CHINESE SHADOW BANKING SYSTEM EXPOSED!

THE SECRETS OF THE CHINESE BANKING SYSTEM ARE DEEPLY ROOTED IN CHINESE SOCIETY WITH A TOTAL OF 46. 3 TRILLION!  THE COMPLEX CHINESE BANKING SYSTEM IS OVER 300 TRILLION AND DEMONSTRATES THAT MANY LATENT HOLES ARE IN THE CHINESE BANKING SYSTEM  THE TRADITIONAL BANKING OR MANIFEST FUNCTION OF CHINESE BANKING  IS TO PROVIDE: (1) STORING MONEY; (2) SAVING MONEY; (3) LOANS: COMMERICAL OR RESIDENTAL; (4) MORTGAGES; (5) CREDIT CARDS.

THE PROBLEM WITH CHINESE BANKING IS THAT IT DOES NOT MEET THE NEEDS OF INNOVATIVE GROWTH, HIGHER INTEREST RATES FOR SAVERS, HIDING MONEY FROM THE GOVERNMENT, OVERSEAS INVESTMENTS,  INDIVIDUAL OUTSIDE THE BANKING INDIVIDUALS, GAMBLING AS A FORM OF INVESTMENT, 

 CHINESE REAL ESTATE DEVELOPERS NEED TO FIND SOURCE OF MONEY THAT ARE NOT MANDATED BY THE GOVERNMENT. MANY INDIVIDUALS NEED HIGHLY FLEXIBLE LOANS AND GREATER SPEED TO CLOSE BUSINESS DEALS.  

THE SHADOW BANKING SYSTEM PROVIDES 13% OF UNDERGROUND LENDING FOR GAMBLERS, INVESTORS, PAWN LOANS, FAMILY LOANS AND SMALL BUSINESS LOANS. MANY NEW BUSINESSES NEED PRIVATE EQUITY INVESTORS WHICH IS ABOUT 13% OF THE TOTAL 46 TRILLION.

   THE NEED FOR MICRO-CREDIT FINANCIAL COMPANIES LENDING FOR VARIETY OF REASONS AND USE OF ENTRUSTED LOANS ABOUT 2%.  THE GROWING SHADOW BANKING IN THE CASINO BUSINESS IS NECESSARY FOR CHINESE INDIVIDUALS FOR INVESTMENT OF THEIR MONEY IN CASINO GAMES.  NEW CASINOS MEANS NEW MONEY FOR LOANS, CREDIT, STORAGE OF MONEY AND INVESTMENT FOR BUSINESSES.

COMPETITIVE DEVALUATIONS AND EXPORT PROTECTIONISM!

THE WORLD ECONOMY NEEDS THE GOOD LUCK OF THE GOLDEN CAT TO ESCAPE THIS ECONOMIC PARADOX: HOW DO YOU ENGAGE IN COMPETITIVE DEVALUATION OF YOUR CURRENCY AND REALLY BELIEVE YOUR NOT PRACTICING STEALTH PROTECTIONISM?

THE NEW REALITY IS THAT THE STRONGEST CURRENCY IN THE WORLD IS THE US DOLLAR BUT THE PROBLEM THAT MAKES OUR EXPORTS MORE EXPENSIVE AND CREATES A DEMAND FOR GLOBAL IMPORTS IN USA.  THE GLOBAL COMMUNITY IS IN THE SECOND STAGES OF CURRENCY DEVALUATION AND THIS LEADS TO MASSIVE NEW GREAT WALL FOR INTERNATIONAL CURRENCY.


  THE GREAT WALL OF CURRENCY IS CIRCLING THE WORLD ECONOMY.  WE ARE SEEING THE COLLAPSE OF INTERNATIONAL TRADE AND ITS ON IMPACT WORLD MARKETS.

WHAT IS THE AMERICAN REACTION TO COMPETITIVE DEVALUATION:

(1).  AMERICANS ARE SAVING MORE MONEY AND THIS AS BECOME THE
NEW MANTRA OF DAVID RAMSEY'S   "GETTING RID OF DEBT"  MOVEMENT.

THE NEW AMERICAN FINANCIAL PLANNING IS FIGHTING AGAINST ALL FORMS OF DEBT AND FOLLOWING A PRACTICAL FINANCIAL DEBT FREE FINANCIAL PLAN. AMERICANS WILL NOT SPEND ON FOREIGN IMPORTS.  THEY WILL BUY WITHIN THEIR BUDGETS.  AMERICAN CANNOT AFFORD TO FINANCE INTERNATIONAL TRADE THROUGH SPENDING AND ARE SAVING THE DIFFERENCE.

(2) AMERICANS WILL BUY IMPORTS AT SEVERELY REDUCED PRICE STRUCTURE WHICH GIVE THE COMPETITIVE ADVANTAGE TO THE BUYERS.  IMPORTS HAVE TO BE CUT BY 50% TO BE SUCCESSFUL IN THE AMERICAN MARKET.  THE CANADIAN AND MEXICAN MARKETS WILL BE GREAT CURRENCY VACATIONS AND BUYING OPPORTUNITIES.  WE NEED A CANADIAN AND MEXICAN ESTATE SALES AT 80% TO 90% OFF THE RETAIL PRICES.

(3) AMERICANS ARE USING SMART TECHNOLOGY TO BREAK THE TRANSACTION COST BARRIERS.  WE NOW HAVE THE OPPORTUNITY TO SCOUT FOR THE LOWEST PRICE AND PRICE COMPARISON WITHIN SECONDS.  THE INTERNATIONAL TRADER NEEDS TO REALIZE THAT ALIBABA AND OTHER E COMMERCE ARE USING THIS TECHNOLOGY TO LOOK FOR PRICE AND PRODUCTION GAPS.  WE NEED A CURRENCY WEB PAGE THAT EXPLOITS THE INTERNAL MARKETS OF EACH MAJOR COUNTRY WITH A LIST OF RETAIL DISCOUNTS AND MANUFACTURER PRICES.

(4) THE NEW CURRENCY WARS ARE CREATING PROTECTIONISM AND NO GROWTH WORLD ECONOMY.  THE WORLD ECONOMY AS BECOME "EVERYMAN FOR HIMSELF" IN THIS NEW CURRENCY DOG FIGHT.  WE HAVE OUTLINED ARE SOLUTION TO THIS PROBLEM IN OUR 2015 FINANCIAL PORTFOLIO FOR THE YEAR.

The Keys to the Shadow Banking System: 99 CENTS GASOLINE! THE NEW NORMAL!

The Keys to the Shadow Banking System: 99 CENTS GASOLINE! THE NEW NORMAL!: THE NEW NORMAL IS GOING TO BE  $20.00 A BARREL OF OIL AND GASOLINE AT 99 CENTS A GALLON.  THE 99 CENTS AND DOLLAR STORES HAVE A NEW COM...

99 CENTS GASOLINE! THE NEW NORMAL!

THE NEW NORMAL IS GOING TO BE  $20.00 A BARREL OF OIL AND GASOLINE AT 99 CENTS A GALLON.  THE 99 CENTS AND DOLLAR STORES HAVE A NEW COMPETITOR  FOR AMERICAN CONSUMER DOLLARS!  WHY?

THE OIL INDUSTRY IS CRYSTALLIZATION OF THE PERFECT DEFLATIONARY STORM.  THE COMBINATION OF OVER-PRODUCTION AND UNDER-CONSUMPTION AND DEFLATIONARY DOWNWARD PRESSURE ON ALL COMMODITIES.

OIL HAS MET ITS WATERLOO IN 2015.  FIRST, OVERPRODUCTION FROM OPEC COUNTRIES AND AMERICAN SHALE HAS CREATED PRODUCERS TRYING TO CATCH FALLING PRICES. 

 THE OVER-PRODUCTION IS A NATURAL REACTION TO MONOPOLY PRICING.  OPEC IS AN UNREGULATED MONOPOLIST WHO  DOES NOT  CHARGE THE HIGHEST PRICE THAT THEY CAN GET BUT OPEC CHARGES THE HIGHEST PRICE THAT IS CONSISTENT WITH MAXIMIZING THEIR PROFITS.

OPEC PROFITS ARE RELATIVELY HIGH AND GIVEN OTHER COMPETITORS CAUSE THE ATC CURVE TO RISE WHERE EARNING A SMALL PROFIT IS THE ONLY SOLUTION. OPEC CAN EARN LESS THAN A NORMAL PROFIT AND STILL STAY IN BUSINESS: SO THAT LONG TERM THE ISSUE IS STAYING IN BUSINESS AT A NORMAL PROFIT.

THIS IS NOT A SUPPLY EVENT BUT A UNREGULATED MONOPOLY EVENT!  WHAT IS THE REAL PROBLEM WITH OPEC:

1. OPEC CONTROL OF THE OIL INDUSTRY ACTUALLY MISALLOCATES WORLDWIDE RESOURCES. OPEC CAN REDUCE OUTPUT AND INCREASE PRICE TO CREATE AN INPUT MISALLOCATION OF WORLD RESOURCES.  THE IMAGE OF GLOBAL ECONOMY DEPENDENT ON MISALLOCATION OF RESOURCES VIA OPEC MONOPOLY IS THE REAL PROBLEM.

2. THE FACT THAT THE GDP OF OPEC NATIONS CREATES INTERNAL INCOME INEQUALITY AND EXTERNAL INEQUALITY WITH OTHER NATIONS.  SAUDI ARABIA HAS A LOW GDP THAN SPAIN.  OPEC HAS INHERENTLY CREATED POLITICAL INSTABILITY IN GLOBAL ECONOMY.  THE SUPERNORMAL PROFITS ARE ABNORMAL AND CREATES SOCIAL AND ECONOMIC INEQUALITY.  THEY ARE BAD ROLE MODELS FOR THE WORLD ECONOMY.

3. OPEC HAS CREATED A DYSFUNCTIONAL ECONOMIES BASED ON LACK OF INCENTIVES FOR EFFICIENCY AND PROGRESS.  OPEC CANNOT MEET CONSUMER NEEDS AND RETARDS ECONOMIC PROGRESS.  THE INCREASE OF OBSOLESCENCE RATE INCREASES WITH THEIR AGING EQUIPMENT.  THE SHOCK TO THE WORLD ECONOMY IS THAT OPEC MODEL NO LONGER WORKS AND IS INHERENTLY ABNORMAL.  THE FACT THAT WORLD ECONOMY HAS INTEGRATED A DYSFUNCTIONAL MODEL AND CREATED A MONOPOLY FICTION IN THE REAL REASON FOR THE GLOBAL ECONOMY SHOCK!

4. OPEC USES PRICE DISCRIMINATION TO CONTROL REVENUES BY SEGMENTING THE MARKET INTO SUBMARKETS AND  THIS LEADS TO DUMPING OF OIL ON THE WORLD MARKET.   OPEC IS USING MARKET SEGMENTATION BASED ON THE COMPETITION OF AMERICAN AND OTHER PRODUCERS.  THE IMPACT IS TO DESTROY THE COMPETITION BY OIL DUMPING.

5. OPEC IS USING MARKET SEALING TO CONTROL THE MARKET.  OPEC IS SEALING ITS COMPETITOR MARKET BY NOT ALLOWING RESALE OF ITS OIL PRODUCTS TO NON-OPEC MEMBERS.  OPEC WILL ALLOW A CERTAIN AMOUNT OF LEAKAGE TO CONTROL THE MARKET SEGMENTATION.

********* STOCK MARKET MILLION DOLLAR JACKPOT BONANZA FOR 2015!

THE NEW STOCK MARKET JACKPOTS BIG PICTURE:

2015-2016

WE NEED TO FIND THE BIG PICTURE TO FIND OUR WAY THROUGH 10,000 STOCKS TO FIND THE TARGET AREAS OF PROFITS:

THE BIG SECTOR WINNERS:

A. AIRLINES, 88%

B. NEWSPAPERS 64%

C. GAMING SOFTWARE 50%

D. ETHICAL DRUGS 43%

E. BIO-MED/BIOTECH 43%

F. HOSPITALS 37%

G. RETAIL DRUG STORES 34%

H. TRUCKING FLEETS 33%

I. GENERIC DRUGS 33%

10% OR GREATER TARGETS:

1. REITS  YIELD GOAL .....................  33%

INVESTMENT THEME: LUXURY REAL ESTATE IS THE NEW SWISS BANK ACCOUNT! (HOTELS)

A. RLJ

B. EPR

C. SLG

D. TCO

E. DFT

F. DFA GLOBAL REAL ESTATE SECURITIES (dfgex)

G. RWO 

H. TVRVX

I. DEI BEVERLY HILLS

J. NEW COMPANY INVESTMENT OPPORTUNITY; GRAND EMPIRE PARTNERS, LCC

 IS CURRENTLY ON GROUND FLOOR OPPORTUNITY FOR JOINT VENTURE INVESTORS.  THE COMPANY WILL BE BUYING HOMES IN ARIZONA FOR REHABILITATION AND CREATION OF NEW RENTALS AT ABOUT HALF THE COST OF BUILDING A HOUSE FROM SCRATCH. THE COMPANY WILL BE CASHING IN ON THE COMING HOUSE SHORTAGE FOR MILLENNIALS.

SINGAPORE REITS 

A. CDREIT 

B. FEHT

C.RHT

D. PREIT

E. FIRT

2. ELECTRIC UTILITIES ......................30%

A. HE, SO, PCG, POR, EIX, XLU

3. HIGH DIVIDEND STOCKS ...............17%

INVESTMENT THEME: LONG TERM DEFLATION STRATEGY BY USING CASH FLOW FROM STOCKS DURING DECLINE GDP!

A.PEP

B. TWX

C. UP

D. PFE

E. ADP

F. ACN

G. V

H. WFC

I. STT

J. JPM

K. GE

L. WYNN BUY AT $55.00

M. TRACTOR SUPPLY TSCO

N. AMERISOURCE BERGEN WHOLESALE DISTRIBUTOR OF GENERIC DRUGS

ABC.

SEE: PRDGX

 INCOME PRODUCING SECURITIES

A. DJ DIVIDEND SELECT FUND

B. S& P UTILITIES INDEX

C. I BOXX INVESTMENT GRADE BOND INDEX

D. S AND P MUNI BOND INDEX

E. VANGUARD DIVIDEND APPRECIATION /VIG

F. ISHARES SELECT DIVIDEND /DVY

G. SPDR SAND P DIVIDENS

H.  SPDR/SDY

I. VANGUARD HIGH DIVIDEN /VYM

4. PREFERRED STOCKS...........................17%

A. BAC. PW

B. WFC.PQ 

C. TY-P

5. CONVERTIBLE BONDS ..................12%

A. MIN

B. DMO

6. TREASURIES .......................................11%

INVESTMENT THEME: THE GREAT BOND RALLY DURING LAST PHASES OF DEFLATIONARY ECONOMY AND BOND RALLY  STARTED IN 1980.

A. 30 TREASURY YIELDS AT 3% -FUTURES CONTRACT

B. SYNTHETIC ALTERNATIVE TO TREASURIES ARE REVERSE EXCHANGE NOTES

C. 20 YEAR TREASURY BOND ETF =TLT

7. WILD CARD OIL TANKERS  ........10%

INVESTMENT THEME: LONG TERM DECLINE IN OIL AND NEED TO STORE EXCESS SUPPLY OF OIL.

A. FRO.

B. SEA

C. SHALE OIL PLAY IEO

D. OIL TANK STORAGE MMP

E. UNDERVALUED SPECIAL MDR

8. TOP TEN HOME RUN STOCKS .......20%

INVESTMENT THEME: HIGH QUALITY GROWTH OPPORTUNITY IN THE STOCK MARKET.

A. AAL, BAC, BA, FLR, GM, GLD, GOOGL, M, MU, RCL, (WYNN)

TAKEOVER TARGETS: VIA TWX

9. ETF JACKPOTS

A. XLV, IYT, XHB, XLY, GDX, GDXJ, IYF, IYW, IXC

B. EPI 25%, 

C.CYBER SECUITY ETF : HACK

D. RTH

E. PIIGS CAPE ETF =GVAL

F. ARGENTINA ETF= ARGT

H.DEUTSCHE  GLOBAL INFRASTRUCTURE TOLLX

I. RETAIL ETF IS XRT

J. MEXICAN CEMENT/CX

10. CHINESE BANKS 

INVESTMENT THEME: CHINA WILL BE GOING INTO GLOBAL FINANCES AND OFFSHORE BANKING!

 NEWS FLASH

 STOCK MARKET ALERT: CHINESE STOCK MARKET CRASHES FOR MONTH IN JUNE-JULY 2015. BUY AFTER BOTTOM REACHED!

A. CHIX

B. ASHR 20%

C. MCHI 20%

D. CRCC ( 1800. HK)

E. HDB

F. CHINESE PRIVATE EQUITY FUNDS

G. XIAOMI

H. PKX

I. HAITONG SECURITIES

J. CITIC SECURITIES

K. GF SECURITIES

L BAOXIN AUTO GROUP

M. HONG KONG EXCHANGE AND CLEARING

N. PING AN

O. HANG SENG H-SHARE INDEX

P. JINKOSOLAR

Q. ORIENT OVERSEAS INTERNATIONAL

R. NINE DRAGONS PAPER HOLDINGS

S. CHINA CINDA ASSET MANAGEMENT

T. JUMEI INTERNATIONAL HOLDING

U. 2XX CHINA /CHAU

V. CHIM, CQQQ, CHIQ

10. 1.  INDIA FUNDS TO LOOK AT:

A. MATHEWS INDIA/ MINDX

B. I SHARES INDIA /50 INDX

C. WISDOM TREE INDIA EARNINGS/ EPI

11. SPECIAL STOCK PLAYS

THEME: HOME RUN STOCKS NEED TO BE MONITORED!

A. CNK 25%

B. AMAT 40%

C. LRCX 40%

D. WFC

E. NEE

F. PLH

H. NUE

I. VZ

J. GSK

K. BNPQY

L. PAYX

M. LMCK, LBRDK,DISCA, RRC

N. BKE, PCAR

0. JRN, WFT, INAP, BIOS, , NTG-UK, DGX, MAT, GE

P. MSCC, CUBI, ARCC, REMY, ALK, KORS, SJM,TM,DEO,CCOI,CHMT,PDCO

Q. 3 D FILMS STOCK (RLD)

R. 3 D PRINTING STOCKS:

      1. SSYS --$60.00

   2. DDD-$30.00

     3. XONE-$15.00

   4.  VJET- $9.00

S. ROC SENIOR HOUSING AND MEDICAL PROPERTIES

T.  COVANTA HOLDINGS /CVA

M . 10 LOWEST P/E STOCKS 2015:

A. AAL  $

B. UAL $

C. TRN

D. PPC

E. PBF

F. GNW

H. GM

I. PRU

J. MET

K. CBI. 

L. KKR $

12. SHORT OIL STOCKS  200%

INVESTMENT THEME: GARY  SCHILLING PROJECTED PRICE DECLINE OF OIL TO $10.00 A BARREL AS THE NEW NORMAL.

A. SCO

B. ERY

C. DDG

D. DUG

13. SPECIAL MUTUAL FUNDS

A. NBHAX, VPCCX, VHCOX, VPMCX (20%)

B. HENDERSON GLOBAL EQUITY FUND (hfqax)

C.LCORX

D. DIVIDEND FUNDS: VEIPX, TWEIX, FEQUIX

14. SHORT EMERGING STOCKS AND BONDS

A. EDZ

B. EEV

STRATEGIC INDUSTRY SHORTS

A. SOXX

B. SOCL

C. IBB

15. COMMODITY PLAYS

INVESTMENT THEME: DEFLATIONARY MARKET IN THE COMMODITIES AND DECLINE OF LONG TERM ASSET VALUE.

A. TIN (JJT) 

lse=glen; tsx=lun;asx=mlx; tsx=sso

B. URANIUM TARGET $75.00 A POUND

UEC, CCJ. URRE

C. SHORT COPPER (JJC)

D. SHORT NATURAL GAS (GAZ)

E. LONG ON SOYB

16. IPO MAGIC

A. RDUS, ASPX, KITE, TUBE, IMDZ, BABA,

B. GPRO CYBR, LC, JD.

17.  US. DOLLAR INVESTMENTS AND SHORTS

INVESTMENT THEME: STRONG DOLLAR IN THE AGE OF DEFLATION. USA DOLLAR STRONGEST WORLD ECONOMY

A. UUP

B. FXF

C. DRR

D. SHORT FXA, FXC

E. US DOLLAR INDEX FUTUTRE

G. SHORT SINGAPORE DOLLAR

H. JAPANESE YEN( YCS)

I. SHORT EMERGING CURRENCY (CEW)

J. AUSTRALIAN SHORT( FXA)

K. CANADIAN SHORT   (FXC)

L. WISDOM GROUP HEDJ AND HEZA

18. INVESTMENT OF THE CENTURY: GOLD

INVESTMENT THEME: GOLD WILL RISE TO THE OCCASION WITH RISE OF INFLATION AND SERVE AS DEFLATION ALTERNATIVE.

A. UGLD

B. GLDX

C. JNUG

D. GDX

E. GLD

F. NUGT

H. DGP

I. GDXJ

(SILVER= (SIVR) AND PLATINUM= (PPTL)

(gold production costs=$1,104.00

High Value= $2,683.00

low value= $2,200

average value =  $2,340.00)

19. OIL STOCK TURNAROUND FOR HIGHER PRICES

INVESTMENT THEME: NEW TURNAROUND POSSIBLE WITH HIGHER OIL PRICES:  CRISIS IN THE MIDDLE EAST.

A. XEC

B. SLB

C.TSO

D.ETE

F.KMI

   G.MPLX

H.CQP

I.CQH

J. SN, CRC, OAS BONDS

K MCDERMOTT  MDR

20. AGRICULTURAL US EXPORTS: NEW WORLD ORDER FROM 2015-2050

INVESTMENT THEME: NEW AMERICAN WORLD ORDER OF AMEN GEOPOLITICS SHIFTS TO SOUTHEAST  

1. RJA

2. JJG

3. DBA

4.CORN

5.MOO

6.PHO

7. WEAT

 21.       MILLIONAIRE INVESTMENT PLAN

INVESTMENT THEME: USE VANGUARD MAGIC TO DO YOUR INVESTMENT BY INVESTING IN THEIR FUNDS. 

1. INVEST 40% IN VTSAX

2. INVEST 10% IN VSIAX OR ETF VBR

3. INVEST 20% IN VFWAY,  OR ETF VEN

4. INVEST 5% IN VEMAY, OR ETF VWO

5. INVEST 25% IN VICSX, ETF VCIT 

SET THIS UP FOR YOUR CHILDREN AND WATCH MAGIC HAPPEN! IF YOU ARE 62 CELEBRATE YOUR SUCCESS BY SETTING THIS UP FOR NEXT 10 YEARS AND WATCH YOUR RETIREMENT GROW BIGGER AND BIGGER.  WOW1 THE WONDERS OF THE INTERNET FINANCIAL WORLD NEVER CEASE TO AMAZE!!!!!

6. USE ROBO-ADVISORS FOR IMMEDIATE ALLOCATIONS: 

A. BETTERMENT PORTFOLIO: 48% INTERNATIONAL STOCKS,   42% U.S. STOCKS , 4% INTERNATIONAL BONDS,     6% U.S. BONDS.

B. WEALTH FRONT PORTFOLIO:    47% U.S. STOCKS;   48% INTERNATIONAL STOCKS, 5% U.S. BONDS.

C. CHARLES SCHWAB:    38% U.S. STOCKS,      39% INTERNATIONAL STOCKS ,       7% CASH,       5% COMMODITIES;      6% INTERNATIONAL BONDS,     5% US. BONDS.

D. VANGUARD THE BEST OF THE BEST PORTFOLIOS 60% U.S. STOCKS AND 40% INTERNATIONAL STOCKS.

OIL SPECULATORS AND DEFLATIONARY SUBMARINE!

 THE DEFLATIONARY SUBMARINE NEXT TORPEDO HAS SUNK THE OIL INDUSTRY FOR NEXT 5 YEARS.  WHAT OIL SPECULATORS HAVE FIGURED OUT FROM THE HOUSING INDUSTRY IS THE SECRET OF TURNING OIL INTO A SECURITY.


 THE CREATION OF SECURITIES FROM COMMODITIES HAS CREATED A STRUCTURED FINANCE NIGHTMARE.  THE US GOVERNMENT WILL NOT BAIL OUT THE OIL INDUSTRY AND ITS COMMODITIES.

 CONSEQUENTLY:


 THE FREE MARKET HAS BEEN SHORT CIRCUITED BY HUMAN GREED.  THE OIL SPECULATORS HAVE CREATED THE PERFECT STORM FOR GREAT PROFITS.  THE OIL SPECULATORS HAVE LEFT THE BUILDING AND THE INDUSTRY WRECKAGE HAS CREATED A FACADE OF INFLATION.  THERE WAS NO INFLATION AND THE CREATION OF A SUBSTITUTE FINANCIAL REALITY-FINALLY CAME CRASHING DOWN.

OIL FROM $140.00

TO 

$20.00 A BARREL. 

EVIDENTLY THE OPEC NATIONS WERE THE FALL GUYS FOR THIS INGENIOUS USE OF ROCKET SCIENTISTS WHO HAVE CREATE  MASSIVE MAYHEM.  THE USE OF SCIENCE FOR SPECULATION AND PROFIT HAS GIVEN NEW MEANING TO OUR SCIENTIFIC COMMUNITY.

The Keys to the Shadow Banking System: HOW THE DEFLATIONARY SUBMARINE WORKS IN 2015!

The Keys to the Shadow Banking System: HOW THE DEFLATIONARY SUBMARINE WORKS IN 2015!:   THE SUDDEN COLLAPSE OF THE OIL AND GASOLINE COMMODITIES TESTS THE QUESTION:  WHAT IS THE TIME FRAME FOR ANY OTHER FUTURE COLLAPSES OF...

HOW THE DEFLATIONARY SUBMARINE WORKS IN 2015!

THE SUDDEN COLLAPSE OF THE OIL AND GASOLINE COMMODITIES TESTS THE OXFORD QUESTION:  WHAT IS THE TIME FRAME FOR ANY OTHER FUTURE COLLAPSES OF ASSETS?  THE DEFLATIONARY ECONOMIC ENVIRONMENT WORKS ON A PREDICTABLE CALCULUS WHICH ALLOWS US TO PLAN FOR THE FINAL DEVALUATION OF THE STOCK MARKET.  LET TAKE A LOOK AT THE DEFLATION SUBMARINE HISTORICAL FRAMEWORK:

1. THE REAL ESTATE ASSET COLLAPSE IN 2008 (HOME BUILDERS AND SUPPLIERS, ESPECIALLY COMMERCIAL REAL ESTATE AND MORTGAGE RATES.) SURPLUS SUPPLY OF 500,000 HOMES AND INVENTORY GLUT OF VACANT HOMES.

2. THE FINANCIAL MARKETS COLLAPSE 2007-2009 ( SEE CREDIT CARDS AND CONSUMER LENDERS)  SURPLUS  MONEY SUPPLY DUE TO FEDERAL RESERVE QUANTITATIVE EASING PROGRAM HAS CREATED SURPLUS MONEY IN THE FINANCIAL SYSTEM.

3. THE GENERAL ECONOMIC RECESSION COLLAPSE OF THE ECONOMY 2008-2012.
(BIG TICKET CONSUMER ITEMS) SURPLUS BIG TICKET ITEMS THAT HAS A GLUT IN THE MASS CONSUMER MARKET. CONSUMERS WANT SMALL LUXURIES.

4. THE GENERAL COLLAPSE OF ANTIQUES, ART, JEWELRY, AND OTHER TANGIBLES, 2009-2020.( RISE OF ESTATE AUCTION HOUSES AND CONSIGNMENT STORES OFFERING  INCREDIBLE BARGAINS 10 CENTS ON THE DOLLAR!) SURPLUS OF COLLECTIBLES WITHOUT GROWING DEMAND.

4. THE GENERAL COMMODITY COLLAPSE OF 2011-2014. SURPLUS OF COMMODITIES WITH LACK OF WORLD WIDE DEMAND AND EXPORT MARKETS. EXPORT MARKET HAVE COLLAPSED DUE TO DEMAND AND PROTECTIONISM.  THE COMPARATIVE ADVANTAGE HAS BEEN A POLITICAL FOOTBALL.

5. THE OIL AND GASOLINE COLLAPSE OF 2014-2015. (JUNK BOND SECURITIES ARE OVER-VALUED AND HAVE NO ECONOMIC SUPPORT VIA COMMODITIES.) SURPLUS OF OIL DUE TO AMERICAN SHALE AND OVERPRICED OIL CREATING DISEQUILIBRIUM FOR A YEAR.

6. THE OPEC COUNTRY COLLAPSE OF 2015-2016. SURPLUS OF GOVERNMENT OVERSPENDING AND BUDGET BASED ON $140.00 OIL.

7. THE WORLD WIDE DEFLATIONARY COLLAPSE OF 2015-2016 (JAPAN UNABLE TO STAGE AN EFFECTIVE COMEBACK; WHEREAS CHINA 10% GDP GROWTH AND OFFSHORE BANKING HAVE CREATED NEW MARKETS) SURPLUS OF JAPANESE MONEY, CREDIT, CURRENCY AND LACK OF GDP GROWTH -- NO DEMAND. CHINESE HAVE A DIFFERENT CALCULUS: DEMAND >SUPPLY FOR NEXT 10 YEARS! STEVE WYNN GAMBLING STRATEGY  IS TO FOCUS ON HIGH END LUXURY USERS OF HIS WYNN PALACE AT A PRICE OF $ 9 BILLION. THE LAS VEGAS MARKET HAS COLLAPSED IN THE MIDDLE AND NOW IS GOING THROUGH CASINO REORGANIZATIONS, ACQUISITIONS, ALLIANCES AND BANKRUPCY. MDDLE AMERICA IS GAMBLING IN THEIR OWN STATE INDIAN CASINOS. ARIZONA HAS 23 INDIAN GAMING CASINOS AND ADDING A NEW CASINO IN 2016.

8. THE COLLAPSE OF COMMODITY BASED CURRENCIES 2015 -2016. THE OPEC COUNTRIES AND RUSSIA HAVE OVERPRICED CURRENCY SURPLUS BASED ON DEPRECIATING OIL ASSET. 

9. THE STOCK MARKET COLLAPSE OF 2016-2017: SEE SCHILLER CAPE INDEX. SURPLUS OF OVER-PRICED STOCKS WHICH SELLERS WILL SELL FOR PROFIT AT HIGHER PRICES. THE OVERPRICED STOCKS ARE CREATING AN ECONOMIC BUBBLE. STOCKS NEED TO RETURN  TO NEW EQUILIBRIUM PRICE BASED ON FACTS: SUPPLY > DEMAND!  WHY ARE STOCKS GOING UP? THE INVERSE RELATIONSHIP BETWEEN DROPPING OIL PRICES AND STOCK PRICES.  THE PRICES SHOULD GO UP 20% FOR NEXT YEAR!

THE DEFLATIONARY SUBMARINE CANNOT SINK THE FOLLOWING TARGETS:

1. THE USA HAS RECLAIMED ITS ROLE AS THE INVESTMENT FORTRESS OF THE WORLD WITH CERTAIN LIMITATIONS. THE DOLLAR IS THE CURRENCY OF WORLD -WIDE RESERVE. THE RISE OF AMERICAN ENERGY SECTOR WHICH SHOULD BE GIVEN CONGRESSIONAL SUBSIDIES TO COUNTERACT SAUDI LOW BALLING OF  OIL MARKET.

2.  ALL US TREASURY BONDS AND USA HIGH QUALITY BONDS. ALL USA GOVERNMENT ENTITLEMENT PROGRAMS, OBAMA CARE PROGRAMS, TRANSFER OF INCOME PROGRAMS, MASS SUPPORT OF SOCIAL SECURITY AND MEDICARE.  THESE ARE CREATING INCOME STABILITY TO LARGE SECTORS OF THE AMERICAN CONSUMERS.  THE BOOM GENERATION ARE LARGEST CONSUMER GROUP WITH HIGH ENTITLEMENT INCOMES THAT TRANSLATES INTO SALES AND INVESTMENTS.  IF THE BOOMER DO AN ECONOMIC BOYCOTT OF COMPANIES OR INDUSTRIES THIS WOULD CREATE ECONOMIC VETO OF SELECTIVE PRIVATE COMPANIES.  THE BOOMERS HAVE ONE LAST PROTEST LEFT AND CAN USE THIS WEAPON AGAINST ANTI-BOOMER ENTITLEMENT PROGRAMS.

3. STOCKS THAT HAVE HIGHER INCOME RETURNS AND INTEGRATION OF TECHNOLOGICAL INNOVATION COMPANIES.  ALSO CONSUMER STAPLES AND HEALTH COMPANIES.

4. HIGHLY SELECTIVE REAL ESTATE HOMES, FACTORY HOUSING, RENTAL APARTMENTS.