CURRENCY WARS:  RIP Shadow Banking System, Long Live QEx!
We have unwittingly become trapped in the snarled net of years of bad Public Policy. Like corporations that look no further than this quarter's results, our politicos never stop campaigning to start the tough task of ruling responsibly. A winning election simply represents 'rewards' and 'spoils' to all before quickly resuming the next campaign. Image has become reality! As a result the never ending political pandering has led to false expectations, undeliverable entitlements and false optimism in the electorate that rejects the immediate and obvious realities.  The result of a degenerated political leadership process is we are on the brink of a massive and sudden reduction in the US standard of living. MORE>>

CURRENCY WARS: Flash Points in the "Age of Rage"
The conflict in North Africa was a predictable outcome of the US Monetary Policy of Quantitative Easing. It is not plausible that the US Federal Reserve, as the manager of the world's Reserve Currency, did not fully recognize the global ramifications of such monetary inflationary actions well in advance. Quantitative Easing like the Intercontinental Ballistic Missiles (ICBM) of the cold war era has had the same devastating pre-emptive impact on Libya.There can also be little doubt that the bi-monthly meetings of the Bank of International Settlements (BIS) board of directors, which specifically meet to discuss coordinated monetary policy outcomes, did not consider this eventuality. The board of directors of this global power center includes all G7 Central Banks chiefs, with the conspicuous absence of a single member of the Arab League not receiving US military financial aid.  MORE>>

TIPPING POINTS - Mapping the Critical 2011 Themes 2011 THESIS SIGN-UP PAGE
The conclusions of our "2011 Thesis - Beggar-thy-Neighbor" was that the world is on a glide path towards a global Fiat Currency Failure and the emergence of a New World Order. We are unclear whether it is planned or happenstance, but what our regularly conducted abstraction mapping process clearly indicates is that it is presently a high probability outcome. The paper (which will be made available to non subscribers March 11th, 2011- sign-up) uses the Process of Abstraction to avoid the media noise, abstract the facts, synthesis key macro drivers and then arrive at the highest probability outcomes. In the recent article "2011 Tipping Points" we laid out the 37 major Tipping Points we are presently tracking. These Tipping Points are show on the left hand side of the two charts below, which are the basis upon which our ongoing analysis process is conducted.  These highly simplified representations of the process gives the reader a graphical perspective on what leads us to our conclusions. MORE>>

MARKET ANALYTICS - March 2011 THIS MONTH ONLY - Special Free 3 Month Trial Subscription Available
The market action since March 2009 is a bear market counter rally that is presently nearing a final end in a classic ending diagonal pattern. The Bear Market which started in 2000 will resume in full force by late spring of 2011. We presently have the early beginnings of a  'rolling top'. We are seeing broad based weakening analytics and cascading warning signals. This behavior is typically seen near major tops.  This is all part of a final topping formation and a long term right shoulder technical construction pattern.   MORE>>

PRESERVE and PROTECT - 2011 Tipping Points
Throughout my 2010 article series "Extend & Pretend" and "Sultans of Swap" I stressed that we were rapidly moving from the Financial Crisis of 2008, through the Economic Fallout of 2009 - 2010, towards a Political Crisis in 2011 - 2012. We are now clearly beginning to see the early emergence of the final part of this continuum.  From North Africa to Wisconsin all are fundamentally based on the single insidious underlying problem - excessive global debt and credit levels. MORE>>

EURO EXPERIMENT - Beware of Lurking EU Bank Runs
This is a warning to prepare for potential stealth bank runs cascading from North Africa and Ireland through to EU regional banking centers. Stealth bank runs are the unrecognized and perilous serpent lurking presently below the European financial surface. They prey on slower moving archaic bond vigilantes and anyone else swimming in these dangerous uncharted waters. Investors need to fully appreciate that a modern bank run looks and operates  differently than what is depicted in the movies and what we most likely expect to occur! MORE>>

Japan losing control of nuclear crisis - Kan criticises Fukushima plant operator as Nikkei drops 10.6% - The Nikkei 225 stock average closed down 10.6 per cent on Tuesday after slumping 6.2 per cent on Monday. A sixth of the Japanese market’s value has been wiped out in two trading days since the country’s worst earthquake and tsunami since records began struck on Friday. Japan appears to be losing control of its nuclear crisis after a fresh explosion at an atomic plant north of Tokyo released more radiation into the air, prompting the prime minister to appeal for calm and accelerating a big sell-off of Japanese shares.

Mr Kan warned the company not to withdraw key personnel after Tepco earlier on Tuesday evacuated 740 non-essential staff from the station, leaving a skeleton crew of about 50 to continue efforts to cool the coastal reactors. “You are the only ones [who can resolve the crisis]. Retreat is unthinkable,” Japanese media reported him as telling executives.  

Japan Adds $183B to Economy, Doubles Asset Purchases - Besides the 15 trillion yen of emergency funds deployed in the central bank’s biggest one-day operation, the Bank of Japan offered to buy 3 trillion yen of government bonds from lenders in repurchase agreements starting March 16.

'The Day After The Dollar Crashes - A Survival Guide for the Rise of the New World Order '