When Conspiracies Are Not

Two weeks ago the subject of the US Markets was the Ides of March and the spectre of bad news that hangs around that date since the death of Julius Caesar in 44 BC and a prospect of a week of bad news. On 14 March the yiel d on the US 10 year Treasury note was at a double top at 2.039%. On the 16th the FOMC meeting increased rates by 0.25% and on Friday the yield closed at 2.488% - an increase of 22%. That is one piece of bad news from that week which is now starting to have significant effect. Yet higher rates might be the least of it; say, compared to a conspiracy not kept secret. 

A good many people believe in a conspiracy that has the purpose to protect the US dollar against the truth of its real value. Something that will be revealed when – not ‘if’ – the prices of gold and silver break loose from the price suppression exercised via the Comex and LBMA exchanges. Most people also have heard of the Illuminati and how its wealthy members are in behind the scenes control of practically everything that happens, even if many do not believe this can really be done in secret. 

A group that could be termed the Illuminati II has not opted for the secrecy commonly associated with the ‘real’ Illuminati, the Bilderbergers and a few other groups, perhaps even to include the CFR! The new Illuminati – if not a merely an offshoot of the old one – goes by the name of WEF; World Economic Forum. These easily recognised people meet annually at Davos to discuss topics of their common interest. The annual agenda is not secret and the media do report on many of their discussions, of which a number are going on simultaneously in order to accommodate the about 3000 people who flock to Davos. 

The WEF was founded in 1971 and is funded by perhaps a 1000 member companies who mostly have annual turnover in excess of $5billion. Annual visitors include Heads of government of many countries and their entourage, more billionaires than one can shake a stick at and the elite from many sciences and also economists. The WEF openly discusses humanity’s precarious future as projected by longer term analysis of current trends in demographics, the climate, geopolitics and other relevant factors. 

They have long ago decided that a global system of competing nationalist states is a primary cause of the dismal future they project. Their proposed solution is a NWO – a New World Order consisting of a single global government over all countries, a new currency and monetary system and a reduced global population that hopefully would ensure a stable future without threats of war or lack of sufficient food. Many other subjects on the agenda have been reported on, but the mass media do not find these topics of any value to expand circulation or readership. When reporting on Davos, the mass media only rarely ventured beyond who attended and what the accommodation costs during Davos week. 

Here we have a major conspiracy, one that is openly stating belief the world needs changing if we want to avoid a major catastrophe when the environment no longer can accommodate and support the human race. And all the time hard at work making the necessary preparations over many decades to effect this exact change. As Edgar Allan Poe wrote in his “The Purloined letter”, a secret can be successfully concealed by placing it out in the open among other items of a similar nature. 

Doing so each year at Davos without their objectives attracting much public attention, they have made steady progress all the time. Klaus Schwab and friends realised that for their plans to succeed they have to take care of certain stumbling blocks. A major one they faced was that in a country with a good and growing all round economy and with its citizens living a good life that they see improving year after year, neither the country nor the people will favour fundamental changes that would mean losing their unique identity. The first step in the WEF strategy, therefore was to impoverish the broad middle class; so that they have to depend on the government for most or all of their needs. Then they will be malleable and easy to convince of the need for change.

It is a strange coincidence after the founding of the WEF in 1971 and their drafting of top decision makers in many fields, that in 1975 an international treaty was signed that would have the effect for developed countries to begin a process of exporting their manufacturing base – the primary source of their material wealth. It is called the Lima Declaration. In the life of a country a decade or three is a short time, but by the 1990s under Clinton the US was in full swing to do exactly what the WEF wanted the US as primary wealth producer of the world to do. As a result, China now occupies that position, while in US entitlement payments to the unemployed are well along to bankrupting the country – more so now that inflation is becoming rampant. 

In January 2022 an article speculated that the reason why 190 governments almost simultaneously implemented the very similar regulations to combat Covid perhaps can be explained by the network of WEF Young Leaders – people who were earmarked for senior positions in business and government. The WEFYL program has been running for a long time, with people like Merkel and Putin as alumni – but Putin stated openly that he is in opposition to the WEF agenda and he is working to protect Russia from the global reset. 

The WEF slogans of “Build back better”, somewhat copying Trump’s MAGA, and the now quite often seen quote, “You won’t own anything, but you will be happy!” also resonate with the ideal of a ruling elite. Supporting them is a necessary core of skilled and educated people selected and programmed to produce as per the WEF’s guru. The workers, the ‘happy’ masses with no property and living off the UBI ‘payroll’, are doing all the necessary routine work that the robots as yet cannot perform. 

This future sounds ominous to me, as it will be a static and perhaps stagnant system with no incentive to improve. I also think that during the extended period needed to effect the breakdown of existing structures, true wealth in the form of the precious metals will regain their lustre and achieve new value. Russia and China will continue to accumulate them and in time the metals will play a more important role on the geopolitical and global economic scenes. It could get happen sooner than we think. 

Euro–dollar. Daily close 

Euro–dollar, last = $1.0981 (www.investing.com)

The currency markets spent past week or two in the doldrums – named for a windless period that often left sailing ships with drooping sails for days at a time when passing through the tropics and crossing the equator. In the markets it more likely is a period of insufficient fluidity and much uncertainty leaving many large participants standing on the sidelines and waiting for signals to inform them what the new direction will be. 

The dollar index strengthened every day last week, even if daily gains were small. By the end of March or early in April there should be more clarity on any changes to the monetary system – among other aspects of international interest – that are being considered by Russia, China and others in response to the near global sanctions imposed on Russia. Having been excluded from SWIFT and with other conventional restraints no longer relevant, Russia has freedom to experiment with replacements and alliances that would create new destinations for its exports; with China, India and others taking advantage of lower prices for many commodities, including ol. 

DJIA daily close 

It has become widely acknowledged that Wall Street has found a supporter with very deep pockets – another years long conspiracy theory that is now becoming accepted as the truth. At this rate it won’t be long before there are no more left to investigate! 

The DJIA is breaking above steep bear channel XY and back into channel MA to signal that the rally is not yet over. The breaks are still quite marginal and so far there is no sign of new acceleration after breaching the resistance; which might imply it is still too early to celebrate an extension of the rally. Perhaps by early April it will become clear what the market will do when its sustained rally to remain in bull channel JKL has to deal with the breaks above new technical resistance. 

DJIA last = 34861.24 (money.cnn.com)

Gold London PM fix – Dollars 

Could one argue that after a period volatility sparked by the invasion the rather quiet gold market of the past 10 days or so is also now trapped in the doldrums. The major players in the bullion market are twiddling their thumbs waiting for definite indications whether gold will regain its key role as barometer of currencies and measure of real wealth. Or is that gold will it fall victim to the introduction of CBDCs, an option that has been mooted by various central bank spokesmen, including the UK Chancellor of the Exchequer as a means to counteract the crypto currencies and gain better control over the people – as being planned for by the WEF.

2022 will prove to be a year of greater transition from the world we have known most of our lives and the changes have the potential of either relegating gold to a material that is useful for the manufacture of costume jewelry or to re-assert its traditional role as the primary measure of wealth – as long as the elites have most of it! 

A stronger PM market looks to be the more likely alternative as long as the gold price can remain in bull channel KL and this should be confirmed if the price can break into the higher channel JK again. 

Gold price – London PM fix, last = $1953.80 (www.kitco.com)

Euro–gold PM fix

Euro gold price – PM fix in Euro. Last = €1773.60 (www.kitco.com)

Despite the stronger trend in the dollar index last week, the price of gold in euro did manage to stage a bit of a rally. The price of the metal did not get range bound as happened to both the euro and dollar gold, but gold gained from the combined changes in the currency and bullion price. 

The break above bear channel JKL, after an extended and quite volatile sideways drift across the channel, must have come as a welcome surprise to owners of gold in Europe – far more so than the gains US investors in the metal enjoyed. The pull back was quite severe, but the improvement last week warns of either weakness in the dollar quite soon or that gold is destined to recover a life of its own despite any changes in the value of the dollar. 

Silver price. Daily London Fix 

Silver daily London fix, last = $25.62 (www.kitco.com)

The successful attack on the silver price to neutralise a large number of by then old options that were deep in the money seems to have set a match to demand for silver. The resulting spike reversal at the end of the attack hardly hesitated on the way up to take the price from the low of $12 to a high at the top of channel JKL at $25.885, for a gain of 240% in less than six months 

That was of course not acceptable to the powers that be, and suppression returned with a vengeance to compress the price mostly in channel PT and finally ending the slide with a rebound off line H. The initial rally was reversed at the top of channel CDE, after which a new rally now has succeeded to hold mostly within channel KL. A recent break above channel CDE failed to hold, but unless there are substantial changes following events in the Ukraine, the unrest in the markets for commodities can be expected to result in a new challenge on the resistance. As the price action showed after the March 2020 attack, when the suppression action on silver happens to trigger fresh demand, the price can surge much higher and at a steep rate.

Also keep in mind that the failed attempt to effect a short squeeze a year ago must have left a large number of mostly young silver bulls with a feeling they have been cheated by the Big Banks. Given evidence that the tide has changed in favour of silver and that they could recover their earlier losses and more, it would not come as a surprise to find them back in the market and keen to purchase much more silver – the metal this time, as they have now been taught, not the paper silver.

U.S. 10–year Treasury Note

10–year Treasury note, last = 2.488% (Investing.com )

Still is interesting to see how often sudden sharp moves reach only as far as distinct support or resistance lines in these chart patterns – as if the price knew in advance that is as far as the move should go. It also happens when the price gradually creeps up to a trend line and then halts to hold there, as it is trying to do along line L. Yet, when it happens with a steep and sudden move out of a consolidation pattern, the change comes as more of a surprise. 

The sharp move higher that launched off support of line C to hold in channel L broke clear above the resistance of line R, then returned to touch the line before resuming the new trend. This brief reversal to touch a broken trend line, the so-called ‘goodbye kiss’, is a frequently observed feature of a strong trend. The hesitation at line E is also no surprise and could imply the end of the move, for now at least. If so, the yield could consolidate between lines E and R for some time. 

West Texas Intermediate crude. Daily close 

WTI crude – Daily close, last = $112.68 (www.investing.com)

Much the same comments regarding the sudden steep move in the yield of the 10-year Treasury apply here as well. The crisis that developed for the US and even more so for the EU as a consequence of the sanctions on Russia – which at time of writing has not yet fully materialised for the EU – has increased uncertainty about the other global energy producers being able, or willing, to supply the shortfall that has been created through the sanctions on Russia. 

Russia’s decision to have “unfriendly nations” pay for gas and oil in rubles is another recent change that, if successfully implemented and accepted, will have widespread effects on the cost of energy – especially if that practice causes the ruble to continue to appreciate against other currencies, including the dollar, as it has done since the announcement of the proposed payment change. It is possible that the petrodollar will also suffer, and perhaps do so in disastrous fashion if Saudi Arabia also were to open up sales in another currency. 

© 2022 daan joubert

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