InvestingWithInsight.com Notes DOW • The recent down-turn is a normal correction; we're still in the upward channel. • The chart shows we are down 562 points year-to-date, but that's only because the year started at a peak. NASDAQ (2:30) • It fell below the 50-day moving average and is close to breaking below the 200-day moving average. • If it does, it would mean there is real momentum to the downward movement -- a bad signal for the market S&P; 500 (3:20) • The most recent period of growth is almost twice as big as the last two periods • How long can the market go without at least a 10% correction? • The Fed and other central banks won't let a correction happen because we are so highly leveraged • We're in a very similar situation as we were in 1982. We're looking for a big fall similar to that in '87 • However, a big fall today could mean the collapse of everything Housing (8:30) • When housing prices were at the bottom in 2008/09, the Fed bought $1.2 trillion in home mortgages, and prices shot back up. • Prices are only rising because of the Fed's purchases of mortgage-backed securities. • The Fed is now curtailing their purchases again; we can expect housing prices to decline also. • Home sales and purchases are also slow because many existing mortgages are at a low interest rate, and people don't want to give that up in order to buy new homes. China's Trade Fraud (13:25) • The world has been hoping that China would pull the rest of the world out of trouble. • However, the chart below shows that China has been fudging the numbers. • They're not as robust as they claim. Russia & the Global Currency Reset (15:50) CNBC: US Warns Russia Anew on Sanctions -- but Other G7 Members Demur http://www.cnbc.com/id/101575633 "Jacob Lew is warning Russia that it could face tougher economic sanctions because of its actions in Ukraine, but so far other economic powers are showing a reluctance to go as far as the United States... on Saturday [Apr 12], the policy-setting councils of the IMF and World Bank were to meet." • They're endeavoring to remove the USD as the world reserve currency and replace it with the IMF's SDR (Special Drawing rights). MarketWatch: Lew: G-7 United on Possible More Russia Sanctions http://www.marketwatch.com/story/lew-g-7-united-on-possible-more-russia-sanctions-2014-04-11 "Lew said there was broader understanding in Congress of the need for IMF reform... Earlier Friday, the G-20 set a deadline of the end of the year for Congressional action on IMF reform. The group said they would explore moving ahead on reform options without the United States." • The world is sick of the US having an unfair advantage in the world • We've been printing billions of dollars without experiencing any inflation -- exporting our inflation around the world. • All nations need to have USD on hand in order to buy oil, including Russia. • The new SDR proposed by the IMF is made up of the USD, British pound, Euro, & Japanese yen. • Now, they're adding the BRICS nations plus maybe others (Iraq) to the make-up of the SDR. • Because the USD is such a large part of the composition, it has given the US veto rights on anything the IMF tries to do. • However, with China growing, our proportion will fall, and US veto rights will fall along with it. • The new SDR structure is being fought by some in Congress, but there are many others whose policies consistently line up with a new world order. ZeroHedge: US Threatens Russia Over Petrodollar-Busting Deal http://www.zerohedge.com/news/2014-04-04/us-threatens-russia-sanctions-over-petrodollar-busting-deal "*U.S. HAS WARNED RUSSIA, IRAN AGAINST POSSIBLE OIL BARTER DEAL *U.S. SAYS ANY SUCH DEAL WOULD TRIGGER SANCTIONS *U.S. HAS CONVEYED CONCERNS TO IRANIAN GOVT THROUGH ALL CHANNELS ...A Russian commodity exchange where reference prices for Russian oil and natural gas will be set in rubles instead of dollars will be a strong blow to the petrodollar. Rosneft has recently signed a series of big contracts for oil exports to China...Reuters reports, that Russia is close to entering a goods-for-oil swap transaction with Iran that will give Rosneft around 500,000 barrels of Iranian oil per day to sell in the global market...If Sechin decides to sell this Iranian oil for rubles, through a Russian exchange, such move will boost the chances of the "petroruble" and will hurt the petrodollar." • This gas that they're offering to China may be gas that was intended for Europe. • The US is trying to restrict Iran to control their nuclear weapons pursuit, but Russia is circumventing this. • If demand for the petro-dollar falls, trillions of dollars come flooding back into the US and inflation skyrockets. • When there is fear in the world, people run to the USD for security. • If there is a threat to the USD, watch for conflict in the world to increase; it will probably be engineered to increase demand for the USD.

• published: 13 Apr 2014
• views: 2792