Trivium Analytics Canada - Weekly Review - April 8, 2016 - by Jeff Fitchett

“If Liberty means anything at all it means the right to tell people what they do not want to hear” 
George Orwell

“When the people fear the government there is tyranny.  When the government fears the people there is liberty” 
Thomas Jefferson

“Violence is the tool of the state. Knowledge and the mind are the tools of free people” 
Lew Rockwell

“People willing to trade their freedom for temporary security deserve neither and will lose both” 
Benjamin Franklin

General Thoughts
This week’s biggest news story was about Mossack Fonseca, a Panamian law firm, that was hacked and had four decades worth of documents leaked to the public.  The leaked information detailed the establishment of offshore companies for the global elite.  The most surprising part of this major security breach was the fact that the main stream media reported it.
The leak is suspect given that George Soros provides funding to the organization that spearheaded the leak.  George Soros has been a major sponsor of colour revolutions throughout the world.  He has spent large sums of money destabilizing Ukraine, other nations and is currently working towards removing Vladimir Putin from office.  Have you noticed how the western press has spent a great deal of effort insinuating that Putin was involved with the offshoring of billions of dollars? Vladimir Putin did not have any dealings with Mossack Fonseca.  
The fact that corporations and the global elite have circumvented taxation should not come as a surprise.  Nor should we be shocked that too big to fail banks are involved with helping wealthy individuals launder money.  Sadly, this is par for the course in this day and age where the 1% are beyond the reach of the law while the majority of the population are persecuted for trivial crimes.   
Continuing on, this week’s letter contains information on fiat currency, gold, central banks, geo-politics and debt.  It all ties into the big picture in that we are heading for a cataclysmic event that will change our civilization in ways most people cannot fathom.  Last night I watched; “The Big Short”.  I can relate to the individuals who saw that the world economy was heading for trouble in the lead up to the 2008 financial crisis.  The issues we face today will make the 2008 crisis look like a walk in the park.  Few people see what is coming!

Edward Mandell House Describes To President Woodrow Wilson How The  Federal Reserve Act Will Be Used To Enslave The American People
‘[Very] soon, every American will be required to register their biological property in a national system designed to keep track of the people and that will operate under the ancient system of pledging.
By such methodology, we can compel people to submit to our agenda, which will affect our security as a chargeback for our fiat paper currency.
Every American will be forced to register or suffer being unable to work and earn a living. They will be our chattel, and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions.
Americans, by unknowingly or unwittingly delivering the bills of lading to us will be rendered bankrupt and insolvent, forever to remain economic slaves through taxation, secured by their pledges.
They will be stripped of their rights and given a commercial value designed to make us a profit and they will be none the wiser, for not one man in a million could ever figure our plans and, if by accident one or two should figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debt to the registrants in the form of benefits and privileges.
This will inevitably reap to us huge profits beyond our wildest expectations and leave every American a contributor to this fraud which we will call ‘Social Insurance.’
‘Without realizing it, every American will insure us for any loss we may incur and in this manner; every American will unknowingly be our servant, however begrudgingly.
The people will become helpless and without any hope for their redemption and, we will employ the high office of the *President of our dummy corporation to foment this plot against America.’Courtesy 

Gold $10,000 to $50,000 per Ounce - Jim Rickards with Greg Hunter

Jeff Fitchett: I agree with Jim Rickard’s assessment.  If you understand that the global economy is in serious trouble or you worry about your life savings; I think you should consider listening to what Jim Rickards has to say.    

We Kill Each Other For Paper (Excellent)

Jeff Fitchett: This 5 minute SGT Report micro-documentary is worth a watch. It features Jeff Nielson, Harley Schlanger, Andy Hoffman, V the Guerrilla Economist, Bix Weir, Dave Kranzler, Chris Martenson, Rob Kirby, David Morgan, and Jake Johnson from Fox's 'New Girl’. 

The Biggest Scam In United States History - G. Edward Griffin and Stefan Molyneux

Jeff Fitchett: I highly encourage you to listen to this interview.  G. Edward Griffin is an excellent communicator and is the author of one of the most important books written in the last 100 years: The Creature of Jekyll Island 

All Quiet in the Eurasian Front

Jeff Fitchett: I thoroughly enjoy Pepe Escobar’s columns.  I agree with his geopolitical assessment.  

So now Iran is back to being demonized by the West as “provocative” and “destabilizing”. How come? Wasn’t the nuclear deal supposed to have brought Iran back to the Western-concocted “concert of nations”?

Iran will once again be discussed at the UN Security Council. The reason: recent ballistic missile tests, which according to the West, are    
“capable of delivering nuclear weapons” – an alleged violation of the 2015 UN Security Council Resolution 2231. 

This is bogus. Tehran did test-launch ballistic missiles in early March. Supreme Leader Ayatollah Khamenei stressed missiles were key to Iran's future defense. Ballistic missiles have nothing to do with Iran’s nuclear program; and yet Washington kept bringing it to the table during the manufactured nuclear crisis.  

Russia knows it, of course. The head of the Russian Foreign Ministry’s Department for Non-Proliferation and Arms Control, Mikhail Ulyanov, once again had to go on the record saying the ballistic missile tests did not breach the UNSC resolution.

"It's Probably Nothing": Truck Orders Plunge 37% As Unsold Inventories Soar Most Since 2007 by Zero Hedge

Jeff Fitchett: It makes sense that truck orders are plunging given that consumers aren’t buying and companies are laying off workers en masse.  

When we last looked at order of heavy, or Class 8, truck one quarter ago - that all-important, forward looking barometer of domestic trade - we said that even with 2015 in the history books, and as we start 2016 where the base effect was supposed to make the annual comps far more palatable, the latest, January data, as abysmal: "the drop continues to be one of Great Recession proportions, manifesting in yet another massive 48% collapse in truck orders in the first month of the year as demand appears to have gone in a state of deep hibernation.”

Fast forward one quarter when we now have another three months of Class 8 truck data, and unfortunately the order-book has gone from bad to worse. As the WSJ reports, orders for new big rigs plunged and inventories of unsold trucks soared to their highest levels since just before the financial crisis, as uncertainty about future demand and a weak market for freight transportation weighed on truck manufacturers.

About 67,000 Class 8 trucks are sitting unsold on dealer lots, after sales in March dropped 37% from a year earlier to 16,000 vehicles, according to ACT Research. Class 8 trucks are the type most commonly used on long-haul routes. Inventories haven’t been this high since early 2007, said Kenny Vieth, president of ACT.

The Future of Money - Charles Hugh Smith

Jeff Fitchett: This is a good article for anyone who wants to learn about blockchain-based crypto-currencies.  Bitcoin is the most popular crypto-currency.  *I do not invest in crypto-currencies.  Call me ‘old school’, but I prefer hard assets, such as gold and silver, that have been a store of value for thousands of years.  I do not trust technology as a store of wealth.  That said, I do understand why many people are comfortable with Bitcoin.  

The cartels and state organs are frantically trying to co-opt, outlaw, corral or control this disruptive technology.

To say that the future of money is blockchain-based crypto-currencies and payment platforms is to state the obvious nowadays. If this wasn't the case, then why are Goldman Sachs et al. (i.e. the global too big to fail banks) rushing to patent their own proprietary versions of blockchain technologies? Why are banks investing heavily in companies that are trying to establish a global blockchain platform for banks?

The reason is that banks understand their core reason to exist is threatened by peer-to-peer, decentralized payment platforms and currencies. If payments no longer need to be routed through a centralized trusted institution, then one core function of banks disappears.

Debt Is Slavery: IMF Actions Should Be Considered Crimes Against Humanity - by Jeff Fitchett

The International Monetary Fund recently discussed a "crisis event” to force Athens to follow the IMF's dictates.  The IMF is also threatening to leave the troika of creditors if Germany refuses to authorize debt relief for Greece.  The reason Greece was accepted into the European Union is because Goldman Sachs helped the Government of Greece conceal the true amount of their sovereign debt. This allowed Greece to meet the fiscal requirements to enter the union.  There is a constant theme in global politics and high finance: Goldman Sachs and the other "too big to fail banks."  A monetary union is designed to fail.  Each country has unique circumstances.  I liken countries to individual people.  Each person has their own spending patterns, requirements, desires and way of life.  A currency should reflect an individual nation, not a group of countries that are different from one another.  To go deeper, currency is based on confidence.  It's the belief that the digital entry you see in your bank account or physical paper money is actually worth something.  Money is a hard asset. Currency is a manipulated con.   If one country has a large debt load, high budget deficit, social benefits that are extremely generous and limited tax revenue the value of the currency will be lower than a country that balances their budget, is paying down their debt and has sustainable social benefits.  The fact is, most countries are in bad financial shape, but certain countries are in worse shape.  

Greece was destined to fail from the very beginning.  If they had their own currency, such as the former Drachma, the value of it would be substantially less than the Euro, US dollar, Japanese Yen and the Chinese Yuan.  Greece is getting hit with a double whammy; an economic catastrophe from being stuck in the European Union and from the ongoing decline of the world economy.  Greece's debt load would never have reached these levels had they not been in the European Union.  Interest rates on European sovereign debt is now near zero percent.  In the years leading up to the financial crisis in 2008, Greece was able to borrow money at the same interest rate as Germany.  One corrupt Greek government after another piled on debt at interest rate levels that were so low they did not reflect any risk of defaulting on repayment.  Fast forward to today and we all know that Greece will never be able to pay off their debt and they require constant bail-outs to keep their society afloat.

The actions of the International Monetary Fund should be considered crimes against humanity.  How can an organization that is supposed to be quasi government controlled be able to force a nation to privatize public utilities, such as water systems, to large multi-national corporations who in turn jack up the price of water. The loans should never have been offered in the first place.  The reason the loans were given is because it is lucrative for lenders.  Not only do they collect interest on debt in perpetuity, but they also get to take possession of sovereign assets, such as ports, water utilities, electricity generators, national treasures and so on, when the said country defaults.  Christine Lagarde, the managing director of the IMF, explained in an interview that; "When the world around the IMF goes downhill, we thrive. We become extremely active because we lend money, we earn interest and charges and all the rest of it, and the institution does well. When the world goes well and we’ve had years of growth, as was the case back in 2006 and 2007, the IMF doesn’t do so well both financially and otherwise." In the end, banks always end up collecting the income tax of a country to cover the principal and interest of the debt that the nation borrowed.

The craziest aspect of all of this is that fiat currency is leant into existence. Fractional reserve banking allows for banks to create currency out of thin air.  It is criminal.  How can a bank lend money, that has never existed before, and then take possession of state assets when a country is unable to pay back the loan they signed on for?  The IMF, World Bank and most commercial banks are all in on the con. Once upon a time, savers would deposit their funds in a bank and the bank would in turn lend out bank depositor money to individuals and businesses.  The bank acted as a middle man for transactions between savers and borrowers.  The bank was paid a respectable fee for providing the services.  As long as there was liquidity everything ran smoothly.  If a bank lent more than was on deposit; there was the potential for a bank run.  All throughout history there have been bank runs because of the greedy nature of individuals.  

Today, the too big to fail banks are able to pay fines for committing fraud, but no actual person is ever punished.  Government officials and bank executives and large shareholders are colluding at the detriment of society.  We are now facing the hangover of the greatest debt binge in human history. Debt allows for future growth to occur in the present. We are now feeling the effects of deflation. Incomes are dropping all the while debt grows larger.  Around 98% of all US government debt that has been issued over the past number of years is purchased by the US Federal Reserve.  The Federal Reserve is creating currency units, out of nothing, and buying US government debt.  The same goes for most countries in the world today.  It is a big fraud.  

It is obvious that debt equates to slavery.  If you have any debt; you should make it your purpose to get out of debt as soon as possible.  Plan for a future that involves your personal income dropping drastically and the value of major assets such as a house dropping in  value. This deflationary period will last quite some time, but there is a strong likelihood that governments and central banks will launch massive money printing programs. The printing of money will be used to keep the illusion that our world economy is still growing, that debt levels are sustainable and that governments are still fiscally viable.  Serious inflation or hyperinflation will likely be the result of the money printing.   Only time will tell as to how it all plays out.  Gold and silver bullion will be beneficial for savers to have given that currencies are being debased and the financial system is looking more and more unstable. 

Have a nice weekend!

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


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