Nail This Chart to the Wall!

weeklyThe red line on Michael Oliver’s chart above is the line through which, if the S&P falls, he is predicting we will see massively lower prices. Those S&P numbers, which are based on his momentum/structural models, trend upward weekly by about 4 S&P points per week, as follows: Dec 18: 1941.5; Dec. 25: 1945.2; Jan 1: 1949; Jan 15: 1956; Jan 22: 1960; Jan 29: 1963.5. Michael’s technical approach is about as scientific as any technical approach I follow, which may be why I feel so comfortable with it. I strongly suggest you check out his work at www.OliverMSA.com.

IDW-2015-12-11Despite trillions of dollars of debt monetization, the global growth is at best “tepid.” I firmly believe real growth is probably already negative, although I don’t believe humankind has any business or ability to really measure it. Nor do I believe that rising prices equate to growth. You could have plummeting prices and still have growth if your purchasing power were rising faster than prices were falling. But when you combine massive unemployment and underemployment in the U.S. and elsewhere around the world, especially in the NATO countries, it suggests negative growth to me. Certainly that is what my IDW tells me. Overall prices are falling at the same time that debt is rising exponentially. That is why I believe we are already in a global depression that at some point will be as visible to everyone as Pinocchio’s protruding nose. Further evidence that we are in a depression are massive price declines for the items in my IDW that are directly related to economic activity. And now stocks in the biggest economy that produces the world’s goods—namely, Chinese stocks are plummeting. Now if, as it seems to me, we are on the verge of a collapse of equity market prices, the real carnage unfortunately lies ahead. What I am convinced of is that both the global economy and, by extension, the geopolitical world are spinning out of control. It is the most changeprecarious time I have seen in my 68 years on Earth. If you believe in God the Creator, right now is one of the most urgent times ever to pray for a lost humanity and indeed an American empire that is relentlessly seeking to rule the world in order to maintain its dying and unsustainable socialist/fascist lifestyle.

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.