I have warned that China’s exports were an illusion and that there was a huge carry trade borrowing dollars in Hong Kong at 1% and depositing the money in China getting 6%. But trade tracks money, not goods, so the illusion that China was still expanding was a good one – but still just an illusion.

China’s exports have plummeted “unexpectedly” in February among the tradition forecasters that use the numbers and believe in them. Compared to last year, according to official figures, exports fell by 18.1% from last year. Economists polled by Reuters had expected a gain of 6.8% for the second largest economy in the world. This demonstrates just how out of touch the mainstream economic community really is these days.

In China, many factories were closed. Imports in February rose by 10.1%, also more than expected. Then there has been the first important corporate bankruptcy in China. It is feared that more companies could follow as managing skills in how to survive a economic decline in China is seriously lacking.

Our projection for the low in China’s economy REMAINS the target year 2020. This is why the last bastion for capital remains the US dollar and the greatest recipient of capital is still the US share market. The widening scope of the rally has led the S&P 500 to take the lead away from the Dow Jones Industrials showing the trend is filtering outside of the big institutional money.

Government Statistics

When we look at the economics or government, we have to sort through the games to even get close to reality. According to the U.S. Bureau of Labor Statistics, government accounts for about 8% of jobs in the United States. Here is their breakdown using numbers easily accessible on the BLS website going into the peak of the economy back in 2006 – 2007:

1,774,000

Naturally, there are a tone of exclusions. Federal government civilian employees, excludes the Post Office 615,000, 1,172,913 Military, enlisted 230,577 Military Officers, 2,424,000 State government (excluding education and hospitals), 5,594,000 Local government (excluding education and hospitals). This brings us to a total of 11,810,490 government jobs.

The total number of jobs in the U.S. in 2006 was 150,600,000, so government
employment makes up 7.84% of all jobs.In 2007, the U.S. population (according to
the Census Bureau) was 301,621,157, so about 4% of Americans are employed by the
government.

However, what is excluded are contract workers. The Federal Government also employed 14.6 million contractors in 2006. This is like Snowden inside the NSA. About 40% of the cost is contract workers these days inside the intelligence community. This was an increase of 2.5 million since 2002, and the study attributes the increase directly to contractors hired as part of the war on terror, reported in the Washington Post.

This means, 11,810,490 full-time workers plus 14.6 million contract workers, and now there are growing numbers of part-time and indirect contracts. A company billing on a project is not contracting its workers directly. Changing the definition of a government dependent worker does not reduce the non-productive sector that contributes nothing to the national wealth. This segment has been between 30% and 40% on a collective basis for decades.

Putin visits Yanukovych and asks if it is infectious. The doctor says yes, and you have it too. The sad part, you can say the same about Obama.

The Global Market Watch has been posted for the close of March 7th, 2014.

Global Market Watch

This is a non-official video, a Belarusian rock band sings this song in Russian (it’s called Daybreakers, the Warriors of Good or Light), it has been combined with the events in Ukraine as this song illustrates these people are not fighting for USA/EU or Russia – but for personal freedom.

What we see in Ukraine is coming everywhere. Like there was an uprising against monarchy in the lat 18th century, we will see an uprising against this failed Marxist model and the inherent corruption within. Governments play games to stuff in their supporters in power while the people are saying no more corruption. We should look at Ukraine for what is coming our way over the next 6 years.

Our sources in the east have reported that what has been marketed by the pro-Russian supporters as the “Russian Spring” in Donetsk, has collapsed. More than 10.000 demonstrators came out today in favor of a UNITED Ukraine against only 1.500 for separation! This is ahead of the news and it was totally unexpected in Donetsk, which has been the most vocal pro-Russian city in Ukraine.

After that many pro-Ukrainian demonstrators were beaten for protesting against separation and were also pummeled with eggs and many were arrested by the police and made to pay them a fine, people are starting to come out of their homes. This treatment is having the opposite effect and now more and more pro-Ukrainians are appearing on the streets. Based upon information from our sources in Donetsk, tomorrow the pro-Ukrainians will gather once again we are told at 1 p.m (Ukrainian Time).

The propaganda never stops from both sides and to get at the truth just reading the press is next to impossible. The Russians keep touting this was a US plot, and the US keeps trying to wiggle into the situation but the GRASS-ROOTS people do not leave for they are pissed-off at government in general and do not trust even the interim so-called political care-takers.

The US is finding it hard because this is a GRASS-ROOTS uprising that is fed up with politicians and trusts nobody. The US needs some sort of political structure to deal with, yet the politicians there are seen by the people as questionable care-takers not worthy of their trust no less respect. Even the so-called Maidan leaders who showed their faces once or twice in the Maidan are not acceptable and certainly not trusted.

The people lack leaders and it is more of a committee consensus than some hero rising to the forefront. This is the distinction between a real GRASS-ROOTS movement and a pretend one like the invasion of Iraq that has to be sold by the politicians with extreme exaggerated claims. The people are waiting for the May elections and until then, it remains a waiting game. They are not willing to accept puppets from Russia or the United States/EU.

There are insane people in Washington and Europe down to Turkey that do not appreciate the situation and want NATO to expand and include Ukraine. They fail to see that this will only provoke Putin and war will most certainly be the outcome. The USA has pissed-off just about everyone with its NSA nonsense and that has cost it serious respect. It has also placed China on the side of Russia for now.

Therefore, the morons who play with other people’s lives and see no problem starting World War III, neither comprehend history or Sun Tzu’s Art of War, which counseled against long-draw-out campaigns as economically disastrous. The waste of resources in both Iraq and Afghanistan demonstrate that Sun Tzu understood what he wrote about. Our leaders start wars easily, but they never know when to leave or how to end them. There is no victory at the end of the day.

So for now, the situation is fluid. We tend to think Ukraine is the pawn and power exists to simply push Putin around. Putin might not be able to match the USA ship for ship, but they have weapons designed to sink the ships. Their computer skills for hacking are second to none and they may be able to spin the US around in circles much easier than people think. It remains plausible to crash the banking system by hacking where that will disrupt the economy faster than any missile attack. So it is not over by a long-shot.