The Contrarian

“In the investment markets, what everyone knows is usually not worth knowing.”

Important Signal for Stocks and Bonds?

From Gavekal Capital, we have a very interesting chart comparing the performance of stocks vs. bonds. That ratio is now the highest since the peak of 2007, and about equal to the peak of 2011.The 2007 peak preceded the big bear market in stocks and the global financial crisis of 2008. Here is an excerpt: Over the last two quarters stocks have outperformed bonds by 31%, which is the greatest outperformance by stocks since 2011. Only...
Read More

Dangerous Air

Extremely high levels of ozone were detected in the air over the past several days during the day in Beijing. This then changes at night when “cancer causing particulates” emerge. Is that why Chinese population growth has stalled. Here is the article from CAIXIN news in China: Beijing Holds Its Breath as Ozone Levels Surge (Beijing) — Beijing and parts of neighboring Hebei province and Tianjin were blanketed by smog infused with high levels of...
Read More

Return To Disinflation and Deflation?

Until recently analysts have talked about rising inflation, saying that the efforts of the major central banks to eliminate deflation and generate inflation was working. My view was that the rise in inflation numbers may have been just a technical bounce that would not endure. However, there was no way to know for sure. Since mid-April, the commodity indices have broken down, the rally of the past eight days not withstanding. This excerpt below of...
Read More

Just Like Old Times- A President in Danger

The more things change, the more they remain the same. That’s an old saying, and suggests that everything in the world repeats, or at least “rhymes” as Mark Twain would say. The article seems to suggest that the president may meet the same fate as another president. The following is an article from Jacob Hornberger, founder and president of The Future of Freedom Foundation. He writes: Just consider the accusations that have been leveled at...
Read More

“WannaCry” Worldwide Computer Attack

It is estimated that the computer attack has now infected computers in over 100 countries. The nickname has become “WannaCry” although it is actually, WannCrypt. It is RansomWare. The virus apparently encrypts all the files on your computer, and thus your computer becomes unusable. A message appears saying that for $300 paid in Bitcoins, they will send you a code to get your computer working again. The virus is spreading like wildfire. It exploits a...
Read More

Senate Confirms The New U.S. Trade Representative

The Wall Street Journal had this article on the new person approved by the Senate for be in charge of negotiating trade issue with other countries. The worry is that he might cause an acceleration in international trade barriers. We believe that the Trump administration uses tough talk as a negotiating position. We saw this with China. Talk tough at first, and then have a nice agreement in which no one gets hurt, but the...
Read More

Financial Engineering 201

Matt Levine was a derivative trader at Goldman Sachs. He writes the following item on derivatives and how they can be used by companies as alternative way to borrow money.  It shows you that today’s market is about everything except true fundamentals. The tail is wagging the dog. Here is his article, originally posted on Bloomberg. There is a solution that is very lovely, and GoPro, Inc., used it in the $150 million convertible deal...
Read More

War?!

War With North Korea Is In The Air. On April 26, President Trump invited all members of the Senate to the White House. You can bet it was not just to have coffee and crumpets. According to several Republican Senators, it was a full Senate briefing on North Korea. We believe that was the first time a President ever did this at the White House. It was described as a “thorough accounting of the administration’s...
Read More

Killing NAFTA

Our observations over the past several decades has been that any policies out of Washington formulated by economists are very likely to be ‘very bad ideas.’ In fact, throughout history, the follies of economists have created crises and depressions. Remember the Smoot-Hawley Trade bill in the early 1930’s? Many say that this converted a recession to a 10 year depression as other countries retaliated against the protectionism of the US. The last time we used...
Read More

Secrets Of The Iran Nuclear Deal

Below is an excellent article from Politico, written by Josh Meyer. As time goes by, there are an increasing number of revelations about the true extent of the nuclear deal with Iran. We leave it to the reader to make a judgment. But one thing is sure: Americans didn’t get nearly half of the details about what was actually agreed to, including the payment of over $1.3 billion in cash, in various currencies, in exchange...
Read More

Beautiful Words To Live By

Take two minutes to read these sayings and be sure to read all the way to the bottom. In this time of turmoil, we should reflect on what is really important in life. Attributed to Andy Rooney, who passed away, and was a favorite commentator on CBS’s 60 Minutes TV show. FROM ONE FRIEND TO ANOTHER I’ve learned…That the best classroom in the world is at the feet of an elderly person. I’ve learned…That when...
Read More

Teaching ‘Appreciation’

This is apparently a true story. In September of 2005, on the first day of school, Martha Cothren, a History teacher at Robinson High School in Little Rock, did something not to be forgotten. On the first day of school, with the permission of the school superintendent, the principal and the building supervisor, she removed all of the desks in her classroom. When the first period kids entered the room they discovered that there were...
Read More

The Importance of the French Election for All Investors

Yesterday, April 20th, A policeman was shot and killed on the Champs-Elysees in Paris, France. ISIS has claimed responsibility. The attacker had an automatic weapon. It’s very sad that Europe has brought this problem on itself for allowing millions of unvetted “migrants” to enter their countries. They have no idea who these people are. Fortunately, the US has a new president who puts the security of Americans first. Amaq, the news agency for ISIS, claimed...
Read More

The “Bernie” of France?

Jean-Luc Melenchon is a candidate for president in France’s upcoming election. He is popular with the young people, just like Bernie was in the U.S. The younger generation prefers sitting in café’s, sipping espresso, getting a weekly check from the government, rather than working. Can’t blame them! Melechon is supported by the Communist party of France. He advocates a 100% tax on any income above €400,000 (around $425,000) per year. Confiscation of earnings results in...
Read More

What Is Fake News?

Here is an example of “Fake News” from AP: The headline reads: Lobbyists Tied to Ex-Trump Aides Register as Foreign Agents A Washington lobbying firm that worked on a covert influence campaign in the U.S. under the direction of two former top campaign advisers to President Donald Trump has registered after the fact with the Justice Department as a foreign agent. | April 12, 2017, at 1:37 p.m. From the headline, you would think that Trump’s...
Read More

Gold and Silver: Opportunity of a Lifetime?

Over the past 39 years, we have rarely used the words “Opportunity of a lifetime.” However, we feel there is a good chance of another one in progress. Let’s look at gold since the late 1970’s. History may not exactly repeat, but often it rhymes. In 1977, when we started our award-winning Wellington Letter, we were correctly bullish on gold. It soared from around $120 when we recommended it to over $800 over the next...
Read More

The Drone Wars

Drones of all types exist nowadays, from the large US military Reapers to small ones that just carry a camera or an explosive, as done by ISIS. It was just a matter of time before an anti-drone weapon was developed. Here it is a short story of the ‘anti-drone’ wars, courtesy of zerohedge.com. China Unveils New Drone-Killing Weapons While the “Silent Hunter” laser-gun is a more ‘offensive’ weapon, China has stepped up its ‘defense’ too. As PopSci...
Read More

The Fed: Should Yellen Be Fired?

The headline is an important question and it’s not unreasonable. Is she a shill for the extreme left? Does she know what is going on in the economy? She said she would serve out her term as Fed Chair. That expires in January 2024! A person can do a lot of damage in that time. Here is what an excellent analyst writes about her and the Fed. From Phoenix Capital, Graham Summers Trump might want...
Read More

The Health Care Debate

While the GOP is still struggling to present a better alternative to O-care, some smart commentators give their views: Larry Elder is one of these. Here’s a great excerpt from Larry Elder, nationally syndicated radio show host, author, and all around smart guy. He explains how the massive amount of GOP has held back our healthcare system as we know it today: Health care — just like cars, sweaters and smartphones — is a commodity....
Read More

When Is Debt Beneficial And When Is It Too Much?

The answer to the above is subject of debate between economists. However, ask business owners, and most would probably agree that too much debt is just too much. Nobel laureate Paul Krugman tells us ‘Debt is Good.’ Krugman says … “Believe it or not, many economists argue that the economy needs a sufficient amount of public debt out there to function well. And how much is sufficient? Maybe more than we currently have. That is, there’s...
Read More

Is Cash Trash?

We have written about the global trend to discourage the use of the currency notes, and to quietly convert payment systems to digital, which will eventually lead to a system where currency is banned, and every transaction must be in the digital form. This is what governments everywhere want. They don’t want any currency to be stashed away. Every dollar transaction must be above ground, and must be taxed. Furthermore, a digital currency is much...
Read More

“Greasing The Wheels”–Political Contributions

The path to getting yourself and your business heard in Washington, or in any capital  of the world, is to “grease the wheels.” Political contributions is one way. But to make them work, the contributors hire lobbyists. They remind the politicians of the I.O.U.s they have to take care of. Many years ago, I read the book of a former lobbyist. It is still valid, and just as shocking as it was then to find...
Read More

Best Seller On Amazon: A Book About Voting For Democrats

Amazon’s current number one bestselling book is called “Reasons to Vote for Democrats: A Comprehensive Guide.“ The book is “written” by Michael J. Knowles, who is the managing editor of the Daily Wire, a news website founded by Ben Shapiro, a political commentator, in 2015. Shapiro calls the book the “most exhaustively researched and coherently argued Democrat Party apologia to date.” After you have downloaded the book, don’t get ready for a long read, although...
Read More

The ‘Speech Police’ Grows In Power

The headline: “Cardiff Metropolitan University Bans All “Politically Incorrect Words” You ask, where or what is Cardiff? Well, it’s the capital of Wales, in the UK, and this is the university of that city. We have heard that the UK and Europe is far ahead of the USA in insanity of political correctness, thought control, speech control, and anything else that is unnatural. Mish Shedlock writes this: Cardiff Metropolitan University is at the forefront of...
Read More

On The Lighter Side

On the lighter side, here’s something to put a smile on your face! President Trump invited the Pope for lunch on his mega yacht.  The Pope accepted and during lunch, a puff of wind blew the Pontiff’s hat off and right into the water. It floated off about 50 feet, then the wind died down and it remained on top of the water. The crew and the secret service were scrambling to launch a boat...
Read More

Climate Change: Could A Mini-Ice Age Be Starting?

I have written for years that which initially was sold to the public as “global warming,” is a huge “fraud.” The name was changed from “global warming” to “climate change” because new evidence showed that the climate was actually cooling. Falsification of the data by institutions charged with the research was revealed. Their goal was to confirm warming. But the data didn’t support that. So, they changed the data, the ultimate fraud. The research institutions...
Read More

Another Exit From The EU Brewing?

The EU is crumbling, and no one in a leadership position sees the signs. What a bunch of incompetence! The EU now says that it would cost Britain a huge €60 billion to exit. Does Brussels really think the Brits will pay that? The EU governing body thinks they are bargaining from a position of strength. We disagree. Italy has an increasingly strong movement to exit from the EU. Marie Le Pen’s party in France...
Read More

Tired Of Having A Job? Move To Sweden As A “Migrant”

What’s not to like? Get free housing, free medical and dental care, free education, and food subsidies. No wonder there is a rush of migrants from Africa and the Middle East to live in Sweden. The problem the government of Sweden may not have realized yet is that the small population of Swedes can’t possibly support millions of people who don’t want to work. Last year, it was said that out of 160,000 migrants in...
Read More

The “Everything Bubble”

That is what economist John Hussman calls it. Here is the chart he uses, which includes most of the major categories of the S&P 500 index.  It doesn’t include the rise this year, which has now brought the market to the edge of a “Super Bubble.” Hussman’s chart is the ratio of ‘price vs. revenues (sales),’ not profits. It is also called the ‘Price to Sales ratio.’ Because revenues (sales) have been weak for the...
Read More

Lessons From The Father Of Propaganda

Goebbels, propaganda chief for Adolph Hitler, said, “repeat a lie often enough, and people will believe it.” Actually, Goebbels got his ideas from American Edward Bernays, often called the “father of propaganda.” Interestingly, he was the nephew of Sigmund Freud. The radical left has picked up Hitler’s slogan and is doing exactly that. Zerohedge writes that this was the written agenda of the recent protests: “Anti-Trump protesters took to the streets all around the country today...
Read More

The Cancer Of War

This is an alarming article we came across recently about the United States’ military and weapons they’re using in Syria on the Ron Paul Institute’s website. Despite vowing not to use depleted uranium (DU) weapons in its military action in Syria, the US government has now admitted that it has fired thousands of the deadly rounds into Syrian territory. As Foreign Policy Magazine reports: US Central Command (CENTCOM) spokesman Maj. Josh Jacques told Airwars and Foreign Policy that 5,265 armor-piercing...
Read More

Why European Investors Should Be Worried About Catalonia!

Where or what is Catalonia? Well, it’s a very important province of Spain that includes Barcelona, the beautiful capital of Catalonia, where many of the country’s biggest companies are located. There are two problems: Catalonia has been trying to get independence from its mother country, Spain, for many decades. Just as in the Basque country of northern Spain, Catalonia also has had its terrorists. I remember when I was visiting the country many years ago,...
Read More

US War Industry Shifts Into High Gear

One of my favorite sectors (as written about in our latest Wellington Letter) is what is called the “aerospace and defense.” The new president will challenge many nations opposed to the US, and aid others who are our allies. That means the war industry will shift into high gear. It’s already doing well. In 2015, it sold $33 billion of weapons just to the Gulf oil countries. That’s pretty good for such a thinly populated...
Read More

Keeping Governmental Misdeeds Secret!

Whistleblowers have it tough. They think they are doing their duties to reveal misdeeds, and then are ousted or even punished by prison or other means. This is especially true when it comes to revealing governmental misdeeds. The US historically has been a safer place for whistleblowers, with Britain and other European countries downright dangerous to anyone who would rock the boat of the establishment. In that tradition of covering up governmental misdeeds, Britain is...
Read More

Anarchism Gets Punished!

“You do the crime, you do the time” We have been wondering why we don’t hear anything about the violent anarchists, which the liberal media called “protesters,” being prosecuted for their crimes of destroying private property and causing hundreds of thousands of dollars of damage. Just look at the videos of these vandals at UC Berkeley, NYU, other UC campuses, etc. They even come with dressed in special ops battle gear with what looks like...
Read More

India’s Cashless Experiment Hatched In The U.S.

Excerpted from Bert Dohmen’s Wellington Letter Analyst, Mr. Jayant Bhandari, who has worked for a number of well-known financial firms, said the following in an interview with www.ceo.ca about the crisis in India when the government, by law, called in 86% of the currency in circulation. When the banks opened, there were long lineups everywhere in the country. People were trying to convert their banned notes into smaller denomination notes, which were still legal tender. But...
Read More

Fukushima’s Unimaginable Radioactivity Crisis Is Only Getting Worse

We came across a good article thoroughly examining the unbelievable radiation exposure in Fukushima from their nuclear power plant disaster back in 2011. The below article comes from Lew Rockwell’s website, truly a good read to comprehend just how severe the radiation and subsequent problems are not just in Japan but now also America. Highest Fukushima Radioactivity since 2011 is Producing ‘Unimaginable’ Consequences As the six anniversary of perhaps the world’s worst nuclear disaster in...
Read More

What Will Replace Obamacare?

As the Republicans search for a new healthcare system to replace the deficient ACA, they might want to look at how Germany does it. I have mentioned that system for many years. Germany’s healthcare insurance system is reportedly the oldest in the world. It was started by statesman Otto von Bismark, who in 1883 created the “Health Insurance Bill”, in 1884, the “Accident Insurance Bill,” and in 1889 the “Disability Insurance Bill.” Imagine, that was...
Read More

Is Germany’s Merkel Up For Involuntary Retirement?

Germany’s second biggest political party, the SPD, which is like a labor party, has suddenly soared in popularity. The SPD (Sozialdemokratische Partei Deutschlands) was established in 1863. It was one of the first Marxist-influenced parties in the world. The polls had the SPD soaring in popularity by 10 percentage points in two weeks. That’s considered highly unusual. It happened after the party picked a new leader who may beat Chancellor Merkel in the September election,...
Read More

Germany’s New Way To Track Terrorists

Germany, which has become the example of stupid governmental policies that should not be imitated by others, has come up with a new proposal: put a tracking device on potential terrorists. It is assumed they will wear it happily. Perhaps they should also give them a cell phone to call in a planned attack before it occurs. Germany, other European countries, and the US have become dominated by a class of people that never could...
Read More

Populism Threatens To Upset Europe’s Establishment

Since the Brexit, we have written that people in other EU countries would start revolting against their tired, old, worn-out politicians and demand something similar to what got the new US President elected. The movement is called “populism.” It is now thought by well-connected analysts that Italy may consider dumping the Euro currency, which would be another sign of revolt against the bureaucracy of the EU in Brussels. France, Netherlands, and others may not be...
Read More

Is Big Brother Here And Growing?

Most everyone under the age of 50 loves electronic gadgets. Electronic locks on our house door, security cameras, a camera on the doorbell, “smart thermostats,” the camera on our computers, and now the Echo from Amazon that hears everything in the room. The problem is that they are all hackable, some very easily. There is very little if any security in many of these devices. They may be spying on you. Watch the movie with...
Read More

Hedge Fund Billionaire Predicts “Trump Will Fail”

Hedge Fund billionaire George Soros was interviewed on Bloomberg from Davos where the world’s billionaires meet each year. His comments confirmed that he was a “sore loser.” He reportedly lost $1 BILLION in the market in the Trump rally. No wonder he is angry at Trump. He said this in an interview on Bloomberg TV today: “Trump is going to fail. Not because of people like me who want him to fail, but….” Of course,...
Read More

The Challenges Of “Fake News”

“Fake news” has become an epidemic. No one, the publishers nor the readers, can be certain anymore if a story is true or not. It appears that every publisher would need an army of fact checkers to verify information in a story in the media or internet. That of course is extremely expensive and not practical at this time. Thus, we expect that some entrepreneurs will see the opportunity and create “fact checking” entities who,...
Read More

The “Deep State” Now Specializes In “Fake News”…Buzz Feed Used To Disseminate It

The major US media, disguised as “news”, is now fully entwined in disseminating false information on behest of those entities that profit so handsomely from turmoil and war. The president-elect (DJT) has stated he will go after “waste” in defense, in health care, in government, etc. He can’t be bought.  Therefore, the alternative is the agenda to destroy his reputation and that of anyone who supports him. Otherwise, he could destroy the “gravy train.” Reputation...
Read More

Glenn Greenwald On The “Deep State,” Fake News, And The President Elect

Here’s another interesting read about the recent “Fake News” epidemic that is spreading across the world, written by Glen Greenwald. I encourage everyone to read this, as it reveals further insight into the recent fake Trump dossier. IN JANUARY 1961, Dwight Eisenhower delivered his farewell address after serving two terms as U.S. president; the five-star general chose to warn Americans of this specific threat to democracy: “In the councils of government, we must guard against the acquisition of unwarranted...
Read More

Understanding The Financier Of The Radical Left

The following is an interesting article from David Hagith about this controversial hedge fund billionaire, George Soros, mover and shaker of the financial markets, and financial sponsor of the agenda of the radical left. He has funded riots and overthrows of governments in countries where he thought a new government was appropriate. In his own mind, he probably thought he did it for the good of the world. He is a complex person and hard...
Read More

Is Another Cold War With Russia Ahead?

People wonder why there is so much to do about alleged “hacking” by the Russians of the Clinton campaign emails. After all, the revelation of the emails only confirmed the corruption of the Clinton campaign. Perhaps the Russians should be considered for a Pulitzer Prize. Experts, even those from the intelligence agencies and even critics of Trump, say there is no evidence and that it is all fabricated. Interestingly, no one on the left talks...
Read More

Will Germany Pay For Prostitutes For The Poor?

Now here is a topic that can get more politicians of this political party elected. What’s not to like? Free sex, paid by the government. Of course, it’s never “free,” someone pays for it. No, this is not happening in the US. It’s actually in Germany. What a great idea for a political campaign of a minor party, such as the Green Party, at least in some countries. It probably wouldn’t work in puritan USA...
Read More

Rubio Shows Why He Can Never Be President

At first many people liked Marco Rubio when he first became presidential candidate. We did as well. Then we saw the defects appearing. Now, months after he dropped out, we see an increasing number of signs of why he should never be a presidential candidate again. The confirmation hearing of the Secretary of State designate Tillerson is an example. Here is what Mish Shedlock wrote: Rubio Makes Ass Out of Himself During the hearing, Mr....
Read More

McDonald’s and KFC (YUM) Leave China

The business climate in China continues to become more unfriendly to large foreign companies as we have been writing for the past several years. We have heard about the governmental raids on the offices of IBM and other large US firms. This is all part of the “buy Chinese” effort of Beijing. China has gotten all the intellectual property rights on inventions and technology from foreign firms wanting to business in China. Now that they...
Read More

Trump Cancels Overseas Projects

We had always thought that Trump’s licensing his name for large real estate projects internationally was genius: you get money without all the headaches of developing, such as permitting, land acquisition, negotiating with contractors, paying off governmental officials, etc. As we learn now, the saying that “all that glitters is not gold” is very true. The Trump organization is now withdrawing from such deals in countries where there could be a conflict. In the process,...
Read More

Uber And Lyft To The Rescue

Anyone who lives in a big city is tired of endless traffic congestion and spending hours each day commuting. Well, now there are studies that show technology has come to the rescue…just in time. With “ride-sharing” firms like Uber and Lyft, many cars no longer clutter up the roads. These firms should be congratulated for the perseverance of fighting city councils who are beholden to traditional transportation firms like taxis, because they have been given...
Read More

Move To Eliminate Ethics Watchdog Fails

On January 3, 2017 it was revealed that on January 2, a holiday, House Republicans moved to eliminate the independent Congressional Ethics office. Of course, who needs ethics in Congress. In defense, these Republicans said that the independent Office of Congressional Ethics was “overly zealous.” Of course, we can’t have people that enforce ethics. That would be so anti-government. There was no advance notice of the vote. So much for open government. But Trump, after...
Read More

Mexico’s Pemex Crisis Grows

Mexico’s currency has been plunging the past year, as its economic problems mount. The US president-elect is persuading US companies to shelve plans on moving parts of their manufacturing to Mexico. He also wants to build a big wall, paid for by Mexico. At the same time, Mexico’s expatriates working in the US, legally or illegally, are sending much less money home to Mexico. This all fits in with our view, as expressed in our...
Read More

Could an Italian Banking Crisis Ignite an EU Crisis?

Often events deemed small can ignite very significant events. The assassination of Duke Ferdinand of Austria ignited WW I. The debt default of Thailand caused a global financial crash. The next year, the Russian debt default did the same. Now we see the banks of Italy, perhaps eight of them, in danger of being insolvent. The EU doesn’t seem to be too eager to do a bailout at this point. However, when things get too...
Read More

The HFT Algo-Computers Crash FX Markets

We have been long-time critics of high frequency trading (HFT), where high-speed computers can place 90,000 traders per second. This has developed into “algo-trading” where the computer’s programmed algorithms enter orders without any human intervention. They just act on market data and enter millions of orders as determined by the software. The market crash of August 24, 2015, in which the DJI crashed 1089 points in minutes, is an example where apparently a number of...
Read More

Merkel’s Folly

We have written a number of times about the folly of Germany’s chancellor Angela Merkel. Her policy on allowing the foreign invasion of Germany, infiltrated by terrorists, will go down in history as the greatest blunder since allowing another foreigner, Adolf Hitler, to become the chancellor of Germany. Here is what an excellent analyst wrote about it the disastrous policy of Merkel. Merkel Sponsored “Suicide of Germany” Of the 1.2 million migrants who arrived in...
Read More

China: Is Another Financial Crisis Brewing?

Financial fraud is a major problem in the China markets. When US analysts quote the earnings and sales of Chinese companies, we always say, how do they know that any of these numbers are real? Even companies that were audited by the world’s largest CPA firms committed fraud, fooling the auditors, and all the investors. The article below is an excerpt from a China news service, Caixin: Bond Woes in China Raise Concerns of Financial...
Read More

A War Over The South China Sea?

The current U.S. policies are threatening the start of another Cold War, this one to include China. Such things are always a failure of diplomacy. Perhaps if our policy makers in Washington had gone to a European school, they would know something about world history. The last secretary of State of the U.S. who knew history was Kissinger. That was almost 50 years ago. Recently, the U.S. had a big naval ship going through the...
Read More

Reshaping the American Government

The Department Of Energy is one that we had selected a long time ago as one department that should be abolished. Another is the Department of Education. Neither serve any good purpose. The energy department’s “work” should be cut by 90%, and the 10% remaining can be handled by the Department of the Interior. The Department of Education is even more useless. Now we hear about what Trump may be preparing to do. Here an...
Read More

Terrorism Shocks Germany

Germany is the economic power of Europe. It’s the only significant country in Europe with financial stability. Germans don’t revolt against their government easily. That’s what allowed Hitler to take full control and keep it, in spite of three assassination attempts against him. But now an increasing number of Germans say to their politicians, “we have had enough of your policies.” The move to the right is evident. The terrorist attack by a truck on...
Read More

Therapy For Post-Election Stress? Yes, It Exists.

Everyone knew that the city of San Francisco was less than normal in the realm of what is considered ‘normal’ in the western world. Letting illegal immigrants, who are convicted of crimes multiple times, out of jail until they finally kill some innocent young girl walking on the city streets, is definitely not “normal.” But New York City and Chicago have joined this insanity. The Major of Chicago, who used to be in the White...
Read More

China’s Artificial Islands Now Weaponized

You would think that China has enough territory for it not to create artificial islands in the disputed territory of the South China Sea and claim this is part of China. The areas include: the Spratly Island chain close to the Philippines, the Fiery Cross Reef, Mischief Reef, and the Subi Reef. We believe that the construction of these islands is probably part of its first line of defense in case there is ever a...
Read More

The War On Cash Accelerates…In India, Venezuela, And Now Australia

First India did it, then Venezuela, now Australia, and Europe may follow, and finally the US. All these governments are conducting a battle which may lead to a deep recession or worse. What is it? It’s a war on cash. When you eliminate part of the currency from circulation, money supply plunges, especially when the government doesn’t give banks enough currency notes for exchanging the “called-in currency” for currency notes that are still legal, as...
Read More

Intelligence Agencies Refuse To Confirm Russian Interference

“The Russians did it!” That’s the latest slogan on the left. They say the Trump victory was due to Russia “interfering” with the US election process. That cannot be tolerated, they say, and the Wikileaks emails of the account of the campaign manager for HRC, revealing despicable efforts, were hacked by the Russians. Have you noticed, they don’t claim that the damaging emails were false. The WH tells us that all the Federal security agencies...
Read More

McDonald’s Move From Luxembourg To UK

After the Brexit vote, we wrote that Britain now had the chance to become the “Island of Safety” for many global companies, away from the autocratic bureaucracy of the EU. That was totally contrary to the accepted wisdom that global companies would move out of London to somewhere on mainland Europe. Now we hear that McDonalds has decided to move its European headquarters out of Luxembourg after the “tax harassment” from the EU government. Here...
Read More

India’s Road to Depression

In our WELLINGTON LETTER this week, we had an article about the mess the government of India created for itself. We wrote: India produced a fiasco by calling in two different currency notes, valued at $7.50 and $15.00. These are considered “large denominations.” That wiped out most of the currency used by the people for buying things. Now the economy has come to a screeching halt as it has become a barter economy. That also...
Read More

Will 2017 See The Great Unraveling?

We have been writing about the totally crazy lending that has been taking place the past several years. It’s like 2007 on steroid, except that residential real estate is only involved on the fringes. That’s why it doesn’t get much attention. But there are lots of excesses in the types of commercial financial, junk bonds, “P-K (payment in kind) bonds, low covenant loans, etc. In an environment of low and declining interest rates, that all...
Read More

Revealed: Conservative Websites May Be “Russian Agents,” According To Left Wing Blog

You may have read that the radical Left in the US has started a blog accusing dozens of popular websites, that were critical of Left-wing policies, of being Russian stooges or worse. (We won’t honor that ridiculous website by naming it). Apparently, it has something to do with the Washington Post, owned by Jeff Bezos of Amazon. Some of our favorite websites are named, such as that of Paul Craig Roberts (below), David Stockman (former...
Read More

Will Italy Incur A Banking Crisis?

This weekend Italy will have a “do or die” referendum. The current prime minister, Matteo Renzi, says he will resign if it doesn’t pass. Many Italians can’t wait for that to occur. However, there are analysts who say that perhaps eight Italian banks will fail if the referendum doesn’t pass. These are said to be the following: Monte dei Paschi di Siena, Popolare di Vicenza, Veneto Banca and Carige, and four small banks rescued last...
Read More

Canada To Build A Wall?

Submitted by a conservative friend from Australia. Author unknown. The flood of Trump-fearing American liberals sneaking across the border into Canada has intensified in the past week. The Republican presidential campaign is prompting an exodus among left-leaning Americans who fear they’ll soon be required to hunt, pray, pay taxes, and live according to the Constitution. Canadian border residents say it’s not uncommon to see dozens of sociology professors, liberal arts majors, global-warming activists, and “green” energy...
Read More

Trump’s First 100 Days

Below is the DJT’s pledge, which he calls his “Contract with the American Voter.” He details how he plans to make America great again in his first 100 days in office. We present it here so you can easily keep track and tick of the “promises” he kept  and those that may not be kept, if any. Of course, we hope that all will be kept. That’s what many Americans voted for.  On the same...
Read More

The Spy Game And Privacy

Here is an excerpt from an article from our friend, John Mauldin, about how countries try to spy on each other. This affects US investors more than you might think. (Our comments are at the bottom.) “Buy American, Get Spied On” The equipment that moves and processes our data is hitting border checks, too. In 2014, journalist Glenn Greenwald set off Silicon Valley alarm bells with some photos from Snowden’s NSA data trove. Taken from...
Read More

Will We See An Economic Collapse?

Brandon Smith of Alt-market.com believes so. We think his viewpoint is food for thought, although we don’t necessarily agree with all the theories and conclusions. For some readers his thoughts seem “far out,” or outlandish. However, we have seen the “impossible” coming true since the year 2000. The world, and the USA, have been transformed, and not for the better. Anyone who would have predicted some of the changes 15 years ago would have been...
Read More

US and European Voters Reject Oppressive Socialism

We wrote that Trump would win, barring massive election fraud, and this would be another sign that the people of the western world are rejecting oppressive socialism. So far, that trend is in motion. It’s similar to the dramatic turn starting with President Reagan, then Margaret Thatcher, and others. Brexit was the start. Now it’s Trump. The media calls it populism. We call it votes for freedom, respect for the rights of individuals, rescinding all...
Read More

The New Algo-Everything World May Kill Us All

Yes, we are now entering the world of robots and algorithm programs controlling our lives. We have algo-trading, algo-communicating, algo-writing, algo-driving (read autopilot) among others. We just read that news articles can be written automatically by a computer and an algorithm. How about our Wellington Letter? Will the algos have a sense of humor? Wolf Richter, an excellent writer, tells a story of what the “algo” of Amazon did to him. The identical thing happened...
Read More

Reasons Americans Voted For Big Change

Here is a sampling of why Americans voted for a big change in Washington. They decided that the country was on the wrong path and that a 180 degree turn was required to prevent the demise of our great country. Nuclear Iran deal: The nuclear deal with Iran has been very controversial. Our Washington leaders signed a nuclear deal with Iran, making it a nuclear power in the world in 10 years or less. Iran...
Read More

DiCaprio, Climate Change and Hollywood

The movie premier for DiCaprio’s documentary on climate change took place on the South Lawn of the White House. DiCaprio said that anyone who doesn’t believe in climate change caused by human activity should not be allowed to run for public office. Probably many non-believers wouldn’t want to run for office anyway. They have jobs, occupations, and businesses. This article below is interesting, especially as it explains the agreement the US president signed in Paris...
Read More

Nobel Laureate Krugman Admits He Is “Clueless.”

Economist Dr. Krugman, a Nobel Prize winner in economics, never disappoints us in his reconfirmation of our view of this dismal science. Krugman wrote about his shock produced by the Trump election: So what do we do now? By “we” I mean all those left, center and even right who saw Donald Trump as the worst man ever to run for president and assumed that a strong majority of our fellow citizens would agree. I’m...
Read More

French President Hollande Discloses Classified Information – Impeachment Imminent?

Europe is seeing a persistent drift to the right of center after a long period of being left. France elected a leftist President several years ago, François Hollande, who now is the most unpopular president ever, with a 4% approval rating. He now faces impeachment hearings for disclosing classified information to journalists. The French National elections take place in 2017. Our colleague in the business, Mish Shedlock, writes this: While the impeachment request would have...
Read More

Britain’s “Fork In The Road”

The BREXIT vote was immensely important for Britain, but the hard choices are still ahead. Whichever way they go, it will make the difference between greater prosperity than the EU, or becoming just another unimportant island nation. Britain can become the low-tax alternative to the EU, and prosper, or replicate the stagnating EU countries choking their economies with ever more taxes and regulations. If it is serious in becoming more prosperous than the EU, it...
Read More

Germany’s Largest Banks At The Precipice

By now, the big problems of Europe’s largest banks are well known, more specifically Deutsche Bank (DB). Then came the additional problem: Washington wanted to fine DB $14 billion for mortgage fraud it committed ahead of the last global crisis. The total market value of the firm is around $19 billion. That would basically wipe out the bank. Is that the intent of the heavy fine? The second largest German bank is Commerzbank. It is...
Read More

The EU Will Crumble

Government is usually the problem. The aggressive EU government is trying to get Apple to pay over €13 billion in back taxes. As you know, Apple’s foreign profits are taxed in Ireland at a very, very low rate. But that is between Ireland and Apple. Whether Apple should “pay its fair share” as liberals always say, we leave up to the reader. However, the legal side is explained by Irish Finance Minister Michael Noonan. He said:...
Read More

Global Warming Research—Predetermined Outcomes

Many people believe that global warming is caused by your SUV, Carbon dioxide, taking too many showers, and other things human beings do. Those people should not read the following. We only report, we don’t try to convince. However, if you don’t believe that ‘global warming,’ if it even exists, is caused by mankind, you may be interested to see that so called research is phony, where so-called researchers are bought with grants, and the...
Read More

“Draining The Swamp”

Donald Trump released a great ethics reform plan for Washington D.C. last week which got minimal attention from the mainstream media outlets. This is the type of news that should be covered. In case you didn’t hear about it, here are his five-points he would institute to rid the Capitol of most of the lobbying corruption. DONALD J. TRUMP’S FIVE-POINT PLAN FOR ETHICS REFORM “It’s Time To Drain The Swamp In Washington, D.C. That’s Why...
Read More

The Micro-Brewery Bubble Is About To Burst

Beer sales have been declining for many years. But microbreweries have been posting double digit sales gains. People were just tired of drinking the big brewery stuff which tastes more like something that you would eliminate in the toilet rather than something you would want to drink. In fact, some articles in the media have reported that when some of the huge, acquisitive beer companies acquired another brand, they immediately got rid of more expensive...
Read More

“Sovereignty Is An Illusion” Says UN Representative

Peter Sutherland (United Nations Special Representative of the Secretary-General for International Migration) who recently declared in an interview with the UN News Center that “sovereignty is an absolute illusion that has to be put behind us.” Sutherland also drew upon the standard progressive narrative that anyone who disagrees that “sovereignty is an absolute illusion” is just “racist and xenophobic, and [ought] to be condemned.” He continues, “I will ask the governments to cooperate, to recognize that...
Read More

Britain’s CEOs Intend to Leave

Bloomberg reports: Brexit Leads Three-Quarters of Britain’s CEOs to Consider Moving. Given our view supported by experience over the past 40 years, CEO’s of large companies are worse than the “wrong way Corrigans” of the stock market. When do CEO’s do the biggest mergers? At market tops when they have to pay outrageous prices for their target. Years later, they do muli-billion dollar write-offs of their mergers. They are always most bullish at tops and...
Read More

Interesting Statistics About Gun Control

Author: unknown We recently received an email with the below take on Gun Control here in the U.S. It’s in interesting viewpoint, take a look. Guns and drugs, Drugs and guns. There is a connection folks! There are 30,000 gun related deaths per year by firearms, and this number is not disputed.  U.S. population 324,059,091 as of Wednesday, June 22, 2016. Do the math:  0.000000925% of the population die from gun related actions each year. ...
Read More

Trouble at the Tarmac in China

When the world leaders arrived at the G20 meeting in Hangzhou, China on September 2, all the dignitaries had a red carpet on the stairs exiting the airplane…except President Obama of the USA. He had a stairway just like the rest of us commoners who are tourists or business people…no carpet, just metal and plastic. The video was seen around the world. This incident produced an argument between an Obama staffer and a representative of...
Read More

Is Smart-Beta Actually Smart?

The new term designed to catch the imagination of investors is “Smart-Beta”. It sounds so “smart.” But is it, or is it just another marketing gimmick? Investopedia defines Smart-Beta this way: “Smart-beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. Smart-beta emphasizes capturing investment factors or market inefficiencies in a rules-based and transparent way. The increased popularity of smart- beta is linked...
Read More

A Cry Baby Who Makes $19 Million Per Year

Yes, there is a football player who will not stand for the NATIONAL ANTHEM of the USA in protest for things he considers racial, etc. He makes $19 million per year for throwing an egg-shaped ball. He is half-black. Apparently he was adopted by a white couple who brought him up, fed him, clothed him, and educated him. Obviously, there was something lacking in his education. He should travel around the world to find out...
Read More

Hillary’s Extreme Price List

According to a recent article in the New York Times, the price to be in the mere existence of Hillary Clinton is astonishing. For example, it costs $2700 each for children under the age of 16 to ask her a question. A family photo with Mrs. Clinton costs $10,000, according to attendees of a recent event in New York. At a recent celebrity home dinner in Beverly Hills, the price was $100,000 per plate for...
Read More

Could Japan Become a Military Power?

Japan is getting to the point where it wants to change its Constitution, which currently forbids the government from waging war. If the prime minister can get a supermajority in the Congress, he can put this question to a national referendum. With China getting more aggressive, that could change might just pass. It’s Article 9 that has to be changed. We will hear more about that in the future. It would lead to a military...
Read More

Luxury Housing Prices Are Crashing

Recently we read about how the average home price in Vancouver is down an incredible 20% in just one month. Initially it appeared as if it was just related to Canada’s new tax on foreign buyers that was implemented earlier this year. But now we are seeing a similar trend in popular US luxury real estate markets as well. Here is an excerpt from an interesting article from ZeroHedge about how the luxury housing markets...
Read More

How Can $6.5 Trillion Disappear?

The US Army can’t find $6.5 TRILLION. No, that’s not a typo. It’s not million, it’s 6500 times one billion dollars, not pesos. That money is gone. And no one knows where it is. It’s more than the entire annual defense budget. Have they checked all the drawers, or looked under the mattresses? The number is not made up: it comes from the Inspector General! It’s difficult for us non-billionaires to comprehend how much that...
Read More

The 9 Votes That Could Tear The EU Apart

Brussels and the European Union were furious when UK citizens voted to leave the EU. The “establishment” tried as hard as they could to scare the people of Britain into believing that leaving the EU would be a disaster, most of which has fallen flat. Now it looks like Britain is not the only one who is questioning the “benefits” of being a member of the EU, including outsourcing government authority and sovereignty. Euro-skeptic feelings...
Read More

“Stockpile food and water!” orders the German Government

The German government is “requiring” citizens to store a week’s worth of food and water in case of a disruptive terrorist attack. The government said: the precautionary measures demand that people “prepare appropriately for a development that could threaten our existence and cannot be categorically ruled out in the future.” To me, this means that there is huge disagreement at top levels in their government. Angela Merkel’s policy of letting in a million “migrants” from...
Read More

I Wouldn’t Touch Apple With A Ten Foot Pole

On August 15th 2016, I made an appearance on CNBC’s Closing Bell program where I was the bear on the panel discussing whether investors should be buying Apple right now and simply ignore all the bad news lately. I have been warning readers for many months that Apple’s best days are behind them. For years, bullish analysts come on TV and claim that great products are in the pipeline and the next refresh cycle will...
Read More

Slavery Today!

Below is an article from Dr. Steve Hanke of the Cato Institute. While in the US the big topics are whether men can use the restrooms and shower facilities of women, whether “free speech” on the campus should be restricted to designated “free speech zones,” and other ridiculous topics, there are almost 46 million people in slavery around the world. And it gets no publicity although there are some wealthy people forming organizations to shed...
Read More

The 80% Increase in SNAP Cards

The SNAP program is for “low income” families. Low income means you either have no skills, or you don’t like to work. It doesn’t necessarily mean that you are not able to work. Currently there are 44.3 million Americans, or 14% of the entire US population, getting SNAP. Before the financial crisis, there were fewer than 25 million people in the program. That’s an 80% increase. Some states have made single people ineligible. That’s the...
Read More

Unemployment: Explained by Comedians Abbot and Costello

We came across a fun article about the current way unemployment is counted. Abbot and Costello, two great comedians of the “olden days,” would have had this discussion about today’s low unemployment rate: COSTELLO:  I want to talk about the unemployment rate in America ABBOTT: Good Subject.  Terrible Times.  It’s 5.6%. COSTELLO:  That many people are out of work? ABBOTT: No, that’s 23%. COSTELLO: You just said 5.6%. ABBOTT:  5.6% Unemployed. COSTELLO:  Right 5.6% out...
Read More

Political Correctness Reaches The Olympics

Political Correctness has reached a new low and is now being demanded by a CNN Host. Here is an excerpt from ZeroHedge titled “CNN Host Slams America’s Greatest Olympian Ever For Not Being Black, Muslim Woman” “Michael Phelps may be the greatest Olympian the world has ever known, but for CNN host W. Kamau Bell, he is just a “tall, successful, rich white guy” who clearly didn’t “need the honor” of being chosen by his athlete...
Read More

LIBOR Scandal

Since the 2007-2009 crisis, we have written about market manipulation by many of the world’s largest banks and financial institutions. The subprime mortgage scams were miniscule in comparison. Here is an interesting flashback of the LIBOR rigging scandal which involves manipulating interest rates. LIBOR rates affect over $300 TRILLION worth of contracts and financial derivatives around the world. If they can rig that market, imagine what they do with stocks! Here is an excerpt from...
Read More

Ban All Murder Weapons?

The 18 year old Iranian-German murderer who shot and killed 9 people in a Munich shopping center triggered this question: Do gun control laws work? Then one must ask: How did this person get the guns? Germany has the tightest gun control laws in Europe. In 2015, there were 57 gun homicides in Germany, up from 42 the previous year. Chicago, which has the strictest gun control laws in the US, has that many shootings...
Read More

Immigration — Go Back To The Old Rules

I remember back in the 1950’s when US immigration laws were quite different and more sensible. Each country of origin had a quota for immigrants. Each immigrant was thoroughly researched. Even medical exams were required. Then the immigrant needed two US sponsors, who swore under oath that they would take care of the immigrant family in case they needed financial or other help. This was required to prevent a burden for the US taxpayers. Now,...
Read More

Could the DOW lose 4000 points in one day?

Here is an excellent article about the accelerating trend of having computers decide on trades rather than human beings. They call these the “Quants.” One hedge fund, Renaissance Technologies, has done very well with this. It was the early mover. But could there be an ominous outcome? Now that everyone is starting to play the same game, the profits will get smaller and smaller, until there aren’t any left. In effect, everyone will be aiming...
Read More

The Middle East and ISIS

France has now escalated the fight against ISIS after the recent terrorist attacks on French soil. France’s President Francois Hollande announced that the French aircraft carrier “Charles de Gaulle” will be sent to the region in September. French President Hollande said in a televised statement: “The Charles de Gaulle aircraft carrier will arrive in the region by the end of September. It and our Rafale aircraft will allow (us) to intensify our strikes against Islamic...
Read More

Billionaire Peter Thiel Gives Powerful Speech at RNC

Silicon Valley billionaire Peter Thiel, commonly known as former PayPal co-founder and CEO as well as an early Facebook investor, gave a refreshing no-nonsense speech during the Republican National Convention in Cleveland. This speech was unique because it addressed some of the pressing absurdities currently in the US. Here are some interesting quotes from a TIME transcript of Peter Thiel’s Republican National Convention Speech: “Wall Street bankers inflate bubbles in everything from government bonds to...
Read More

Restaurant Industry Downturn Points To Coming Recession

In 2015, we wrote in our Wellington Letter about how the restaurant industry, and other businesses with high employees-to-sales ratios, will have major profit and pricing pressures over the longer-term due to Obamacare. In addition, raising the minimum wage to $15 per hour, as well as increases in regulatory burdens, will all contribute to growing profitability pressures. We’ve been telling our readers since September 14th 2015 that “In the US, the worst parts of Obamacare...
Read More

How Countries Handle Their Borders

Source: Anonymous  If You Cross The North Korean Border Illegally, You Get 12 Years Hard Labor. If You Cross The Iranian Border Illegally, You Are Detained Indefinitely.   If You Cross The Afghan Border Illegally, You Get Shot. If You Cross The Saudi Arabian Border Illegally, You Will Be Jailed.  If You Cross The Chinese Border Illegally, You May Never Be Heard From Again. If You Cross The Venezuelan Border Illegally, You Will Be Branded A Spy...
Read More

Spain’s Corporate Tax Collections Goes Negative €539 Million

The problems facing the EU become larger and larger every day. In Spain it was recently announced that the government has negative corporate tax collections, or in other words, they issued half a billion euros more in refunds than they received in actual payments. This is a first, especially because they actually forecasted a 20% increase in payments. Here is an excerpt from an intriguing article from MishTalk about Spain’s negative corporate tax collections: “The...
Read More

Turkey: How A Dictatorship Is Engineered

The alleged coup in Turkey, which is being questioned in the highest circles, failed. Was it real, or was it a “false flag” as top officials in the EU are concluding? Our first thought was that it was planned by Turkey’s President, Erdogan, in order to eliminate all of his opponents in one swoop so that he could assume the mantel of a dictator. Hitler and other dictators have done something similar. But there is...
Read More

Russia Cracks Down On Internet Freedom

I came across this interesting article by the Electronic Frontier Foundation on Russia’s new internet surveillance laws, which, of course, were set in the name of “anti-terrorism.” Read the excerpt below on what exactly Russia plans to monitor and how it will impose these new regulations. It’s been a rough month for Internet freedom in Russia. After it breezed through the Duma, President Putin signed the “Yarovaya package” into law—a set of radical “anti-terrorism” provisions...
Read More

Incest, Wall Street, Brexit and the EU

For many years, informed people have criticized that the tentacles and influence of Wall Street extends around the globe. Goldman Sachs (GS) was so dominant in Washington’s places of power, especially the US Treasury, that people called the Treasury a subsidiary of GS. Even the current head of the European Central Banks (ECB) is a former GS executive. Here is an excerpt of an article from The Washington Examiner about the revolving door between GS...
Read More

Global Real Estate Bubbles Burst

The big international cities like London, Singapore, Hong Kong, and New York, are all witnessing a big decline in luxury sales and thus prices. Hong Kong sales are down 40% from the prior year, while London sales are down 26%. The above confirms that we are seeing a global debt implosion. It’s not “because” of lower oil prices, or commodity prices, or the China crises. The source of it is a collapsing debt pyramid. The...
Read More

The U.S. Lags the World in Payment Technology

The question of whether the US lags the rest of the world in payment technology is very broad and fails to infer that US technology is actually behind in all aspects. However, retail payment processing is a huge market. It’s amazing that the US is so far behind other countries. Most of us have the new, more secure credit cards with a chip, called EMV. Problem: Most retailers don’t have the updated terminals yet. It’s...
Read More

Why Britain Will Prosper With Independence

Here is an email from an expatriate Brit in Australia. We have not verified all the facts stated. However, if only part of them are correct, then it was high time for Britain, and others, to leave the EU. That organization has been hijacked by the establishment for its own goals. "Read and weep! All the below was done with grants from the EU. You wonder why they are hurting their countries. Cadbury moved factory...
Read More

The End of the VC Start-Up Frenzy

As a contrarian investor, we regularly look for signals that are often disregarded by main stream media outlets. These signals can help forecast possible future market turns and, at times, can issue a red flag when new incremental buyers seem to be drying up. This week we found yet another example of irrational behavior in the VC world. Here is an excerpt from an article from Fortune Magazine about how Siemens is sinking $1.1B into...
Read More

Brexit – “Independence Day For Britain!”

  A Vote For Freedom–The Important Global Implications   The people of Britain voted to leave the EU dictatorship, along with it’s huge, wasteful, and excessive bureaucracy. We congratulate them. They declared “Independence.” It was like the Magna Carta v2.0. The question many are asking now is: Over the next 5-10 years, will Britain be better off on a lifeboat by itself, or on board the EU Titanic when it sinks? Our view is that...
Read More

Rigging The Market: Merrill Lynch to Pay $415M to Settle SEC Charges It Misused Customer Cash

The above is a headline of InvestmentNews.com (June 23, 2016) on another SEC settlement with a major financial firm for essentially breaking laws and regulations. Unfortunately, most people have gotten so used to it, they don’t even read them. However, if any person would commit these types of breaches, they would probably have a bigger problem than a settlement. The settlement amount of $415 million sounds like a slap on the wrist to many. InvestmentNews...
Read More

Wayne State University Replaces Math requirements with Diversity courses

American colleges are still nowhere close to focusing on teaching what students need most when they enter the workforce. For example, only 25% of US High Schools offer computer science classes. Now illustrating this point further, a faculty committee at Wayne State University has proposed adding a three credit hours requirement in diversity to the general education curriculum at WSU. It also recommended that WSU drop its university-wide requirement in mathematics, an idea that was...
Read More

Why Does the IRS Need Guns?

The Wall Street Journal has pointed out that the number of non-Defense Department Federal Officers authorized to make arrests and carry firearms (around 200,000), now exceeds the number of U.S. Marines (around 182,000). Here is a passage from the Wall Street Journal article about these non-Defense Department Federal Officers and the arms race: In its escalating arms and ammo stockpiling, this federal arms race is unlike anything in history. They pointed out that over the...
Read More

The Swiss People Say: “No Free Lunch Wanted Here”

“Universal Income” is the concept of the government giving a monthly check to everyone, whether they work or not. The Swiss call it basic income, but in the US people are pushing to use the term “universal income. “ The Swiss voted this weekend whether basic income should be put on a referendum. It would be 2,500 sf per month for each adult and 625 sf for each child. About 78% of the Swiss people...
Read More

Muhammad Ali Dies from Septic Shock in Hospital

The great boxer and poet, has left us. He was not only a boxer, but a great entertainer. I would look forward to him being a guest on Johnny Carson. Do you remember who that was? Unfortunately, we have not heard any reports on TV mention that he died in a hospital where he went for a different ailment. He had Parkinson’s. Here is what Newsmax.com wrote about it: “Muhammad Ali died of septic shock,...
Read More

Your Health: Big Brother Knows Best?

For about five decades, the FDA told people to eat carbohydrates like pasta and to avoid protein and natural fat. That was found to be totally wrong. It is now accepted that avoiding carbs is the way to greater health. Dr. Atkins was right about 35 years ago, when he proposed this in his trail blazing book, “The Atkins Diet.” He explained scientifically why carbs are very bad. During my major in Chemistry, I learned...
Read More

“You Have to Lie”

Never doubt how far central bankers will go to push their agenda. The current European Commission President Jean Claude Juncker is known for saying a lot interesting comments about monetary policy in the EU. Here is a quote from an interesting article from The Telegraph about some of Jean Claude Juncker most outrageous political quotations. The European Commission President Jean Claude Juncker is known for saying that when things get tough, “you have to lie.”...
Read More

Cutting The Cord

Check out an interesting article from Fortune about how Netflix is changing the concept of advertising with cable subscribers: An important trend that will be widely discussed later this year is that TV viewers are ‘cutting the cord,’ and cancelling cable TV subscriptions. Today we heard that Netflix, by cutting out TV commercials, saves its customers about 160 hours per year from force-fed advertising as apposed to watching cable TV instead. For many viewers like...
Read More

Japan: On The Path To Another Long Recession

The verdict is in: QE doesn’t work, and in fact does the opposite of stimulating. That’s our view and that of a growing number of analysts world-wide. Japan has implemented the largest QE policy (as a percentage of the economy) and has had the most miserable results. Overseas investors, which account for about 70 percent of the market value traded in Tokyo shares, bought a net 18.5 trillion yen between 2012 and 2015. Global fund...
Read More

Will Artificial Intelligence (AI) Control Our Future?

That is the big worry of Elon Musk, founder of Tesla, Spacex, co-founder of Solar City, and all around genius. Whatever he says should not be easily dismissed. At the Vox Media conference, CODE, in Los Angeles in June, he expressed his concerns about Artificial Intelligence. He is primarily concerned about “one large company,” he didn’t name that could control artificial intelligence and thus dominate all people. People guessed that he was referring to Google....
Read More

Closing The Escape Hatches

Europeans who want to take money into other countries will use the highest denomination currency notes. Some countries, like Italy, don’t like people taking money out of the country. Thus, they don’t print high denomination currency notes so that those who want to transport a substantial amount need a truck. Earlier this year, some articles appeared that the large currency notes should be retired. David Stockman wrote: In a recent interview, Executive Board member Benoit...
Read More

Free Speech vs The Media: Jeff Bezos of Amazon has some Words of Wisdom

Here is an interesting article from Business Insider about Jeff Bezos’s opinion on the conflict brewing between Gawker Media and billionaire Peter Theil.Bezos made a very insightful statement at the Digital Media conference in Los Angeles recently, attributing the statement to Confucius. It was very profound! When Bezos was asked about his opinion on the conflict brewing between Gawker Media and billionaire Peter Theil, he said, “Seek revenge and you should dig two graves, one...
Read More

Turkey’s Erdogan Warns Muslims

Articles from www.bbc.com Turkish President Recep Tayyip Erdogan has called on Muslims to reject contraception and have more children. In a speech broadcast live on TV, he said “no Muslim family” should consider birth control or family planning. “We will multiply our descendants,” said Mr Erdogan, who became president in August 2014 after serving as prime minister for 12 years. His AK Party has its roots in Islamism and many of its supporters are conservative...
Read More

“Free” Health Care Is Expensive

Last week many of the large US health care providers including Anthem, Blue Cross, Humana and others told its customer’s that they should expect their health care premiums to increase a lot as the effects of the Affordable Care Act take full effect over the next year or two. Here is an excerpt of an interesting article from the Wall Street Journal about the health insurers and their proposed premium increases: “Big health plans stung...
Read More

Consequences Of NIRP

EXCERPT from MauldinEconomics.com The Bank Pays You to Borrow In normal times, you borrow cash from a bank and repay it slowly over time. When interest rates go below zero, the bank might have to pay you. It’s happening right now in Denmark, where banks are paying interest to thousands of borrowers, instead of the other way around. The pressure is spreading, too. Homeowners in Spain and Portugal with variable-rate mortgages are demanding their banks...
Read More

Venezuela: How To Produce Inflation

The US Fed must be envious. The Fed has been trying to create inflation in the US for five years and failed miserably. They should go to Venezuela to see how inflation, and even hyperinflation, is created and then decide if we really want that. Surprise! Venezuela, the world’s most miserable country (according to my misery index) now has inflation of over 700%, compared to over 300% last year. Well, at least that’s growing. Everything...
Read More

Should the Weatherman Control the Weather?

As the economy goes into recession, there will be calls for the central banks to stop the deterioration and “do something.” But that is exactly the problem. Many ask, what should the Fed or the central banks do? Our reply: get out of the way and let economic forces readjust. It would be painful, but it would be over quickly if the central banks would stay out of the way and let all the bad...
Read More

Gold: The Ultimate Currency

Below are several charts from a www.goldchartsrus.com, which show the price of gold for people in several different countries, in their local currencies. It shows why people in weak currency countries buy gold in order to preserve purchasing power. As you can see, in many other countries, it has made a new all-time high. Gold has traditionally been a safe haven. But it is also the ultimate currency. It will become ever more important as...
Read More

The Trouble With Obamacare

As we know, Obamacare has caused a number of problems and headaches for people trying to find the best healthcare options. Read this article I came across recently. Here is an excerpt from the NY Times: AMY MOSES and her circle of self-employed small-business owners were supporters of President Obama and the Affordable Care Act. They bought policies on the newly created New York State exchange. But when they called doctors and hospitals in Manhattan...
Read More

Death By a Thousand Cuts

This is a well written article I came across recently by Ben Carlson on awealthofcommonsense.com. Here he examines institutional investment firms and how the consulting firms they hire actually add no value to the institutions. He also offers his suggestions on how consultants could shift their ways to benefit their clients. It’s an interesting read. Here is the article below: (via http://awealthofcommonsense.com/2016/05/death-by-a-thousand-cuts/) In the U.S., over $13 trillion of institutional capital relies on consultants for...
Read More

Allowing Perverts Into The Women’s Restrooms And Showers

Target customers protest. What a stupid way to lose millions of customers. According to an article on Glen Beck’s website: “Target is allowing creepy men to enter women’s restrooms — men who are not transgender, not dressed as women and not using the facilities. More than 1,200,000 people have made the pledge to stop shopping at Target.” “So yesterday, Bailey, who is our makeup artist, we’re sitting in the makeup chair, and you know how...
Read More

A “ROGUE WAVE” Coming in the Financial Markets?

A rogue wave occurs seldom, although more frequently than had been thought. It can be 85 ft, high. It will shatter ships like little toys. The same can be said about the financial “rogue waves,” which are becoming more frequent. There was the 1973-1974 devastating bear market when the Value Line index plunged 80%. That was followed by the 1980—1982 rogue wave, when inflation went to double digits and the prime rate topped out at...
Read More

Washington’s Bathroom Decree

Obama’s newest decree:  all schools must comply or lose Federal funding. Students can use any bathroom, girls or boys, and presumably any shower facility, according to what they consider their “gender choice.” Remembering my days in high school, and all the pranks, I am sure there will be thousands of boys now going into the girls shower after gym, claiming their choice is to be girls for that day and therefore they want to shower...
Read More

Turkey’s Emperor Dictates To The European Union (EU)

Turkey has been trying to be a member of the EU for a long time. It has always been rejected for obvious reasons. But now, with Germany’s Angela Merkel in the lead, Turkey’s self-proclaimed emperor, Recep Erdogan, is no longer asking the EU nicely for concessions, but demanding. In return for Turkey allegedly reducing the flood of Syrian refugees from Turkey to the EU, who are attracted by the generous welfare benefits, Erdogan is demanding...
Read More

Boots On The Ground

Salon.com writes this: The Obama administration has quietly deployed troops to help fight in Yemen over the past two weeks, with little public attention. Yemen now joins a series of other Middle Eastern countries in which U.S. troops are on the ground without declaration of war and approval from Congress, combating extremist groups that have benefited from U.S. policies. The military did not reveal until Friday, May 6, that it had sent troops to Yemen....
Read More

Productivity: The Real Cost Of Household Items

Here is an interesting read I came across about measuring productivity and the various differences in cost between products in the 1920’s versus today. It should make you think about the author’s point and see how far we have come through the advances of technology since then. The article below was written by Nick Colas of Convergex (via ZeroHedge). One way to consider the question (of productivity) is to look at what productivity-enhancing technology cost...
Read More

Once again, American voters have the choice of the “lesser of two evils.”

The challenge for prognosticators like us is to guess, and it is a guess, of who will be the president. And then you have to guess what will happen under the policies of either. The answer to the above is probably as difficult as determining if there was a universe before the ‘big bang.’ Trump is popular because he hates the people and policies that so many thinking and informed Americans dislike. Many may not...
Read More

If You Own A Rental Apartment Complex, Watch Out!

From www.westernjournalism.com  Jack Davis A new edict from the Obama administration has its roots in race-based thinking and a purpose that lurks below the surface, conservative radio talk show host Rush Limbaugh said Tuesday. The federal Department of Housing and Urban Development has issued guidelines saying that because there is “widespread racial and ethnic disparities” in the U.S. criminal justice system, landlords who refuse to rent to convicted criminals could “lack a legally sufficient justification”...
Read More

Alibaba

Alibaba : the Chinese company that we have severely criticized even before it became public, and warned investors to stay away, on May 5 announced a 39% rise in revenues. That may be as real as the China GDP of 6.7%. CNBC had a guest that day, Ann Stevenson-Yang of J. Capital Research, voicing some doubts about this number. She said that in China, there is one company with 80,000 freelancers who do nothing but...
Read More

UBI-The Next Catastrophe

UBI stands for ‘Universal Basic Income.’ It’s a concept that is now being floated around with articles in the major media. It will be the next big boondoggle, after the QE (quantitative easing) of central banks has turned out to be dud. Don’t take these as just “articles” though. We call them “trial” or “conditioning balloons.” These are plans already on the drawing boards. It just takes a public relations effort to get people to...
Read More

Controlling The Weather With Dangerous Chemicals

A program, apparently directed from the WH in Washington, is called ‘geo-engineering.’ Apparently this is a program designed to control the weather and global warming. Do you ever see the big, white trails at high altitudes behind airplanes in the sky? There are such things as ‘con-trails’ (condensation trails) which we all know to be normal and disappear in a few minutes. But the ‘geo-engineering’ trails last for many hours, dissipate in the sky, leaving...
Read More

Thank Big Government!

Not many years ago, GM made automobiles in Flint, Michigan and you couldn’t drink the water in Mexico . After many years of the government’s help, GM now makes cars in Mexico and you can’t drink the water in Flint!!

Silly Silicon Valley

I came across an article from Curbed San Francisco about how the real estate prices in Silicon Valley have truly lost touch with reality. We read a report where a 936 sq.ft. house built in 1921 in Palo Alto is currently listed for about $10 million dollars. It has two bedrooms and one bathroom. That’s over $10,000 per sq.ft., which is a lot. Of course, some buyers would consider buying it simply for the land...
Read More

The Annual Correspondents Dinner in Washington

This dinner is the annual event designed to present the illusion to journalists that they really matter to the politicians. Imagine, the alleged watchdogs of 315 million Americans can be bought with a ticket to an annual dinner. And they sit there, listening to so-called jokes, laughing or smiling politely, although they are the butt of many of the jokes. Their so-called “news organizations” even pay for the tickets of top administration people who sit...
Read More

US Politics: “Lucifer In The Flesh”

Former House Speaker John Boehner said he’d vote for Donald Trump. He called Ted Cruz “Lucifer in the flesh,” during a talk at the California University, according to the student newspaper. “I have never worked with a more miserable son of a b— in my life,” he was quoted as saying about Cruz. Cruz says he hardly knows Boehner and never worked with him. I have no comment as I have little good to say about...
Read More

Venezuela

Venezuela just instituted the “2-day work week.” Isn’t that wonderful! Each employee can only work 2 days a week. The head of the government must be getting advice from economists. The theory is that this will create more jobs. Other countries have tried something like this, but it always failed miserably. Economists making economic policies are bad enough in free economies, but in communist countries, run by leaders with limited intelligence, it is totally destructive.

The Demise of Apple

Apple reported the first sales decline in 13 years. But the Apple bulls are out in force. I say, “The bad news for Apple is just starting.” I have pointed out for two years that under the current CEO, there is a total lack of innovation. Apple’s only significant change is size:  larger, smaller. The company doesn’t listen to its customers. Perhaps the next “innovation” will be a different shape, perhaps round, or a pentagonal....
Read More

Greece: Showing the way to Depression

The next phase of the Greek crisis is coming now. There are 3 million retired people and only 2 million working people whose pension contributions become pay for the retired. That can’t work. At the same time, the country is flooded by the so-called refugees and has to take care of them. Large debt payments are coming due, and there is no money. Obviously, the EU has to “pretend and extend.” And that is how...
Read More

“ We Cannot Afford Another Draghi ”: Germany Attacks ECB

By Don Quijones, Negative interest rates, helicopter money trigger Clash of Titans. By Don Quijones, Spain & Mexico, editor at Wolf Street. Relations between the government of Europe’s biggest economy, Germany, and Europe’s most powerful financial institution, the European Central Bank, have soured to the point of curdling. The latest volley of barbed remarks came from Germany’s dour Finance Minister Wolfgang Schäuble, who has never been one to mince his words. Speaking at an awards...
Read More

How The Big Banks Cheat Their Customers

“We Are Taking Them To The Cleaners” – State Street Caught Stealing From Clients With Up To 1,900% Markups Submitted by Tyler Durden ZEROHEDGE.COM In a scene right out of Office Space, one week ago we read that TD Bank, the fourth-largest retail bank in Massachusetts, was pulling out its coin-counting equipment for “servicing” following reports that the machines were short-changing customers who came in to exchange their nickels and pennies for bills. As a...
Read More

The Politics Of Oil

The two presidential candidates for the Dems both want to put “fracking”, which made the US independent of foreign oil again, out of business. In the past, Secretary Hillary Clinton has supported fracking. But now that the winds seem to have changed in her party, the typical transformation in the candidates is also occurring. She stated, by “the time we get through all of my conditions, I do not think there will be many places...
Read More

Goldman And Wells Fargo Finally Admit They Committed Fraud

Here’s an interesting read on Goldman Sachs and Wells Fargo admitting to the fraud they committed ahead of the 2008 financial crisis. Below is the article in full as posted on zerohedge.com Goldman Sachs has finally admitted to committing fraud.  Specifically, Goldman Sachs reached a settlement yesterday with the Department of Justice, in which it admitted fraud: The settlement includes a statement of facts to which Goldman has agreed.  That statement of facts describes how...
Read More

Rigging The Market: Deutsche Bank Admits It Rigged Silver & Gold Prices…

Earlier this year we reported that the giant Deutsche Bank in Europe agreed to settle a lawsuit for DB conducting a multiyear rigging of the silver prices. In fact, DB had agreed to provide evidence of other large banks cooperating in the silver manipulation. Here is an excerpt from the article on zerohedge. Earlier today when we reported the stunning news that DB has decided to “turn” against the precious metals manipulation cartel by first...
Read More

Gender-Neutral Toilets

Los Angles is very progressive, as in Bernie, Hillary, and other politicians. Out with the old, and in with the new. That seems to be the motto in the Los Angeles Unified School district.  Read the full article from Fox News LA: “It’s just a toilet.” That was the name of the campaign but it’s not just a toilet to a group of student activists at Santee Educational Complex. Now a 15-stall bathroom is the...
Read More

Healthcare: Biggest “Growth” Drive

GDP is still growing mildly, at least using the flawed governmental numbers, which include fictitious jobs numbers because of “seasonal adjustments.” I believe that GDP growth will soon be negative. The biggest part of the alleged job growth is the HES (health, education, social services). Obamacare has necessitated the hiring of hundreds of thousand just to find their way through this maze of regulations. And these account for some of the alleged “job growth.” Health...
Read More

George Soros Warns Of An Existential Threat To Europe

The refugee crisis in Europe has George Soros in a tizzy. He is the billionaire who toppled the British currency years ago, making billions in the process. I have always suspected that he concluded making investments on things that you think may happen, such as currency crisis in a country as its debt becomes overwhelming, has the risk that it may not happen. Hedge funds, such as those of Soros, face that dilemma every day....
Read More

Unethical Wall Street Banks

On April 11, 2016 we heard that Goldman Sachs will pay $5 billion settle. The US DOJ said: “This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail.” JPMorgan Chase & Co. will pay more than $300 million to settle SEC charges claiming that the firm didn’t disclose...
Read More

“Regime Uncertainty”

Our friend, Dr. Steve Hanke, had an interesting article about why we periodically see long periods of economic stagnation. The Great Depression was one. The recovery attempt since 2009 is another. We would add the long 25 year stagnation in Japan. There are economists who believe these are secular (long term cycles) apparently coming from heaven or other defined places. Dr. Hanke doesn’t subscribe to this. He quotes a book by Robert Higgs, “Taking a...
Read More

Are We Being Poisoned By Fluoride?

by Brad Hoppmann, Publisher, Uncommon Wisdom Daily The world’s oldest and most-prestigious medical journal, The Lancet, has officially classified fluoride as a neurotoxin. This puts fluoride in the same category as arsenic, lead and mercury. A neurotoxin is a substance that inhibits the functions of neurons. Basically, neurons are cells that transport different types of information throughout the brain and allow it to function properly. Researchers noted that brain disorders now affect 10%-15% of all...
Read More

Coal And Global Warming

Our president calls global warming “the greatest threat to homeland security.” It’s not ISIS, Al Qaeda, Russia, or China. Washington has destroyed the US coal industry, and entire coal mining towns, to fight the controversial and unproven problem of global warming. Interestingly, NASA reported that the ice shelf in Antarctica is growing at a very high rate. From the NASA website:  Sea ice surrounding Antarctica reached a new record high extent this year, covering more...
Read More

Hedge Fund Problems Spread

Last year was one of the worst for hedge fund performance since 2008. We believe that the problems will now accelerate. Hedge Fund billionaire John Paulson has had a bad year. He made about $25 billion during the 2008 crisis by betting on a financial crisis. Now he needs cash. He is using his own personal fortune to guarantee loans to the funds. Bloomberg reported the Paulson pledged his personal investments in four of his...
Read More

Big Pharma Is At It Again: Dangerous Statin Drugs for Children

Years ago, Big Pharma was successful in marketing Ritalin and similar drugs for school children, through the school boards. It’s much easier to convince a handful of people, probably with vacations to some Caribbean resort, then to convince millions of parents that their children should take these terrible drugs. Then, Big Pharma market their vaccine for girls, Gardasil, against the human Papilloma virus, through schools. Another great success. A case in Texas revealed how they...
Read More

The Pain at Global Banks

The large global banks have achieved the dominance of the financial industry they have worked for, in many cases with their lobbyists in Washington. Smaller regional banks were pushed out of existence or forced mergers with the giants. Local community banks which in many cases were the only source of lending for small companies have closed. Now the big, money center banks have replaced them. But the money they suck out of the community is...
Read More

Money Outflows

(zerohedge.com) The Institute of International Finance (IIF) calculates that the oil slump has slashed petrodollar flows by $375 billion a year. Crude exporters were net buyers of $123 billion of foreign bonds and assets in 2013. Last year they were net sellers of $90 billion. China has also changed sides, becoming a seller late last year as capital flight quickened. Liquidation of reserves automatically entails monetary tightening within these countries, unless offsetting action is taken....
Read More

Turkey And Germany: Using Refugees As A Bargaining Tool

The battle for Aleppo in Syria is heating up again. Recently 35,000 Syrian refugees gathered in a camp on the Turkey border. Central EU countries are blaming Turkey for the flood of refugees and say Turkey should close its borders. That gives Turkey some leverage in bargaining with the EU. For example, it has wanted to be part of the EU for decades but has been rejected. When Turkey’s Prime minister Davutoglu visited, he only...
Read More

The Election Process

Political parties, not voters, choose their presidential nominees. That is what a Republican Convention Rules member told CNBC, a day after GOP front-runner Donald Trump gained more primary victories. “The media has created the perception that the voters choose the nomination. That’s the conflict here,” Curly Haugland, an unbound GOP delegate from North Dakota, told CNBC. There you have it. It is all a circus designed to let people think they have a voice. Have...
Read More

International Turmoil Spreading

UAE: THE MINISTRY OF HAPPINESS The United Arab Emirates would make Bernie (the candidate) green with envy. The ruler of the UAE is shaking up the government. New positions include a Minister of State for Happiness, who will have the responsibility to drive government policy to create social good and satisfaction, and a Minister of State for Tolerance, who will instill tolerance as a fundamental value in UAE society. Perhaps there will be an executive...
Read More

Will Europe As We Know It Cease To Exist?

The fertility rate is most important, but most people treat the numbers as a curiosity. Well, Europe, Japan, and eventually even China, will see their cultures shrink into oblivion. It is estimated that a fertility rate of 1.8, i.e. 1.8 children per couple, is “irreversible.” The Fertility Rate of Europe is currently 1.38, already below that estimate of 1.8. Europe will eventually cease to exist…at least with Europeans. Who will take their place? The descendants...
Read More

Demographics

Everyone on earth is getting older. Obviously! But what happens when people retire? Many people we knew deteriorate rapidly when they suddenly don’t have anything to do. They feel useless. You have to have something to work on. Keep the mind busy. Learn a language, write or start painting. Our friend Monte Guild (Guild Investment Management) assembled these astonishing stats: When Social Security was introduced in the United States in 1935, the retirement age was...
Read More

“The Establishment is frightened to death…”

…so writes the political correspondent for Bloomberg in an article in the New Yorker magazine. Here is an Excerpt: The establishment is frightened to death that Trump will win, but not because they believe he will harm the nation.  They are afraid he will upset their taxpayer-subsidized apple carts.  While Obama threatens to veto legislation that spends too little, they worry that Trump will veto legislation that spends too much. You can be certain that...
Read More

“Congress Fights Back”

That’s the headline on the “Daily Caller” out of Washington DC on the new overtime rules proposed by the Washington leadership. Here is an excerpt: “The Obama administration’s decision to drastically redefine overtime will hurt our workforce and our employers,” Republican Sen. Tim Scott said in a statement. “It will lead to reduced hours, confusion for job creators, and will limit growth opportunities for employees.” The rule change would essentially increase the salary threshold so...
Read More

Cutting The Cord

The FCC decided ON Feb. 18 that people can replace the cable box from their provider with a different box. Apparently, they would not have to pay for a bundle of channels, 90% of which they never visit. In this year’s 24/7 coverage of absolutely boring political campaign coverage, which is pushing all important international news aside, many viewers will use this as a reason to “cut the cord.” The total cost for leasing cable...
Read More

The Fed: Another “Accidental Info Leak”

(Bloomberg) Fed Accidentally Released Confidential Staff Projections by Christopher CondonCraig Torres July 24, 2015 — 8:08 AM PDT Updated on July 24, 2015 — 4:55 PM PDT The Fed said in a statement that projections prepared for the June 16-17 Federal Open Market Committee meeting were posted in error on a public website on June 29. Staff projections are normally released with a five-year lag when transcripts of FOMC meetings are published. The staff projections...
Read More

Banks Squirm as Congress Moves to Cut the 6% Dividend Paid to them by the Fed

Did you know that the Federal Reserve pays an annual 6% dividend to its shareholders, i.e., the member banks of the cartel? Must be nice, considering savers who had nothing to do with cratering the world economy, and failed to receive a taxpayer funded bailout, can barely earn 0.5% on their money. It’s also quite bizarre. How many other “public institutions” have private shareholders to whom they pay 6% risk free dividends? None, which once again...
Read More

Should the Government Support the Stock Market?

Two major nations are well known for the government’s direct support of the stock market by buying ETFs or investment funds. The US support actions are not publicized. Last years efforts by China to halt the stock market crash may have been learned from the US Federal Reserve. Robert Heller, former Governor of the Federal Reserve, said in a 1989 WSJ interview. “The Fed could support the stock market directly by buying market averages in...
Read More

The “Flaw”

Former Fed chairman Alan Greenspan confessed in testimony before Congress after the 2008 crash:  “I found a flaw in the structure of how the world works.” At least he had the courage to admit it, although he should have said “a flaw in my theory….” On July 29, Dr. Greenspan warned on CNBC that the 9% per year growth in entitlements since 1965 will eventually lead to a crisis. He is so correct. It was...
Read More

Infiltration

The New York’s Daily News, broke the story, that 150 passengers arriving at New York’s JFK Airport from Mexico Friday evening were permitted to stroll through the airport and out without stopping at Customs and Border Protection. Authorities called it a “glitch.” Disembarking passengers “just followed” a gate agent. To make matters worse, the security breech came just two days after ISIS released a video threatening New York City with a terrorist attack. American Airlines, issued...
Read More

Chem Trails: The Poisoning of America

Ten states account for about half of all legal barium released in this country. Montana came in No. 9 with 7.9 million pounds of barium. Last week we got hit five days in a row with these chem trails. I called U.S. Sen. Steve Daines’ office and they told me they received a lot of calls last week. One was from an engineer at Boeing. He said these were not contrails from passenger jets. He...
Read More

Puerto Rico: A Slow Motion Default

The Puerto Rico Government Development Bank (GDB) made a $355 million Dec. 1 debt service payment from money that it did not have on its balance sheet. Here is what David Kotok’s Cumberland Advisors wrote in an interesting article: Island officials have stated that the Commonwealth has begun clawing back money from highways, the convention center, the IFA, and the metro. In doing so, they have, in the words of the governor, “begun to default on...
Read More

Is Turkey Helping ISIS?

Russian has now presented evidence, with photos, videos, and documents, that support Russia’s claim that Turkey is helping ISIS, especially as a financing vehicle via oil purchases. Here is what the website www.rt.com (Russia) says: For the past two months, Russia’s airstrikes hit 32 oil complexes, 11 refineries, 23 oil pumping stations, Rudskoy said, adding that the Russian military had also destroyed 1,080 trucks carrying oil products. “These [airstrikes] helped reduce the trade of the...
Read More

Secret Side Deals with Iran

Now the media (Fox) has found out that a side deal between the IAE and Iran, as part of the Iranian Nuke agreement has this inspection requirement:  the inspection will be performed by Iran itself, to ascertain that Iran is complying and not making nukes. The American negotiator should be relieved of duty if this is true, and undergo psychiatric and other examinations. No wonder Americans are falling in love with Trump. He is the...
Read More

Danger: Oil Tank Farms

Cushing Oklahoma has the largest storage facility of oil in the US. It’s a small town of about 10,000. But it presents a great danger to oil interruption in the country. Obviously, it’s a great target for terrorist. But a greater danger may come from earthquakes. Here is a brief excerpt for a Bloomberg.com story: After the shale boom added millions of additional barrels to Cushing, its tanks swelled to a peak hoard of more...
Read More

Remembering a Courageous Lady, Mrs. Nancy Reagan

What I consider the greatest first lady of the century, Nancy Reagan, left us on Sunday, March 6, 2016. She passed away at the ripe age of 94. I will never forget the Reagans. My beautiful wife and I were graciously invited to dinner by a wonderful couple from Seattle. My wife had recently arrived from Spain. At our dinner table with us were only the couple from Seattle, Mr. and Mrs. Reagan, and the...
Read More

Sovereign Wealth Funds: The Need for Cash

Many emerging countries had good cash flows during the commodity boom and when oil was around $100. That excess cash was put into governmentally owned investment funds, usually called Sovereign Wealth Funds (SWF). They invested this cash around the world, much of it in stocks. That helped to boost stock markets. Now that those areas are in deep bear markets, the countries have big negative cash flow. They call on their SWFs for needed cash....
Read More

IRS is Hacked

It is now disclosed that the IRS had a breached and 344,000 tax returns were stolen. These can be used to get illegal tax refunds and put to other use. So much for letting Washington have a backdoor into devices protected by private sector encryption.

Do We Need The “Trump Wall?”

Donald Trump says he would build a big wall along the entire Mexico-US border. First of all, we should not call it “Trump Wall.” Freedom Wall would be better, as it would help to protect the freedom of all Americans. Secondly, such walls have been built many times throughout history. Many scoff at the idea. But is it outlandish? Israel build a security fence. Here are the stats of before the security fence and after:...
Read More

Europe: A “Deliberate Crisis?”

The liberals have had their goal for decades that their agenda can only be carried out when there is a crisis. An article in Zerohedge quoted the former head of the Bank of England basically saying that. Here is an excerpt that quotes an article from 2008 by AIG on this topic: 2008 AIG report predicted that Europe would create a financial crisis (as well as an environmental crisis, as well as terrorism) in order...
Read More

The Invasion of Europe Gets Violent

A news item from SLOVENIA: Muslim migrants set fire to the Brezice refugee camp and proceed to take selfies. Check it out — he’s making the victory sign… The migrants demand that they be allowed to continue their journey on to Austria and beyond. This camp is in Slovenia, where now there are more Muslim migrants than actual Slovenians. The goal is to destroy the refugee camps in order to let the invasion continue into...
Read More

What Others Write:

Bill Holter, Holter-Sinclair collaboration (Jim Sinclair’s blog) Jim Sinclair became very well-known and successful as a leading investor in the late 1970’s. His associate wrote the following: Please understand this, “policy” and central banks are doing whatever they can to keep investors away from the exit door because they know there isn’t one.  Central banks all over the world are “buyers” of nearly all things paper, do we really have “markets”?  Anywhere? In the US...
Read More

The Road to Hell, CNN “America in Iraq”

CNN had a great documentary of the last war of Bush Jr. against Iraq to topple Saddam Hussein. There was no plan who was going to run Iraq after the US invasion, schools were closed, no garbage collection, no water, no sewer, no government. It was like the “Keystone Cops” taking over a country just because they had superior weapons, and then not knowing what to do. All the data on weapons of mass destruction...
Read More

Global Warming

According to the Federal agency, National Oceanic and Atmospheric Administration (NOAA), there has been no increase in the temperature of the earth for the past 17 years. With all the talk now about the huge hurricane in Baja California, and that it may be due to ‘global warming,’ the official fact is that the number of hurricanes has declined over the past two decades.

The Astonishing Cost Of Government Regulations

Dr. Ben Carson put a number on it: he says last year there were 81,000 pages of new regulations. The cost to the country of all the regulations is $2 TRILLION per year. The US has spent $19 TRILLION on the “fight against poverty” over the past few decades. Result: we now have a record 48 million people on food stamps (cards). The government has made all these people “welfare addicts.” You don’t have to...
Read More

Congressional Hearing

“HHH” (her highness H), in a marathon hearing, defended what happened when a US Ambassador and 4 other Americans were killed in Libya. Many Americans probably tuned out because of the length of the hearing. The ‘talking points’ of her team afterwards were very skillful. The media immediately came out with the story that the GOP came off very poorly. But the ‘theory of propaganda,” according to Edward Bernays, the father of propaganda theory, is...
Read More

Global Warming Summit in Paris

21 nations are meeting in beautiful Paris to have dinners and luncheons of caviar, Foie Gras, and other delicacies. Oh yes, they will also discuss what is advertised as “the last chance” to fight the greatest threat to mankind, greater than terrorists: global warming. We wonder, why is it the last chance? Here is an article on a meeting held in Texas recently by a number of leading scientists on the subject. They have a...
Read More

Security Failure

The TSA spent $160 million on the new body scanners at the airports that make us feel so secure. But in tests, where the systems were tested with teams of people going through the check with simulated explosives, 95% were missed by the TSA check. That’s what citizens get for their tax money. According to the Huffington Post, Michael Chertoff, former head of Homeland Security, formed his private consulting firm, The Chertoff Group, immediately when...
Read More

Trump

It doesn’t matter if you like or don’t like Trump. The great benefit is that he awoke and unified Americans. Finally the people feel that there is one person who is on their side, not the side of the special interests, the lobbyists, and the corrupt. Furthermore, he sends a message to Washington that they better change their ways. Americans are very upset and are finally willing to do something about it. This is not...
Read More

Capital Controls

Excerpt from an article by Dr. Steve Hanke of John Hopkins University: Capital controls as a panacea for economic ills are nothing new. Their pedigree can be traced back to Plato, the father of Statism. Inspired by Lycurgus, the tyrant of Sparta, Plato embraced the idea of a non-convertible currency as a means to preserve the autonomy of the state from outside interference. Before more people come under the spell of capital controls, they should reflect...
Read More

Presidential Material

The bar to becoming president has become lower for several decades. But now it has hit an all-time low. An aging failure in life, someone we would call a Marxist, is ahead in some polls of the other Dem candidate for the job of US President. It’s Bernie. Here is an excerpt of what Investors Business Daily wrote: “I never had any money my entire life,” Sanders told Vermont public TV in 1985, after settling...
Read More

Why Are Millions Of Americans Supporting Trump?

Here is an example of why: The sovereigntyproject.com writes, President Obama has lifted a long-standing ban on immigrants with three types of sexually transmitted diseases (STDs): chancroid, granuloma inguinale, and lymphogranuloma venereum. So what about the costs associated with the new rule change on the three remaining STDs? Don’t worry, Obama’s HHS secretary ran the numbers and explained in the Federal Register that “The results are not economically significant, i.e. more than $100 million of costs...
Read More

White House Loses Again At Supreme Court

Washington (CNN) The Supreme Court on Tuesday dealt President Barack Obama a blow by moving to temporarily block his administration’s rules to limit greenhouse gas emissions from power plants. Reacting to a lawsuit from 29 states, as well as the energy industry, justices blocked the Environmental Protection Agency’s Clean Power Plan from going forward while the rule is challenged in court. The decision means that Obama now has two major legacy actions — immigration and...
Read More

The U.S. Government’s Big Weapon Mess

Pakistan’s nuclear arsenal has grown by 44% in the past 5 years according to reports. They now have a big supply of tactical, battle field nuclear weapons. The prime enemy is India. The danger is that terrorists will arrange to buy or steal some of these tactical weapons. Washington has been trying to reach an agreement to limit the expansion of nuclear weapons, so far without results. Add to this brew the missile and nuclear...
Read More

Nigeria—Africa’s Largest Economy—In Crisis

Nigeria just asked the World Bank and African Development Bank for $3.5 billion in emergency loans. It has run out of dollars. The currency has collapsed. JP Morgan removed Nigeria from its influential Emerging Markets Bond Index last week. If the policy now is to remove all troubled countries from the indices, there will never be a recognized bear market in these indices. They will become worthless. In the end, there will be nothing left...
Read More

King Of Jordan Snubbed By White House

Joel C. Rosenberg, accomplished author who has written some fascinating books about the Middle East, wrote this shocking item:  recently… “There is growing evidence that ISIS is experimenting with chemical weapons,” and that “the number of foreign fighters [has] hit a new high.” Last year, just 20,000 foreign fighters were operating as part of the ISIS shock troops, Fox reports. Now that number has skyrocketed to 36,000, and they come from 120 countries. Former deputy...
Read More

Disarming America

The president announced his new Executive Action, not “order,” to make it more difficult to buy a gun. According to Senator Chafiz, the goal is not to make the country safer. If that were the motivation of the leadership, why did the White House release 66,000 illegals who were in jail convicted of crimes. Instead of deporting them, they were let out onto the streets. Why did the leadership give thousands of assault weapons to...
Read More

Are ETFs Safe?

The NYSE halted trading on various occasions lately. The most notable one was on July 8, 2015 and then on August 24, 2015 after the China crash. The latter was in part discussed above. CNN Money wrote:  “The selling on Wall Street was so dramatic Monday (Aug. 24) that it triggered unprecedented emergency freezes on stocks. Stocks and exchange-traded funds were automatically halted more than 1,200 times, according to Nasdaq.” Some big ETFs declined 30%-43%...
Read More

Who Benefits From Blocking The Keystone Pipeline?

The following is from econmatters.com One of the key elements of anything that goes on in this world whether it be warring factions, religious fights, political debates, financial markets, educational debates or even environmental concerns is what is really going on behind the scenes, and it usually involves money. The Keystone Pipeline debate isn`t really about the environment at all, but rather money. I find it rather convenient that one of the biggest supporters of...
Read More

Police Tase Shackled Man To Death

The man committed no crime and was taken to a hospital by police, but then the police decided not to take him inside, but took him back to the squad car. There they tased him 20 times with 50,000 volts. He put up no resistance. He died. The video came to light recently. Here is the video: http://www.msnbc.com/msnbc/driven-hospital-virginia-man-tased-shackled-and-dies-police-custody One must ask, how are applicants to police departments screened? I spoke to one new officer, and...
Read More

Abrams Tanks: Building Dinosaurs

2000 Abrams tanks are sitting in the desert, mothballed. Yet they are still being manufactured and bought by our government. The Dept. of Defense doesn’t even want them. But the politicians, especially from the state of Ohio, do. It creates jobs. The recent defense spending bill includes $120 million for tanks that the Army has repeatedly said it doesn’t want. For three years, the Army in numerous Congressional hearings has pushed a plan that essentially...
Read More

Fracking Waste Water Injected Into Aquifers In California

State records show that in California it was allowed to inject the poisonous fracking water back into the crowd, into aquifers, where it mixes with potential drinking water. Read the full details via Wolfstreet here. The state calls the issuing of permits to do this a “paperwork issue.” The say “there is no evidence of it harming people.” It’s your bureaucrats at work. Of course, the companies doing the injecting are also guilty. But we...
Read More