16/01/2016

Hope & Change, Unicorns and Cognitive Dissonance - by Jeff Fitchett

(January 15th week in Review)

I hardly know where to begin as it pertains to this week’s ‘weekly review’ letter. There is so much going on globally that deserves our attention and understanding. At this point in time you probably sense that things are not great in our world. Stocks markets have been pummelled, the Canadian dollar is dropping like a stone (along with many other currencies), the cost of food is skyrocketing and our general standard of living is becoming harder to maintain. I often notice that people seem to think that we are somehow different than Greece, Portugal and other countries that have experienced economic and social decline. We are no different and we will experience the repercussions of a system that is not sustainable.

Leaders and the media constantly tell us that things are good, that growth is just around the corner and that the outlook will improve shortly. As well, we were recently told that a low Canadian dollar is good for our exports (that’s hogwash unless you enjoy paying more for stuff). This week I was told by someone I know personally that my views are just a “theory” and that my assessment is wrong. Cognitive dissonance is a dangerous state of mind for people to have especially when the ramifications will be so detrimental to them.

I see the world as a matrix in which we are conditioned to see things through a filtered view. Reality is much different than what we are lead to believe. The movie the Matrix highlights this phenomenon (Matrix explanation). Our education system is highly influenced by corporations and special interest groups. Politicians paint a reality that is full of illusion and lies and our economy is based on a foundation that is not sustainable (debt).

On January 12th, Barack Obama presented the 2016 State of the Union Address. True to form, he painted a picture that was predominantly fiction. He even went so far as to saying that anyone who disagrees with his assessment is “peddling fiction”.

"Anyone claiming that America’s economy is in decline is peddling fiction. What is true — and the reason that a lot of Americans feel anxious — is that the economy has been changing in profound ways, changes that started long before the Great Recession hit and haven’t let up.”

“Let me start with the economy, and a basic fact: the United States of America, right now, has the strongest, most durable economy in the world. We’re in the middle of the longest streak of private- sector job creation in history. More than 14 million new jobs; the strongest two years of job growth since the ’90s; an unemployment rate cut in half. Our auto industry just had its best year ever. Manufacturing has created nearly 900,000 new jobs in the past six years. And we’ve done all this while cutting our deficits by almost three-quarters.”

“The state of the union is STRONG”

President Obama’s statements are delusional to say the least. I am an analyst by trade and I am constantly digging into data to make sense of the world around me. Lets take a look at how the US has faired under Obama over the last 7 years. I think that the charts will speak for themselves:


I often feel like I’m reading a George Orwell novel as I scan the news these days. There is so much disinformation being spewed out that I feel dumbfounded. Does anyone actually believe that the US spreads freedom and democracy to our world? We are told that; “They hate us because of our freedoms” and that is why they attack Western countries. I’m sure it has nothing to do with the endless streams of war that is perpetuated by the West onto disadvantaged populations (sarcasm).

“War is peace. Freedom is slavery. Ignorance is strength.” - George Orwell ‘1984’

As you can probably sense from the tone of this letter; I am not impressed with the direction we are heading as a society. As I have stated before, we have the ability to do wonderful and amazing things. Problems create opportunities for us to deal with. The first step is acknowledging that there is a problem. I love this clip and I think it highlights perfectly what I’m trying to convey:

(please note there is some profanity, but the message is clear and is worth watching)

Emails Prove Hillary Knew Libyan Rebels Were Conducting Ethnic Cleansing

“On New Year’s Eve, the State Department released 3,000 new Hillary Clinton emails from her tenure as secretary of state. While much of the corporate media dove into investigating pointless gossip, Brad Hoff at the Levant Report decided to look for more clues into understanding the epic failure that was the 2011 war on Libya by the US and NATO. What Hoff discovered in the emails was Secretary Clinton being briefed by a trusted advisor, Sidney Blumenthal, on a events in Libya where Clinton’s public statements appear to contradict her private understanding. The issues range from the early presence of special forces and al Qaida-linked militants on the ground to the material motivations of France (gold, oil). And, of course, more evidence that Clinton knew the claims about Qaddafi issuing Viagra to troops for rapes were bogus.” Click to Continue Reading

Jim Rickards: Obama Ending Alliance with Saudi Arabia and Killing the Petrodollar

This is an interesting video to watch. It’s worth a view if you are interested in a projection for the US dollar, deflation, gold and the economy. What is interesting to me is that the video was published in the Fall of 2014. Jim’s insights are very good. Here’s his bio: Click to read bio


Mike Maloney Presenting at a Russian Bankers Conference in 2010

This is an excellent presentation for you to watch. Mike goes into great detail as to how money is created, debt, the coming financial crisis and other projections. He does not hold back whatsoever and everything that is happening today is what he foresaw back in 2010. You can see the concern he has, the sense of urgency and the fact that he cares. Personally, I know how hard it is to communicate to people who do not see what is really going on in the world. It is difficult to wrap your head around the complexity of our monetary and financial system. For the past 8 years I have been trying to help people understand what is going on and how to take meaningful steps to prepare for what is transpiring. Click to watch the presentation

US Empire Fed Index - (the shaded red areas are recessions)


The Empire Fed Index printed a brutal -19.37. New factory orders collapsed, shipments plunged, and employees and workweeks continue to contract. Future employment expectations also dropped. The last time the Empire Fed plummeted to these levels was in the immediate aftermath of the Lehman Brothers bankruptcy and the global financial crisis in 2008.

Financial collapse leads to war

Dimitri Orlov is one of my favourite commentators on current affairs. He has first hand knowledge of what a country goes through in a financial collapse. He articulates his thoughts very well and I agree with his assessment.

“Scanning the headlines in the western mainstream press, and then peering behind the one-way mirror to compare that to the actual goings-on, one can't but get the impression that America's propagandists, and all those who follow in their wake, are struggling with all their might to concoct rationales for military action of one sort or another, be it supplying weapons to the largely defunct Ukrainian military, or staging parades of US military hardware and troops in the almost completely Russian town of Narva, in Estonia, a few hundred meters away from the Russian border, or putting US “advisers” in harm's way in parts of Iraq mostly controlled by Islamic militants.”


Ron Paul Says to Watch the Petrodollar

Ron Paul is one of very few US politicians that I have respect for. He retired in 2013 after being a congressman for over three decades. He is an honourable man who respects the US constitution, human rights, is against war (foreign entanglements) and advocates for sound money. The article below is a very quick read and worth a gander.

“The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better. - Ron Paul”   Click to Continue Reading

Final Thoughts

In my December newsletter I warned that currency wars, trade wars and war were likely to occur. I also stated that stock markets will collapse. This is happening right now. For those who think buying bank stocks and other blue-chip investments are a good idea right now, I challenge you to take a step back and think long and hard about what is going on. Past performance in most sectors has been driven by central banks printing money and lowering interest rates. The endgame is right now. Any bounces in equity prices should be used as an opportunity to sell.








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