As the government begins its first full day of being shutdown on Oct. 1, several different factors need to be considered on how or why the U.S. got to this point. In the weeks leading up to the shutdown, very little was done by members of the House of Representatives, the Senate, or even the White House to negotiate a compromise to keep the government functioning at full capacity. Even on Sept. 30, one day before the end of the fiscal year, the bills being generated by the House were created to be rejected, with their offerings being little more than political theater.
Which then leads to the real question of why the House forced a government shutdown. Was it simply an attempt to dig in their heels on issues such as Obamacare and the deficit, or was there something much more important that was colluded behind the scenes by both branches of government, to create a 'false flag' to protect something much bigger.
On Oct. 1, the Guerrilla Economist issued a statement suggesting that the government shutdown was simply a ploy to protect the petro dollar, especially in light of Obama's recent failures over Syria. Additionally, the limited functionality of government has allowed the bond market to drop precipitously over the past two weeks, with gold and silver being pummeled in the process.
As an analyst I look at one thing and one thing alone, I watch where the money goes. Folks this shutdown is an attempt to do a few things to keep the dollar scheme going. October 1st is the start of the fiscal year for the federal government, this I find laughable as they have not passed a budget in 5 years!!! I expect these morons to end their charade before the October 17th deadline as that is when we officially run out of money.
Here is what’s really going on behind the scenes. First we have to understand what I have been saying for months NOW is coming true. This is the death throes of the petro dollar system as they try desperately to keep the Ponzi scheme going. This shutdown accomplishes a few things that are necessary short term fixes.
The first thing is the bond market. Over the recent weeks we have seen the grim reaper of interest rates rising on the the ten year note into the uncomfortable 3% range. What is a bankster to do? Simple order the paid for cronies in DC to go ahead with the shutdown. This does one major thing for the bond market. It creates a shock like affect in the housing market. - V, Guerrilla Economist, Q Alerts
Since talk of a government shutdown began approximately two weeks ago, the bond market has fallen nearly 40 basis points (bps) from its August move to over 3%. In fact, the 10 year fell 6 bps today alone, and now sits at 2.59%. This move is likely to drop mortgage rates by 40 bps, and help keep the housing bubble going, and the Fed's plan of a false recovery solid.
Additionally, the move into bonds has had a major effect on the paper gold market, with the yellow metal falling from a high of $1360 on Sept. 19, to a low of $1290 on Oct. 1. This drop actually validates a prediction made by the Guerrilla Economist in early September, in which he forecast gold prices would fall to the low $1200's, or even the high $1100's, before making a parabolic move upward as the dollar declines.
The government shutdown was implemented with much Kabuki Theater, and very few attempts to keep it from happening. And with threats to the dollar, bond and interest rates, and the foundation of U.S. control of the reserve currency, all occurring leading up to the Oct. 1 deadline, all one has to do is listen to the words of President Obama yesterday, when he mentioned numerous times our need to retain and protect the reserve currency at all costs.
