POPE FRANCIS, THE HINDENBERG OMEN AND MANY OTHER SIGNS ECONOMIC ARMAGEDDON MAY BY COMING SOON

There seem to be several financial factors in play as we speak that may spell disaster for the markets in the coming weeks. Economic indicators are flashing red, the Asian markets are falling fast and physical gold looks like it may spike into the stratosphere in the near future. This is not baseless conjecture but based on some hard statistical data for which I get paid to do in my real job. There are a lot of bad omens out there, the Hindenburg Omen being the one getting the most press.

What exactly is the Hindenburg Omen you ask? It is a complicated indicator of a 77% chance of a market correction over the next forty days, as compiled by the Wall Street Journal. It further says that there is a 41% chance of a panic sellout and a 24% chance of a major market crash. It is caused by these factors:

1. The daily number of NYSE new 52 week highs and the daily number of new 52 week lows are both greater than or equal to 2.8 percent (this is typically about 84 stocks) of the sum of NYSE issues that advance or decline that day (typically, around 3000).^[2] An older version of the indicator used a threshold of 2.5 percent of total issues traded (approximately 80 of 3200 in today's market).
2. The NYSE index is greater in value than it was 50 trading days ago. Originally, this was expressed as a rising 10 week moving average, but the new rule is more relevant to the daily data used to look at new highs and lows.
3. The McClellan Oscillator is negative on the same day.
4. New 52 week highs cannot be more than twice the new 52 week lows (though new 52 week lows may be more than double new highs).

I know. It's complicated. But in historical value, it is remarkably accurate within statistical parameters. It's accuracy is subject to some debate though. It is not 100% accurate, thus the 77% chance, but has been dead on for every market crash since 1985 when these factors have to occur. Of the 25 times the Omen has appeared, only twice have their not been mild declines. The odd part is that both of those times were recently, 2010 and 2012, suggesting quite clearly the market is being tampered with as indicators like this are no longer reliable in a fixed game. It would seem likely that a market crash will happen only when the bankers run out of balls to juggle and the whole house of cards comes down.

Pope Francis sure seems to think so. In a recent speech, he called out on the money junkies out there calling them a "cult of money," which is an amazingly accurate description. He said money should be used for the common good and not for the enrichment of a select few. "Money has to serve, not to rule!" Here, here. I am starting to really like this pope. Let's hope he can bring some more reason to the dying Church. If it doesn't adapt, it will disappear like every other failed religion out there. For example, there aren't too many temples to Zeus still in operation anywhere. Once upon a time, hundreds of thousands people worshipped him. Now, he's played by Anthony Hopkins in the Thor movies.

Meanwhile the Japanese market continue to slide as their printing presses have hit the wall and their bond buying days appear to be over. Take a good look American because eventually, the same thing is going to happen here as well. QE infinity cannot go on forever no matter how much the rich want it to. The gravy train is over and trillions of your ill gotten gains have got to go. The other choice is collect it all and burn it because it will be worth the equivalent of Zimbabwe dollars eventually at this rate. Notice, I mentioned weeks ago that the Japanese market was going to tank and it did. Here's a snippet about the whole thing from the Hagmann and Hagmann report:

V: I basically just got this hot off the press, and hot from the board rooms over here. The Japanese, and this is official… I’m going out on a limb saying this, and you can take it for all it’s worth… the Japanese have lost control of their bond market.

Doug Hagmann: V, for financial neophytes like me, what does that mean?

V: What that simply means is… see the stock market has been rising inJapan, as well as over here because of bond prices. Were in a very unique environment where, if the bond market goes bust, you’re going to see the Nikkei go bust with it, as well as real estate.

That also coincides with us. The collapse that is going to occur here, is going to be a trifecta of bonds, stocks, and real estate combined. So when the Japanese have lost control of their bond market, and the yields are getting higher and higher, and the interest rates are starting to climb on it, nobody’s buying it. So right now, the Bank of Japan has ordered all the public pension funds to begin to buy the Japanese debt. - V, Hagmann and Hagmann Report, May 24

And then there's this from BNP Paribas:

Japan today faces a situation very similar to the US in the 1940s. With the market becoming dysfunctional as the BoJ’s massive buying operations drain the pool of available bonds, the BoJ’s overriding presence in the market each day has increasingly made the JGB market seem like a government-made market.

But a much bigger problem is Japan’s exploding public debt. With the debt already the largest of the developed nations, it could snowball out of control if an upturn in interest rates causes interest payments to escalate.

All of this spells doom for the world economy which for the most part nose dived today. Only a handful of countries, six total, have had positive market gains so far as of this writing. The US is of course, one of them. All Asian markets are going the other way as Japan is dragging down the region. Australian markets are also getting hammered with much sharper losses than expected over the past five months. Global cash flow is drying up too at a rate not seen since 2008. Wages are dropping everywhere as prices continue to rise. The stock market is increasingly being left by large hedge funds and billionaires and "dumb" money is taking it's place. This is sign that the Dow is being held afloat by idiots who have come to the party late, like all those caught holding onto unflippable houses after October 2008. Those same idiots are going to get spanked again.

Here's the facts: when you pump money into an economy with no brakes or oversight it will spin out of control everytime. And that is exactly what we are doing now. Unlike 2000 or 2008 however, once we careen out of control, there will be no way to stop as the brakes we had are burned out completely. This means that the next crash will be far worse than any we have ever seen, more likely worse than the Great Depression as millions will be out of work and tax rates will fall off the map. The government, both sides of the aisle, have let this happen and we have let them get away with it because we are too busy caring over what sex kid Kardashian is going to be. We need regulations put back on banks and to break up ones too big to fail, as our laws demand. As Republicans have been the thumb in the eye for any of this, getting rid of them first would be a good start. Then we can start applying pressure to the democrats to do the same or they are getting the heave ho next. It won't happen but I can dream.