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Friday, April 3, 2015

The World is Whistlin’ in a Hurricane

 The Eye of the Storm
Living further down South, one of nature’s forces we had to deal with were the occasional hurricane tail winds.  Now, hurricanes are deceitful, in that they seem like total chaos, with no rhyme or reason to them, but they aren’t, not by a longshot.  In fact, there’s a rhythmic order to them, as any hurricane or cyclone of significance, has an eye, a “mastermind” seemingly behind the entire thing.
There are many theories about how the “eye” of the hurricane develops.  One of the prevailing theories though, is that when a low air pressure area is formed, the winds start to flow there to “fill it in”.  Those winds are then pushed aside and deflected, due to something called the Coriolis Force.
This is a force that is derived from the earth’s rotation itself, which works to deflect any winds coming toward the center of the low pressure area.  Depending on whether the storm is north or south of the equator, the winds are pushed either right or left.  For instance, since the Caribbean is north of the equator, when air pressure pushes those converging winds, they push them from left to right.  This is why all hurricanes in the Caribbean turn counter-clockwise.

Hurricane 15

The eye of the hurricane is a curious and dangerous thing, for different reasons, depending on where you are.  If you’re unfortunate enough to be on a boat, while caught in the eye of the storm….you will be pulverized, as all the waves are pushed toward the center of the hurricane by the “Eyewall”(the eye’s edges, which are formed by severe storms).  While the Coriolis Force may push winds aside, they do not push aside converging waves.  This creates a perfect scenario for some severe waves to all converge in one place, growing sometimes up to 140 feet tall!
However, if you’re on land, and somehow make it to the eye of the storm, then your experience is totally different.  As the eye of the storm is the most peaceful and calm place around for hundreds of miles!  Caribbean natives or tourists, who’ve been caught in the isles during a hurricane will all tell you the same thing:
There’s an eerie calm about it all.  Except for the broken windows, bashed up cars, or damaged houses…everything inside almost feels totally normal.  Almost.
The eye, which can be 20 to 40 miles in diameter, is larger or smaller, depending on how strong the converging winds are pushed aside.  Meaning, the larger the eye is(the longer the calm lasts), the stronger the hurricane actually will be when it arrives on the other side.
I believe the exact same scenario is what we’re currently living in, in that we’ve all been trapped inside the eye of the largest hurricane forces that the global economy has ever seen.

This economic eye, which started in the spring of 2009, by the artificial “Coriolis” of central bank manipulation, has now lasted a full 6 years!  Yet, unbelievably, after the close call they received in the last financial crisis….the general public seems to have forgotten all about it!
They seem to be fine with leaving their life savings in banks, and debt instruments:
Despite the widespread, bail-in legislation that’s been passed…
Despite most “too big too fail” banks being levered 20, 30, or 40 to 1…
Despite the many erratic banking glitches since 2012…
Despite the fact that the pulse of interest rates has flat-lined around the globe…
Despite Australia announcing that it will soon charge a tax on bank deposits…
Despite JP Morgan having started to charge a fee on some deposits…
Despite half of Europe now having a negative interest rate environment..
Nothing seems to phase the general public’s impervious wall of blissful denial.  They seem quite content to trust the entirety of every new paycheck, and even much of their life savings to the system that was nearly sucked down a vortex, just a few short years ago.
When you tell them of all this, and tell them that it’s not just “a little rain” that’s on its way, and that now’s not the time go out for a leisurely stroll, they ignore the warning signs, and take it all in stride!
Hurricane 10

It’s as if the old rules of “self preservation” don’t even apply anymore.
It’s all very Twilight Zone, isn’t it?
Especially as we look around, and realize that more straws are blowing in the wind than ever before. It’s easily apparent, to those who objectively look at the data, that the relative calm that world markets have experienced since the massive “stick save” that TARP pulled off for the world financial system, are ending, and the second, greater stage of the hurricane has finished its warm-up in the bullpen, and is now headed for the pitcher’s mound.
Europe Stares into the Abyss
Europe has never been closer to an outright default within its monetary union.  Greece seems to be doing its darndest to pretend to kiss and make up with Berlin and Brussels, all the while preparing brand new alliances and economic drivers on the other side of all this. Honestly, after watching a video of Varoufakis from several years ago, where he spoke of a strategy of defaulting within the EU, that may very well be the gameplan.
Meanwhile, the rippling fallout from the Heta failure several weeks ago in Austria is just now starting to be felt throughout the larger banking system.

For just 8 days after the Austrian government declared its intent to let Heta fail, a large German bank, Duesseldorfer Hypothekenbank, came crashing down due to an absolutely bone-crushing wave of margin calls.
Hurricane 8
Let’s remember, that this bank(with over $11 billion in assets) face-planted within just one week of the Heta announcement.  It’s almost certainly true that many such failures are yet to be disclosed.
How many more such banks do you think are quietly telling the ECB right this very second:
“Uh, yeah, we now have a teensy, weensy problem with um, ya know…….solvency!  With this whole Heta thing!”
I assure you that we haven’t heard the last of this matter, and if it’s even remotely as bad as some have suggested, the contagion could happen very, very quickly.
None of this matters though, to hundreds of millions of people!  Folks are still sleep-walking!
Even after all this, the “beach goers”, both in Europe, and the States, have left the safety of the storm shelters, and are breaking out the suntan lotion and parasols!  Nothing seems to make a dent in the impenetrable cocoon that they’ve wrapped their minds in.
When you explain to many of them that hopping down to the water’s edge is a very bad idea, when you remind them that the economic data has just issued more hurricane warnings, when you tell them about the financial forces that are now “jumping the fence”, and threatening larger destruction on an unimaginable scale, they actually say:

Totally bonkers!  I wish I could say that these folks were just joking around when they literally say these things, but I can’t.  They truly mean it, the normalcy bias has blocked any and all attempts at reason and reality to break through the clouds.
Ya know what’s the most surreal thing of all though?  That’s an easy one, friend!
The most surreal thing, is that after everything that I’ve just stated above….
After Lehman & AIG, After QE1, QE2, QE3, QE4evah, Operation Twist 1 and 2, after MF Global & Dexia Bank, after Europe’s deterioration into a total fiscal timebomb, after the now daily threat of Grexit or “Gre’fault”, after half the Levant and Middle East now being aflame with fresh wars, after seemingly daily NATO war drills, and Russian counter-drills, after nearly 50 countries leaving DC to join the AIIB within the last few months….

As unreal as this all is, we have to remember, that it makes sense that everything would be so counter-intuitive just before the eye of the storm has passed through.  The elites who are behind this deceptive tranquility are(perversely) trying to lull as many out of the storm shelters, and back to the beaches as possible.  
Keep doing what you’re doing brothers, and don’t mind the crazy looks some folks may give you.  After all, if you’d just watched a hurricane warning on TV, yet saw thousands of clueless people out your window, on the beach, and in very real danger…you wouldn’t care what they thought of you. You’d simply be crying out for as many souls to heed you, and rush to safety as possible.
Some might tell you, “Gosh, man, calm down, it’s been so long since the last troubles, there’s nothing to worry about”, don’t pay those folks any mind.
They don’t understand that the longer the calm(the eye) lasts, the stronger the turbulent winds will be on the other side of the “eyewall”!  The longer the Fed and central banks do this, the worse the carnage will be when it’s unleashed, and the signs are growing that the winds about to bear down rather hard.
“Watchman isn’t there any good news at all?!”
Brother, of course there is!  Millions of people are now listening and taking the measures that they need to, in order to shield themselves and their families from this 2nd, deadlier phase of the eyewall that is coming up behind us.
I can’t tell you how many messages I’ve received from new, 1st-time stackers, who’ve told me,
Thank you for making it ‘click’ for me!  I get it, and I’m doing what I can!”
God bless those people, and God bless you!  Few in our time have the ears to hear, and more importantly, the courage to act upon their convictions!
Despite how it appears to the common man on the street, things are not “back to normal”.  Those times are gone, and are not coming back, at least not the way we knew them.
The banksters are crafty, for through a manufactured, 6 year Dow Jones uptick, coupled with an utterly central-bank-contrived, 4 year downtrend in precious metals, they’ve nudged many folks into thinking that the good times are here once more, that all is well, and that anyone who raises any concern is merely “an alarmist”, a “doomer”, or just a serious “buzz killer” at the party.
Nothing could be further from the truth!
The longer it takes for the Reset forces to arrive, the worse they will be.
As for me, I will continue to ring my humble, alarm bell, and sound a warning to as many beach-goers as I can, until the storm hits in full force.
The eye of the storm has largely passed over, the eyewall is returning now.  The good times that have been bought with tens of trillions of dollars of ‘money’ creation have been nice.  They’ve given us all a chance to do some some real good for others, but there’s always a price to pay, isn’t there?  No matter, keep fighting for truth, and keep helping others.
So, I will continue to say, in the name of everything good and holy, now is not the time for a pleasure cruise, it is time…
To batten down the hatches.  
Hurricane 3
P.S.-Today we get an ultrasound to ascertain the health and gender of the newest addition to the Watchman family.  I’ll give y’all an update on Friday.
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