BEWARE OF THE SUCKER RALLY
The Fools Rally is upon us. Tis the season. As you have been reading, this market is controlled by speculators. Who says? All central banks. The Japanese and Chinese Nations. Everyone in authority. The Saudi’s. Iran. President Obama. Who do you need from the news – its all the leadership have said it but the candidates.
The regulations are all local – say the USA and the UK and China. The trades are all unregulated and occurring the CLOUD. The money pools are greater than nations due to leverage. No one has over sight. No reporting. No audits. No anything. Shadow banking is a side betting casino outside nation’s control today. The digital market rose too fast for regulations globally to adopt. LOOPHOLE became the only law. Thee 440 trillion dollars to 2.6 trillion is speculation versus real market investing annually. The dog is 440 trillion of casino trades all unregulated manipulating price and the 2.6 is the trail. In only 1999 that was so reversed. Today the crime of speculation is legal. Who moved? Our regulators made errors for which no on will cut off their head – but as with alice in wonderland – it is a good idea the French came up with. Chills speculation for years.
As the queen in Alice once said….OFF WITH THEIR HEADS. But hey its just a child’s fairy tale.
The leverage has reached a level of 50 to 1 which is not sustainable and is the ultimate risk to the entire world financial system and no one is unaffected. The trades manipulating price and betting upon straddles in unregulated derivative and ETF contracts, is approaching 440 trillion dollars annually, with only 2.6 trillion in stake holder trading or real investment – or the real market where some one actually buys a stock or a bond and owns it. The trading is now a casino. It is casino capitalism. The price of EVERYTHING is being criminally manipulated. No one is regulating these fantastic manipulations all world leaders are complaining about.
Price manipulation is taking place from straddle bets on both the long and short side of pricing in fantastic computer software trading that has hijacked the world financial system. To reign in what was just in 1999 a global crime punishable by long prison terms, and has now been made legal, requires GLOBAL G 100 REGULATION. We have to make what was a crime a few years ago a crime once again and destroy unwanted market manipulations. By a world wide rule of law on financial markets without unfair advantage in one jurisdiction against the rest of us.
Which is how it is today. It is insane.
A new regulatory frame work for the digital market space is required if we desire a market place that is:
- Has no secrets
- Is 100% transparent
- Is 100% reportable
- Is 100 % accountable
Removal of the false idea of ” RISK-LESS RISK” as a total oxymoron – from market dynamics – where hedging is buying real assets – or selling real assets and phony markets of betting “which way something might go” are made CRIMINAL AGAIN as pure speculations – is the only process to return cooperative versus competitive capitalism to the world.
Competitive Capitalism and Communism have failed as economic modeling systems. Look at the mess the world is in today. Look at the unnecessary poverty where today’s failed system models leave 1% with more wealth than 99%. Is that the way spirits who are immortal seek t play together? Can we do better? Is there an improved system model? Of course there is.
Today when the market goes up – you are seeing a fools rally. The computers are making profit all the way down and all the way up and all the way down again. They require mount everest volatility to maximum their own greed and profits. Corporations are now hostage to speculative price manipulation on stock values. No company is free of the influence of the third party in the casino.
Casino capitalism is a vortex made possible by LEGAL LOOP HOLES where the rule of law does not apply. Over the years using fantastic leverage the entire world system is hostage now to the star ships of risk MAKING – the world banking and investment banking system – now merged into one giant too big to jail frame work.
The truth be known these giant systems can not survive First they are criminal organizations without fully realizing their crimes. The laws allow it and the greed plows it. Humans move on opportunity and options. Show smart brains a way to corner money and they will plow over there. Always.
The legal frame work that forged the prosperity after world war II was demolished in 1999. Since that time we repeat history and create markets that manipulate all prices, just like in the 1920,s – where side bets in BUCKET SHOPS ( no the bucket shops are legal once again and on line ) permit side bets on which WAY a price will go versus stake holder and real investing. The result is the casino ends up with all the money and investment in innovation, in plant, in expansion, in developing nations, in everything, is paused while everyone is racing to profit from the casino betting. Worse the modern version ranks the highest risk investment of all ( casino speculative betting ) as AAA SECURITIES and SAFE just like they did sub prime in 2008. Is this a crime?
Yes. The credit agencies need to go to prison. Those at the top of the casino need to go to prison. Until they do go to prison you will not stop the casino. Or until the bankruptcy.
The fools rally will suck many in. Things are ok the market over reacted.
In fact the market – the world banks nations and investment banks are truly bankrupt. If the credit stops even for a 72 hour period, and the bills must be paid, they are all defaulting. How it will take place is this model and for 5000 years it always is this one model – as we do NOT learn from our own HISTORY financially speaking:
- A contagion event on defaulting credit will strike the markets chilling prices and speculation.
- The contagion event will spread like a wild fire as more firms default and the SUPER CRASH will be upon us.
- Super Crash will be sudden violent and quick dropping DOW values to 6000. 100 TRILLION in values will be lost in all markets world wide.
- A world depression will follow with prolonged entrenched deflation which we have no. Deflation means the credit party is over folks. Leveraged speculative buying ( the entire market ) is no longer profitable. Can’t you see these tea leaves in 2016 folks?
- A world war is how we re-set economics globally and re-inflate the economics where governments spend when consumers are not – 30% of GNP on war. Stimulating the reset of economics within new laws which come first to CRIMINALIZE THE SPECULATION and close the casino.
If your grand mother’s bank deposits, anywhere in the world, can be used in offshore unregulated wild wild west casino trading at 50 to 1 leverage – booking hypothetical profits as projected upon the books of the parent – all casino bets on which way a price will go on all sides of the transaction certain you will have risk-less risk – as you have even insured through CDS contracts the loss potential – you feel you are not a criminal. However because you CAN do this trade morally ethically and socially given social capital – SHOULD YOU DO THIS TRADE?
When this is the leverage – the teeter totter of all market trades – 440 Trillion of speculation on price in the casino with none of that money going into the real economics of a nation and its people – just a greed machine mindlessly making profits – WHEN not IF the casino fails to function – and the leverage unwinds – due to DEFLATION AND DELEVERAGING – the casino has a collapse of wealth – as the wealth bubble unwinds from the credit – credit is called – and oceans of assets must be dumped. The CDS insurance is found itself to be unregulated and without any reserves to pay claims – to be in default so the insurance claims say against AIG can’t be paid unless the Government bails out AIG.
The SUPER CRASH is so much larger a wave than the 2008 narrow market bubble crash that no nation can bail out the claims of 100’s of trillions of dollars. Runs take place on banks. And fast. As it becomes more and more clear there is NO MONEY IN THE BANKS. All money in all banks in all nations has been invested fully into the casino. For every dollar deposited in a bank less than once cent is in the bank to pay the deposited. On a 99 to 1 ratio no nation can underwrite those loses.
The banks are utterly and hopefully bankrupt. The investment banks running the casino made sure and drained all their crash into “booking assets” that it was once a crime to show as assets on a bank balance sheet. Also banks are not honest in their accounting. They are EXEMPT from FAIR MARKET ACCOUNTING. So they hold assets that are depressed in price at full value or near full value on their books. If they adjusted their assets to FAIR MARKET ACCOUNTING as any other public firm MUST under the LAW – the banks would be utterly bankrupt and would close.
All banks will close. When they re–open depositors will be wiped out. Everyone. World wide.
This failure of communism and competitive capitalism is fixed by the new model for financial systemic’s we define in the publication REDEMPTION THE COOPERATION REVOLUTION as Cooperative Capitalism. Under a G 100 Global Economic Constitution – governing world trade all G 100 nations sign on to – speculation is a crime and has quick and serious jail time executed for its conduct.
All financial markets are regulated and stake holder investing is the only investing permitted.
Public firms report results every 180 days under the law.
Long term planning and investing is seen as honorable and short term profit making and day trading is seen as casino criminal to capitalism. Anti social.
Social Capitalism that rewards environmental investing, conduct that abides by the regulations, and good citizens of the world with fair taxation and havens ceasing to exist all of which are criminal and another aspect of the casino.
We are lobbying for a G 100 ECONOMIC CONSTITUTIONAL CONVENTION OVER THREE YEARS HOSTED ON THE BIG ISLAND OF HAWAII TO DEVELOP THE NEW WORLD ORDER. Everyone participates and signs in to achieve a world wide prosperity and environmental good neighbor policy under rule of law. A level fair trading field exits. All nations unite to have rogue nations isolated under the CONSTITUTION so that no nation can exist outside the union of law economically. THE NEW WORLD ORDER rises on integrity and truth.
A review of the constitution every 25 years so that the living breathing rule of law for economics adapts to new technology and casino flare ups to stamp up casino side betting in economics. Own real investments or save but no side betting on anything and calling such contracts or bets hedges at the risk to the entire system is relabeled a CRIME as it has been in all periods of stable economics.
The FOOLS RALLY.
Folks its a casino. One chaps computers betting against the software of the other. There is no REAL MARKET. If you buy into stocks or bonds – hold them long term and forget about any short term market. You are not selling in that news so forget it and golf. Play long term. Disregard the casino.
The bottom of this Deflating Deleveraging market has NOT BEGUN not EVEN CLOSE to be reached yet. The world is drowning in oil and new supplies are coming on line like popcorn. Soon we will be able to make oil. We have enough natural gas to never use oil again and the earth farts natural gas with zero pollution when we burn it. We are moving to natural gas and other fuels and oil will never again know the demand over supply it enjoyed for a short period of market imbalance. The over supply is the new normal. Gas should be 75 cents at the pump before it levels off. We are drowning in oil folks. Suppliers who borrowed to fund their economic model on super high prices of oil are forever now trapped in the DEFLATION. Those who adjust first and massively win. The rest are acquired by those early adaptors. No pain no gain.
As the G 100 COOPERATIVE SUMMIT is unlikely to be a sane response to the casino capitalism, the insanity of greed is likely to play out. This will flow into a musical chairs of massive FINAL BETTING. The market will lose. The contagion debt deflates will initiate the musical chairs where the money pool sitting last looses all. Which will include all banks and nations.
All currency will bankrupt. Including the US Dollar.
All banks will close.
All investment houses will go bankrupt. No one will bail them out.
The dominoes will flow over a two year sea of blood that world war will distract us from. So many will starve to death -a ll preventable. The criminals will never go to jail. Nor will they ever realize they ARE criminals and the casting agency of the crimes. Those who caused it all – the FEDS of the wnkorld will never pay for their crimes. They will end they are they causation agency.
Today the notion the FED is our savior is forever removed.
Today the FED is dead as to credibility.
The market and the public know the Fed caused the problem – makes only failed policy – and profits from all the pain. No one trusts the FED. That loss of confidence is the crack that begins to open everyone’s eyes that the banks are bankrupt and the crooks have allowed LEGAL THEFT of everyone’s money – all individual wealth all corporate and institutional wealth – all pension wealth.
What happens when contagion creates a new financial order:
- All wealth wiped out.
- Banks closed following enormous runs.
- National currencies worthless and re-issued.
- All markets closed.
- All pensions and social security closed forever.
This all happens SO FAST and no nation has any tool to manage a DEBT BOMB exploding due to the arithmetic as Bill Clinton so aptly put it. No leader is talking about the only issue that matters:
- The Casino Capitalism market is about to explode on debt
- A G 100 world RE-REGULTION CONSTITUTIONAL CONGRESS is the only sane solution and possible fix
- Move all institutional and sovereign nation debt forward in time – using time as a key asset – within a new investment class we call SUPER BONDS with 200 year maturity.
- IMF and WORLD BANKS and Sovereign Nations guarantee SUPER BOND investment class assets.
- Feds are merged into their country treasury and paying interest to print money stops.
No candidate is talking about SUPER CASH and WORLD WAR but that is what we face, based on 5000 years of history. We are precisely where we were in the 1920’s keeping in mind there are some important differences financially. Today the trades are in the cloud not in a physical bucket shop like a KENO PARLOR in cities in every community world wide. Side betting became much greater by ratio than the real market place. Investment to build economics stopped. Casino profits became the market place normal.
Today the casino is on a smart phone on a lap top on a pad – and the trading is leveraged in ways the 1920’s never imagined. They did not have ETF’s, CDC’s CDW’s CDS’s and a host or other letters the public has no clue about. These contracts as they are just contracts between parties have no regularity and are many many times the ratio of the market. The CASINO is larger more leverage more upside down the institutions are more bankrupt – all of them – than in the 1920’s and its global. Its worse in ASIA which will crack first – China will not have a soft landing. China will have an implosion the planners can not control. India is going to have a terrible bank collapse. The EU banks are shaking like they ride on a hover board because the market sees they have no arms and legs left in their deposit base and the casino roulette wheel is spinning down now. There is no hope for a safe landing it just went to far.
No DEFLATION the worst nightmare of central banks is upon us all. Deleveraging. Don’t you see the larger firms selling trillions and getting rid of assets now before the next leg of deflation waste those values. They are moving to all cash and hard assets ( their own minerals ). Look at ANGLO AMERICAN this week alone. Look at Buffet in today’s meeting.
Folks the pace of deleveraging is accelerating. The DEFLATION is not inflating anywhere. The Deflation is PICKING UP SPEED.
Will there be a recession?
America will experience a serious recession.
The world is going to experience a DEPRESSION.
The EU can’t stay together in such a market.
Nations will stop cooperating. The spiral of unwinding wealth and spiraling up competition will lead to WORLD WAR as it always does – always economic.
The few who profited in the casino will profit in the war because we failed to lock the crooks in jails.
It is rather insane really.
Competition IS insane.
Cooperation is sane.
The two do not mix.
Cooperation requires integrity.
Competition has none.
One is insane.
The other is sane.
A fools rally is insane ….only IF you buy in. Again.
We’ll keep a light on for ya.
Berny Dohrmann – Chairman Founder CEO SPACE largest business community in the world next SAFE HARBOR for business owner conference – March 6th – I’d register and come.
PS: IT is my opinion – the sucker rally will KILL THOSE WHO FINANCIALLY bet into this silly fools rally – the blood bath to follow will be another of my correct predictions as are all the rest.— February 16, 2016