Monday, July 3, 2017

Bitcoin & Lightcoin Breakout Higher…

As predicted in my article “Bitcoin Breakout Coming”, published last Thursday, June 29th, I stated, “This pennant WILL resolve not later than about July the 5th…”


Overnight Lightcoin led the way with a definitive breakout, and is now approximately 20% higher than it was yesterday!

Note, too, that on June 29th I stated, “I expect that mathematically this ratio will close over the coming years to get closer still to that 4 to 1 ratio.  That means that I expect Litecoin to outperform Bitcoin in percentage gains from this point forward in the long run.”

Back on June 8th I also stated about Litecoin, “Litecoin is another cryptocurrency designed to be “silver” compared to Bitcoin’s “gold.”  There will only be 84 million Litecoins ever mined, exactly 4 times the amount of Bitcoins.  However, Litecoins are currently trading for roughly 1/100th the price of Bitcoin, I would expect the math to eventually catch up as more people become aware of Litecoin’s also limited supply.”

Today that ratio has already closed to 54.7.  I will be watching this ratio to make sure that it doesn’t get ahead of itself.  This is a great example where paying attention to simple math pays off, and actually reveals insight into the future.

On Litecoin’s breakout at $39, I am now targeting this leg up to reach $67 before the next major round of consolidation, this is IF the length of the mast is equal.  Also beware that retests of the breakout are possible.


Bitcoin has also broken out of its pennant formation, although not as definitively:

I expect that if this breakout holds from here, the target should be in the $4,300 range over the next couple of months.


Ethereum, however, is still within its flag and has not yet broken out in either direction.  Although Ethereum has performed well over the past couple months, its quantity is not strictly limited as are Bitcoin and Litecoin.  I would still acquire on a break out of this formation higher.


In nature, all waves require a DIFFERENTIAL of some sort to exist.  That differential can be temperature, pressure.  These differentials are the ROOT OF ALL ENERGY.

If the universe was 100% homogeneous, there would be no energy, no matter, no us.

Once a differential exists, then energy potential exists.  This potential leads to movement as everything moves from high pressure to low.  This is the genesis of motion.  Motion is a requirement of matter!

Once you begin to think in terms of differentials, then you will see energy potential, and you will then understand the movement of waves resulting from those differentials.  Those waves rule everything, including our man-made constructs that we call “markets.”

The differential most noticeable to me at this moment is the fact that our bond market interest rates are moving strongly higher.  This creates an energy differential with nations whose rates have not moved higher in unison.  As that occurs, our higher rates attracts money, and that is a wave that can, and has, moved our already overvalued markets higher still.

Math is a descriptor of these differentials – embrace the math, it provides a window to the future!

Thursday, June 29, 2017

Bitcoin Breakout Coming…

Since the FED created their QE game of charades, the “markets” are no longer real – none of them.  Unlimited quantities of “money” are thrown at them from all central banks around the globe.  Heck they even have Janet Yellen convinced that up is the only direction the markets will ever see again in her lifetime!

This boundless supply of limitless “money” has now hit the mathematical fixed quantity of Bitcoin and Litecoin – my two favorites because of their fixed quantity.  I liken the unlimited supply of “dollars,” “yen,” “Euros,” “Yuan,” and all other “currencies” around the world, to an F-4 Phantom Jet Fighter going well over 500 miles per hour.  Well, that F-4 Phantom just hit the Rock of Gibraltar – the unmovable limited quantity of Bitcoin.

The Rock of Gibraltar is not in a bubble, it is the F-4 traveling at near the speed of sound that is the bubble!  This will become evident as the collision between the two plays out over the coming years.

Keep in mind that we're not just talking dollars, the Yuan is the largest player in this space by far - note that they don't call it the Renminbi for nothing! Literally translated it means “The People’s Money” in Chinese.


The market for Bitcoin was previously so small, but growing so fast, that applying technical analysis (TA) to it was pretty much pointless.  But over the past few months I have been noticing that reliable patterns like Head & Shoulders were playing out according to known TA rules.

I keep money in Bitcoin, Litecoin, and Ethereum, not to speculate, but as a store of value.  But that doesn’t mean I’m not paying attention to the TA formations.

I see a reliable pattern playing out now – it’s called a pennant.  This pennant WILL resolve not later than about July the 5th (remember that Bitcoin trades year round without “after hours markets” or holidays), and it is a big one!

The run into a pennant is called the mast.  This formation resembles a flag, which is similar to a pennant, but shaped as a rectangle, not a triangle.  Both the flag and the pennant are consolidation sideways moves.  The rule for both is that the entry direction, in this case up, will be the same as the exit direction.  And that the length of the mast will be equal into and out of the pennant or flag.

I believe this mast began at about the $1,200 level and ended at $3,000, thus this pattern is worth about $1,800 on a break higher.  So in this case, IF THIS FORMATION IS VALID AND BREAKS HIGHER, then I will be looking for Bitcoin to proceed to roughly the $4,300 level, and that it will take approximately two months for it to get there (a proportional amount of time).

This is interesting to me because the bond market has just made a significant move higher, while stocks have cast off a six Hindenburg Omen cluster (showing internal weakness), one of the necessary ingredients for a stock market crash, and at minimum higher odds of a significant decline.

Bitcoin did not exist during the last financial crisis, so we do not know how it will behave in the next.  My guess is that speculators who hold Bitcoin may need to initially sell them to raise dollars to pay other “investment” losses.  But overall I would expect those who hold dollars to want to move those dollars to safe haven.  Where is it safe?  Bitcoin.  Why?  Because it’s secure and it’s a store of value because it has a fixed quantity, unlike tulips or dollars.


A word about interest rates.  I think most analysts have this wrong…  Mathematically our macro economy is saturated with debt.  Mathematically adding more debt to a saturated system does not promote real growth, it actually destroys growth because new “money” that is created has to go to service the debt and to pay interest to bankers who made the “money” from thin air.

As we raise rates I expect that the differential in rates between the U.S. and the rest of the world INITIALLY will cause dollars to repatriate thus INITIALLY fueling the “asset” bubbles higher.  This will, and may have already, run out of steam.  Once dollars stop repatriating, then the expected slowdown will occur again caused by the math associated from higher interest burden on an already saturated environment.  Yes, you read that right.  Creating more debt OR raising interest rates BOTH will create a negative math situation beyond the short run.

For those new to the diminishing returns of debt phenomena, here is what I call the Chart of the Century up to the phase transition that occurred in 2009 - 2010:

QE toyed with the numbers and produced this more current chart:

Bitcoin is limited in quantity to 21 million – ever.  Litecoin is limited to four times that amount, or 84 million.  Thus once all coins are in circulation, the ratio should be 4 to 1.  In other words, if Bitcoin is $4,000 per coin, then Litecoin theoretically would be worth about $1,000 if that ratio holds.

But only two weeks ago that ratio was close to 100 to 1.  Today Bitcoin is at about $2,560, and Litecoin is at $41.13, or a ratio of 62.24 to 1.  I expect that mathematically this ratio will close over the coming years to get closer still to that 4 to 1 ratio.  That means that I expect Litecoin to outperform Bitcoin in percentage gains from this point forward in the long run.  For example, over the past month Bitcoin has risen 16.81%, but Litecoin has risen 68.92%.

Below is a chart showing a correlating Litecoin flag formation to Bitcoin’s pennant:

Litecoin’s mast appears to me to be about $28 long!  If it breaks from say $40, then I would expect a target of $68.  That would be a 70% rise which is very comparable to Bitcoin’s target – again, IF it breaks and behaves as TA would expect.


Ethereum is NOT limited in supply, unlike Bitcoin and Litecoin.  For this reason it may or may not be a weaker store of value.  But it does have better transactional value, a trait that may carry it very far indeed as several major banks and even countries are looking to incorporate Ethereum onto a transactional basis.

It’s performance over the past two months has been astonishing, but it has stumbled recently.  I own Ethereum, but wish it had both transactional athleticism and a fixed maximum quantity.

I see the same flag pattern playing out in Ethereum now:

The mast on Ethereum is proportionally longer than either Bitcoin or Litecoin – I measure it to be $280 long!  So if it breaks from $290, then that mast length
would be targeting $570, a 96% rise!


I think these three cryptocurrencies will all head higher as the math of unlimited quantity smashes against fixed and truly secure quantity.

We will see if these formations play out.  The track record is very short, so I will not be that surprised if they don’t.  I would not take action until a clear break is made up and out of those formations.  If they break below the formations, I will personally do nothing but add to my positions as they reach key support levels.

Stress Test Charades!

Excuse me, but I can’t stop laughing at the latest round of central banker charades!

Central banker charades, of course, were created in the year 1913, but they have been improving, and improving the game ever since.  So much so, that today’s central banker charades are the funniest version yet – I don’t see how anyone can stop laughing!

Here are a couple of Janet Yellen quotes from her game of charades:
"I want to be completely clear that I strongly oppose ‘Audit the Fed.’"
And my favorite for a hysterical laugh:
 "I Don't Believe We Will See Another Crisis In Our Lifetime."
Pick me up off the floor, my stomach hurts!  Of course her puppet masters already have the next crisis in motion.  LOL, this is fun!

Stress Test Charades were created circa 2009 following the initial panic stage created by the central banks themselves.  People in general were losing confidence in the con, so the charade leaders decided to prove that they were not insolvent, that they had real assets!

Of course they have assets!  We all know that they own computers and with only a little bit of electricity combined with only half a wit, they are able to generate assets at will!  Just look at their own balance sheet charade!  Nearly $5 trillion worth of charades that was used to provide “assets” to the banks at no interest so that they could speculate/derivatize/manipulate every former “free market” on the planet!

Of course this charade was so popular in the United States that central bankers around the globe now love to play Stress Test Charades too!

This came after “Indebt Poor Nations Charades” – a very fun and entertaining game where central bankers power up their computers to create unlimited quantities of “money” from nothing, and “lend” it to poor countries who then tax the productive efforts of the poorest of the poor, convert said taxes into gold, and repay said charade “loans” with the gold as spelled out in the central banker charade rule book!  What fun!

This all brings me to my newest personal favorite game – Self Finances Stress Test Charades!

Wait… I’m giving my own finances the self stress test…

No really... carry the one, add in accounts receivables, subtract accounts payable, turn on money printing computer, change the rules to the game...

YES!!  I PASS!  Congratulations to me!  Anyone want to buy stock in Economic Edge Blog, Inc.?

Thursday, June 8, 2017

The Math of Bitcoin and Why it is NOT yet in a Bubble!

I have read many articles lately claiming that Bitcoin is in a bubble.  Some proclaim it similar to the famous Great Tulip bubble of 1637… but that comparison is only for those who do not understand the significance of what is happening currently with blockchain technology.  If you are new to Bitcoin and blockchain technology, I would suggest that it’s highly important for you to take the time to research the basics of how it works and why it’s different – simply Google “how does Bitcoin work.”

The main argument of those who proclaim it to be in a bubble is that the people buying it at these prices are not buying it for its original purpose – which they believe to be enabling transactions.  Yes, it is being used for transactions, much more than 100,000 businesses now take Bitcoin for transactions.  But instead naysayers believe that others are buying it as an “investment” and thus will surely be burned.

For me, and I believe most who understand what is happening, we are not buying it for either of those reasons.  We own it because we see it acting as a “store of value,” where nothing else priced in dollars is.  With interest rates artificially low (manipulated by central banks), a normal person cannot earn even near the pace of actual inflation with any type of traditional savings account.  Bonds are artificially in a bubble, stocks are artificially in a bubble, real estate is in yet another bubble, everywhere one who understands bubble dynamics looks they see a bubble (but not Bitcoin, people are trading in their worth less and less dollars for them).  The bubble is the dollar – the world’s “reserve” and “petro” dollar is being drowned by central banks all over the globe, not just our own “FED.”

And thus there is no store of value to be found.  This is a terribly ugly situation for people who believe in hard work and saving to get ahead; to someday retire comfortably.  Retirees on fixed incomes simply cannot, and will not be able to keep up as the impossible math of dollar debt continues on its vertical ascent.

We would love to love gold and silver, but those too, are manipulated by central banks who own the majority of it.  They manipulate and derivative the markets to artificially keep devaluation of the dollar hidden.

Control of the dollar is centralized with the banks, that’s why we refer to them as “central” banks.  All the power and control resides with them; as private individuals were wrongly, and illegally, given the power to “coin” money with the Federal Reserve Act of 1913.

What makes Bitcoin a better store of value?
1.  It is decentralized.  This is huge!  It means that it is not under the control of central banks, and thus cannot be manipulated directly by them.  This is THE MOST IMPORTANT aspect, it is a game changer as it changes the WHO is behind it – something that gold and silver do not do because central banks have printed “money” to buy the majority of it. 
Caution – Central banks may be able to indirectly manipulate blockchain currencies in the future if they create ETFs and other derivatives based upon them.  This, however, will not change the underlying store of value, and when it happens I would encourage you not to own the derivative, but to instead buy Bitcoin directly, again because it’s not in control of the central banks, is decentralized versus their centralized everything which makes them vulnerable.  Yes - Central Banks can print dollars and use them to buy Bitcoin, but that will only drive the price up and cause others to enter as well.  In the end they cannot manipulate what they don't control.
Even if central banks were to “ban” exchanges in one country, all one will have to do is join an exchange overseas.  This has the central banks trumped, it cannot be stopped.
To better understand the power of decentralization, please take the time to watch the video at the end of this post, or (click on this link).
2.  Unlike tulips, dollars, or even precious metals, Bitcoin is strictly limited in its supply.  This is where the math comes in.  Bitcoin was founded in 2008 and there will ultimately be only 21 million Bitcoin ever mined.  Today we are approaching the 80% mark, the remaining 20% will take years to mine, and the “mining” gets more difficult and slow as we go. 

This is a hard feature built into the coding.  It’s what makes Bitcoin a store of value – the more money that comes in, the more each Bitcoin is worth.  As I type, that is $2,774.00 per Bitcoin according to Coinbase where you can go to open an account, much like a brokerage account (there are currently 7.3 million Coinbase users).  Of course you can buy Bitcoin in any increment, you don’t have to buy them in whole units.

People all over the world can buy, own, and transact in Bitcoin.  There are now 7.3 billion people on the planet, so if all 21 million Bitcoin were distributed evenly to every person on the planet, each person would have only .0028767 of one bitcoin!

Another way of stating that math is that only 1 person out of every 347.6 people can possibly ever own a whole Bitcoin.

Today the market cap of Bitcoin is $45.17 Billion.  The more money that comes in, the higher the market cap, the higher the price of Bitcoin.

Many analysts start to compare Bitcoin’s market cap with that of large companies like Apple, whose current market cap is 18 times that of Bitcoin’s at $810 Billion.

But here’s the deal.  Bitcoin is not a company, it is a form of money.  Unlike dollars, there will not be an endless supply.  In fact, if you took the entire M2 money supply of the United States, currently $13.5 trillion, and put it all into Bitcoin instead, then each Bitcoin would be worth $642,857.  But Bitcoin is not just traded in dollars – it’s traded in every currency in the world.  And right now global M2 money supply is calculated as roughly $72 trillion, or $3.4 million per Bitcoin.

It’s true that other blockchain currencies are springing up like daisies, or tulips.  But their market caps combined are just now rivaling that of Bitcoin’s.  So, yes, they will be “diluting” bitcoin’s math.  Not all crypto currencies have hard limits to their supply, and that will mean that they will always be worth less.  Right now Ethereum is in second place with a market cap of about $24 billion compared to Bitcoin’s $45 billion.  Litecoin is another cryptocurrency designed to be “silver” compared to Bitcoin’s “gold.”  There will only be 84 million Litecoins ever mined, exactly 4 times the amount of Bitcoins.  However, Litecoins are currently trading for roughly 1/100th the price of Bitcoin, I would expect the math to eventually catch up as more people become aware of Litecoin’s also limited supply.

3.  Bitcoin is a better store of value because it is secure.  Decentralization and encryption make it secure.  It can be stored in electronic cyber “vaults” where you keep a hard copy of the encryption cypher.  This means that your exchange can be hacked, your computer hacked, but your bitcoin don’t actually reside in either!  They reside on someone else’s computer somewhere – and only you have the code to get to it.  Thus they cannot be confiscated by a government, a banker, or a hacker.

I liken this to the pursuit of freedom versus the pursuit of security.  When you pursue freedom, you get security at very little cost.  That’s what decentralization does.  Bitcoin is the pursuit of freedom – whereas centralized systems, such as central banking, or even socialism, are the pursuit of security and the abandonment of freedom. 

Pursue freedom!

4.  Bitcoin transactions are stored on a public ledger, all confirmed transactions are included in the blockchain.  Again, decentralized bookkeeping is less vulnerable and more secure than centralized legers.  This is where Ethereum, another blockchain currency, shines.  Ethereum is built upon an encrypted ledger and can be used for many purposes, not just as a currency. 

One use is that these encrypted ledgers will enable safe and secure online voting one day soon.

Someday Bitcoin will, in fact, be in a bubble.  But that day is not now, not even close.  The great thing about all cryptocurrencies is that they can and do exist alongside of whatever “money” we use for our transactions.  They also exist alongside of gold/silver, and may in fact be drawing money that otherwise would be seeking a store of value there.

So I say, let competition reign!  I will use dollars for transactions because I have to (for now), but I will use cryptocurrencies, gold, and silver to park my dollars so that the central banks cannot destroy their value.  And that in a nutshell is why Bitcoin is NOT in a bubble, and won’t be for quite some time.

That said, do expect many sharp pullbacks along the way.  Remember that NOTHING moves in a straight line, EVERYTHING moves in waves.  You need to pullback to fuel the next push higher – this is true with all waves.   The chart shape is definitely showing parabolic growth, but I expect that when looked at across many more years this will simply be a part of building a base.

Bitcoin Priced in U.S. Dollars - 6/8/2017
So how will we know that a true bubble has formed?  For me I know that cryptocurrencies are the future and that they will trade alongside sovereign currencies and will eventually replace them.  I will NOT own any cryptocurrency created or “managed” by a bank.  Until the market cap of Bitcoin rivals that of the United States, I will not be convinced that growth has stalled.  There are, of course, other signs we can look for.


The late Hyman Minsky, Ph.D., was a famous economist who taught for Washington University’s Economics department for more than 25 years prior to his death in 1996. He studied recurring instability of markets and developed the idea that there are seven stages in any economic bubble:
Stage One – Disturbance:
Every financial bubble begins with a disturbance. It could be the invention of a new technology, such as the Internet (Bitcoin). It may be a shift in laws or economic policy. The creation of ERISA or unexpected reductions of interest rates are examples. No matter what the cause, the outlook changes for one sector of the economy.
Stage Two – Expansion/Prices Start to Increase:
Following the disturbance, prices in that sector start to rise. Initially, the increase is barely noticed. Usually, these higher prices reflect some underlying improvement in fundamentals. As the price increases gain momentum, more people start to notice.
Stage Three – Euphoria/Easy Credit:
Increasing prices do not, by themselves, create a bubble. Every financial bubble needs fuel; cheap and easy credit is, in most cases, that fuel (central banks creating it still like mad). Without it, there can’t be speculation. Without it, the consequences of the disturbance die down and the sector returns to a normal state within the bounds of “historical” ratios or measurements. When a bubble starts, that sector is inundated by outsiders; people who normally would not be there (not yet with Bitcoin). Without cheap and easy credit, the outsiders can’t participate.
The rise in cheap and easy credit is often associated with financial innovation. Many times, a new way of financing is developed that does not reflect the risk involved. In 1929, stock prices were propelled into the stratosphere with the ability to trade via a margin account. Housing prices today skyrocketed as interest-only, variable rate, and reverse amortization mortgages emerged as a viable means for financing overpriced real estate purchases. The latest financing strategy is 40, or even 50 year mortgages.
Stage Four – Over-trading/Prices Reach a Peak:
As the effects of cheap and easy credit digs deeper, the market begins to accelerate. Overtrading lifts up volumes and spot shortages emerge. Prices start to zoom, and easy profits are made. This brings in more outsiders, and prices run out of control. This is the point that amateurs, the foolish, the greedy, and the desperate enter the market. Just as a fire is fed by more fuel, a financial bubble needs cheap and easy credit and more outsiders.
(I believe stage 4 is still in the distant future for Bitcoin)
Stage Five – Market Reversal/Insider Profit Taking:
Some wise voices will stand up and say that the bubble can no longer continue. They argue that long run fundamentals, the ratios and measurements, defy sound economic practices. In the bubble, these arguments disappear within one over-riding fact – the price is still rising. The voices of the wise are ignored by the greedy who justify the now insane prices with the euphoric claim that the world has fundamentally changed and this new world means higher prices. Then along comes the cruelest lie of them all, “There will most likely be a ‘soft’ landing!”

This stage can be cruel, as the very people who shouldn’t be buying are. They are the ones who will be hurt the most. The true professionals have found their ‘greater fool’ and are well on their way to the next ‘hot’ sector.  Those who did not enter the market are caught in a dilemma. They know that they have missed the beginning of the bubble. They are bombarded daily with stories of easy riches and friends who are amassing great wealth. The strong will not enter at stage five and reconcile themselves to the missed opportunity. The ‘fool’ may even realize that prices can’t keep rising forever… however, they just can’t act on their knowledge. Everything appears safe as long as they quit at least one day before the bubble bursts. The weak provide the final fuel for the fire and eventually get burned late in stage six or seven.

Stage Six – Financial Crisis/Panic:
A bubble requires many people who believe in a bright future, and so long as the euphoria continues, the bubble is sustained. Just as the euphoria takes hold of the outsiders, the insiders remember what’s real. They lose their faith and begin to sneak out the exit. They understand their segment, and they recognize that it has all gone too far. The savvy are long gone, while those who understand the possible outcome begin to slowly cash out. Typically, the insiders try to sneak away unnoticed, and sometimes they get away without notice. Whether the outsiders see the insiders leave or not, insider profit taking signals the beginning of the end.
(This is where I believe Stocks, Bonds, Real Estate, Auto prices, Student loans, etc. are today; although it is wise to remember that the best performing markets in terms of percentage rise are the ones where hyperinflation is occurring - Zimbabwe, Nigeria, and today Venezuela.  An interesting thought is that we may see cryptocurrencies appear to be inflating while real assets move to another round of deflation - dollars seek safety/store of value)
Stage seven – Revulsion/Lender of Last Resort:
Sometimes, panic of the insiders infects the outsiders. Other times, it is the end of cheap and easy credit or some unanticipated piece of news. But whatever it is, euphoria is replaced with revulsion. The building is on fire and everyone starts to run for the door. Outsiders start to sell, but there are no buyers. Panic sets in, prices start to tumble downwards, credit dries up, and losses start to accumulate.
(When this happens to stocks, I expect Bitcoin and other cryptos to benefit).

In summary, it is the centrally manufactured dollar that is in a bubble because it is produced in unlimited quantity.  People who EARN dollars want to keep the value that they earned, and are thus rightly seeking freedom by buying Bitcoin and other cryptocurrencies.  Most importantly Bitcoin changes out the WHO is behind money.  It is secure because it is decentralized, and because politicians and private bankers cannot make an unlimited supply.

Monday, May 15, 2017

NSA Ransomware - Stupid is as Stupid Does...

The latest episode of Deep State stupidity is shining bright.  It's a perfect example of how the pursuit of security actually makes you less secure!

The NSA's spyware is now holding hundreds of thousands of computers the world over hostage.  The captured media at first didn't cover this - instead they continue to pursue Julian Assange, who warned us, and they use "The Russians are coming" fake narrative to cripple the Executive Branch because he is the one the people elected to drain the swamp.  The people want the Deep State drained!

The attacks of 911 were used as an excuse to create new "security" laws that deprive people of their freedoms; it was used to massively increase the size and depth of the Deep State, including the creation of "Homeland Security;" it was used to invade countries that didn't play along with our Oligarch's central banking scam; it was used to justify spying on the world, including our own people; and it was used to turn Americans into the greatest debtors the world has ever seen.

Does that make us more secure?  I think not.  I think quite the opposite.

In fact, bankrupting one's self in the name of security is plain old stupid.  So is spying on foreign diplomats and then not expecting that to be the standard of the world.

Now we have spyware that was created by the NSA wreaking havoc all over the globe.  Imagine - we spent trillions to spy on the world and now our own spy tools, that we paid for, are being turned against us.  Our own agencies work tirelessly to find vulnerabilities to exploit.  Instead of reporting and fixing the weaknesses, our Deep State losses control which is exactly the karma we should expect.

Freedom and security are inseparable.  Pursue freedom and you will have security at very little cost.  Pursue security and you will have neither!

Americans and the world need to wake up to how we're being manipulated.  Here's the chain of events:

- The primary check and balance of the Constitution was usurped by central bankers who bought off Congress and got the illegal Federal Reserve Act passed in the year 1913.

- The central bankers, our Oligarch masters, then created money from nothing and used it to buy for themselves all three branches of our government.  They also created wars and used the "solutions" to those wars to create global control mechanisms in the U.N., IMF, World Bank, and BIS.  They skim productivity and assets from the entire world in this fashion.  All politicians and judges work for them, they cannot get elected without their "money."

- The Oligarchs own the military industrial complex, the Deep State agencies, the media, pharma, giant "food" companies, our universities, everything... and use them to control us.

In the old days when they weren't getting their way, they would simply crash the markets until they got what they wanted.

Today they simply use the tools at their disposal to spin narratives to cover their covert manipulations.

Total capture.

As the world wakes up and realizes how their freedom has been captured, then it will once again be up to the people to claim the freedom that has been lost.  That day is approaching faster than anyone imagines.

The very same Oligarchs who run the world now will use the coming upheaval to simply create another system of control with them in charge.  For humanity's sake, we must not allow that to happen again.  We must install a proper rule-of-law, one that promotes freedom knowing that true security always follows freedom.

Our pursuit of security is costing us dear.  Nothing, however, will be fixed until we reclaim our Constitutional duty to have our representatives "coin money and regulate the value thereof."  That is the root of our sovereignty, and the key to our freedom that we ceded in the year 1913.

Thursday, May 11, 2017

What is Socialism?

To understand socialism, we must first understand a key fundamental and indisputable principal -  freedom and security are inextricably interconnected and cannot be separated.

When one pursues security, they wind up with neither freedom nor security.  But when one pursues freedom, security follows at very little cost.

Socialism is the pursuit of security and the abandonment of freedom.  When you pursue security you will wind up with neither security nor freedom!

The notion of entitlement is bankrupt and will forever be so.  This is because one person’s entitlement is always someone else’s burden – the sole exception is your right to exist, be blissful, and to attempt to influence the future.

The burden of entitlement is why socialism, in any of its evil forms, has always eventually failed.  It is against human nature and is an improper rule-of-law to take from those who are productive and then give it to those who are not.  It destroys the incentive to produce, so that no one eventually does.

This is not open to debate, the failure of socialism is well documented.  I have witnessed it with my own eyes and have shared just one of my many experiences with you here - Adventure into the Soviet Union at the Height of the Cold War.  That section begins about half way through the article, so please scroll down to it on that page.

Like the road to hell, most socialists and social structures were founded on good intentions.  But the result is evil and is responsible for destroying millions of lives, countless opportunities, and for slowing the progression of humanity.

Socialism is also a hidden form of dictatorship or monarchy - they are all about power and control by an extremely narrow segment of the population.  And isn't that exactly what is happening with the consolidation of wealth in the current system in the United States, in Europe, and wherever a central bank, IMF, or World Bank banker might be found?  

Yes, creeping socialism hidden under the Trojan Horse ideology of "Globalism" is nothing but a ruse to consolidate power by a few.  Those few use our "good intentions" to manipulate us to support them, to even willingly surrender our freedom. 

"We will make you secure," they say.  "Allow us to spy on the world."  

They slip their false narratives past us as if we we're already in agreement - take the notion that it's okay for us to spy on foreign diplomats... this sick narrative is repeated over and over by "news" actors in the mainstream media, a favorite tool of the oligarchs, the dissemination branch of the Deep State.

This is quite perverse and sick in many ways - and is the very reason I am writing "Definitive Freedom."

Someday in the very distant future the world will be ready to drop borders, but it will not be appropriate until and unless it is built upon a proper rule-of-law.

The production of money is the tool through which power and control are exercised.  This is where the "Golden Rule" saying comes from - "Those who have the gold make the rules."

It's not about gold, per se, it is about power and control.  That is why what's most important is not what money is, or what money is made of, but what's most important is WHO is in control of its production and WHO it is that regulates the value thereof by regulating the quantity.

A proper money system is one where money is spent into existence by our government, not lent into existence by private individuals who skim interest off productive people.  It is a completely ludicrous notion that our nation borrow money, and that we have put private individuals in charge of creating money and of regulating the quantity.  This action has removed the people, us, from control of our government and from many other aspects of our lives.

Wednesday, May 10, 2017

Comey Firing, Russia, and the Deep State...

In this article I am going to discuss my personal opinions and experiences - this is an opinion piece, one that I believe to be grounded in reality, you are free to believe whatever you like as long as your beliefs do not pave my road to hell with your "good intentions."

The Trump/Russia narrative is a complete fabrication of the Deep State.  Who is the Deep State?  They are the puppets of the oligarchs who were incorrectly and illegally given the power to create money from nothing.  That power is rooted in the illegal Federal Reserve Act of 1913.

Why is it illegal?  Because the Constitution properly says in Article 1, Section 8; "The Congress shall have Power To... Coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures."

There is no place in the Constitution that allows or makes it legal for Congress or the Executive Branch to give or to delegate that power to private individuals.  This is THE MOST IMPORTANT CHECK AND BALANCE IN THE CONSTITUTION.  Failing to protect it compromised ALL OTHER PROTECTIONS.

This is THE ROOT of our corruption.  Private individuals once given the ability to print money from nothing use that power to buy up our industry, our property, to get laws produced that benefit them and disadvantage the majority.  They use that "money" to get their puppet politicians and judges elected, thus capturing all three branches of the People's government.

Can anyone really still wonder why the world is seeing the largest wealth disparity in history?

*Note about this video - While an excellent presentation of reality, their representation of Socialism is NOT CORRECT.  Socialism would result in even distribution (except by the ruling elite), but the total wealth would be only a FRACTION of the wealth today.

Not only is the government captured, but all our markets are captured as well.  Our economic data has been captured and is false.

Our MASSIVE intelligence agencies work for the oligarchs.  They do not work on behalf of the people.  This is the Deep State.  They are not elected, they are appointed by our government puppets.  The intelligence agencies are only effective at creating narratives - that is all they do, 100% of their effort is narrative creation.  We, The People, only need about 10% of this mass to ensure our defense, and thus the firing of James Comey is not only overdue, but it is just the very tip of what needs to be accomplished.  Yes, "Homeland Security" should be dismantled entirely, the FBI, NSA, CIA and the dozens of other hidden agencies should all be consolidated into something that is 10% of its current size.

It's important to remember the context of WWI and WWII.  The oligarchs created WWI on the heals of the passage of the Federal Reserve Act, the IRS and the notion that our country must permanently collect taxes, and that we must finance budget deficits through the use of Treasury Bonds and Notes - thus having private bankers issue money as a debt to skim interest off the productive efforts of the people.

They then used WWII to foist the U.N., and the Bretton Woods Accord on the globe that created the IMF, the World Bank, and the B.I.S..  This set up the unbelievable system whereby they create "money" from nothing and lend it to countries to "stabilize" them.  Their charters required repayment in gold, making the IMF the world's third largest holder of gold.  No citizen on the entire globe got to vote for this system, it was simply foisted upon us as a "solution" to end the war that they created.

Tested, tried, and true, this formula is repeated over and over, changing the WHO it is that produces our money never changes.

The Deep State creates false narratives and false flag events in order to justify military action and regime change against any country that is not participating in their debt as money scam.  Just look at recent conflicts - Afghanistan, Syria, Libya, and now North Korea.  Our "beef" is always with countries that don't participate in the oligarchs charade.  And that brings us to China and Russia, neither of who are willing participants.

Turning to the Russians, they are not playing along with the IMF or World Bank, and thus the Deep State (tools of the oligarchs) is trying to make them into an enemy.  They are not our enemy, and in reality never have been.

Going all the way back to the American Revolution - our fight with the British for independence - it was the Russians who stepped in to diplomatically support our independence from the British empire.  Look it up.  We were isolated, they were our nearly lone allies.

Then in both WWI and WWII the Russians were again our allies, fighting and dying alongside the United States.  Socialists and communists they are, but they were not our enemy until the Deep State began a totally false "Cold War" against them in order to prevent their expansion following WWII so that the oligarchs wouldn't loose the global territory they gained with the ridiculous Bretton Woods Accord.

The Deep State narrative during the Cold War was that the Soviet Union was world power number 2, their awesome military was to be feared and must be stopped.  This narrative justified the spending of trillions to support the oligarch owned military industrial complex.  This spending became the debt of the American people who now continue to pay interest in the form of taxes to these evil private individuals.

I was in the U.S. Air Force and was one of the first to fly into the Soviet Union at the height of the Cold War.  The Deep State narrative was instantly laid bare by the reality that I encountered there.  The following passage written about that experience is from my new book "Definitive Freedom:"

Adventure into the Soviet Union at the Height of the Cold War

In 1987 the United States and what was then the Soviet Union entered into the INF Treaty (Intermediate-Range Nuclear Forces Treaty).  A part of this treaty was the mutual inspection of one another’s medium range nuclear arsenal.

I was called to pilot a C-141 into the Soviet Union carrying American INF Treaty nuclear weapons inspectors.  When we landed the inspectors were to give the Russians a slip of paper with a destination written on it.  The Russians then had just 45 minutes to then take off with the inspectors to whatever destination was written on that paper in order to carry out the inspection of Russia’s nukes.

We launched our INF missions from Yokota AB, Japan, flew across the Sea of Japan, across the entirety of Siberia north of Mongolia, down the length of Lake Baikal, the world’s largest fresh water lake, and landed at Ulan Ude in far western Siberia.  We were among the first American military to set foot in that region in decades.

Once the treaty inspectors were safely underway we received the grand tour of Ulan Ude from the city’s mayor.  People we met in town could not believe we were American military, thinking we were pulling one over on them, they would state, “No, no, you must be eastern European!”

I flew this mission four times total.  During each trip we would spend the night and fly out the next day.  For hours I flew over the vastness of Siberia where natural resources are still unlimited and where wildfires raged yet no one cared as there was no one for thousands of miles.
View from C-141 over Siberia, 1987.

View of southern Lake Baikal on descent into Ulan Ude, 1987
Me (second from left) and my flightcrew in Ulan Ude, 1987

What I saw in the Soviet Union was not the fearsome enemy our own propaganda described.  Instead what I saw was a sorry and dilapidated military.  In town, everywhere I went I saw drunkards in the bushes drinking their vodka.  Inside every shop, every agency, everywhere… ‘workers’ did not bother to stand or ask if they could help you.

Open Market Ulan Ude 1987.
Telephone Booth, 1987 Russia.

There was NO work ethic whatsoever.  This was in your face, startling different from the rest of the world.  Even third-world non-socialist countries have self-interested eager people looking to better their way of life.

Not here.

There were beautifully built parks along the river with many streetlamps, yet only a few actually worked as no one bothered to change the bulbs or to fix broken glass.  In the open markets where flies covered open meats, you had a choice of shoes, coats, pants, hat, baby carriages, etcetera… your choice was black, brown, or black.  In fact it’s hard to remember much color, today my memory of this experience is unusually black and white.  No electronics, toys still made of pot metal, no plastics.
Open Market Ulan Ude, 1987.
Everyone had healthcare… horrid healthcare – teeth pulled or made to be solid gold with no aesthetic applied to the work at all.  Yet ‘healthcare’ they all had, “From each according to his ability, to each according to his needs.”
Russian Man, Ulan Ude, 1987.  When he smiled,
he revealed a solid gold arch of teeth.

It was literally a time warp, like walking into 1930.  That’s what socialism and communism brought to the people of the Soviet Union.  Yes, they had nuclear weapons, but their best electronics were driven by tubes.  Their forces were absolutely no match to the West’s.  Their socialist rule-of-law was broken, and still is, but today they are trying to embrace parts of a western economy (which I won’t call capitalism, because it’s not).
Russian boys and their bicycle.
All Toys were pot metal.

As a sidebar, many people in the west still holdover the cold war mentality that Russia is our enemy to be feared.  But the truth is that we should not forget that they were our allies during both WWI and WWII, and that it was the Russians who provided much needed support for America as we fought our war of Independence against Great Britain (look this up if you are not aware).  Because most people in the west are not experienced with Russia it is easy for fake narrative creators like certain politicians and the CIA to manipulate our minds into fearing that unknown.  Fool me one, shame on you.  Personally, I won’t be fooled again.

Today many still vilify Russia while those same people forget that it was the Germans and the Japanese who were NOT on America’s side, and thus on the side of a free and proper rule-of-law during both world wars.  Later, we’ll talk about their level of aggression and how an improper rule-of-law led to impossible math in both those conflicts!

In my travels I have been in many socialist, communist, and (mostly corrupted) capitalistic societies.  I tell every young person who will listen my experience of how socialism destroys the work ethic and thus jeopardizes the progress of such a society.  But it’s worse than that, it’s actually a very evil ideology.  It may be born of good intentions, but history has shown that those false ideologies are the perfect pavement of the road that leads to hell.  Many millions of lives lost, millions more impoverished, a dreadful setback to humanity.  One that if it were to be applied worldwide would jeopardize, I believe, our species odds of long-term survival.

This is why I dread seeing so much creeping socialism today.  It’s rampant in Europe, and even in America we have politicians who are openly socialists.  Have we not already learned that lesson?  Repeatedly?  Centralized anything decreases competition, decreases innovation, and stifles progression, and those are the good parts!

If you have not experienced the effects of socialism first-hand, then I would encourage you to research the effects throughout history.  Yes, no system today is perfect, but some are much less perfect than others.  Your understanding of what hasn’t worked will help lead us, and future generations, into establishing a proper societal rule-of-law.

* All photos were taken in 1987 with 35mm film.  Note the stark contrast of 1987 Russia reality versus the Deep State narrative at the time.

Monday, May 8, 2017

Redefining "Fascism"

Large tech companies such as Google, Facebook, Twitter, Apple, and many others have to side with the false globalist central banker created and sponsored narratives, otherwise they would never receive the funding required to make them behemoths in the first place.  Once a company, person, or nation accepts such funding, they are captive and must play the game.  The game has become super ugly and very obvious to anyone paying attention to the censoring by these companies and the control exerted by de-sponsoring/de-funding any voice that is counter to the globalist narrative (I believe this is illegal and should be challenged, but the outcome of any such challenge itself will probably not be legal as judges have been captured as well).  Just pay attention now as you view videos on YouTube, you will see commercials at the beginning of anything that says "Macron Wins," but you will see nothing on any coverage of the election that does not paint the globalist candidate in a positive light or certainly anything that supports Le Pen.

Just look at the outcome of the election of France where a central banker who hides money in the Cayman Islands is not called out by the mainstream on his unethical and illegal transgressions, but the regime and media actively suppress and instead make illegal decimation of his illegal acts.  That's called capture, and he is called a puppet.  The people of France were spun that Macron represented freedom, but the reality is quite the opposite as they will discover over the coming years.

Gifts of socialists always result in the surrendering of your productivity and of your freedom.  Remember, pursue freedom and security follows at very little cost, but pursue security and you will wind up with neither.

Here is yet another way the cartel is controlling the narrative and the thinking of the global population:

Note how Bill Still, a truth teller, has resorted to selling and creating his own ads.  Many people who get their word out on YouTube are also resorting to donations, usually via sites like Patreon.  I support people who do so, and hope that you will too.

Tuesday, April 11, 2017

Blockchain and Us

Bitcoin and other crypto currencies are the future. The following video production hits on some of the importance, but skirts around the most important aspect of this technology. That is that it is democratizing.

It has the potential to remove the WHO that is currently behind debt as "money."  It is the WHO that is behind money that manipulates and controls the world.

Those private individuals wrongly given the authority to produce our money from nothing use that money to get THEIR politicians elected, to make THEIR own fake rule-of-law, to get THEIR judges appointed who back all of the above. And thus this highly inappropriate ability has corrupted all three branches of government and is THE ROOT CAUSE of nearly everything that we consider to be wrong with the world!

Freely competing Blockchain cryptocurrency that is not controlled by private banks or by governments is the great equalizer. This is one of the most profound changes in history, but we must be careful to keep competition in this space because it can and will be abused. Imagine starting your own cryptocurrency and depositing massive amounts into your own accounts… or creating cryptocurrency and ‘lending’ it out to others at interest… this is the danger that would make it the same as today’s very flawed system.

But the good news is that if a currency is found to be corrupted, then we can simply create a different system, again out of reach of those working to control us, rob our productive efforts, and who spy on us, create wars, etc.

What I’m saying is that this technology raises humanity’s consciousness and has the ability, if used wisely, to remove the power base from those who commit evil upon our planet. Seriously, it’s that important. I will talk about the right ways to do this moving forward and in my upcoming book.

Friday, March 17, 2017

Security Versus Freedom: Deep State War With Trump

There is a war raging behind the scenes that is leaking out into the public domain. Our Deep State has grown into an abomination of people who do not realize that their actions are hurting our nation far more than the "help" they think they provide. 

Here's a clue for anyone confused on right or wrong:

When one pursues security, they will wind up with neither freedom nor security. But when one pursues freedom, then security will follow at very little cost. 

Freedom and security are directly tied to one another and cannot be separated. If you go overboard in your pursuit of security in any aspect of life, then you will ultimately surrender your freedom.

When embraced as a guiding principle, this understanding will strip bare all important decisions in life, be it in your personal life, your relationships with others, in your work, and in all aspects of government and politics. Super important, and you can better believe we’re going there.

It is my belief that the CIA, NSA, Department of Homeland Security, FBI, and by extension Congress (since they approve it), are completely out-of-control. Combined they are too large by about 90%! That's right, 90%. Our nation and the world would be much better off if they did not exist at all versus existing in their present condition. What a waste.

But you have to understand that the Deep State exists as a TOOL of the global elite. They create money from nothing and have used that money from nothing to indebt and enslave the entire globe. They make money from nothing and use that money to elect puppet politicians and puppet judges. Thus they have circumvented all the checks and balances of the Constitution. There are no longer three branches, there is only one, and it is NOT controlled by the will of the people.

The Constitution states that CONGRESS, your representatives, shall "Coin money and regulate the value thereof." But by a known and open conspiracy Congress turned over their obligation to PRIVATE individuals in the year 1913 with passage of the Federal Reserve Act.

This was a history supernova. That act is ILLEGAL and UNCONSTITUTIONAL. It corrupted all laws that were created since that time.

What followed was the IRS Act the very next year. They blew a bubble that became the "roaring 1920's," that led to the crash of 1929. Then came the bond market crash (debt), then came WWII. The central banks used WWII to foist the Bretton Woods Accord on the people of the planet with only a sham of due process. Out spilled the illegally create United Nations, the "World Bank," (they are still laughing over this), the IMF, the BIS, all of which are improperly not monitored or authorized by anyone but themselves.

It's a sick and sad state of affairs, I'll be bringing you much more on all this in my upcoming book, "Definitive Freedom."

In the mean time, here's my friend, Bill Still, with some video that explains where we are with the Deep State and President Trump:


Thursday, March 16, 2017

Trump Budget and Math Reality

While I supported Trump over all the alternatives, the impossible math is the only way to glimpse economic reality.  No source that I’ve seen understands where the math is headed.  And with the first cut of Trump’s budget priorities comes a focus on the way in which the impossible math is distributed, with no discussion of how impossible the math is or why.

In a nutshell the debt is growing and accumulating at twice the rate predicted by both mainstream and non-mainstream sources alike, this article will show you how to glimpse the reality of the math.
While the national debt almost doubled under eight years of Obama administration going from $10.02 trillion to $19.95 trillion (it was far worse than this in reality, we’ll cover that later).  This 99% growth in just eight years means that the national debt effectively doubled in just eight years.   That’s terrible, but most people are projecting the same $1.25 trillion growth per year for the next eight years, or a total growth that will equal another $10 trillion.  That is NOT math reality.  

The reality is that regardless of who is president, the math must double again in the next eight years in order to achieve the same rate of growth!  $20 trillion, not just another paltry $10!  In other words, at the end of eight more years, the end of 2024, the national debt will likely stand at $40 trillion, not the projected $30 trillion. If that RATE of growth is not maintained, then what do you suppose will happen to the economy, knowing that all our money is DEBT?

But why is it that nobody can do a projection that matches reality?

Reality does not exist in ANY mainstream media.  The mainstream media is 90% fake, every bit of that is designed to fill our heads with a story-line that manipulates and enslaves us, robbing us of our productivity and holding back the advancement of humanity.  The 10% that is real is obscured by the majority 90% spin.  If you incorporate their narrative, you will consume unfit foods, unfit water and drinks, drugs, medicines, and vaccines that will make it impossible for you to think clearly enough to distinguish what is real and what is not.  You will likely work in jobs that perpetuate and are dependent upon enforcing the mainstream narrative (most people do not realize the part they play).

The internet is the ONLY place that reality exists.  But you must be able to think and filter knowledge clearly in order to see it.  Most people have not been taught to THINK.  To filter correctly you must intensely focus on each subject looking for inconsistencies.  Thinking is a process of removing inconsistencies until you have a clear, consistent, and simple picture in which all the pieces fit together without conflict.  You will not even find reality in a modern library; it, too, is filled with nonsensical thinking that has been poisoned by corrupted mainstream science and ideology.

Here’s an important truth that you must understand before discussing the impossible math that underlies our economy:

EQUITY:  An increase or a decrease in equity (stocks) primarily affects the person who owns it.  Thus, if the stock market falls the individuals who own it are negatively impacted, but the wealth effect is very narrow.  Equity is a one person transaction.  The person who holds equity cannot default, they can only lose their investment thus the ripple effect of lost equity is small.  If you were to lose all your equity holdings, no one will come after you for payment, you will be angry with those managing the companies you owned, but there is no recourse.

DEBT:  Debt, on the other hand, is a two person transaction.  When a debt is created there is always a person who is on the other side of the transaction.  If the person who owes the money, the debtor, defaults, then the person who loaned the money will come after your assets to recoup losses.  THIS IS WHY DEBT MATTERS, and equity doesn’t.  Wars are fought over debt, not equity.  The entanglement of debt across nations means when debts cannot be repaid, or even if faith is lost that debts can be repaid with money of value, then emotional anger ensues.  We are riddled with more debt, by far, than at any other point in history.  It matters.  Those who ignore it are ignorant of history, and believe that the math is fantasy.  The math of debt is NOT FANTASY, it is real and is woven into the people on both sides of the debt transaction.

DERIVATIVES:  Derivatives that are based upon debt (sliced and diced), leverage the debt (leverage upon leverage) and obscure reality.  But the underlying debts still exist, even if created under an improper rule-of-law as most modern debts are.  Derivatives not based on debt are fantasy, they are not reality, but like debt their impacts are entangled beyond just one person or entity.  In that regard derivatives also matter, they represent systemic risk.

To get a glimpse of how mainstream “authority figures” deny the reality of debt, please view the following example, although from 2008 is still valid as mainstream Keynesian psychopathic gibberish:

The deluded thinking is, that no matter what, more debt can be produced, thus default will never occur.  And that government debt is somehow magically different because it’s backed with nuclear warheads, oh, and the ability to tax the living heck out of you and me.  Not mentioned is how insane and absolutely ridiculous it is that our unsovereign government borrows money from PRIVATE individuals and uses our tax money (productive effort) to pay those privileged private individuals interest.

One of the reasons people are not correctly projecting the RATE of growth into the future is that most people’s minds do not understand, and have not been trained, to comprehend the exponential function.  To which I am reposting the following video from Dr. Bartlett, I highly suggest that you review the first 15 minutes so that you can visualize the exponential math that I’m referring to:

Dr. Bartlett’s rule of 70 is the same as the more common “rule of 72” except that he rounded the number to make the math easier.

So, to see the doubling time of our current account deficit we need only look at the past eight years, because the deficit almost exactly doubled in the past eight years.  If you divide 70 by 8, then you will find that the past eight year doubling equates to an annual growth rate of 8.75% per year!

And that’s exactly the rate at which our federal debt is growing.  Our “money” is debt, and thus this portion of “money” is inflating at the rate of 8.75% per year.  Here’s how you can see into the future…

If that rate is maintained, then in the next 8 years our debt will DOUBLE again.  From $20 trillion, to $40 trillion.  Again, the mainstream assumption is that our debt only continues to grow at the current per year dollar amount of $1.25 trillion per year, but that is NOT the case.

Should the 8.75% growth rate of debt not continue, then growth will slow and the real economy will turn more negative than it is already.  So another doubling does not have to happen, but there are consequences if it does not under the current criminal central debt as money system.

If, however, the growth rate continues to escalate as it has been, then a crackup boom is likely.  A crackup boom results in things close to the production of money rising in value, while those further away stagnate.  So things like stocks, gold, silver, Bitcoin all get speculated higher, while food and necessities get more expensive relative to stagnant incomes.

A real economy that is not saturated with debt actually does grow when debt is added to it.  That was the industrial revolution in the United States.  Since 2008 we have been in a state of macroeconomic debt saturation where the return on more debt is negative:

Chart of the Century - Diminishing Productivity of Debt
You may recognize that Diminishing Returns chart from my articles on the “Chart of the Century” back in 2010.  Below is an updated version of that chart directly from the Fed now that they publish charts that can reproduce using their statistics (total debt figures ended in 2015 in this series):

Diminishing Productivity of Debt through 2015
Note that in the Diminishing Returns chart above that the rise seen in 2010 is due to the FED taking on $4.5 trillion onto their balance sheet!  That debt would have otherwise been added to our national debt, thus the stated $20 trillion is actually $24.5 trillion today!  Cough, cough.  Of course it’s much worse than that, but let’s ignore unfunded liabilities and all the other giant sums hidden under ginormous carpets.

Here is a chart of the FED’s Balance Sheet:

FED's Balance Sheet
Of the above $4.5 trillion, below is the portion that is just mortgage backed securities on the FED’s Balance Sheet:

Mortgage Backed Securities on the FED's Balance Sheet
Of course the FED did this to prevent collapse.  What QE did was to temporarily unsaturate the debt, thus the spike in the 2010 Diminishing Returns Chart.  By simply moving that debt from a current payable to an even more distant payable (an "asset" on the FED's balance sheet), it created more room for debt to be pushed into the economy, mathematically.  QE was the most effective tool to date for modulating the saturation point of debt within the economy.  BUT, we are now back into full on saturation where adding debt creates negative growth, not positive growth.

And so, the game of private central bankers modulating the economy with tricks continues for now.  They steal our productivity while the impossible math continues to become even more impossible.  If the FED begins to reduce their balance sheet, look out below.  If they feel the need to increase their balance sheet, look out above. 

When does the music end?  It ends when the people are no longer willing to tolerate giving so much of their productive effort to a criminal enterprise.  In the meantime, look for the next economic blackmail to come soon, very soon.

Wednesday, March 15, 2017

Bitcoin Security: Bubble Boy and the Sewer Rat

Super video, very important to understand the power of decentralization.  Bitcoin is going to erode the power base of the central bank and they do not yet realize how profound this transformation will be.  I believe this technology is a major part of a proper path forward, support its use fully, and own some myself.

Later, and in my new book, I will explain the historical significance of it and how I think the concept of decentralized systems like Bitcoin can be used alongside of other forms of "money" in order to make a more diverse and robust system overall, one that has options outside the hands of the criminal central cartel.

Introduction To Bitcoin

Bitcoin is a HUGE deal.  Much larger than most believe, historic.  If you are not yet participating, you should be.  I recommend that you go to Coinbase and start your account today!

I'm Back...

Over a year ago I sold my latest two businesses and have been waiting for the right time to come back into the public domain.  I plan to do so in a big way, but not quite yet.

The impossible mathematics that underlie our economy are unbelievably more impossible today.  The markets are less real, and more overvalued than at any other time in history.  Future returns from valuations above 20 are statistically unlikely, and they are bordering on impossible from these levels on any type of an extended timeline.  Accounting standards have continued to relax and if GAAP accounting standards of 15 years ago were used, then P/E ratios would be through the roof.

Over the past several years many pundits have been premature in their calls for a market top.  A significant mid-term top is now near.  Today’s move higher after the FOMC likely will mark the beginning of the last wave higher before the next decline.  It will not likely be, I believe, THE decline.  There are high odds of volatility returning in both directions.  Eventual further upside will be the result not of underlying fundamental strength, but of monetary implosion.  Europe implodes first causing funds to flow to the U.S., and that has been occurring for some time now.  Japan implodes next, then the U.S. and the rest of the world, in that order, but it will still take some time to play out.

There is a war going on inside our nation and around the globe.  The two sides are Faction A which is the Globalist socialist Deep State central banking cartel, and Faction B, currently lead by the new Trump Administration representing us proud to be Americans, non-socialist, decentralized, Constitution abiding, thinking and aware faction. 

I could write much about the criminality in the CIA, the FBI, NSA, Homeland 'Security', in the Justice Department, in Congress, the Senate, the media, the judicial branch, and many others.  And I will, but not here and not just yet.

I 100% foresaw Trump’s victory and was rooting for it.  However, while he’s a truth teller who is right 90% of the time, it is the 10% revolving around the root of our problems (central criminal banking performed outside a proper rule-of-law) that will doom the remaining 90%.  Thus I do not expect significant resolutions to any major problems.  I expect a war cycle that was going to happen regardless of who took the White House.  

I also expect the markets to be intentionally taken down (by the criminal cartel) as a part of the ongoing war in an attempt to control faction B (it will be unsuccessful).  I think more and more "Truth Bombs" will explode in public as the truth will be used in defense during what I believe are the early stages of this war.  These truth bombs are going to expose further the deep state, and will expose technological and other secrets that have been withheld from the public.

Right now I’m working on a new holistic book called “Definitive Freedom.”  This is a huge project that is going to take a while.  This book is meant to be holistic, spanning many subject areas in which our Dreams have been corrupted and our thoughts polluted.  This book will not just point out root issues, which it does; but it will concentrate on reality, what is a true and proper rule-of-law, and how to build a more proper rule-of-law as the current very flawed system unravels.

As I work on Definitive Freedom I will occasionally post non-time-consuming items of interest here.  I am also working on a new, much larger, website and will update you on that as it becomes ready. 

In the meantime feel free to contact me if you like, as I get time I may answer a few pertinent questions here, but will be focused on progressing the book and the new website before making regular posts.

Hope everyone is well,

Nathan Martin