Cycles, Mindsets, Where Some Mindsets Come From, Reaction to Shock

Understanding of cycles demands a detached, non-emotional point from which "things" are observed. Often there must also be a moment of introspection, looking for gut reaction, a triggered response. You see that triggered response might just transfer your money, via bad investments, into the hands of another. So the introspection must be honest in self examination. After a while you start to feel your strings being tugged by ... something or someone somewhere.

You do not want to play their game by their rules on their turf.

No way - if you wish to retain your money and financial freedom.

So this week we have something happening. A cycle arrives, and nobody here knows precisely what that means, but you know it arrived because I let you know of this.

And about the same time, among the usual cluster of cycle synchronized events - a terrorist disaster happens in France.

So there is a choice. You can react like this:

or decide to not react yet, and before reacting, learn a little more about this:

If you are not presently of time to watch the second video, I suggest watching the top link, that's the reflexive reaction - the triggered response which takes just 5 minutes. You'll get the point by half way.

Then instead of the 2nd video, learn about THE SHOCK DOCTRINE, The Rise of Disaster Capitalism by Naomi Klein. Summary of the book HERE.

Here is the associated website :

Of course, when I tried to go to the above link I got a red warning screen about the safety of visiting this website. Always a good sign if you have a curious enquiring mind. But I went there anyway and my computer didn't explode or die, revealing the warning itself as very fishy, and then I got to read stuff like this:

Exposing the thinking, the money trail and the puppet strings behind the world-changing crises and wars of the last four decades, The Shock Doctrine is the gripping story of how America’s “free market” policies have come to dominate the world-- through the exploitation of disaster-shocked people and countries.

At the most chaotic juncture in Iraq’s civil war, a new law is unveiled that would allow Shell and BP to claim the country’s vast oil reserves…. Immediately following September 11, the Bush Administration quietly out-sources the running of the “War on Terror” to Halliburton and Blackwater…. After a tsunami wipes out the coasts of Southeast Asia, the pristine beaches are auctioned off to tourist resorts.... New Orleans’s residents, scattered from Hurricane Katrina, discover that their public housing, hospitals and schools will never be reopened…....

These events are examples of “the shock doctrine”: using the public’s disorientation following massive collective shocks – wars, terrorist attacks, or natural disasters -- to achieve control by imposing economic shock therapy......

The book traces its origins back fifty years, to the University of Chicago under Milton Friedman, which produced many of the leading neo-conservative and neo-liberal thinkers whose influence is still profound in Washington today. New, surprising connections are drawn between economic policy, “shock and awe” warfare and covert CIA-funded experiments in electroshock and sensory deprivation in the 1950s, research that helped write the torture manuals used today in Guantanamo Bay.......

Most interesting.

... (An aside point : That warning screen ... how ... why ... who was named in the webpage again? ... in the paragraphs I reproduced for you just above) ...

So how detached are you when you experience shock and disaster? Can you be led? No? "No!" Ok then: Do you react contrary to the direction of being lead and oppose-fight the first motivation? If either is true, you have just been recruited by someone, something. Now you are a puppet. A tool of one of two "sides" in their nasty game. You are "their asset" acting independently, but still doing "their" work. Your money, if you trade, is toast, you just don't know it yet.

Today I see news appearing like these items:

Nice attack forces London’s Mayor Sadiq Khan to review ‘safety measures’

French Unity Cracks as Opposition Slams Nice Security Response

Did you know ...

... when a prisoner goes into shock, they go into regression, and a window opens. They may form a bond and place trust in their interrogator .....

...... Milton Friedman mentioned the phrase "economic shock" in letters to Pinochet .....

So what if a whole society is put into shock? Will they do or accept things they will regret later? How many shocks are required if the society is resilient? How many shock and awe attacks will do the job? Will a spontaneous disaster, great fire, or other shock work as well? What is the purpose? Who will get what they want?

How can I avoid being played and trade the fresh bubble about to be created?

Wait ... what bubble? Well I mean the reaction taxation-spending bubble.

A despicable way to think? Really? Only if you just got emotional. If you are in the markets, there is no "right" side. It's go long or short or do nothing. You are evaluating, calculating, who will win, who will lose, and why, and what to do about that.

This is nothing new. Peace is a threat to certain ... investments ...

Be detached.

Let the fear go. While you are letting it go, identify where it come from. Who it came from.

Avoid falling for the "either with us or against us" tactic to eliminate opposition to the scheme. Cast aside the "you aren't courageous and brave" patriotic jingoistic recruitment tactic. Those are cheap tricks intended to subvert the ignorant and bully their minds away from a middle way, a balanced and direct other response to the shock stimulus from those provided for discussion.

Now you should see those who play you. Tugging at you subconscious emotions with a subtle "fear reaction string". You can see them for who and what they really are. Who was ... behind or piggybacking on ... the shocking news that reached out to you.

When I am trading, I get excited, but that feeling now rings an inner alarm. I had to learn that. When the inner alarm goes off I pull myself together, imagine I am a spider watching my web, and wait for the trade to come to me and catch itself. That a pretty unemotional attitude. It's necessary, if you want to make money trading. You need a totally independent attitude to trade.

Of course it would be better to not have the reaction. No rewarding bubble for the insiders. You need a resilient society for that. Evaluate the resilience of your society and be realistic, not emotive, in your trades. And try to show your friends how it works. Remember to be gentle with people. Reasonable and understated rather than pushy. As I try to be here. People need time to adjust their worldview.

And my deepest sympathy goes out to the victims and their families for this terrible atrocity in France.

Argentus Maximus


The author posts daily commentary on the gold and silver markets in the TFMR forum: The Setup For The Big Trade. More information about the author & his work can be found here: RhythmAndPrice. The author advises that he trades and holds market positions in accordance with his own opinions.

EDIT: 16 July 2016. the Youtube video link to Naomi Klein speaking was replaced with another link of the same speech. The replacement link is a single continuous video, whereas the original was the first one of the same speech cut into ten video clips

About the Author

Subscribe or login to read all comments.

Support TFMR

Donate Buy Silver

Access Subscriber Benefits

Listen to TFMR on the go in your favorite podcast app, and join our member-only forum discussions!

Key Economic Events Week of 9/25

9/26 8:30 ET New Home Sales
9/26 9:00 ET Case-Shiller home prices
9/26 10:00 ET Consumer Confidence
9/26 1:30 ET Goon Bowman
9/27 8:30 ET Durable Goods
9/28 8:30 ET Q2 GDP final guess
9/28 1:00 ET Goon Cook
9/28 4:00 ET Chief Goon Powell
9/29 8:30 ET PCE and Core PCE
9/29 8:30 ET Personal Inc and Spend
9/29 10:00 ET UMich sentiment

Forum Discussion

by argentus maximus, Sep 13, 2023 - 12:08pm
by Wade Case, Sep 11, 2023 - 5:55am
by argentus maximus, Sep 7, 2023 - 12:40pm
by argentus maximus, Sep 7, 2023 - 12:36pm