My long standing warnings about [GE] are looking prophetic now.

Long time readers know that when nobody else in the universe thought there was any trouble brewing at GE, I was using my Elliott wave model to predict a major top and then a massive drop for the shares.  I also wrote time and time again how obvious it was that GE was running a vendor finance scam.  It sounded so stoooopid and conspiratorial back then to most people but of course they do not do their homework like I do and so there is no way they can see the same things I see.

But the time now runs short for the GE Ponzi and I say this for two reasons.  First, the Elliott wave model looks like the A wave is complete and we are just waiting for this B wave to finish.  B waves can be complex so I am not saying it is finished yet.  It might turn out to look like per below.  That would be a classical horizontal triangle B wave.  But other variants are still possible.



So the stock is eventually going to collapse even more but I predicted many times that GE will BK and or be broken up to avoid the appearance of the actual BK that happens.  But that second "softer" BK event, the one where the system steps in to save face by papering over the fraud and theft that happened at GE all these years even back to Jack Welch (who I will now refer to as "the Bill Cosby of CEOs" because of the way he wagged his fingers at wrong-dooers while being a scum bag himself), I think that is off the table now.  And the reason is that the same forensic accountant who figured out Madoff was a Ponzi is now out with a 175 page report calling GE "a bigger fraud than Enron".   Harry Markopolos wrote in that report that, “My team has spent the past 7 months analyzing GE’s accounting and we believe the $38 Billion in fraud we’ve come across is merely the tip of the iceberg”. 

Well well well.  There is is.  Harry M is not going to make up fake facts and he is not going to overlook real ones.  The guy is a forensic accountant.  He's a Sherlock Holmes of the financial shell game.  He's not guessing or speculating or postulating.  He fucking knows. He's got the hard data. 

But I beat him to the punch by many years.  I wrote that GE was running a vendor finance scam.  It's an old con game that can be explained very simply:
- GE wanted to sell things but nobody has cash in a debt Ponzi so they needed to find people who would go into debt to buy their products (aircraft engines, etc.)
- But all the usual suspects had bad credit.  Airlines are well known to be boom and bust bankruptcy plays.  So no real bank would loan them money at low interest rates.
- But despite having massive debt and little cash, the credit markets rated GE debt AAA.  And so GE used this fact to become a shadow bank.  It would "sell" its products to deadbeat debtors on credit and then carry the associated debt on its books.  It would claim massive profits from these sales and the likes of Jack Welch were hailed as heros for it.  But these were not real profits because they were generated with unpayable debt.

Markopolos is simple providing the details about what I already knew was true.  Look at the model I presented there and compare it with current actual.  In that post I wrote, "When this chart support breaks down, GE will most likely go into freefall".  And that is pretty much just what happened.

GE now has $13.6 bn in cash holding down $110bn in debt.  But with all of its vendor finance operations having been sold off (and I am sure the federal reserve was using its post 2008 powers to force GE to do it), GE will no longer be able to generate all those fake sales it once used to and the weight of its debt will eventually crush the equity holders and the bond holders will take a massive beating as well.

I have to give the fed credit for winding GE down during the good times.   I recall a time when GE had $36bn in cash holding down $512 billion in debt.  GE found suckers to unload all those fraud-filled finance unit onto.  The solution for pollution is dilution.

It's getting very ugly in Hong Kong.

The Hongkongese are done with their slave masters and simply aren't having any more of it.  They've put up with the creeping threat of being reunified with mainland China for some time now.  Things have not gotten any better in the region. The Chinese dragon is now asserting itself to all who have pushed it back. They have been running a puppet government in Hong Kong for many years now but it was only recently that China felt strong enough to do things like like lay sovereign claim over the south China sea with military bases where shallow reefs once stood.  The Hongkongese have every right to be fearful and rebellious and I suspect this contagion will hit Taiwan in the next couple years as well. 

The long standing symbiotic relationship between the US and China is over and so there really is no more reason to make nice.  That's how politicians and con men think anyway since their children always somehow manage to avoid going to war.  And make no mistake, that is the way things are headed now.  You know, just like I predicted many years ago that it would probably end up when the Global Debt Ponzi finally went bust. 

Of course it is in the best interest of con men and thieves to rest the debt using war.  That way they can vilify some foreigner for things that were done locally by asshole Americans.  Why take the blame if you can just start a war and then distract everyone into forgetting how we got here in the first place?  As the Wizard told Dorothy, pay no attention to that man behind the curtain! 

If Americans had any sense, we would know that any actions taken against us by the Chinese to start a war are either false flag operations by US warmongers or the US pushing China into a corner so that it has little choice.  It doesn't matter what you see.  What you don't see is more important.

So it looks like Chinese military may step in and stop the Hongkongese from protesting.  Of course they will have guns and the people will have sticks and stones.  Why can't people understand how stupid it is to be left with two options by an oppressive government: buckle under or die from superior firepower.  And of course the US will sneakily intervene.  And of course the Chinese will find out.

The only advice I can offer Americans is this: if there comes the day that politicians demand you send your children off to fight their war of corruption, arm yourself and your children and head over to the politicians homes instead and demand they send their children before you send yours.

Jim Rickards explains why the next market crash will be a doozy.

Smart people like Ross Perot, Ron Paul, Peter Schiff, Jim Rickards and a good number of others often stand in front of the herd trying to make their case about how the herd is wrong headed.  As a result, they don't get as far as quickly as they wish they could have.  Perot was right about that giant sucking sound of lost jobs and all the other fools on stage with him rolled their eyes like the clueless useless fools they are.  Ron Paul has predicted many things that have happened but he could not even come close to winning the presidency.  Peter Schiff was right as rain about the 2006-7 housing crash but still lost his senate race.  And people listen to Jim Rickards but few take him very seriously.  After all, the doom and gloom he keeps predicting hasn't happened yet and therefore will probably never happen.  You know, like in recency bias 101.

All of these men are or were standouts in their understanding of the fundamental nature of things.  But none of them got the timing just right and the herd is all about the timing.  Nobody wants to live conservatively when there is so much fun to be had living liberally.  It's only when the shit hits the fan that people actually realize the mistakes of their liberal ways.  One old military saying is that there are no atheists in foxholes.

Sooner or later everything that Peter Schiff, Ron Paul and Jim Rickards are warning about will transpire.  When, not if.  It's already baked into the cake and there is no longer any way out.  Rickards said something in a recent interview that I know is true.  After explaining how trading works today and how it is different than in years past he predicts that during the next crash there be only sellers.  He concludes that when the next crash comes there's going to be no bottom because there is going to be "no bid".

It all sounds ridiculous until the bombs start dropping and everyone suddenly realizes they sitting in a foxhole.

A shot across the bow of all elitist minions and consorts.

Jeffrey Epstein is dead.

Jeffrey Lolita Express, Orgy Island Epstein, a very wealthy man, is either actually dead or has faked his death so that he cannot be squeezed into telling what he knows about all the elite scumbags who have used his services to access pedo flights, pedo island escapes, etc.

Before he was placed in federal custody he was alive.
After being in custody, he's dead (or gone to live in secrecy).

Those are the simple facts.  Which is true actually matters. 

• If the elite were able to remove him from federal custody and spirit him away to safety then all the others with knowledge of where the bodies are buried might continue to stay silent a while longer.  IF we never see any pictures of a dead Epstein then this is likely what happened.  If we are simply told his remains were cremated quickly for whatever reason, he's really living in south america now under an assumed identity and waiting for facial reconstruction surgery.
• HOWEVER, if we begin to see pictures of Epstein laid out and there is no doubt he is actually dead then of course he was murdered.  And if this is the case, anyone who knows details about the crimes he was doing and the elite who were involved is also at risk for being treated as a "loose end".   Since these organized crime sprees always end with someone turning state's evidence before they get killed, it increases the odds that someone will get very scared by the Epstein death and come forward with their little black book before they themselves are suicided.  Pictures like that below will not be good enough.  WE will need to see autopsy photos in order to believe that Epstein is actually dead.  If those start showing up, the days of the elite shutting people up are likely numbered.

New respect for David Icke

Read the whole thing, have an open mind...

If you want to hear a bunch of new age reptilian overlord stories, David Icke is the man.  As an engineer I have learned to have an open mind and to listen to ideas but then step back and analyze them critically.  And that is why I don't watch or listen to David Icke as a general rule.  He's obviously a smart man but nothing he says about aliens and reptilians has any substance. It's all conjecture and theory.  And while I cannot prove its false, I don't have time to spend on this kind of thing.

And so because of the fact that I have written Icke off on Reptilians and thus do not listen to his videos, it is only until today that I ever heard him talking about money.  And because it wasn't alien overlord talk, I listened with an open mind as is my way.  And what I found, at least in this short video, is that he has a perfect grasp of the truth regarding the fake money scam that consists of fiat currency and fractional reserve lending.  It is in fact a system of gradual enslavement and unless the people wake the Hell up and stop accepting this fake money system as if it were real, I am sure that his future vision of people enslaved within a centrally controlled currency system is exactly what will eventually transpire.  I won't live to see it but some of you reading this might.

I will say again for those who still don't get it.  Money is an invention, a technology, whose main purpose is to store past specific labor (i.e. digging a ditch, repairing a car, etc.) for future use in any form of consumption (buying food, going on vacation, etc.).  It is a token that proves you input work into our society and therefore should be able to receive work back out of our society.

But when some central power gets to create new money and inject it into society to trade for things that it wants WITHOUT having done any work to get that money, what its really doing is debasing, devaluing our stored labor after we have already worked!  Its actually a form of retrograde slavery.  We worked and we thought we were freemen but in fact since we stored our excess labor in their fake money, we were really voluntarily enslaving ourselves.

This is not a theory, a conspiracy or anything of the sort.  It's a clear headed, non-emotional engineering type evaluation of the current facts combined with a knowledge of related history and logic.  Ignore it at your peril.

The solution is sooooooo simple.  Store your excess labor, which we call wealth, in real money that is outside of their fake money system. Forget the current price of metals and don't try and time the system.  You are not that smart or light on your feet.  Just play the long game which is to save money for retirement in REAL money and keep your long term wealth out of their fake money system.

The following exchange occurred on December 18, 1912 when J.P. Morgan – the most influential American financier and banker of his time – was called to testify before Congress.

Mr Untermyer:
I want to ask you a few questions bearing on the subject that you have touched upon this morning, as to the control of money. The control of credit involves a control of money, does it not?

Mr Morgan:
A control of credit? No.

Mr Untermyer:
But the basis of banking is credit, is it not?

Mr Morgan:
Not always. That [credit] is an evidence of banking, but it [credit] is not the money itself. Money is gold, and nothing else.

JP Morgan Canadian credit unit makes a dash for the exit

When did you ever see a bank just "forgive" debt???  Apparently JP Morgan wants out of the Canadian credit market so badly that this is exactly what it has done.  As the article says, the debt was property of Morgan and so it could have sold it to other creditors.  But for some reason it wants out of that market so badly that it is just walking away from existing loans.

That is unprecedented and that should scare the crap out of people because you can bet JP Morgan knows something that we don't.  No bank ever just gave up free money for no good reason and you can bet there is a good reason this time as well.

How many still think there will be a trade deal with China?

I recently asked this question of my readers.  After today it's clear to all: no deal.  China went out of its way to devalue the Yuan and the US has now labeled it a currency manipulator.  Of course when the US fed talks interest rates up or down, and buys or sells bonds into the market in order to achieve inflation targets, none of this is manipulation.  Except that all of it is.  The US is massively hypocritical, and not this is not "hating" on America.  Truth is not hate.  Truth is caring.  You see a stranger walking around with his plumber's crack hanging out and you just laugh and say nothing.  But if that's your friend or family you put up with the embarrassment of telling them their ass is hanging out.  You just do it. 

Well we knew the multidecade honeymoon between US and China was over when they took their fucking pandas back from the San Diego zoo.  That's like taking the foster children back.  You don't do that lightly if there is an easy solution to a problem near by.  It's essentially throwing in the towel.  And Xi's face has been telling us the same thing for some time now.