12/02/2016

Trivium Analytics Canada - Weekly Review - February 12, 2016 - by Jeff Fitchett


General Thoughts

My youngest daughter, Zoe, is involved with competitive gymnastics and she trains 3 days a week for 4 hours each session. We live in a small farming town about 45 minutes from London, Ontario. This past Wednesday the weather wasn’t great. We got hit with a lot of snow during the day. The weather radar indicated that the snow fall was going to minimize into the early evening and then pick up again overnight. Zoe has a competition next week and I know it is important for her to get in as much training as possible leading up to her event. At the same time, I am cognizant of the dangers of driving in rural areas during snow squalls and icy road conditions. 

I always make sure that I have an abundance of gas in my tank, my parka, boots, gloves and a warm hat.  You never know what can happen when you least expect it.  On our way home from London, around 8:30pm, I was driving along a stretch of rural highway that was slippery, but clear.  I was driving about 75km/h (15km/h under the speed limit).  There was a truck behind me back about 100 metres back.  All of a sudden, I noticed in my rear view mirror, that the truck’s lights pointed off to the right and I watched as the truck went off the road, flipped over, the trailer it was towing  swung up into the air and came crashing down.  The truck and trailer spun around 180 degrees.  “Oh shit, oh shit, oh shit” was coming out of my mouth.  I quickly turned my Jeep around and headed for the accident.  A passing truck pulled over as well.  I ran over to the accident scene.  

The driver of the passing truck was in a state of panic.  She had called 911 and was hysterical.  She said to me, “there are people in the truck…I don’t know where we are” and passed her phone to me.  I ran down to the upside down truck and opened the door as they kicked from the inside.  A woman and her young baby both stared at me.  I could see that the mom was shaken badly and was in shock.  I said to her, “pass me your baby.  She was hesitant, but passed me her baby.  It was dark and extremely cold with strong winds.  I asked if there were horses in the trailer and she said “yes”.  The mom got out of the truck and I instructed the woman, who was the  driver of the passing truck, to take the baby and bring her inside her warm truck that was parked up on the shoulder of the road. I told the 911 operator approximately where we were located. The male driver finally emerged from the truck.  I was relieved to see that the family was ok.  I opened the side door of the horse trailer and noticed that both horses were on their sides.  The one horse was laying slightly on top of the other horse.  The male driver went into the trailer to check on the condition of the horses.  They seemed very scared, but otherwise ok.  I ran back to my Jeep and moved it into a position so that the entire truck and trailer were illuminated by my lights. I went back down to the trailer to hold up my cellphone light so that the couple could see their horses in more detail.  I looked up at the road and noticed another truck with a horse trailer approaching.  I handed my phone to the wife and ran up to the side of the road to get the truck with the horse trailer to stop.  I couldn’t believe our luck given that I knew we would need to somehow transport the horses once they were freed. I then went back down into the ditch and started digging out the snow by the rear of the horse trailer.  The fire department and police would be on their way so I figured they will need the area cleared given that the snow was up to my waist in the ditch.  

The fire department finally arrived and I ran up to the first truck and told the first responder that everyone was ok, that there were horses trapped in the upside down trailer and that we needed them to open up the back of the trailer.  He confidently said; “we can do that!”.  I smiled and then ran back down to finish clearing the area.  By that time a neighbour was helping shovel out the area as well.  Eventually, the horses were freed, the mom was sitting in an ambulance with her young baby and the male driver was giving a statement to the police.  Luckily, everything worked out in the end.  It was quite the spectacle as there were 3 fire trucks, 2 ambulances and at least 4 police cars at the scene.  


The reason I’m telling you this story is because I want to relate it to the world we live in and what is going on today.  I made a conscious decision to prepare for the conditions in which I was driving in Wednesday night.  When I look at the world today; I liken it to harsh Winter conditions.  There is so much instability right now and a disaster is just waiting to happen.  Anyone who chooses to ignore the conditions and warning signs, in which we live in today, could face significant hardship in short order.  I can’t stress this point enough.  Further on in this week’s newsletter I will share another very personal story that will highlight what can happen to anyone when hard times occur.  If you are currently investing your life savings in “traditional” investments and think this is just a dip we are experiencing in the financial markets I strongly believe you are deluding yourself.  There is no fundamental basis to support your way of thinking and the only support that you are getting are from vested interests coming from the presstiute media, financial pundits and politicians who are “peddling fiction”. I strongly urge you to think about what would happen to you if you lost your job, your pension or there was a major disruption of the systems we rely upon. I apologize for coming across in an unpleasant manner.  I pass on my thoughts to you because I care.  Years ago, before Greece entered into their depression or the so called ‘Arab Spring’ occurred I saw the warning signs clear as day.  I wrote about those issues before the mainstream press even mentioned a word.  The systemic issues are global in nature and everyone will be impacted by this paradigm shift.  

Unsound Banking: Why Most of the World’s Banks Are Headed for Collapse 

My comment: This is an excellent article by Doug Casey of Casey Research.  Banking has morphed into a parasitic industry that is destroying society and causing great hardship at an ever increasing rate.  Please read the full article.

You’re likely thinking that a discussion of “sound banking” will be a bit boring. Well, banking should be boring. And we’re sure officials at central banks all over the world today—many of whom have trouble sleeping—wish it were. This brief article will explain why the world’s banking system is unsound, and what differentiates a sound from an unsound bank. I suspect not one person in 1,000 actually understands the difference. As a result, the world’s economy is now based upon unsound banks dealing in unsound currencies. Both have degenerated considerably from their origins.”  


Did Financial Giant Goldman Sachs Just Admit the System is Rigged? 

My Comments:  In this interview, Bill Black with The Real News explains why one of the world's largest investment firms, Goldman Sachs, questions the "efficacy of capitalism" and why its CEO is terrified of a Sanders presidency.  As I have stated in numerous articles; the financial markets are rigged and the to big to fail banks control politicians. I’m a political atheist and I think our current political process has been severely corrupted. No ‘traditional’ political party will stray from the current path we have been on for decades.  Major policy changes are required to deal with the challenges that are afflicting our society.  


This Is The NIRP "Doom Loop" That Threatens To Wipeout Banks And The Global Economy - Zero Hedge

My Comments: This is a good article that highlights the negative feedback loop that negative interest rate policies cause.  We are in the beginning stages of a major credit crunch that will cause serious reverberations for society in the months and years ahead. 

“Negative rates weaken banks whose profits are already crimped by the new regulatory regime, sharply lower revenue from trading, and billions in fines. Weak banks then pull back on lending, thus weakening the economy further and compelling policy makers to take rates even lower in a self-perpetuating death spiral.”  



The following items I’ve posted on my website this week:

Financial Markets, Change and Action - by Jeff Fitchett

If you are invested in blue chip dividend paying stocks, bonds, high yield bonds (junk bonds), ETF's, emerging market investments, regular equity and fixed income mutual funds, etc; I challenge you to think about why you are investing in these types of investments.  If you hold bank stocks or other financial industry related stocks; what is your rationale for holding these companies?  Take blind faith out of the equation and seriously think about the outlook for banking.  Do you hold any investments related to transportation (railways, trucking, cargo ships, couriers)?  Do you own commodity extractors involved with iron ore, copper, zinc, coal, timber, aluminum, base metals, oil, etc.?  Do you hold consumer staples and consumer discretionary stocks & bonds?  Do you own REIT's and home building related stocks?  What are the positive catalysts in owning any of these sectors?  You need to think long and hard about the repercussions that will occur when you lose the bulk of your life savings.  Now is the time to be contemplating your investment strategy as government benefits such as pensions, health care and other government funded entitlements will not be around to support you.  I am extremely comfortable making these statements because the basic math does not add up.        


The Strange, Sophomoric World of State Department Spokespersons - Zen Gardener

My comment - I comment frequently on the disinformation that government and media report.  This is a short article that discusses this phenomenon.  As well, Zen Gardner provides excellent information.

"Anyone wondering why the rest of the world sees the US administration as insane — or worse — need only spend a few minutes watching a daily briefing from the White House or especially the US State Department. These are not endeavours by intelligent and rational representatives of the US government to help explain US policies to the press corps and thereby to the rest of the world, but rather mind-numbingly sophomoric and barely literate diatribes.”   


Four Horseman

My Comments - We are living in an era of great change.  The USA's dominance as an empire is ending. Our way of life is devolving rapidly.  Please consider watching this documentary so that you can get an understanding of the machinations that run our global financial system and society. It’s a great documentary!    


Take Steps NOW To Survive The Collapse -- Chris Martenson with SGT Report

My Comments: I highly recommend you listen to this interview.  Economic collapse is a process that takes years to manifest and play out.  Chris Martenson is an excellent presenter and he connects the dots in an easy to understand manner.  The title of this interview might sound extreme, but rest assured the information is not hyperbolic.   


My Personal Observations Of Collapse - by Jeff Fitchett

Collapse has been garnering more attention since the 2008 financial crisis.  In the 1970's many people feared that the United States of America was on the brink of collapse.  Inflation was running extremely high and confidence in the US dollar was dissipating.  Many people worried about the fate of society and this triggered a back to the land movement.  Publications such as Mother Earth News sprouted up and provided information on self-resiliency.  Paul Volcker, the former Federal Reserve Chairman, raised interest rates to over 20% in an effort to combat inflation and regain confidence in the US dollar.  Today, we are facing similar issues as many people are extremely concerned about the systemic issues that are plaguing our world.    


GOP Candidates Compete Over Who Will Commit Most War Crimes Once Elected - by Murtaza Hussain and Dan Froomkin

My comment - One of the signs of a fading empire is the degradation of government and the absolute abuse of human rights and civil liberties.  The article below should concern you deeply and make you think long and hard about where we are heading as a civilization.  This is an important article for everyone to read. 

"At a rally in New Hampshire on Monday night, Donald Trump was criticizing Ted Cruz for having insufficiently endorsed torture — Cruz had said two nights earlier that he would bring back waterboarding, but not “in any sort of widespread use” — when someone in the audience yelled out that Cruz was a “pussy.” Trump, in faux outrage, reprimanded the supporter, repeating the allegation for the assembled crowd: “She said he’s a pussy. That’s terrible. Terrible.” 


Final Thoughts

I do not enjoy being the bearer of bad news.  I am an optimistic person who happens to specialize in areas that the average person may find hard to understand.  My goal is to not create fear, but provide useful information that you can use to help with your own unique situation.  I suspect that the turmoil we have been witnessing will continue to intensify as time passes.  Our government, with the support of mainstream media, will try to lead us to believe that everything is fine and that this is just a temporary set back.  I do not believe this to be the case.  Systemic issues cannot be solved by papering them over with words.  I have yet to see any real leader step forward with ideas that will provide a road map for dealing with the problems humanity faces.   

 All the best!

PS: Please email me directly if you would prefer to receive this newsletter in pdf format.  

Jeff Fitchett B.A., FMA, CIM
Analyst - Trivium Analytics Canada
226-448-4747
jeff.fitchett@triviumanalytics.ca 

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