Many central banks are beginning to understand that all the old theories from the Keynesian,Phillips curve, quantity theories of money and inflation have become obsolete. The cryptocurrency and gold bugs continue to preach the very same theories which the central banks have used and watch how they have failed to stimulate the economy. Some have moved to negative interest rates following the Keynesian model. That too has failed since 2014 after 6 years. Intelligent people have to ask themselves at some point when does a losing position warrant abandonment? The FED will change its view of inflation. Do not expect them to say it bluntly that all these theories have failed. Nevertheless, in discussions behind the curtain, the realization that everything turns on a matter of confidence. The average person knows nothing about the Phillips curve or know about the quantity theory of money. They respond based upon what they see in the street. The FED will change its view of Application because they see that this convent - 19. the FED will change its view of inflation because they see that this convent - 19 induce crisis is indeed going to get worse. With Bill Gates promoting this created pandemic will continue until the end of 2021, there is a realization that another round of 25 + of small business will be destroyed. Expanding the money supply under the old theories will not work. World GDP is around 88 trillion. The u.s. GDP dropped at an annual rate of 32.9% during the second quarter. Brittan saw a drop of 20.4%. We are showing you realistically the global decline was about 28%. Continue the created pandemic into the end of 2021 will produce a decline approaching 50%. We will see severe shortages in computers manufacturing Asia including printers to shortages in Commodities including food. It looks like the next two years is going to be crazy and very distorted.
The stock market and voter turn up are models on voter turnout show we may see a rise this time around which could reach the 60% level compared to 55.7 and 2016. It is hard to predict if this is base because of mail in ballot ,or fraud. Nevertheless, there does seem to be a lot at stake on this election from vaccines great reset to war. If we look at the Dow Jones Industrials it appears that the maximum correction maybe back to the 22,000 area. However, changing the index has typically involve just one stock in the past. This time in eliminating energy and replacing it with three stocks impact the levels in this market for they are creating a really new index. The S&P 500 made a new high here in August which increase the risk that we can still see a correction. Nevertheless, the main Banker support will be at 24,500 in the dow The NASDAQ has support AT 8,430 level the Russell 2000 had a turning point the week of 8/10 which was a high. We really need a monthly close above 16,000 in the Russell 2000 level to signal that the Broad Market is breaking out this distortion between these markets these indexes is really unprecedented we have to keep in mind that this is really an all-out War to take over the world using the virus to close the economy, and climate change to justify the great reset but this is another attempt to impose Marxism upon the world. We cannot discount the fact that these people may try to (force the stock market DOWN) thinking that this will hurt Trump we are running our model on every state for the election independently.
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