Equity markets are flat this morning, with the dollar slightly higher, bonds lower, oil lower but holding above $112 a barrel, gold is down a little, silver is setting new highs still, and food commodities are mixed.
There is no economic data today, but Alcoa kicks off earnings season by reporting today. The rest of the week brings PPI, CPI, International Trade numbers, Industrial Production, and “Consumer” Sentiment.
The chart of last week belongs to this comparison of SPX price versus share volume. If volume confirms price, then the markets are in deep doodoo:
Then again, as long as money printing continues and the market is captured by the "FED" and their minions, then technical analysis may be mute as the market price is simply their holographic illusion.
Then again, McHugh has a theory that their manipulation is predestined - that they were meant to play their money printing part in order to complete the very large and long term technical patterns in play - as he now sees this giant expanding megaphone top in the Dow Industrials and also sees similar long term topping patterns in the other indices as well:
All I will say in this regard is that to Sigmund Freud everything was rooted in sex... to a surgeon all your ills can be surgically removed, and to the pharmaceutical company every ailment can be cured by taking a pill. To a technician it is all a part of the technicals. To me it is an illusion of a free market that's actually owned by those who wrongfully stole the ability to produce money - and thus it is corrupt. You will have to decide from your own perspective what the truth is, the future from my perspective is known in that the tide of power is going to shift and it's likely to be a violent affair in the end.
Yet another large aftershock has struck Japan near the Fukushima nuclear plant and rendered the plants without power again temporarily. The situation there is beyond bad, it is a nightmare that is anything but under control. TEPCO is finally admitting that containment is breached in reactor 1 as it is failing to hold pressure as nitrogen is pumped in. The truth is that the first 3 reactors all experienced core melt and that corium (a mixture of fuel, rods, and other metals) is sitting at the bottom of the reactors in a mess that makes it impossible to cool. The corium is hot and is burning through containment. To give you a visual of what’s happening, here’s Arnie Gunderson once again:
Nuclear engineer Arnie Gundersen demonstrates how Fukushima's fuel rods melted and shattered from Fairewinds Associates
TEPCO is admitting that they do not know what steps to take next and are saying that the reactors are too hot to simply bury in concrete. While that is likely true, they can work to contain the radiation on site by burying them first with a mixture of sand and boron, then burying with concrete. The radioactive water should be run through an earth filter and then buried under the sarcophagus. This process will be hugely expensive, but the longer they take to start, the more contamination occurs in the world’s food supply.
The Japanese government has finally widened the evacuation zone around the plant, something they should have done a long time ago. But the government and TEPCO are far too close, the relationship is incestuous. This produces the inability to act on behalf of the people as the corporation and the politicians are acting in their own self-interests instead of doing the right thing for humanity.
What should happen, and this is a part of what the U.S. President should be demanding, is that TEPCO should be removed from oversight and outside experts brought in and given unlimited resources at their disposal. The fact this is not being demanded by the U.S. shows the extent to which our own politicians are also captured by corporate interests. They would rather watch the food supply be poisoned knowing that the future will bring untold cancers and suffering, than to get on with the process of admitting mistakes and properly containing the radiation.
This situation highlights the failure of government to work on behalf of the people – something I contend began in the year 1913 with the implementation of the criminal “Federal Reserve Act.” It’s criminal because it isn’t “Federal,” they don’t have meaningful reserves, and they aren’t even a bank. They are a private corporation owned by other corporation created for the sole purpose of hiding the trail of money and disguising the fact that Congress was conned and bribed into relinquishing the money creation power over to a few individuals – and since that time progressive capture of government, regulators, and all markets has occurred non-stop and in a methodical progression.
The very function of and concept for the existence of corporations has been turned upside down. Take General Electric for example. They are the last remaining original DOW Industrial, but they, too, in fact failed after going into the money production business and leveraging themselves to infinity on bad debt. They failed, and we bailed them out. Now they don’t even pay taxes and their CEO is appointed by a captured President to help turn around the economy! I’d cry if it weren’t so hilarious.
This is the same company that designed and helped to under-build the reactors in Fukushima. Now, the same private company that is allowed to manufacture money and to use that money to lobby politicians (and doesn’t pay taxes), also owns a very large swath of the media and thus what you are hearing from their media is far different than the reality that you are hearing from me – as I am not conflicted and genuinely worried about our health and about the path of our nation. That worry is far different than GE, the corporation’s worry. They worry about never ending growth, never ending profits.
And thus our government and corporations no longer are working to the benefit of humanity, they are working against humanity.
This brings us to a dire situation in which what most people believe to be an effective political process is not really effective anymore at all – it is meaningless other than as a tool to distract you and to make you think you have some input into the system, which you do not.
The real power in a sovereign nation is in the power to control the production of money… that power MUST reside in the people’s hands in order for their vote to have any meaning. If it does not, then those who create the money will use it to override and to rule over the people – and that is exactly what has happened in this nation and to the world.
It is now impossible for the people to straighten out the situation through the ballot box.
No, Donald Trump is not the answer to your prayers, he is just another greedy snake oil salesman – you vote for him and I will remind you later that you were warned.
Creating change that can attack the root of the problem and that can change the power of money creation back to the people will require dramatic action – it will require the people to somehow topple government and force the “Fed” to be dissolved. I don’t know how that can happen, but via revolution, world war, or just flat out economic collapse, it will happen, it must happen.
So play along with my Presidential Fantasy, knowing that this is going to ruffle a lot of feathers… But day 1 of the fantasy President is going to be traumatic in the sense that I believe our government is so broken that the current process cannot produce positive results that change government enough to remove the private special interest money from the process. Thus, as radical as this may sound, on day one of my fantasy Presidency I am declaring a national emergency and will be exercising extreme powers in order to right the political process, root out the greed and corruption, and then to lead a smooth transition back to a true Republic where the people’s productive efforts work for them and where the nation’s sovereign money system works equally for everyone.
Thus I am acknowledging that in order to pull off what I envision as a sustainable and prosperous path for the future that we must first TEMPORARILY swing to a more dictatorial approach in order to effect REAL and meaningful change. This requires TRUST on the people’s part for a period of time, but that would be well defined going in, and limited in duration to a time period of one year – Fantasy I know, but stick with me, I’m simply spelling out what needs to be done over the next few days.
Act 1 – Declare National Emergency giving the President temporary powers to override Congress and to revise/ eliminate current legislation.
Act 2 – Give the Japanese government 24 hours to remove TEPCO from control of Fukushima and to bring in outside experts whose purpose is nuclear containment, or risk having America move in and take it over.
Act 3 – Dissolve the Federal Reserve Bank, removing their corporate charter and placing all their assets into receivership.
Act 4 – Place all banks (and corporations that act like banks) into temporary receivership. During the transition they are to conduct business as usual, however, no new corporations can be created or merged, all bank assets are to be cataloged effective today, and nothing but straight pay will be allowed to any bank executive or employee. All banks and financial institutions will be run through a special one time bankruptcy.
Act 5 – Close all markets for a two week period to give time to get the entire restructuring plan known and digested – after that time, markets will open without limits – crash or fly to the moon, they will settle down eventually. Yes, a drastic shift of wealth, power, and control is going to take place.
Act 6 - Reinstate usury limits to be effective immediately.
That ought to be enough for one morning, I’ll get into more fantasy President detail tomorrow…