End Of The World – Kong Attends

The world isn’t going to end….. so for those of you hoping to take the “easy way out” of your current gold positions – please……if only it where that easy.

The Solstice on December 21, 2012 ~ precisely at 11:11 AM Universal Time ~ marks the completion of the 5,125 year Great Cycle of the Ancient Maya Long Count Calendar. Rather than being a linear end-point, the cycle that is closing is naturally followed by the start of a new cycle. What this new cycle has in store for humanity is a mystery that has yet to unfold…

2012 is also considered the completion of the 26,000 year Precession of the Equinoxes cycle, and some say it also signifies the end of a 104,000 year cycle. That is some serious SERIOUS math on the part of the Maya – and as an avid student of “all things Maya” I will be in attendance at the ruins of Tulum  – here on the Mayan Riviera, Yucatan Mexico.

As my spaceship is still in “ill repair” perhaps my fellow space brothers will make an appearance, saving me some time and effort. We’ll see……but if all things go right – well…………  “It’s been a slice!”

I wish you all the best of luck with your trading, and encourage  you to continue looking to the future – as the past will provide little guidance for the “financial reckoning” coming soon to a theatre near you.

Kong…………(literally) Gone.

The Financial Reckoning: Trading Beyond the Great Cycle

Gold’s False Promise in a Fiat Currency World

While you’re clutching those gold positions like ancient Mayan codices, understand this: the precious metals game has fundamentally shifted. The dollar’s reserve currency status isn’t disappearing with some mystical calendar transition. Central banks globally continue their coordinated monetary expansion, but gold’s traditional hedge properties are being systematically dismantled by sophisticated currency interventions. The Swiss National Bank’s euro peg, the Bank of Japan’s relentless yen weakening, and the Federal Reserve’s balance sheet expansion create cross-currents that make gold a relic of 20th-century thinking. Smart money isn’t hiding in metals—it’s riding the currency volatility waves these policies generate. The EUR/CHF carry trades, USD/JPY momentum plays, and emerging market currency dislocations offer exponentially better risk-adjusted returns than sitting on barbarous relics.

The Maya understood cycles, but they didn’t have to contend with algorithmic trading systems that can move billions in microseconds. Modern forex markets operate on technological cycles measured in nanoseconds, not millennia. Your gold position is fighting yesterday’s inflation war while tomorrow’s currency wars are being fought with derivatives, swaps, and coordinated central bank interventions that make traditional safe-haven assets obsolete.

Currency Wars and the New Cycle Reality

This “new cycle” isn’t about cosmic alignment—it’s about the death of traditional monetary relationships. The 26,000-year precession means nothing to the Swiss National Bank when they’re defending 1.2000 in EUR/CHF with infinite francs. The real cycles traders need to understand are the 8-year commodity super-cycles, the 18-month central bank policy cycles, and the 4-hour algorithmic rebalancing cycles that actually move markets. Brazil’s real, the Australian dollar, and the Canadian dollar are dancing to commodity rhythm while the yen weakens on demographic destiny. These are your trading cycles, not ancient astronomical phenomena.

The Japanese yen’s structural decline isn’t stopping for Mayan prophecies. Demographics don’t lie—Japan’s aging population creates an inexorable current toward currency debasement. The USD/JPY pair has structural tailwinds that make short-term pullbacks mere entry opportunities for the larger trend. Similarly, the European debt crisis creates persistent EUR weakness against the dollar, regardless of temporary technical rallies. Trade the structural forces, not the mystical ones.

Emerging Market Currency Opportunities

While developed market currencies engage in coordinated devaluation, emerging market currencies offer the real asymmetric opportunities. The Brazilian real’s yield advantage, coupled with commodity exposure, creates compelling carry trade opportunities for those willing to stomach volatility. The Mexican peso benefits from manufacturing reshoring and NAFTA trade advantages that strengthen over multi-year timeframes. These currencies aren’t moving based on ancient calendar completions—they’re responding to capital flows, trade balances, and relative economic growth differentials.

The Chinese yuan’s gradual internationalization represents the actual “new cycle” worth trading. As China opens its capital account and allows greater currency flexibility, the USD/CNY pair will experience volatility that dwarfs any mystical 2012 predictions. Smart traders are positioning for this structural shift, not hedging against apocalyptic scenarios with gold purchases.

Technical Analysis in the Age of Algorithmic Dominance

Forget Mayan astronomy—modern forex markets move on algorithm-generated technical levels that create self-fulfilling prophecies. The EUR/USD’s 1.3000 psychological level, USD/JPY’s 100.00 barrier, and GBP/USD’s 1.6000 resistance aren’t arbitrary numbers—they’re algorithmic trigger points where billions in stop-losses and option barriers create explosive price action. Understanding these technical levels provides more predictive power than any ancient calendar system.

High-frequency trading systems have compressed traditional technical analysis timeframes. What once took weeks now happens in minutes. The smart trader adapts to this reality, using shorter timeframes for entry and exit while maintaining longer-term directional bias based on fundamental currency drivers. The “financial reckoning” isn’t some mystical event—it’s the ongoing evolution of markets toward greater speed, efficiency, and algorithmic dominance. Trade with the machines, not against them, and certainly not based on ancient prophecies that have zero correlation with currency price action.