Two Ways The Government Is Lying to You Right Now

I don’t normally post any financial/investment articles as I have no interest in this particular subject either to become a player or market observer. What attracted me to this article was its headline.

Michael Lewitt is a well known financial and market expert, and author. He’s made spot on predictions of the market trends and what’s interesting to me is his anti-establishment stance and how he gets to profit by it from looking and finding the bugs in the system and passing it on to his clients to take advantage of the information and enrich themselves.

I like the opening lines which fit my own view of the establishment and the overview of the rotten system as a whole.


Email Michael
January 12, 2017

We live in an inauthentic world, yet people perceived to be telling the truth are demonized and shunned by the establishment. The fact that it took everybody so long to figure out that mainstream media promoted “fake news” to support their own political agenda is testimony to the fact that we claim to seek authenticity but settle for insincerity, falsehood and duplicity in our personal, business and civic relationships. Those of us who refuse to settle are considered “difficult.”

The question I keep asking (because I am decidedly “difficult”) is whether these people are wrong because they are stupid or because they are lying. I’ve come to conclude that the two alternatives are not mutually exclusive though one of the worst sins our society commits against itself is confusing educational achievement and wealth for intelligence or good intentions.

The U.S. government is a major promoter of fake news. It lies to its citizens about virtually everything, but one of its specialties is the publication of phony economic statistics to justify failed economic policies. Whether this will change under the new administration remains to be seen (I’m not holding my breath and neither should you), but the last eight years were characterized by one false narrative after another bolstered by phony government statistics.

These two outright lies should concern you the most.

Lie #1: Our Unemployment Numbers Are Spectacularly Low

Lie #2: Inflation Keeps Getting Lower And Lower

Read further



There’s no such thing as “the economy.”


A Rising Stock Market Does Not Signal Economic Health

The headlines tell us that the Dow Jones is up around 1,000 points since Donald Trump won the election on November 8th. The conventional wisdom is that this shows how much confidence people have in Trump’s ability to generate a healthy American economy. The argument is that if people are willing to buy stock in American firms, this indicates their belief that those firms will see improving profits over the next few years. They then draw the conclusion that more profitable firms indicate a healthier American economy.

Although this argument is correct about stock prices reflecting an increasing belief in the profitability of US firms, it makes a major error in assuming that profitable firms necessarily mean a better economy.

The Economy Isn’t A Thing

First, it’s important to understand that phrases like “a healthier economy” are themselves problematic. The “economy” is not the thing we should be concerned about. In fact, in some fundamental sense there’s no such thing as “the economy.” As Russ Roberts and John Papola memorably put it in the music video “Fight of the Century:”

The economy’s not a car.
There’s no engine to stall.
No experts can fix it.
There’s no “it” at all.
The economy is us

Things are not “good/bad for the economy.” They are good or bad for the people who comprise the market process, specifically in our capacity as consumers. All the economy amounts to is people engaging exchanges in order to better satisfy their wants. What we should care about is whether or not people are able to better satisfy those wants.

And “better satisfy” here means not just more and better goods and services, but at cheaper prices too. Lower prices mean that consumers have income left over to purchase goods they otherwise couldn’t, enabling them to better satisfy their wants by satisfying more of them.

Distorted Signals

In a genuinely free market, the profitability of firms is a good reflection of their ability to better satisfy the wants of consumers. Our willingness to pay for their goods and services reflects the fact that we receive value from those products, so their profits are at least a general signal of having created that value and satisfied consumer wants.

In fact, consumers get much more value out of most innovations than is reflected in the profits of firms. A famous study by economist William Nordhaus estimated that profits made up only about 2.2% of the total benefits created by innovations. If you doubt this, ask yourself how much it would take for you to give up your smartphone and its connectivity. Then multiply that by all of the smartphone users in the world. Then compare that to the profits made off smartphones. The total value to consumers will dwarf the profits of smartphone producers.

However, when markets aren’t free, profits do not necessarily reflect value creation. Firms who profit through privileges, protections, and subsidies from governments demonstrate that they are able to please political actors, not that they can deliver value to consumers by better satisfying their wants. The profits of cab companies with monopoly licenses reflect their ability to foreclose competition, not the quality of the services they provide.

In a world of this sort of crony capitalism, profits are de-linked from a connection with consumers and we cannot say with confidence that any given firm’s profits reflect value creation.

Notice though that such firms might still be profitable! In a world of cronyism, many firms will do very well, especially to the extent that they have connections with those in power, or are willing to do what they are told in order to curry such favor. To the extent that cronyism will make many firms profitable, that would be reflected in rising stock prices and stock indexes.

That, I would argue, is precisely what we’re seeing today as Trump takes power.

The Trump Effect

Trump’s economic nationalism and cronyism will surely enrich a number of American firms. Tariffs on imported cars, for example, might well improve the profitability of US car manufacturers. The same would go for steel or agricultural products. Firms like Carrier that are willing to exercise political clout, or roll over in the face of demands or threats from various levels of government, could see their profits rise as a result of new government-granted privileges. The record-setting Dow Jones sure could be right that the profit stream for many US firms will increase under Trump.

But don’t confuse that profitability with improved economic well-being. Trump’s policies may well enrich many firms, but they will impoverish the average American. We are not better off having to pay more for domestically produced goods thanks to a 35% tariff on imports. We are not better off when firms are given tax breaks or direct subsidies to keep their production in the US where labor or other inputs are more expensive, raising the costs of those goods and increasing our $20 trillion dollar national debt.

We are not better off when firms have to meet the conditions set by a strongman before he will “allow” them to operate in the US, which only serves to reorient the economy away from pleasing consumers to pleasing Trump.

This sort of cronyism and discretionary use of power turns the positive sum social cooperation of the market into a negative sum battle among firms to curry favoritism and power from the state. Entrepreneurial energy that could have brought forth innovative technologies and cheaper, better goods and services is diverted to seeking profits through what Ayn Rand so memorably called the “aristocracy of pull.”

This diversion of entrepreneurship will have profound long-term effects, as it severs the link between profit-seeking and satisfying consumer wants. Profits will be seen as the reward for knowing the right people and how best to curry favor from them, not from innovation and efficiency.

And when profits become about favoritism not value-creation, the moral case for the market, or what’s left of it anyway, disappears as well. Profits can at least in principle be justified in terms of their link with consumer want satisfaction and the creation of value. As profits become increasingly arbitrary, even those firms who continue to create value will have a harder time justifying their profits. This loss of confidence in the ethical basis of the market will erode support for truly competitive markets even more, even as profits for many might increase.

Don’t be fooled. The Trump rally is not a sign of economic health, but of what quite likely will be harm to all Americans through higher prices, fewer choices, and a reduction in entrepreneurial innovation.

Profits and rising stock prices in truly free markets reflect real value creation and want satisfaction. Profits and rising stock prices in a system of economic nationalism and cronyism reflect the satisfaction of the desires of those with political power. Firms and political actors might win more power and influence, but average Americans, many of whom voted Trump and his crew into office, will be the big losers.

Steven Horwitz is the Charles A. Dana Professor of Economics at St. Lawrence University and the author of Hayek’s Modern Family: Classical Liberalism and the Evolution of Social Institutions. He is spending the 2016-17 academic year as a Visiting Scholar at the John H. Schnatter Institute for Entrepreneurship and Free Enterprise at Ball State University.

He is a member of the FEE Faculty Network.


NYSE and its stocks will sink to the bottom of the ocean if they were in a shipping container

Many people think that the stock markets are the “indicators” and signs of whether the economy is healthy or otherwise. The mainstream media controlled by Wall Street and governments are always painting a rosy picture of the economy and placing the wool on people’s eyes.

As many (not that many actually) know the too-big-to-fail banks have failed, but because they are still seemingly conducting business as usual, most would think , “Oh its just a small hiccup” and are very confident that their governments are there ever-ready to protect their monies and assets. Anyway, that’s what an elected government is for right? Wrong!

The boneheads in the financial sector depend on the central bank$ to “regulate” the casinos and Ponzi schemes of the world’s banks and bursars. In every tight situation they would wait for the central ban$ter$’ solutions, eagerly with their fingers crossed hoping the sun shines again the next day for another bigger scoop, or a newer scheme to rob the masses. The picture is downright pathetically horrendous.

Once again, the rosy view on U.S. economy wilts

Federal Reserve bigwigs meet this week to debate when to raise a key short-term U.S. interest rate. The outcome, however, is not expected to be a cliff-hanger. Wall Street investors only see a 15% chance that the Fed will hike rates.

The final nail in the proverbial coffin may have come with a decline in retail sales and manufactured goods in August, reflecting persistent caution on the part of consumers and businesses. – Market Watch

Latest today…a real classic garbage from who else – The Financial Times

Stocks gain and the dollar drifts ahead of central bank meetings

Oil prices rise on talk of Opec deal to stabilise global production

For me, I look at the sea where I could see the ships. If the horizon is empty of freighters it simply means no cargo is moving. One cannot make up the data of the Export-import (Exim) business. No buying means no selling, no manufacturing means no trading, and its that simple to gauge the (real and true) economy.  The Baltic Dry Index figures dropped to its all-time low.

In trading Thursday, the benchmark Baltic Dry Index continued its fall with another record low at 298, its first value ever below three hundred points. Capesize and supramax day rates were down, while panamax vessels traded slightly higher. The worsening market is forcing an increased volume of vessel and enterprise sales, and, for well-positioned buyes, creating an opportunity to purchase at distressed-asset prices. – The Maritime Executive

The word economy has taken a turn from its original meaning and intention by Keynesian economists and what is apparent is its now only meant to measure the profits, wealth and assets of the 1 percent and has nothing to do with the 99 percent.

The reports of the shipping industry is terrifying news for the global economy. The horizon is empty and the shipping lanes are scarce if not empty of cargo ships.

The shipping industry is taking a beating.

As the Wall Street Journal reports, about 1,000 ships capable of hauling 52 million metric tons of cargo will be cut up and sold for scrap metal this year. Owners have only ordered 293 vessels this year through July — a stark decrease from 2010 to 2015 when owners were buying 1,450 ships annually.

The reason? A stagnant global economy that stems back to little growth in Europe and a slowdown in China. Chinese imports from the European Union fell 14% last year, the WSJ reports. In the first quarter of this year, Chinese imports from the EU fell 7% from a year prior. Exports to Europe have fallen as well. Continue reading

That sinking feeling for Hanjin as falling freight rates fuel a global shipping crisis

They just keep slitting each other’s throats with lower rates,” the  shipbroker says. His sense of desperation is common in the industry, but he still asks not to be named. Tomorrow he will be fixing deals for the same shipowners who have flooded the market with new vessels in recent years, driving shipping rates lower as the glut of unused vessels grows. – The Telegraph

China’s ports hit hard by global trade slowdown

In the first half of the year, Hong Kong handled 10 per cent fewer containers than during the same period in 2015 and is on course for its fifth consecutive year of declines. – FT

Look up the Internet for more reports of the dying sea-freight business, and you’d find its definitely not a sign of a healthy global economy, but the world’s economist will tell you differently and that’s because the economic profession is in a sad state

It is not an exaggeration to say the current reputation of economists is probably just below that of a used car salesman. The recent failures of economic policies to boost growth or employment have tarnished this image even more. This, however, is in sharp contrast to the past when economists were seen as the intellectual roadblock to popular misconceptions, bad ideas, or more importantly, government policies sold to the public on false assumptions. – Frank Hollenbeck

Hanjin to return chartered vessels

South Korean container line says it is losing $2m a day

Hanjin Shipping is to return all of its chartered vessels to their owners to cut costs, after the South Korean container line said it was losing $2m a day amid the logistics chaos prompted by its bankruptcy last month. – FT

If Wall Street and the world’s con-stock marketers, and their stocks are in shipping containers they would all sink to the bottom of the oceans…literally.


So The Economy Is Good eh?

What are the Dow and the stock markets latest reports ?  I don’t know but I’m sure its all good and the Bull is still charging?

In fact here in Kuala Lumpur, the KLSE (Bursa Malaysia) is having a gala run – The Bursa Bull Charge around the city and many roads are closed causing traffic jams! I have no idea what the event is all about but it sure is a celebration of sorts. Why they insist to have it on a working day beats me.


Looks and sounds like everything is fine here in Malaysia and that the economy is still great given the multi-billion corruption around the 1MDB scandals, GST, dipping Ringgit and oil price.

What’s going on in the heads of Malaysians?

I’m flabbergasted as I just finished reading this Financial Times report:

Shrink the big container ship to fit the world

Its reporting about the seventh largest container shipper Hanjin  gone bust. broke…kaput!

The bankruptcy of Hanjin Shipping, the world’s seventh-largest operator, has made the mismatch of ambitions and reality very clear. This was supposed to be the age of the ultra-large container ship, piled with thousands of steel boxes holding clothing, toys and Apple iPhone 7s. The world turns out to need smaller ships, or fewer of them.

Do readers understand that?

The shipping industry have been hit hardest in the current economic crisis and the BDI dipped to its all time low.

People are reading the wrong messages.

Central banks have focused most of their efforts on levitating the Dow as well as energy markets for some time now.

Why? Because the general public does not pay attention to any other market indicators. They do not care that equipment giant Caterpillar is having the worst profit period in the company’s history. They do not care that the Baltic Dry Index, a measure of global shipping rates and thus a measure of global orders for raw goods, continues to bounce around well below its original historic lows due to crashing shipping demand. They do not care that according to the World Economic Forum, oil demand has dropped to levels not seen since 1997. They do not know nor do they care to know. Their only barometer for economic danger is the Dow, and central banks know this well.

Thousands of ships are being destroyed – and it’s terrifying news for the global economy

As the Wall Street Journal reports, about 1,000 ships capable of hauling 52 million metric tons of cargo will be cut up and sold for scrap metal this year. Owners have only ordered 293 vessels this year through July — a stark decrease from 2010 to 2015 when owners were buying 1,450 ships annually.

The reason? A stagnant global economy that stems back to little growth in Europe and a slowdown in China. Chinese imports from the European Union fell 14% last year, the WSJ reports. In the first quarter of this year, Chinese imports from the EU fell 7% from a year prior. Exports to Europe have fallen as well.

When the buying stops the selling stops and the stores close down. The trading of goods in stores, malls and supermarkets are the true indicators of the real economy. The trading has taken a great beating as

Factory Orders Keep Falling

Both The Pacific and The Atlantic oceans are reportedly seeing less ocean freighters (as many ships are sent to scrapyards)…but Wall Street, NYSE and the Dow insist the “tradings” (digital on screens) are bullish …

Anyway, the financial reports aren’t meant to reveal the sufferings of the layman on the street. Its purely to aggrandize scums like Soros, Buffet and their corporate sluts like Gates (of hell) and Suckerberg (a misspell).

What a bullshit .


Lies, Damn Lies and Rigged Markets

Thus the collective lie is seen for what it really is; a lie, while still being promoted and enabled by all of us as truth. When ‘the’ truth is finally spoken about the lie, we are all personally attacked because we enabled, no…we embodied the lie and thus we must all act in mock surprise and horror that we were lied to. The result is monumental hypocrisy by all parties involved, even the so called innocent bystanders and spectators, on par with the outrage expressed that there was actual gambling going on in Casablanca. The games people play.


It has been fascinating to watch Michael Lewis and the Flash Boys spread the shocking truth that the stock markets are rigged……rigged I tell you. One need only watch the video of author Michael Lewis’s, IEX’s Brad Katsuyama’s and BATS Global Markets President William O’Brien’s recent CNBC Wrestlemania 666 to witness the hilarity as certain vested interests, such as the mainstream financial media and the BATS exchange, defend the indefensible all in the pursuit of the almighty buck.

And who could forget the cheers erupting from the NYSE floor as each ‘point’ was scored. I could almost hear Howard Cosell calling the blow by blow on national pay-per-view TV. “Down goes Frazier, down goes Frazier, down goes Frazier.” One always knows the position one will take when our paycheck and/or livelihood depends upon our position. Though in some cases we can signal otherwise, such as the floor traders cheering the ‘news’ even though they feed off the same money teat.

I like to play a game with my fellow shoppers while walking the aisles of our local grocery store. Mrs. Cog, at times a reluctant, at times an enthusiastic participant, usually plays the straight man in the verbal exchange. We roll up to a spot and either Mrs. Cog or I will grab an item off the shelf, always near someone else who is shopping or possibly an employee who is stocking shelves, and express shock at the high price. In my very loud out-loud voice I will proclaim, “But honey, the government says there is no inflation” making sure the sarcasm is dripping off every word.

Almost always there is some type of reaction, be it verbal such as a snort, a sigh, a chuckle or outright laugh. Or maybe something more subtle, such as a shift in their body language, a tilt of the head, the sideways movement of the body or the shifting of weight from one foot to the other. I usually take any and all of these clues as a sign to engage them in some sort of conversation. Rarely are Mrs. Cog and I surprised by what we hear from our hooked fish. It is nearly universally agreed upon that of course there is inflation, lots of inflation, and naturally the government is lying about it. It seems that nearly all the people we talk to hold a view very different from that of the supreme monetary authorities. When venturing into other subjects we discover similar results.

So why then are we so surprised when we are ‘informed’ of something we already know? Clearly most participants in the stock market suspect something is very wrong, though they might not know exactly what. The average ‘investor’ who has not already removed themselves from the market ‘playing field’ still play the field with the hope they might pick up some profitable crumbs. Many veterans already ‘play’ the waves in the market when the big boys jump in and splash about; picking up leftovers and spillage from the trough when the pigs have had their fill, plucking dimes from in front of the steamroller.

Wall Street - Clean

The answer for this behavior is so simple that many will be outraged by the answer in the same manner the BATS Global Markets President William O’Brien was outraged that someone would yell fire in the burning movie theater before he could extract his last pound of IPO flesh. We all participate in the collective lies because we all perceive we have something to gain in not fighting the collective lie. And that something might just be to avoid scrutiny and stay under cover while the wolves circle the flock looking for the injured and newly aware to pick off for a snack or early supper.

Bottom line…the more dependent we are upon something, anything, the more likely we are to enable and support that ‘thing’ regardless of the fact that it might no longer be supporting us in the manner it previously did and might actually be killing us. Once this realization is fully denied, usually by never acknowledging its existence as it applies to us personally, we can then all go about our life laughing or mocking whatever ‘it’ is because ‘it’ is no longer, or never was, perceived as directly harmful to us.

Thus the collective lie is seen for what it really is; a lie, while still being promoted and enabled by all of us as truth. When ‘the’ truth is finally spoken about the lie, we are all personally attacked because we enabled, no…we embodied the lie and thus we must all act in mock surprise and horror that we were lied to. The result is monumental hypocrisy by all parties involved, even the so called innocent bystanders and spectators, on par with the outrage expressed that there was actual gambling going on in Casablanca. The games people play.

This is how we all arrive at the theatre of the absurd, the CNBC Wrestlemania episode where everyone has a dog in the hunt and all are expressing their own conflicted point of view defined by their own set of standards and parameters. The apoplectic BATS O’Brien was in a near panic because someone with credibility had declared the market ‘rigged’. He was obsessed with the word ‘rigged’, as if to imply that any other word, such as damaged, faulty, glitchy, prone to errors, den of thieves, clusterf**k, anything would have been more acceptable than ‘rigged‘. My God, to expose the market to be anything other than fair and balanced might just spook the sheep before they are fully fleeced.

There was the CNBC crew who, while anxiously trying to show they could remain impartial and ask reasonable and fair questions, were also as desperate as William O’Brien was to pull the wool back over the eyes of the un-sheared sheep. After all, if the markets were actually rigged where the hell has CNBC been all these years? Wasn’t their job supposed to be business reporters as opposed to what they have become, corporate PR repeaters and CON drum beaters? Sadly their credibility rested upon O’Brien’s shoulders and O’Brien was withering fast under the hot spot lights, spittle spouting from his Hollywood white teeth.

Wallstreet Sign Clean

Then there was author Michael Lewis, who has single handedly slain many an ugly giant and was once again riding his prancing white horse to the rescue of us poor peons and wage slaves. Just buy the book Damnit, it’s all in there. While he pulls off in a convincing manner that he is genuinely and deeply concerned that the markets are rigged, something he didn’t fully understand until he researched the book, his mission now was to sell the book. Just buy the book Damnit. What I find so laughable is that the vast majority of people, including the people at Wrestlemania, have not read the damn book, yet everyone is arguing about its contents including me. Pure unadulterated absolute insanity.

Then we have IEX’s Brad Katsuyama, clearly scripted to be the ‘good’ guy here. After all he gave up a lucrative J.O.B. that paid him millions each year to win at playing the market. Don’t even think about losing in this rigged market when the algos know only one way…..up, for now at least. He left it all behind in order to strike out on his own and slay those big bad HFT algos.

Or at least to devise a work around, then gather capital and create his own exchange where those who want honest execution of their trades can bring their business to him. And doesn’t everyone want honest execution of their trades? Of course they do. Next problem…..carefully explain to EVERYONE that their trades aren’t being honestly executed where they presently trade. While he may be speaking truth, he was just as conflicted as everyone else in the room….floor….building….island.

While Brad also appeared sincere in his pronouncement that the markets were rigged, it was precisely this rigging that would enable his new exchange to be profitable. Without the general belief that the markets were rigged his exchange would be just like every other exchange out there. Actually it would be worse because his gizmo setup prevented him from charging the HFT crews for privileged access to front run the order flow if all else failed. Meaning that while he was calling the kettle black, his pot would not be the white knight if not for the black market. Be careful Brad, the FBI HFT investigation just might ruin your coming out party.

I suppose the cheers and chuckles coming from the NYSE exchange floor peanut gallery during this wrestling match were the most hypocritical of the bunch on a multiple of fronts. Most market ‘insiders’ are now aware that the NYSE exchange ‘floor’ is about as relevant as teats on a bull and remains a fixture of the ‘market’ for the same reason banks still retain brick and mortar store fronts for the public.

The floor brokers are there solely to provide the illusion that humans are still riding shotgun over the HFT herd, thus maintaining some sort of CONfidence that the market is still ‘there’ and not actually residing in some random access memory chip in a server farm in East Whateverford, NJ. I always laugh when I see the NASDAQ ‘market’ site located in Times Square, NY. It reminds me of those flashing lights placed on computers in movies since the 50’s. They help you to think there is humanlike activity going on in there. The comparison to WOPR of WarGames is too close for my comfort. Shall we play a game?

WOPR - Clean

The NYSE understands the value of human capital grazing the ‘trading’ floor where floor brokers hurriedly poke at hand held computer devices as if executing critical trades that might just be my 6 shares of IBM crossing the tape now. All the while the HFT algos have scalped them six ways to Sunday on every frigging execution. Those good ole boys down there know their days are numbered and anything that can stave off the culling of the floor herd until early retirement kicks in is AOK by them.

I guess you could say they are the most honest amongst the bunch. They know where their bread is buttered and it sure isn’t in a ‘market’ server farm providing so called ‘liquidity’ and a natural human pause in the middle of market insanity. In an admittedly imperfect market system of yesteryear, the floor brokers were there to push back on market runs and to be a buyer or seller of last resort when no one else would stand up. You know, true liquidity as opposed to the fantasy HFT liquidity that amounts to a mere drop in the bucket when it’s really needed.

That is so old school in this brave new world. So when they were cheering on the idiocy of BATS O’Brien they were cheering their own book and being honest about it. You’ve got to love old school greed and conflict of interest worn right out in the open and on your sleeve.  The buggy whip makers are pleading for a reprieve, or at least to be dealt back into the game for one more hand. And they might just get something out of this latest public ‘scandal’ unless the US government rushes in and throws a TARP over the entire mess under the cover of national security.

There are lies, there are damn lies and then there are rigged markets. I would suggest that there always were rigged markets….but at least it was Spy vs. Spy, human against human and the Earthlings had a fighting chance to steal with the best of them. Now with Artificial Intelligence (is it really artificial if it’s intelligent?) almost upon us we puny humans are just worried we might be dealt completely out of the hand. It’s the end of the world as we know it and I’m just fine. Cue the Terminating autonomous killer robots in 3……2…..1….


The Most Feared Equation In The World


“The techniques I developed for studying turbulence, like weather, also apply to the stock market.”

Benoit Mandelbrot (1924-2010) Polish-born, French and American mathematician who discovered the Mandelbrot set of intricate, never-ending fractal shapes named in his honor.


Special Report from Sister Ciara


The mathematical equation you are viewing right above these words is, without a doubt, the most feared one in the world—so feared in fact that it led to one of the world’s top economists, Martin Armstrong, being jailed without charges or trial for over 7 years in the United States because he not only discovered how this equation worked in relation to stock markets, he refused to divulge exactly how he discovered it was so.

The complete saga of how Martin Armstrong rose from being a millionaire at the age of 15, to becoming the most feared economist in the world is not the intention of this letter—but is a most fascinating story everyone should become acquainted with, and just click HERE to find out why.


Instead what I want to focus on here is how, like Martin Armstrong applied this equation to stock markets, the Sisters have, likewise, successfully applied it to news—more specifically “predictive news”.

This most feared equation is called the Mandelbrot Set and is the set of complex numbers c for which the function f(z)=z²+c does not diverge when iterated, i.e., for which the sequence f(0), f(f(0)), etc., remains bounded—and don’t worry if you don’t understand this because even some scientists have enormous difficulty understanding it too.

And just like one can use a modern smartphone without having the slightest idea of how it is made, or even being able to describe all of the parts that make it, so too is the Mandelbrot Set utilized in many spheres and disciplines by experts who can’t fully describe it, they only know that it works.

At the heart of the Mandelbrot Set equation, you see, is the repetition of patterns at all scales from micro (tiny) to macro (large)—which more simply put means that everything known to man is locked in a never ending series of repeating cycles.

And with this being so, the ability to predict anything is only limited by knowing its full cycle—which for almost everything is nearly impossible due to the infinite universe we live in.

This cannot, however, be said about the historical cycles of man (History Always Repeats Itself) as for thousands of years the circular nature of governments, societies, economies, wars, you name it, have not only been extremely well documented, they make the world we live in today as predictable as the headlines of yesterdays newspaper.

Even the Bible knows the truth of Mandelbrot Set and in the Old Testament Book of Ecclesiastes (Chapter 1 Verse 9) it plainly states: “What has been will be again, what has been done will be done again; there is nothing new under the sun.”

Just knowing the Mandelbrot Set equation though, and attempting to apply it to whatever ones particular discipline may be, is not easily done because of the “synergy of experience” needing to make it work—after all, and as well put by Martin Armstrong himself, “I can read a book on how to do brain surgery. Would you like to be my first patient?”

But in the right hands of those knowledgeable, like the Sisters, about the Mandelbrot Set, and in knowing the “cycles of man” too, the results of combining them are astoundedly predictive and have produced for us these results:

On 28 June 2007, the Sisters in their report titled US Banking Collapse ‘Imminent’ Warns French Banking Giant gave you a nearly one and a half years warning about the 2008 global market crash.

On 25 October 2008, the Sisters in their report titled Iranian Leader In Secret Meet With Obama At US Military Stronghold In Hawaii gave you a 7 year warning about the United States rapprochement with Iran this past week.

On 1 August 2014, the Sisters in their report titled India Shocks World, Joins Russia Against Obama Regime told you the truth that the Western invasion of Libya was related to the planned Gold Dinar, and which only this week a US State Department email released under court order confirmed was true.

These are only three of the hundreds of such examples I can cite (and for those of you who have followed us for years well know he truth of), and the other commonality they have was at the time of the Sisters publishing them were met with high ridicule and disdain.

And the reason for this being so was revealed by Edward Snowden, who not only told the world about the United States government’s extreme hatred of truth tellers like the Sisters, he also provided classified US documents [Warning: Under US Federal law, it is a crime for government employees or active military service members to click on the preceding link] detailing how the American intelligence community showing how US intelligence have actively infiltrated the Internet to manipulate, deceive and destroy the reputation of the Sisters and everyone else like them.

At the exact same time these US intelligence agencies launched their war against the Sisters and other truth tellers, you should also understand, the New York Times admitted that nearly every news organization in America allows the news to be censored by government officials, and for the first time in American history, a law was passed allowing the US government to use propaganda against its own citizens.

So let me boil the essence of this letter down for you:

At the exact same time that the Sisters continue to risk everything to keep the truth flowing to you, your own government is, beyond dispute, censoring the news you’re allowed to know while openly propagandizing against you too—and you still believe and support their “mainstream” media publications over ours?

Now I happen to believe that once anyone, especially YOU, knows the truth of a thing they will act in their best interest to defend what they know is right and true—after all, this battle is all about equations—ours being the utilization of the Mandelbrot Set equation versus theirs—“Garbage In, Garbage Out”.

To who wins this battle is, also, entirely up to YOU—either support us, or those like us, who want to see you educated and knowing the truth, or continue to support those who have openly told you they are deliberately manipulating you.

They believe you to be nothing more than ignorant religious nuts and gun clinging psychopaths not deserving of anything—we, on the other hand, KNOW you to be just frightened about a world that has become so complex and convoluted you don’t even recognize it anymore.

But let me tell you a secret—they can only win if they keep you scared, we can only win if you aren’t.

Which are you going to be?

With God,

Sister Ciara

Dublin, Ireland

23 January 2016


RBS tells investors: ‘sell everything’ as crisis nears



The Royal Bank of Scotland has recommended its clients prepare for a “cataclysmic year,” as major stock markets could drop by a fifth and Brent oil could hit $16 a barrel.

“Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,” said the bank’s credit team in a note sent to clients, quoted by the Telegraph.

According to RBS analysts, the markets are showing the same stress alerts as seem before the 2008 crisis.

Andrew Roberts, the bank’s credit chief, says that “China has set off a major correction and it is going to snowball.” China “has very high debt levels (as a percentage of GDP) given they are still emerging” and crucially they have accumulated this debt incredibly fast, he said.

He predicts European and Wall Street markets to drop from 10 to 20 percent this year. London’s FTSE100 was predicted to plummet even lower.

“London is vulnerable to a negative shock. All these people who are ‘long’ oil and mining companies thinking that the dividends are safe are going to discover that they’re not at all safe,” said Roberts.

READ MORE: UN sees moderate global growth for 2016-2017 due to major ‘headwinds’

“We are moving in a short-term $26 target and once reached down to $16. Our forecasts are for this to occur through 2016, but the risk is it occurs in Q1 as global oil demand drops off according to IEA forecasts and the world runs out of ships to store it in,” he said.

This follows a bearish outlook for this year from Roberts’ team, issued late last year.

At the time Roberts said there are “a number of bad headwinds affecting the world right now, which will worsen in 2016.”