Friday, December 15, 2017

Roosevelt's socialist agenda shifted power of interest rates to Washington DC. Fed raises interest rates to stop market bubbles in NY but harms the commodity regions

The Separatist Movements in Canada

Many people are aware of the various attempts of Quebec to separate from Canada. What they are unaware of is the supporters of the Western Independence Party of Alberta. There has been an undertone of the separatist movement in Alberta which actually stems from the Great Depression usurpation of the Federal Reserve by Franklin D. Roosevelt.

Why is Western Canada separatist movement caused by Roosevelt’s usurpation of the Federal Reserve? Everyone looks to the United States and assumes whatever structure they adopt must be correct. The Euro was crafted because the USA has a single currency. They did not consolidate all the debts and that has created a nightmare.
So what is the link with the structural usurpation of the Federal Reserve? When the Fed was created, it was the solution to the Panic of 1907, which was set in motion by the disruption of the internal domestic capital flows caused by the San Francisco earthquake of 1906. The insurance companies were in New York. Consequently, the cash flowed to the West and a shortage developed in the East.
The original structural design of the Fed was to establish 12 branches to manage the capital flows domestically. Interest rates would decline where there was an excess of cash and rise where there was a shortage. This, they believed, would cause capital to move between the branches to balance the national capital flows and economy.
When Roosevelt comes to power, he wanted to control the economy for his socialist agenda. He usurped the power of interest rates to Washington DC. He, therefore, abandoned the structural design of the Fed and ever since the capital flows have been concerned internationally, not domestically.
As a result, the regional problems have resurfaced. The central bank raises interest rates to stop real estate or stock market bubbles in New York and that harms the commodity regions. When commodities have boomed, the financial regions are normally suppressed. We have called this the Texas-New York arbitrage.
What is resurfacing is the regional differences within Canada as well as the United States. One-size fits all of the interest rates pits East v West in both Canada and the United States. Farmers and miners are forced to pay higher interest rates when their economies are declining because of speculative booms in Toronto or New York.
This is the root cause of the regional separatist movements we are witnessing in Canada.

Wednesday, December 13, 2017

Hedging models are either long or short and DO NOT add to positions as they unfold as is the case with Speculation

Trading v Socrates

QUESTION: Marty; All of these Robo trading plans are simply a flat model. Socrates is forecasting short and long term rather than just trading a flat model. Am I correct?
PT, Canada
ANSWER: Correct. The approach to modeling is traditionally flat. It will take one market and attempt to create a buy/sell model on that market exclusively to the exclusion of all other markets. This is the reason these flat models will blow up even such things as the Black & Scholls, which won the Noble Prize before it created the Long-Term Capital Management collapse in 1998. That is the subject of the book titled – When Genius Failed.
The flat model approach is a disaster. They will work for a while and the blow up BECAUSE they are incapable of grasping the wildcard contagion. That is what happened in the LTCM collapse. The illiquidity in the collapse of the Russian market led to the selling of all other markets to raise cash. There are plenty of people who are soliciting money claiming they have “mastered” our model. That is absolute nonsense because they are interjecting their own OPINION and that will be a guaranteed loss down the road. This requires NO OPINION and the fact that someone will try to supplement by writing reports on markets shows they are basing their trading on opinion.
Here is the Euro traded by Socrates just using Reversals without cycles from a pure hedging perspective. There is a huge difference between being more active using short and long-term Reversals. Hedging models are either long or short and DO NOT add to positions as they unfold as is the case with Speculation.

The Speculation models also differ depending upon using just the long-term Reversals and if you use both the Short and Long-Term.
In both instances, this is using the Weekly Level of activity. You can step back and use just the Monthly level. The trading performance will vary differently depending on what your objectives are.
Obviously, anyone soliciting model trying to claim they are using Socrates are just not telling the truth. They will inject their own OPINION and that will override everything.
We are reviewing REPUTABLE firms that will use our model WITHOUT interjecting OPINION. During the 1987 Crash when the Brady Commission investigated what they thought was caused by computer trading, the discovered that the computers were right, the traders did not follow them.

EU wants to lower the number and include gold, gemstones, and cash debit cards while travelling

The EU is now developing strict rules for carrying cash when traveling to non-European countries and returning to Europe. The revision of the First Cash Control Regulation from 2005, which stipulated that EU citizens should register cash in excess of € 10,000 when leaving the EU or when returning to the customs authorities have to, is what is under review. They want to lower the number and include gold, gemstones, and cash debit cards.
Interestingly, cryptocurrencies are not to be regarded as cash. Why? They are not sure how to detect them. The EU explanation reads: “Despite the high risk emanating from cryptocurrencies like Bitcoin, these are not added to the cash. The reason for this is that the customs authorities lack the technical means to discover cryptocurrencies. “
The customs authorities can now seize any amount of cash less than € 10,000 if they suspect that the money is somehow involved in any criminal activity. This is authorizing the Civil Asset Forfeiture that has been so profitable to the United States. Hence, the EU does not clearly define what suspicion is required to classify as a possible criminal activity. That will be avoiding taxes.
The EU is also extending the new rules to any freight shipment involving cash. Already, one cannot send cash by mail. This is now freight shipments. A friend used the service where you can send your baggage ahead of you for a trip. He was called down and had to remove $2.75 cents that were in a suitcase headed back to London. So there is no amount too small.
The purpose of the rules is now openly being justified to fight against tax evasion, along with moonlighting and terror financing. The government clearly understands that cash is the only way for citizens to protect their savings from access by states and banks and any special levies or wealth taxes. Closing this door merely opens the door to cash investment turning to movable assets particularly shares.

Wednesday, December 6, 2017

The government should just create the money it needs to cover its expenses.

QUESTION: Do you support Trump increasing the debt by a trillion dollars? I thought you were conservative?
ANSWER: Well the first thing you have to do is get a grip on what is a reality. Governments around the globe borrow every single year with absolutely no intention of ever paying off their national debts. So what is the difference? If you think giving the money back to the people is wrong and it is better going out the back door for political contributions, then sorry, I oppose that.
There is no “conservative” v “liberal” when it comes to the debt. They all spend more than they take in and nobody cares about paying off the debts. So I do not care what political persuasion you are, we will end up at the same place when the dice stop rolling. BROKE!
I support cutting income taxes to ZERO. The government should just create the money it needs to cover its expenses. Let’s get real here! All national debts, including Germany, show that on average 70% of the debt is just accumulative interest. So that is money out the back-door.
Rome never had a national debt and the first 500 years they existed by creating money to pay their expenses with minimal inflation because of the economic growth. About 80% of their budget was paid with the creation of new money.
Even the Bible said giving 10% was realistic, not 40% to 60% as we have under the current Marxist style governments in the West.
The first country that wakes up and abolishes income taxes will blow everyone else out of the water. All they have to do is say they will adopt the way the United States became great. There were only indirect taxes between 1792 and 1913. If the nation survived with no income taxes, we can do it again and let the people spend their own money. You will see massive job creation and governments will spot competing with the private sector to borrow money.

Lot more hidden order in this 8.6 frequency than meets the eye

Open the Door to the Universe With Cycles

QUESTION: You wrote: “Once you begin to see the entire universe is governed by the 8.6 frequency, the doors to a hidden order spring wide open.” What do you mean?
ANSWER: The journey of our solar system around the center which revolves as the earth does around our sun annually, takes 25,800 years which is three times 8.6. Now, one solar day is 24 hours. If we take that 24 hours times 60 minutes, we end up with 1440 minutes. Now multiply that by 60 seconds in a minute and we arrive at 86.400 seconds in a day. There is a lot more hidden order in this 8.6 frequency than meets the eye. The key to moving forward in our knowledge is to understand the significance of cycle frequency when absolutely everything has a frequency.
You can kill people with sound. The military has been developing weapons simply using sound waves. This video demonstrates that they can also repel mobs with simply a sound cannon. There were the sound weapons used in Cuba to attack US and Canadian diplomats and their families. This is all about using cycles.

Our models of food prices appear to be rising after 2018 moving into 2024

While all eyes have been on the volcano in Bali,  the Siberian Shiveluch Volcano erupted yesterday for over a 20 minutes spewing ash 6 miles (10 kilometers) high into the sky. The 1963 eruption in Bali was one of the largest and most devastating eruptions in Indonesia’s history. Nevertheless, it was still only a VEI5. Ideally, an eruption in Bali was due from a cyclical perspective in 2018.
In the case of the Siberian Shiveluch Volcano, there have been significant eruptions taking place in 1854 and 1956. The most recent eruption began again on August 15, 1999, and have continued periodically when on February 27th, 2015, Shiveluch erupted spewing ash into the atmosphere about 30,000 feet crossing the Bering Sea and into Alaska. From a cyclical perspective, this particular volcano was due to start again in 2017.
If we continue to get several volcanoes erupting into 2018, then this should be an active period and it will contribute to Global Cooling. Our models of food prices appear to be rising after 2018 moving into 2024. This would tend to indicate that we may indeed be looking at a rising in the volcanic activity in many places

Reason that China will succeed is because they are turning inward by building their economy into a consumer reservoir

How China will Surpass the West

I just finished watching “The Forecaster” and I am impressed that you survived what the government did to you. As a former Green Beret from back in the day, I can appreciate what you endured more than most, my hats off to you.
All I can add is I hope to hell that no government including ours every gets your source code; as a former military officer and student of history, I know what our government is capable of.
I do wonder if China will survive the coming collapse in the west, aren’t they too tied to us?
Keep up the good work!
ANSWER: They will push you to the edge, hoping you break. There is a fine line and if you cross it you lose all fear of death. Then the table is turned. There is no threat they can make that will change your position. Some ask, “Why did you not just turn over the code?” They assume that they will actually honor what they tell you. They NEVER tell the truth, and if you turn over what they demand, you lose everything for they can kill you and pretend it was some accident, heart attack, or whatever. The press will believe them of course. That’s why they are there. You are dancing with the devil and it becomes a dance to the death. I was released ONLY because I got into the Supreme Court. Once they were taking the case, the New York boys had to release me.
Concerning China, the reason that they will succeed is because they are turning inward by building their economy into a consumer reservoir and eliminating their dependence upon the West. They will decline at first, but they will recover and make new highs when the West fails