Current New Solar Cycle 24

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Here is a quote I saw useful.

“Solar cycles are capable of producing severe space weather. On September 1, 1859, a British astronomer named Richard Carrington observed the largest solar flare in solar storm that came to be known as the Solar Superstorm of 1859 or the Carrington Event. The Carrington Event caused fires in telegraph offices after it electrified transmission cables. It also produced extremely bright Northern Lights. So bright, in fact, that gold miners in the Rocky Mountains woke up and began preparing breakfast because they thought it was morning. If a similar storm were to happen today, the National Academy of Science estimates the damages could be in the range of $1-$2 trillion. The storm in 1859 caused outages in telegraph systems for most of America and Europe. You can only imagine what a solar storm of that magnitude would do to our communcations systems today. Let’s just say that your Twitter and Facebook accounts would not be updated for a while.

Solar Cycle History Since 1600
Solar Cycle 24 (our current solar cycle) are expected to be the lowest since 1928. Both of these solar cycles are on par to be very similar to the solar cycle during the time of the Carrington Event.
Also, notice the time range labeled Maunder Minimum in the graph? That is an unexplainable 70-year span of spotlessness. It confuses scientists and astronomers to this day.

Solar Cycles 21-23

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Cycle 21 started in June 1976 with a smoothed sunspot number of 12.2

Cycle 22 started in September 1986 at 12.3.

Cycle 23 started in May 1996 with the monthly SSN at 8.0 and peaked in April 2000 at 120.8. The last smoothed monthly sunspot number is for March 2007 at 10.8.

Solar Cycle 24 is the active solar spot cycle and is estimated to peak in 2012.

Sunspot Cycle Number Year of Minimum Minimum Sunspot Number Year of Maximum Maximum Sunspot Number Rise to Max (yrs) Fall to Min (yrs) Cycle Length (yrs)
14 1901.7 2.6 1907.0 64.2 5.3 6.6 11.9
15 1913.6 1.5 1917.6 105.4 4.0 6.0 10.0
16 1923.6 5.6 1928.4 78.1 4.8 5.4 10.2
17 1933.8 3.4 1937.4 119.2 3.6 6.8 10.4
18 1944.2 7.7 1947.5 151.8 3.3 6.8 10.1
19 1954.3 3.4 1957.9 201.3 3.6 7.0 10.6
20 1964.9 9.6 1968.9 110.6 4.0 7.6 11.6
21 1976.5 12.2 1979.9 164.5 3.4 6.9 10.3
22 1986.8 12.3 1989.6 158.5 2.8 6.8 9.7
23 1996.4 8.2 2000.3 220.8 Ý Ý Ý

Cycle intensity varies over a Century.

xxxx

Major Trend Changes to Live By – 2010 and On…

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The count down has started.  We have 500 days left and at best 50% more but I would not count on it.

The visible signs are clear for the trained eye.

As Ancient Chinese Philosophy says: “At the Extreme of Yang True Yin Develops.”

I will say October 2007 is the official Trend Change date just like September 30 1981 was the official prior Trend  Change to consumerism and monetary easing and at that extreme point was the highest interest rate with hyperinflation in modern history exceeding 20%.  (Today we have the near lowest interest rate in history as measured by the 1-year Note – the record being 1949 at 1.65%).

10/2007 is my official beginning date for this major paradigm shift.  The foundation of that work has been brewing from 1999 but this is the official date the weather with its forces and tide has all changed.  And if you believe in swimming with the flow.  The direction of the flow has changed so the rules of engagements too.

It must be critically understood that, the majority of the people (except certain very enlighten and smart people) have not realized it and certainly is not widely known.  Most are going along with the news and the day to day activities being affected by shocks but unable to realize that these shocks are no longer occurring under the same conditions.  A flame under a moist and windy day is different than a flame under a dry hot summer day especially when all around you is combustible material.  So, if you are with the masses and develop a herd mentality you are in the most serious trouble.  And if cannot get out of such, stop reading right here because this will be a waste of time.

The changes I am taking about will not be felt for another 2 to 5 years.  Just like China for most of you came without warning to the masses and even some masses still do not know.

Thus there will be a lot of work for you to convince people out there including family and friends but you will earn your wealth while others lose it because the risk for the new trend is lower but not lowest – lowest point we should actually we have started 2 years ago.  Smart but did not act decisively or lets say something did not…(excuses).

The old investment saying: “Buy Low Sell High”, most people know but few can practice it.  At the low, everyone is talking about selling and at the high every one is convincing you you should buy more.”  Again if you are with the herd, you will suffer with them.

We will only earn our stripes by being smart and independent being informed thru our own research and making bold decisions and taking action.  This is NOT the land for the sissy and the pussycat.  Go home and hide behind your spouse skirts like some people I used to respect.  Or go try getting a corporate job to hide inside the bureaucracy better yet get a government job.  You will not need to perform just show up to work and retire.

Here are the awaited TRENDS until the tide changes:

WORLD
- Emerging countries will strive proportionately above Developed Countries
- The economic pendulum remains in the Asia
- Asia will be fundamentally strong behaving in traditional Austrian economics supply/demand trends.
- Western austerity will be undermined and will go into austerity, Eastern will go into luxury.
- India and China will be the center of commerce
- Middle East will be the center of increasing attention
- The Internet will be threaten and will have to transform
- Savings and recycling will be fashion
- Water will be abundant in the ocean and submerge coastal places but drinking and agricultural water will be scarce.
- Gardens will turn to deserts
- Radical Natural disaster like earthquakes will increase in frequency and size of diseases will increase and spread rapidly.

USA
- Frugality will be a virtue in fashion. Savings, personal gardens and meals.
- Desizing and Delevering will continue
- Nationalization of private industry
- Increased and extreme Regulation
- Interest rates will increase and so will inflation
- Taxes will increase in all areas.  State, Local, Federal- High fashion will also replace the Funky dress code
- Money or cash as we see it today will dramatically change.
- Big will fight Small (Government will fight private and Big will continue to be in bed with the Government)
- Anger will turn into action.
- Riots, Social unrest and Natural Disaster will increase in size and regularity
- Food will be more desired and worth more than other hard assets

ASIA
- Control economy will begin decentralizing in 5 years.
- Self-sustaining and internal consumption and inter-regional trade will grow
- Anti-Sentiments and Anti-Immigration will increase against Asian countries by the desizing Western world.

BUSINESS TRENDS
- Anti-depressing biz, alcohol, feel-good and entertaintment
- Organics and wholistic programs (vitamins, alternatives medicines)
- Personal Health and stay fit programs
- Savings and Living frugally them
- Wholistic Healthcare with a trend away from big pharma costly patented prescriptions (however expect fight back by government in aid of pharma)
(Not to brad but many of my Tai Chi students have not had a flu for over 10 years and my step mother who is 92 does not have degerative diseases such as cholesterol nor diabetes nor obesity although she still eats 4 dishes and 1 1/2 bowl of rice 3 times a day).
- The use of Technology for low tech biz
- Some innovation will replace the old ways.

All these I expect will occur within the next 2-5 years and its effect will remain for the next 18 years.  (22 minus 4).

The Leadership of One Man Changed History for the USA and the World

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He was an architect of modern tank warfare who understood history and had a strong belief in the bible.

He transformed a defeated and demoralized American army in North Africa into a force that defeated the most brilliant military leader of Nazi Germany, Erwin Rommel – “The Desert Fox”.

He successfully invaded Sicily with few casualties ahead of the British army under General Montgomery.

His breakneck assaults across France and into Germany liberated more towns than any other unit in the history American army.

His feared name alone forced Hitler to change his strategy and lose a critical battle.

His already exhausted and under supplied troops after a 90-day march led the victory Battle of Bulge critical in turning the world war around.

His 3rd Army obeying his leadership captured the most 1.2 million POW between Aug 1 1944 and May 13 1945 (7 months), more than any other troops in the history of American war.

He was above all an impatient man who did not care for any excuses just results.  If anything or anyone got on his way, he will get rid of them immediately.

His leadership belief are:
- Give orders not suggestions.
- Making a bad decision is acceptable for a leader – indecision is NOT.
- An effective leader speaks the common language of the soldier
- There is no perfect timing, imperfect action is acceptable – delays are not.
- Hesitation in making a decision is always worst than acting too soon.

The qualities of a Great General:

- Tactical Aggression (love to fight and take action)
- Strength of Character (insult or reprimands have no effect)
- Steadiness of Purpose
- Acceptance of Responsibility
- Energy
- Good Health

This man was General George S. Patton Jr.

February 25 2010 Gann day – Equity Breaks Corrrection to Continue Downtrend

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Today according to our research is the day something dramatic happens.  I picked this day following the 1927 March 14 financial crisis in japan that triggered a lack of confidence worldwide and started a crisis moves.  Today is an important day.

As predicted, the upward corrective channel since the low of Feb 5, 2010 has now broken down.  In the 720min chart below you can clearly see we received a signal to enter a SHORT long term on a potential breakdown on Feb 23, 2010.

Then on a 320min chart, you can see the channel that the corrective action was taking place.  Then you can see how the channel has been now broken.

You can also notice the MACD has responded quite consistently.  The prior low of Feb 2, MACD gave a negative divergence signaling Wave 5 action which completed and followed by a zigzag correction into the channel.  Now MACD is moving toward zero (0).  The long down move still working its way from little wheel to bigger wheels as it unfold.  February 28 is the FULL moon.

On the 60 minutes chart, we can see that the MACD has already crossed to below 0 and is now retesting from below.  Consumer confidence world wide has been deteriorating from 60 down to 40.

Prices now are resting at 68% of fibonacci of the corrective upmove.  Once it breaks.  It should bounce to form a double top and once prices break below the 50% the trend will be considered officially over.  I would expect speed to increase as we approach FULL MOON.

World GDP 2008-2009

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I wanted to leave a record of the World GDP here for comparizon later.

This is from the IMF.  There are also GDP lists from the CIA WorldFacts Book and the World Bank.

2008 List by the International Monetary Fund[1] 2008 List by the World Bank[2] 2009 List by the CIA World Factbook[3]
Rank  ↓ Country  ↓ GDP (millions of USD)  ↓
World 60,917,477[4]
European Union 18,387,785[4]
1 United States 14,441,425
2 Japan 4,910,692
3 China 4,327,448h
4 Germany 3,673,105
5 France 2,866,951
6 United Kingdom 2,680,000
7 Italy 2,313,893
8 Russia 1,676,586
9 Spain 1,601,964
10 Brazil 1,572,839
11 Canada 1,499,551
12 India 1,206,684
13 Mexico 1,088,128
14 Australia 1,013,461
15 South Korea 929,124
16 Netherlands 876,970
17 Turkey 729,983
18 Poland 527,866
19 Indonesia 511,765
20 Belgium 506,183
21 Switzerland 500,260
22 Sweden 478,961
23 Saudi Arabia 469,462
24 Norway 451,830
25 Austria 414,828
26 Republic of China (Taiwan) 391,351
27 Greece 357,548
28 Denmark 340,029
29 Iran 335,233
30 Argentina 324,767
31 Venezuela 319,443
32 South Africa 276,764
33 Thailand 273,313
34 Finland 271,867
35 Ireland 267,579
36 United Arab Emirates 262,150
37 Portugal 244,640
38 Colombia 240,832
39 Malaysia 221,606
40 Czech Republic 216,354
Hong Kong 215,354
41 Nigeria 207,116
42 Israel 202,101
43 Romania 200,074
44 Singapore 181,939
45 Ukraine 179,604
46 Chile 169,458
47 Philippines 166,909
48 Pakistan 164,557
49 Egypt 162,617
50 Algeria 159,669
51 Kuwait 158,089
52 Hungary 155,930
53 Kazakhstan 135,601
54 New Zealand 128,409
55 Peru 127,462
56 Qatar 102,302
57 Slovakia 95,404
58 Iraq 91,453
59 Libya 89,916
60 Vietnam 89,829
61 Morocco 88,879
62 Angola 83,384
63 Bangladesh 81,938
64 Croatia 69,332
65 Belarus 60,288
66 Sudan 57,911
67 Luxembourg 54,973
68 Syria 54,803
69 Slovenia 54,639
70 Oman 52,584
71 Ecuador 52,572
72 Bulgaria 51,989
73 Serbia 50,061
74 Lithuania 47,304
75 Azerbaijan 46,378
76 Dominican Republic 45,597
77 Tunisia 40,348
78 Sri Lanka 39,604
79 Guatemala 38,956
80 Latvia 34,054
81 Uruguay 32,262
82 Kenya 30,236
83 Costa Rica 29,828
84 Lebanon 28,939
85 Uzbekistan 27,918
86 Burma 27,182
87 Yemen 27,151
88 Ethiopia 25,658
89 Cyprus 24,943
90 Trinidad and Tobago 24,806
91 Cameroon 23,243
92 Côte d’Ivoire 23,508
93 Estonia 23,232
94 Panama 23,088
95 El Salvador 22,115
96 Bahrain 21,236
97 Tanzania 20,721
98 Jordan 20,030
99 Bosnia and Herzegovina 18,469
100 Equatorial Guinea 18,525
101 Iceland 17,549
102 Bolivia 17,413
103 Ghana 16,124
104 Paraguay 16,006
105 Brunei 14,553
106 Uganda 14,529
107 Gabon 14,519
108 Jamaica 14,397
109 Senegal 13,350
110 Zambia 14,323
111 Honduras 14,126
112 Botswana 13,461
113 Albania 12,964
114 Georgia 12,870
115 Nepal 12,698
116 Afghanistan 12,061
117 Armenia 11,928
118 Democratic Republic of the Congo 11,589
119 Cambodia 11,182
120 Republic of the Congo 10,774
121 Mozambique 9,654
122 Madagascar 9,254
123 Macedonia 9,569
124 Mali 8,783
125 Mauritius 8,738
126 Namibia 8,456
127 Chad 8,390
128 Malta 8,338
129 Burkina Faso 8,103
130 Papua New Guinea 8,092
131 The Bahamas 7,463
132 Haiti 6,952
133 Benin 6,940
134 Nicaragua 6,350
135 Moldova 6,124
136 Niger 5,379
137 Laos 5,260
138 Mongolia 5,258
139 Tajikistan 5,135
140 Kyrgyzstan 5,049
141 Montenegro 4,822
142 Guinea 4,542
143 Rwanda 4,459
144 Malawi 4,268
145 Barbados 3,682
146 Fiji 3,590
147 Mauritania 3,161
148 Togo 2,890
149 Swaziland 2,843
150 Suriname 2,415
151 Central African Republic 1,997
152 Sierra Leone 1,955
153 Cape Verde 1,723
154 Lesotho 1,620
155 Eritrea 1,476
156 Belize 1,381
157 Bhutan 1,368
158 Maldives 1,259
159 Antigua and Barbuda 1,256
160 Guyana 1,130
161 Burundi 1,097
162 Saint Lucia 1,025
163 Djibouti 982
164 Liberia 836
165 Seychelles 834
166 The Gambia 808
167 Grenada 639
168 Saint Vincent and the Grenadines 601
169 Saint Kitts and Nevis 555
170 Vanuatu 573
171 Samoa 537
172 Comoros 532
173 East Timor 499
174 Solomon Islands 473
175 Guinea-Bissau 461
176 Dominica 364
177 Tonga 258
178 São Tomé and Príncipe 176
179 Kiribati 137
Rank  ↓ Country  ↓ GDP (millions of USD)  ↓
World 60,587,016
1 United States 14,204,322
Euro symbol.svg Eurozone 13,565,479a
2 Japan 4,909,272
3 China 4,326,187
4 Germany 3,652,824
5 France 2,853,062b
6 United Kingdom 2,645,593
7 Italy 2,293,008
8 Brazil 1,612,539
9 Russia 1,607,816
10 Spain 1,604,174
11 Canada 1,400,091
12 India 1,217,490
13 Mexico 1,085,951
14 Australia 1,015,217
15 South Korea 929,121
16 Netherlands 860,336
17 Turkey 794,228
18 Poland 526,966
19 Indonesia 514,389
20 Belgium 497,586
21 Switzerland 488,470
22 Sweden 480,021
23 Saudi Arabia 467,601
24 Norway 449,996
25 Austria 416,380
26 Iran 385,143
27 Greece 356,796
28 Denmark 342,672
29 Argentina 328,385
30 Venezuela 313,799
31 Ireland 281,776
32 South Africa 276,764
33 Finland 271,282
34 Thailand 260,693
35 Portugal 242,689
36 Colombia 242,268
37 Czech Republic 216,485
Hong Kong 215,355
38 Nigeria 212,080
39 Romania 200,071
40 Israel 199,498
41 Malaysia 194,927
42 Singapore 181,948
43 Ukraine 180,355
44 Algeria 173,882
45 Chile 169,458
46 Pakistan 168,276
47 Philippines 166,909
48 United Arab Emirates 163,296
49 Egypt 162,818
50 Hungary 154,668
51 Kazakhstan 132,229
52 New Zealand 130,693
53 Peru 127,434
54 Kuwait 112,116
55 Libya 99,926
56 Slovakia 94,957
57 Vietnam 90,705
58 Morocco 86,329
59 Angola 83,383
60 Bangladesh 78,992
61 Croatia 69,332
62 Belarus 60,302
63 Sudan 58,443
64 Syria 55,204
65 Slovenia 54,613
66 Luxembourg 54,257
67 Qatar 52,722
68 Ecuador 52,572
69 Serbia 50,061
70 Bulgaria 49,900
71 Lithuania 47,341
72 Azerbaijan 46,259
73 Dominican Republic 45,790
74 Sri Lanka 40,714
75 Tunisia 40,180
76 Guatemala 38,977
77 Oman 35,729
78 Kenya 34,507
79 Latvia 33,783
80 Uruguay 32,186
81 Costa Rica 29,834
82 Lebanon 28,660
83 Uzbekistan 27,918
84 Yemen 26,576
85 Ethiopia 26,487
86 Trinidad and Tobago 23,898
87 Côte d’Ivoire 23,414
88 Cameroon 23,396
89 Estonia 23,089
90 Panama 23,088
91 El Salvador 22,115
92 Cyprus 21,277
93 Tanzania 20,490
94 Jordan 20,013
Macau 18,599
95 Equatorial Guinea 18,525
96 Bosnia and Herzegovina 18,452
97 Turkmenistan 18,269
98 Bolivia 16,674
99 Iceland 16,658
100 Ghana 16,123
101 Paraguay 15,977
102 Bahrain 15,828
103 Jamaica 15,068
104 Uganda 14,529
105 Gabon 14,435
106 Zambia 14,314
107 Honduras 14,077
108 Senegal 13,209
109 Botswana 12,969
110 Georgia 12,793
111 Nepal 12,615
112 Albania 12,295
113 Armenia 11,917
114 Democratic Republic of the Congo 11,588
Channel Islands 11,515
115 Brunei 11,471
116 Republic of the Congo 10,699
117 Afghanistan 10,170
118 Mozambique 9,735
119 Cambodia 9,574
120 Macedonia 9,521
121 Madagascar 8,970
122 Mali 8,740
123 Mauritius 8,651
124 Namibia 8,564
125 Chad 8,361
126 Papua New Guinea 8,168
127 Burkina Faso 7,948
128 Malta 7,449
129 Haiti 6,953
130 The Bahamas 6,935
131 Benin 6,680
132 Nicaragua 6,592
133 Moldova 6,048
Bermuda 5,855
134 Laos 5,431
135 Niger 5,354
136 Mongolia 5,259
137 Tajikistan 5,134
138 Montenegro 4,521
139 Rwanda 4,457
140 Kyrgyzstan 4,420
141 Malawi 4,269
142 Guinea 4,266
143 Fiji 3,527
Isle of Man 3,437
144 Zimbabwe 3,418
145 Barbados 3,409
146 Suriname 2,881
147 Mauritania 2,858
148 Togo 2,823
149 Swaziland 2,618
150 Central African Republic 1,970
151 Sierra Leone 1,953
152 Cape Verde 1,730
153 San Marino 1,703
154 Eritrea 1,654
155 Lesotho 1,622
156 Belize 1,367
157 Bhutan 1,359
158 Maldives 1,260
159 Antigua and Barbuda 1,225
160 Burundi 1,163
161 Guyana 1,158
162 Saint Lucia 1,011
163 Djibouti 875
164 Liberia 870
165 Seychelles 833
166 The Gambia 782
167 Solomon Islands 647
168 Grenada 638
169 Saint Vincent and the Grenadines 594
170 Vanuatu 574
171 Saint Kitts and Nevis 540
172 Comoros 530
173 Samoa 523
174 East Timor 498
175 Guinea-Bissau 430
176 Dominica 364
177 Tonga 264
178 Micronesia 247
179 Palau 182
180 São Tomé and Príncipe 175
181 Marshall Islands 158
182 Kiribati 131
Rank  ↓ Country  ↓ GDP (millions of USD)  ↓
World 57,530,000
European Union 15,990,000
1 United States 14,270,000
2 Japan 5,049,000
3 China 4,758,000
4 Germany 3,235,000
5 France 2,635,000
6 United Kingdom 2,198,000
7 Italy 2,090,000
8 Brazil 1,482,000
9 Spain 1,438,000
10 Canada 1,319,000
11 Russia 1,255,000
12 India 1,243,000
13 Australia 920,000
14 Mexico 866,300

The IMF 2008 numbers are as follows:

World 60,917,477[4]
European Union 18,387,785[4]
1 United States 14,441,425
2 Japan 4,910,692
3 China 4,327,448h
4 Germany 3,673,105
5 France 2,866,951
6 United Kingdom 2,680,000
7 Italy 2,313,893
8 Russia 1,676,586
9 Spain 1,601,964
10 Brazil 1,572,839
11 Canada 1,499,551
12 India 1,206,684
13 Mexico 1,088,128
14 Australia 1,013,461

What The Tao Teh Ching Teaches

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I received some questions about Chapter 1 of the Tao Teh Ching.  I will elaborate as best as possible below:

Question #1: The problem (from my point of view) is that this subject (Taoism) is not easy to understand, making it difficult to even formulate a question.

Yes, the title of the book and the flowering content is sometimes considered misleading.  It is only easy to understand after you have acquired wisdom and can interpret its cryptic code.  The surface also appears to sound nice and mysterious but you have to study and interpret it.  Many ancient books are like to to hide secrets away from people who do not deserve the knowledge.  The flowery content makes everyone coming over and over to read it because it sounds pleasant and mysterious.  Yet is not easy to understand for the common person because it is not meant to be easy on the first try in order to discourage most people.  (it was not meant for everyone only for the selected few).

What Chapter 1 does tell you is how to prepare to develop that ability to foretell and find the “secrets” inside that text but not only the Tao Teh Ching text but the “secrets” around your universe.  Once you develop that ability, is as if a new world reveals itself.  I know for myself since I can now see more beyond and more into the future than before and see more the real truth beyond most people.  (But there are people that are better as well and any person understanding certain principles can also obtain it.  That is what Chapter 1 prepares you for.

The last extension of the question is a side note.  “Is that this subject (Taoism) my good disciple says…  The word Taoism needs to be carefully discussed here since some relate it to a religion.  The Tao Teh Ching (to my belief) does not promotes any religion and I would not even consider it remotely related to the religion some call Taoism (although some unwise people would bend facts to say it does for their benefits).  We are not discussing religion here.  We are referring to a tool left by very wise people for posterity for people of worthy cause to find secrets and develop into complete human beings and the the maximum of their destined abilities.

Question #2: Looking at it in the context of Tai Chi, one question I have (my good disciple asks) is regarding the statement, “If always desirous, one sees merest traces.” How does this relate to the “desire” to learn Tai Chi? Doesn’t one need the “desire” in order to learn? If we are desirous, will we end up learning mere traces of  Tai Chi and not the real Tai Chi? How does one know if what you have learned is just “traces” or if it’s real? Or have I completely misinterpreted this passage?

First, I see the Tao Teh Ching as a tool to complement the study of Tai Chi.  When I say Tai Chi I refer to the teachings embodied in the Tai Chi form of exercise.  The Tao Teh Ching becomes the intellectual tool to complement the written classics of Tai Chi the exercise.  (part of which I quoted in my prior posting called “ What is Taiji (Tai Chi), Really?“.

Next I will break down Question #2 into separate parts and provide answers as best I can.  The question refers to the statement “If always desirous, one sees merest traces”:

How does this relate to the “desire” to learn Tai Chi? Without desire you cannot accomplish anything difficult.  Tai Chi is difficult.  You do need that desire to achieve.

Doesn’t one need the “desire” in order to learn?exactly correct as said above.  You need desire to pursue a worthwhile and difficult task.  (I hereby emphasize the words “WORTHWHILE” and “DIFFICULT”.  You can consume your energy for non-worthwhile tasks that are also difficult and lose time and focus which could be used in the pursue of something more long term of value). However after achieving your goal, you can no longer pursue it with desire.  Is like an artist after completing its creation, it destroys it in order to not be attached to it.  (Only when you do this, you will seek for a higher goal.  If now you will forever be attached to that level and stay there enjoying yourself and not progressing).  Again, “Desire” is a tool to be used but only used for worthy things.  (hopefully Chapter 1 teaches you what you consider to be worthy – ie non-material and things are truly lasting.  No food, not clothing, not a TV set…something more valuable for you).  Later in the Tao Teh Ching, it refers to the fact that the wise person after achieving its goal, he “retires”, meaning gives away and stop working in seeking the goal, in other words stops using “Desire”.  I hope I have explained how Desire is a tool.

The Tao Teh Ching later on goes by clarifying that the only Desire you are suppose to have is the “Desire to Discover the Tao”.  So this may sound to some people contradictory (and many subjects in the Tao Teh Ching and Tai Chi as well are contradictions.  Here is where you learn that contradictions are also powerful tools.  This is for future discussion).  So, again, Desire must be used for valid purpose.  Using your Desire to accomplished things that have limited value will waste energy and time.

If we are desirous, will we end up learning mere traces of  Tai Chi and not the real Tai Chi?” You now know that you need Desire for anything worthwhile and difficult.  Tai Chi is worthwhile and is difficult so you need desire.  And if you have the right teachings you will learn the real Tai Chi.  That is why is important to have the proper transmission from an authoritative source.  I am most gratefull for the rest of my life to the teaching of my master teacher Professor Hu Yuen Chou.  But I also had the tremendous desire and I worked very hard and spent a lot of time and sacrifice to study and seek.  I certainly used a lot of Desire to pursue real Tai Chi.

How does one know if what you have learned is just “traces” or if it’s real?Tai Chi teaches to accomplish things with least effort following the Natural Law.  Assuming you have no modern facilities, no cars, no motors, how to use 4 ounces to deflect a force of 1,000 pounds?  When you do push hands you are trying each time to do the same with less effort.  Then you learn you can accomplish the same without any effort.  How to deflect 1,000 pounds without effort? not even 4 ounces?

If you are accomplishing that and getting better you are moving in the real direction.

What are traces.  Hopefully by now you can tell of a incorrect Tai Chi motion performed by many common practitioners.  Perhaps you can look at the physical movement of other people and tell they are using unnecessary force to do things and thus get injured.  If you have practiced Tai Chi with the right person and continue training and studying and asking and searching, you will arrive at the true destination, and the Tao Teh Ching serves as the guide.  (Read it once, keep reading, and 5 years later bring it out to compare again to see if you are still following its guidelines).  The same with Tai Chi every day make a Tai Chi movement and make sure you remind yourself to keep the ligaments stretched and how to use least force to get moving.

The exercise I demonstrate in class of how to move an object like a chair from one place to the other with least work and effort.  Hopefully you can also in your daily routine automatically unconsciously do effortless things and the realized later you did it differently and easier than before.  You can begin seeing that you are thinking and doing things other ordinary people have more difficulty doing or using more force doing.

Best way is to teach a new student who has never done Tai Chi.  See how ackward the movements are.  How undeveloped their muscles are and how undeveloped their knowledge is.  Also discussing Tai Chi with other apparent Tai Chi people including so called masters and experts.  Especially the charlatan ones.  You then begin to see thru the fault of others how your wisdom and true knowledge is developing.

The ultimate test will be to ask if the action follows the Natural Laws of the Universe.  This only means nature is your best teacher.

Today we have a lot of clutter and things that creates smokescreen in front of us and clouds the vision of what is real and what is not.  It becomes more important to pursue true knowledge.

Tai Chi Chuan, the exercise of Tai Chi, trains the physical body and develops the muscles of the mind to be able to receive deeper knowledge.  It is up to each individual to put it to practice.  Desire becomes a tool to not let go and continue your pursue, develop martial skills, body strength, mental discipline and give you the foundation to receive the knowledge.

I want to close by saying, the knowledge comes to you naturally but you have to have the body and mind prepare to have it flow into you.

To prove my point above using myself as the laboratory.  Many people rely on cosmic and obscure tools and fortune tellers that on their own needs profit and fool people that enjoy the “traces“.  Many of my students and family knows I have been making simple predictions over the past 8 years which now has manifested as facts now including the collapse of real estate and the stock market.  (Never did I knew how major it was going to be).  Now I will tell you on record that in the next few years from 2010 there will be major food shortages and pestilence and the rate of earthquakes will increase until the major war completes.  People will turn against people, government will turn again people.  After this period completes with the major war, peace will return for 50 years but before major disaster complete.

This is the Natural Law of the Universe reacting to the major consumption of yin resources oil and gas and material of the past 50 years and that now will lead to a reaction in yang energies in order to achieve balance.

Thru this period, practicing Tai Chi and meditating on the words of the Tao Teh Ching will bear you fruits and even prepare for it and for some others even benefit from transforming negative yang energy into positive yin energy.

Tao Teh Ching – Chapter 1

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Chapter 1 prepares you for the seek for wisdom and true knowledge rather than just ordinary knowledge.

I am using quotations from Lao-Tzu: “My words are very easy to understand” by Man-jan Cheng.

The Tao Teh Ching or Dao De Jing (simplified Chinese: 道德经; traditional Chinese: 道德經; pinyin: Dàodéjīng) is easy to understand but not to decipher.  Below are transmission I received from my Master.

Chapter 1: “The Tao that can be said (described)  is not the everlasting Tao.  A name that can be named is not the everlasting Name.

The word Tao (Dao or 道) means path or road.  It also implies a destination like Nirvana or a state of enlightenment.

This Chapter 1 phrase above says, that there is a true tao but it may not be the one most people are talking about and telling you. Neither is the one where a name is given.  Beware of the ordinary Tao that others say they know and you decide to follow and learn from them.  (Beware of ordinary knowledge).

This beginning statement is very important because if you start with the wrong knowledge it will take years or decades or a lifetime to undo your thinking.  If you have the wrong knowledge, is like getting into the wrong path or road, you will likely end up in the wrong place.  Start by seeking the right knowledge and the knowledge that can lead you to the right path (Tao).

Also, anything you say can be misunderstood and misinterpreted.

Another way of summarizing the above is: “Beware of inferior and ordinary knowledge”, “You cannot describe the real Dao”. (ie you have to experience it, you have to internalize it.  When you have it you will know).

“That which has no name is the origin of heaven and earth”.

Here the author is using the words no-name to mean the true Tao (which you cannot describe and give a name).  So you read it as “That which is the Real Dao is the origin of heaven and earth.  (This implies ENERGY).

That which has a name is the Mother of all things”. So this is understood as the things that can be described and given a name and you can see (MATTER), is the origin of things.

The following is a cryptic paragraph which if you understand how it is arrived you can encrypt much of the book (provided you have been trained in an internal martial art like Taiji – Tai Chi).

Thus, if always without desire, one can observe indescribable marvels; (take not of the words INDESCRIBABLE MARVELS for later reference).

“If always desirous, one sees merest traces.”

Indescribable Marvels = cannot be described = cannot be said = Tao (ie. you can see the Dao and its manifestation, if you are always without desires).  But if you always have desires you only see the surface not the real thing.  (without desires and training you can see beyond what is in front of you, the real thing).

“Those two come from the same source but are differently named.” (“ENERGY and MATTER” come from the same origin but are name differently and have different functions but come from the same place – Taiji which comes from the state of Nothingness).

“Both are called Mysterious”.

“The mystery of the Mysterious is the gateway to all indescribable marvels.

The interpretation is that BOTH (what the “No name” and the “name” that leads to Tao and Traces are called MYSTERIOUS).  The word MYSTERIOUS is not used in the context of saying what it is but a name by itself.  It is not trying to say that both are mysterious but is saying that Both are called by MYSTERIOUS.  So next time you see MYSTERIOUS you replace it for BOTH. To be used in the next sentence.

“The mystery of the Mysterious is the gateway to all describable marvels”.

Ladies and Gentlemen, there you have it Chapter 1 has given you the secret to what is needed to find the Dao.

The mystery of the Mysterious.  ie the mystery and riddle of the Mysterious (who is the Mysterious?).

This is the sentence structure:

…the <X> is the gateway to <Y>.

INDESCRIBABLE MARVELS from above we said was Dao (Y) and the mystery of <X> is…?

The mystery (the secret) to <Dao> is…?

The MIND!

By understanding what is said in the above Chapter 1, the seeker is told that the secret to obtaining wisdom and superior knowledge (true knowledge and not ordinary knowledge) begins in understanding that the Mind must be developed, nurture, prepared and protected above all!


Baltic Index Decline

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The Baltic Index as mentioned in prior post has declined further to 2,575.

The down move has already broken a trendline.

Also, the equity as seen by the Dow Jones is now retraced to the EMA13.  A move down is likely in the next day or so.  (Tomorrow is lunar year).

In the background to complete the picture, the key 1-year interest rate notes is moving back up after a small retracement move.

In this next chart we can clearly see the direction of the trend on the TNX.

China Electricity as Economic Indicator

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I learned that governments and companies tell people what they want to hear but not necessarily the fundamental information.  However, if you say the economy is growing in this modern era you need eletric power to propel that growth.  So, information on electrical usage can confirm and even give insight of economic growth.

Here is a report by Bloomberg about China’s electric power usage.

China January Power Use Gains 40% as Economy Recovers (Update1)
By Bloomberg News

Feb. 12 (Bloomberg) — China’s January electricity consumption jumped 40.1 percent from a year earlier as an economic recovery in the world’s second-biggest power producer spurred demand from factories.

Power use reached 353.1 billion kilowatt-hours last month, 2.7 percent higher than in December, the Beijing-based National Energy Administration said on its Web site today. Consumption by secondary industries, which includes manufacturing and construction, grew 46 percent to 262.4 billion kilowatt-hours.

China’s power consumption may rise 9 percent this year, 2 percentage points more than in 2009, the state-owned China Electricity Council said on Jan. 26. The Chinese economy, which expanded at the fastest pace in the fourth quarter since 2007, will increase four times faster than the U.S. in 2010, the United Nations said in December.