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The Economy is Booming, but Troubling Signs Loom

Guest Piece by Lior Gantz of FutureMoneyTrends

In the past few days, markets have been SPIRALING upwards. In fact, the average person feels GREAT about the economy, about his workplace, about his portfolio and about American dominance.

This happens to coincide with the most overbought stock market conditions in history.

As you know, as long as central banks keep lowering interest rates, there’s no reason to assume that stocks will crash in a major way or go sideways. Investors have ZERO alternatives, compared with the power of American businesses that are growing at a pace of 6%-8% a year, and pay dividends on top of it.

In the short term, though, Wall Street is SELLING and it will continue taking profits, so we might need to wait 3-4 more weeks for sentiment to turn bearish, before getting aggressive again.

Just look at the bullishness of Main Street America:

Courtesy: Zerohedge.com

Fundamentally, America’s economy is truly BOOMING. Many millions, though, still have NO CHANCE of joining the prosperous landscape, but advancements have been noticeable in the past three years.

For example, the bottom 50% of wage-earners have seen a 47% increase in compensation. That’s more than what the top 1% have enjoyed during the Trump era.

Many families have risen back to middle class status and many others no longer need food stamps.

Of the 60,000 factories that were either closed or outsourced in the past 20-30 years, 12,000 new ones are operating on U.S. soil and many more are planned or are getting built.

The USMCA, which replaced NAFTA (that cost America 25% of its manufacturing labor force), is forecasted to create 100K new high-paying jobs.

And, so, the problem is CLEAR AS DAY: Trump’s tax cuts, deregulation, trade negotiation, new legislation and aggressive initiatives are working for the private sector and unleashing the free enterprise system, but the DEFICITS are just STUPIDLY increasing.

You can see this disaster by checking out the debt/GDP ratio:

Courtesy: Zerohedge.com

In his State of the Union Address, Trump specifically mentioned that Washington will not default on its Social Security promises. What this means is that the government will have to RESORT to other measures to fund its ATOMIC national debt, going forward.

So, while 50 million Americans watched Trump’s speech and his approval ratings hit all-time highs, Wall Street is cashing out for a bit.

The big players did the same thing in February ‘17, January ‘18 and February ‘19. Computer Traded Algorithms and large funds move the markets; if you’re bullish, you are playing with fire.

Another sign that the mom-and-pop investors have gone BERSERK is this:

Courtesy: Zerohedge.com

Many “EXPERTS” have gone bankrupt or have caused other investors to LOSE FORTUNES, by pounding the table that TSLA should be shorted.

Jim Rogers offered up the best advice on shorting manias: markets stay irrational more than you can stay solvent. In other words, he has warned investors that fundamentals don’t matter in times of manias.

This isn’t the only sign of trouble. On Tuesday, I issued a trading warning on gold and it crashed just minutes later.

I still analyze gold’s sentiment as TOO-BULLISH:

Courtesy: Zerohedge.com

The S&P 500 companies are currently reporting earnings and seven out of ten are BEATING expectations. It seems like the economy is better than most believe it is, which is the reason that companies that focus on consumers are BREAKING RECORDS.

We’ve capitalized on this and will continue to cover this topic.

In his SOTU address, Trump also highlighted healthcare and the need to have a healthy country, full of educated citizens.

That’s a huge opportunity – millennials are the most health-driven generation in America’s history!

 

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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Has the Fed Created a Stock Market Bubble?

There you have it; the World Economic Forum is meeting in Davos and all the billionaire investors and hedge fund managers are talking about is the fact that the Federal Reserve is behind the MARKET’S PARABOLIC surge.

The commentary coming out of there is textbook Wealth Research Group material. I want to show you today why the real question you must be asking yourself is whether you’re a LONG-TERM investor, viewing the world like Warren Buffett does, or if you’re a trader, viewing it like billionaire investor Paul Tudor Jones.

The reason I say this is because if you’re an investor, your options are truly limited, few and far between and offer little in the way of extraordinary compounding opportunities, at the moment.

Buffett isn’t sitting on $128B in cash because he has liquidated his portfolio; a long-term investor will NEVER sell equities or ownership stakes in great businesses, bought at good prices, simply because markets are due for a big shakeout.

The way he accumulated this cash position was simply by shying away from making new allocations, whenever profits came in and piled on. I’ve done something similar and now I’ve stuffed the equivalent of 40% of my stock portfolio into the brokerage account as cash.

For every $3 that is invested, $2 is on the sidelines, as liquid cash.

The difference between Berkshire Hathaway’s famed mega-billionaire investor and myself is that I’m also diversifying out of long-term dividend plays and into precious metals, private lending, small-cap stocks and real estate.

The reason is that NO ONE has any idea for how long the Federal Reserve and the other top central banks will continue to POUR trillions of dollars in liquidity into markets.

Courtesy: Zerohedge.com

As you can see, the smart money’s holdings represent a HUGE paradox. On the one hand, they are certain the markets are in a bubble, GROSSLY overpriced, compared with fundamentals. On the other hand, as David Tepper, the billionaire hedge fund mogul and owner of the Carolina Panthers says: “I like riding horses, when they’re running.”

The lesson is clear: IF there’s a bubble – BUT there’s also enough time to jump off the train and not take part of the collision – then 2020 is a time to make SENSATIONAL returns.

In the chart above, you can see that highly experienced investors are betting that the FED will not let the economy contract, if they can help it. They will intervene in the Repurchase Operations (Repo), pump liquidity via QE4 and let inflation run hot, if the consumer gets stronger.

Officially and unequivocally, we are investing in a U.S. stock market that is overly bullish, where investors are buying stocks out of a lack of alternatives, where profits signal that corporations can’t extract more earnings (for the time being), and where leverage is already at a record.

The billionaires’ bet is that there is still a 30%-40% return to be made before the peak is reached. Therefore, you need to be asking yourself if you are IN OR OUT and how much you will be risking.

Take a look at this beautiful chart:

Courtesy: Zerohedge.com

The uptrend is CERTAINLY in place!

As you can see, in 2011, the last mania for gold, the price was 2.3 times above the trend-line support. To replicate that, the price will have to reach $2,750/ounce.

There’s so much more TORQUE to this move and the Davos billionaires are UNUSUALLY bullish. Ray Dalio’s firm leads the bull camp, with Paul Tudor Jones, Guggenheim Fund LONG silver, David Einhorn and Stanley Druckenmiller, among the gold crowd.

The CHIEF reason that they’re now forecasting a breakout into the $1,800’s and above is that they BELIEVE central banks have been cornered into never tightening again.

After the 2013 tantrum and the December 2018 one-month bear market, the verdict is out: Jerome Powell has WEASELED OUT of his promise to normalize rates, and from here on, all the FED can really do is hope the markets don’t become bent out of shape again, forcing more drastic measures.

The FED is like a chef, who’s already poured too much SALT into the soup. Instead of admitting the error, throwing it away and starting anew, he continues experimenting with the recipe, assuring a RECALL.

Courtesy: Zerohedge.com

I have so much more to publish this coming Tuesday on the matter, so I want to present two more important charts that prove that stocks are now, same as other assets, a way to be allocated into anything that isn’t cash.

For one, look at the crashing confidence levels of consumers regarding the economy and the jobs market; this is not LOOKING GOOD.

In an economy that is 69%-based on services and consumerism, this is unacceptable.

But it’s not only that; the DISPARITY between valuations and what corporations are worth is HUGE.

Truly, central banks have distorted pricing mechanisms and everyone is in the BLAST RADIUS.

 

 

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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Lior Gantz: Stocks are Over-Bought, Time to Hedge With Commodities

Guest Piece by Lior Gantz of Future Money Trends

Every two or three weeks, I see another article published on how Warren Buffett’s holding company, Berkshire Hathaway, is underperforming the S&P 500 and how his cash pile of over $128B is a giant waste – since it could be making his shareholders a fortune, had it been invested in this late-stage bubble surge.

While that’s temporarily true, it is also important to remember that Buffett isn’t a stock investor; he is a business owner who seeks to own portions of businesses, purchasing their equity when the rate of compounding could be uniquely high, holding them forever, not for short periods of time.

For that to occur, for a company that grows at 8%-10% over time and yields a 2%-3% dividend, to compound at a rate of 16%-19% (TWICE as fast as the S&P 500), you have to PAY a fair price or BELOW that. This is what Warren Buffett has succeeded at locating in his 60-yr career – a company that, on average, compounds at 12% will only return 16%-19%, if they buy it CHEAP.

Right now, that’s simply not possible to do. While it is true that if one buys more of the S&P 500 index today, he is almost guaranteed to make money over time and will certainly be able to generate an above-inflation return over a period of 10-15 years, he could also WAIT and make much more.

Sitting on cash isn’t popular or profitable, but if you have REASON TO BELIEVE that stocks are due for a 20%-50% downside crash, Dot.Com-bubble-burst-style or 2008-style, there’s a LEGITIMATE reason to be cashed-up.

Buffett isn’t the only billionaire or the only serially-successful, illuminated investor that is CAUTIONING the average person to stay clear of stocks at the moment. Howard Marks, who wrote the best investment book I’ve ever read, is also publicly warning about the expensive markets.

Here are a number of the charts and data points that they’re watching:

Courtesy: Zerohedge.com

For one, if this analog continues to mirror the 1999-2000 period, in 3-4 months the markets will PEAK, followed by a MORE THAN 50% crash.

The S&P 500 index is currently trading at the highest gap above its 200-DMA since January 2018, right before it underwent a 10% correction. The S&P 500 is now also running on fumes, since for 2 months and 10 days, it hadn’t SUFFERED a -1% daily loss. This very much resembles the 2018 era, right before the -19.2% bloodbath, when that -1% daily loss streak lasted nearly four months.

Not only is the S&P 500 historically OVERBOUGHT, expensive and risky as hell; the NASDAQ is looking like a perfect bubble about to pop!

Take a look: the Relative Strength Index is as ALARMING as it was right before the Dot.Com burst and before the 2016 and 2018 corrections:

Courtesy: Zerohedge.com

The index isn’t comprised of penny tech stocks like back then, but the logic of putting new money into the index right now is, in my book, ALMOST non-existent. The risk/reward setup is totally biased against you.

If this is the case, and if all hedge funds, pension funds and self-managed accounts can see the writing on the wall, why are investors still LONG as they’ve ever been?

Before I get to answering that, notice how COMPLACENT buyers are, on top of being greedy – the VIX is sitting at all-time lows:

Courtesy: Zerohedge.com

The answer is that they’re POSITIVELY CONVINCED that the Federal Reserve, the European Central Bank and the Bank of Japan, as well as the People’s Bank of China, will do ANYTHING – absolutely ANYTHING – to avoid a recession. In fact, the first Wall Street billionaire has officially stated that the FED might even cut rates to ZERO.

This is not a gold bug that has been predicting doom and gloom for 40 years in a row, like a broken clock, and advising to build shelters in the hills; it’s a mainstream investor who is educated with the history and likelihood of such policies.

As I see it, interest rates under the dollar reserve currency system are NEVER going up again!

If we live in a world where bonds don’t generate any interest, then stocks become much more valuable, automatically; this is their main allure. This is the reason that sellers aren’t taking profits – where would they go for returns?

Courtesy: Zerohedge.com

The FED is already STIMULATING in irregular amounts and frequency in the past few months. In essence, it is acting as though it is fighting off a recession, but I remind you that U.S. unemployment rates are at half-century lows, the consumer is enjoying low debt burden and taxes have been cut. Logically, the central bank shouldn’t be embarking on stimulus plans in 2020, but it is.

All I can say is that stocks might be a DEATHTRAP; that is, traditional indices like the S&P 500, NASDAQ and Dow Jones are seriously ON THE PRECIPICE of something ominous.

In all such previous moments, in 2000 and in 2008, the commodities sector was the biggest winner of the HEDGING strategies that smart money implemented.

Courtesy: Zerohedge.com

Bitcoin is already having its BEST START to a calendar year and palladium, the 4th precious metal, is going PARABOLIC as well.

Bottom line, this is the most overbought market in history, which is in this shape – not due to strong fundamentals, but SOLELY thanks to the assumption that central banks will be PERFORMING MIRACLES to keep this from deflating.

It’s your call on how to address these facts and how to make money in a world that has clearly lost all risk aversion. In my case, I will continue to hedge by owning the HIGHEST-QUALITY resource stocks, which have already DOUBLED for us since June 2019.

Expect a very important alert from us this week.

 

That is all.

 

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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Not Done Yet: Trump Cooking Up Major Tax Cut Bombshell

Guest Piece by Tom Beck of Portfolio Wealth Global

In 2019, the Federal Reserve’s stimulus packages – which shocked the markets, since they represented a full U-turn in terms of policy, compared to the aggressive tightening in 2018 – were one of the primary reasons that the stock market soared by so much.

On multiple occasions throughout 2019, stocks hit new all-time highs. In the 4th quarter, this really intensified and reached historic rally levels. Stocks were green almost on a daily basis.

The FED’s balance sheet expansion is one of the major catalysts, as well as the pro-growth Phase 1 deal that China and the U.S. signed yesterday for the willingness of buyers to pay higher prices.

The result is that the stock market is now the most expensive ever, as far as price/sales ratio goes:

Courtesy: Zerohedge.com

This isn’t a good sign for stocks, nor for the economy, in general. To me, it means that these artificially-low interest rates are causing investment firms to purchase stocks, even though they don’t really want to, as well as prompting CFOs to issue large buyback programs over spending funds on machinery, research and growth.

The lack of viable alternatives for the trillions of dollars in managed money is creating a situation in which fund managers are acting out of necessity, not out of pure reasoning.

Warren Buffett, who isn’t under any pressure to make any moves, has patiently amassed an enormous cash position, which will surely serve shareholders when the time comes to buy big.

Courtesy: Zerohedge.com

As you can see, the FED is not trigger-shy on its unofficial QE4 plan.

Everyone’s been focused on this monetary easing, but the Trump administration is preparing a tsunami of fiscal stimulus in the form of another round of tax cuts for the middle class and lower-income demographics – and they plan to roll it out in 2020!

This means that, on top of the already $1.1T deficit, tax receipts are set to decline dramatically.

The monstrous economic engine, the boom in the markets, the low unemployment rate, the confidence of consumers; all of these are what Trump is banking on to get re-elected.

It seems Trump is looking to make all voters know, right around the time of elections, that he is ready to take drastic measures to let the free enterprise system work, by reducing taxes.

Obviously, if he is re-elected, he’ll have to focus on balancing the budget, which is a whole other major topic.

This week, the impeachment took another step towards the Senate, when the House voted to advance the two articles of impeachment to trial.

It’s coming and it’s happening during an election year. This is a very unique time in American politics, to say the least.

There are many moving parts here and it will be truly fascinating to see how the public reacts and follows these issues, at the same time as the Phase 1 deal taking effect and with the president’s economic advisor, Larry Kudlow, purposely leaking or teasing, as I see it, a Tax Cut 2.0 later this year.


Courtesy: Zerohedge.com

As you can see, Goldman Sachs views this as a time of very complacent behavior on the part of investors, who are not considering any potential loose ends with Iran, on the potential of complications on the impeachment front or backlash from the rollback of Repurchase Operations by liquidity-addicted investors.

You can truly notice the elevated risk appetite, when you look at the low yields that investors are willing to accept when lending money in the junk bonds segment.

It’s back to 2007 levels:

Courtesy: Zerohedge.com

It’s clear to see that people are feeling good, in general. Investors have their guards down and their radars turned off for Black Swan scenarios.

This doesn’t mean that anything imminent is coming, but what it does tell you is that most investors are willing to pay top dollar for their stocks.

It’s a good opportunity to scan the portfolio for any companies which may be receiving too much attention, and you can capitalize by taking profits, partially or totally.

Like I said, we live in an era that is dominated by central banks and we must factor that into our thoughts:

Courtesy: Zerohedge.com

Is this a scary-looking chart or what?

There’s no massive war or terrible crisis happening, yet central banks have put a chokehold on markets. In England, Japan, the European Union, in the states and around the globe, there is too much debt (compared with GDP) on the central bank and government level.

These sorts of things don’t unwind smoothly and with the proposed tax cuts later this year, the budget deficits look grim.

No solutions so far; the bubble intensifies.

 

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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Did Trump Just Deliver the Greatest Week of Economic WINNING in U.S. History?

Today’s Campaign Update, Part III
(Because The Campaign Never Ends)

Right on the heels of the completion of the Phase I Trade Agreement with China, the U.S. Senate overwhelmingly approved the new U.S./Mexico/Canada Agreement (USMCA) on Thursday. The approved bill now goes to President Trump’s desk for his signing, which will probably take place next week.

In a terrific interview on Fox Business today, White House Manufacturing Policy Advisor Peter Navarro called it “the greatest two days in U.S. trade policy history.” He isn’t wrong.

Below is a clip of the interview – since it has subtitles, I won’t include a transcript here.

In reaction to these two historic trade days, all stock market indexes closed yet again at all-time record highs. That’s a story that cannot be told often enough, but it was far from the only fantastic economic news that the fake, corrupt news media ignored today.

Here are some more extremely positive highlights, as reported at the People’s Pundit Daily:

  • Business Applications gained 3.4% in the 4th quarter of 2019; Projected business formations rose 4.5% compared to the 3rd quarter.
  • The advance estimates of U.S. retail sales for December was $529.6 billion, an increase of 0.3% (±0.4%) from November, and 5.8% (±0.7%) year-over-year.
  • The Philadelphia Fed’s Manufacturing Business Outlook Survey rose 15 points in January to 17, nearly six times the consensus forecast. Indicators for current activity, new orders, shipments, and employment were all positive and increased from December.
  • Initial jobless claims fell again, once again easily beating “expert” forecasts for the week ending January 11. We’re now at just 204,000 and it’s the monthly jobs report period, meaning the next jobs report could be big.
  • The Housing Market Index (HMI) finds builder confidence started the year very strong, shedding just one point from the month prior, the highest level since 1999.

Again, all of this incredible economic news will be largely ignored by the corrupt national news media as it focuses all of its efforts on supporting the Democrats’ neverending coup d’etat scam. But here’s reality: When President Trump says the U.S. economy is the strongest it has ever been, he isn’t kidding.

God Bless America.

That is all.

 

Today’s news moves at a faster pace than ever. Whatfinger.com is our go-to source for keeping up with all the latest events in real time.

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GUEST PIECE: Lior Gantz Sees Dollar Bear Market In 2020

Guest Piece by Lior Gantz of WealthResearchGroup.com:

The price of gold has hit an all-time high in Euros and a 40-yr high in Japanese Yen. Gold started climbing in December 2015 (four years and one month ago) and is now up 55%, since then. During this time, (1) the FED was tightening, (2) inflation was low, (3) the stock market SOARED, (4) the dollar was hitting ALL-TIME highs and other commodities didn’t participate in a rally.

In other words, gold’s price gains a few days ago from $1,053 to $1,610 is extremely weird, to put it mildly. In the 1970s, when gold quadrupled by a factor of 24, from $35 to $850, inflation was soaring. In the 2000s, when it rose from $250 to $1,915, interest rates were slashed, China boomed, oil went from $10/barrel to over $150 and the U.S. markets traded sideways for 8 years.

This current bull market is unique. Many seasoned billionaires are indicating that this current environment is totally confusing to them. Ray Dalio, for example, the pioneer of Risk Parity, suffered his 1st full-year loss in 19 years. In 28 years, Dalio has only lost money for investors in four calendar years. What’s even odder is that the S&P 500 has just closed on its best year since 2013.

As individual investors, we are freed from the nuisance of performing on a quarterly basis or an annual basis. We look at markets in increments of 5-10 years and allow investments to mature. Ideally, our active income generated from our main career compounds fast, so that we can add new funds to our portfolios every single month.

I stick with these 16 Life-Principles to experience a BLOWOUT year!

Courtesy: Zerohedge.com

As you can see above, through organic trends, such as demographics and productivity, as well as through the successful economic measures of the Trump administration, the U.S. economy has reached an exceptional point. Historically, this happens before recessions and before market peaks and wage growth is higher than unemployment rates.

As you can see, this is predictive of yield curve steepening, which is the most reliable recessionary indicator that economists use.

The Dow Jones eclipsed 29,000 points this past week for the 1st time ever. About 55% of Americans, or 181 million citizens, have ZERO exposure to stocks. To them, this means that others are getting wealthier, but the way for them to own equities is getting more distanced. At $27/hour – the average worker compensation across all industries – you’d have to work over 1,000 hours to own one point of the Dow Jones Industrial Average.

Nearly half of the workforce earns roughly $30K/annum, so you can see how most families find it IMPOSSIBLE to create the secondary wealth engine called passive income stream.

2020 started good for stocks. When the initial trading week begins this way, the S&P 500 finishes up on 82 out of every 100 years. On top of that, the average return is over 13%.

Like I said, this looks to be another year of generous market returns, BUT with a dollar bear market attached to it!

Courtesy: Zerohedge.com

In a few days, China and the U.S. will officially sign the Phase 1 deal. To my knowledge, we were the FIRST to draw the correlation between the dollar bear market and the trade deal.

As we see it, The European Central Bank and the Bank of Japan will EASE far less than the FED will in 2020, so the dollar will continue to head down. In fact, on a technical analysis basis, its 50-DMA just did a Death Cross.

This, of course, is good for commodities and the valuation of mining stocks.

Lastly, I want to make sure you understand that while more price gains are highly likely to come this year, the stock market is TRULY expensive:

Courtesy: Zerohedge.com

As you can see, when this ratio reaches a PEAK, both in 1971, 2000 and today (most likely), gold prices go UP, UP AND AWAY.

Gold has been one of the best investments of the past 19 years, up more than 600%.

After its best year since 2010, this could be a PIVOTAL time for it to gain double digits, which will result in $1,700/ounce at some point during 2020.

Open post

Here’s Why Pelosi is Making Impeachment Permanent

Today’s Campaign Update
(Because The Campaign Never Ends)

Tired of all this WINNING yet? Not a chance.  – All major U.S. market indexes once again attained all-time record high closes on Monday. It was the ninth straight record trading day on the NASDAQ, its longest such streak since 1998. As we approach the end of 2019, the Trump economy has now taken all of the Democrat/media recession promoters, folded them collectively up into a massive wad of smelly BS, and tossed them into the garbage dump of history. It’s a wonderful thing for America.

Tired of all this WINNING yet? Part II. – The stock markets weren’t the only area in which Americans were WINNING bigly on Monday. The leaders in China finally signaled capitulation to the reality of President Trump holding all the real leverage in the trade negotiations between the worlds two largest economies yesterday, announcing a massive reduction in tariffs on U.S. imports into their country:

China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year as Beijing looks to boost imports amid a slowing economy and a trade war with the United States.

Next year, China will implement temporary import tariffs, which are lower than the most-favored-nation tariffs, on more than 850 products, the finance ministry said on Monday. By comparison, 706 products were taxed at temporary rates in 2019.

The tariff changes were made to “increase imports of products facing a relative domestic shortage, or foreign speciality goods for everyday consumption,” the ministry said in a statement on its website.

This, friends, is WINNING, and it is only going to get better in 2020. Heck, it will likely only get better before 2019 is over – after all, we have a whole week to go.

Why is Pelosi making impeachment a permanent process? – After I posted yesterday afternoon’s update detailing the Democrats’ latest move to make impeaching President Donald Trump a permanent feature of their rule in the House of Representatives, several readers sent messages asking why she and Schiff and Nadler would do this? What purpose does it serve?

Well, there are several reason why San Fran Nan’s traveling congressional freak show is going down this road – let’s lay them out in bullet point form:

  • First and foremost, the Democrats have nothing else. This is all they got, and they know it. They have no real policy agenda heading into the 2020 elections other than promoting the Green New Scam and Venezuela-style socialism, and those are unpopular policy proposals that they must pursue under the radar.
  • Second, because they can. There is no honest media establishment working to inform the American people of the truly subversive nature of what they are doing, and thus, no negative consequences politically from going down this despicable road.
  • Third, because they can never admit that the 2016 presidential election was legitimate. Think about it: They and their corrupt media toadies have spent three entire years now promoting first the Trump/Russia myth and then the Trump/Ukraine myth in their frenzied effort to overturn the results of that election. If they were to stop now, it would be an admission that the entire pretense that enabled them to attain their House majority in the 2018 election was a false one.
  • Fourth, because pursuing permanent impeachment supports their new narrative in which they are already making the case that the 2020 presidential election will be illegitimate. Having a President win re-election while “under investigation” is key to that narrative.
  • Fifth, because they know that Ruth Bader Ginsburg is in terrible health, making it very likely there will be an opening on the Supreme Court at some point next year. Making impeachment permanent enables them to argue that President Trump can’t fill that seat while he’s under “suspicion.”

I suspect it is possible that Ginsburg, who is 85 and has survived several bouts with lung and pancreatic cancer, or liberal justice Stephen Breyer, who is 81, may have even informed Pelosi and others that she or he plans to retire at the end of the current Supreme Court session, which would help to explain the urgency behind the Democrats’ efforts to keep impeachment alive.

Now, if you are thinking that none of the reasons listed above are legitimate reasons for the constitutional abomination Pelosi is perpetrating on our society, I agree. But we have to remember that everything Pelosi, Schumer or any Democrat leader does has a single goal in mind: The acquisition and maintenance of political power. That’s it.

Considerations such as what might be best for the country never enters the minds of these demented and depraved people. Once you realize that reality and accept it, everything they do makes perfect, if evil, sense.

That is all.

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

Open post

The FISA Court Puts the FBI on a Kabuki Theater Action Plan

Today’s Campaign Update
(Because The Campaign Never Ends)

WINNING, soooooo much WINNING. It truly never gets old. – Once again, every stock market index – the S&P 500, the NASDAQ and the Dow Jones Industrial average – closed at record high levels on Tuesday. That’s the third straight day for the Dow and the fourth straight for the S&P and NASDAQ. The Trump economy is booming along so strongly now that the recession promoters at the Washington Post gave up the ghost over the weekend and sadly admitted that we are not headed into an economic contraction anytime soon.

Also in the realm of WINNING, the Democrats in the House, cowed over the growing public pushback over their impeachment sham, passed a spending bill that includes $1.4 billion in funding for the border wall and does not include restrictions on the President’s ability to move funds from Defense and other departments to keep the wall’s building moving ahead. That, friends, is WINNING on a grand scale.

Another WINNING feature of this particular budget bill is what is not in it: Proposed language that would have provided billions in de facto bailout money for Tesla and General Motors in the form of expanded subsidies for their overpriced Electric Vehicle manufacturing. Those two companies had already used up their allotment of subsidies under the program, and will now be forced to actually compete with Ford, Nissan, Toyota and other EV sellers on equal footing.  Imagine that.

All in all, it was a great day for America because President Trump was WINNING and the Democrats, their corporate clients and their media toadies were LOSING. Funny how that works.

Then there was the not-so-good stuff, typified by the joke of a “public order” issued by the chief judge of the Foreign Intelligence Surveillance Court [FISC], Rosemary M. Collyer.

Collyer, who it must be assumed just awoke from a two-year slumber, issued what the corrupt news media touted as a “stern rebuke” of the FBI for all of its lying to the FISC detailed in the recently-release report by DOJ IG Michael Horowitz. As reported by Fox News:

“The FBI’s handling of the Carter Page applications, as portrayed in the [Office of Inspector General] report, was antithetical to the heightened duty of candor described above,” Collyer wrote in her four-page order. “The frequency with which representations made by FBI personnel turned out to be unsupported or contradicted by information in their possession, and with which they withheld information detrimental to their case, calls into question whether information contained in other FBI applications is reliable.”

Oh, golly, oh, goodness, how will FBI Director Christopher Wray survive such strongly-worded sentences and phrases? Well, as the FBI itself told America in its response to the Judge’s letter, he will do what he does best: Respond to it with standard bureaucratic BS:

“As [FBI Director Christopher Wray] has stated, the inspector general’s report describes conduct by certain FBI employees that is unacceptable and unrepresentative of the FBI as an institution,” the bureau responded in a statement Tuesday night. “The director has ordered more than 40 corrective steps to address the report’s recommendations, including some improvements beyond those recommended by the IG.”

Many of you dear readers no doubt worked or still work in the corporate world as I did for many years. What Judge Collyer did yesterday was basically what corporate management and HR do with badly-performing employees: She put the FBI on an Action Plan. She slapped the dumpster fire law enforcement agency on its collective wrist and demanded that it produce a detailed plan for how it is going to improve performance in the future. And if it doesn’t improve, why, there might, maybe, be – gasp! – consequences.

Folks, Christopher Wray eats this kind of crap up. The man is nothing but your classic federal do-nothing bureaucrat, a useless placeholder whose only real skill is leveraging federal regulations and employment laws to his advantage.

As the FBI’s statement notes, he is so skilled at this game that he anticipated Collyer’s pathetic letter in advance and had already publicly announced his response to her action plan demand. Thus, he covered his butt before she covered hers.

This is nothing more than classic DC Swamp Kabuki Theater. Think about it: Everything finally, at long last detailed in Horowitz’s report has been out there in the public domain for more than two years now. Much of it had been detailed over and over again here at the Campaign Update.

Yet, in all that time, and despite all of the FBI’s mendacity in seeking its multiple FISA warrants to spy on members of the Trump Campaign, Trump Transition Team and Trump Administration having long been public information, neither Collyer nor any other FISC judge ever uttered a peep of public protest. It was only after the Horowitz Report had finally been issued that she suddenly decided to issue her “rebuke” of the FBI and its myriad bad actors.

In a just world, every existing FISA warrant would be rescinded pending further review, and a special prosecutor would be appointed to investigate every other warrant the FBI sought from the Court during James Comey’s time as FBI Director. But this is not a just world, so Collyer’s meaningless action plan, which was so predicrable that Wray anticipated and responded to it in advance, will be the last act we see in this particular Kabuki performance.

Everybody’s butt is now covered, every bureaucrat is now protected, and the myriad Americans whose civil rights have been violated by the raging dumpster fire that is the FBI will have no justice delivered.

That is an outrage.

That is all.

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

Open post

Investors, Beware: Prepare For the Coming Decade

[Note: We have found the work of Lior Gantz from WealthResearchGroup.com to be excellent and interesting, so we’re sharing his articles with you. Hope you enjoy them and find them useful.]

Today, there is over $17T invested in bonds that guarantee a loss. Think of the madness: You invest $101 today and in 2030 you will receive back $100. While the rate of inflation has been around 1.5% and GDP growth has been 2%-2.5%, owning bonds hasn’t been a bad choice or a lousy decision.

Many bond investors own the bond because of its liquidity and due to the fact that they’ve been able to flip it, selling it to another institution for a profit, so the yield wasn’t a determining factor.

For example, when the U.S. government’s 10-yr bond yields 2.3% and you lend Washington $10,000, the return on the coupon is $230. If six months later, the newly-issued bond yields 1.8%, you’d have to lend the government $12,777, so investors flipping their previously-bought bonds from six months ago just made a stunning 27.77% return.

But who in their right mind bets on lower rates, when the world’s interest-rate policies are already this artificially low? Who can be so CERTAIN that rates won’t rise, that central banks will be able to continue on their path of suppressing inflation? WHO BUYS BONDS AT NEGATIVE RATES?

The level of madness, lunacy and criminality goes to another echelon when you learn that 97% of these government-issued bonds are actually owned by the CENTRAL BANKS and the institutions that facilitate fractional reserve banking in the first place!

President Trump may be calling on Powell via Twitter to lower rates to zero, because BOTH OF THEM are fully aware that in this decade (2020-2029) the compounded growth of the unfunded liabilities and the interest payments on the current national debt will become PUBLIC KNOWLEDGE and part of the debate. Thus far this has been swept under the rug, but the FED is already helping Washington prolong this economic expansion that is financed by ever-growing deficits.

The Federal Reserve is rudderless. It really has no idea what to do next, so it is coming up with all sorts of fantasy schemes, like “letting inflation run higher to make up for lost time” – this is STUPIDITY on the grandest scale.

I’ve never understood this imaginary, totally bizarre target of 2%, which is just a made-up figure that they HAVE NEVER been able to meet.

The Federal Reserve, along with all other central banks, is a financial mafia in $3,000 suits.

Their entire reason for existence is based on a false premise that bank runs won’t occur under their watch and that they know how to keep employment levels steady and inflation in check.

Nothing could be MORE absurd than those claims.

The dollar will continue to be King of Fiat, since the other currencies are now in banana republic mode. The Euro, Yen and Sterling are jokes.

So long as this boom in stocks prevails, we won’t see any inflationary mania, but distrust in institutions is back to WW2 levels. In America, the world’s biggest, most dominant and important market, DISUNITY is at a record high.

Every day, watching from afar, I am astounded at some of these notions brought up by AMATEUR politicians, who have ZERO real-world experience: outlawing billionaires, making healthcare 100% government-subsidized or making college 100% funded by taxpayers.

If there is a downturn in 2020, Trump will most likely lose the presidency to a Democrat. If that happens, the U.S. will begin to resemble Europe and have a quasi-socialistic regime. If Trump wins, he will cut taxes for the middle class and BALLOON the national debt, making the endgame much scarier.

The planet is operating in the wake of a global revolution that’s due to come. GDP growth is now a matter of debt, not productivity.

Gold may be underperforming stocks in 2019 and mining stocks may be underperforming for 3 years, but the paradigm shift will be so quick and the re-pricing so DRAMATIC that being early and looking like a fool for a while is a small price to pay in order to MAKE obscene, life-changing profits on the other side.

Don’t cover your ears. Don’t bury your head in the sand in these wild times we live in. Be a force to be reckoned with!

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