Predictions for 2016: The Greater Depression?

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What will happen in 2016? Well there are a couple of things that it looks like will happen. I have been thinking a lot about what 2016 has in store for us and we have seen already the first week of the year what will be coming this year in the financial markets and the world. Though it is hard to predict a time frame for things there is certainly easy to predict an outcome if we study the history behind it.

Lets get down to the prediction part. Although I said it is hard to put a date on predictions involving human activity it is easy to see history repeat itself.

Predictions 2016!

• The Canadian Dollar will continue to crash. I can see a floor maybe at $0.50 Canadian Dollars to $1 US Dollar or even further. It depends on how hard Stephen Poloz the current head of Bank of Canada is willing to destroy it to “help exporters” as he stated in his “throne” speech the 8th of Desember last year. The problem with printing currency through low interest rates and QE is that inflation will come after and it will hurt both producers and people in the economy. Today there are over 20 Central Banks that do this and it is most major ones. So to be competitive is almost impossible and it is just a race to 0!!!! Stop playing with peoples wealth and livelihoods bankster idiot.
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• Negative Interest rates in most major western countries. As The US FED has tried to show that they believe the global economy and its local economy is recovering. A recovery is far from the truth!! With massive unemployment, not the official 5.0%, but more 12-13% looking at worker participation rates. With massive drop in commodity prices. Stock prices are trying to follow, but manipulated markets are showing resistance as the banking sector are throwing free money on the stock market and real estate bonfires. You can call a negative interest rate two things a tax on your savings or a way to force money out into the economy. The problem is that most money flowing out of the monetary system is going into peoples mattresses not the economy in spending.
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•  Oil will hit new record lows. Under $20 is very possible as less and less economic demand is forcing the price down as supply is steadily increasing. Also with Iranian oil hitting the markets we will see a even harder drop. We could see in a crazy scenario $10 a barrel oil. The continuous tension in the middle east and a all out war could cause oil prices to raise as high as $200 a barrel, but it is not likely. There is a joker there that will be hard to predict, but the ongoing tension between Iran and Saudi Arabia is not a good development for oil!
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• We might see one or more hyper-inflationary events in 2016 as currencies will get abused and distrusted by the public in several countries. Below is a list of several suspects that can see a hyper-inflationary events. Both Argentina and Venezuela has both has recent hyper inflation and destruction of their currencies. Also War in several countries might move inflation up and a distrust from the people in those countries might cause a 1993 Yugoslavian hyper inflationary events as countries abuses their power to print currency to buy military equipment!
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• All out war in the Middle East as Shiites, Sunnis and Jews confront each other. Mostly their ideological governments that have a collectivist mind frame that believes that the others should not exist as they don’t believe in what they do. Saudi Arabia vs Iran will be the key factor. And of course Erdogan in Turkey which is looking more and more like a tyrant.
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• 2016 Market Crashes. We are seeing the start to the current crashes that will happen as most major markets are down. This is just normal as they have been pumped up by cheap credit and Quantitative Easing by Central Banks. China in the last two weeks have force buy shares for 230 Yuan in order to desperately keep their massive real estate and commodity bubble afloat and to keep consumer in a certainty markets will always go up. Bankers are there to make a profit on you. They will tell you whatever they can to keep you convinced the markets are fine so they can exit why you buy at record highs. See the charts below if you are not convinced. Also remember the 7 year cycle in markets which is just due.
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• Commodities further down in a deflationary spiral while Gold might inch up on risk. You have to remember that gold is heavily manipulated through the paper gold price GLD on COMEX. This will just continue, but we might see a breakout as COMEX is dangerously near default as the paper to gold ratio is at record ponzi scheme highs!
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• Bail In regimes will come as stock markets collapses and banks collapse as they have gambled trillions of dollars that does not exist in derivative products. When you have money in a bank account that money is not yours and the bank will use that money to recapitalize itself as they loose money on their derivative betting and gambling. Think that bail ins are something that will never happen consider all these links to new legislation in Canada, EU and the US.  http://actionplan.gc.ca/en/initiative/risk-management-framework-domestic-systemically, http://ca.reuters.com/article/businessNews/idCAKBN0OD14Z20150528, https://www.imf.org/external/pubs/ft/sdn/2012/sdn1203.pdf
• http://www.youtube.com/watch?v=tZfvYA7_L1E
• Corporations will start suing governments as TTP and TTIP and other free trade agreements are in place. This legislations makes it possible for big multinational corporations to sue local governments if they have different rules that could hinder them from future profits. This is just a gigantic power grab. http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/tpp-ptp/index.aspx?lang=eng, http://www.exposethetpp.org/
• A big terrorist attack in the US to cover up a potentially big market crash? They did it in 2001! To cover up the dot com crash which normally unfolding would have crashed the system and global failure would have been imminent. Remember the $10k  capital control implemented in the banking system after 9/11. A great way to strangle peoples freedom of currency movement.
• More bankruptcies as more and more debt and unfunded liabilities are strangling local and national governments world wide. We will also see an increase in pensions and other government promises disappearing!! So much for the money you paid to these programs!! Your money will not be safe in Fiat Currencies in 2016!! http://dailyreckoning.com/205-trillion-in-unfunded-liabilities/
• Watch out for the IMF and the world bank to push more countries into Special Drawing Rights debt as they try to spread their currency and strangle economies under water with cheap money that they will never pay back and then take your resources, land and infrastructure from you as you default on your IMF loans!! http://www.imf.org/external/np/exr/facts/sdr.htm
• Bigger inequality problems as governments continue to help bankers and corporations to accumulate more and more power in the economy. We don’t have capitalism today in a free market way we have Keynesian government spending and corporate fascism!! The more money printed and the more QE and lower interest rates the more power those with access to this cheap money will get!!
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• More riots and looting as governments and big banks will be pushing division of groups and racism to put them up against each other instead of uniting us all to change the monetary system and governments for better. Also currency printing will be on the forefront in this push to eliminating people from cooperating against corrupt government and corporations.
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• A big drop in Small and Medium size businesses as more taxation, legislation and rules strangle the most important people in the economy that is the backbone of any economy.
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• The China Debt bubble will unravel as they have seen a massive raise in debt and will de-leverage!!

There you go. There is the 15 points I see as high probability to happen in 2016.

John Sneisen

The Economic Truth

 

World War 3 a Financial War?

We are on the verge of war!

A lot of people have been speaking of the possibility of a hot war between the west and China and Russia. This is possible as both sides have mutually assured destructive plans to blow each other to pieces,  but I think we are very much more likely to see a Financial War than Nuclear attacks. We are even more likely to see Civil Wars before a global destructive war.

As a matter of fact we are seeing a Financial War going on right now globally. Between countries desperately trying to keep a cheap currency in order to have a surplus in their trade budget as today’s world has become a global competitive market place. The problem with what is called a currency war is that now you are also attacking your own constituents! The people that live in that country who is now cheapening their currency will suffer as inflation the newly created money made to cheapen the currency will chase all kinds of assets and commodities and prices will go up and as interest rates will continue to be low the more money will be created out of thin air and the more and more those hard earned money you have become less worth.

Japan is one of the biggest competitors in the race to 0 around the world monetary systems. In Japan the Print to cheapen currency policy known as Abenomics are failing as exports grew very little and the people of Japan are ending up buying assets that hold their value against FIAT currencies and most people loose as they have their life savings in devalued Yen. What people doesn’t seem to understand is that we are at war today against the global banking cartel. They are destroying our wealth by making money creation cheap by near 0% interest and printing currency. If you study the world around you it becomes apparent that more and more families are struggling as their wealth is getting destroyed or played with by bankers in their investment accounts. Most people are not seeing any raises in their salaries and if you don’t increase your salary by the same number as the inflation and we are not talking the CPI(Consumer Price Index) a fancy economic word for inflation. We can account for the CPI, but we also need to earn on top of whatever percent it is more as the CPI is highly manipulated and most things you buy is not calculated into the CPI by default.

As we are seeing our wealth destroyed if we hold it in paper FIAT, there are far more and bigger dangers lurking in the Shadows of finance and Military plans that can destroy our life’s and wealth a lot faster.

Financial Warfare

As we have our wealth eradicated by the failed Central Bankers around the world there are way bigger problems ahead. Derivatives, Bonds, Stocks, Gold, Silver, Bitcoin and other assets are both positive and negative tools that is in use by bankers, every day people and in military plans as a way to save a country, your wealth or destroy a country.

The inventions of derivatives was talked about in the financial sector as a safer financial world, but as seen in 2008 the leverage used in these types of investments can be as Warren Buffet says Weapons of Mass Financial Destruction.

China

Derivatives lurks in what is called the Shadow Banking system which is the banks way of using a Ponzi Scheme(Today’s Monetary System) to create a ponzi scheme on top of that. They use the big accounting firms like KPMG and others to hide their “Books” their real assets and liabilities as they invest in Shadow Banking Derivatives such as CDO(Collateralized Debt Obligations), CLO(Collateralized Loan Obligations) and MBS(Mortgage Backed Securities). These securities are highly leveraged full of bad assets and ready to blow at any moment. When they blow the Too Big To Fail banks sits ready to get Bailed Out or Bailed In! The CDO’s are very popular in China as the corrupt State Owned Enterprises are using these bad investment techniques from the banks to create malinvestment through giving them the power to produce steel, copper and concrete while the corrupt government with banks invests in infrastructure and building cities that never might get inhabited as there are no one to move into them, but the SOE’s benefit, the shadow banking industry in China wins and the $3T in CDO, CLO and MBS investments that could blow up as the ponzi scheme comes down when there is no more money left to feed it! If this unravels it could send ripples into the global economy way bigger than the $100B+ CDO crash of 2008 in the Western banking system.

US

Our Economic and Monetary system have been totally demolished since 1971. The US is in the worst shape as they are supposed back the world with their continuously failing policies. After Obama took office in 2008 as the melt down on Wall street and the global economy was apparent he made some very bad decisions with his team to bail out wall street’s bad investment programs after they brought down the world economy with CDO’s as talked about above. Some people say the reason why it happened is that Obama had the biggest amount of Wall Street donors in history of any president and he were willing to do whatever it takes to keep them happy.

After the 2008 an economic recovery is long gone, the US government shut down, the world is moving away from US dollars as world reserve currency and the never ending sink hole of US Government unfunded liabilities now topping over $17.5T+. This number will increase faster and faster as the US continue to spend way more money than they have.

The US Federal Reserve the Central Bank of the US has also failed as their policies of 0% interest and Quantitative Easing or the buying of bad and toxic assets from the US banks in trouble giving them new cash to go out and do the same as they did in the first place to get into the toxic assets and then the FED takes these bad assets and put it on it’s own books.

The problem is how will they exit? Thinking about investment. One of the first and most important question an investor should ask himself is how do I exit? Well how will the FED exit as who would like to buy assets that have failed and are under performing? The US have created to gigantic bubbles of epic proportions still building up today. 1. The Stock Market and 2. US Housing markets. There are no fundamentals that say stock prices or housing prices should go up, but the underlying cause is of course leverage and debt made available from the FED to Wall Street and friends. The new Wall street slum lords making it impossible for people to fix their houses as they can’t contact their land lord or how about the massive rise in margin debt following the US Stock exchanges?

Wait there is more. I said fundamentals are not there. Monetary Velocity is at record lows actually lower than the depression in the late 20’s early 30’s. Consumption is falling rapidly as people have no money to spend and the US Economy who is 71% consumption has put many retailers into either bankruptcy or to cut jobs or stores all over the country. Also the so called economists are using faulty numbers where they wont even count in people who have stopped looking for job as unemployed. We live in an illusion and the bad derivatives who blew up the US are in full force coming back as the same Wall Street Ponzi schemes continue.

EU

As I was writing this blog it became news that the ECB the European Central Bank has issued negative interest rates. Negative interest rates means that they have made a war against the savers as suddenly when you borrow the bank your money they charge you an interest and on top of that they can do whatever they want with that money. The European Union also have it’s own plans and the the Forth Reich to prevent wars in-between countries in Europe can become so successful that they can take over where the US failed?

The EU also have strong ties to making their currency a global reserve currency and they are positioned better than the US. But no FIAT Currency in it’s current states can survive the coming global FIAT default carnage as Central Banks world wide print themselves to death as people loose total faith in their failing system!

Financial War plans?

So what is happening now financially war vice? Have you heard about sanctions and capital controls as Russia, Iran, Cuba, Iraq, North Korea and a couple more are seeing restrictions on the use of US Dollars for their trade as the US only wants people to cooperate with them on their terms. Capital Controls and Embargoes are set in place to hurt economies. They makes it hard for you to move money around and they slow down your economy, can create massive inflation and forces you to think out side the dollar world reserve box. The world around the west are getting tired of getting bullied by the US Empire and are moving away from the Dollar.

There are 1000’s of different trade deals since 2008 that have moved countries away from using US Dollars to settle debts, do trade or investments. The US is cheapening it’s dollar to keep it’s “Partners” in check and are letting wall street interests steal the wealth of whole nations having US Dollars as reserve currency.

Financial war what can countries do and are doing to protect themselves and to attack back?

I don’t know if you remember the islands in the South China Sea dispute between Japan and China? It was a lot of war mongering and the US was not sure which side to be on as they were in a double whammy. China and Japan are the biggest holders of US debt aka. bonds. China holds a whooping $3T worth and Japan about $1T. If these countries went to war then who would the US back? Both countries if dumping their US dollar reserves would be capable to sink the US and the world economy with it. One strength that China had that the Japan doesn’t have is their Gold holding that unofficially can be as high as 5-8000 tonnes. Gold has real value and cannot be devalued. This put China way ahead of Japan which would have their reserves dwindle to near 0 which is the real value of any Fiat currency.

Also by buying big shares in companies world wide rouge Hedge Funds could also pose a threat to any economy as they could use derivatives and their positions in any companies to explode an economy. There are way many more ways states protect themselves. Ex. when Iranian’s had a halt in the possibility to use US dollars they started settling oil trade with Turkey in gold.

It sounds like we the people are put in the middle of war mongering psychopathy that are craving power and might just like Kings and Queens in the old days.

What can we do to protect ourselves?

3 words Gold, Silver and Bitcoin. How can these three protect us or even work as financial militia warfare back against the centrally planned wealth stealing economy?

These three have been mentioned a lot lately together and I believe that a combination of this 3 can help you a lot when the global carnage comes due. Another good commodity to have during the coming global monetary system meltdown is food. Food might be needed as transportation and other systems together with banks might shut down for weeks as a global reset button will be hit by elites as explained above.

Food has been shown to be a great asset as people might starve to death during cities lack of access to food as supermarkets rely on a 3 day supply only.

Gold and Silver protects your wealth as FIAT paper currencies are printed by greedy elites. Elites use gold and silver to protect against paper failures and this has happened 1000’s of times throughout history, but it is funny how we forget. During the 1900’s about 50-100 fiat currencies failed got devalued or replaced or people stopped using them as they lacked trust in them. It is all about trust, but in today’s case and many times before government law forces us to use the bankers failed system who only enriches the government and the banks.

Bitcoin should also be mentioned here as it is a currency without any real tangible value, but it has a limited supply which cannot be increased. This is great! As Bitcoins will not really loose their value unless we choose to not use them. Bitcoins also eliminates today’s crony system as there are no need for banks or governments in a Bitcoin system. A Free market approach helps Bitcoin emerge as a solution to help the people!

Be prepared and protect yourself!

As I am not giving you financial advice, but just repeating what a dozen of financial experts are saying it is very important you take my word very seriously and do your own due diligence on what I have been talking about. There are so many risks out there today and the system is built to enrich those in control the bankers and governments world wide.

If we don’t protect ourselves a globally controlled crony capitalist system could quickly emerge and as the US fails the bailout will not come from tax payers but a globalist bank called the IMF!!!

Share this blog with friends and family and start understanding money!

Before Chaos comes intelligence. Prepare for the worst and hope for the best! We might have only months, but at the best we have a couple of years. Wealth protection is important as elites don’t want you to have wealth as wealth gives you economic power and something to say when the day of failure comes.

John Thore Stub Sneisen

The Economic Truth