoming more and more uneasy about the next 6 months. There is a growing dichotomy in the main stream media and those who are truly “in the know” about what is happening in our world and in the economy. Spin from the MSM is reaching an all time high. Yet the spin is losing its traction as is evidenced by the number of citizens who are increasingly upset with our elected officials regarding their handling of everything from health care to the economy. While a full court press is being put on by the Obama administration, his poll numbers are weakening noticeably. This is a dangerous situation when a man like him, who has an agenda he so deeply believes in, is in power.

Obama doesn’t care what the American people think. He continues to press his agenda in the face of deteriorating poll numbers. Yet many of those in Congress still have political instincts and seek to keep their power. In short, they want to get re-elected. Thus they are having a more difficult time ignoring the growing chorus of anger in the voices of their constituents. This leaves Obama in a desperate situation. He knows that if health care fails to pass in the next two weeks, it could find the same fate as “Hillary care” did in the early 90′s. His overall agenda to socialize the nation will have been dealt a huge blow. Desperate people do desperate things. It is difficult to tell what Obama will do if his health care boondoggle looks like it really may not pass.

Add to that, the bankster’s bank, Goldman Sacs is getting a huge amount of scrutiny over their profit machine, having cannibalized their competition and received $13 billion through the back door of AIG. The whole situation reeks with insider privilege they were given during the great financial crash of fall 08′. It is becoming increasingly clear that the Goldman machine is in control of a great deal more than a large financial company in the US. Their influence permeates banking and reaches deep into the government. What is being exposed is the long rumored, yet plainly visible, unhealthy “influence” (some would say control) of our political system.

Finally, we have Ron Paul’s HR 1207 bill gaining support by the week. Seeking to peek under the hood of the Fed is a non-starter for the banking system. Yet political pressure that they cannot control is moving the ball forward. So far they have been able to stall it in committee due to the bought and paid for Barney Frank position. However, it seems like the pressure may be getting to be too much.

And that is what bothers me. We have a situation where a narcissistic globalist in the White House and for the first time, he is being told “no”. We have the banksters in danger of being exposed for who they are – the real power behind our Federal government. And we have an economic backdrop that is very, very weak. Our foreign creditors are increasingly vocal about their “concerns.” States are ready to go bankrupt, beginning with the 7th largest economy in the world – California. Commercial real estate is a disaster breaking over the horizon of the banking sector. Job losses continue to mount. And the list goes on.

In short, what we have is the perfect setup for the banksters to pull what they did in 1907. That is, to create an economic panic in order to knock the public off their trail and to take advantage of the crisis – there is that phrase again – to re-group and continue with their agenda as the shell shocked public cowers in fear and submission.

Like I said, I just don’t like the feel of things. Is it a check from the Holy Spirit? It could be, however I am not declaring “thus sayeth the Lord” on any of this. However, as I ask the Lord for wisdom as I look at the present situation and weigh that against historical precedent, I do not like what I see.

Combine that with a growing number of analysts who are looking for a major dollar event and possible bank holiday sometime between September and November, and I have to put out a strong warning at this time. If you have gotten complacent in any of your preparations or have let your emergency cash reserves drop, replenish them now. Gold moving above $950 could be sending a signal that the next phase of this crisis is ready to begin. I do not look for anything major in the next few weeks, and in fact would not be surprised to see a surge in the DOW to well over 9000 as the insiders dump their shares on the unsuspecting public again.

But come late August into fall, be very careful. We could have a repeat of last fall. And this time not all of the markets will act the same. Last fall, the crisis was about the global financial system. The resulting policy responses have caused it to morph into a currency crisis – one that has yet to be fully felt. Thus, during the next wave of panic, the dollar certainly won’t be seen as a safe haven. Oh sure, in the initial wave down it could see some buying. However it will not be sustained if it even happens. In fact a free fall to the low 60′s could be in the offing by winter.

It’s time to re-focus people. I have often maintained that in the end, if the people prevail in this struggle for freedom from the grip of the bankers, the list of names who will stand trial and find themselves in prison will shock us.  The whole rotten, corrupt, incestuous system is moving closer to being exposed.  Don’t think for a minute they will let that happen at this stage.  They still have too much control.

We have enjoyed a respite by the grace of God. I believe it will be solidly in the rear view mirror within the next 6 months.

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Where’s the birth certificate?

This is an article on a story I have been following for some time now. That being the legitimacy of the qualifications for president Obama to hold the office of president of the United States.

Orders revoked for soldier challenging president

What interests me is that the story has not gone away after nearly a year.  It could be so easily dismissed by producing a single document that, the question begs – why not just put an end to this mess and produce the certificate?

First of all, the charges made in the story may be true.  Our president may not be legally holding office.  If that is the case, either they are stalling, hoping the story will go away (it won’t) or they are stalling until they are able to put in place all the documentation to produce a fraud.  Or, they are stalling until the nation’s economic crisis gets so out of hand that the public won’t care.  If the charges are not true, one can only speculate as to why the administration will not end the charade. They may be stringing along its accusers, letting their claims gain ever wider coverage, and then at an politically opportune time, the documents will be produced in order to maximize the humiliation of the opposition.

Whatever the reasons, in the past, charges were made by individuals who did not have proper standing to move the issue along in the courts.  Or they did not have the sympathy of a liberal court system.  However, now the issue is in a completely different jurisdiction.  The military has its own set of rules.  And by simply revoking these orders for a single soldier, the military has opened itself up to any soldier who wishes to raise the same objection – and I assure you, there is more than one in the military.

So this is now in a jurisdiction where it won’t just “go away.”  It appears that it must be dealt with.  If it turns out our president is illegitimate, then along with all the other “crisis” we are facing, prepare for a constitutional crisis the likes of which this nation has not experienced.  The deep political division that is still, for the most part, hidden under the surface in the country, will simply explode.

The result will be a global power grab of epic proportions as our nation becomes distracted, divided and leaderless.  This is a story to watch.

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Christopher Snider

This week was one of those weeks where emotions are about as mixed as they can be.  This weekend we celebrate the birth of this country. I’ve been reading again on the events that led up to the revolutionary war and the Declaration of Independence in 1776. I found an interesting account of a 12 year old boy named Christopher Snider.  Christopher was  killed just a few days before the “Boston Massacre”  of 1770.  The following account calls him “the first martyr” of the American Revolution.

Christopher Snider’s Role in the American Revolution

What I find interesting about the account are the events that led up to his death, and statements made by the one partially responsible afterward.

By the mid-1760′s, it was widely recognized that tyranny was on the march. In fact, taxation without representation was only part of the tyranny the colonists were subjected to.  Upon passage of the Stamp Act (1765), a group was formed known as the “Sons of Liberty.”  No doubt they were viewed as the pre-revolutionary extremists by the British government.

Because of the wide spread protests, among other issues, the Stamp Act was repealed.  No doubt the Sons of Liberty has something to do with that.  And I doubt that fact was lost on British rulers.  There would be a time to deal with them if they waited.

The same year the Stamp Act was passed, so was a law that required colonists to harbor British soldiers. When New York refused to comply, unrest broke out.  And how did the British respond?

“When this news reached the Colonies, unrest broke out anew. From the press, from the pulpit, and from the bodies of the legislature came a denouncement of the acts. The British reacted by trying to intimidate the colonists.”

At least the pastors were speaking out against tyranny.

Then came the chance to deal with the Sons of Liberty.

According to this account “The first outbreak [of hostilities] was in New York, on January 17, 1770. British soldiers provoked the Sons of Liberty by cutting down their liberty pole. A riot followed, rapidly spreading from one colonial city to another.”

Note who started the hostilities.  Some historical accounts claim it was Brittan’s objective to provoke hostilities in order to have a reason for moving aggressively against the colonists before they got organized.  Regardless, it was the tyrannical government that provoked the citizens.  The result – a steady increase in oppressive actions by the government followed by increasing counter action by the colonists who were committed to freedom.

Then it happened.  A sympathizer to Britain named Theophilus Lillie refused to go along with a boycott of taxed goods. The resulting skirmish led to a chain of events left 12 year old Christopher Snider dead at the hands of British soldiers. Lillie commented afterward “that the mobs of Boston were contrary to any law abiding governing body, and that he would rather be ruled by a single tyrant than a hundred.”  Typical liberal thinking.

While many events transpired after that incident that are recorded in history as more important in leading to the revolutionary war (such as the Stamp Act and the Boston Tea Party) one has to wonder just how much effect a 12 year old boy’s death had on the psyche of the colonists. That event signaled an escalation of  ruthlessness by the British government that had to be stopped.

Thus, when Britain tried to use food as a weapon against Boston – trying literally to starve them into submission – that was enough for many colonists.  As the article states: “It was in the midst of these experiences that the colonists, for the first time, began to think of an organized, armed resistance. The fight was on.”

Sadly, while we celebrate our nation’s birth this weekend, what we are actually witnessing our nation’s death.  And it will die unless the course we are on now is altered.  Because of the gift our Founding Father’s gave us – a representative republic form of government, we have the hope of a “revolution” without taking up arms.

However, there is danger afoot.  The speed with which socialism is being forced on our country and its people is creating a great deal of unrest. Parallels are developing to what the colonists experienced in the 1760′s and 1770′s.  What happens if President Obama gets his way and his civil army and required two years of social service are passed.  Then, a concerned parent objects and says “no” to the government when they come to take his children to “perform her civic duty.”  Will we have another Christopher Snider incident? I pray no, however with the current political trends and the fact there are those who will say “no” to such government intervention, it could happen.  If so, all bets are off.  For many, the government will have gone too far.  Lord help us if it happens.

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Making sense of this week.

I’m still sorting out this week’s events. It was a strange week and I don’t like strange weeks – at least not strange in this week’s say. First of all, there was the issue with $134 BILLION in bonds making their way illegally to Switzerland. Within a few days we should know if they are real or fake, but either way, this is a huge sum of money, um er, I mean debt to be playing games with. The implications either way could be staggering.

Secondly, for a few months, the US dollar has been bad mouthed by China, Russia and others, then with the USD index probing support at 78, suddenly Russia and Japan (who was at the epicenter of the bond smuggling debacle) come out and give their support to the US dollar as the reserve currency of the world. Sure enough, the dollar gets a bounce to 81. It was saved, but from what? We’ve seen 77, 76, all the way down to 72 on the USD index before. Why was holding 78 so important this time?  Then, within a few days Russia again calls for a reserve currency to be other than the US dollar. Sure enough, it has been weak again since then.  As I said – strange.

Interestingly, the US requested to attend the BRIC summit (a meeting between Brazil, Russia, China, India and several other nations) where they were to discuss future economic policy for their nations.  US officials requested to attend as an “observer” – and they were politely told “no.” The US leaders must get used to hearing that word, for as we continue to lose economic and geopolitical status, it will be used more and more often. This is especially true as the US had to sell $105 billion in bonds this week (a record) and the sale didn’t go over that well.

Third, Jim Sinclair is pointing to this week as a very important bottom in gold due to several sources and cycles. A friend of me called to ask if I was concerned about some kind of significant “event” sometime in the next two weeks based on a lot of internet chatter. I must admit, I wasn’t tuned into it, but as I began looking around – indeed there is chatter about the next two week window being something carefully watched by many. The Global Europe Anticipation Bulletin has a great deal to say about how they believe this summer we will see significant economic dislocations becoming evident. Well, summer officially begins tomorrow (or is it Sunday).

Geopolitically, we have North Korea picking this time in history to begin to really poke a stick at the United States as they threaten to launch a missile toward Hawaii. Who knows what response that will bring? Add to that, Iran is going through their own election crisis. By the way – I had to once again. step back in awe of the nerve of our current President. He lectures the Iranian leadership about his “concern” that opposition is allowed to “be heard.” Meanwhile, his administration is giving tests to Pentagon personnel which label protests here as “low level terrorism.“  And we think this is going to end well?

The broad market is very weak and the internals are turning lower.  This really looks like the setup for a significant correction and probable resumption of the downtrend.

The short story is, we appear to be at another inflection point in this crisis. I come into this weekend trying to find where these dots are leading.   While I don’t have the trail identified yet, I do not like the general direction they are heading.   I’ll be watching the trend lines in the markets.  The downtrend line in gold is particularly interesting.  If it turns up decisively before breaking below $920, most analysts are saying $1,200 is the first stop after a short dance around $1,000.

Stay alert.  Complacency has entered the markets and the psyche of the nation’s people, and that is often when the most dramatic moves come out of nowhere.

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