Financial Intelligence Report
September 21 , 2016
It's Getting Desperate
For approximately 4 years now, I've been suggesting that the elites would like nothing more than to cause a war with a major player. On the surface that sounds bizarre, why on earth would someone want to cause a war considering that this is the nuclear age? Obviously that can't be right, can it?
Desperate people do desperate things. One thing you always have to remember is that when war is determined, it isn't the fat cats calling for the war that fight it. It's the sons and daughters of the "commoners" that are used for cannon fodder. This has always been the case. The king never marched through the muck and mire to get shot at by long bows. The President never had to slug his way through dense jungle in 100 degree heat while taking fire. No, only the 99%'rs get that detail. The armchair quarterbacks feast on Duck liver while pushing lines on a map back and forth.
But the fact is that with the global situation so mucked up, so fully debt loaded, so completely deluged in quadrillions of derivatives...they all know there's no easy way out. Debts that can't be repaid...won't. So in the past history is replete with the most common answer...start a war. Go into wartime production. Take the minds off the horrible economy, the falling wages and give the serf's something they can cheer for, akin to an "us against them" football game.
I've been called a bit crazy by folks when I've said over and over that the US is desperate for an "event" an event so big it can be the scape goat for all our ills. The Federal Reserve isn't going to take the blame for ruining the country. The elitist bankers aren't going to take the blame for taking a dollar and making it worth 6 cents. No, they are untouchable. And when they get cornered, they lash out with new and wild plans. Often that plan is war
.
Over the Weekend a horrifying situation took place. We were on day 4 of a brokered cease fire in the Mid East. Then out of the clear blue shots were fired. Big shots. Phosphorus shots that incinerate people. So who was it that broke the truce? Those damn ISIS people? The Syrian army? No folks, it was us. The good ole US of A that not only started the killing, but guess who they killed? They killed the Syrian Army people.
"Seven minutes after U.S.-led coalition bombed the Syrian Army with phosphorus bombs, killing more than 60 soldiers and wounding more than 100, Daesh unleashed their assault on the Deri-Ezzor government enclave. The U.S. pretends it was an accident, and that the timing was a coincidence."
A coincidence? How on earth could 1) the US intelligence make a mistake that big to not know it was the Syrian forces? 2) Why would the US be the nation that violates a cease fire, I thought we were the fine upstanding people? 3) how could ISIS fighters round up an attack just 7 minutes after we lit the Syrian Army up? Would that be enough time for them to even understand what the hell just happened? Of course not.
There is NO doubt what so ever that this was a ploy. A ploy to maybe pull Russia into a hot exchange with the US. Could you imagine the headlines? "THE US AND RUSSIA AT WAR!!" It would stop the presses. No one would think one second about the fraudulent Fed's and monetary policy. No one would give one second of thought to the Presidential race. All eyes and ears would be on "what happens next?!?" as people would be worried about their town/state going up in a mushroom cloud.
The Fed's could swing into emergency mode, printing more trillions for the war machine. No one would bat an eye, they'd praise them for doing it. As the economy continued to crumble, they could blame everything on the war. You could hear the phrase now "we were on the verge of finally breaking into a strong growth recovery and then this damn war hit...."
Well thank God that Putin once again didn't take the bait. He knows the game that's being played. He knows that the US is trying to lure him into firing on US forces, just like we tried to get him to fire on forces in the Ukraine. While the game plan is to draw Russia into a hot war, he knows that when two nuclear powers are squaring off, it only takes one mistake during a conventional warfare fight, to escalate into a tactical nuke situation. A situation that could spiral terribly out of control.
So Russia flips out, and basically says "this is proof that the US is allied with ISIS!" They then call a meeting at the UN security council to discuss how this could happen.... And why?? So our response, via Samantha Powers was simply bizarre. First she told them that IF they had indeed hit the Syrian army, it was not our intention and we would regret the loss of life. Then she went sort of moonbat, saying that this Russian inquiry was a "stunt" replete with grandstanding. She said it was hypocritical and cynical.
I find that interesting, since it was US that blew the cease fire, US that killed the Syrian army instead of Isis and US that let the ISIS fighters take a better hold. Then it gets worse....
A humanitarian convoy of foodstuff was approaching Allepo, and it was shot upon. Instantly the US blamed Russia and Syria for shooting it up and destroying the trucks. Of course there was no proof of this, like most of the things we blame on Russia. Immediately Russia responded and declared that in no way shape or form did they blow up this convoy. Several high ranking members hit the media immediately said in strict language that "don't blame us, we didn't do it".
All eyes were on this convoy folks. Russia would look horrible on the world stage if they blew up a humanitarian aid convoy. If this was food for the Syrian people, why would Russia blow it up, they're fighting for the Syrians!
Here's the deal folks. The US and others want Assad out of Syria and they're not going to let anything stop that. In the meantime, if they can pull Russia into a hot war, they're going to use that war as the scapegoat for all the ills we have economically here at home. The problem is... the closer we get to this silly election, the more of this we're going to see.
My point is this...we have people working for the sole concept of literally starting a hot war, with Russia. They figure it will stay "conventional" as there's no winners in a nuclear war. But come now... what if someone makes a mistake? They continue to figure they can do what they want and Russia will continue to back off. So far that's been the case. But let me leave you with this...
IF Hillary gets in office, Putin knows her track record. He's seen her help overthrow Libya and Syria. He knows she loves nation building and toppling other countries. IF she gets in, THAT is when I would truly fear an all out war. Between now and then, Putin will continue to bite his tongue in hopes Trump gets in and they can just hash out deals instead of bombs. But if it's the witch... I truly believe we will see our sons and daughters fighting someone we shouldn't be messing with. Keep your fingers crossed.
The Market...
Monday and Tuesday the market attempted to make gains, but gravity pulled them back down during the sessions and we ended the days slightly red. The spirit was willing but the flesh was weak so to speak.
Naturally the fear was over what we'd get out of the bank of Japan and then of course out of Janet Yellen and our Fed. Come Wednesday morning we knew about the BOJ. While they didn't push rates lower, they did their own form of "what ever it takes" and has said they'd continue to expand the money base until they got their 2% inflation. Basically they're going to play with "reverse twist" for ever.
Most of the worlds markets liked it enough to send stocks higher. Of course it's insane and of course it's not going to get the intended results. But any time a Central bank says it will continue to print, markets love it.
The question was, did the move out of the BOJ push Yellen to hike rates, or take another pass? The worst part is that Wednesday morning I could still make the case for both. With Japan doing their "reverse twist" sort of QE, it pushed the yen down against all currencies, opening the opportunity for the carry traders to love it enough that Yellen could hike and they'd be happy. On the other hand, it wasn't the "bazooka" that Japan could have done and that might have had the effect of keeping Yellen in check. But then it got even weirder. The Yen rebounded against the dollar!
What a mess it was. But the stock market wasn't phased. It was up 88 points by 10 am.
However, that all faded and for a while we went RED! Yeah no kidding. We went red for about 40 minutes and then got back to green ahead of the Fed statement. As we went into 2 pm, we had the DOW up 28. Then "boom" up it went. Why? Once again Yellen proved how completely inept they are. They didn't want to rattle the markets during a Presidential race, and frankly the action out of the BOJ just wasn't enough.
I had said that we'd need "over and above" out of the BOJ to make cover for the fed's making a move. The BOJ didn't give us the "bazooka" and thus our Fed's gave in and held rates steady. Ten minutes later we were up 100 DOW points. Markets simply love free money, no matter how badly it is screwing up the real economy.
Next up of course was the press conference. Waiting on her, the market gave it all up and the DOW was up just 11. Then back to up 34. On and on it went, up and down. But as Yellen was speaking the market really started clawing its way higher and when all the fireworks were over, there we were up 164 DOW points and a whopping 23 S&P's, putting the S&P squarely back into the "range box" it was in for 42 straight sessions in the recent past.
So what now? The economy is so strong they can't raise rates? What's up with that? Because the BOJ is going to "do what ever is necessary" and the Fed's have sat with a thumb up their butt again, looking like the incompetent fools they are...do we just soar to new all time highs? It sure won't surprise me. We're in the midst of the strangest year I've ever seen.
While it is very possible we just march higher since no one in charge has the backbone to do what's right, let me just suggest that one day does not a trend make. The 50 day moving average on the S&P is at 2168 and we closed at 2163. It might bang its head into that level a few times before breaking through.
Once again this is a very interesting time. If they do run us wild, I would certainly be wary of it. Even the most bullish of CNBC bulls were astonished that the fed's didn't hike. They know it's being controlled by politics and fear of rocking the boat. Which means that once the election is over...they have no more reason to play nice. What ever we get out of this run, is probably all there is....for a long time.
Let's see what tomorrow really brings. Right now it feels like nothing more than a snap back, hype driven rally. If it is... tomorrow very well could be red. Keep an eye on that 50 day folks. If we hit that and stop... we might see it be the top. Take care, I'll see you all on Sunday.
