The Great Reset
The "Everything Bubble" is bursting. This is going to get ugly.
I suspect it began with the top in Bitcon and the other 1300-1400 related pseudo currencies back in December. I did an interview in the first week of December where I said Bitcon was in a bubble. I believed it would do the same thing every other bubble in history did. It was going to crash and take all the money of most of the investors. The piece was posted on the 10 th of December. When I did the interview, Bitcon had been going virtually straight up for months and was about $16,858, a new high.
The interview allowed for comments. There were 136 in total. I just went through them to read what people were saying. 65% were convinced I am nothing but a senile old man long past his prime who doesn't understand that "This time it's different." That may well be true, Barbara reminds me half a dozen times a day I'm a senile old man. She may well have a point. But as I pointed out in Nobody Knows Anything, "This time it's different" is the bell they ring at the top of every bubble. The book has been out for almost two years now and it's still selling hundreds of copies a month. There must be something to it.
I did yet another interview on Bitcon and the pseudo currencies that went up on the 13 th of December and I made it perfectly clear that we were at a top and the bubble was about to burst. I made an interesting comment that can only be appreciated in hindsight, "If Bitcoin is $50,000 in a month then I'm obviously wrong. I'm either right or I'm wrong, it's really simple. But I've never seen a clearer bubble than Bitcoin, this makes the Florida land boom and even the dot com bubble look tame by comparison."
John McAfee made an even more interesting comment quoted in the same article that will grow with time when he said, "Bubbles are mathematically impossible in this new paradigm. Gold is laughable compared to cryptocurrencies. How do you fractionalize gold? How do you ship it? It's physical so how do you safely store it. It was good for people 3,000 years ago. Today it is inherently worthless. Soon it will drop in value as crypto currencies climb."
It is a month later. One of us got it dead right. And regardless of McAfee's IQ or wealth for him to say, "bubbles are mathematically impossible in this new paradigm" goes beyond stupid. That is shit house rat crazy. He needs to go to Amazon or any bookstore and spend $15 to learn about bubbles in history and how human behavior never changes.
Bitcon topped at $19,343.04 on the 16th of December. The other 1300-1400 frauds topped a week or so later with a total market cap of over $840 billion. That money is on the express train to money heaven as I write.
My regular readers know I am a firm believer in the value of the Daily Sentiment Indicator and of the COTs in predicting tops and bottoms. I wrote about gold and silver nearing a bottom in early December. We had it. Gold and silver have been on a run since.
We have a very interesting situation in that the DSI is now flashing warning signs of a tradable top in the S&P and Nasdaq. The DSI broke into the 90s a week ago and have gotten as high as 95 since. Given the potential for a pin pricking the Everything Bubble, taking some money off the table might turn out to be a very good idea. I see a turn downward within days. Nothing goes up forever. I'm not saying it's an all time high, I am saying that sentiment is warning us of shoal waters ahead and we could have a major correction.
The same lying traitors who lied America into useless and expensive wars in Iraq and Libya on behalf of a foreign power are now trying to drag the US into another illegal war of aggression against a sovereign nation that has done nothing to us. Iran is not the enemy of the United States. It certainly is not the biggest source of terrorism in the Middle East and is far too well defended to destroy without using nuclear weapons. They have no nuclear weapons program and we know it.
As a guy who flew 832 missions in Vietnam I can state with absolute certainty that an attack on Iran by the US would not only fail it would start World War III and probably destroy all life on Earth. Now that would be stupid.
Russia and China are tired of dealing with an out of control country run by a pompous narcissist with the emotional maturity of a ten year old who thinks you can conduct business on a cellphone via Twitter. Every institution in America is in a state of failure. The education system doesn't work, the medical system is utterly flawed and no one is interested in fixing it. The legal system is a joke where the FBI convicts Martha Stewart of lying about a stock sale on the basis of an unrecorded and unsworn conversation yet Huma Abedin lied to the FBI under oath about not backing up classified emails to her husband's computer and faces no charges.
We have direct evidence that the FBI deliberately leaked classified information in an attempt to rig the last election in favor of Hillary Clinton and no one cares. How much more corrupt could the United States possibly become?
I have no inside contacts with the Chinese or the Russians. But I can say with great confidence that neither country shows any inclination to allow the US to blow up the world for no particular reason other than that Donald Trump was bored of playing with his cellphone. I do have contacts in the US who have suggested to me that a military attack against North Korea by the US was planned for a March date. It fits and I believe it.
So this past week China fired a shot across the bow of the US ship of state. Bloomberg reported on the 10th of January that officials in China were thinking about reducing or stopping the purchase of US government bonds.
Well folks, the day that happens the bond market implodes and takes the world's entire financial system with it. Everyone in China and the US are now trying to walk back the comments in fear that even the suggestion would destroy the world's financial system. But Trump has certainly changed his tune about how his dick is bigger than Fatso's and is now thinking talk-talk makes far more sense than war-war. I have little doubt his tone on Iran is going to be toned down as well.
The bond market will regress to the mean of far higher interest rates one day. That may be next week or next year but when the bond market crashes, as it must do, we are going to have a worldwide reset of the financial system.
For the average American couch potato uninterested in what goes on in the real world, the overpaid Divas of Hollywood have embarked on a witch-hunt of monumental proportions against some men in particular and most of them overall. In a town swimming in a cesspool of gossip we are assured that these women were either raped by Harvey Weinstein or are now shocked, shocked we hear to learn that he abused the casting couch and his position. They prance up the Red Carpet in their $10,000 scanties wearing fewer clothes than your average pole dancer and whine about how terrible it is that men see them only as sexual objects.
It's time for an IQ test. Can you spell HIPOCRISY? If we are in the regime of absolute truth I'd like to know just how many of the divas balled a casting director for a better part. Sexual aggression works both ways. A casting couch requires a minimum of two or it's nothing but masturbation.
The sea of debt the world is awash with requires a reset. It may be now. At the very least, the US needs a wakeup call, it's embarrassing that the corruption is so total and so invisible to those participating.
Silver and platinum are going to have a very good year.