Market: dead calm

Posted: October 25, 2016 in Uncategorized

Like the ocean all the market went dead calm and institutions increased cash across the board as everyone learnt the “Brexit lesson”. Market is kind of trapped in a range to wait and see the US solutions…too many variables to make a sensate decision. 

But even from far above is dead calm. The ASX 200 was at these levels 3 years ago. A lot of risk for collecting just dividends, if you are index tracking.

The Presidential debate yesterday showed that Clinton is unfit for command.

She exposed that it takes 4 minutes for the US President to launch a nuclear strike and consult 10 person.

This is a precious information for any enemy of the US.   

Now for all her fear of Putin the Russians could station a Yasen Class nuclear strategic submarine at less than 4 minutes strike distance from Washington. 

Very smart indeed for an experienced officer. I do prefer an inexperienced one!

South China Seas and Philippines

Posted: October 21, 2016 in Uncategorized

Yesterday Philippines announced the pivot to China and Russia.

In the new Cold War this is a terrible hit for the US, Australia and NATO.

Philippines strategically was one of the most important allies for the US and kind of the base for its superiority in the South China Seas.

Even if PM Duterte does not follow up and goes just in neutral…ot is a massive blow.

The new Cold War is shaping up as developed world versus emerging countries 

Immigration as a weapon of war

Posted: October 20, 2016 in Uncategorized

This is not an article pro or against i migration. It simply looking at immigration as a weapon of war.

The latest immense flow of immigrant has been created by the US with the various wars in Afghanistan, Iraq, Libya and, to a certain extent Syria.

There are different studies like the Belfer Center for Science and International Affairs at Harvard University that bears the name «Strategic Engineered Migration as a Weapon of War>> in 2008. It is a uni study, but the President of the Belfer Center was working for the (Bill) Clinton administration and close to the Pentagon.

Also Obama gave the go ahead to the “Nudge” program which uses behavioral science to study how to manipulate group of people.

Soros, the investment guru and friend of the Clinton, has been using its Open Society Foundations, is actively encouraging migration (Skynews found several booklets on the Lesbo Island in Greece with the name of “Migrant Handbook” of his foundation).

So there is a  clear pattern  and people of the elites committing resources to this new kind of war.

But why?

Well minority groups can be better manipulated, immigration creates great money making opportunities if you are in that business (Italian police carabinieri already arrested several politicians around it – and also found out that the immigration business is more lucrative than drugs).

Moreover, in several European countries citizenship is automatic after 5 years…so large masses of immigrants will be able to vote soon – for the party that allowed it.

Also, the mass immigration provide disruption in Europe and will not allow it to be powerful again (the Belfer Study has been committed at the peak of the financial crisis which was threatening to collapse the USA).

How it will end. Well unless a populist candidate takes over (like Le Pens or Brexit) – it will not.

But sometime destiny takes care of itself in a funny way. In several instances (Australia, North/South Italy etc) the waves of first immigrants, once settled, become the sternest adversaries of new waves of immigration and vote right – contrary to the expectations of the elites.

If you had any doubt about who you are going to elect, please don’t.

The head of Wikileaks Assange has leaked top secret docs for over 4 years – even really bad ones that could have led to the death of US soldiers and nothing happened aa he was protected by the Ecuadorian embassy. 

Now he is leaking docs about Clinton and suddenly Ecuador cut his internet access and does not answer call about what Assange is doing now.

Supposedly John Kerry, Secretary of State, called in to ask to stop Assange.

Queen Cersei Clinton hitlist.

Another bit of fog of war – last week several missile were apparently shot at 2 US Warships in Yemen waters and one of the US ships shot cruise missile to take out Houthi’s radar.

The Houthi said they never shot at US warships (well, they are not that stupid…so it makes sense)

Today Reuters reports that the Pentagon have altered the story saying that they are assessing the incident and they are not sure what happened.

So funny enough a warship with state of the art systems does  not know what happened? Quite funny indeed.

And by the way the cruise missiles that the US warship shot against Yemen (so a nation that never declared war to the US) were real. If it was not American (eg Russia) this would a terrible assault on a independent and innocent nation!

My best guess is that it was a Saudi false flag attack to involve the US in Yemen.

Again, it make sense – the US, after the airstrike that killed over 200 people and injured over 300 on a funeral (by the Saudis with US laser guided precision bond) – the US threatened the Saudi to review their support. So the Saudi want to hit a US warship so the US has to remain involved and go deeper.

When the US will learn who is the real enemy? Never – as there are too much money involved and most of their politicians (Clinton foundation received between $10 million and 25 million dollar from the Saudi Government – font New York Times (foundations are required to disclosed only ranges not specific amounts).

By the way USD 25 million would be 20% of the entire Clinton campaign, ops!



Posted: October 18, 2016 in Uncategorized

Australia is closing up as the best ever economy, 25 years of uninterrupted growth from 1991. Only Netherlands had a better period with expansion from 1982 to 2008 without contraction.

1991 population 17.2 million, today 24.1

GDP per capita soared 59% 1991-2016

All this has been due to the mining boom and because the foreigners see Australia as a safe country as they are financing our debt by 63.8%. And the short term (90 days) foreign debt is at about 23% of the total debt.

Per converse household borrowing is at 154% of disposable income (34% in 1991), while, by OECD standard, houses are overvalued by 29% and rent by 48%.

Effectively what can spark a recession is linked to my technical article yesterday – the steepening bond yield curve.

As Australian debt is dependent on foreigner and our banks access capital overseas – a more expensive capital overseas will produce an increase of interest rate in Australia (even “out of RBA cycle”).

As the Australian GDP is composed by 56% by consumer spending and the consumer is so much in debt you can easily see that this is the biggest issue by far in Australia (together with what is really happening in China).

So the US steepening of the curve and Federal Reserve behavior is paramount also for Australia.

And the Reserve Bank of Australia only “other” remaining weapon is…quantitative easing.

Interesting time ahead.