Trivium Analytics Canada - Weekly Review - March 11, 2016 by Jeff Fitchett

“There is pleasure in the pathless woods, there is rapture in the lonely shore, there is society where none intrudes, by the deep sea, and music in its roar; I love not Man the less, but Nature more.”   Lord Byron

General Thoughts
The big news in our world this week, from a financial perspective, was the European Central Bank’s monetary policy change.  Mario Draghi, the head of the ECB, announced that they are going to increase their current quantitative easing program (printing currency out of thin air) by €20 billion per month, bringing the total asset purchases to €80 billion per month.  They will also begin buying corporate bonds and have lowered interest rates. In fact, interest rates for the central bank’s deposit facility will now be -0.40%.  

Interestingly, the ECB also released the transcript from an interview that was conducted with the Guardian newspaper.  Here are a few questions and subsequent answers: 

Are you worried about the position of young adults in Europe and is this an increasingly urgent issue?

“Youth unemployment is a tragedy and prevents people from playing a full and meaningful part in society. If every second young person is out of work – as is still the case in some countries in Europe – it seriously harms the economy, because people willing to work cannot work and skills are not developed. And it threatens social harmony. Unemployment can lead in the long run to increased social problems and ill-health.”

What might be the forces at work here - demographics / changing workplaces / fiscal-monetary policy - that mean that young adults appear to be receiving little of the rewards of two and half decades of average economic growth?

“Nobody stays young forever. The crucial question is whether a person can participate fully in the economy over his or her life-time – get a good education, find a job, buy a home for the family. Income and wealth follow. What makes me worry is that increasing inequality might prevent people from doing that. This is an issue all our societies need to look at carefully. The ECB’s role in that is to maintain price stability, which prevents unfair redistribution. For example, our research shows that in the euro area too low inflation results in redistribution from younger, more indebted households to older households that are typically net creditors.”

What can central banks/governments do to ease/resolve these issues?

Everyone has a vital interest in a prospering economy. So bringing down high levels of youth unemployment is a priority for everyone. As I said, the best contribution central banks can make here is to live up to their mandates. We can only encourage elected governments to take the necessary steps to create jobs and make their societies fairer. Over the longer-term, by far the most important thing for young people is investing in education and skills. Skills are a person’s passport through life, and in a fast-changing digital economy, the premium paid for skills is only likely to rise. Equipping people for tomorrow’s world is the best way to raise incomes and reduce inequality.” 

Proponents of central bank policy believe that central banks staved off the collapse of the world’s financial system and have provided an environment of stability.  They believe that it is now up to governments to implement structural and fiscal policies that will ensure longterm economic prosperity.  The fundamental flaw in central bank policy stems from the fact that the world economy is based on debt.  Central banks are responsible for creating the biggest debt bubble in human history.  They, along with governments, have for decades worked in concert to produce engineered economic growth.  We no longer have business cycles.  We no longer have free and transparent price discovery in the capital markets.  The two biggest examples are the current valuations of stocks and bonds.  Stock values are overvalued by epic proportions and the yields on bonds do not reflect the underlying risk associated with owning the debt of companies and governments.  How is it possible in a free and open market to lend money to a government at negative interest rates?  It is madness!  It makes no sense whatsoever.  Debt steals growth from the future and brings it forward to the present.  

Moreover, ‘we the people’ are voting for politicians to perpetuate failed government policies.  We are allowing for future generations to be enslaved with debt that is created today for the benefit of us.  I find it appalling that we are so short term focused and are milking the last drips of prosperity.  An economy based on debt has no future.  Structural and fiscal policy changes should have been implemented long before the debt bubble was created.  Sound money died back in 1971 when Nixon removed the US dollar from the gold standard.  The World’s reserve currency is backed by military might and oil being priced in US dollars  Younger and future generations will never have the same standard of living that baby boomers have enjoyed over the past decades.  We are currently sitting on the vista of the ‘good old days’.  

Large multinational corporations have coerced governments to sell out the citizenry.  Inequality is increasing at a terrifying pace and societal collapse is a real possibility in the foreseeable future. Short term corporate profits are looting the wealth of the 99%.  It is a negative feedback loop that will leave us all impoverished as governments are forced to cutback on social programs such as healthcare and pensions.  Financial market instability will rob us of our life savings.  Only you have the ability to take control of your future and safeguard your financial and emotional position in life.  It’s hard to imagine that a university education will be pointless for younger and future generations.  What will be the point of spending tens of thousands of dollars on an education that will not pay back financially because of a lack of jobs available in the future?  I’m sure young people in Europe, who are unemployed, contemplate the value of the education they received.  Youth unemployment in many European nations is over 50%.  In addition, the Western world is predominantly creating part-time minimum wage jobs. I encourage you to stay informed and make decisions based on reality and not what you are being told.  

Propaganda, rigging, manipulation and lies are all words we hear when thinking about the financial markets, politicians and mainstream media.  If you find yourself hesitant to accept that we are manipulated and indoctrinated check out these videos: 
If you feel like going down the rabbit hole further contact me and I’ll provide you with as much information as you like. 

System Already Failed & Coming Apart - Gregory Mannarino with Greg Hunter

Jeff Fitchett: I agree with Gregory’s assessment on the economy and financial markets.  Get out of the market now because equities and bonds will drop perilously as economic conditions continue to decline.  Accumulate hard assets such as gold and silver.  

How Vancouver Is Being Sold To The Chinese: The Illegal Dark Side Behind The Real Estate Bubble by Zero Hedge
“One month ago, when describing the latest in an endless series of Vancouver real estate horror stories, in this case an abandoned, rotting home (which is currently listed for a modest $7.2 million), we explained the simple money-laundering dynamic involving Chinese "investors" as follows.”

Wholesale Inventories

The US Commerce department  announced that inventories ‘unexpectedly’ dropped in January amid slowing sales. The calculation does not include auto sales.  Just an FYI, auto inventories also moved higher as sales dropped.  Don’t worry though, we have been reassured from government sources that the economy is still in recovery!  

'S**t show': Obama blames UK & other European states for post-Gaddafi Libya ‘mess'

Jeff Fitchett: With over 700 military bases in over 100 countries, the US is the most destructive force in our world today.  President Obama has a propensity to blame others and ‘peddle fiction’.

“US President Barack Obama has blamed UK Prime Minister David Cameron and other European leaders for the current chaos in Libya, saying he had “more faith” in them being invested in the follow-up, given Libya’s proximity.”

“Speaking to The Atlantic, Obama acknowledged the problems faced by Libya since the fall of Gaddafi in 2011, referring to the situation as a “mess” – and in private as a “s**t show.”

“...We actually executed this plan as well as I could have expected: We got a UN mandate, we built a coalition, it cost us $1 billion — which, when it comes to military operations, is very cheap. We averted large-scale civilian casualties, we prevented what almost surely would have been a prolonged and bloody civil conflict. And despite all that, Libya is a mess,” he said.”

Education Is a System of Indoctrination of the Young - Noam Chomsky

Jeff Fitchett: Noam Chomsky is an American linguist, philosopher, cognitive scientist, historian, logician, social critic, and political activist. He is a leading critic of U.S. foreign policy, neoliberalism, state capitalism, the Israel–Palestine conflict, and mainstream news media. (wikipedia) I respect his efforts to enlighten people.  

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

Chinese exports and imports reflect global economic reality - by Jeff Fitchett 

Jeff Fitchett: Follow the economic chain. Commodity based countries are getting hammered because manufacturing countries such as China are cratering.  Consumer driven economies such as the USA and European Union are plunging into a depression. China's latest economic data is a massive warning for investors to heed.  There is no economic recovery and there never was. 

•Chinese exports collapsed 25.4% YoY.
•Chinese imports plummeted 13.8% YoY

Former Fed President: "We Injected Cocaine And Heroin Into The System To Create A Wealth Effect" - by Zero Hedge

Jeff Fitchett: This article and video sum up central bank policy.  It's all a facade.

Just two months ago, former Fed President Dick Fisher admitted that "The Fed front-loaded an enormous market rally in order to create a wealth effect." Today he is back, taking a victory lap onthe 7th anniversary of the crisis lows by explaining, rather stunningly, to CNBC that "we injected cocaine and heroin into the system" to enable a wealth effect (that he admits did not work, despite its success in raising asset prices), and "now we are maintaining it with ritalin." Fisher also confirmed his previous warning that "The Fed is a giant weapon that has no ammunition left."

Fisher explains how The Fed achieved its goals... but admits that didn't really fix anything...

The individual vs. the psyop called Reality - by Jon Rappoport

Jeff Fitchett: I agree whole heartedly with Jon Rappoport.  I have remarked in numerous articles, I have authored, about the process I have undergone to reject the matrix and collectivist thinking.  We have the power to control our own actions and live the life we dream of.  It all starts with understanding the world around us and letting go of the engineered paradigm we live in.  If this article resonates with you I encourage you to read what Jon offers.  He is a fountain of wisdom.

Psychologically, mentally, emotionally, and spiritually divert the individual's attention from his own vision, his own profound desires, his own consciousness, his own imagination---and place it within The Group ("all of humanity”).” 

Will Doom for Central Bankers Mean “Boom Time” for Gold Shares? - John Williams with Jay Taylor

Jeff Fitchett: I always appreciate John's statistical analysis of US government economic statistics.  His data supports my view that US government statistics are fraudulent.  

Mistakes were made - James Howard Kunstler

Beyond the Kubler-Ross maelstrom of denial, anger, depression, etc., besetting this spavined republic, lies the actual grief provoking it all — especially the shocking loss of national purpose embodied by the muppets and puppets onstage nightly vying to bring out the worst in us in an election season far from just silly. Judging from their demeanor in the so-called debates, the candidates seem not only sick of their opponents but of themselves, a fitting outcome perhaps in a nation that hates what it has become.”  

The Shadow World Of The Economic Hitman - John Perkins with Chris Martenson

Jeff Fitchett: This is an excellent interview.  John and Chris highlight the woes of the world and offer solutions that each of us can do.

My comments on Adam Kokesh's video "Why you're not free" - by Jeff Fitchett

In the past, I would periodically watch a video or read an article by Adam Kokesh.  I went through the process that Adam acknowledges within the video shown below.  I took part in protests, signed petitions, ran a website called activistcanada.com and spent endless hours trying to provide information to anyone who would listen.   I was infuriated by the actions of politicians, corporations and the mainstream media.  I still am, but I now use the knowledge I have in a different manner.  I live with more purpose.  I have let go of my frustrations and resentment.  Don't get me wrong; I still get angered from time to time by the actions of predators.

I learned that it was futile to fight a system while living and working within the system. It is very difficult to detach from a paradigm that we are all born into.  As Jon Rappoport highlighted in his article titled 'The Individual vs. the psyop called reality'; "Going back as far as you want to in history, every shortage and scarcity in the world that engendered a crisis was either created by some elite or maintained by them, for the purpose of eradicating dissent and fomenting a collectivist solution. Meaning a solution that came from the top. Meaning a solution that reduced individual freedom."

Final Thoughts

I am very fortunate because I was born into a country that has a higher standard of living than the majority of the world’s population.  I am aware that I was born on third base and that I didn’t hit a triple when compared to people living in destitution.  From a western perspective I am considered average.  Travelling has opened my eyes to the extreme conditions in which people live.  I have seen opulence and desperate poverty.  

Studying the world has afforded me knowledge that I simply cannot ignore.  I feel compelled to report and offer advice because I have seen first hand how bad life can be for people. The course that humanity is following is leading us to the destruction of our social fabric.  Our focus on the economy, social benefits, status and so on are narrow minded.  Our actions are interconnected and what we do has direct impact on other people, species and ecology.  We are transforming our world in a negative way.  

As parents, we need to lead by example and alter the perpetual consumption model that we have been taught to believe in and diligently follow.  As I have remarked over and over; we have the ability to modify our existence and live in balance.  We are capable of so much more when compared to life as it currently stands. 

Here is an excellent film that highlights people from all over the world.  I’m sure you will be provided with some food for thought. 


I wish you all the best! 

Jeff Fitchett B.A., FMA, CIM
Analyst - Trivium Analytics Canada


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