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Coalescence of Economic Indicators

SK O'Neal

14 June, 2015

Let me call your attention to this ZeroHedge article today, posted on Jones [1].  There was no mention of the Baltic Dry but should have as well.  These price instabilities are telling, and it must be remembered that the consumption rate of energy (with price generally commensurate) is, without need for reference, a primary measure of the economy.  Some adjustment of that assumption may be made in terms of a shift to a "service" economy, but only as a second-order indication, and re-normalized as a primary metric to define the debasement of an economy as simply a different form of decline.  The Baltic Dry, a more recent metric based on shipping, is also a primary indicator, on a shorter time scale.  This energy and shipping data adds considerable depth to the comparatively indirect revelations about corrupted debt structure, most notably derivatives.  But the financial mechanics are so completely convoluted and obtuse as to require some condensation to reality, or as we often say, "fundamentals."  As discussed previously, analysis of our socioeconomic system has quite literally developed a parametric form deeply rooted in complex numbers and reactive mechanisms associated with a large amount of stored energy - in this case not electrical, but sociological, and is intimately related to the concept of stored equity that genuine money is, and currency tries to mimic.  The difficulty is that the bankers have figured out how to amplify the reactive component and then use it to drive a socioeconomic distillation quite abstract to the ordinary public, and resulting in a return to the ground state of human culture - kings and slaves.

On a more personal practical level for those interested in preserving at least some capital to restart with later, one must ask where the currencies will go, in particular the dollar and precious metals.  The general thesis of a strong deflationary downrun is supported by the energy data, and (previous) discussions related to the dynamics of loss of buying power when whole industries fail, or there is a deliberate infarction applied to the banking system, with its natural economic consequences.  Martin Armstrong, and particularly Harry Dent see severe drops in gold, to perhaps $250 in  Dent's case.  Other arguments suggest higher prices than  now due to the effects of loss of faith in government and currency.  The difference may resolve in the timing, with drop first then explosion of price of commodities in terms of gold, with the effect of gold price inflation due to a debased government and currency.  Then there is the potential role black market economic structure, favouring portable wealth.  Wartime is the template for such situations.  Armstrong's thesis is the bursting of the bond bubble around October 1st.  Hodges [2] and Moore [4] have indicated sources who have schedules to go deep a month in advance of Armstrong's temporal prediction, a realistic pattern to consider.  One view is the ultimate failure of currency against real money, or stable, fungible commodities traded on smaller scales than that of owners of nations, mining and shipping interests.  This is the traditional role of precious metals on the small scale, and oil, coal, land and armies on the larger.  Then there is the Law of Water, the common denominator by which navies settle accounts on the large scale.  At the moment, it is arguable that  there  is no safe place for a small party to store wealth, as every currency and money is clearly in a period of severe instability.

On a less analytical angle, recent discussions about the Jewish holidays associated with the rare lunar eclipse are difficult to assess with rigorous discipline as a driver for socioeconomic perturbations, but the Feast of Trumpets and Feast of Tabernacles are the last two weeks of September 2015, and have at least the potential to be employed in occult theological process to be operated upon.  The endpoint of this period is September 28th, the  fourth and final blood moon of the series.  More credible than the religious opportunism offered in relation  to this event, estimation of esoteric practices of world power brokers is arguably a far more likely scenario, but best coupled with other supporting practicalities in timing.  Those practicalities also arguably exist as well in this case, even for those inured by the Darbian [4] hype over y2k and 2012.  It is worth noting however, that in a severe storm, the funnel cloud epicenter is often offset from  the main column of the storm in an otherwise comparatively calm adjunct separated by a small margin from the ostensive storm front.  

I have no updates on Clif High's neurolinguistic predictions [5], but palpable and increasingly numerous observations of increased military and financial institution activity sources cited by Hodges and others generate a nontrivial expectation of socioeconomic catastrophe, clearly being anticipated by agencies in charge of national affairs, to occur in  a timeframe beginning on or about October 1, 2015.  It is for such reasons and others as well, that I will make a calculated exploration into rapid or perhaps emergency development of a homestead facility, under the principle that land productivity and shelter are in general the best investment for either primary or  secondary wealth at the moment, more severe appraisals of our situation notwithstanding. 

[2] Dave Hodges of The CommonSense  Show
[3]  John Moore of
[4] reference made to John Darby and his Religious Dispensationalism notoriously updated as the predicted dates fail to manifest material results.
[5]  Clif High,℠ (Right-side navigation page SSI insertion)