04/03/2016

Trivium Analytics Canada - Weekly Review March 4, 2016 - by Jeff Fitchett

“When life itself seems lunatic, who knows where madness lies? Perhaps to be too practical is madness. To surrender dreams — this may be madness. Too much sanity may be madness — and maddest of all: to see life as it is, and not as it should be!” 
General Thoughts
Stock markets have pushed higher over the past month and fixed income investments, such as high yield bonds, are garnering significant capital inflows.  I wrote an article earlier in the week titled “Peddling Fiction” and in the article I highlighted the fact that the media is influencing the masses to believe that the economic recovery is still intact and that there are multiple positive signs to stand behind.   
You may wonder if the volatility we witnessed in January was just a random move in the markets, but economic activity is cratering at the fastest pace we have seen since the 2008 financial crisis.  I analyze economic data on a daily basis.  I see clearly what is transpiring around the globe.  I frequently reference Aldous Huxley and George Orwell because they were proficient at seeing what the future holds.  Trends take a long time to play out and the establishment does their best to keep a facade in place so that confidence remains in the collective mindset.  Huxley and Orwell predicted the world we currently live in and their warnings were ignored.  There are many warning signs that are being ignored by the majority of people.
Over the coming months I expect more sovereign nations will promote and initiate negative interest rates.  Japan and a number of European nations currently have negative interest rates.  From a cause and effect standpoint I expect the reaction from people will be a flight out of bank deposits and a hoarding of physical cash. Japanese citizens are buying safes at a record pace as they withdraw their money from bank accounts and store it at home.  
I think many nations such as the US and areas such as the Eurozone will institute a ban on physical cash.  I have read quite a few op-eds in mainstream newspapers lately from people like Larry Summers and their message is to ban physical cash or specific denominations of fiat currency.  
Few people are able to grasp the severity of what a cashless society will entail.  A ban on cash will result in us losing more of our civil liberties.  Governments are promoting the militarization of police forces, they are encouraging a breach of our privacy through draconian legislation that allows for the collecting of our digital information and slowly we are losing our financial security as more of our tax money is being used to pacify the masses.  A ban on cash will allow the government to track every move we make from a financial perspective and it will lock us into a system that is collapsing under the weight of too much debt.  Cypress was the first nation to experience a bail-in.  A bail-in occurs when a bank collapses from too much debt and bank deposit holder’s money is used to fund the bail-out of the bank.  In 2008, taxpayers bailed-out the banks, but going forward it will be you personally bailing-out the banks.  Gold and silver are going up in price big time right now because a small minority of the population is figuring out what I have just explained.  I think people are nuts to rely on politicians, central bankers and the mainstream media.  For those people living in Ontario, Canada look no further than our premiere and the policies that she is implementing.  
The New Mind Control - by Robert Epstein 

Jeff Fitchett: I often mention the fact that we are manipulated and indoctrinated to behave and think in a collective manner. The article below is one of the most important articles I’ve read this year as it pertains to how our minds are influenced.  Please consider reading the entire article because the information is thought provoking and should cause you great concern.

“Over the past century, more than a few great writers have expressed concern about humanity’s future. In The Iron Heel (1908), the American writer Jack London pictured a world in which a handful of wealthy corporate titans – the ‘oligarchs’ – kept the masses at bay with a brutal combination of rewards and punishments. Much of humanity lived in virtual slavery, while the fortunate ones were bought off with decent wages that allowed them to live comfortably – but without any real control over their lives.”

“In We (1924), the brilliant Russian writer Yevgeny Zamyatin, anticipating the excesses of the emerging Soviet Union, envisioned a world in which people were kept in check through pervasive monitoring. The walls of their homes were made of clear glass, so everything they did could be observed. They were allowed to lower their shades an hour a day to have sex, but both the rendezvous time and the lover had to be registered first with the state.”

“In Brave New World (1932), the British author Aldous Huxley pictured a near-perfect society in which unhappiness and aggression had been engineered out of humanity through a combination of genetic engineering and psychological conditioning. And in the much darker novel 1984 (1949), Huxley’s compatriot George Orwell described a society in which thought itself was controlled; in Orwell’s world, children were taught to use a simplified form of English called Newspeak in order to assure that they could never express ideas that were dangerous to society.”

“These are all fictional tales, to be sure, and in each the leaders who held the power used conspicuous forms of control that at least a few people actively resisted and occasionally overcame. But in the non-fiction bestseller The Hidden Persuaders (1957) – recently released in a 50th-anniversary edition – the American journalist Vance Packard described a ‘strange and rather exotic’ type of influence that was rapidly emerging in the United States and that was, in a way, more threatening than the fictional types of control pictured in the novels. According to Packard, US corporate executives and politicians were beginning to use subtle and, in many cases, completely undetectable methods to change people’s thinking, emotions and behaviour based on insights from psychiatry and the social sciences.”


Gold Stocks Have a Long, Long Run Ahead! - Rick Rule 

Jeff Fitchett: This is a good interview to listen to.  Rick Rule always speaks in an articulate manner and he goes into great detail about the precious metals sector.


Gold and Silver Shortages Coming This Year - Andy Hoffman

Jeff Fitchett: I respect Andy Hoffman’s opinions.  I don’t agree with his take on oil, but I agree with pretty much everything else he talked about in this interview.  I think he underestimates the geopolitical issues surrounding Saudi Arabia and Middle East oil supply. There is a fine line between supply and demand that can easily reverse one way or another.  Specifically, we currently have too much supply hitting the market as demand as dropped because of depressed global trade.  We are one disruption away from not having enough oil.  I agree with Andy in that oil prices could stay extremely low for a long period of time, but any disruption in oil supply will cause prices to spike in short order.  In addition, over the medium term oil prices will likely move higher as many oil & gas companies have gone bankrupt, will go bankrupt and exploration and expansion projects have declined drastically.  

  
Ukraine Bans Criticism Of The Government - by Zero Hedge

Jeff Fitchett: As governments and society collapse, Orwellian laws are passed.  The rot starts in developing nations and slowly creeps into developed countries such as the US.  Ukraine's new law does not surprise me and you will soon notice that most Western countries will initiate similar policies.  There are two sets of laws in most countries: One set of laws are for the elites & corporations and the other laws apply to the 99%. 


BC Hydro - Human Impact of Site C Dam

Jeff Fitchett: As you are likely aware, I have little ‘faith’ in government and corporations.  Profit trumps people.  A docile population allows for the powers that be to impose policies that destroy lives.


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

Peddling Fiction - by Jeff Fitchett

Everything in the economy must be awesome because the Dow Jones Industrial Average is up over 300 points today!  Reuters reported that; "Wall Street Surges as data points to economic recovery". Bloomberg followed up with; "US stocks rally with emerging assets on data, Chinese stimulus".   CNBC added; "Dow adds 300 as oil rises, Apple rallies 4%". Perhaps I've been peddling fiction given my bleak outlook for the US and pretty much every other nation globally.  

Obviously I'm being facetious about the headlines and my comment about me peddling fiction.  The truth is, media organizations are the ones peddling fiction.  They remind me of a group of cheerleaders trying to excite a stadium full of screaming fans: USA, USA, USA!  We all know that the financial markets are rigged.  Take a look at this chart courtesy of Yardeni.com  and ZeroHedge:


Cash is the currency of freedom - by Glenn Reynolds

Jeff Fitchett: I agree with Mr Reynolds' assessment.  His article is short and to the point.  I think anyone who is paying attention knows that negative interest rates and a ban on physical cash will be attempted by the powers that be.  It is important to move your life savings out of the financial system and into assets that you have physical control over.   

"Former Treasury secretary Larry Summers wants to get rid of the $100 bill. But I think he has it exactly backward. I think we need to restore the $500 and $1000 bills. And the reason is that people like Larry Summers have done a horrible job.”  


Economic Recovery? 13 Of The Biggest Retailers In America Are Closing Down Stores - by Michael Snyder

Jeff Fitchett: As always, Michael Snyder provides facts to support his assessment.  

"Barack Obama recently stated that anyone that is claiming that America’s economy is in decline is “peddling fiction“.  Well, if the economy is in such great shape, why are major retailers shutting down hundreds of stores all over the country?  Last month, I wrote about the “retail apocalypse” that is sweeping the nation, but since then it has gotten even worse.  Closing stores has become the “hot new trend” in the retail world, and “space available” signs are going up in mall windows all over the United States.  Barack Obama can continue huffing and puffing about how well the middle class is doing all he wants, but the truth is that the cold, hard numbers that retailers are reporting tell an entirely different story.” 


It's Official: Canada Has Sold All Of Its Gold Reserves - by Zero Hedge

Jeff Fitchett:  I have zero faith in governments or central banks.  I am a political atheist.  Mainstream politicians & monetary authorities are repeating the same failed policies over and over again.  What's the definition of insanity…?

One month ago, when looking at the latest Canadian official international reserves, we noticed something strange: Canada had sold nearly half of its gold reserves in one month. According to the February data, total Canadian gold reserves stood at 1.7 tonnes. That was just 0.1 per cent of the country’s total reserves, which also include foreign currency deposits and bonds.  

As we noted, the decision to sell came from Finance Minister Bill Morneau’s office. “Canada’s gold reserves belong to the Government of Canada, and are held under the name of the Minister of Finance,” explained a spokesperson for the Bank of Canada on Wednesday. “Decisions relative to gold holdings are taken by the Minister of Finance.”

Reached by Global News on Wednesday evening, a spokesperson for the finance department said the sale “was done in the normal course of business for the government. The decision to sell the gold was not tied to a specific gold price, and sales are being conducted over a long period and in a controlled manner.”   Click to read article

Exclusive Interview with Keith Neumeyer on Metals, Mining, and Manipulation - Money Metals Exchange

Jeff Fitchett: I respect Keith Neumeyer immensely.  I have investments in both First Majestic Silver and First Mining Finance.  This interview is worth listening to if you invest in precious metals.  


Final Thoughts

For anyone looking to become more self-sufficient you should consider checking out the Home Grown Food Summit that starts on March 7th. It is an online summit and they are offering over 30 presentations for free. I have interacted with a number of the presenters over the years and I highly recommend this initiative. Geoff Lawton, who instructed the permaculture design course I completed, will be presenting as well. I can’t say enough good things about him!  Like Geoff Lawton, Marjory Wildcraft understands the troubles we face from an economic and ecological perspective.  This has driven her to help other people become more prepared for the changing times.  I’m often asked; “what can I possibly do given that the problems we face are so big?” You can control your own actions and take steps that will help you become healthier, happier and less reliant on the existing food & financial systems. 

I strongly advise everyone to become more aware of the world around us.  I marvel at how fast our society is changing and how quickly the powers that be are implementing policies that will further degrade our existence.  Individually we each have the ability to take action, in our own small way, to better our situation. 

“Because while the truncheon may be used in lieu of conversation, words will always retain their power. Words offer the means to meaning, and for those who will listen, the enunciation of truth. And the truth is, there is something terribly wrong with this country, isn't there? Cruelty and injustice, intolerance and oppression. And where once you had the freedom to object, to think and speak as you saw fit, you now have censors and systems of surveillance coercing your conformity and soliciting your submission. How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror. I know why you did it. I know you were afraid. Who wouldn't be? War, terror, disease. There were a myriad of problems which conspired to corrupt your reason and rob you of your common sense. ” 
Alan Moore, V for Vendetta

I wish you all the best! 

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

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