Gallup first began asking if Americans trusted the mainstream media in 1972. America’s trust and confidence in mainstream media stood at its highest level back in 1976 at 72%. Of course, that was due to the investigative journalism regarding Vietnam, and naturally Woodward and Berstein, with the Watergate scandal. Following that period, the media began to attack the right with Reagan. By the late 1990s, the Americans’ trust in the media fell steadily into the low to mid 50% level.

Following 2005, the trust in mainstream media dropped into the mid 40% range. It has consistently been below a majority level ever since the 2007 economic decline. However, after the 2016 election and the extreme bias for Hillary, where virtually 99% of mainstream media deliberately tried to manipulate the people to vote for Hillary, the trust factor has collapsed to 32%. When they polled just conservative Republicans, it was 14%. So the 32% level is the average American.

Our models on the confidence in American mainstream media using the Gallup Poll data projects a sharp decline into 2019/2020, which is the bottom of the current 8.6-year Economic Confidence Model. This will be 43 years from high. Note that 2007 was 31 years from that peak. It was 2007 and the collapse in the economy that has marked the collapse in public confidence in government and the media.

We should expect that the media will viciously attack Donald Trump in a futile effort to cling to some level of importance and to desperately try to demonstrate that they were not wrong with 99% of the media endorsing Hillary. But the media willingly conspired to make Hillary president. They will now try to vindicate themselves by trashing Trump at every possible chance. They will now fuel the civil divide and help lay the foundation for the collapse of the United States itself by turning left against right. Even the New York Post wrote that what they were witnessing was the end of journalism. They will do everything to try to change Congress in 2018. It appears that will be their last stand. The younger generation does not buy newspapers and magazines. Their end is near.

Trump summoned the mainstream TV media to Trump Tower for a meeting. Whether he can persuade them to stop the supporting of civil unrest remains to be seen. Lester Holt, Charlie Rose, George Stephanopoulos and Wolf Blitzer all headed to this private meeting. All have demonstrated outrageous bias and have disgraced the very purpose of a free press as they all tried to influence the people rather than report the news. Even Saturday Night Live made fun of how biased mainstream media has been.

Erdogan has admitted that he is invading Syria to depose Assad’s government. We reported back on August 25th, 2016 that this was the most likely outcome of his invasion on August 24th. Indeed, August has been the time for starting war. Joe Biden went to Ankara last week on a mission to repair U.S.-Turkey relations, but actually endorsed Turkey’s “Operation Euphrates Shield.” He also claimed that the U.S. provided air power. Obama may lack the support to invade Syria, but he has not given up his quest to create a Middle East War before he leaves office. If he can create a war now, Trump will be saddled with the crisis when he has said no to nation-building ventures like this one.

Given the fact Putin began bombing in support of Syria precisely to the day of the ECM, this highlighted that Syria will be a key focal point for this ECM wave and the War Cycle. So pay attention.

It was not until late in the European session did we start to see much movement and even that was in oil. In Asia we saw yet another quiet with the JPY continuing with its strengthening theme and the Nikkei reacting accordingly. The PBOC set the Yuan at 6.8915 whilst the off-shore plays well into the 6.92’s. Tomorrow we hear if anything is to become of the OPEC meeting but as we started oil did decline over 4% to close in late US trading around $45.50. Shanghai and HSI closed mixed +/- 0.3% with HSBC and Stand Chart dragged a little on the HS as rumours circulate of a headcount culling. There were also rumours around that both of these banks could suffer upon the BOE’s stress test results.

Ahead of more data and central bank playing we saw performance for banks in general but especially Italian. Even BTP’s were bid today after the ECB said they plan to increase their purchases if there is any undesired effects following Sunday election. As the oil price decline came late in the day most European indices closed firmer. The ECB and their relentless support maintains yields/assets within a narrow range that feels can only be broken by time. It will be interesting to see how European markets hold up once the FED starts to raise rates and the capital flow increases.

Consumer Confidence came in much better than expected (107.1 against expectations of 101.2) and a 3.2% print for GDP but still the market tended to hold its ground ahead of big numbers later in the week and of course the Italian vote (Sunday) and the ECB next week. We did see the NASDAQ pushing ahead and in late trade was up around 0.5%, whilst the DOW and S+P saw small but encouraging gains as they drifted into the close. Financials have performed in recent days as more talk of rolling-back the excessive regulations continue to push optimism.

As we approach month end and despite todays economic releases we saw gains in the Treasury market today recovering some of the recent curve steepening. 2/10 were last seen trading +121bp. US 10’s around 2.30%. German Bunds were not part of the European rally as the ECB probably has enough of those for the moment. However, peripheral markets did benefit on next weeks ECB purchase plans with rallies particularly seen in Italian BTP’s. 10yr Bunds closed 0.22% (+2bp) which closes the US/Germany spread at +208bp. Italy 10’s closed 1.94% (-12bp), Greece 6.80% (-3bp), Turkey 10.77% (-2bp), Portugal 3.58% (+1bp) and UK Gilts 1.37% (-1bp).

What is really disturbing is just how far politics has fallen. The FBI released Huma Abedin 302, or the notes on her interview with the FBI. It is becoming painfully clear why Obama would never indict Hillary and may provide her a pardon to protect himself. Abedin told FBI agents she “had to tell the White House” every time Hillary Clinton changed her email address to make sure Obama’s device would accept it. Therefore, Obama outright lied saying the first time he heard of Hillary’s private emails was when the New York Times broke the story.

Abedin says she had to notify Obama of Hillary’s private emails so he knew what she was doing. The trail of evidence with Norway and Obama being given the Noble Peace Prize for nothing  means that Obama was clearly a co-conspirator with Hillary. No wonder the FBI and Justice Department have stood down. They had to otherwise Obama could be criminally charged as well.

Politics has definitely found a new low.

Hillary Clinton’s ties to Google, CNN, PBS, and The New York Times illustrate the conspiracy among these organization who tried to help Hillary be crowned leader of the free world. New York Times Publisher Arthur Sulzberger Jr. has admitted that his paper was unconstitutionally biased and disgraced the very principle of the First Amendment. Sulzberger admits the paper was biased by saying they underestimated Donald Trump’s support among American voters. He then claimed they would “rededicate ourselves” to the newspaper’s standards of “honestly” reporting news. At least he admitted they were rigging the game.

A new study has been released on Google and the rumors that they skewed their search engine to support Hillary. They reported: “Among our key findings were that top search results were almost 40% more likely to contain pages with a “Left” or “Far Left” slant than they were pages from the right. Moreover, 16% of political keywords contained no right-leaning pages at all within the first page of results.”

Of course, these stories of Google manipulating search returns to support Hillary have been all over the internet. Google’s Executive Chairman Eric Schmidt was forced to come out and state publicly that Google will not endorse Former Secretary of State Hillary Clinton or Donald Trump for president given all the allegations. Schmidt stated, “We have not taken a position on the American election and nor do I expect us to.” 

Eric Schmidt worked with a technology focus to help the Clinton campaign. He is also an adviser to the Pentagon. He is linked to government and appears to have manipulated the Google search engine to benefit Hillary. The video itself is a very interesting example comparing Goggle, Yahoo, and Bing. There was obviously something serious wrong with the Google search engine when they typed in Hillary.

Google has called its integrity into question and one must ask what is going on here. If I were Trump, I would immediately propose legislation to make this a crime. If anyone in such a position deliberately attempts to manipulate the people, it should be life in prison, or death — their choice. Those who work for Google must be shocked to have the integrity of who they work for questioned in such a manner. Perhaps we need a another Snowden to emerge from Google to show how dangerous this can be.

The press has been routinely creating fake news reports to start a war. This is a serious issue for the press is conspiring against the people to create war, sell climate change, and rig elections. This is by no means something new. They taught me in high school history class about how the press started the Spanish-American War by reporting that the Spanish attacked a US ship, which never happened.

We have fallen into a cycle of yellow journalism that Pulitzer began. Pulitzer created the Spanish-American War by making up shit to sell newspapers. The famous Pulitzer Prize given by Columbia University is named after the father of yellow journalism – go figure! This is why the press and the Republican elite supported Hillary. They need to rig the game.

The most fascinating aspect of war has been the government’s consistent lies to the American people to move the nation to war with every single event. This has won them the ability to wage every single war up until Obama’s attempt to invade Syria. It did not fly. This was really the beginning of the collapse in public confidence for the peak in government on our 224-Year Cycle of Political Change was 2013 — the second swearing in of Obama.

The sinking of the Lusitania is very disturbing. The U.S. was smuggling arms to Europe on passenger ships, and putting civilian lives in harm’s way for political reasons. The Germans even took an advertisement in the NY newspapers warning civilians DO NOT TRAVEL on the Lusitania. When they sank that ship, the U.S. turned and said how cruel the Germans were to attack a passenger ship.

Then there was the Operation Northwood, which was a proposal of the Department of Defense. The Joint Chiefs of Staff would have employed CIA operatives to commit acts of terrorism against American civilians. They would then blame the Cuban government to justify a war against Cuba. The proposals were rejected by the Kennedy administration and have long been part of the reason people support the theory that the CIA is responsible for the killing of Kennedy.

Obama, who has made a mockery out of the Nobel Peace Prize, attempted the standard lie to invade Syria, but the American people rejected it because they became tired of the lies. There were no weapons of mass destruction in Iraq, and Iraq had nothing to do with the 9/11 attack even in fake allegations. The failure of Obama to “sell” the Syrian war to the American people noted the shift in confidence from public (trust everything) to private (trust nothing).

Wherever there is military action involved, there are lies to further another agenda. The benefit of a private wave is that people begin to distrust government. However, when the war cycle turns up it warns of a rise in civil unrest that can go as far as a new age of revolution if government does not stop trying to manipulate the people for nonsense.

Make no mistake, the political manipulations for wars and elections are pervasive. The EU staged a coup in Italy to get rid of Berlusconi because he wanted to take Italy out of the EU. Not only is the press is conspiring with government, of course the bankers are as well. The bankers all said they would leave Scotland if it voted to exit the UK. Republicans were trying to rig the primary to stop Trump. The evidence has poured in how Hillary manipulated the Republican primary to ensure Trump would win because she thought she could beat him and ran a very divisive campaign.

The movie “Wag the Dog” was based on how things really operate. They used the press as a co-conspirator to manipulate the public. This is also why this election has resulted in the collapse in public confidence in the mainstream press. True, the New York Times has admitted they were biased, but they have protected the bankers and reported fake news on Syria.

Asia had a fairly quiet trading day but ahead of so much market moving content this week it really should not be such a surprise. Nikkei closed almost unchanged at -0.13% but that was a healthy performance given the uncertainty drove the dash back into safe havens again, notably the JPY. The Yen traded from strength to strength into the US session closing at the highs of the day at 112.30 (+0.6%). Safe havens continued with gold up around 0.9% continuing the talk that India investigates closer import rulings, however currently up $11 so far on the day. Both Shanghai and Hang Seng closed up around +0.5%.

Oil through the 50 day MA in today’s trading and is currently up around 3% on the day on the anticipation of an OPEC deal and more controlled output/supply – keep an eye on the OPEC meeting Wednesday. Despite all the optimism surrounding the oil market it certainly did not help European stocks with all key indices closing on or near their days lows. DAX closed the day over 100 points lower down -1.1%, FTSE -0.6%, CAC -0.9% and IBEX -0.65%. The Euro closed little changed despite the weekend French vote but with so much in the wings a little profit-taking clears the air. Financials were one of the lagers today yet again in Europe as uncertainty surrounds the currency, leadership, BREXIT, Turkey all as the velocity of money continues to decline in Europe.

Weaker overseas sessions implied a lower opening for the US with Financials leading the opening lag. Throughout the morning dealers were comfortable running limited positions ahead of a data full week ahead. We did see a bounce in the VIX today but then having been beaten-up so badly lover recent highs todays move is not surprising. interesting that the Russell is up 13% versus S+P +4% since election.
2’s closed +1bp at 1.12% with 10’s closing -3bp @ 2.33% which closes the 2/10 curve at +121bp.
German Bunds closed 0.2% closes the spread US/Germany at +213bp. Italy 10’s closed 2.08%, Greece 6.82%, Turkey 10.8% (-17bp), Portugal 3.56% and UK 10yr Gilt 1.39% (-4bp).

Bunds 0.2% (+219bp US/Germany)

California is being used to justify handing the crown to Hillary despite the fact she conceded claiming she has 2 million more votes for her. But California is where her margin was 3.7 million over Trump. That means Trump beat Hillary even in the popular vote in the rest of the nation excluding California by 1.7 million. This notion that the “American people” voted for Hillary is not exactly on point.

The allegations of large scale voter fraud in California to keep Bernie down for Hillary are widespread. There was even a recent study by Stanford University that established Hillary Clinton‘s campaign pre-rigged the system to steal the nomination from Bernie Sanders.(stanford-university-confirms-democratic-election-fraud-your-news-wire) Then there were the DNC emails showing the conspiracy within the Democratic Party to steal the nomination from Bernie. This was never more apparent than in California where Bernie Sanders voters were likely robbed of a legitimate candidate—and they know how it happened and who is to blame. So is California justification to Hand Hillary the crown?

This claim that Hillary won the popular vote is interesting. If we exclude California’s 3.7 million margin for Hillary over Trump, that means Trump got 1.7 million more votes than Hillary in the whole country eliminating California. She is claiming perhaps the votes were hacked in Michighan, Wisconsin, and Pennsylvania. What about California? If it was rigged for her against Bernie, can it be trusted at all? California is the most left-leaning state in the union. They tax the highest as if you lived in Germany. If you live in California, stay away from dividend stocks and get out of the state if you plan to retire. In California, the top rate is 13.3%. Hawaii comes in not far behind at 11%. And California is in an endless cycle of raising taxes because it is incapable of managing its affairs. The worse states to retire in are the Blue (Democratic States) with New York the WORST and California in the top 10. You work hard your whole life and then they still demand more even when you no longer work. So much for caring for the average working person.

The likelihood of voter fraud with individuals voting twice or deal people magically voting is really quite low. The AP citied a study of Loyola Law School that found just “31 instances involving allegations of voter impersonation out of 1 billion votes cast in U.S. elections between 2000 and 2014.” In yet another study by the Brennan Center for Justice at New York University Law School, they reported that they “found many reports of people voting twice or ballots being cast on behalf of dead people were largely the result of clerical errors that suggested wrongdoing when none had occurred.” They added: “Voter fraud is so incredibly rare that it has no impact on the integrity of our elections…You are more likely to be struck by lightning, more likely to see a UFO, than to be a victim of voter fraud.” So a recount is rather absurd from this perspective. The only way to challenge such a vote is to claim rigging by those counting. That is, after all, what Stalin said: elections are determined by those who count, not those who vote.

The entire election cycle seems to reflect Karl Marx’s view that supported his theory of a totalitarian state:

The oppressed are allowed once every few years to decide which particular representatives of the oppressing class are to represent and repress them.—Karl Marx

The Washington Post was once respected for this is where Woodward & Berstein broke the story of Watergate that took down Richard Nixon. But their endorsement of Hillary was way over the top: “The Democratic nominee is not the lesser of two evils. She is a choice Americans can be proud of.” (Adriana Usero, Julio Negron/The Washington Post). The Washington Post took a complete about face with Hillary compared to Nixon. This calls into question their impartiality and exposes the paper as just a propaganda one-sided reporter with Marxist roots. Nixon just so happened to be a Republican. Had he been a Democrat, they would no doubt have still endorsed Nixon and ignored any wrongdoing as they have done with Hillary.

The Washington Post is actually blaming Putin for Hillary’s loss. The logic is stunning. They blame Putin for hacking the DNC and handing the docs to Wikileaks to defeat Hillary. They assign no blame to the shenanigans of the Democrats and they do not address the content of the emails, which demonstrate that the Democrats conspired with the media to raise Trump as the Republican candidate and then continue to tear him down in hopes of crowning Hillary as America’s first family once again. They say Putin hacking the DNC was the most “alarming story” during the election. In other words, this is like blaming the guards who caught the intruders that turned out to be Watergate. After all, if they had been drinking coffee and eating donuts or just sleeping as they should have been doing, then Watergate would never have been exposed.

The Washington Post is the mouthpiece of the “Democratic establishment” conspiring against the truth and the people of the United States simply to further a Marxist agenda. They published Larry Summer’s calling for the end of the $100 bill. They would endorse the surrender of all liberty to further the Marxist agenda of the left. This is a very said day for journalism that has become propaganda.

We are entering a very dark phase in this battle to retain our liberty. A proposal now being whispered behind the curtain in Europe is to impose a tax on withdrawing your own money from an ATM. The banks support this measure as a whole because they see this as preventing bank runs.

Nobody will look at the direction we are headed. I am deeply concerned that these type of proposals will send the West in a real revolution not much different from that of Russia in 1917. The divide between left and right is getting much deeper and the left is hell bent on stripping those who produce of their liberty and assets. This type of confrontation is in line with our War Cycle, which we will update in 2017.

This is the most dangerous period we are heading into for governments will respond only in their own self-interest to survive. The socialists hate those who produce. That is just the bottom line. Nobody should have wealth more than they and this is the same human emotion that has cost tens of millions of lives in civil conflicts through out the centuries. Proof this is a persistent problem is the fact that even the Ten Commandments state clearly that socialism is wrong: “You shall not covet your neighbor’s house … or anything that belongs to your neighbor” (Exodus 20:17).  Nevertheless, this is repuidiated by socialists who say it’s not fair that anyone has something more than they do. This material jealousy has been the source of so much death throughout the centuries because it has been exploited by the ruling class to justify their theivery.

We will review all our models and update this after the U.S. inauguration since the socialists are trying to figure out how to steal the election from Trump. There is no way to overturn Michigan, Wisconsin, and Pennsylvania without fraud and they need all three overturned to claim victory. This will not end nicely. The divide will only get bigger. The future is anything but stable and safe.

The war on cash is in full swing. The whispers behind the curtain are starting to get louder. The headlines in Australia demonstrate how the press is already conspiring against the people. The new slogan rising is Cash is for Criminals. ABC of Australia ran the story:

Cash is for criminals: Why we should scrap big notes