Van Tharp Article

Reproduced with thanks to Dr. Van Tharp – www.vantharp.com

This is a FREE newsletter that Van Tharp.com produces to subscribers, often there are articles that are extremely educational to traders/Investors and that is when I repost them.

See below and enjoy.

 

Articlefrank

An Interview with Frank Eaves:

Hit in the Head with a Marble Bag

Conducted by RJ Hixson

View              On-line

Last week, one of Van’s  research assistants, Frank Eaves, sent an interesting email  to Van and a few of the staff here.   In his note, Frank quoted this selection from Volume 5 of the Peak Performance  Home Study Course:

“Most people cannot, and do not, trade  with Bill’s simple strategy because it is not an efficient decision making  strategy. It neither generates options nor effectively evaluates them. But,  because your trading system should make decisions for you, it is an excellent  action strategy.”

In a subsequent conversation, Frank related how he had realized a number  of insights from those few sentences.  He explained his insights in plain  terms and his ideas seemed to hold a lot of potential value for our  clients.  I asked Frank if he’d be willing to be interviewed for an  article.  He agreed and here’s how it went:

First, that passage  mentions Bill’s strategy.  Who is Bill  and what is his strategy?

Van was talking about two traders.  One, named Jack, looked at a chart,  considered which directions price might go and considered what could go wrong  with each scenario.  The other trader, Bill,  used a simple mental strategy to make a trade.   He would see the pattern, recognize it, feel good about it, and place  the order.

Why isn’t Bill’s  strategy an effective decision making strategy? 

He’s not thinking about all of the options, what could  happen, or what the best choice is at this point.  His process is more automatic.

So that’s why it’s an  excellent action strategy?

Yes, exactly.  Bill’s  not there to consider all of the options — he’s there to follow his system’s  rules.

Your email made it sound  like some idea in that quote really hit you.   What was so remarkable?

Bill’s process makes the key connection between a mental strategy and a  trading system. Your trading system has a set of rules for you to follow that generate  an R-multiple distribution.  It’s the  system’s job to make decisions, not the trader’s. This is a very  big piece of the puzzle to being a successful trader and it really brings me  back to the foundation of successful trading — myself.

What do you mean by that?

It’s all psychology.  If you don’t  follow Bill’s strategy, you can’t execute a system to get a valid R multiple  distribution for it.  Without a valid R  multiple distribution, you don’t have a meaningful marble bag to craft position  sizing strategies to meet your objectives. Without being able to craft  effective position sizing strategies, you can’t meet your objectives.  This leads to a cycle of fail, trigger,  operate, test, exit, fail, then start over, which probably means looking for a  new system.  It can become an endless  loop and it’s a rat race — you are looking externally for what’s wrong when  really it’s all inside — your psychology.

What do you mean by a “meaningful  marble bag”? 

Van uses a bag of marbles at his workshops to represent a trading  system.  The marbles in the bag have  different colors which represent different R multiple trade results.  Pulling out multiple marbles from the bag is  just like executing trades — it gets you a set of R multiple results.  The bag makes a great metaphor for understanding  how to look at a system.  Viewing your  system as a marble bag simplifies trading so you can use Bill’s mental strategy  and forget about being “right” or worry about losing on any given trade.  The marble bag brings a trading system into  the domain of statistics and probability and mathematics.  Once you get to that domain, making trades has  a lot less emotional charge.  2+2=4 does  not have a lot of charge, it just is, and that’s how you should look at your  system.

You think traders don’t view their  system this way?

A lot of people seem to believe that the trading system is  the most important factor in trading success. That’s where  the Holy Grail analogy comes from, but that really shows a lack of awareness  that the system is just a set of beliefs.  It’s a way to help you generate  a set of results consistent with a particular set of rules.  How often  though do traders bend the rules when they trade a system?  You may get  “good” results from bending the rules but those results are not the results of  the system, they are something else. Actually, that’s a different marble bag than the system’s marble bag.

Why do you think following a system’s  rules can be so hard to do?

There are probably lots of reasons but let me just talk about following  the rules for a new system.  When you trade a system that’s  new for you, you have to  adopt the beliefs behind the system and they may not match yours.  It’s  kind of like clothes.  You are comfortable in your clothes.  If you  come to a technical workshop to learn a system, though, you have to take your  clothes off and try on the clothes of the trader who teaches the system.   Those clothes may or may not “fit” you — figuratively speaking.  If,  however, you keep your clothes on and try to put the instructor’s clothes over  yours for whatever reason, you are definitely going to be uncomfortable.   Which items will you remove first in that case? Not your clothes, you’ve been  wearing them a long time and they are comfortable.  So when trading that new system, you’ll do what feels  comfortable which probably means doing something other than “wearing  uncomfortable clothes”  or following uncomfortable rules.

Systems are just beliefs; they aren’t magic.   Sometimes at our technical workshops, though, I have heard people ask,  “Am I allowed do ‘this’ instead of ‘that’?” as if “this” would ruin the magic.  Again, there is no magic.  Adjusting the rules on a positive expectancy  system to match your beliefs is going to happen.  Those adjustments may keep it profitable or  turn it into a negative expectancy system.   Once you know that, however, you can identify specific beliefs, choose  to let go of them and adopt new ones.

I have seen some traders whose beliefs match  closely with the  instructor’s and they are able to trade a system well with very few  modifications.  Nearly everyone, however,  needs to make some modifications to the system’s rules based on their own  beliefs.  Sometimes these modifications  work but other times, they generate a negative expectancy.  Sometimes people believe that the poor  performance comes from a faulty system, but really, it can come down to a new set of clothes  that didn’t fit.  A system is 100%  beliefs so if someone else’s beliefs don’t work for you, figure out ways to use  your beliefs to develop a system.  Again — all psychology.

Then what advice do you give people about systems?

I encourage people to find any positive expectancy system with a decent SQN  score, use the position  sizing game to enter a trading system’s R multiple distribution, and trade  that — a lot.  Once you have your marble bag, you can see how position sizing strategies are what truly help  you meet your objectives — not the trading system.  Try risking 1% of equity, try more, try less,  try the other strategies discussed in The  Definitive Guide to Position Sizing Strategies, like market’s money.  Get a feel for how the position sizing  strategy works together with the system results and what one will work best for you.  That said, the limitations of multiple open  positions and portfolio heat still matter.   I think you could use multiple bags to overcome this limitation of a single marble bag simulation, but regardless, the  gains from understanding the idea far outweigh the limitations.

After someone understands the marble bag idea and how position sizing strategies really work, following Bill’s strategy comes a  lot easier.  And by the way, Bill’s automatic strategy also applies to  positions sizing strategies.

How so?

Your position sizing strategy is the engine that will take you where you  want to go and helps you avoid where you don’t want to go.  Once you set it though, executing it needs to be a matter of following its rules. Say you created a position sizing strategy  for a system that helps you meet your objectives.  The strategy requires you to take the profit from your last trade and risk it on your next trade.  If you are unable to follow Bill’s model with  the risk amount, however, then you aren’t executing your position sizing  strategy.  The system rules, the marble  bag results, your objectives, the position sizing strategy — they all work  together, but here, none of that matters.   So where are you going?  What are  you doing?

How about you, what are you doing?                                 I’m trying to increase my awareness of my mental processes through the Peak  Performance Home Study, Van’s workshops and a lot of self-study.  I want to be able to follow Bill’s model  and trade really well.  In that process, I keep seeing   different ways that trading always comes back to psychology.

Great.  Thank you very much and good luck.

 

About Frank: Frank Eaves is one of the research assistants for the Van Tharp Institute and has been with the company for about two years. He is a key contributor to software development initiatives and has a current focus on our newest trading simulator. He prides himself in keeping the rest of the office on its toes with his frank and sarcastic sense of humor

Another great video to open your eyes

The IMF wants you to pay more TAX

Well this report from the IMF seems to suggest, reforming taxation so that overall more taxation is paid.

The best part of the report is Box 6 – in effect they’ll just steal funds from your bank accounts – Cyprus style!  these events when they do occur typically happen on the Saturday of a long public weekend so that no-one can get to the banks Monday am!  (That’s the tactics of your friendly loving government for you)

This just defies logic and common sense, why would an Independent organisation be writing reports for governments about increasing worldwide taxation?  The report would be more suited to a business that is looking for strategic increases of it’s income.

Conspiracy Theorists suggest that a handful of people run the world – these actions look suspiciously like a business looking for strategic ways to increase it’s bottom line!

you should be able to view the report here in PDF format:

http://www.imf.org/external/pubs/ft/fm/2013/02/pdf/fm1302.pdf

If not then here’s another link:

fm1302

Be very careful, on the world stage the IMF is obviously thinking about raising revenue from forms of taxation, I keep mentioning that we are meant to live in a free democratic world – as long as we do what others in power tell us we have to do!

Sounds like freedom eh!

If they did not need or want your money then no mention of taxation would have been made, discussed or printed

Be careful.

D-Day – Market Fall

Has to happen now.

If my call on 2013 is correct it has to happen now – I do have dates for December, but the real power for 2013 was in May’s dates.

Time cycles can be annoyingly frustrating because there are times when they fail, simply fail with no explanation to them – this could be one of those times.

The last Time Cycle in the sequence was 17th October – May’s and August’s Time Cycles have produced double tops which is impressive, but we need a fairly hefty and decent fall in the markets right NOW for me to have confidence in the outlook for 2013 as originally planned.

The current Time Cycle that I’m waiting for results in a 3 year bear market that then ends s deflationary time cycle – We have everything in place bar the fall!!!!!

I’m not making up excuses for this Time Cycle, I’m simply trying to make sense of it, as it’s got me confused, probably because I’ve been waiting for it to arrive for over 2 years and when the dates arrive and not much happens it makes you scratch your head!

If this Time Cycle that I’ve been expecting and waiting for arrives much later than October I don’t have a valid reason as to any such date and I am likely to just void the cycle – this is the whole point of trying to predict the markets – to have specific dates!

We’ll see what actually happens, there are dates for 2014 – I might publish those in November/December 2013 time, I’ve been concentrating on other matters this year and have not considered 2014 cycles – I need to generate them and post.

So to recap, the market has to fall within the next week really for my outlook to be valid, we’ve got the classic spaced out topping formation forming that often accompanies stock market tops, we just need to see the decline.  Again if price turns considerably bullish then my 2013 Time Cycle will be voided and I’ll have no choice but to chalk this down to a learning experience.

Remember I’m using the 2013 Time Cycle as confirmation and a gauge of my outlook for the following few years as I’m more concerned about the larger time cycle, having the 2013 time cycle confirm would of been nice.

A big reason WHY 2013 stock prices are in the Stratosphere

A Big Reason Why 2013 Stock Prices are in the Stratosphere

Margin debt is up 100 times in the last 39 years

By Elliott Wave International

A famous quote attributed to Archimedes, the ancient Greek mathematician, is: “Give me a place to stand and with a lever I will move the whole world.” And, as you probably know, leverage can also move the stock market.

In the July-August Elliott Wave Theorist, Robert
Prechter discussed the role of leverage in sending the market
to new price highs.


Get
a FREE 2-page sample of Robert Prechter’s
Elliott Wave Theorist.


First, take a look at this chart from that issue, and then read Prechter’s commentary.

Margin debt, incredibly, is up 100 times in the
last 39 years (see the chart above). It was $4 billion back
in 1974; it’s nearly $400 billion today. That is a big reason
why stock prices are in the stratosphere. You might think
that there’s a lot more money around, thereby justifying
the rise. … Let’s normalize this indicator to GDP and
see what we have. … [M]argin debt as a percentage of annual
GDP is still 10 times the 1974 level. … The current
ratio is also 3 times what it was at previous major
tops
in the stock market in the 20th century.

The Elliott Wave Theorist, July-August 2013

Margin debt levels are not a precise market timing indicator, but one major financial firm advises caution.

“Investors have rarely been more levered than today,” said Deutsche Bank, warning that the spike in margin debt is a “red flag” and should be watched closely. … It said the equity rally may have further legs but it cited “astonishing similarities” between the latest patterns and events preceding prior market crises.

— The Telegraph, August 13

The high levels of margin debt in the stock market should be a concern to every investor, as should other indicators that Elliott Wave International reviews.

You can learn what EWI sees ahead for the market by reviewing
The Elliott Wave Theorist without any obligation.
No questions will be asked if you decide to cancel within
30 days. You have nothing to lose and exclusive market insights
to gain.

See what Prechter presents to subscribers of The
Elliott Wave Theorist with no obligation for 30 days.
The September issue is packed with insights you won’t see
anywhere else. Preview what’s inside and learn how to get
your risk-free review.

This
article was syndicated by Elliott Wave International and
was originally published under the headline A Big Reason Why 2013 Stock Prices are in the Stratosphere.
EWI is the world’s largest market forecasting firm. Its staff
of full-time analysts led by Chartered Market Technician
Robert Prechter provides 24-hour-a-day market analysis to
institutional and private investors around the world.

Barack Obama: The Naked Emperor

Once again another great piece from Mr. David Icke – you don’t write articles this long and detailed if you don’t have hard evidence and facts.

Don’t be duped guys.

Barack Obama: The Naked Emperor

By David Icke

PLEASE CIRCULATE AS WIDELY AS POSSIBLE. THE LINK TO SEND PEOPLE IS:

WWW.DAVIDICKE.COM/OBAMA

I am writing this in the last days of 2008 as I watch with dismay as vast numbers of people across the world, including many who should know better, have been duped by the mind-game called Operation Obama.

Even people with some understanding of the conspiracy have said things like: ‘Well, at least he’s not Bush’ and ‘Well, at least it’s great to see such a new spirit of hope’. No, he’s not Bush – he’s potentially far more dangerous; and what is the use of a spirit of ‘hope’ if it’s based on a lie? In fact, what use is ‘hope’ at all?

Obama’s wife, Michelle, who I wouldn’t trust to tell me the date in a calendar factory, said that ‘everything begins and ends with hope’. Utter nonsense. Hope is a meaningless emotion because its fruits are always in the future and, by definition, never in the NOW.

Hope is like riding a carousel horse; no matter how fast you go you never get closer to the one in front. The idea, however, is to persuade you to stay on the horse, despite the evitable disappointment, in the ‘hope’ that things will change. But they don’t because the very system is designed to prevent it.

That’s the way ‘hope’ is employed by the dastardly and devious – take the crap we are giving you now in the ‘hope’ that things will get better (but we know they won’t). Barack Obama is a purveyor of ‘hope’ because his masters want the people to accept what they are given now in the hope that good times will come.

Just do what we demand, oops, sorry, Barack demands, and in return he’ll inspire you to hope that it is all leading to the Promised Land. It isn’t, but, by the time you realise that, it’s too late.

What terrifies the manipulators is that people will abandon hope, as a future, sometime-never projection, and start to demand fairness, justice and freedom now. To avoid this nightmare they need to keep those desires as something to aspire to, not to actually have.

Thus, their man, Obama, sells ‘hope’ as a diversion technique, a holding position, to keep the masses from truly rebelling. We have no job, no food on the table and our home has been foreclosed, but at least we have ‘hope’. Phew, thank goodness for that.

‘I’m hungry, mum, can I have some hope, please?’

 ’I’m so sorry, darling, you can’t have hope today, only tomorrow – hope is always tomorrow.’

So will I eat tomorrow, mum?’

‘We can hope so now, dear, but when we get to tomorrow, we can only hope it’s the next day.’

On and on it goes. That’s how ‘hope’ works. Or rather doesn’t.

Obama’s predominant mantra has been ‘change’. Indeed, his massively-funded, record-breaking campaign was based on that one word – change. This is a technique used by Bill Clinton and many others and it is highly effective because, at any point, the system ensures that most people are not happy with the way life is. So, when you don’t like the status quo, ‘change’ can be a potent message, even if, like Obama, you don’t say what it means.

It has been vital to his success, and that of his controllers, that he has never specified what his ‘hope’, ‘change’, and that other mind-control trigger-word, ‘believe’, were referring to in terms of policy and the way society in general will be affected. Hope for what? Change what? Believe in what? To answer those questions with specifics would have been fatal to Obama’s appeal.

I studied the military/government mind-control programmes and techniques in great detail for many years during the late-1990s and across 2000, and the Obama ‘phenomenon’ is the most blatant mass-mind control operation you could wish to see.

At its core the plan has been to make Obama the focus of everything you hope for, believe in and want to change. This is why it has been crucial for him not to specify and detail what is meant by his ‘hope, ‘change’ and ‘believe’.

However, I can tell you what those words mean in the context of the Obama mind-game. They mean whatever you decide they mean or want them to mean. The idea is for you to project all that you stand for onto him and so he becomes the symbol of you and how you see the world. Specifics would destroy that ‘I am whatever you want me to be’ scenario and so you don’t get any detail, just ‘hope’, ‘change’, and ‘believe’.

They don’t want him to be seen only as ‘the Messiah’; they also want him to be Abraham Lincoln, JFK, or Buddha – anyone you choose to project on him, for he is a blank page, blank screen and empty suit. Obama is a make-your-own, do-it-yourself leader, a projection of your own mind. (If you are still asleep, that is. If you are in any way awake, he’s an open book.)

See the video How Obama Got Elected to see how easy it is to manipulate the masses. It’s child’s play. Click here …

‘I am whatever you want me to be, for I am just a projection of you. And I got a big smile, see.’

There is no more powerful way of manipulating people than to tell them what they want to hear and to keep shtum about anything they wouldn’t like. Double-glazing salesmen are trained to pick up in general conversation what their target likes and dislikes and to respond accordingly in the way the product is sold. The technique is simply to tell the potential buyer what you have gleaned they want to be told.

Obama comes from the same stable, but on a massively bigger scale and with a whole network of advisors and controllers steeped in the art of manipulating minds, opinions and actions.

Obama’s written-for-him speeches are not from the heart, but from the autocue. The ‘heart’ bit comes from extensive training and his Bill Clintonesque ability to ‘mean it when he says it’, a state of delivery that goes beyond mere acting. Tony Blair was trained in the same way.

But if you take a step back and look at these people dispassionately you can clearly see the techniques they consciously employ. Blair is the most blatant fraud in the way he delivers a line, stops in mid-sentence for emphasis and looks down for fake emotional effect. Obama is a little more slick, but, from where I have been looking this past year, not much. And how have people not seen those cold eyes just above the painted smile?

You can watch his mind working, turning between autocue screens to his left and right, then straight down the camera for his key messages. From-the-heart orators don’t do that; they are too immersed in what they are feeling and saying to give even a passing thought to where they are looking or how the line is delivered.

I worked in television for more than a decade, often reading autocue while a director spoke in my ear telling me what cameras to look at. I have, since the early 1990s, spoken my truth on public stages across the world. I know, therefore, the difference between artificial autocue delivery and body language and talking from the heart without a script. Obama, I repeat, is coming from the autocue, not the heart.

Obama’s speeches are a mass of mind-control techniques and Neuro-Linguistic-Programming, or NLP, and they are carefully constructed to implant beliefs and perceptions into the mind of the viewer. Click here for a description of his psycho-babble, headed An Examination of Obama’s Use of Hidden Hypnosis Techniques in His Speeches.

As I keep emphasising, the whole Obama circus is an exercise in mass mind control and it has been so successful because so many people live their lives in a permanent state of trance. All of which brings me to the parallels with Nazi Germany, fascist Italy and similar regimes throughout history.

Obama may not look like Hitler, nor sound like Hitler, but the themes are just the same. Germany was in a terrible state economically and militarily in the 1930s in the aftermath of the First World War and the reparations inflicted on the country by the Rothschild/Illuminati-controlled Versailles ‘Peace’ Conference in 1919.

From amid the chaos came the man that Germans saw then in much the same way that so many see Obama today. His name was Adolf Hitler and his oratory and rhetoric, again supported by a ritualistic presentation founded on mind-control techniques, made him appear to be the German ‘messiah’, the German Obama.

Hitler promised ‘change’, ‘hope’ and something to ‘believe in’ amidst the consequences of war and financial collapse. He spoke to vast rallies of adoring followers and a mass movement emerged in support of Hitler’s vision of a new tomorrow.

As the writer Webster Tarpley points out, fascism in its true sense is not just a Police State imposed by a tiny hierarchy. It might end up like that, but first it is brought to power by a mass movement from within the people who have no understanding of what the ‘change’, hope’ and ‘believe’ they are being offered really means. They just know that they want some because, as with Obama, they make it mean what they want it to mean. Only later do they see, to their horror, what they have signed up for.

Obama’s America …

… Hitler’s Germany.

There may seem to be a world of difference, but the techniques are just the same.

Obama is far more dangerous than Bush because he can sell a line to those who are in the trance while Boy Bush could not do that on anything like the same scale. Bush was a transparent idiot with no communication skills who needed massive fraud at the polls to get him officially ‘elected’. He could never be the figurehead to inspire a mass movement of the people to support some vacuous ‘hope’, ‘change’ and ‘believe’ when they don’t even know what those words are supposed to mean.

But Obama clearly can, because he has.

One of ‘his’ (his controllers’) prime targets are the young, just as they were with the Nazis and the Hitler Youth Movement. If you think this parallel is far-fetched then have a look at this video to see how extreme Obama worship has already become for some young people. Hitler Youth was just the same. Click here to watch … 

In line with this theme, the WorldNetDaily website reported:

‘The official website of President-Elect Barack Obama, Change.gov, originally announced that Obama would “require” all middle school through college students to participate in community service programs; but after a flurry of blogs protested children being drafted into Obama’s proposed youth corps, the website’s wording was softened.

Originally, under the tab “America Serves”, Change.gov read, “President-Elect Obama will expand national service programs like AmeriCorps and Peace Corps and will create a new Classroom Corps to help teachers in under served schools, as well as a new Health Corps, Clean Energy Corps, and Veterans Corps.

“Obama will call on citizens of all ages to serve America, by developing a plan to require 50 hours of community service in middle school and high school and 100 hours of community service in college every year,” the site announced.’

For the full story, click here …

Obama said in a speech in July 2008 in Colorado Springs that he wanted to see a ‘civilian national security force’ that would be as powerful and well-funded as the Marines, Navy and Air Force. As Joseph Farah, founder of WorldNetDaily, wrote:

‘If we’re going to create some kind of national police force as big, powerful and well funded as our combined U.S. military forces, isn’t this rather a big deal? I thought Democrats generally believed the U.S. spent too much on the military.

How is it possible their candidate is seeking to create some kind of massive but secret national police force that will be even bigger than the Army, Navy, Marines and Air Force put together? Is Obama serious about creating some kind of domestic security force bigger and more expensive than that? If not, why did he say it? What did he mean?’

Obama meant, amid the flowery words, that he’s not in favour of either peace or freedom. He is a front-man demagogue for the same force that controlled Boy Bush, Clinton, Father Bush, Reagan, Carter, ad infinitum; but the difference is that he has been hyped to such hysterical proportions that he will be allowed to get away with far more than they were, at least until reality dawns on the mass ranks of his hypnotised supporters. And, clearly, that could take some time.

The cabal will be anxious to squeeze every minute from Obama’s honeymoon period and we can expect to see events move quickly after his inauguration in January.

When I was a journalist 30 years ago, I came across a technique that some tabloid newspaper reporters would use to get someone to speak with them. They would work in pairs with the first one knocking on the door of some distressed family who didn’t want to talk with the media. He would tell them he was from a newspaper he didn’t really work for and treat them with aggression and contempt to make them even more upset.

He would then leave and his colleague would knock on the door, tell them the real newspaper he was from, and act like Mr. Nice Guy. He would say that he understood completely how upsetting the other man must have been, but ‘if you will only speak to me exclusively I will make sure that the other man, nor anyone like him, won’t bother you again’. They usually agreed and the scam was complete.

Much the same thing is happening with regard to Bush and Obama. The Neoconservative ‘Republican’ wing of the Illuminati controlled Bush for eight years and led the country into foreign wars and financial chaos (bad guy/problem); now the ‘Democratic’ wing, led by the infamous Zbigniew Brzezinski, has brought forth the ‘saviour’, Barack Obama, to lead us into the sunshine with ‘hope’ and ‘change’ (good guy/solution).

Hence even some more aware people say: ‘At least he’s not Bush’.

Apart from the unspecified ‘hope, ‘change’ and ‘believe’, few have any idea what Obama’s policies will be. Public perception comes from having an ‘image’ of him, or a self-projection, not the fine print because Obama doesn’t do fine print until the votes are cast and even then he will hide it in his windbag words.

There is an ‘image’ that Obama is against war, but no he’s not. He says he’s against the invasion of Iraq, though we’ll see what he does about that in office. How can a man calling for more troops, including European troops, to be sent to Afghanistan be against war? He has also said he is prepared to bomb Pakistan and use military force to stop Iran building nuclear weapons and he has appointed Hillary ‘Let’s bomb ‘em’ Clinton (Bilderberg Group, Trilateral Commission, Council on Foreign Relations) as Secretary of State and re-appointed Bush’s ‘Let’s bomb ‘em’ Secretary of Defense, Robert Gates (Bilderberg Group, Council on Foreign Relations). So that’s the ‘change we can believe in’, then.

Obama isn’t against war at all and, if his controllers have their way, he will engage the US in even more foreign conflicts with the troops sent to their deaths, and the deaths of their targets, on a wave of oratory from the dark suit with the black face who would never go where he’s sending them.

He claims to be a ‘uniter’, which is exactly what Bush said about himself before he came to office, but unity in and of itself is not the issue. Nazi Germany had unity in the early years of the war, but was that a good thing? What matters is what the unity is designed to achieve and Obama’s much-vaunted ‘unity’ is to ‘inspire’ a mass movement to support the Orwellian plans of the Illuminati.

His constant rhetoric about ‘bringing people together’ can be used to justify the ‘coming together’ of the United States, Canada and Mexico in the North American Union; it can be used to concede America’s sovereignty to the ‘coming together’ of the ‘world community’ (world dictatorship); it can be used to unite the believers in their opposition and condemnation of non-believers, which is precisely what happened in Nazi Germany with the book-burning and violent suppression of those who challenged the Hitler regime.

The potential of Obama Mania is endless when it comes to selling fascism as ‘hope, change’, ‘freedom’ and a ‘New America’, or ‘New World’ [Order].

Bush and Cheney were transparent warmongers and would always have struggled to bring in the draft, the compulsory enlistment of people into the military against their will. But it would not be as difficult for Obama in the current climate. For goodness sake, he’s already talking about compulsory community service for middle school, high school and college students and creating a peoples’ army in America.

That’s why I say Obama is far more dangerous to freedom than Bush. In the last eight years Bush could only get part of the way to fascism – Obama has the potential to finish the job, for all the reasons I have mentioned and more.

You only have to look at the cabal behind Obama, and those he has already appointed to his administration team, to see what his ‘change’ is truly planned to be. His mentor, svengali and main controller is Zbigniew Brzezinski, Jimmy Carter’s National Security Advisor, and the co-founder, with David Rockefeller, of the Illuminati’s Trilateral Commission.

Brzezinski has admitted publicly that he began to fund and train what he would call today ‘terrorists’ in Afghanistan to oppose the Soviet-controlled government in the capital, Kabul, in the late 1970s. The idea, he said, was to entice the Soviet Union to invade Afghanistan to protect the Kabul regime and thus give the rival superpower ‘their Vietnam’. The plan worked at the cost of a million Afghan lives during the Soviet occupation from 1979 to 1989, a consequence that troubles Brzezinski not at all.

Brzezinski’s ‘freedom fighters’ would become known as the ‘Mujahideen’ and later the Taliban and what is claimed to be ‘Al-Qaeda’. This is the man behind ‘anti-war’, Barack Obama. It was common knowledge that President Carter would do nothing involving foreign policy without the okay from Brzezinski, the co-founder of the Trilateral Commission which chose Carter for president.

It is one of many great ironies of the Obama presidency that he is demanding massive troop reinforcements to be sent to Afghanistan to fight the Taliban terrorists who were initially armed, trained and organised by Brzezinski, the man behind Obama. As Morpheus says in The Matrix: ‘Fate, it seems, is not without its sense of irony’.

But then, in Brzezinski’s case, it is not ‘fate’, but cold calculation that has brought it all about. The Poland-born Brzezinski has a fierce hatred of Russia and that is still one of his key targets, together with China.

And if they are Brzezinski’s targets, they are Obama’s targets.

The Trilateral Commission and the wider Brzezinski network, including Illuminati fronts like the Ford Foundation, have now chosen Obama and the situation will be the same. Brzezinski will call the shots; Obama’s job is simply to sell them to the people. This is rather alarming when you think that Brzezinski wants to trigger a war involving Russia and China.  ‘Obama’s’ policies come straight from Brzezinski’s books. Here is one Brzezinski quote you might recognise and it was made before Obama ran for president:

‘Needed social reassessment … can be encouraged by deliberate civic education that stresses the notion of service to a higher cause than oneself. As some have occasionally urged, a major step in that direction would be the adoption of an obligatory period of national service for every young adult, perhaps involving a variety of congressionally approved domestic or foreign good works.’

Now where have I heard that before?

As an Illuminati operative, Brzezinski’s aim is to create a world government, central bank, currency and army – a global dictatorship – underpinned by a microchipped population connected to a global computer/satellite system. He wrote a book in 1970, Between Two Ages: America’s Role in the Technetronic Era, in which he described the global society that he and the Illuminati seek to impose:

‘The technetronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities.’

He also said in the same book nearly 40 years ago:

‘Today we are again witnessing the emergence of transnational elites … [Whose] ties cut across national boundaries … It is likely that before long the social elites of most of the more advanced countries will be highly internationalist or globalist in spirit and outlook … The nation-state is gradually yielding its sovereignty … Further progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position.’

And what does his puppet, Obama, now say that Americans have to do to bring about ‘change’? ‘Make sacrifices‘. As Mrs. Demagogue, Michelle, said:

‘We need a different leadership because our souls are broken. We need to be inspired … to make the sacrifices that are needed to push us to a different place.’

You can bet that this will include sacrificing more sovereignty and freedom on the road to the global dictatorship described by Brzezinski for decades.

Brzezinski’s son, Mark, was an ‘advisor’ to the Obama campaign (doing what his father told him) and, in line with the American one-party-state, his other son, Ian, was foreign policy advisor to the McCain campaign (doing what his father told him). His daughter, the Obama-supporting Mika Brzezinski, reported the campaign for MSNBC television.

Obama has been the chosen one for a long time, a fact known only to a few in the deep inner circle, and his relationship with Brzezinski almost certainly goes back to the start of the 1980s when he attended the Ivy League, and big-time Illuminati, Columbia University where Brzezinski was head of the Institute for Communist Affairs. Obama simply will not talk in any detail about this period. He has been covertly funded and supported ever since by the Trilateral Commission and its network of foundations connecting into the Ford Foundation, for whom Obama’s mother worked.

And a question: Does anyone really believe that someone, a ‘man of the people’, would simply appear from apparently nowhere to run the slickest and best-funded presidential campaign in American history? He was chosen long ago by those who wish to enslave the very people that Obama says he wants to ‘set free’.

The sources of Obama funding read like a Wall Street Who’s Who – Goldman Sachs, UBS, Citigroup, Credit Suisse, Deutsche Bank, J.P. Morgan Chase, Morgan Stanley, and so on. No wonder he went back on his pledge to accept the limitations of public funding for his campaign and instead took the no-limit option of ‘private’ funding.

And those people are going to support a candidate who does not represent their best interests?? Oh please.

Obama and his seasoned network of professional manipulators, sorry his ‘campaign team’, sold the lie that he had refused to take funding from ‘lobbyists’, those who are paid to ensure that politicians frame legislation, or block it, in the interests of their clients.

But like everything that surrounds Obama, past and present, it’s a sleight of hand and mouth. They funnelled vast sums of money into the Obama accounts through law firms that represent lobbyists and lobby groups. It provided ‘plausible denial’ about funding from lobbyists while the money poured in from lobby interests via third parties.

Then there is the Jewish financier, George Soros, the multi-billionaire associate of Brzezinski and closely involved with the funding and marketing of Obama. Soros is a former board member of the Illuminati’s Council on Foreign Relations and funds the European Council on Foreign Relations. In short, he is a major insider.

You can certainly see the Soros/Brzezinski techniques in the Obama ‘revolution’ in the United States. It was the complex and secretive network of Soros foundations and organisations, connected to the intelligence agencies of the US and Israel, that trained and funded students in the Ukraine, Georgia and elsewhere in the art of mass protest and overthrowing governments.

These manufactured protests were sold to the world as ‘peoples’ revolutions’, but it just so happened that when they were over and the old regime was removed the new leaders were those waiting in the wings all along – the puppets of Soros, Brzezinski and their associated networks.

Obama is just more of the same, a big smile with strings attached, and controlled completely by the Illuminati networks that chose him, trained him, sold him and provided his record funding. It was they who kept his many skeletons under wraps, like the gay sex and crack cocaine allegations of Larry Sinclair, and they will continue to do so as long as he jumps to their bidding.

Obama is just another Banksters’ moll prostituting himself for fame and power, and that’s why he supported the grotesque bail-out of the banking system and why he will always put their interests before the people. His financial advisors are straight from the Wall Street ‘A’ list, including Paul Adolph Volker (Trilateral Commission, Council on Foreign Relations, Bilderberg Group), the head of the Federal Reserve from 1979 to 1987 and Illuminati to his fingertips.

Obama has made him head of the Economic Recovery Advisory Board, which is dominated by insiders, including its staff director and chief economist, Austan Goolsbee, a close Obama associate from the University of Chicago. Goolsbee is an initiate of the infamous Illuminati Skull and Bones Society at Yale University, which also includes Boy and Father Bush.  It was Goolsbee who told the Canadian government not to worry about Obama’s attacks on the economic effects of ‘free trade’ agreements because his words were just to win votes in the election campaign.

Another Wall Street insider, the Zionist Timothy Geithner (Bilderberg Group, Trilateral Commission, Council on Foreign Relations), was appointed by Obama to be his Treasury Secretary. Geithner was the President of the New York Federal Reserve Bank, the most powerful in the private ‘Federal’ Reserve cartel that masquerades as America’s ‘central bank’, and he is a former employee of both the Council on Foreign Relations and the appalling Kissinger Associates.

Obama’s Treasury team locks into the inner circle around the Zionist Robert Rubin, the Director and Senior Counselor of Citigroup, co-chairman of the Council on Foreign Relations, and economic advisor to Obama. Rubin, a member of the Illuminati Bilderberg Group, was the man behind Citigroup’s strategy of expanding its risk in debt markets which forced it to be rescued by taxpayers’ money.

The very people who caused the financial crisis are being appointed by Obama to decide how to respond to it (more taxpayers’ money for them and their friends).

Rubin was Treasury Secretary to Bill Clinton and was followed in that post by Larry Summers (Bilderberg Group, Trilateral Commission, Council on Foreign Relations) – another insider appointed to Obama’s team of ‘change’. Summers is a fanatical supporter of ‘free trade’ (freedom to exploit) and ‘globalisation’ (global dictatorship) and he wrote a memo in 1991, while chief economist to the World Bank, saying that the bank should dump toxic waste in poor countries because the costs of the ensuing ill-health and death would be lower. When the memo was made public, Brazil’s then-Secretary of the Environment, Jose Lutzenburger, told Summers:

‘Your reasoning is perfectly logical but totally insane … Your thoughts [provide] a concrete example of the unbelievable alienation, reductionist thinking, social ruthlessness and the arrogant ignorance of many conventional ‘economists’ concerning the nature of the world we live in … If the World Bank keeps you as vice president it will lose all credibility. To me it would confirm what I often said …the best thing that could happen would be for the Bank to disappear.’

Lutzenburger was dismissed shortly after writing this letter while the horrific Summers was made US Treasury Secretary by Bill Clinton and now he has been appointed to head the National Economic Council by Mr. ‘change’, hope’ and ‘believe’ Obama. It’s all a fairy story.

Bloomberg.com reported that the Center for American Progress (CAP), housed just three blocks from the White House, has become a major source for policy initiatives for the Obama Democratic Party. Who funds the Center for American Progress? George Soros.

It is simply the Neocon Project for the New American Century and the American Enterprise Institute under another name. Those two organisations developed and dictated the Bush policy of war and suppression of freedom and the ‘CAP’ and others like it will do the same for Obama. The CAP will fit and Obama will wear it.

In fact, except in name and rhetoric, there is no difference in theme between the regimes of Bush and Obama. Bush policy was dictated through Illuminati ‘think tanks’ and so is Obama’s.

Bush was surrounded by slavish pursuers of Israeli interests and so is Obama. Mr. ‘Change’ has pledged his unquestioning support for Israel to the point of ‘pass the sick bag’ and his vice-president, Joe Biden (Bilderberg Group, Council on Foreign Relations), is a vehement Zionist who makes a virtue of saying he will support Israel in all circumstances.

Obama has appointed the arch Zionist Rahm Emanuel as his chief of staff and another super Zionist Jew, Dennis Ross, to be his Middle East Policy advisor. God help the Palestinians. Ross also served in the Bill Clinton and Father George Bush administrations. Oh, plenty of ‘change’ there, then.

Rahm Emanuel, a Chicago-born Congressman, is the son of Benjamin M. Emanuel, who was a member of the murderous Jewish terrorist organisation, Irgun, which helped to bomb and terrorise Israel into existence. The Open Secrets website reports that Emanuel was the top House recipient in 2008 for election contributions from ‘hedge funds, private equity firms and the larger securities/investment industry’.

Emanuel was also appointed by Bill Clinton to the board of the mortgage giant Freddie Mac in 2000 and his tenure coincided with a stream of scandals and financial irregularities. It famously had to be bailed out by the taxpayer amid the sub-prime mortgage debacle.

Emanuel, like Obama himself, is an asset of the ‘Illinois Combine’, a cross-party network of politicians and business interests that conspires to manipulate Chicago politics for their own benefit. Even before taking over at the White House Emanuel faced calls for his resignation for alleged connections with the Rod Blagojevich scandal.

In December 2008 Blagojevich, the Illinois governor and associate of Obama, was arrested over a conspiracy involving massive corruption and moves to sell Obama’s Senate seat in Chicago made vacant by his election to the presidency. It is yet another example of the staggering web on ongoing and infamous corruption in Chicago by the very networks that spawned Obama.

A close friend of Rahm Emanuel is another clone of the Illinois Combine, the Zionist, David Axelrod, who ran Obama’s election campaign and will no doubt be highly influential in the Obama administration. Axelrod is a veteran of Chicago politics, one of the most corrupt political systems in the world and he worked for many Chicago mayors in the 1990s and on Obama’s senate campaign in 2004.

Bill Clinton took his Arkansas cabal to Washington when he became president in 1993 and Obama is uploading his Chicago mob and handing them key positions of national power and influence. And these guys don’t take prisoners.

All of this may be many things, none of them pleasant, but ‘change’ it isn’t.

David Axelrod, Obama’s ‘narrator’ and handler. Click here for a background article that needs some reading between the lines … 

Obama is a monumental fraud who talks a good story, but lives a very different one. He won his first political office as a state senator in Chicago in 1996, not through the power of his policies, but by coldly abusing the electoral process.

Instead of running against his opponents and letting the people decide, he had his cronies challenge hundreds of names on the nomination papers of his Democratic primary rivals until they were all forced off the ballot by technicalities. He then ran unopposed. One of them, Gha-is Askia, says that Obama’s behaviour belied his image as a champion of the little guy and crusader for voter rights:

‘Why say you’re for a new tomorrow, then do old-style Chicago politics to remove legitimate candidates? He talks about honour and democracy, but what honour is there in getting rid of every other candidate so you can run scot-free? Why not let the people decide?’

Why? Because he would probably have lost and Obama isn’t interested in losing by playing fair. He wants to win by any means necessary. The only voter-right he’s interested in is the right to vote for him. He has also used his hatchet-men like Axelrod to employ scandal to discredit opponents to ensure his election when the real scandal is the truth about Obama himself.

He is a classically corrupt main-chancer spawned from the Chicago political cesspit. His close connections, therefore, to seriously dodgy ‘businessmen’ and fraudsters like the now-jailed slum landlord Tony Rezko are exactly what you would expect.

Rezko, yet another snout in the trough of the Illinois Combine, has heavily funded Obama’s political career and that of the now-arrested Rod Blagojevich, and in return they have supported massive sums being paid to Rezko by Chicago taxpayers to run ‘public housing’.

These properties were then allowed to fall into such a state of danger and disrepair, including sewage running into kitchen sinks, that they were deemed unfit for habitation by the often black poor that Obama was supposed to be representing as a Senator. Some buildings were so bad they had to be demolished.

Rezko also secured appointments for his business associates to state boards and was eventually indicted for using these connections to demand kickbacks from businesses that wanted to do business with the state.

Rezko and Obama toured the $1.6 million mansion in Hyde Park, Chicago, which the Obamas bought at $300,000 below the asking price in 2005 while the Rezkos purchased the adjoining land at the full asking price. Some of this land was later bought by the Obamas. Rezko contributed a quarter of a million dollars to Obama’s political career and served on Obama’s Senate campaign finance committee, which raised more than $14 million.

Then there is Obama’s close association with the terrorists, William Ayers and his wife Bernardine Dohrn. In the late sixties Ayers co-founded the terror organisation called the Weather Underground (also known as the Weathermen and similar derivatives) and launched a campaign of bombing public places like the Pentagon and the Capitol Building. Three members were killed making bombs in Greenwich Village.

In 1970 Ayers was said to have described their philosophy as: ‘Kill all the rich people. Break up their cars and apartments. Bring the revolution home, kill your parents, that’s where it’s really at …’ Mr. Ayers himself comes from the home of ‘rich people’.

Bernardine Dohrn said this about the Charles Manson murders: ‘Dig it! Manson killed those pigs, then they ate dinner in the same room with them, then they shoved a fork into a victim’s stomach.”

William Ayers in 1968.

 On the day of 9/11 he told the New York Times that he didn’t regret the Weather Underground bombing campaign and believed they didn’t do enough.

The case against Ayers and Dohrn was thrown out because of then illegal wire-taps and Ayers is now a professor in the College of Education at the University of Illinois at Chicago, holding the titles of Distinguished Professor of Education and Senior University Scholar.

Ayers recruited Obama to serve as chairman on the $100 million Chicago Annenberg Challenge and they worked together for seven years handing out grants to the ‘educational’ projects of people like … William Ayers. They also worked together on another tax-exempt foundation, the Woods Fund in Chicago, which awarded grants to Obama’s own Trinity United Church, home to his controversial pastor, Jeremiah Wright.

Obama’s political career was effectively launched in 1995, just after he was made chairman of the Annenberg Challenge, at a meeting at the Chicago home of … William Ayers and Bernardine Dohrn. They have been connected to his circle ever since if the truth be told.

The Chicago Annenberg Challenge, run by Obama and Ayers, didn’t fund schools directly, but instead insisted that they affiliate with ‘external partners’ who were granted the money. These turned out to be far-left ‘community organisers’ so beloved of Bill Ayers and these groups included the Association of Community Organizations for Reform Now (or Acorn).

Obama also conducted ‘leadership training’ seminars with Acorn and its members began to become heavily involved in his political campaigns. It has also been behind efforts to ‘register voters’ (voters most likely to vote for Obama) and Nevada state officials raided Acorn’s Las Vegas office after election authorities accused the group of submitting multiple voter registrations with fake and duplicate names.

Among the major funders of Acorn … George Soros.

Obama even refuses to prove that he was born in the United States and thus qualifies to be President. He claims to have been born in Hawaii, but his grandmother, half-brother and half-sister in Kenya all insist he was born there.

‘Mr. Clean’ Obama has a deeply dirty background, but for now no scale of evidence will stop the swooning Obama zombies from believing the hype or burst their reality bubble. That is going to take hard experience and it could take some time and a lot of disappointment before they are released from the clutches of cognitive dissonance and have to admit to themselves they have been had.

It is the same for all the black people who voted for what they thought was the first black president when, in truth, he is a man in a black mask representing the interests of the white-faced Illuminati cabal, the very families and networks that ran the slave trade.

I don’t want to be the bringer of bad news or the thwarter of dreams, but honesty demands it. The man is a trickster controlled by supertricksters. A sock puppet controlled by bigger sock puppets who serve an even greater and darker evil. To his masters, Obama is just a means to an end and if it suits them to assassinate him to trigger civil war and upheaval in the United States then that is what they will do.

Oh dear Oprah, how will you cope when reality dawns? But, then, will it ever??

‘What? You mean you’re not the Lord?’ 

I can understand the appeal of Obama because people want him to be what he claims to be, but isn’t. They are sick of the conflict, the corruption, the struggle we call ‘life’ and they want it all to change. But Obama’s change is illusory and represents only the continued transformation of society in the image envisaged by Orwell.

We will see some apparently good things announced, like the closing of Guantanamo, to give the impression that Obama means what he says. But keep your eye on the ball and you’ll see how the agenda of the global tyranny is introduced under the guise of Obama’s ‘hope’, ‘change’, ‘believe’, ‘sacrifice’ and ‘coming together’.

It could take two years, maybe much more, before cognitive dissonance (lying to yourself) loses it current grip on the minds of the Obama faithful. Until then they will make endless excuses for him (lie to themselves) to keep the ‘dream’ alive.

But one day they will have to admit, by the power of the evidence before them, that they bought a dream and got a nightmare. What a pity they can’t see the obvious now and save themselves such painful disappointment.

David Icke Exposes the Money Scam [sorry] System

Hi All,

I could not of put it simpler or better myself.

I’ve been mentioning the weaknesses of The Federal Reserve system and the banking cartels for a number of years, need to wake up and be very aware of what can go wrong!

I used to be a Financial Adviser and I’m willing to bet that NO financial adviser prior to 2009 could of explained this as well as David does – NO ONE

I would also recommend adding David’s site to your favourite’s and subscribing to his you tube channel.

David officially “came out” to the British public in 1990 with his theories, I was just a 15 year young lad and I thought he was mad and crazy – I’ve spent the past few months reading his works and watching his videos, and now realise that he’s been virtually spot on a host of subjects – Well done David for having the foresight and courage to speak out.

If you missed it – rewind to around the 25th Minute – Orwells 1984 novel – It’s all out there in black and white for us to find.

Enjoy

Do you understand the world?

Hi All,

I’ve decided to occasionally include on the site and in my posts key content to living that I deem worthy of being noted and respected.

In 2010 I started researching the Federal Reserve bank and the number of times I have been redirected in my research to Masonic symbols and temples is astonishing, So following on from there my research has taken a few tangents along the way and it’s ultimately led to the doors of some of the worlds conspiracy theorists – a CRAZY outcome I know and not one that I thought I would find myself looking at, but you know what, I agree with them, this then leads you onto other forms of research – I like to make sure of the facts!

With regards to what I have discovered about the world of finance and what the “conspiracy theorist’s ” say are virtually exact in their conclusions, so if they are right on the details of world finance what about their other claims?  As a well-rounded, logical person I’d have to say that they make logical sense – in a world that does not make sense!

I’ve not gone crazy or having a mid-life crisis (although I am approaching middle age that is true) but the questions I’ve had for many years are suddenly being answered and it makes sense!

for further reference likewise people are : David Icke, Dr. John Coleman, Jim Marr, there’s bound to be more

This video is long at 2 hours but is another worth watching –

During The Best Period Of Economic Growth In U.S. History There Was No Income Tax And No Federal Reserve

Content provider – with thanks: http://theeconomiccollapseblog.com

During The Best Period Of Economic Growth In U.S. History There Was No Income Tax And No Federal Reserve

By Michael Snyder, on August 8th, 2013

The American Free Market System At WorkHow would America ever survive without the central planners in the Obama administration and at the Federal Reserve?  What in the world would we do if there was no income tax and no IRS?  Could the U.S. economy possibly keep from collapsing under such circumstances?  The mainstream media would have us believe that unless we have someone “to pull the levers” our economy would descend into utter chaos, but the truth is that the best period of economic growth in U.S. history occurred during a time when there was no income tax and no Federal Reserve.  Between the Civil War and 1913, the U.S. economy experienced absolutely explosive growth.  The free market system thrived and the rest of the world looked at us with envy.  The federal government was very limited in size, there was no income tax for most of that time and there was no central bank.  To many Americans, it would be absolutely unthinkable to have such a society today, but it actually worked very, very well.  Without the inventions and innovations that came out of that period, the world would be a far different place today.

It is amazing what can happen when the government just gets out of the way.  Check out all of the wonderful things that Wikipedia says happened for the U.S. economy during those years…

The rapid economic development following the Civil War laid the groundwork for the modern U.S. industrial economy. By 1890, the USA leaped ahead of Britain for first place in manufacturing output.

An explosion of new discoveries and inventions took place, a process called the “Second Industrial Revolution.” Railroads greatly expanded the mileage and built stronger tracks and bridges that handled heavier cars and locomotives, carrying far more goods and people at lower rates. Refrigeration railroad cars came into use. The telephone, phonograph, typewriter and electric light were invented. By the dawn of the 20th century, cars had begun to replace horse-drawn carriages.

Parallel to these achievements was the development of the nation’s industrial infrastructure. Coal was found in abundance in the Appalachian Mountains from Pennsylvania south to Kentucky. Oil was discovered in western Pennsylvania; it was mainly used for lubricants and for kerosene for lamps. Large iron ore mines opened in the Lake Superior region of the upper Midwest. Steel mills thrived in places where these coal and iron ore could be brought together to produce steel. Large copper and silver mines opened, followed by lead mines and cement factories.

In 1913 Henry Ford introduced the assembly line, a step in the process that became known as mass-production.

When hard working, industrious people are given freedom to pursue their dreams, great things tend to happen.  The truth is that we were all designed to create, to invent, to build, and to trade with one another.  We all have something that we can contribute to society, and when families are strong and the invisible hand of the free market is allowed to work, societies tend to prosper.

It is not a coincidence that the greatest period of economic growth in U.S. history was between the Civil War and 1913.  The following information comes from Wikipedia

The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873.  The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.

Wouldn’t you like U.S. GDP to double over the course of a decade now?

So why don’t we go back to a system like that?

In 1913, the Federal Reserve and a permanent national income tax were introduced.  Today, the unelected central planners at the Federal Reserve totally run our financial system and the U.S. tax code is about 13 miles long.  The value of our currency has declined by more than 96 percent since 1913, and the size of our national debt has gotten more than 5000 times larger.

Meanwhile, control freak bureaucrats seemingly run everything.  Almost every business decision is heavily influenced either by taxes or by the millions of laws, rules and regulations that are sucking the life out of our economic system.

My favorite example of how suffocating red tape in America has become is the magician out in Missouri that was forced by the Obama administration to submit a 32 page “disaster plan” for the rabbit that he uses during his magic shows for kids.

It is no wonder why we don’t have any economic growth.  The central planners in the federal government are killing our economy.

And the central planners over at the Federal Reserve are killing our financial system.  In school we are taught that the Fed was created to bring stability to our financial system, but the truth is that they have been responsible for financial bubble after financial bubble, and now Federal Reserve Chairman Ben Bernanke has created the largest bond bubble in the history of the world.  When that thing bursts, and it will, we are going to see financial carnage on an unprecedented scale.

Unfortunately, the truth is that the Federal Reserve never has been looking out for the interests of the American people.  It was created by the big banks and it has always worked very hard to benefit the big banks.  During the Fed era, the big banks have become the most powerful economic entities on the entire planet.  Our entire economy is now based on debt, and the big banks are at the very center of this debt spiral.  The following is an excerpt from a recent article by Paul B. Farrell

Today’s world includes four Wall Street banks each with assets over $1 trillion, each more than Goldman. Plus eight other big global banks each have over $2 trillion total assets, including, among the 100 largest, Barclays, HSBC, Deutsche, ICB-China and Japan’s Mitsubishi.

Yes, this new world is changing fast. Back in 2008 the world’s financial banks were in ruins. Wall Street sunk into virtually bankruptcy. Goldman and its Wall Street too-big-to-fail co-conspirators had trashed the global economy, triggered a virtual depression, and Wall Street’s casinos lost over $10 trillion of Main Street retirement funds.

And as we saw back in 2008, the Federal Reserve is going to do whatever is necessary to prop up Wall Street.  Most Americans never even heard about this, but during the last financial crisis the Fed secretly loaned 16 trillion dollars to the big banks.  Those loans were nearly interest-free and those banks knew that they could get basically as much nearly interest-free money as they wanted from the Fed.

So how much nearly interest-free money did the Fed loan to normal Americans?

Not a single penny.

That would be bad enough, but it is also important to remember that since 2008 the Fed has actually been paying banks NOT to lend money to the rest of us.

What is it going to take for the American people to start demanding that the Fed be abolished?  They are absolutely destroying our financial system.

Meanwhile, the central planners in the Obama administration have been doing their part as well.  During the second quarter of this year, the number of Americans working between 30 and 34 hours per week fell by 146,500.  During that same time period, the number of Americans working between 25 and 29 hours rose by 119,000.

Why is this happening?

Well, the Obamacare employer mandate will apply to workers that work at least 30 hours each week, so employers are starting to cut back on the hours their employees are getting in order to comply with the law.

But this is just one example out of thousands, and most Americans already know that the U.S. economy has been crumbling for many years.

In fact, things have gotten so bad that even 53 percent of all Democrats believe that the American Dream is dead even though Barack Obama is residing in the White House.

But this is just the beginning.  Things are going to get much, much worse.  We are going down the same path that Greece has gone, and the unemployment rate in Greece has just hit a new all-time record high of 27.6 percent.

That is where the U.S. is headed eventually.  Decades of very foolish decisions are catching up with us.

The primary reason why all of this is happening is debt.  As a society, we simply have way, way, way too much debt.

The biggest offender, of course, is the federal government.  Since 1970, federal spending has grown nearly 12 times as rapidly as median household income has, and since the year 2000 the size of the U.S. national debt has grown by more than 11 trillion dollars.

When government debt gets too large, it has a profoundly negative effect on an economy.  The following is an excerpt from an outstanding article by Lacy H. Hunt, a Ph.D. economist

*****

Here are the studies, starting with the one with the broadest implications:

  1. “Government Size and Growth: A Survey and Interpretation of the Evidence,” from Journal of Economic Surveys. Published in April 2011, Swedish economists Andreas Bergh and Magnus Henrekson (both of the Research Institute of Industrial Economics at Lund University) found a “significant negative correlation” between size of government and economic growth. Specifically, “an increase in government size by 10 percentage points is associated with a 0.5% to 1% lower annual growth rate.”
  2. “The Impact of High and Growing Government Debt on Economic Growth: An Empirical Investigation for the Euro Area,” in European Central Bank working paper, Number 1237, August 2010. Cristina Checherita and Philipp Rother found that a government-debt-to-GDP ratio above the threshold of 90-100% has a “deleterious” impact on long-term growth. Additionally, the impact of debt on growth is nonlinear – as the government debt rises to higher and higher levels, the adverse growth consequences accelerate.
  3. The Real Effects of Debt, published by the Bank for International Settlements (BIS) in Basel, Switzerland in August 2011. Stephen G. Cecchetti, M. S.Mohanty, and Fabrizio Zampolli determined that “beyond a certain level, debt is bad for growth. For government debt, the number is about 85% of GDP.”
  4. “Public Debt Overhangs: Advanced-Economy Episodes Since 1800,”by Carmen M. Reinhart, Vincent R. Reinhart, Kenneth S. Rogoff, Journal of Economic Perspectives, Volume 26, Number 3, Summer 2012, pages 69-86. The authors identified 26 cases of “debt overhangs,” which they define as public-debt-to-GDP levels exceeding 90% for at least five years. In spite of the many idiosyncratic differences in these situations, economic growth fell in all but three of the 26 cases. All of the instances, which lasted an average of 23 years, are included in the paper. They found that average annual growth is 1.2% lower for countries with a debt overhang than for countries without. The long duration of such episodes means that cumulative shortfall from the debt excess—i.e., several years in a row of subpar economic growth—is potentially massive.

*****

But it isn’t just federal government debt that is the problem.  The rest of us have way too much debt as well.

If you can believe it, the ratio of private debt to GDP was 273.3% for the twelve months ending in the first quarter of 2013.

That is an astounding figure.

And as Hunt explained, having too much private debt is also very bad for an economy…

In Too Much Finance, published by the United Nations Conference on Trade and Development (UNCTAD) in March 2011, Jean Louis Arcand, Enrico Berkes, and Ugo Panizza found a negative effect on output growth when credit to the private sector reaches 104-110% of GDP. The strongest adverse effects are for credit over 160% of GDP.

The second is the 2011 BIS study authored by Cecchetti, Mohanty, and Zampolli. They found that private debt levels become “cancerous” (in BIS economic advisor Cecchetti’s own words) at 175% (90% for corporations and 85% for households)—just slightly more than the UNCTAD study.

When you add our private debt to GDP ratio of 273 percent to our federal debt to GDP ratio of 101 percent, you get a grand total of 384 percent.

This is how we have funded the false prosperity of the past couple of decades.  Essentially, we have been putting our good times on a credit card.

And as anyone that has ever tried to live on credit knows, the good times eventually run out.

But this is what the Federal Reserve was designed to do.  It was designed to get the U.S. government trapped in a debt spiral from which there would never be any escape.

It is not an accident that our national debt has gotten more than 5000 times larger than it was when the Fed was originally created.  This is what the bankers wanted the system to do.

They wanted a system that would extract wealth from all of us through taxes, transfer it to the government, and then transfer it to them through interest payments.

We never needed a central bank, we never needed the IRS and we never needed an income tax.  America would be doing just fine without any of them.

But instead, America chose to go down the path of collectivization and central planning, and now we are heading toward the biggest economic disaster in the history of mankind

Time Cycle Update

Hi All,

Thought I needed to add to the Time Cycle posts I’ve made referring to 2013.

I’m still of the opinion that 2013 should be a top/high in the market – namely S&P500 – due to the combination of Time Cycles arriving this year and the expectations these Time Cycles have within the greater scheme of things.

As previously mentioned many months ago May, August and October are / were high probability months for market reactions.  We can see so far that theory has been proven right – BUT – not with the desired effect.

These Time Cycles will either work or fail, for me there’s very little middle ground – at the end of the day if you use Time Cycles to trade by/with then you’ll have REAL money on the line and when the area of Time Cycles are tainted by bad calls the bottom line is you lose money.

So for the rest of this year – 2013:

  • The time Cycle that hit [to the day] in May 2013, Is still having an effect on the market.  Since May 2013 the market has formed a Triple Top, bearish sideways behaviour, which could be construed as slightly [very] bullish
  • For the 2013 Time Cycle Theory to maintain it’s expectation we need the market [S&P500] to drop and drop below June’s low as a bare minimum, ideally a fall of 15% or more would do the Time Cycle justice.
  • The period 2013-2016 is still being categorised as an expected BEARISH period, so far nothing has changed that view and it would take something pretty major to do so
  • Spookily enough the October Time Cycle due this month 17th – the same day as the US Debt Ceiling deadline, other than October the only other dates I have are 20-23 December 2013.
  • A perfect ending to this period would be from now [9th October 2013], would be a rally upwards towards the September 2013 highs but not exceeding, into/around 17th October 2013 and then bang, plunge, crash forcing a major correction greater in price [by it’s end] than 2010 or 2011 corrections.

Here’s an up to date chart of the S&P500 with Time Cycle detail  – all that I’ve updated on this chart is the price bars.

1

Although not perfect, Market action since the May 2013 high has not been strongly bullish, which still gives me confidence in my outlook – the only obvious action to negate this is should the market strongly rally over the course of the next few months.

What is perfectly possible is that May 2013 Time Cycle worked and all the market is doing is creating a bearish formation Triple Top, rather than just falling heavily from May’s high – I’m afraid with these types of thing there is no “set” form to any such advances/declines etc – you have to take what the market throws at you.

In simple terms, I still think the May 2013 Time Cycle is valid until proven wrong and that has not happened yet.

P.S. – the May/August & October Time Cycle dates are NOT displayed on the chart above, all I’m showing you are the minor TC’s on that chart.

hope it helps.