Silver is rallying into the next turning point ahead. The Monthly Bullish stand at 3412 and 3575. Moving up into this time frame is a warning that we could fail at the reversals, and the turn down. This appears to be a cycle inversion. That means the turning point does not change, it just produces the opposite effect.
This is still consistent with the long-term. The major high still appears to be around 2017, The debt is getting far worse. But the bankers & the government are fighting the trend fiercely. They will not reform until the markets forced them to do so. We may start to see that next year at the earliest with the possibility of extending into 2014.
With tax increased jumping dramatically in January, the deflationary trend appears to be reemerging as capital contracts and refuses to invest. They will reduce the VELOCITY and increase unemployment.
Things are turning so negative so rapidly, this is really starting to appear like the fall of Rome. The UK is tripling all fines related to taxes according to the FT. Europe & Australia and imposing a carbon tax and this of course is necessary for the environment as long as it ADDS revenues. Whatever idea of regaining manufacturing jobs is going out the window. Whatever these countries do it is only contributing to the demise of everything.They are telling manufacture to go to friendlier spots in Asia.
Governments cannot see that no matter what they do, they cannot solve the debt crisis by raising taxes to pay the bondholders. This is creating such a deflationary vortex, it is the precise way all empires die by their own hand – never by hyperinflation. The bankers will not tolerate that.
The LIBOR probe that began in London where regulators are not as “in the pocket” of bankers as they are in New York, has now expanded to 7 New York banks. This only demonstrates how the bankers control government in the USA including Obama despite his recent comments about “trickle down” as they use the very same tactics that Hitler did to win. The bankers control both sides of the aisle. They are the ones directing the destruction of Western society by demanding austerity and the destruction of our freedom with draconian tax increases. Taxes on investment in the US will jump from 15% to more than 40% come January and this will create more jibs?
Obama can blame the rich for not paying 90% of all income as it was before the JFK reforms, but what he is not saying is he is taking from the productive “rich” to pay the bankers and then 40% of all interest is exported anyway and is not taxed.
We will look at the solution at the San Diego conference and what needs to be done to survive on a personal level in the face of what appears to be a coming nightmare. Sadly the Maya 2012 target will not put us out of our misery. We will survive the hype. Nevertheless, we will review the Maya discovery of cycles as well which seems to be on target for a sea-change in society as a new cycle begin. The 16th ruler of Copan died at the end of the 10th Bak Tun and the city collapsed. It was born with the cycle and because of this beginning of a new cycle the city was built.The Copan dynasty lasted for about the full cycle of 400 years. Where the Renascence marked the beginning of our cycle, it appears the Sovereign Debt Crisis may mark its end.
The FT has reported that indeed the shift from Public to Private is starting with more long-term corporate debt that has been sold this year than throughout 2011 at the early stage in the game. Companies from Walt Disney to Morgan Stanley have issued $86.3bn of 30-year bonds in the year to date, compared to $84.7bn last year, as they rush to take advantage of low rates and high pension fund demand in the face of higher rise in the sovereign debt field.
So for now, hang on to your socks. This appears to be a very wild ride ahead. It looks like San Diego will be perfect timing for this conference.
In Rome, there was the Social War (91–88 BC) where citizens of Italy paid taxes but did not have the same respect and rights as those in Rome. We are likewise headed straight into a class-warfare struggle because government blames the rich for not paying their “fair share” when it is government that spends without comprehending what the hell they are doing. In Rome, this taxation without equal rights eventually erupted into the Social War just as the American Revolution took place as England sought to extract wealth unjustly.
In Italy today, the Prime Minister Mario Monti’s government has implemented a 20 billion euros ($25 billion) policy in austerity measures that is now causing the Italian economy to implode. The country is struggling with 1.9 trillion euros of debt and as everyone else in the West, there is no plan to pay it back and all governments are turning inward against their people threatening the very foundation of democracy itself. This is now all about government surviving and they see this as extracting funds from the people to pay the interest only to the bond-holders who demand austerity and higher taxes as their pound of flesh.
Prime Minister Mario Monti’s government is now implementing this 20 billion euros attempt to strip people of their wealth in austerity measures that are destroying the economy precisely as took place under Maximinus. We must understand that attacking the “rich” who are the class that create the economy by creating jobs (small businesses employ 70% of the civil work force), they cause capital to hoard and the money supply to actually contract simultaneously with higher unemployment as hiring takes a wait and see approach.
This trend of a collapsing velocity in money was self-evident also during the Great Depression when over 400 American cities were forced to print their own money – Depression Scrip. We are headed into a deep and dark vortex from which there is no escape. Government MUST revise the entire monetary system and restructure the debt. Italian demand for supercars is collapsing. According to Bloomberg News, the number of secondhand high- performance Italian cars that have been exported from Italy has exploded nearly tripling to 13,633 vehicles in the first five months of 2012, from 4,923 a year earlier, according to auto industry group Unrae as reported by Bloomberg. We are in such a serious position, it is NOT hyperinflation we have to worry about, it is the collapse of everything because government is too damn corrupt and refuses to even look at what they hell they are doing upon the advice of bankers. We cannot learn from experience, because we are ignorant of the past – history is the real catalog of solutions if we dare to look.
Cycle targets that we provide are TURNING POINTS. This means an event normally takes place at that time be it a high or low. If ideally something should produce a low but does not and produces a high, it is typically extending the cycle to the next TURNING POINT. It looks at this time that the next important turning point is the week at the start of Sept. There is of course the Fed meeting. But then there is trouble among debt ridden nations and then there is Iran.
Keep in mind that for some strange reason, geopolitical events tend to also happen in the Aug/Sept time frame. Besides war, there was even 911. On 28 June 1914, Archduke Franz Ferdinand of Austria was assassinated. World War I began officially 28 July 1914 and lasted until 11 November 1918. It was August when things really got underway. World War II began when Germany attacked Poland on September 1, 1939. Most stock market crash events take place after highs in early Sept such as 9/3/1929. Even the 1987 Crash 10/19/1987.What it is about this time of the year who knows. Where December is the time to be jolly, Sept is the time for chaos. Never look for a particular event high/low. It is a TURNING POINT that sometimes can invert and produce the opposite largely because everything is connected. It is always an action/reaction.
It appears that the world is headed in the direction of a massive assault upon wealth everywhere. The culmination of class warfare seems to be coming to a head all because government owes so damn much in interest, there may be no way out but complete collapse. I fear that we are creating such hatred of anyone who has any money, that we may see this explode in our face as it did in Russia. The race card is now being rolled out as is the Marxist card. Of course, Nobody says this is some sort of Communist Resurrection, but of course whenever you start targeting people because of their wealth, you do not end in a pretty place. Germany began with get the rich who happened to be Jewish bankers that migrated into all Jews.
Clients are contributing info now from around the world keeping watch on what is really taking place. They are now using dogs to sniff cash people are trying to get out of the country. They are seizing cash, gold, and silver now at the border in many countries. Here is the latest from Australia.
This is why I have been warning that the HYPERINFLATION route has never been the fate of any core economy in history. That only takes place in the fringe because there are no BOND holders. Here, the bankers are demanding austerity, higher taxes, and we are turning Western Society on its head as all rights, privileges, and immunities vanish into thin air. This is precisely the same pattern for the fall of Rome. All great empires have died by their own hand – suicide. It is the weakness the exposes them to their enemies. The barbarians recognized that Rome lacked the funds to defend itself. It was the Emperor Aureian who built defense walls around the city of Rome itself in 275AD because now the barbarians could strike deep into the heart of Italy.
There seems to be no way to stop this runaway train. Politicians are fueling our own destruction. They cannot see the consequences of their actions. It is time for a world MONETARY CONFERENCE and a full DEBT RESTRUCTURING before there is nothing left to save.
This week’s close of 1622.6 is the highest weekly closing since May. We have to be cautious next week for we could still make a higher intraday high, and then turn down for 3 weeks before turning back up. The resistance to watch is 1671. We have to see a weekly closing above that level before gold will see any sustainable rally. This crawling sideways pattern is indicative of the calm before the storm. The volatility should start to rise now for the next three weeks before we see another turning point. The other number to watch is 1569. A year-end closing below that level will signal a low next year completing a two-year correction process with a 5 year rally thereafter intraday into 2018 with 2017 being the highest annual closing. If this pattern unfolds and gold cannot get above 1671, the we may be looking at the whole Sovereign Debt Crisis coming in starting next year. Taxes will rise in the USA and governments are attacking the bullion trade as we see in France. They appear to be forcing capital to hoard expanding the underground economy. Americans with safety deposit boxes in Europe have been told to get out. Governments are doing everything to grab money short-term. They will cause a sharp economic contraction by forcing capital to hoard.This is similar to the same patterns that set the Decline and Fall of Rome in motion by Maximinus I (235-238 AD) who sought to attack the rich seizing all wealth.