Even the Hongkongese are rioting now.

I've been warning for years now that global civil unrest was going to result from the pump and dump policy of fractional reserve banking.  Just search this blog for "riots" and "civil unrest" and you will find posts like this one which stated, "...Both avenues lead to the same result – depression and heavy handed government which tries to put down the civil unrest commonly associated with sudden poverty.".  

The Chinese housing bubble is rolling over and this is causing Chinese leaders to try to expand their control over Hong Kong in order to extract more profits from the vibrant economy there. They have expressed their right to install puppet leaders over the Hongkongese.  China is now looking for spare change under every couch cushion in order to try to maintain the appearance of 7-8% growth in a 1% growth (or worse) global economy.  This plan is doomed to fail and the Chinese leaders have two choices: try to repress the people with force or let free market forces clear up the massive, massive bubbles that they themselves have created and perpetuated.  Unfortunately, option 2 might result in them being killed in the streets by starving peasants.  Thus, option 1 seems more likely at this point.

None of this would be happening if we had an honest global money supply and it is no coincidence that similar riots have been happening all over the world for the past couple years.  The credit Ponzi is terminal and the marginal players have been hit the first and the worst.  Now the less marginal players will also feel the impact.  Nobody will get out of this unscathed and you can thank the military industrial complex and its economic attack dog, the federal reserve, because this is the group which needs fraudulent money in order to grow as big as it has.  Without fiat currency and fractional reserve banking, nobody could afford to build all of these weapons and fight all of these wars and make all of these generational enemies.  Fraudulent money is clearly a crime against humanity and we are all victims.  Wake up people.

Judge refuses to protect fascist police and doctors in "war on drugs" anal rape case.

You might not know it but in several states like Arizona, New Mexico and apparently Tennessee as well, the cops have been colluding with medical establishments in order to gain convictions of suspected drug traffickers.  In a morality-free "end justifies the means" kind of world, the cops would arrest someone on some level of suspicion (or simply because they had nothing better to do), roll them on over to the hospital and then get complicit doctors to do all manner of x-rays, intrusive cavity probes, etc. in order to try to gain evidence against the victim, errrr, suspected criminal.  In all cases, even those where no drugs were found and no charges were brought, the victim was billed for outrageous amounts of medical "service" ($6000 in this case from NM).

Today is the beginning of the end for that scam as a TN judge ruled that "just doing my job" will not be considered an effective defense by police and medical bastards when charged for their immoral and unconstitutional acts.   Importantly, the cops claim that the searches turned up drugs.  While I am skeptical of any kind of "proof" that the police come up with when having such proof would justify their actions, it is telling that the court did not take this (potentially trumped up evidence) into account.

To treat a fellow human being like a sack of meat in order to get some bonus points in the war on drugs quota system or in order to charge a ridiculous medical fee is so depraved that a money settlement is not good enough.   This should result in big time jail.  And of course for a small percentage of the population, that will not suffice.  A more physical form of retaliation will be required.  I don't hope for it but I know where it leads to.  This kind of tyranny is simply contrary to the DNA of a significant segment of the population; they will not stand for it once they are made aware.  Unfortunately for the con men playing these games, empty stomachs and lack of credit-goosed opportunity is turning the herd ornery and dangerous.

As I predicted a good while ago and as I have pointed out with links on many occasions on these pages, the pendulum shift back toward conservatism is underway.  The centurions for the parasitic elite used to be able to do whatever they wanted to and their departments would step in as a shield between a mostly sleepy public and the individual perpetrators.  Those days are fading fast because if the department heads don't prostrate themselves and do 10 mea culpas in front of the cameras today, the media begins to ask now if they are qualified to remain in their positions.   Just ask the police chief of Ferguson about that right now.

It will not be very long before police begin to be slapped with criminal (not just civil) charges for their actions.  I predict that there will be some high profile cases of police officers getting convicted of murder for things that they used to do on a routine basis: killing unarmed people like it was nothing just because their testosterone level was elevated.  I believe that the mood of the herd is changing and that the notion of "police as protector" will widely be discounted by the public who will suddenly realize that ISIS terrorism is a joke compared to police terrorism of the population.

The mid term elections coming up are going to be very telling.  Many consider that the DEM:GOP races will be very close.  I predict that the GOP will gain ground and perhaps take majority of the Senate but that libertarians will be the big winners here since most GOP are just conservatives in name only.  The rise of the libertarians will send a message to the GOP members that real conservatism is making a huge come back and they will fall over each other trying to pose as true conservatives.  What would be really telling would be if long time GOP RINO liberal John McCain (my definition of "liberal" includes warmongers because war is a lean toward consumption and debt over production and savings) gets shown the door.  Perhaps it is too early in the pendulum swing to expect that but one can always hope.  Stranger things have happened.  The faster the bottom falls out of the debt Ponzi the faster the change will occur.

NFLX Details

Here is my previous post on NFLX, a very high level view of the collapse that is now very likely in progress.  Below is a zoom in showing the collapse down through the lower channel rail of that massive rising wedge.   This led to 5 waves down into blue 1.  I'm not convinced that blue 2 is done with only a 23.6 fib retracement but neither would I be interested in chasing it because what I have marked as red "a" could in fact be the whole a-b-c retracement.  If that is the case, the next wave down will be massive because that would be unusual weakness.  A lower low than blue 1 will likely come with some kind of rapid move down, perhaps even a large gap as wave 3 down begins to unfold.

Forget the marketing story about how NFLX will grow forever.  It has already peaked and the chart is the best evidence you have or need.  These wedges have the habit of retracing their entire length.  NFLX is an excellent candidate for a straight short for those who want to make money without time based leverage (AKA options).

Does Elizabeth Warren want to audit the fed??

As the pendulum swings from ultraliberalism, thru centrism and back to the Ridiculous Right, I expect to see all kinds of loyalties change in order for the politicians to appear to the people as someone fit to lead.  Of course, the people are clueless for the most part which makes the whole political scene a huge joke whereby people wait until their previous stupid, uninformed decisions blow up in their faces and then, thinking they have learned their lessons, elect the next con man who says comforting things to them (math, history and logic be damned).

It's already happening the world over.  For example in the UK we have Torries (which are the fake right or RINOs (Right wing In Name Only) switching to UKIP (Nigel Farage's libertarian groundswell).  But today's big news on this front is socialist loser Elizabeth Warren coming out in support of the recent house vote to audit the fed by asking for hearings on how the fed gave preferential treatment to Goldman "doing God's work" Sachs.

What Dear Elizabeth doesn't know is that socialism has no chance without a fraudulent money supply.  Wealth redistribution in a fraudulent money supply is easy.  You simply debase the currency by printing more and then you pick winners and losers by either distributing the newly printed money to a group or withholding it.  There!  Wasn't that simple?  This is effectively a taxation mechanism which is completely unauditable.  Nobody can easily say "you took this much of my productive labor and gave it to someone else via this program" because nobody even knows they are being taxed.

This is a far cry from an honest money supply whereby you have to have someone write you a check in order to pay their taxes.  When people see the sticker shock of wealth redistribution in an honest money supply then they put down their pens and pick up their pitchforks.  Of course if the money supply is honest then a man's labor must be paid for honestly as well.  An honest money supply automatically collapses the wealth disparity we see today.  Right now, moneymen and bureaucrats at the very top have megayachts and megawives and megalives while people who do productive work with their hands all day long under the hot sun barely get by (and generally only after they collect some form of public assistance). 

The only reason that someone who puts in an honest full day of labor should not be able to feed, clothe and shelter his family AND put away something for retirement is if he is getting ripped off.  That's what dishonest money does.  It steals from the poor and gives to the rich.  The rich then devise all manner of loyalty program and give them government names like SNAP, etc.  If you don't toe the government line then your benefits are in jeopardy. The benefits are marketed to the ignorants as a boon but they are in fact a snare.  Once you accept fake money as pay then you will be required to accept public assistance forever. 

By attacking the controller of the fake money scam, Elizabeth Warren is unwittingly attacking her own socialist political ideals.

NRA mistakes a swinging pendulum for "a stunning outbreak of sanity"

Completely in line with my standing prediction that our society would see a pendulum-swing back to conservatism, the New Jersey state citizen criminalization team has suddenly reversed itself on its intent to prosecute an innocent woman for her misunderstanding of concealed carry reciprocity laws.  After her arrest she was funneled into the jaws of "zero tolerance" and "mandatory sentencing".  In other words, the con men running the show selectively ignored the facts of the case, ignored whether any harm was done or intended to be done and instead just violently planned to ruin someone's life and the lives of their families. 

In this case, the citizen-victim was a single mother who wandered into the liberal Hell known as New Jersey.  I gotta tell you folks, I own a 10 acre farm there which used to belong to the wife's dad.  We bought it for him to live out his twilight years in since he was broke.  He's gone now and the wife still has an attachment to the place but I will never live there because I cannot stand hyper liberal nanny state, tax-crazy government and that has been the hallmark of New Jersey ever since the criminal unions and liberals contaminated its ground with their sick ideals.

It is no coincidence that this sudden turn of events occurred at this particular time.  The herd is sending signals far and wide.  Public officials are beginning to have to apologize for bad behavior.  Eric Fraking Holder is out on his ass.  What next, will pigs fly?  Folks the power structure of the con was credit and the power structure is rolling over in locked step with the decline of credit.  The officials are beginning to see the folly of their arrogance in the faces of Bundy Ranch patriots and Ferguson rioters.  The con men are now beginning to fear being taken out in the street and hanged.  I do NOT hope for this, I'm just calling it like I see it from the pages of history.  The herd has been repressed by the liberal nanny state long enough and the herd is now awakening.  The smart con men are bugging out, just like the initial lions bailed out in the battle of Kruger when the water buffalo herd showed up in numbers and well organized.

While she will not be going to prison, the con men still will save face with an expensive bureaucratic process known as the PTI program.  Basically, they will intimidate her some more with ridiculous classes and "treatments" for the heinous crime of breathing and practicing her 2nd amendment rights.  It's just another full employment program for big government that does absolutely nothing to benefit society.  She already lost her job and her house over this crap.

Open letter to Shaneen Allen:

Dear Shaneen,
I want you to know that America knows you got railroaded for no good reason except that of controlling people's thoughts and actions by the police state.  I also want you to know that your story is important and that you are important.  I don't just mean that in a ethereal way.  I mean it in a tangible sense.  Because you made the decision to concealed carry and exercise your 2nd amendment rights, other American citizens will benefit from your sacrifice, and I don't just mean the parasites who will be getting paid in order to mind wash you with their PTI program.  In fact, "Shaneen's Law" will eventually pass because the time is right and honest law abiding citizens will be able to concealed carry all over these once United States without fear of government using it to create what is essentially a taxable event by ruining the lives of good, honest people.

Mind you, I'm not praising your foolishness for not knowing that New Jersey is a liberal infestation full of rights and privacy haters who are running the show.  That was borderline insane of you.  But people make mistakes and you certainly did not know you were doing something that could land you in the slam else you would not have offered the fact that you were carrying to the police.  Next time, SHUT UP.  There is no need to tell the police anything for any reason.  Don't offer up anything because it can and will be used against you in a monkey court of corrupt law. 

Now, get your silly PTI bureaucracy sentence done and over with, follow all their little nanny rules and given them no reason whatsoever to criminally harass you any longer.  Then, Shaneen, WRITE A BOOK on this matter.  Do it ASAP.  It will be a best seller and you can mock the sons of bitches who tormented you as you tell your story to America.   The time is exactly right for this kind of detailed tell-all about how the corrupt police state cost you your job and your house and put your family through so much misery.  Dear, a book deal is likely worth a couple easy million bucks to you so don't pass up the opportunity!  Once you have the millions, you can lawyer up in case there is any attempted state retribution on you.

Police statists pissed that Google and Apple are locking them out of their illegal spying.

Yesterday the headlines reinforced my views that the police state will be a victim of the new herd direction toward conservatism.  Most people are under the misguided impression that the US government can do whatever it wants to.  This appears to be true for an extended period of time and so it becomes the reality for many people, especially those who do not understand history or economics.  The truth is that no matter how arrogant and out of control the government and its jackbooted security apparatus might seem to be, it all exists at the pleasure of the herd.  When the annoyance becomes too great for the herd in aggregate, the fly gets swatted from the ass of the herd.

The herd is, in many ways, like water.  It takes the path of least resistance.  That is not to say that the herd never has to fight hard in order to get where it wants to go.  A flowing river will eventually turn into rapids as well.  But water doesn't first try to run uphill.  It will only go uphill if the pressure behind it is very high and there is no other choice.  But make no mistake: the power of moving water is an unstoppable force under these circumstances.  Likewise, the herd doesn't go looking for a fight.  It even accepts and enables the predators to take down some food here and there if it means prosperity for the herd in aggregate.  But when too many in the herd begin to go hungry or be otherwise negatively affected, especially if it reaches up to the level of the strongest of the herd, change will ensue.  At that point the needs and wants of the parasites do not matter.  At that point, the herd shows who is really in charge and who has really been in charge the whole time: the producers and not the parasites.  Why?  You cannot have parasitism without first having production.  It is economics 101.  The interesting part of this is how quickly it in fact can happen so keep this in mind: the reason it can take place seemingly so quickly is that it was never anything more than an illusion, a dream if you will, in the first place.

So what were these headlines?  Simply that the leaders of our modern communications technology companies are filling the security holes that they knew existed all along and which they knew all along that the government was tapping into.  As long as their customers didn't complain, all the major tech firms went along with parasitical demands and threats from government to turn over names, open up access, etc. in order to enable illegal spying.   Because of the initial compliance, government became emboldened and began to think it had rights to the information.  This is obvious based on the comments from that link by FBI parasite James Comey.

But then a funny thing happened on the way to government tyranny (i.e. government believing that is is actually the master over the people instead of the servant of the people): as the rank and file began to feel the effects of a slowing credit supply, it began to cut into sales and profits at the leaders.  The reduction in buying power of the middle class began to manifest itself in a variety of ways, including a new and broad awareness and caring about government spying on the people.  The people have known it was going on for a long time but they put up with it because a well fed herd is a happy herd.  But now the herd is getting finicky and picky and are no longer ignoring things that used to be ignored.  All of a sudden, sales are down and government spying is cited as one of the causes.  Because of this, personal communications security has become a selling point and now the leaders are moving quickly to sell into it.

There is no recovery from this for government blowhards.  The Congress is rightfully afraid of the people and so it will not legislate a requirement for un-secure phones.  Google, Apple and others are just going to continue doing what is in the best interest of pursuit of profit, James "parasite-traitor" Comey be damned.  In other words, the parasites will be reduced not because they want to but because there is no other option available to them.  This is not news to me because I understand something very basic: parasitism cannot exist without production.  If the host is defenseless the parasite eventually kills the host and both host and parasite perish.  But if the host has defenses, political antibodies if you will, then the host will fight back once the need for survival becomes obvious.  In the USA we have the unalienable right to keep and bear arms. This is the one and only effective antibody against government tyranny.  Always has been, always will be.  Protesting in the streets happens all over the world, often to no effect.  The jackboots simply roll in, kill some and scare the rest off, problem solved.  Our founders knew this and so the 2nd amendment was, well, the second unalienable right they provided us, directly after that all important right of free speech.  This is why patriots will band together and use deadly force against anyone who tries to use deadly force to take our guns.  Failure to do so is like contracting a terminal form of cancer for the host.

Because so many Americans own modern assault rifles, I am zero afraid that the US government will be able to enslave our population.  There is considerable chance that they will continue try but it is already doomed to failure simply because the people are well armed and are now awake enough and pissed enough to the point of expending effort on self-organization for self-defense from government.  I was clear about this in my coverage of the Bundy Ranch Revolution.

More recent proof points keep rolling in.  Perhaps the latest is where the Police Chief of Ferguson publicly apologized for the circumstances of the police initiated murder that recently happened there and his cushy job is now under attack.  Do you think the police would be on the defensive if they could just use force to get their way?  I think not!  That fat, Jabba-The-Hutt wannabe Ferguson would be standing proud and tall in his dress blues talking about how the police will contain the uprising.  Instead of apologizing and answering tough questions about how the people want him removed from his job, he would be using police might to make things right for Team Tyranny.  But he got scared by how the people banded together (look at him swallow hard during the interview...) and he knew that any police violence against the people would be met with counter violence by a heavily armed and very pissed population.  The police would die in any kind of real gun battle here.  It would not take much to see a full on insurrection occur at this point.  The government in Ferguson either backs down with conviction or it will be force-ably removed just as is happening all over the world.
 
While Jabba's apologies mean nothing to the family of the deceased, they DO mean something to the rest of us.  These are herding signals sent out and received across the country by both producers and parasites.  They signal that police are no longer getting away with shooting first and then asking questions never.  These early apologies are left handed at best.  For example, Jabba's was done in civilian clothing, not in a police dress uniform.  That is a clear attempt to compartmentalize the man from the organization.  But for this very reason it will not prove satisfying and the herd will not be quieted.  It will in fact motivate the herd to demand more.  Change is coming to Ferguson and the rest of the nation is watching.   Soon we will begin seeing police officers prosecuted for murder.  This is what will eventually change the mindset of the jackboots - when their own control system is turned against them.  When the centurions figure out that the system no longer has their back, they will be much slower to attack.

So I will close with another open message to the centurions of the establishment, the POLICyEnforcers, the LEOs: You folks fall into one of four major catagories:

1. Smart good cops.
2. Smart corrupt cops.
3. Dumb good cops.
4. Dumb corrupt cops.

You who fall into category 1 have already made your  voice clear.  You are the cops who have publicly stated that you will not support Tyranny and that the constitution is the law of the land.  We the people are glad to support you.  Yes, we will be cutting your pay, benefits, pension and overtime in locked step to what has happened to everyone else in society.  This is done unapologetically. Either accept the new deal or go find a better job in the civilian sector.  If you decide you can do better as a producer than as a consumer then we thank you for past service and wish you the best of luck going forward.  But if you dig your heels in for outsized pay and benefits, we will absolutely destroy you.  Capich?

You who fall into category 2: the true measure of your intelligence will be to know when the jig is up.  You have fucked the people over for a long time and gotten away with it but now you need to mend fences and get your minds right regarding the new social order that is coming.  Don't wait for us to come after you!  Change now, take what ill-begotten gains you have already stolen and let enough be enough.  Failure to do this right here, right now means you are not a #2 but rather a #4.

You who fall into category 3: you have played the role of conforming sheeple in the department long enough.  You have allowed the peer pressure to push you around and you have allowed your valid concerns that police work is the only thing that you are intellectually capable of doing to guide your actions too long.  You know what is right and what is wrong and it has been weighing on you.  So decide now if you are going to grow the balls it will take to stay in the employ of the people or whether you should consider a new career in ditch digging.  But regardless of what you decide, know this:  what worked for you in the past will not work for you going forward.  So break away from the peer pressure and cross that blue line from dark into light and then accept whatever consequences might occur as a result of your foolish service of the dark side.

You who fall into category #4: There is no saving you and we do not intend to waste one ounce of our precious time or energy trying.  F#$% off and d!3.  Or just f#$% off.  Its your choice, really.

Metals and miners update - rising wedge in JDST?

Metals are extremely oversold right now according to sentiment indicators but that only suggests that some kind of significant bottom is near, not that one is in place.  As the old market saying goes, markets can stay irrational longer than you can stay solvent.

A good combination of tools is the wave count plus the sentiment indicators.  My best wave count for metals is shown below in the form of JDST - the triple leveraged junior miner short ETF. It suggests that after a 5 wave gold rally that ended July 2014, JDST (like any other thing which has just had a downward EW 5 wave impulse) deserved a relief rally.  That should come in the form of an a-b-c  move which, it seems to me, would make perfect sense to end in a rising wedge as shown.  Why?  Because per my oft quoted proprietary observation/indicator, 3rds and Cs often end in rising wedges.  Also, a 5th wave of that wedge would take JDST back to the level of the prior 4th wave which is something else we should be looking for in the rebound.

If JDST breaks the top rail of that rising wedge and then comes back down insides as I think it will, I might just be tempted to put all of my trading cash into JNUG because the snap back rally is going to be serious.  It will either form E of 4 or possibly even B of C of the entire metals bear since silver was $50 and gold was $1900 per ozt.  Either way, the rally would be spectacular with hundreds of percent easily at stake from the JNUG lows.

Fear and Discipline and Patience will reward M+M traders.  My only hope is that the DJIA crashes a little before wave blue C of the chart below so that I can take TVIX profits and move them into JNUG at or about the time when JDST hits $18.50 or $19.