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“At any time in history, there is a great and all-encompassing THEME.  And I've wondered what the theme of today could be -- what is the great theme of our times?  I grew up in different times during the '30s and 40s.  The theme of my youth was -- stop the dictators, Hitler and Mussolini, from taking over the world.


This is what I believe the theme of our times is.  We are in a period where the “haves” are determined to hold on to their positions in the world.  The “haves” include the world's leaders and politicians, and the world's “masters of the earth,” which includes those who control the world's money.


Those who control the money make the rules, and their main aim is to remain in power.  Currently, the various central banks control the creation and the issuance of money.  To ensure that they remain in power, the central banks are spewing forth a veritable avalanche of fiat currency, money created out of a computer -- money that has been created out of “thin air.”  In turn, we are supposed to bow down and thank the money creators, those who are saving us from a new world depression.


At this time, although no banker will admit it, we are experiencing an international currency war.  Every nation wants a cheap, competitive currency.  It's a system better known as “beggar thy neighbor.”  Further, here in the US, the Federal Reserve has driven interest rates down to almost zero.


The zero interest rates are calculated to force people into equities, or better still, into housing.  The average man has little or no savings, and if he does have any savings, he can't find any place that will take his money and produce an income. 


In this whole process, debt has been created to an extent never seen before in history.  So far, the debt has been managed with super-low interest rates and borrowing.  But the compounding process goes on, and the debt mountain continues to grow.  So, to be brief, I see the theme of today as the “haves” doing whatever they have to -- to remain in power.


The dangers in the background for the haves are the possibilities that (1) interest rates will begin to advance, and (2) inflation will rise and be so visible that even the common man will recognize it, and begin to protest, or even revolt and (3) the whole debt structure will rise so high that it will topple over of its own weight and take down the entire world economy with it.


So to sum up my search for a THEME, the theme of today is the “haves” remaining in power, and in doing so, also keeping the “have-nots” content and happy.  Everything we are dealing with now, including stocks, bonds, real estate and possible sources of income revolves around the central theme that I have presented.


One further comment.  The key to control by the “haves” is the production of fiat, unbacked money.  Gold is the enemy of money created out of a computer.  When gold was removed as a discipline behind money, those who could create money out of thin air discovered the path to riches and control.  And they developed a hatred towards gold that was understandable. 


Gold was the monetary discipline that stood in their way.  This set off a long period of Fed-sponsored propaganda against gold.  Gradually, through the years, and as generation after generation passed on, even the common man in America began to agree that gold was a worthless relic, a useless ornament to be despised.


So this is what I believe is the theme of our times.  It's the control of our money by the modern “masters of the earth.”


Wait, I have another possible theme.  It is the current amazing, instant dissemination of news and information.  Even India is party to the outside world and everything that goes on!  Today, everybody knows everything.  If you have a mobile phone, you are immediately party to all that goes on in the human world.


When I moved to California in 1961, I received Monday’s Wall Street Journal and the New York Times by mail on Friday and sometimes on Saturday.  Today, information is instantaneous.  Thus, mobile cellular technology is the enemy of all dictators and strongmen every where.  Communications brought about the fall of the communist Soviet Union, and today it is stirring up revolution in the Arab nations. 

....................................................


Thanks to the Cyprus fiasco, frightened money from overseas is pouring into the US, and specifically into the big, dividend-paying stocks.  I've been following the Cyprus mess with interest.  The island is broke, and its banks are filled with Russian money.  Russia would love to take over the island along with its oil rights. 


To the north, Germany feels that it can't bail out the whole euro zone.  Without going into all the maddening intricacies of the whole “United Nations of Europe,” I think the whole idea is unworkable.  It's a modern “Tower of Babel,” with no one speaking the same language and every economy different as to work ethic and needs.


I believe it is best to leave Europe alone and simply to concentrate on the action of our markets.


The Wilshire 5,000 and the small stock index have recorded new highs, thus confirming the new highs in the Dow.  The hold-out, and the index that everyone is watching, is the S&P 500.  The pros follow the S&P, and I don't think they will rest easy until, or unless, the S&P confirms.


I have drawn attention to the problem of the S&P in previous sites.  Below we see the rising channel in the S&P.  The technical problem is easily seen in that the S&P is well below the upper border of the channel.  If we were seeing strong action in the S&P, the Composite would be making contact with the upper trendline of this channel.


So what's holding it back?  What could be wrong?  Honestly, I don't know, nor do I have to know.  The stock market is often in the process of discounting coming events which you and I are totally unaware of.  Going back to the chart, I see that RSI appears to be turning down and the same can be said of MACD.”




To subscribe to Richard Russell’s Dow Theory Letters CLICK HERE.


© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


The audio interviews with Rick Rule, Bill Fleckenstein, Dr. Paul Craig Roberts, Gerald Celente, Michael Pento, Nigel Farage, Eric Sprott, Egon von Greyerz, Rob Arnott and James Turk are available now.  Also, be sure to hear the other recent KWN interviews which include Marc Faber, Felix Zulauf and Art Cashin by CLICKING HERE.


Eric King

KingWorldNews.com

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