Numerous stories are coming in from Texas stating that early voting machines are changing Republican votes to Clinton. This is not a single conspiracy — early voting fraud is becoming a widespread complaint in Texas. This is going to be a contested election for sure. Our models are showing November as an important turning point. So the election process is part II of our Year From Political Hell.

A new disease is starting to appear that is polio-like in nature and can paralyze children. This appears to be AFM, or acute flaccid myelitis, which is normally rare. The number of cases has doubled in the past year. In Seattle, Washington, eight children have been admitted with what appears to be AFM.

Acute flaccid myelitis is a rare illness that affects a person’s nervous system, specifically the spinal cord. Anyone can contract AFM from a variety of causes including viral infections. Polio was eliminated from the United States back in 1979. According to the CDC, this polio-like disease has been confirmed in 50 cases in 24 states from January 1­–August 31, 2016.

Numerous stories are coming in from Texas stating that early voting machines are changing Republican votes to Clinton. This is not a single conspiracy — early voting fraud is becoming a widespread complaint in Texas. This is going to be a contested election for sure. Our models are showing November as an important turning point. So the election process is part II of our Year From Political Hell.

QUESTION: Mr. Armstrong; the press is out in full force supporting Hillary and trashing Comey and the FBI. You said before anyone, that your sources said there was more than the FBI and that intelligence was involved. Can you elaborate on that at all?

PG

ANSWER: I do not really like to reveal too much. I will say this for you can at least follow the breadcrumbs yourself. The reason why “intelligence” is also deeply concerned is that the very countries who Hillary herself has acknowledged fund ISIS are also big donators to the Clinton Foundation. Even Obama doesn’t want 9/11 families suing Saudi Arabia. Julian Assange  has now come out and reported that Hillary accepts money at her foundation from the same countries funding ISIS.

The “issue” at stake her is by no means trying to take down Hillary as a candidate just because. The “issue” is there are very deep concerns that Hillary is conflicted and that taking money from the VERY countries who fund ISIS, means she has been compromised and that she would follow Obama trying to overthrow Syria and not fight ISIS. This policy will lead to a continued wave of terrorism and Hillary has been compromised from a national security perspective.

There are “speculative” rumors that Obama has been promised a pay out from the Clintons after he leaves office. This may be total nonsense. But just watch what happens if she gets in.

The seeds are being planted. U.S. Senator Tom Carper, a Democrat on the Senate Homeland Security Committee, has claimed that a letter purporting to be from him is a fake by Russia. The document that has not been made public despite claims it has been, is said to conclude: “Any suspicious incident will be immediately reported to your assistants so that a recount of votes could be timely organized. You will not lose the election because of some compromised electronic voting systems.”

As Japan was on holidays Thursday it was today that the Nikkei cash market caught up with yesterdays futures decline. With the market still nervous surrounding the FBI’s investigations ahead of the US elections, coupled with todays release of the Non-Farms Payrolls prices were hit closing down 1.4% on the day way before numbers were released. This move is probably catching the Yen’s rally as we trade mid 102’s. Both Shanghai and HSI saw their move yesterday and so was relatively calm closing almost unchanged at down 0.1%. Oil traded heavy throughout the Asian session also closing below the psychological $45 level. Gold saw the safe-haven bid closing a little over the $1300 level. HSI futures lost more ground late in the US session and were last seen -0.75% influenced heavily by European weakness. Both the Nikkei and China 300 futures were little changed.

You can feel the uncertainty in markets in Europe and especially for Friday trading ahead of any weekend news. All core exchanges were lower with DAX, and CAC down 0.5% and IBEX and FTSE 0.75% ahead of the release. All week we have had the data releasing earlier than usual due to the different dates for clock changes (US changes Nov 6th). This week London has been working on short-lunches as data is released at 12:30 rather than the usual 13:30. So, fortunately, dealers did not have to wait long before we saw the 165k NFP with a drop in the rate to 4.9% and a 0.4% increase in average hourly workings. Despite many calling this a reasonable jobs report European markets continue to drift, oil trades below $44 and earlier rumors from Turkey that they are blocking social media sites after reports that 11 members of the HDP were being detained. In late trading the Turkish Lira was trading down around 1.9% on the day.

By the close of Europe FTSE had fallen near 1.5% with DAX and IBEX both closed down near 0.7%, whilst the CAC fell just 0.6%. Oil was blamed a lot for these declines, last seen trading $43.75 (-1.5% today) after rumors hit that Saudi may ignore OPEC and increase output. Eventually, stocks lost early gains to close lower in anticipation of the volatility already built for next week.

Buyers moved back into core bond markets today taking the curves flatter with lower yields all-round. 2’s were only 1bp lower at 0.80% while US 10’s closed 3bp lower at 1.78% that puts 2/10’s at +98bp. In Europe the 10yr Bund closed -2bp at 0.135% which closes the US/Germany spread at +164.5bp. The peripherals lost ground along with confidence and so we saw closes wider with Italy at 1.75% (+6bp), Greece 7.63% (-2bp), Turkey +20bp at 10.12% as cash leaves the country given the uncertainty surrounding the domestic situation. Portugal 3.26% (+4bp) and UK Gilts 1.13% (-7bp).

As we move into the elections and the polls narrow with Trump gaining, the power that be will try to push the US share market down to create the image that a Trump victory will be devastating just as they did in Britain. The number to watch in the Dow for today’s closing is 17713. A closing below that should result in a drop to test the 17300 zone perhaps on Monday.

The powers that be are so desperate to paint Hillary as the status quo when in fact he plan to raise taxes significantly will be the final nail in the coffin of the US economy with GDP growth at 1.5% at best, the WORST recovery in history. The economy cannot take what she has in store and raising Social Security taxes on employers will merely result in higher unemployment between that and the Obamacare tax. In this case, we need a wholesale change and by no means the status quo.

In the S&P Cash, a closing today below 205220 will warn of lower prices ahead next week. A close below 203250 will signal a drop to the 193100 level becomes possible.

In gold, only a weekly closing today above 1336 would suggest follow-through to the upside. Otherwise, initial resistance stands at the 1316-1319 level.

We are getting reports that President Recep Tayyip Erdogan has shut down WhatsApp which was used to coordinate the coup. This time the rumor is that HDP-Pro Kurdish parliament members have been taken into custody last night in Turkey. Erdogan has shut down all social media especially WhatsApp. It appears that he is now trying to suppress the rise of the Kurds against his rule. He has also been making comments that the many Greek Islands use to be Turkey and were taken away handed to Greece after World War I when they carved up the Ottoman Empire.

Erdogan has sold off US Treasuries and this is what you do when you are switching sides ahead of war. We are FOOLS to say the least. There are NATO nukes in Turkey. There is a real danger Erdogan will seize them. He can lay down a red carpet for Russia to march straight into Syria without having to send ships. We better start paying attention to Erdogan. He is establishing himself as a dictator, not an election official.

At the 2016 WEC, we are providing the actual slide presentation made at one of the G5 central banks back in 2013 to sell the idea moving to negative interest rates (zero bound) and it’s purported goals. This explains the objectives of eliminating paper money and how to sell it to the public. This was the ACTUAL presentation, not our “opinion” or speculation. This is the real deal.