Winter is Coming

Within days now (end September, 2015), the market is likely going into another “free fall.” The problem around the world is debt. Even though your government is telling you everything is fine, it’s not.

Countries around the world have the largest debt levels in history. They’ve been able to do this because of the adoption of fiat currency in the 1970s (they disconnected currency from the gold standard). It used to be that you could exchange your dollar bills for gold. Now, currency isn’t backed by anything other than the government’s promise to pay. And governments around the world are bankrupt. That’s a BIG problem.

Fiat currency is currency that isn’t backed by anything other than a promise to pay. Fiat currency has never worked all through history. It always crashes. Even Rome learned that lesson the hard way. But, politicians never learn and history gets discarded. People think “It can’t happen now. This time is different.” But it never is.

We’re set up for a big crash on a multitude of levels. Thanks to your bankers and politicians, we’re not ready for it. It’s coming at a time when the world is morally and financially bankrupt. In fact, historically, that’s how we tend to clean up the mess.

Nature’s Cycles

How do nature’s cycles tie into this rocky situation?

In the early 1930s, US President Herbert Hoover asked the then head of the US Commerce department (Edward R. Dewey) to look into why the US experienced so many recessions and depressions during the 19th and early 20th centuries … twelve in all.

List of Recessions and Depressions in the 19th and Early 20th Century

Mr. Dewey spent the rest of his life doing just that and found thousands of cycles, affecting real estate, animals, marriages, just about everything that happens on Earth. He wasn’t the only one to focus on cycles.

Dr. Raymond Wheeler spent his entire life with a team of 200 staff analyzing climate over 20 centuries. He found regular cycles of 25, 100, 500 and 1500 years. Think of it as winter at a higher level – a colder, dryer winter season that overrides our regular seasons.

Dr. Wheeler compiled all that data into a huge 7 foot wide tome of 2,000 pages, called “The Big Book.” It correlates all the major events from the past 20 centuries (back to 600 A.D.) with precipitation and temperature cycles. It’s currently kept in the archives of the William and Anita Newman Library, at Baruch College, in New York. That’s a picture of it in the shot of Dr. Wheeler on the left.

At the same time, Dr. Wheeler developed the Drought Clock, an accurate forecast and history of the regularly spaced (at 170 years), major droughts throughout history. The most recent one was expected to hit just before the year 2000 … and here we are.

Lee Iococca, past CEO of the Chrysler Corporation, known for spearheading the development of the Ford Mustang and spurring the company’s golden years, says this about cycles:

Global Cooling in the 1970s

I remember in the nineteen seventies, everybody was worried about global cooling as the temperature dropped from about 1945 through 1975. And now we’re concerned about global warming. The pendulum swings and humans go crazy. It’s been getting cooler on Earth since 1998. It’s simply a natural cycle.

Global Cooling Articles from the 1970s. 

The forecast is for another mini ice age, just like we had in the 1600s.

Habibullo Ismailovich Abdussamatov is a Russian scientist supervises the Russian section of the International Space Station. He has presented at the International Conference on Climate Change.

In 2012, he predicted that we would start to enter a mini ice age due to the diminishing intensity of solar maximums, which are cyclical, and reach their top intensity every 11.2 years (on average). In fact, in 2014, which was the top of the most recent solar maximum, we saw the lowest level of solar irradiance and sun spots in over 200 years.

We had a very low relative level of irradiance in the early 1970s, which ushered in the recession and market low of 1974.

How Climate Affects the Market

I created a video and blog post recently showing how the DOW correlates with the weather over the past century. It’s entitled, Don’t Like the Climate? Wait a Cycle.

Here’s where the big “ah hah!” moment starts. Climate doesn’t actually affect the market. Climate changes parallel the market. If you think about the dots I’ve described in this short article and then connect them, you might stumble over this hyphothesis:

1. The solar system (planets, Sun, and Moon) affect the climate on Earth. Our climate is cyclical. It gets warmer, then cooler, etc. We get lots of rainfall, then large periods of drought and over and over again. The seasons are fractal and have longer and larger periodicities, up to 1500 years and more in length.
2. Humans (in fact, all life forms, even plants) are affected by electromagnetic waves from the solar system. Our mood changes on a mass scale based upon the position of the planets. That’s why history rhymes. These influences happen over and over again, and that’s why we go through periods of relative calm juxtaposed with revolutions and wars. The stock market is a mathematical representation of the mood of “the herd,” or masses.
3. Climate runs in parallel with our mood changes. Everything that happens on Earth is to some extent dictated by what happens in the Universe.

Solar Cycles

Back again to solar cycles.

It’s quite well known in professional trading circles that depressions and recessions invariably take place within a year after a solar maximum. It’s happened this way for over 200 years.

The chart on the left shows the solar cycles back through 1926, but if you follow them back further into the 1800s, you’ll find the same phenomenon. The blue bars show the recessions and depressions during that period.

We’re not in control of the or our immediate world here on Earth. To some, a complete shock. To others, completely impossible and unacceptable. Well, all through time, as far as I can tell, “What Mother nature wants, Mother Nature gets.”

Like the four seasons every year—we’re immersed in natural cycles. The sun creates day and night, the moon creates tides. Winter, spring, summer, and fall. These are all natural cycles. And there are larger cycles that are longer in length. The problem is that they last longer than any of us are alive. We’re so busy living in the moment, that we can’t see the bigger picture.

So, where are we now? Dr. Wheeler found that when the climate turns colder and dryer (which is has), that certain things happen every single time:

• Civil wars,
• Stock market crashes,
• Pandemics,
• Revolutions
• Riots
• Famines
• Large groups migrating

Take a  moment to reflect on what’s going on in the world. This should all ring a very big bell.

The very rich know about these natural cycles and have become even richer because of it. For example, the Rothschild family, the world’s banking dynasty, made their fortune in the 1800s because of this knowledge. Naturally, they kept it to themselves. They would actually play both sides of a major international conflict by loaning money for war to the parties involved. Very smart.

What we have right now are converging cycles all heading down.

So … it’s time to get off the party train and get ready for winter. If you’re prepared, you’ll survive and thrive. If not, there’s going to be some pain.

That’s my wake-up call. From the kook.

Winter is coming. Get prepared and you’ll do just fine. In fact, you’ll prosper!