2016 Second Quarter Market Retrospection
By TLB Contributing Author: Ken LaRive
Not the same game as ’83
Equity markets managed to edge higher in spite of a hodgepodge of challenges this second quarter, 2016. Some have suggested that equity values were propped up by stable oil prices, with continued improvements in housing, consumption, and of course overt government spending. Yes, the national debt continued to rise, printing money out of thin air, and though some said oil prices were stable, to me, flat does not mean strength. We need at least $65 per bbl, with a stability of at least six months for investment of any significance to return. $45 just won’t cut it, and Saudi is still flooding the market with cheap oil… They hope to damage Iran, China, and Russia… but it isn’t the same game as in 1983, and unless someone comes along with business savvy as our Commander in Chief, we will all lose.
Iran wasn’t a viable player back then, still reeling from The Shaw, our puppet dictator, and the Leviathan, British Petroleum, who grew as fat as a tick steeling their primary natural resource, oil and gas, creating a church state eventually powerful enough to fight back. This time around, our new “axis of evil,” are bypassing the Central Banking Cartel by doing deals in Gold. Amazing how our current enemies are the ones who oppose central banking, and we are collectively propelled into another war…. In the process of these big boy games, our North American Oil Patch infrastructure is dissolving, with massive layoffs that will take years to recover. People power will have to be retrained, from the wide assortment of engineers to the army of worker bees, and as this is devastating to both families and our economy, it is also grossly unreported… from the Midwest, to the Rockies and the Deep South. If it wouldn’t be for Texas’ diversity, people giving up working for a living, and a growing government, job growth, as reported by Obama, would be a negative. Yes, a Progressive mindset, on both sides of Washington’s dog and pony show.
Here is a short history of Iran, and how we helped to create what it is today…
The why of the truth
Back in ’83 we only had about a four trillion national debt. With a weakened enemy, the USSR, they defaulted on Central Banking debt after their Vietnam, Afghanistan, was pounded by our well-armed CIA operative and Sunni Islamist, Osama bin Laden, and his new army called Al Qaeda, founded in 1988.
Decades of cold war spending and the desperation to build a pipeline through Afghanistan, was thwarted by our network of Islamic extremists, that grew out of control. They were called Salafist lihadists, and designated as a terrorist group by the United Nations Security Council, the North Atlantic Organization (NATO), The EU, The US, Russia, India, France, and many more.
This time, however, times have changed… Today we have over 19 trillion in debt, systemically flat broke, and yet the Progressives want to make a vaulted debt ceiling, hoping to reach 21 trillion by year’s end. Thought to be a virtual suicide, some are fighting back, like BREXIT, and Iceland. Brittan has withdrawn from the EU, and Iceland has arrested their Central Bankers as traitors, recently forgiven the debt. More than likely, you won’t hear any of that from our nationalized media, orchestrated by an oligarchy who writes our epitaph in their black bottom line.
No Crystal Ball, just insider trading…
May gave us a week labor report, taking June’s rate hike off the table for the Fed, with an equities boost, but late in the quarter there was about a week of real panic, stimulating selling, as the Brits voted to leave the EU. The doomsday scenario, as promoted by our friendly international banking cartel, fizzled after just two days, and the market rebounded quickly and positively, to the surprise of fearful speculators, or so it seems.
In the middle of doom’s day, black box adds suggested an eminent Armageddon, and for some select few, the second coming, in spite of dire warning from silver and gold houses and Ron Paul’s new voice with Stanberry, third quarter equities surged to new heights. There was even a positive shift towards growing employment, but some suggested it to be a bogus manipulation. The price of gold and silver, as with all precious metals attached to currency, is thought to be manipulated too, and that, as I have suggested before, job growth are little more than new Federal Job conscriptions; dying worker motivation as they withdraw from the pool. And yet, whatever it actually was, a modest gain in economic growth was reported.
Surely, diluting our money with almost 10 trillion, unsecured, doubling the national debt since Obama was in office, should stimulate significant inflation. How this didn’t happen suggests a powerful guiding hand, as it is a historical truth that gold and silver will rise with inflation, and called a strategic hedge that can save our bacon in a down turn. But not this time, it seems, as something else is amiss.
The Federal Reserve is not accountable to anyone, and what they do is hidden from view. Perhaps this is the reason we cannot look into Fort Knox for fifty years, or do a full audit on the Federal Reserve? Transparency might prove us insolvent, finding our gold is allocated, and our National lands and resources as well, both used as collateral for international concerns. Letting Russia mine for uranium, is a case in point.
What would Americans do if they found their national treasure squandered? What could we do if we found that the Oligarchy that displaced or Democratic Republic based on Constitutional Law, was complacent in the biggest heist in history? What if you found that the emails of our most powerful and trusted servant were scrubbed?
Winners, and election speculation…
Asset classes, such as, small cap U.S. equities and emerging markets, surprisingly has led the way this quarter, after disappointing and lackluster past performances. Some are suggesting that this has caused a valuation imbalance, and taking notice by investors, but I think the singular, most powerful motivator for the market going into the fourth quarter will be speculation on who will win the election. There is a vast difference of opinion as to what the market turn will take. For me, a good bet would be LNG, Cheniere Energy, no matter who wins. Indeed, it is complicated, but I see a long term win something akin to buying railroad stock in 1845. If Trump wins, however, though markets may flounder immediately in uncertainty, by the second quarter of 2017 it will catapult forward with new market potential, and something far more powerful, unbridled optimism. I for one will celebrate by buying two new cars, something I could not afford under Obama, and his Progressive Socialistic Plantation.
Let me reiterate…
Yes, some are predicting the largest reset in American history, and buying precious metals a hedge to thwart this so-called inevitable calamity. Some are continuing to play marbles, while others are trading them for tangible assets. Traditionally, when an economy crashes, precious metals soar, but this bump has apparently not been big enough to become evident. Even a minimalist will see that if you double the national debt, inflation should double too. If it does not, a powerful hand is controlling that. No one talks about where we may sell our hidden stash, as our world crumbles. Have we doubled our store of gold and silver? It is a thought, but something relatively taboo to consider these days… Perhaps, at least for a short time, bullets may be of primary value in our new world, and the first wave will indeed be a revelation in a humanity morphing into the malignancy of complacency, and trust in authority.
Ken LaRive – Facets: It’s a simple but beautiful metaphor. Our soul is likened to an uncut diamond, pure, perfect, and unrealized. Each learned experience cleaves a facet on its face, and leaves it changed forever. Through this facet, this clear window, new light, new questions and ideas take shape and form. This process is our reason for being …
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