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[fxmade2trade]

Green-spun out of control

“Gold and economic freedom are inseparable”-Alan Greenspan

Let us just say that economic growth falters or asset prices start to fall, then what? What will happen to the market? Would the FED just start printing away? The end of QE and the bond purchasing program not only drops the bond markets and overvalued stocks, it makes silver and gold look extremely bearish. Many factors could be playing into this with the Swiss Gold Initiative, Ebola, fear and other geopolitical concerns. All of these affect the market in an odd way since we see a huge demand for gold, yet the price is falling with demand growing, it hardly seems right. The analysts will do the blame game, and try to make sense out of it, who better to blame but the FED. Especially convenient when past members of the FED are blaming the system that they created or put in place.
Greenspan stated that the FED’s balance sheet “is just a pile of tinder” and gold is a good place to invest, because he feels it will rise “measurably” in the next five years. After 19 years at the FED, seems odd that he would slander the way they have been handling things, even with his successor Bernanke still in power, yet he said the FED “fell short of its goals” when it came to economic growth and unemployment.
Alan had been on or near wall street since the 40s and knows his way around money and economics. During his time with the FED he used standard Taylor rule of economics, that every percent that inflation rises, the central bank should raise interest. This was not the view or beliefs Alan had from the 1960s. Greenspan seemed to have been a huge advocate for gold, in fact he published an article on Gold and Economic Freedom in 1966. Some of his statements in it are jaw dropping knowing now what he has done while in the FED, saying gold was a great way to save your money and was pumping up the gold standard. Just like what he is stating now, yet in 1966 gold was $35 an once.
This was of course before he was a member of the FED or a consultant for President Ford, Bush and Regan. At this time his job and focus was being an economic consultant for his own company, backed by beliefs non-existent of his time in the FED. From 1987 to 2005 Alan did not partake in any broadcast interviews unlike Bernanke his successor who makes regular public statements trying to gain assurance of the media and people, trying to gain transparency instead of the secretive past of the FED. Greenspan before and while serving in the FED was also Director of Foreign Relations and served as director of huge corporations like JP Morgan, Mobil General Foods and many more. He even assisted Nixon as coordinator on domestic policy. Alan was regarded like a rock star to politicians and the financial world, until some bad calls were made, then the subprime mortgage crises that tarnished his reputation.
What is Alan really saying that you have less than five years before the market collapses, so you are welcome for the QE handout, now move over to gold? Greenspan may be feeling guilty for the years he helped drain the money supply; he now is on a buy gold campaign when he is clearly a monetarist. He is a major manipulator and is a key player in where we are today and 4 trillion dollars in debt. Now he goes back after all we have suffered though, as if we do not know that PMs are a way to insure our money. Is he just talking to the elite, because he knew the way to grow the economy in 1966 and did a 180 turn. What is really happening here is major market manipulations; they sell paper gold from $1300 down to $1200. Manipulators are then guaranteed volume to be able to buy at traders stops. Then they buy back positions at $1200 (if they can see the order books) then make money again when it rebounds, voila.

 

[fxmade2trade]

The Lesser of Two Evils
As Americans today is a very important day, as midterm elections come to an end, so do many politicians dreams for change. The social issues that most Americans vote on, or are concerned about are the least important to the masses. I am not saying that gay rights and abortion are not worth campaigning and voting for. This year you may want to hold back your own personal donkey vs. elephant emotions, because how the FED is run, is on our table for a vote, this could be the most important issue we face historically. Could the FED and its interest rates be run by congress for the first time in history?
This is what people should be worried about, if you have money in a bank, these issues should be what your main focus is on. That the interest rate polices would no longer be controlled by the FED. These issues are huge; in fact, this election is the first time we have seen members of the GOP issue bills like this. Even when a bill to audit the FED was introduced 2012. We saw what challenging the FED did to Ron Paul. The FED is running our economy, so lets put aside our emotions about these social issues and understand what is really on the ballot here, the less active the FED is the much stronger the USD is. We are seeing this now, the USD is on a four year high, this is because of many factors. A few of those factors are the announcements about what is happening with the FED and its decisions to end QE. The negative interest in Europe and now this legislation challenging the FED, we see the USD rising with people’s new sense of security in the market and economy.
The outcome of this election, which if the GOP takes the office, the FED will have to answer to someone, means its days of control will be limited. The GOP has yet to control the senate since the 2008 crash. That does not say too much, since the democrats have been in control we are also massively in debt, even though we also have not seen a crash like that since. For any group to change the position of the fed, it could be a potentially suicidal situation. If the FED raises the Federal funds rate this would destabilize the economy all the leverage and carry trades unwind, the stock marked sells off, because of leverage the prices would crash. On the other hand, spending money is the power congress has. Lowering interest expanse, congress is empowered to spend more created and taxed dollars by the trillions. It is kind of a lose-lose situation.
Elections should be a way to win and make changes without a fight or war, yet who can win when our leaders are lawless and we can only choose between the lesser evil. If you look at past elections and the puppets that America has, all of our presidents since Kennedy have been CIA run. Regan just read the teleprompter, Bush… need I even comment, even Obama who I was all for until I looked at the facts. Throw an election where we have someone like Putin up on the stage, no writers or hands in his pockets, just someone fighting and believing in us, in our country, not for all the corrupt aspects of money.
As an American, I do pride myself on freedoms that we have, everything from choice to ability. However, there is a major price in this delusion, because we are brainwashed daily, media forces our belief system and desensitizes our souls. Hear no evil, see no evil is how we view the world. Even though we think we are free and that our votes are worth something, it is all a dream in a very corrupt world. Once we all wake up and see what is really happening, I do not mean your status on face book, we may really make a change for ourselves and nation. The Lesser of Two Evils

 

[fxmade2trade]

Red Pill, Blue Pill = Bad Trip
If you want to believe the surge in oil prices today are a direct reflection of a strong economy, you are sadly mistaken. A huge pipeline exploded in Saudi Arabia. Prices fell under $76, possibly the U.S., Israel, Iran, Russia, or ISIS blew up a pipeline to increase the value of oil. Yet the government stands firm that it is the increasing deflation in our economy. Most likely, it was someone like Goldman amping up their Christmas bonuses. This could be the most transparent administration we have even seen; the GOP could not even wait twenty-four hours to move the price of oil. When oil prices fall, it hurts the GDP, and that the new senate just could not have that. Our world is looking like some mainstream action movie with conspiracy, shooting down planes, deadly viruses, and terrorists, domestic and foreign. I mean ok, the elections are over let the destruction begin, first up red team raise oil, bomb something! Now increase the price of health Insurance and monopolize it ASAP.
Seems there are no repercussions for all of the bold ringleaders, blatantly unleashing these catastrophes on the world, why are the people so blind to facts and numbers. It is no wonder they want to legalize marijuana, it is not just the tax that states make millions on each month, really it is the only true hope we have for the economy. It has to keep us blind to the obvious conspiracies and manipulation generated by the Administration and their Central Bank club. The market was down, oil was down, oil goes up market is at an all time high, not really rocket science. Now with McCain head of senate let the chaos of military spending begin. What do we need now? A war with Russia would be great, they do not buy many bonds, and we are already liquefying the Ruble, making Putin unappealing for China and Iran to align with. Higher defense spending is about to be the new normal, most of the GOP is ready and waiting.
We could just be so naive that there may not have even been a pipeline explosion at all, they could have just closed it off to shift the demand. Oil manipulation is an odd one, you would think that with everyone having a phone and how into our “live” media and You Tube coverage that we are in touch with all of it. I have been on the set of movies and helped with digital imaging and voice-overs. I have seen what people can manipulate with technology, even if you see it and hear it; the simple fact is it may not be real. How many times do you think “they” have gone into a country or village to gain information or resources and said it was for something very different? Need more money with oil, bomb, or close a pipeline then buy or sell. Need more military spending create a war? Need to know what China’s technology is capable of, poof make a plane disappear. It goes on and on. What we are seeing with metals is just another fine example of mass manipulation.

 

[fxmade2trade]

Liquid Gold
While on vacation in the middle of the eastern Oregon checking in now and then to see spot prices. I was not too shocked to return to the same thing that took place last week. Gold is moving quickly, oil is the main initiator here, as I wrote last week, that TPTB would not let it get lower than $75. Thursday it was $74.42 if the prices remained low it could cause a major problem for the Keystone pipeline and make it financially undo-able, the break even price for the new Canadian oil production is around $85, already up and running producers can do it for much less but this affects all the new projects.
Is it really a surprise when it came down to the release of this passing, that we see oil rising. The Democrats are now standing behind the approval for the Keystone XL pipeline. All we have to do is sit back and wait for the president to sign it, since he is in Asia he will get to it sometime in the next week. Even though Congress might try to take the responsibility away from Obama, he is the only one who can approve it because it crosses international borders. The question every broker and oil executive is wondering, will he pass it? Legislation's like this in the past have been vetoed and frowned upon by the White house administration. The pipeline is a major concern for the environmentalists that the Canadian extraction could worsen global climate changes and threaten the U.S. waterways. On the other side, this is huge for the U.S. to become energy independent, creating mass amounts of job growth that can lead to a strong U.S. economy and we are in extremely different circumstances than when this bill was pushed in 2008.
We know that gold tends to follow oil in the market and the indicators to make calls happen fast. With the rise of the Euro and the dollar longer than it should have been we have to add in all the factors that sway PMs for instance we have the Swiss Gold Initiative coming and traders on high alert waiting the vote, but many already assume it will be a no. The physical gold moves the market way less than the digital kind. Let us add GOFO Gold Forward Offered Rate, kind of a way to swap gold in return for USD a lease to own dollar rate. However, there is not an interest like on a lease with a borrower and lender where the lender gains it is more of a swap because the lender is the one paying a rate of interest. It is not the spot price of gold; it is a subtraction of LIBOR corresponding values. These swaps are made from one up to 12-month periods. Shorting mass amounts of gold drives up the lease demand and that GOFO then is lower. There are no supply problems for contract and the idea of leasing metals appeals to many especially when they see the contracts lower than spot price like we have. A negative GOFO shows that demand for the swap is high; this could be for lack of inventory by COMEX or the futures offered by the SGE. These indicators with the GOFO could be that big changes in the PMs could be on the horizon, even if the demand is just so traders can short gold the GOFO has shown the bottom price before could it again?

 

[fxmade2trade]

Gang Related
For years now, the United States was eager to follow in the footsteps of Japan. In the newfound sector Japan has come into, regarding inflation sheds light on the FEDs reality that Quantitative Easing (QE) may be here to stay. The US is about to see inflation like never before. News has come out stating that the raise in interest rates discussed by the FED is looking close to impossible to achieve. Central banks create foreign capital that floods the US and pushes rates down. The statements that have come out state that the FED has no idea how they will make it work without QE. The focus and comments that Yellen has discussed about diversity within the FED would seem that she is more interested in women becoming executives than in finding a solution. People may believe that the FED is controlled by Congress; truth is everyone is controlled by the FED, with an exception of banks holding mass amounts of precious metals they have more control than we could ever imagine.
What will the solution be? Can there even be one? We are so in debt and printing money seems to be the only way the US will stay a global power. Around the world, leaders are becoming more and more disappointed in the actions, as well as the lack of action, taken by the US. This leads to uncertainty with the USD and has other world leaders looking at ways to prevent America and keep it from overpowering the decision making process for other countries that gain headway economically.
When you look closely at America, you can find some major flaws. Yes, it is a land of freedom, and believe me when I say I am blessed to be in this country and to be a proud American. The problem is Americans are such individualists. The fact is we strive for individuality with ourselves, our families, especially when it comes to our money. We are the prime example of low- and high-class categories. When it comes to communities in the US, you see a strong bond in lower income communities, where reliance, family, and even gang affiliation... If we look at this from a global military perspective, you see America as higher class, with other counties looking like those community driven neighborhoods. So why wouldn’t they just team up with one another to create their own “gang?” While Obama is looking at pipelines and immigration, he seems nearsighted to the fact that other countries are teaming up while America is warming the bench, unable to play at all.
America has not needed (so far) to team up or rely on anyone or anything but oil, keeping it in USD and keeping USD in global reserve currency. Other countries are sick of us dominating the game. America has the force and power to take over anything anywhere at anytime. Just to put this in perspective, no mater how many weapons a country has, America reigns supreme. Warfare is fought by the powers of finance more than weapons. And we love to spend our QE on our military.
Yet we see Putin making nineteen presidential trips this year alone, meeting up with many world leaders, most recently with Kim Jong-un. That must have interested Hassan Rouhani, the leader of Iran, who has eagerly been waiting approval for “nuclear energy.” The decision is supposed to happen Monday. Is it so odd that we do not see this information on most news networks in the US? This writer does not see approval going forward. I doubt Rouhani will be surprised at the denial and why wouldn’t he just make Russia and North Korea his allies due to the fact they have the nuclear power Iran is in need of.
Right now, other countries are feeling the wrath of treachery, power, and hypocrisy the US is ruled by. No one seems to be feeling it more than Russia. Globally we cannot survive without the oil from Russia, yet we keep pushing oil prices down, expecting them to fall. We seem to forget that Russia has been living comfortably in a black market with hyperinflation since the 1990’s. Us trying to destabilize them is close to impossible. They are true survivalists and have the resources and global firepower to keep up with and surpass our already bankrupt US shale companies. Putin knows Russia will be just fine when, in a few years, oil will be right back up and the US will be in yet more debt. America is the most powerful when it comes to many things, the people are not survivalists by a long shot. We are sheltered and blinded by media and comfort, but we mere sheep, with a government that is controlled by bankers not the democracy that so many would love to believe exists.
Putin is set on shifting the anti-corruption plan many countries set in place globally. He has been preaching about the corruption of foreign leaders and it could be much closer to his home than we understand as regards the Ukrainian conflict. The whole mess with Ukraine seems to be a conspiracy lover’s dream come true. All we know is that the plane went down. We have only a third party video and no black box to be found. Nor is there any solid information that Russia was the one to bring it down. What is odd is that the Dutch have agreed to keep any information about MH17 a secret…and somehow they got 122 tonns of gold back from the NY FED. We are trying to destroy the ruble by driving down oil prices, while in all reality it costs Russia only about $35 a barrel, unlike the US and its strict guidelines for oil manufacturing. After the $35, the rest is all profit for the Russians. Even with oil prices dropping gold keeps rising it seems to be all these newly formed teams are becoming more and more interested in.

 

[fxmade2trade]

The big “barrel” out
How can our own private oil companies compete with the Saudi state run oil companies? The Saudis have predicted this decline for months now, so who is running this decline in the price per barrel. Who owns the most oil owns the world, and the Saudi empire cannot and will not be affected by the digital generated commodities prices, they will make revenue regardless. Could it be such a large manipulation in oil price? America’s grand schemes to keep Putin up at night, or keep Iran on its toes, disable Venezuela? I do not think this was Americas plan, yes I see the pros in low oil; we can fund our overwhelming service economy. Americans are huge consumers, when those numbers drop right before Christmas people are not spending, instead they are saving. This can take a toll on the US more than low oil prices will. The FED has stated that a lower income would provoke more spending. The benefits of the low oil price is primarily for the EU, China and most of East Asia, not the US or Putin. I wonder if the FED and The Powers That Be thought this one through.
In 2005 we saw a need for oil at about 7 million barrels a day, it is estimated that that number will be above 9 million by 2015. With oil need higher than ever, many companies took out massive loans in this expectation and hope oil will again be over $100 a barrel as previously. The US production was in full force before the ultra steep decline in price per barrel. The lower prices have made it impossible to expand production, and have put the bids on the energy index far into the red; in fact, the energy market has been one of the worst sectors on the index. In October when people were saying how $88 a barrel was at an all time low, and the seasonal need for oil would boost cost and not to worry. The analysts at OPEC were extremely wrong this time, since as of today it stands at $63.56 and heading lower. It seems that oil is falling at an astronomical rate as low as it has been since 2010 after the last crash. It seems people forgot it was as low as $35 in 2008-2009 and we are still in the $60 range, is this decline a indicator of what’s yet to come.
Not to mention that energy sector on the index makes up the second largest high yield bond market for investors and with oil rates dropping and the energy sector performing badly it has many of those investors pulling out leaving the banks to cover the high liquidity its causing. The selling of the banks high-yield debt exchange traded funds “junk bonds” overall banks may not be able to sell off the bonds to break even. The sizable share decline could push the high yield market down lower leaving investors looking for a new investment.
We are living in a massively over-leveraged economy, how can we achieve sustainable economic growth with this extreme debt the monetary system has created. The fiat and crypto currency and any digital form of decimal points have created a need to hold on, and seek out a safe hold for our investments. What was once seen as a smart move for a working citizens to invest in a bank or IRA even SSI is now a total nightmare. Deceiving people and lies seem to make more money that honor and truth, and if we are talking about the big bucks, we are taking heavy manipulation .It seems nothing is sacred anymore and it all comes with a price tag attached, we have police and government that we all once trusted breaking us down and pushing us further into a hole we cant climb out of. 46,000,000 individuals have been on food stamps for 37 straight months. They say unemployment is at an all time low but they only count people that are filing for the first time. For many investors, looking at the numbers and graphs it would seem that the US is growing steadily and things are A-OK. Things couldn’t be further from the truth and its about time to make some real money. Don’t just follow the trend, the information can be overwhelming and takes more time than many people can invest into a profitable strategy. I continue to gain in trading metals as well as fourteen different currency trades weekly.