We dont try to do the right thing we just do things the right way. Hence this brings about a new Tactical Investor saying dont try to do the right thing just do things the right way. Sol Palha
The last time we updated this chart was in June and at that time the reading was 1680; in July it rose to 1701 and in August it inched up to 1710. It appears to be trending sideways and it could mount a correction as it has not looked back once since Feb 05. However the last time it took a dip was back in August 06 and then instead of correcting it soared even higher. As we have stated before the next red line zone is 1800 and should we breach that before the Year is out the situation will explode. The last red zone was 900 and at that time we stated if we were to cross that zone before the end of 2006 the situation would truly become horrendous. Since then sectarian violence has exploded, the Taliban have emerged as a more organized and dangerous force, Pakistan is in chaos and Iran refuses to bend.
Afghanistan which was being trumped as a success story is in complete chaos however the press here makes it look like everything is rosy. It so bad, that those Afghanis who seek U.S. Visas have to go to Pakistan to get them. The reason for this is that the U.S fears that a long line will attract suicide bombers. This simple admission illustrates how much ground the coalition forces have lost. Its a powder keg waiting to implode (it has already exploded) and the coalition forces are barely holding on. In Pakistan Musharraf is in the battle of his life; his political career for all purposes is over and the only thing keeping him in power now is the backing of the military. He could lose this backing anytime if the masses continue to rebel against him. Iran continues to snub the United Nations and U.S as its still secretly being backed by Russia and to a lesser extent China.
As we stated before the scales of power have tilted against the US; the US is no longer the Sole master of the world. A new world order has emerged that this group that is being led by Russia is slowly changing the rules of the game. This new group has an unbelievable edge over the US; military Russia is equal to the U.S as the U.S would never dream of attacking them. The second edge comes from China; they have full control of the economy via their huge treasury holdings. A simple hint that they were going to dump these holdings could send the US economy into a complete nose dive. Finally as a back you have India; the country with worlds second largest army and one that also possess nuclear weapons. When you examine this trio there is simply no way the US can win and actually it has already lost the battle. The problem is that the politicians in Washington simply refuse to believe this. They think they can continue to bully and push the rest of the world but their Empire is crumbling on all fronts.
Our religious provocation index is suggesting that this current war could last up to 18 years before its all said and done. Remember how the Russians lost Afghanistan; all it took was several thousand shoulder fired missiles and the rebels in Afghanistan were able to destroy the then so called second strongest army in the world. They are employing the same tactic now; they hit and run and the coalition forces like big blind elephants bring their massive firepower and blindly aim at anything that moves. The same situation has been unfolding in Iraq.
For those of you that remember the Revolutionary war in the US; remember how a bunch of Yankee rebels were able to defeat the red coats (England). All they had was superior musket rifle which was more accurate and could fire from longer ranges. These rebels would simply wait and ambush the red coats basically a hit and run strategy. This simple strategy was enough to crush what was than the strongest army on earth. The same technique is now being used in Iraq and Afghanistan, only this time instead of simple rifles they have shoulder fired missiles and highly destructive explosive devises. The principle however is the same; cause as much damage as possible to the enemy with the expenditure of minimal resources. It costs these guys 50,000 or less to inflict millions of dollars damage at a time. Thus its easy to conclude that these wars are lost and they were lost causes even before they begun. As previous empires crumbled (the soviet Union and the British Empire) when over stretching their resources, the same fate lies in store for the US. As we stated long time ago this is a religious war against Muslims and things can and will only get worse.
This index has gained over 180 points since June and it shows no sign of slowing down. The higher this index rises the more individuals are willing to sell themselves for money; one can see this in the massive rise of erotic/XXX rated services. There is almost no free newspaper in the country now that does not carry ads in this category and now the internet has taken off. One of the biggest sources of the flesh trade is now Craigs list and the speed at which things have taken of is truly staggering. The police are trying to put stop to this but for everyone one culprit they catch 10 more appear. This massive rise in this index not only correlates to an increase in erotic services but it also means that in general we are entering into a dog eat dog world. In other words friends, family, business associates, partners etc are more and more willing to betray each other for a chance to make a bigger buck. In other words we are entering into a world where anything can be bought; one just has to be willing to pay the right price and sadly the price is actually dropping instead of rising. Ones word which used to be something solid and something to stick buy today is almost worthless and an almost forgotten concept. Honour and dignity have gone out the door and in their place deceit and greed have emerged.
This index so far appears to be working hand in hand with the Adult index and note that in the last two months it has mounted a rather huge move upwards. In July it jumped 60 points to 510 and in September it jumped another 50 points to 560, thats a 24% jump in just 2 short months. This index illustrates that in general Americans are getting poorer and poorer or at least more and more of them believe they are. Most Americans do not know the meaning of true poverty at least not yet; they feel they are getting poorer because they can no longer afford most of the junk and garbage these used to buy with money they did not really have; they used credit and then depended on their weekly pay cheques to make their monthly payments. Thus a lot of them feel poorer now simply because they cannot go out and buy all this nonsense as they have used up their credit and or they have to cut back because their salaries have actually fallen due to losing their old jobs or being fired etc. Thus you have individuals here now who they think they are poor and as a result are then convincing themselves that its okay to do whatever it takes to service their rising debts. Too many individuals feel that they must have a brand new car, the best Televisions out there, the latest DVD players, the latest fashions etc; its called keeping up with the joneses syndrome and they are willing to bankrupt themselves in order to keep up this illusion. Our advice for a long time has been to live 1-2 standards below your current level; if you friends and family start to make fun or start to give you a hard time. Our advice is to get rid of them for when you are in the gutter they will be the last ones to help you. Remember there is a saying that God helps those that helps themselves to which we added a small extra piece and the Devil helps all those that fall in between.