Financial, Economic and Social Mood Update (August 1, 2024)
In my August 2024 blog I will reference a recent article published by Elliott Wave International of Atlanta, Georgia with respect to their monthly publication titled the “Global Market Perspective.” They discuss the nominal value of the European stock market, which can be compared to markets in much of the rest of the so-called western world or the industrialized world such as the markets in North America and Japan. The key word here is “nominal.” Nominal monetary values for stocks, bonds, real estate, automobiles (especially new cars and “collector” cars), and collectibles (such as precious metals, art, books, antique toys, antique furniture, etc.) are near all-time record highs. But real values are in fact very, very depressed. The purchasing power of fiat currency is miserable, the cost of living is sky high, the middle class has all but disappeared, crime is rampant, unreported & largely not even prosecuted and now we stand upon the horrific prospect of a Third World War in Europe, East Asia and in the Middle East. The American stock indices (the 3 major ones plus the many more minor ones) are currently as of this date August 1, 2024 at 91 percent of their cumulative record high.
Why would we be surprised that voters in much of the western world and in the (formerly) industrialized world are about to make very big changes. It has already happened in countries such as France and the UK and will likely happen in the USA as well. The misuse and the abuse of so-called “labels” here must be brought to our attention. The mainstream media (which never tells the truth about anything) likes to label many populist or conservative political parties as “far right wing.” This is utter nonsense, it is false, it is inaccurate and in many cases is it outright character assassination.
The fact of the matter is that the “experiment” known as the European Union has gone very wrong. Adding yet another level of government and regulation above the national level is wrong. The elimination of peaceful national sovereignty is wrong. Destroying the purchasing power of fiat currency is wrong. Deliberately opening national borders to import “new people” to replace the resident population (especially the resident voters) is wrong. And goading the Russian Federation into a Third World War is downright evil. NATO should no longer exist and the failed European Union should be dismantled as well. The time has come not to fight Russia and the rest of the world, but to join them as peaceful and productive members of the organization structures which they have built all over this planet – here I refer to entities such as the BRICS, the Shanghai Cooperation Organization, the Belt & Road Initiative, the Asia-Africa Growth Corridor, the Trans-Asia Railway and the International North-South Transport Corridor. NATO, the European Union, the G-7 and the UN have all failed and need to make way for something far better, more productive, more equitable, more inclusive and peaceful.
The USA is right now in the final stages of a collapse similar to what transpired in the former Soviet Union in 1991. The coup d’Etat that “removed” President Joe Biden and the attempted assassination of President Donald J. Trump illustrates this. The Democrats are attempting promote an unelected successor (Harris) and have thus nullified their own party primary season – nothing could be less “democratic.” The “uniparty” (the majority of the power structure in both the Democratic & the Republican parties) support World War 3 against Iran and much of the Islamic world on behalf of the criminal Netanyahu “government” in Israel. Here is a very recent article published by Haaretz, the oldest & the 3rd largest newspaper in Israel which shows that opinion in Israel is by no means all favorable towards Netanyahu: https://prepareforchange.net/2024/07/25/musk-and-megachurch-rapture-and-reprise-netanyahus-dark-speech-to-congress/.
The USA plans to base the next generation of nuclear missiles on German soil with the approval of the lackey criminal “traffic light” government in Berlin – the criminals of the Social Democratic Party of Germany (SPD), the Free Democratic Party (FDP) and the German Green Party which is the ultimate party of war in Germany – promoting World War 3 against the colossus of Russia. This criminal government in Berlin has the tacit approval of the Christian Democratic Party (CDU) and Christian Social Union of Bavaria (CSU). If these missiles are deployed in Europe by 2026 they may force Russia to launch a preemptive nuclear strike against the west merely for her own self-preservation. The reason for this is that the new technology would give the Russians merely six (6) minutes to decide whether or not the new aircraft carrying the missiles have hostile intent against Russia. This madness must NOT BE ALLOWED TO HAPPPEN. The time has come for NATO to be disbanded and for all peoples everywhere to downsize their respective national military services. There is no reason for war and there is no reason for people to take up arms against anyone else, period……………………..no reason for young people of any country on earth to put on a military uniform or to point a lethal weapon at anyone else.
| The so-called “Far Right’s” (i.e., populist) Election Gains Rattle Europe’s Traditional Powers “Sometimes people ask me how stocks can be making new all-time highs when there are wars breaking out. Everyone’s angry. Everyone’s protesting everywhere. Socionomically, I think part of the explanation — granted not all of it, but part of it — comes from the perspective of the Stoxx 600/gold ratio. In real money terms, it’s an ongoing bear market, and it’s been that way for decades.” That’s a recent quote from European Financial Forecast editor Brian Whitmer. Here’s his chart and commentary from the July GMP: |
| “The brackets and arrows capture the three most important eras of European evolution: the Enactment Era, which saw politicians establish a central bank, launch a common currency, and pave the way for Europe’s eastward expansion. Next came the Expansion Era, which lasted approximately three years from 2004 to 2007 and saw Europe undergo its largest enlargement in terms of people and land mass since the Middle Ages. Then came the Bailout Era, which arrived after another bear market and saw officials toil to save the eurozone from a series of sovereign debt crises. Finally, the Depression Era. It’s the next logical socionomic step, and it should persist at least as long as the mania that preceded it. During this era, the same nation states that viewed the EU as an advantage when social mood was waxing positive will come to see membership as a liability.” |
| Today’s most overlooked financial news story: The Before & After Psychology of “Peak Equity Allocation” You have to admire the conviction of U.S. investors. U.S. investors are certain the bull market in stocks will continue and they have acted on what they believe — indeed their certainty is measurable in the financial assets allocated to stocks. That allocation today stands at a new, all-time record of 34.7 percent. The chart below shows you this metric across the past 70-plus years. Note well the peaks in 1968, 2000, 2007, and 2021. Yes, those previous peaks each stood near a 30 percent allocation. But now please look again at what followed each of those peaks: A devastating decline in stock prices. |
| These are two examples from Global Market Perspective, yet there’s so much more: 15 dedicated analysts track all the most important financial markets at every degree of trend — from intraday ticks to epic price waves that unfold across decades. |
