Smoke and Mirrors as the DOW rises, but TOO LATE to save Pensions and Insurance Co.

The house of cards is giving the illusion of higher highs in the DOW (22K+). According to Janet Yellen and the Federal Reserve (private bank owned by 300 families), the economy is humming along and interest rates are set to rise. Is this double speak? If the economy is doing so well, than how come the ISM is at an all time low?

The ISM (Institute of Supply Management) Index monitors employment, production, inventories, new orders and supplier deliveries. Whatever the ISM is doing so goes the economy. If the ISM is up, than happy days are here. If it is going down, look out. The trend has been a declining ISM index for the past year. This is not good. That means durable goods, heavy equipment and raw materials orders are declining which means less jobs and more layoffs. Add to this bad news a few trade sanctions put on Russia and China and you are putting more nails into the coffin to our economy.

The bottom line is this. The Federal Reserve has been keeping the interest rate artificially low for decades. This was done to keep the big 5 zombie "to big to fail" banks alive (JPMorgan, Bank of America, Wells Fargo, State Street and Bank of New York Mellon and possibly Citigroup). Keeping these banks alive through quantitative easing and low interest rates has killed the nations Pensions, Insurance companies and savers (retirees).

Pensions and Insurances companies use an economic model that requires between 6% and 8% to survive. We have not seen those kind of returns in 20 years. Since those returns are not feasible, Pensions and Insurance companies are broke. They will not survive another 5 years period. The Federal Reserve is now trying to desperately raise interest rates to save these industries by painting a false picture of a booming Dow Jones. The stock market has been fake since the 1990's. There is no true price discovery anymore. The markets are run by high frequency trading super computers running on algorithms.

The super computer algorithms have been in an upward buying channel for years. The day is coming, however, that the algorithms will switch to a selling channel and there is nothing that the powers to be (Plunge Protection Team) can do to stop it. This downward selling trend will not be for a week or two but for years.

When this happens, make sure you are diversified out of the U.S. Dollar. Think in terms of liquid assets, physical Gold/Silver and crypto currencies.