Findings & Forecasts 02/22/2012

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by Patrick Wood

Economy

Greece is still the center focus of Europe. The unelected Prime Min­ister (a Tri­lat­eral Com­mis­sion member) is dri­ving Greece to become a vassal state for the EU… micro­man­aged in every way. Pro­tecting the existing debtors is para­mount, while con­suming what­ever resources are left in the belea­guered state.

Some are thinking that Ger­many is trying to force Greece out of the EU. Per­haps. Either way, Greece is in a death spiral that cannot be over­come without default and com­plete restruc­turing. Its cit­i­zens are on the edge of forcing anarchy and kicking the gov­ern­ment out completely.

The aus­terity being forced on Greece is destroying its economy. That is, the very poli­cies intended to straighten Greece out, are resulting in its demise instead. This is a man­i­fes­ta­tion of a defla­tionary spiral.

Every pro­posed bailout package cre­ated by the EU has been based on assump­tions of growth. Without growth, every bailout is failed before it starts and only addi­tional bailouts allow the can to be kicked down the road.

So why doesn’t the world pick on Italy, Ire­land and espe­cially the U.S.? The chart above shows that the U.S. is well ahead of Greece in terms of debt per capita. Our polit­ical system is just as cor­rupt and inept.

While the U.S. still enjoys an AA credit rating, Greece just got down­graded from C to CCC.

Since 1978 I have written that the con­clu­sion of Tri­lat­eral policy would bring a return to the dark ages — a feu­dal­istic system where a few owners would pre­side over a pauper class with brutal effi­ciency. Greece is your first look at the future of the world, and it’s being man­aged by an appointed Trilateral.

Robert Zoel­lick, pres­i­dent of the World Bank, is another Tri­lat­eral member. I have thor­oughly doc­u­mented the Commission’s dom­i­nance over the World Bank in the past. Zoel­lick just announced a new ini­tia­tive that he is calling “SOS” — “SAVE OUR SEAS”. After cur­sory reading, it seems to me to be a back door to the Law of the Sea treaty (that was also spon­sored by sev­eral Tri­lat­erals, but has failed to be rat­i­fied by the U.S.) to a) reduce national sov­er­eignty over coastal waters and b) put the oceans under global tech­no­cratic con­trol for the good of humanity. The big excuse this time is to save the fish from over-harvesting and deple­tion, but that is a total ruse.

Mar­kets

Since December, the rise in the S&P 500 has traced out a defin­i­tive ascending wedge” pat­tern that is always seen as a ter­mi­na­tion pat­tern in upward A-B-C cor­rec­tions. The same pat­tern can be seen in the DJ Indus­trial index.

The DJ Trans­ports, how­ever, have already turned down without making a new high to match other indexes. This is a bearish non-confirmation according to Dow Theory.

Mean­while, market inter­nals are dete­ri­o­rating every day.

The dollar has puts it imme­diate bullish poten­tial on hold while a deeper a-b-c cor­rec­tion works itself out before changing trend again. This pat­tern could be ter­mi­nated at any time, so the only oppor­tu­nity is to look for points of entry on long trades.

Both gold and silver are fin­ishing up their counter-trend rallies.

Stocks and metals should turn down together, while the dollar should advance.

Pro­fes­sional market traders that I listen to are have been liq­ui­dating posi­tions and going short on stocks. This explains the low volume in that the pros are not willing to jump into the market with any big cash.

 

 

 

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