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Confidence waning fast! This could be significant!

August 1, 2016

Today’s Wall Street Journal reveals that Confidence is waning and this is ominous for our stock and bond markets going forward. The article says that the U.S. economy is flashing ‘mixed’ signals after seven years of expansion. New figures show GDP averaged a paltry 1% for first half of 2016 (seasonally adjusted). Comparable election periods reveal that ‘confidence’ was 105.6% during 1988 (Ronald Reagan’s election), 112.0% in 2000 (Bill Clinton’s election), 56.4% in 2008 (George W. Bush’s election), and currently 90.0% (under Barack Obama, July 2016). This is down from June’s number of 93.5%. All this is now a trend in motion which I sense will continue. This is ominous as ‘confidence’ is key to growth and investing. Watch out if this trend continues!

Michigan Consumer Sentiment

As I mentioned in my prior missive, confidence is KEY to growing stock markets. Our markets live within cyberspace and this means that declining ‘confidence’ can set of ‘short’ selling via our HFT computer machines. Algorithms and code which follows key indicators can set off another ‘flash’ crash or worse. The ingredients for a crash have been present for months, but our Central Banks and their trading desks have prevented this event from happening. Yes, our Central Banks now trade the markets to rig and manipulate the greater results. There is no free market and our money consists of ‘imaginary’ digits in the computer screen.

Confidence has been ‘pumped’ up with Central Bank manipulations! This may now be changing!

To protect your savings it may be wise to purchase some physical assets (silver/gold coins and similar assets). I purchase coins that I can convert into any fiat/digital currency if I so choose. I also can barter with these coins which is an option which I like. Virtual money within your computer screen can disappear and/or be cut off by the banking authorities. Even the electrical power grid could go down and then all your cyber money is unavailable. Given today’s markets, it is wise to prepare for the unexpected. Look outside and notice the birds chirping and the owls howling. Cyberspace (where our money lives) is merely within our extended consciousness. I call our cyber money…money from heaven. It’s basically worthless for trading when the markets collapse. Enjoy! I am:

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