Getting Ready for Major Plate Tectonic Shifts

The Dow Jones Industrial Average
dow
Through the use of economic half truths, massive market manipulation in the equity markets by the Plunge Protection Team, or the general stock market hyperinflation through endless quantitative easing, excess valuations in the U.S. equity markets have not been permitted to self correct. You will hear all manner of excuses for high stock prices based on manipulated earnings and artificially low interest rates, which of course are at the heart of a manipulated equity market. But sooner or later nature will overpower the political power of the bankers who own the Federal Reserve and hence own America. Michael Oliver’s very non-sensational but steady work has alerted his subscribers for months now that a major plate tectonic shift is underway. Dr. Robert McHugh agrees, but he sees something far more catastrophic lying ahead. He sees what is heading our way as not only a correction from the 2008-09 bull market but also a correction from the 1997 bull market and indeed a correction that goes back to the beginning of the Revolutionary War. We can only hope and pray Dr. McHugh is crazed and deranged (which I do not believe). But if you doubt the extremes of Dr. McHugh, then simply pay attention to one of the top technical analysts ever on Wall Street, namely, Louise Yamada, who told Tom Keene in no uncertain terms on Bloomberg last week that the bull market from 2008-09 is over.

30 Year U.S. Treasury Bond Price
USB
The U.S. debt market is not in the news every day the way the Dow, S&P, and NASDAQ markets are, but who can argue with the fact that it is far, far more important than the equity markets because it is massively larger than the equity markets in terms of its sheer size. Of course it is because this is the market from which our fraudulent monetary system is built with money being “born” by keystroke purchases of these phantom instruments. Consider the fact that the Treasury sells U.S. Treasuries, which are simple IOUs created by computer keystrokes that are backed by nothing other than U.S. military force, which enforces the petrodollar. By that I mean the post gold standard engineered by Rockefeller servant Henry Kissinger when he arranged with Saudi Arabia and other OPEC countries to demand payment of oil in dollars, thus ensuring there was a demand for what are otherwise intrinsically worthless dollars. As William Engdahl noted on my radio show last week, it is this forced acceptance of dollars that is at the heart of the growing conflicts around the world. And now with oil selling at only half of its former price, guess what that means for dollar demand? It is declining radically. Meanwhile, Putin’s Russia and China are being blamed for all that is wrong in the world. How steady can the U.S. dollar Treasury market be if it depends on war rather than intrinsic economic strength?

The Commodities Markets – CRB
CRB

You might argue that the chart above for commodities suggests the bottom is in. Indeed that is pretty much the belief of Michael Oliver. I hope and pray that view is right because if this support level breaks, we may well be looking at the kind of deflationary depression the likes of which Robert Prechter and Ian Gordon have been talking about for years. That kind of a decline in economic activity would represent a depression that would be far greater than anything our parents and grandparents witnessed in the 1930s. Actually, you can add Dr. McHugh to this mix as well, given his view that the equity markets and economy will correct back to the late 1700s. McHugh has now joined Prechter and Gordon in suggesting we may see a Dow 1,000 over the next five to seven years as the major megaphone or jaws of death formation displayed on the following chart plays out. What we do know from the chart above is that commodities, which represent the real economy as opposed to the make-believe equity markets, are at a crucial support level. If those levels are broken, it will be a “Katie bar the door” moment.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.