How To Make 8% Every Year With Zero Risk

12/30/15

Is it possible to make 8% investing money in stocks every year with zero risk?

Yes.

How?

Well, by now, all investors should know that there are no longer stock ‘markets’. They have been replaced by stock ‘carnivals’. Carnivals are collections of games that are rigged by the owner of the carnival. Think of it this way. We could bet money on basketball games but surely we would not be correct all the time. In a fair game, our team would lose sometimes. But what if we bet our money on a game that was rigged? The winner was selected before the game started. So instead of betting money on an NBA game, what if we bet our money on the Harlem Globetrotters? They have only lost a couple of games in the last 50 years and will lose even fewer in the next 50 years. Why? Of course the game is rigged. The game is for our entertainment and not a true competition of basketball skills. It is an exhibition or sorts.

Since the Federal Reserve Bank seized ultimate power in their August of 2007 coup, they have been controlling stock prices for our entertainment and control. And, since we know the game is rigged to be a perpetual bull, all we have to do is wait until the fourth quarter and then place our bets. Of course, we know stocks simply have to move higher every single year from now until the end of time or the dopey citizens might suspect something is wrong. How can this be achieved?

We all know that the Fed runs the stock carnival and we all know about the PPT. Their only mandate in reality is to rig stock prices to the moon. Yes, I know. All that other stuff is just noise for the dumb folks. The only question is this. How can we use the Fed’s manipulative practices to our advantage?

There are indeed gyrations in stock prices along the way and when prices dip, it is hard to hold long positions in stocks that are now in a bubble and more over-valued than ever before. When stocks start to fall in price, our natural inclination is to sell out. But what if the risk of capital loss was removed?

As it works out, we can invest without risk if we examine the chart that I have included below. It is very simple. 

The chart is the Dow Jones Industrial average on a weekly basis for the last eight years. This is the gold line. I have traced the first three quarters of each year in blue and the last quarter of each year in green. Since 2009, the Dow has now had seven consecutive positive years. (Yes, I am writing this with only a few more trading days in the year and the Fed is fighting like mad to make 2015 positive as well by injecting stocks with fresh capital at the Yellen preferred time of 10:30 am. I’m betting they do so. Weeeeeeeeeeee!!!!!) So again, the question is how do we reduce risk to zero and still get carnival gains?

Pay attention to the green lines. Since the Fed wants us to feel richer as we keep digging our debt holes deeper and deeper, they goose stock prices every year in the fourth quarter. What if we only invested money starting at the beginning of every October and sold at the end of every December? Have we found the Harlem Globetrotter team of investing/ betting?

Okay. In the chart below, we can see that the Dow has climbed from 9000 to 18000. A double in seven years is a ten percent annual return. But, there were some nasty declines along the way that could shake even a CNBC devotee out at some point. Those are along the blue lines. Now take a look at the green lines. By my rough calculations, the Dow has gained about 9000 points since 2009 with risk mostly in the blue lines. Just following the green lines, the Dow gained some 7000 points of that 9000 with zero risk (except for a ever so slight loss in 2012 because the Fed was about to stop QE). Or, about 8% per year risk free! 

Thus, we can bet on the Harlem Globetrotters to win every game as long as we only put our money to work in the fourth quarter. 

In fact, if we go all the way back to year 2000, the same strategy would have worked every year except 2007 and 2008. Now the Fed is completely in charge and it looks like the Dow will climb to the sky! Nothing can stop it. The Fed has a printing press and no laws or morality to constrain it. We just have to remember that risk-free investing is only available in the fourth quarter. See the chart below for the truth.

Oh, one more thing. I drew a red line at the top of the chart noting the declining RSI since 2013. Normally, that would be a red flag indicating that the rally over the last few years is a fake. I also drew a red line at the bottom along the falling trading volume. Stock prices have risen as volume has been falling. That would also be a red flag warning that something was wrong. But nevermind. We aren’t in reality anymore. We are at a carnival and we are all winners. Weeeeeeeeee!!!!

8 years weekly DJIA

Chart courtesy StockCharts.com

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

’Twas The Night Before The Fed Meeting

12/24/15

Since we now live in an entirely different world in which stock prices are manipulated every minute of every day by central bankers, we should put our efforts into updating our literature to reflect the new ‘nanny-state’ of our existence. I have begun updating nursery rhymes. In keeping with Christmas spirit, I have now updated the poem commonly known as ‘The Night Before Christmas’ to more accurately reflect the true Santa Claus - the Federal Reserve Bank. 

’Twas the hours before the Fed announcement

and throughout the NYSE

Not a trader was trading

Not even the propagandist, shill, cheerleaders on CNBC

With hope in our hearts 

And ‘buy’ orders in hand

Investors waited anxiously

For Janet to announce that the bubble would indeed expand!

With me and my data

So different from government lies

I knew stocks should fall

But I knew Janet felt otherwise

Our hearts beat faster

As the two o’clock hour neared

What would Janet say?

Would there be anything to fear?

And suddenly there she was

Lift off was here

Higher rates were coming

Wall Street let out a cheer!

They knew as I did

Janet would not fail

She has a printing press

And no reluctance to tell a tall tale

At first the Dow staggered

Realizing the end could be near

The bull market rally

Zoomed higher as a wall of money suddenly appeared

Up Amazon, up Google

Up banking, utilities, nothing could fall

Every sector was in the green

The PPT bought it all

With price fixing in

the bubble could grow and grow

The Fed won’t let us down

All stocks are green no matter what we sow

So twenty trillion is debt 

is nothing to fret

Neither is a bubble in stocks

Against the fed we don’t want to bet.

Enjoy the Fed’s bubble and Merry Christmas to all!

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

Expanding Bubbles

12/16/2015

Thursday, 12/10/15, stock indices rose because (so all the pundits reckon) Fed Chair Yellen made a speech reinforcing her determination to begin raising interest rates on December 16. Friday, 12/11/15, the next day, stock indices plummeted because, well, for the same reason. In bubbles, indices can rise or fall for exactly the same reason. 

Monday, 12/14/15, stock indices see-sawed back and forth between positive and negative like a ping-pong ball in a lottery machine. Up a hundred. Down a hundred. Up a hundred. Back to zero. Then, in the last 45 minutes, the Dow burst higher some 130 points because, well, the PPT wanted the index higher. What brings me to this conclusion? On a day which the Dow rose some 130 points, declining stocks led gaining stocks by a ratio of 4 to 1 on the NYSE. Yet, the reverse was true of the Dow. Gainers led decliners 23 to 7. The Fed has obviously become better at ‘precision’ buying geared toward manipulating our psychology. Bubbles are driven by insanity.

Tuesday, 12/15/15, stock indices immediately burst higher with the Dow up some 200-plus points late in the day. Why? Because higher rates are surely on the way! Ain’t it great! Bubbles ignore reality.

Only in a bubble does this happen. Stocks continue to rise. Okay. That’s fine. However, median PE ratios are now higher than they were in either 2000  or 2007. Stock indices are driven by companies that sport PE ratios that now require exponents. AMZN now has a PE of some 10 cubed. Netflix has a PE of 10 squared. Consumer spending is supposedly up in November and yet retailers reported ‘Black Friday’ sales as being down some 10% from last year. Consumer confidence supposedly rose last month yet the Fed said americans lost some $1.2 trillion dollars in net worth in the third quarter. Bubbles embrace the lie.

Food for thought. Ford’s sales are up and McDonald’s sales are not. For the year, Ford is down and McDonalds is up. Why? McDonalds is a member of the Dow and  Ford is not. Stock prices are for our manipulation. They have nothing to do with financial fundamentals. Bubbles are artificial.

So what should we expect when the Fed raises interest rates on 12/16/15 for the first time in 8 years? Really? Doesn’t everyone know that the Fed stands ready with trillions of dollars to manipulate the Dow higher for our prolonged hypnosis? 

The chart below shows us a good example of resistance turning into support. Dow 17200 (the blue line) looks to be the Fed’s ‘line in the sand’. Use this line as the new bottom courtesy the Federal Reserve. Enjoy the bubble!

DJIA - 2 year, December 15, 2015

Chart courtesy StockCharts.com

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.

Bubbles, Anyone?

11/20/2015

Investment bubbles are not hard to spot. There are times when insanity trumps everything and prices move higher and higher in spite of reality’s tethers. Bubbles float on insanity. Wild speculation. Irrational expectations. Hope.

This week that ended 11/20/15 is a good example of another such bubble. 

Mass murderers struck Paris and Mali. More retailers reported slower to no growth. The Fed issued more warnings of a December rate increase. Japan lapsed into another recession. Europe is so slow ECB chief Draghi continued his rhetoric of doing anything and everything to save European stocks. Uh, I mean the European economy. And yet, the Dow gained over 3.5% on the weak. What gives?

The explanation from the carnival pundits was that the US was a ‘safe haven’ for investors who were fearful and had no where else to put their money. Really? Well I’m going to have to call ‘bulls#%t on that one. The chart below is the emerging markets ETF, the EEM. Emerging markets were actually up on this Friday (11/20/15) almost twice as much as the Dow. The pundits are all idiots. Case closed. See the chart.

Chart courtesy stockcharts.com

EEM ytd

What could be another rally excuse? Oh yeah, corporate earnings are beating ‘analysts’ expectations. Well, ‘analysts’ are more akin to fortune tellers in their prognosticating prowess but that’s another story. The analysts are simply Wall Street shills whose function is to generate ‘buying’ opportunities. They do so by lowering expectations so that bloated companies can simple roll over the bar rather than jumping it. A case in point is the clothing retailer Abercrombie and Fitch.

The company reported their most recent quarter as such. Check out this quote from the Business News: “Abercrombie's sales have fallen for 11 quarters in a row, but the decline has slowed in the past two quarters, signs that business is improving after the company revamped merchandise, improved customers' in-store experience and shuffled management.” That’s right. The writer wants us to believe that business is improving after 11 straight quarterly declines in sales. Business is improving because, according to the writer, sales are not declining as fast as they were. Further, a company executive said that the company remains ‘cautious’ going forward and they expect the holiday sales quarter to be flat compared to last year. 

To be fair, Abercrombie did say that income more than doubled due to cost cutting. Cost cutting can only juice earnings for so long. And, as comparison on this day, fellow retailer The Gap reported a 2% decline in sales and yet the stock price was up over 7.5%. However, Abercrombie was the clear winner. What does 11 straight quarters of declining sales and a tepid holiday quarter prediction get you in a bubble? Of course! The stock price is up over 25%  today as I write. See the chart below. 

ANF ytd

Chart courtesy stockcharts.com

Bubbles are like this. Isaac Newton described the bubble of his era as ‘the madness of men’. True, but what is behind such insanity?

The Federal Reserve Bank comes to mind. The members have all echoed the same warning. They are going to raise interest rates at their next meeting in December, 2015.  Since their only function is to support Wall Street while they steal all the assets from the feckless US government and her profoundly and profanely ignorant citizens, it seems to me that FRB is goosing the stock indices higher to give themselves a little downside cushion should a selloff great their action. How else could one explain the best weekly stock gain all year for the major indices?   

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

The Bulls*#* Markets

10/17/2015

Everybody these days is a liar and a thief. We all know about US and China propaganda. Now, look at the Germans. Car maker Volkswagen was caught cheating the emissions standards in their diesel vehicles. Their biggest bank, Deutsche Bank, was again fined for cheating and stealing as they rigged libor rates. Last quarter they were fined some $2.5 billion and now they are facing an additional fine of $6 billion. Seems they were also laundering money for the Russian gangster land. Of course, there is no problem. In today’s world run by the new world order of banksters, if the bank can’t pay the fines the central banksters of Europe will just steal the money from the ignorant sheeple and give it to the bank. How do you say ‘liar’ in German? Is it ‘lugner’?  

Speaking of liars, how about a joke? Here it is - Chinese economic data! Yeah, I know. Please stop laughing. 

How about another joke? Here it is - US economic data! Yeah, yeah, yeah. I know. Please stop laughing. 

After all, it’s the bulls*#t that makes stock markets go higher. Very few companies actually report rising revenue. Few still report real rising earnings. Sure, companies are buying back stock, making ‘accounting adjustments’, counting ‘statutory income’ as real income, laying off workers, and pretending that ‘one time expenses’ aren’t really ongoing expenses. For instance, the banksters all pretend that legal fees are ‘one-offs’. Well, when you are in the criminality business, legal expenses are in truth ongoing expenses. It’s part of doing business. But, earnings these days come from accounting trickery. 

As an example, soda sales have been trending lower for decades. Yet the stock prices of Pepsi and Coke have been rising for years. McDonald’s stock hit an all-time high this week even as revenue has declined for seven straight quarters. And, while McDonald’s claims the new breakfast menu has been a hit, many franchisees report the exact opposite. But who cares? This is a bulls*#t market. Reality and truth be damned. Stock prices must always rise to keep the elite even more elite and richer.

Then there is the political clown show in the US. The slime that passes for presidential candidates all seem to lament that the income disparity in the US is at an all-time high. Indeed. However, Ms. Clinton in particular seems a bit disingenuous on this topic as she has spent her life in politics in Washington, DC and New York. Washington DC is number one (as rated by all surveys) as having the most income disparity and New York is the worst state for income disparity. All she has done for all her life is to work to make the rich richer and the poor poorer. 

Poor old Bernie Sanders laments the same issue and is yet completely clueless as to the solution. Sadly he rails against capitalism. But if Mr. Sanders had a single functioning brain cell he would realize that capitalism was busy righting the wrongs of corporate greed in 2008 until that capitalistic cleansing process was rudely interrupted. As we all recall, the banksters bankrupted themselves with all their derivative trading. Capitalism stepped in and began to reprice the stock prices of these offending companies at something close the zero. They were all going out of business. Goldman Sachs. Bank of America. Citigroup. JP Morgan. Wachovia (remember them?). Lehman. AIG. Need I go on?

But then the Congress to which both Mr. Sanders and Ms. Clinton belonged abdicated their duty and surrendered the nation to the most vile of all banksters - the FRB. Had the great bailout of 2008 not transpired, none of these bankrupt institutions would be infesting our economy today. Capitalism was cleaning house. None of these super rich banksters would be super rich today. The playing field would have been leveled by just a bit. Yet, due in part to the action of our feckless politicians who are all witless idiots, the big banks are bigger than ever, they have laid off tens of thousands of workers, and banking is more expensive than ever. And, we taxpayers are saddled with about $10 trillion dollars more in debt. And these same jellyfish politicians want us to believe they are going to ‘fix’ income disparity? Who do they think they are fooling?

Well, there are sheeple democrats and sheeple republicans who feel their political party has the plan. And that’s why we are indeed doomed this time. 

And while I’m ranting, has no one noticed that Mr. Obama is Richard ‘Tricky Dick’ Nixon’s twin? Nixon bugged the White House. Obama bugged the world. Nixon ran secret bombing campaigns in Cambodia. Obama will launch a rocket from a drone anywhere in the world. Nixon had a enemy list (reporters). Obama has an enemy list (republicans). Nixon would send his goons out to visit enemies. Obama will send his goons (like the IRS or any of the many US government terrorist agencies) to shake down his enemies. Nixon conspired to limit liberty. Obama thinks government should give citizens liberty hall passes. I’m just waiting for Obama to give us the two finger ‘victory sign’ and I will swear he is Nixon incarnate. 

Sorry for the rant. I don’t know how I could start off with the subject of liars lying about corporate earnings and then drift over to lying politicians (sorry for the oxymoron). It is just sad to see what the US has dissolved into. Stock prices and stock indexes around the world are now getting a boost from central banker intervention. Either zero interest rates or outright stock purchases are indeed pushing stock prices higher. But should they? Should we trust the people that are blowing the asset bubble higher by the day?

What we are told seems to be far different from reality. For instance, the US left Afghanistan because the Afghan army was trained and readied by the US military. Did you see the latest video of the Afghan recruits drilling and marching? They were lined up and when given the command to turn and march, several of them turned the wrong way. Some began to march in different directions. It was like watching Gomer Pyle. Yeah, these guys are war ready!

Medicare Part B premiums are about to rise some 50% for 7 million enrollees. Yet, seniors are not getting a social security cost of living raise because the gooberment says there is no inflation. Really? What about health care premiums? What about banking fees? Okay, don’t get me started.

Here is what we should all understand. Capitalism allows for real markets to function in that buyers and sellers continuously barter for agreed prices of goods. Buyers must see value or need in a good commensurate to the asked price. Supply and demand keeps things in balance. When central bankers buy stocks, they are not buying stocks because they see value or because they have a need. They do so to manipulate the prices higher. Falsely higher prices are bubbles. Thus, bulls*$t.  

Since a picture is worth a thousand words, let’s look at a chart of Coke, Pepsi, and McDonald’s over the last 2 years on a monthly basis. Coke is the black line, Pepsi is the blue line, and McDonald’s is the gold line. All three are up nicely during this time frame. Yet, in the soda world, diet soda in particular is losing drinkers. That is a quarter of Coke’s business as they derive half of their sales from soda. McDonald’s as mentioned is experiencing seven consecutive quarters of decline in revenue. But who cares, right? We have a bubble to attend. See Chart 1.

Chart 1: Courtesy StockCharts.com 

What’s that? I’m crazy? Maybe. But check this out. We all know that the FRB intervened in the markets big time on August 24, 2015. That was the thousand point turnaround in an hour or so. I’m sure all the stocks that were selling off so violently were actually of great value and therefore the selling was overdone. Well, actually an even better performer (since 8/24/15) than our three stocks that the previous chart exemplified was the Greek stock ETF, the GREK (in red). Yes, Greece has outperformed McDonald’s, Coke, and Pepsi since August 24, 2015. See Chart 2.

Chart 2 : Chart courtesy StockCharts.com

Who’s crazy now? Enjoy the bulls8#t! Uh, I mean, enjoy the bubble! Oh, by the way, and if anybody cares anymore, Coke, Pepsi, and McDonald's all sport P/E multiples in the mid to upper 20's. 

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

The Central Bankster Crucifix

09/17/2015

The FRB, the ECB, the PBoC, and the BoJ are all central banksters. It matters not which country they infest. It matters not which form of gooberment they act as marionette. It matters not how much economic destruction they instigate. Their wicked intent is the same. Total power. Total domination. Total rule. Total control. Total enslavement. 

Their weapon is greed and their shield is populous ignorance. Citizens and countries alike want to live far beyond their means. Citizens want shiny trinkets and countries are led by politicians lustful for power. They both depend on central banksters who have larceny in their souls. When money runs dry, both turn to the banksters to create more. The new money is created through debt forged by greed. The price of money creation is levied upon citizens through taxation. The cruelest tax of all is inflation caused by money created from debt. Central banksters work to create inflation by increasing the supply of money which in turn devalues the purchasing power of the currency. The banksters grow more powerful by controlling both the value of the currency as well as its number. The citizens realize a decline of living standards, a bankrupt government structure, and ultimately a loss of liberty.

As such, the wealthy scramble for influence and favor from such a powerful banking establishment. Capital is, after all, the heart of capitalism. Capitalism is what puts bread on our table. Capitalism must remain fair for it to survive. Do central bankers promote capitalism? Fairness? Equity? I would argue that we need to confront these banksters, who act like blood-sucking vampires, with a crucifix. Where can we find one?

A genius wrote the following (an excerpt from the entire document) years ago regarding central bankers:

“It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages, artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society-the farmers, mechanics, and laborers-who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.”

If readers recognize the writer, they get an ‘A’ in US history. The writer was President Andrew Jackson and the words are from his veto of the central bank charter of his time. The year was 1832. It should be noted that President Jackson is the only US president in history to leave office with a balanced budget and zero national debt. Stated differently, the US national debt has been rising since President Jackson completed his second term. What did Jackson understand that is apparently beyond the intellectual means of today’s citizens?

Jackson explained further his reasons for this veto of a central bank charter. 

First, he argued that the central bank is a mostly foreign-owned, for-profit, private bank. As such, its earnings are derived from the sweat of american productivity only to be taken offshore to where the owners reside. It is a threat to sovereignty.  

Second, Jackson argued that the existence of the central bank was not fair to state rights. The central bank could set up branches in any state and yet those states could not impose taxation on the bank’s earnings as the states do on every other business in their domain. 

Third, Jackson argued that the US Constitution did not allow for a central bank either for reason of necessity nor for the control of the creation or valuation of the currency. 

Fourth, as related in the paragraph included above, was the issue of fairness. Jackson realized that the existence of the central bank would lead to unfairness as the rich would find favor from the central bank while the poor would have no such influence. The genius of Jackson was that he realized that human institutions are incapable of resolving fairness issues. Jackson believed that government’s role was to enact one set of laws and one book of rules that would pertain to all - rich and poor. Central bankers use a separate sets of laws and rules to benefit the rich. The proof is in today’s economy. The Fed now rules the economy and the stock indexes. Who has benefited from the Fed’s coup de etat in August, 2007? As we all know, the rich are getting even richer and the poor are getting poorer. Andrew Jackson would likely cross his arms now and say ‘I told you so.’ 

And finally, President Jackson wrote one of the most extraordinary, most profound, most profane statements in the history of human history. The first line of the next-to-last paragraph in his veto reads, “I have now done my duty to my country.”

Can the reader of this article even fathom a political leader anywhere on this planet doing something for the ultimate benefit of the average citizen of his country? Can the reader even imagine a President who would be even the least bit interested in fairness to the poorest citizens? This is even more extraordinary in that President Jackson knew the banksters would try to assassinate him. They tried. President Jackson knew the banksters would greatly shrink the money supply causing a quick economic depression. They did. Yet, the economy recovered just as quickly. 

Why then, should any of us cede power to central bankers who have their own agenda? Why would any of us think that these banksters know more than we do? President Jackson said in his veto document that when things turn unfair, then we, the citizens, have the right to air our grievances to our governments. Not in China, of course. That act could prompt the Chinese gooberment to imprison the complainer. Freedom has to be fought for every day. Otherwise, we americans will realize that our greatest strength, our liberty, has been surrendered. We cannot trust governments. We cannot trust government institutions. And, we surely can’t trust banksters!

When geniuses speak, we should listen. I will close with another quote from a genius. 

“Unthinking respect for authority is the greatest enemy of truth.”

Albert Einstein said that. 

In conclusion, when we listen to our politicians and their ideas to ‘fix things’, unless the first thing out of their mouth is ‘destroy the Fed’, then we should know they are an idiot just like all the other politicians. We should all pray, ‘Please God, send us another Andrew Jackson!’

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

Bear Markets and Rate Hikes, Oh My!

08/28/2015

The latest bear market has arrived and the Fed will raise the fed funds rate in September. There. It is written.

The conventional ‘bear market’ assumes two things. First, the major stock indices fall 20% from their recent highs. Two, there is a market. Both of these adages are now false in the new era.

Since the Chinese government now controls all things related to stock prices, uh, I mean the US government…, uh, I mean the federal reserve bank (FRB), numbers and percentages are no longer relative. Central bankers are now all the same - manipulative, stimulative, and mendacious. Data are just tools used to manipulate us. Now that the Chinese plunge protection team (PPT) and the US PPT have morphed into the same animal, we must realize that central bankers have assumed control of pricing for all which we servants buy. Therefore, comparisons of numbers and percentages of the new era of the ‘nanny-state’ in which we now find ourselves are no longer relative. Central bankers use numbers to control us and to manipulate us. Period. Past metrics are irrelevant. The way we know without a doubt these days when we enter a bear ‘market’ is when the television propagandist shills of higher stock prices all the time are screeching about ‘the best one-day rally since…’. 

The truth is, all of the best single day gains of all-time for stocks occur in the 1930’s and the 2000’s - bear markets. Now we are confronted with Wednesday’s (8/26/15) stock carnival gain followed by Thursday’s carnival gain that are the best since…, whenever! The bear market is here. 

It is interesting to note that the week started out with the largest point plunge of all-time on Monday in the first five minutes of trading only to be arrested immediately by the PPT and then boosted some 900 points back up. The PPT comes alive in bear markets. The interesting part is that realists and knowledgeable investors know that we are all living in the most gigantic bubble of all-time. Once again, the bubble has been engineered by the FRB. Therefore, bubbles burst and prices fall. What happened Monday and why was it significant? 

Sellers know that they are public enemy number one to the FRB/PBoC. Chinese authorities threaten to jail would-be sellers of stock and the FRB threatens to financially ruin sellers by bulldozing prices higher no matter what. So, sellers must be quick and prudent when going about their work. The Fed members emerge from their covens to attend their annual Sabbath in Jackson Hole, Wyoming at this time of year. As such, sellers know these sorcerers are in travel mode (and not sitting front and center at the NYSE) on Monday so none of us should be surprised to see a stock plunge on this day. But, in the age of electronics, these masters of manipulation managed to inject enough billions to drive the stock indices back up. 

Thus, my second premise is there is no longer any such thing as a ‘market’. The term ‘market’ suggests that buyers and sellers come together to agree on a price for goods bought and sold. This is the process that keeps the economy in equilibrium. However, since true markets will sometimes attempt to set prices lower, central bankers must now intervene as lower prices conflict with the goal of these nefarious bankers. Central bankers stoke inflation so they can increase the money supply of which they control thereby making them rich and the oafs poor. The PBoC in China has learned their lesson well from the FRB. They are now in full tilt manipulation mode as they are doing everything in their power to prop up their stock index including buying some $20 - $30 billion a day in stocks. Ditto for the FRB although they just lie about it. China has become so artificial now that they should consider changing the name of their country to ‘aspartame’ (the artificial sweetener).

So, how many of the best single days of all-time occur in the worst bear markets of all-time? All of them. We are evidently in a bear market now.

What will the FRB do with interest rates? Since these evil sorcerers think they can lie their way through everything (and they can due to the profound ignorance of their servants - just watch financial TV to see real morons in action), they will deny the existence of the bear while they use stolen money to manipulate numbers. Yes, they prop up stocks but what about economic data?

Indeed, the data is bogus as well. For instance, no one on the planet believes the ‘unemployment’ number that the US prints. No one seems to be able to comprehend the fallacy of unemployment falling as employment (worker participation) falls faster. No one seems to be able to comprehend that while we are told that home sales are on fire, home ownership in the US has fallen to the lowest percentage in the survey’s history!

But nevermind. The Fed is intent on raising rates so they will just produce happy economic numbers by using Voodoo. GDP was up in Q2 to 3.7%. Unemployment is 5%. If they need inflation to be rising, then inflation is rising. The wild card is the stock carnival. The FRB will not raise rates with a plunging stock carnival. Therefore, by the eye of a newt and the ear of a bat, or whatever incantation Aunt Clara (Janet Yellen) might use, stock prices must rise. There is nothing to see here. That bear running down the street is just a pathetic lost soul. Economic nirvana is achieved! Let the interest rates rise in September! 

Besides, the Fed tells that that everything is just fine. Why would we not believe them? 

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

Minimum Wages Hikes Are Actually Tax Hikes

The US federal minimum wage is getting a lot of attention these days. I have no doubt that the current $7.25 per hour minimum wage will be raised soon because american intellect has been diseased and destroyed by a Pelosi-like infestation of terminal ignorance. Americans are no longer capable of examining a problem fully to understand the correct solution. Sound bits, regardless of their relation to truth,  have replaced logic.

Consider this. At the current minimum wage of $7.25 per hour, a 40-hour work week over 52 weeks of the year would gross about $15,000 federal reserve notes in wages. 2015 tax tables, with no deductions, would net the worker about 14,500 after about $500 in federal taxes are deducted. For a standard of comparison, that worker could purchase about 5,800 gallons of gasoline during the year at around the current price of $2.50 per gallon.

If minimum wages were raised as suggested by unions and other groups driven by profound ignorance to the proposed $15 per hour, that same worker would gross about $31,200 federal reserve notes per year. Using the same tax table, the worker would now pay about $2,700 in federal taxes per year for a net of about $28,500. How much gas will the $15 federal reserve notes per hour worker now be able to buy?

As anyone with a a single functioning brain cell knows, wages push inflation. Even an idiot like former fed-head Greenspan knows that. Double wages doubles inflation, more or less. So, now a gallon of gasoline goes from $2.50 per gallon to $5.00 per gallon. With the new raise, the worker can now by about 5,700 gallons of gasoline. 

In this example, a doubling of the minimum wage would result in the worker being able to buy less gasoline than they could before the wage increase. Yes, this is theoretical as we all know tax rates can be changed and other factors can influence the actual price of gasoline. Increasing wages is not a zero sum game. Higher wages do not necessarily equate to a higher standard of living. As long as the FRB works to stoke inflation, living standards will continue to fall for the less-wealthy. 

And, it’s not the fault of McDonald’s. It’s the fault of the FRB. Word to the workers. Stop protesting in front of restaurants. They are not responsible for the loss of purchasing power of the currency. The FRB is. Protest in front of their building!

The truth is the current regime favors minimum wage increases because wage increases result in more tax revenue for a hopelessly in debt gooberment. And, those tax revenue increases are imposed upon businesses that are forced to pay more in wages. Essentially, minimum wage increases are actually sneaky ways to increase tax revenue. The american public remains none the wiser.

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

For Stocks, Things Are Always Getting Better!

06/2/2015

On Monday evening, May 18, 2015, ECB board member Benoit Coeure gathered together a group of bankers and hedge fund managers. That evening, Mr. Coeure gave them the ECB’s game plan for accelerating bond purchases in the euro-zone. Of course, this was a closed meeting and the general public, the slaves, were not privy to this information that would surely move equity and monetary indexes. This group was given ample time on Tuesday morning to set their positions accordingly. Then, around noon, the public was informed of the new ECB intention. This is known as ‘insider trading’ and it is a felony unless of course the person or institution using the insider information is a banker or bank or hedge fund manager. So, we can all conclude that equity prices are gamed by the same people who rig them. Average investors simply need to understand the criminality.

At the end of May, 2015, the US economic propaganda machine admitted that first quarter GDP was far worse than previously anticipated. GDP actually shrank by seven-tenths of a percent. Given that central bankers had pushed stock indexes to all-time highs, logic would follow that the same stock indexes would quickly be torn apart. But alas, we are not in a logical world. Nor, are we any longer in Kansas. Nobody knows where we are frankly. We now live in some undefined murky world of smoke and mirrors. We seem to be standing but we don’t know what supports us. Instead, stock prices hardly wiggled. Why? 

The pundits and the propagandists went to work on the networks they completely control. Here is the explanation. First quarter is history. It is meaningless. First quarter is in the past. Things are already getting better so stocks should be bought as we should ignore first quarter data.

Hmmm. I wonder if the reaction would have been the same had first quarter GDP been reported to be up 5%? Yes, I think we all know that the Dow would have rallied 500 points on that news. And consider this. Aren’t we told that things are always getting better? Has anybody from the US propaganda machine ever given a warning that the economy was getting worse?

No. It does not work that way when bubbles are being blown of historical proportions. We live in a world of mind control that is hinged on the constant lie. 

Consider this. The FRB keeps interest rates at zero so their bankster conspirators can continue to game the system through thievery. If zero rates spiked inflation, they would have to raise interest rates regardless. However, the gooberment mafia simply lies about all things inflationary. Car sales make up a huge piece of the consumer spending pie. Yet, car manufacturers report an ever increasing rise in the price of new vehicles. Yet, there is no inflation? The average car payment in the US is now $488 dollars per month for average terms longer than five years. 

Housing costs continue to rise. Insurance costs are rising. (Why do insurance premiums continue to rise? Because the cost of medical care continues to rise.) Taxes are rising. In fact, the only thing not rising is human intellect. To even postulate that inflation is low is an exercise of stupidity that borders on Bernie Sanders kind of stupid. Yes, Mr. Sanders is running for the office of White House Occupant (WHO) with the idea of raising tax rates to 90%. Apparently Mr. Sanders has been captured by aliens who took an egg beater and scrambled what little grey matter he had and then sucked it out like a milk shake. The fact is a 90% tax rate guarantees that tax receipts will equal exactly zero. No one will work if they lose 90% in taxation. However, I have no doubt that in america these days, Mr. Sanders will have many supporters.  

Of course, that does not matter. That stuff is history and things are getting better. Car prices are set to begin falling soon. Everyone that wants one will soon have a job that pays more than $15 dollars per hour. And no, doubling the minimum wage will not make prices for the goods produced by said workers go up a bit in price. 

Clearly, the FRB is not going to allow for the stock indices to plunge. That’s why they are so active with the PPT at the 11 AM rally hour. Clearly as well, the FRB is dead set to keep the Dow above the 18000 mark for the time being until they can push it to 20k and beyond. See, things are always getting better!

The bottom line is easy. Buy stocks. Forget the past. Ignore the data. For God’s sake ignore the truth! We have a bubble to carry us higher and higher! Weeeeeeee!

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.