Henning: Into the No World Order, Part III

       A debt-laden public and private Frankenstein Monster has been created, one that inhales tax dollars, tax dollars, and more tax dollars, along with interest, interest, and more interest. the pernicious monster was set up by the international banking gang collecting the vigorish resulting from the transfer process at levels of leverage beyond comprehension. Remember, bankers love debt. Debt pays interest. The hustle has been internationalized and has been titled the "New World Order" or "Globalization." This "Globalization" is a pragmatic application of the old concept of he who controls the money. . .simply controls.
        Annually, the banking gang gets together at the bilderberger meeting. The usual suspects are all there: international and central bankers and new propagandists having staffs of ex-hippies, whose reading lists have seldom moved beyond Karl Marx, and politicians of all stripes. Understand that politics is a total irrelevancy. These boys are not going to set up a world-wide zillion dollar hustle and allow an in-hock, self-indulgent, free-lunch-demanding herd, with maxed out credit cards, living in financial La La Land, who have raised the likes of Desperate Housewives to top ratings, to have any political input. Given the world-wide scope of this hustle, the thought of being threatened politically is too ludicrous to consider. These boys own both sides.
        Of course all of this cynicism is obfuscated by a mythology that sells well.
        However, the savvy player, living in the cold, lonely world of truthful money flow, must rise above these mythologies that are peddled in the print media and on the financial babble box.
        The hustle will fail, and is beginning to fail.
        First, the hustle is based on a foundation of paper currencies backed by debt, which is showing hints that it is going to implode. The debt implosion will accelerate given a close at 113 or lower by the bond market, forcing higher rates and loan default.
        Secondly, the hustlers disillusion themselves that they can control markets. Any influence that they try to exert is, at best, temporary, only causing the resulting countermove to be proportionally compensatory. These boys hate gold and have been doing gold leasing for some time. However, gold has doubled in the last couple of years. Given closes above XAU 114, Gold above 460, they're going to get caught having to cover positions in a market that will salivate as it slaughters their gold leases. In short, they try to control markets, but, in the end, they always fail.
        Thirdly, the hustlers ignore the concept of the territorial imperative, which has evolved in the human condition since Adam and Eve. Briefly, the territorial imperative suggests that, when the bad guys enter the home cave, the cave owner will fight like the devil to defend his territory. This has begun to manifest itself in the recent no votes in the Euro move in France and the Netherlands. When the bubble bursts, the bilder organization will not be a palsy-walsy pinochle game, but instead, it will disintegrate as the territorial imperative erupts and it becomes every man for himself.
        One aspect of this hustle is the concept of species specialization, which suggest that the more that a species specializes, the less adaptable it becomes. When the environment adversely changes, without adabtability to the new environment, the species will perish.
        Given that debt creation and inflation is the lifeblood of this hustle, debt default and the resulting deflation will reverse the environment that nurtures the hustle. Given the zillion-to-one leverage of the banking system, defaulted loans will bust that banking system. The inflationary environment will reverse to a deflationary environment. The hustlers, being totally committed to debt creation and inflation, will be unable to adapt to deflation.
        That will be their downfall. This is why Big Al has been trying to keep the money supply expanding, because if it does not expand, the bubble will burst.
        The question remains as to whether these boys believe their own bull manure. The fact that truth is money flow and that they've put in such an effort and spent so much money, is a testament that they buy their own belief system. In addition, the financial babble box has recently announced that a big sub group within the larger group has made a major commitment in New York real estate. It was Woody Allen who suggested that man cannot survive in a world of cold reality. Man needs mythologies. An organization such as this cannot exist without the glue of mythology. They need it. Yeah! I rather think that they believe their own bull manure. On the other hand, the savvy player should watch the markets.
        The bond market has waved out a twenty-three-year bull cycle with a broad topping pattern evolving for the last couple of years.
        Near-term, the move has been grinding out terminal waves as the internals and Hard Momentums have been turning bearish. A close at 113 or lower basis the spot month would confirm the breakdown of the Weekly Hard Momentum, confirming the start of a bear cycle having the life expectancy of about a decade.
        Higher rates will trigger debt default and implosion. The folks with variable rate mortgages on their mansionettes will get some nasty surprises when their payments become due. Given that the housing stocks are falling out of bed, would one start entertaining thoughts about a housing bubble burst? Yes, one would.
        The gold complex has broken to the upside with gold clearing key highs at 465 with good relative strength by the gold stocks basis the XAU.
        I've been wrestling with two wave counts, the first suggesting that there will be another downleg to round out a potential pattern, the second suggesting that the correction is done, and we're beginning to launch the juicy #3 move.
        The recent strength suggests that the anticipated #3 has started, but I can't rule out another downleg to fulfill the first potential count.
        At any rate, the important thing to remember is that the gold bull cycle is intact and the only strategy is not to get cute; stay with the main up-cycle.
        Near term, the complex is overbought and will probably take a rest. After a consolidation, closes above XAU 114, spot gold above 477, would confirm the start of the fun part of the cycle, the primary #3 wave.
        As the gold strength has been evolving, the Dollar has not cracked to the downside, which is the usual relationship. That raises an interesting concept. Gold broke out to the upside basis not only the Dollar, but basis the rest of the currencies. The gold market is rejecting not only the Dollar, but all currencies. The message here is that the Dollar is no longer the anchor currency but is recognized by the gold complex as being just another piece of paper on a par with the Lower Slobovian Rasbucknic. This hints that the concept of a world-wide implosion is valid.
        The gold complex is thumbing its nose at the banking gang, saying, "Sorry guys, if you want to undermine your paper currencies, we don't want them. We want gold instead."
Meanwhile, the stock market has been waving out a terminal move in the bull cycle that started in August, 1982. The favored tea leaf count is illustrated in the Weekly Value Line.
Near term, as the terminal wave has been grinding itself out, the usual internal studies such as volume, quantified advance/declines, momentum, etc. have begun to fail. This is part of the near-term topping process.
        While not shown, closes below the September lows of Dow 10,370, Transports 3570, would strongly suggest that the anticipated bear cycle is starting. Closes below the April lows of Dow 10,000, Transports 3348, would confirm the start of the bear cycle having a life expectancy of about a decade, which would complement the 23-year bull cycle that started in August, 1982.
        To sum up the market situation: The bond market has topped out and is bleeding, needing a close below 113 to confirm the start of a bear cycle, bursting the debt bubble. The gold complex is breaking out to the upside, suggesting a massive distrust of paper currencies. The stock market has deteriorated internally and closes below key lows would confirm the start of a bear cycle. We have market harmony that suggests that an implosion is coming.
        The banking boys, in the process of controlling the money, did indeed gain control, but in so doing, bastardized the currencies killing the system that produces the wealth. Given the death of the system, there will be nobody left to pay the interest to support the system. The system will evaporate.
        All of the mythologies, the central bank myth, the Fed myth, will dissolve and a new system will evolve. It's called economic anarchy, the no world order.

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