Then I tried lining it up under a /CL chart for the past 20 years. Interesting outlay where it's noticed that /NQ and /6E started around the same year; /NQ late 2003, /6E, Euro at beginning of 2004. (Leading up to 2nd term of the "Bush" years & post 911) And correlation % of /CL with the /ES and /NQ dropped off big time just this past summer close before the election , after being steady at a high correlation % the past few ("Obama") years. Hmm, the "globalists" at work?
And another chart of /ES in correlation comparison with the other futures. Recent significant rise in positive correlation with gold, /GC after being negative within this year. Happened also in the 2007 election year. And in reverse in the 2000 election year.
Last edited by Cloudy; September 29th, 2012 at 10:59 AM.
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I was just talking with my trading buddy the other day and he told me, expect the markets to go down after the Presidential Election. He said it happens every 4 years. They rally it up to the election and then it falls. He reminded me, he is still expecting the Dow to go down to 6K at some point. At that time, he is going in and buying big time and will hold them and probably leave them to his children eventually in his will.
So, if there are any stocks or anything, you want to own for the long haul, be ready when we do eventually get that sell off, my trading buddy is expecting.
I don't know, if the Dow will get down to 6K this down turn but I will be agile and if we start descending, will put on some shorts.
Watched this video by some guy trying to sell his newsletter and he said: the government is working with China to conspire agaisnt us. They are going to devalue the dollar to pay off China. Every dollar we get from selling US bonds: 50% goes towards interest. It really is a loosing battle, that is why the Fed is printing money. It will eventually lead to hyper inflation and devalued currency, so best to have some silver, gold on the sideline etc. And for those of us, who know how to short, we can make some money on the downturn, just make sure to have things in place, in case we go into marital law, to weather the storm etc. When one has to decide, if they are going to pay their rent or buy food?
He said, the 2 major things that can cause the storm are:
1. oil is no longer bought in US dollars and already China is buying from Russia in their Yuan currency but they are talking internationally of changing out of the US dollar and finding another way to purchasing Oil etc, as we devalue the US dollar.
2. When they begin raising interest rates, so we have some time to get ready and prepare and try and become as self sufficient as possible.
3. (What I have heard before, when you can trade the Chinese Currency: Yuan like you can other currencies.) This was not related to this article.
They are one vote away from taking away people's right to own guns and they have been training police etc how to handle riots.
America has been very good at posponing but some day we may have to pay for our Governments, mishandling of our financial future, for generations.
I heard on Bloomberg, this guy who handles Billions of dollars for the elite rich and he said, their plan was to buy up the foreclosed homes and make them into rental properities. In the future, it will be too hard to purchase a home and no one will have the down payment, so they are going to make us a rental society unto infinity. '
My trading buddy made a lot of money trading and now he just bought his first foreclosed Triplex and is making a profit, with these very low interest rates, it is really easy for those that have the funds.
The only problem is the government will have to come up with a way of making money, so if you are fortunate to own a home etc., they will raise taxes you pay on owning a home.
If you have a rental, they will pass that on to the renter, if they can.
Already in this country, when young people get out of college, they move back in with their parents.
Young people are living 4-5 people in rentals, to make it work.
Just imagine when hyper inflation hits or they change us over to a new currency: AmeroDollar.
Let's say you have 100K, well in the new currency maybe it is only worth 10K, one last way of stealing your wealth. So, have some gold and silver available. The Government might do a recall on coins but I think jewelry will be safe?
I have some long standing rich clients that are still purchasing gold chains from me, just to diversify.
I have a friend from Italy and he said, when they went out of the lira into the Euro dollar, it was very hard on the Itilian people for some years after they change because that is exactly what they went through. All of a sudden what they had was diminished and it was very difficult transition.
Hopefully, America can avert this outcome, we have been very creative but I listened to a Noble Peace Prize winner in economics, about 6 years back. At the time, he said America was getting past the point of no return. Well I think we have past that point. The only thing the Fed can do, is print money, it won't create jobs, but it will make it easier to pay off China.
I would have posted the link to the video but it came via an email, which by accident I deleted, so I covered the main points.
Needless to say, I am hoping that future doesn't manifest and we can get our financial house in order. Keeping my fingers crossed but will be prepared for whatever outcome?
Last edited by Rachel; September 29th, 2012 at 10:20 PM.
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Thanks for you and your friend's fine observations Rachel. I completely agree about the housing market. Most of these reduced-price good and relatively newly constructed houses for sale are bought by those who are already investing in 2nd homes or just rental properties. No real effective housing demand because the prices and mortgages are still out of reach for most at their current income level. And the decent wages don't seem to be ever coming back. China's average wages are finally gradually becoming less globally competitive but the big money (with their record profits) will just move on to exploit other emerging areas such as South America or parts of Africa or more inland provinces of China. And the other public sector side is increasingly duping the population into some sort of eventual totalitarian "you didn't build that" socialism based on some inflationary and increasingly worthless fiat money. I hope it's not the end, but unfortunately it looks like it's already here. In the news, it's beginning to show people everywhere are starting to lose it, and probably will get worse and more frequent until the full blown crisis and attempted revolution.
In my mind that's why this election is significant....if obama gets re-elected that pretty much tells me that the majority want big government(socialism). If romney gets in I'll still have a little bit of hope for the future but as I'm sure you agree in the long run we'll end up in the same place.
All this police state stuff and more and more rules and regulations, and of course obamacare which opens the door to regulate any behavior ultimately will continue to box us in.
With Romney the path is likely pretty much the same but on a slower timeline.
A financial /economic crash seems to be a certainty and it will not only cripple us financially but will serve as an excuse to take yet more of our rights and freedoms.
I'll stop here...I think we're on the same page....
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I'm pretty much on board with this but just wanted to say a couple things....on the paying back china thing, if things got really ugly we could just tell the chinese to go fly a kite and stiff em....just saying.
On the gun thing I think your probably referring to that U.N. thing getting kicked around...on that one I wish them good luck, There is no freaking way gun owners are going to roll over and hand over their guns. Being one of them I think I can safely say that.
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It may not be a crash/revolution, rather a long slow decay as China emerges as the world's largest economy. Already it has the largest government on the planet, though not the (socialist) type big government, they are fascists. Originally the ruling party were communist however in the past 20 years it has transformed into the greatest state of fascism the world have ever seen.
China is in a very good position. They loaned the US treasury trillions. The fed, via the banks that own it, directed that money back to China as the globalist corporations invested trillions into to the greatest economic expansion the world has ever seen. The Mitts and elitist corporations of the world made themselves grossly rich by moving their business operations to a country where even using the word 'rights' will see you put away, permanently. There is no rule of law, only facists and their twisted lies.
China is debt free. The ruling class control a billion slaves and a few hundred million middle class. They are looking at a nice 7% annual growth rate to look forward to for the next decade. And the RMB isn't even convertible yet. The country has strict controls on all foreign exchange. My first year living there, over a decade ago, people were not even allowed to take a vacation without being part of a group with special permits and a government chaperone to travel with them. Times have certainly changed though it is still not easy to get your money out of China. With more millionaires than some countries have citizens and the majority of them desperate to get out of the mess, the flood gates are about to open. Fascism is about to go global.
Romney and the globalists like to talk about the benefits of free trade. All we ever seem to hear is what Bill and Betty middle class can understand, the minimum wage. We here about 'competition' and convergence and the need to be more competitve. What makes the globalists' China operations more competitve, however, runs deeper than just the wage for labour. Unfortunately it get's a little complicated for most people to understand that the result of 'rights arbitrage' is a convergence of the factors of competition which include thing like human rights, it goes right into the socio-economic paradigm. It's ironic that the greatest bureaucracy the world has ever known, (big government), is so incredibly competitve. It's amazing what corporate collectivism can achieve when a total police state is attained and rights do not exist, yes, it is good to be elite in the new world order.
My view is that once the RMB becomes fully convertible and the money starts flowing out of China there's going to be a massive land grab. US real estate is going to be a great place to be, Faber is right about that. Remember at the height of the Japanese economic boom when people were freaking out because the Japanese were buying up entire Hawaian Islands, stuff like that. Well that just aint nothing compared to what is going to happen. During the financial crisis the Russians approached the Chinese to dump treasuries and bankrupt the US. Thankfully they did not. But what happens if they become a new reserve currency country, which they likely will. Will emerging africa really want to hold dollars?
America has already been sold out by it's corporate leaders. The NWO is taking over. And it aint Socialism. We are going full on global fascism, big brother style. The system that was America was designed to work when the people were competing with one another on a level playing field, ie in terms of rights, rule of law etc. Something changed though when the globalists saw how much they could make selling out to China. You may as well vote for some food stamps and some health care while you can.......
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