Sunday, June 08, 2014

Is The Greatest Turning Point In Human History Near-At-Hand?

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"Those who cannot remember the past are condemned to repeat it" - George Santayana

For regular leaders of my blog, you've seen from time to time that I reference my "Manic-Depressive Man" thesis and provide commentary drawn from the Elliott Wave Principle.  We may now be at one of the most important historical turning points ever based upon my unique perspective.


"Given the terminal nature of the entire wave from the 2009 low, there is a strong probability that the last all-time high in the Dow for years to come will register today. The extremely low volatility of recent months is likely to transition to the greatest volatility ever recorded for U.S. stocks.  Our timing work suggests that wave c to the downside will be relentless and do its damage over a brief span of two years." 
- Rober Prechter, Elliott Wave Theorist interim report, 6/6/2014

The Elliott Wave Principle was developed in the 1930's by Ralph N. Elliott, an accountant by profession, who was bedridden for long periods of time due to chronic illness and took that time to analyze stock price charts in the wake of the 1929 Great Crash to determine if there was any recurring patterns.  From this, he formulated Elliott's "Wave Principle" that the stock market generally proceeds in a path of three steps forward with two steps back on recurring scales of magnitude that is depicted like this:

In the 1970's and 1980's, Elliott's Wave Principle was uncovered and popularized my market technician Robert Prechter who eventually started Elliott Wave International headquartered in Gainesville, GA, that has since become the world renown authority for analysis of global markets utilizing the theory.

I will not attempt here to reexplain the Wave Principle and its many rules and tenets but instead encourage any one interested in further learning to and Robert Prechter's advisory services for a thorough explanation of the theory and its current application to global markets.  Robert Prechter has invested his life into developing and bringing to global light this most important social SCIENCE of mass human thought and behavior and you will do yourself a great disservice by failing to take advantage of an opportunity to learn more.  (No....I'm not a paid shrill, but I am an admiring fan of Prechter's ingenious work.)  For those with insufficient funds or interest, Wikipedia has an excellent overview of the Wave Principle.

What's critical is that, at the current juncture, the Elliott Wave Principle is signalling we are currently reaching the ultimate historical top....what is aptly described as the peak of Western Civilization:

In the context of this long-term topping process, we are now at or near the end of the rebound in mass mood and stock prices since the Spring 2009 low (see Prechter's quote above).  

What does this mean?  

That's the $100 trillion question I'd like to answer here now.

First off, let's consider the authoritative perspective of Elliott Wave International:

Above is the opening section of the latest Elliott Wave Financial Forecast which was released Friday.  

As you can see, the view is that the DJIA, which closed just below the psychologically important 17000 mark last week, is "TOPPING".  Following this top, a drive in stock prices down to below the 400 mark on the DJIA (and that's really 400....not 4000) is anticipated according to the tenets of the Wave Principle.

What could cause such a massive collapse in the DJIA?

For the answer to that we first must consider what the DJIA represents.  The DJIA is a market index derived from the equity share prices of 30 of the largest U.S. corporations.  In this way, it is a price measurement that represents the earnings and well-being of the U.S. economy.  A rising DJIA means rising stock prices in general and climbing earnings anticipations for big business, i.e., it implies rising collective confidence and optimism for American capitalism.  Likewise, a falling DJIA implies an upset of collective confidence and growing pessimism for American capitalism.

Thus for the DJIA to fall from 17000 to below 400 in a matter of a couple of years from now, some sort of drastic upset of investor confidence in U.S. capitalism would need to occur.  Where could such a historic upset come from?

 That's what I've been trying futility to warn this world about for the past 20+ years! Western collective confidence in capitalism has been intentionally pushed to irrational heights by Kremlin strategic deceptions for the very purpose of a total upset in the form of a surprise nuclear third world war.

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.” - Carl Sagan


An Apocalypse (Greek: Ἀποκάλυψις Apokálypsis; "lifting of the veil" or "revelation") is a disclosure of something hidden from the majority of mankind in an era dominated by falsehood and misconception, i.e. the veil to be lifted. In a rather common-sensical way the term is associated with an eschatological final battle, the Armageddon, and the idea of an end of the world due to out of time. This perceptions may better be related to the phrase apokalupsis eschaton, literally "revelation at [or of] the end of the æon, or age". In Christianity The Apocalypse of John is the Book of Revelation, the last book of the Bible. (Wikipedia)

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