Post by stingray on Sept 13, 2015 9:28:12 GMT -5
You can hear something in the distance. The world wide financial markets are rumbling, conspiracy theorist are running rampant with every military exercise, our police officers are being targeted daily and now el nino grows to a size never seen before in history. September is now upon us. I could write a novel on all the major events converging in this month and the next.
Money continues to move from growth stocks and mutual funds to treasury’s, metals and inverse funds. This shows that investor confidence is waining. The Sentimen Trader reported this week that the standard deviation of money moving from bullish mutual funds to bearish went from 3.4 to 5.1. That means that for every dollar invested in bullish funds there is $5 invested in bearish funds. Investors are preparing for a correction. The dip that happened 3 weeks ago Monday was not the correction. It was an indicator that the markets are over valued as the markets continue to be very volatile. The media and the talking heads once again are trying to convince the American people that we are on the verge of the market taking off to higher gains.
The truth is the Fed’s have no clue to what is actually going on. They continue to think that printing money is the answer and that 2% GDP growth is the new norm. If we look worldwide at the 181 countries that report GDP only 9 have positive debt/GDP. Most other countries are at unsustainable levels including the US. America’s GDP currently stands at 102%. That means for every 100 dollars the economy produces the government spends 102 dollars. The government currently borrows money just to pay the interest that is owed on own debt payments. The government must use common core math.
The IMF, International Monetary Fund, continues to look for a way to help stabilize the world economy upon a weakening dollar. We keep hearing about the alternative reserve currency that the IMF is going to release on Oct 20th. On their website they are talking about using a basket of currencies weighted by the strength of each one. A currency that would include the Dollar, the Pound, the Euro, the Yen and the Yuan. In a lengthy report issued a couple years ago by the IMF, they indicated how they would like to see the Yuan as the eventual prominent universal currency.
Why would the IMF be interested in using the Yuan vs. the other long standing currencies already recognized worldwide? Because the central banks in the US, EU and Japan have been printing money at a feverish pace. Since 2008 the US has printed $3.7 trillion, Japan is printing $58 billion a month and the EU continues to print $67 billion a month. This has equated to stagnant growth in each economy. The US averages 2% growth annually, the EU is growing at 1.5% and Japan at .8% with their latest quarter being -.3%. China on the other hand had 7% growth.
China is set to start listing oil futures in the yuan next month instead of dollars for the first time. Russia is trading commodities for oil with Iran. The dollars only value is due to the OPEC nations trading oil in dollars. Once this stops the value of the dollar will be in a downward spiral and as China continues to dump US treasuries, there is nobody their to buy them except other government agencies, like Social Security and Veterans Affairs to name a couple.
In the past when a nation tries to cut ties with the US and the dollar with their oil programs, something happens and we invade the country and then re-establish the status quo of the oil for dollars program. Currently, China has ships 50 miles off the coast of Alaska and Russia has a large fleet in the North Atlantic. Is this their way of deterring any aggressive tactics by the US? Quite possible.
Money continues to move from growth stocks and mutual funds to treasury’s, metals and inverse funds. This shows that investor confidence is waining. The Sentimen Trader reported this week that the standard deviation of money moving from bullish mutual funds to bearish went from 3.4 to 5.1. That means that for every dollar invested in bullish funds there is $5 invested in bearish funds. Investors are preparing for a correction. The dip that happened 3 weeks ago Monday was not the correction. It was an indicator that the markets are over valued as the markets continue to be very volatile. The media and the talking heads once again are trying to convince the American people that we are on the verge of the market taking off to higher gains.
The truth is the Fed’s have no clue to what is actually going on. They continue to think that printing money is the answer and that 2% GDP growth is the new norm. If we look worldwide at the 181 countries that report GDP only 9 have positive debt/GDP. Most other countries are at unsustainable levels including the US. America’s GDP currently stands at 102%. That means for every 100 dollars the economy produces the government spends 102 dollars. The government currently borrows money just to pay the interest that is owed on own debt payments. The government must use common core math.
The IMF, International Monetary Fund, continues to look for a way to help stabilize the world economy upon a weakening dollar. We keep hearing about the alternative reserve currency that the IMF is going to release on Oct 20th. On their website they are talking about using a basket of currencies weighted by the strength of each one. A currency that would include the Dollar, the Pound, the Euro, the Yen and the Yuan. In a lengthy report issued a couple years ago by the IMF, they indicated how they would like to see the Yuan as the eventual prominent universal currency.
Why would the IMF be interested in using the Yuan vs. the other long standing currencies already recognized worldwide? Because the central banks in the US, EU and Japan have been printing money at a feverish pace. Since 2008 the US has printed $3.7 trillion, Japan is printing $58 billion a month and the EU continues to print $67 billion a month. This has equated to stagnant growth in each economy. The US averages 2% growth annually, the EU is growing at 1.5% and Japan at .8% with their latest quarter being -.3%. China on the other hand had 7% growth.
China is set to start listing oil futures in the yuan next month instead of dollars for the first time. Russia is trading commodities for oil with Iran. The dollars only value is due to the OPEC nations trading oil in dollars. Once this stops the value of the dollar will be in a downward spiral and as China continues to dump US treasuries, there is nobody their to buy them except other government agencies, like Social Security and Veterans Affairs to name a couple.
In the past when a nation tries to cut ties with the US and the dollar with their oil programs, something happens and we invade the country and then re-establish the status quo of the oil for dollars program. Currently, China has ships 50 miles off the coast of Alaska and Russia has a large fleet in the North Atlantic. Is this their way of deterring any aggressive tactics by the US? Quite possible.