The Wikileaks batch of email on Hillary are blowing the doors off of everything normal. Hillary Clinton’s campaign spokeswoman, Jennifer Palmieri, in the hacked emails reveals that Palmieri and other Clinton allies’ hold very low opinions of Catholics. Hillary’s staff said Catholics are “severely backwards” and further demeaned them saying they don’t know “what the hell they’re talking about.”

Jerry Oppenheimer reported in his book State of the Union: Inside the Complex Marriage of Bill and Hillary Clinton (2000), that the night Bill unexpectedly lost his 1974 Arkansas congressional seat bid, Hillary shrieked at his campaign manager, “you fucking Jew bastard.”

Hillary has also had a reputation of a foul gutter mouth and has been very racist/ethnic in comments. Alec Flegon’s Dictionary of English Sex Quotations (London: Flegon Press, 1996) quoted Hillary:

• L.D. Brown, a member of Clinton’s former security staff and bodyguard in Arkansas, stated that Hillary is “as foul-mouthed as any sailor you’d ever meet.” (p. 147)
• As reported by Bill’s security staff, Hillary frequently erupted in expletive-filled tirades against him. “I can’t believe you would ask a fucking question like that!” Or, about his shaky driving, “You’re gonna get us fucking killed!” (p. 147)
• She shouted at Bill over his unfaithfulness: “I need to befucked more than twice a year!” (p. 170)
• Hillary to Larry Patterson, an Arkansas state trooper and Clinton bodyguard from 1986 to 1993, who was bringing a judge’s wife to the Little Rock airport: “What the fuck do you think you’re doing? I know who that whore is.” (p. 171)
• Coming out of the Arkansas governor’s mansion early morning on Labor Day 1991, Hillary screamed: “Where is the goddamn fucking flag? I want the goddamn fucking flag up every fucking morning at fucking sunrise!” (p. 173).

So what exactly has this race come to? Sources in the FBI are coming forward saying that “career agents and attorneys on the case unanimously believed the Democratic presidential nominee should have been charged.” The emails pouring out now show that her own staff “[a]s far back as March, aides were keenly aware that she was resistant to the media, perhaps out of touch with regular Americans and unable to convey a clear message to voters” (wrote Washington Post). The Wikileaks email stash have shown Hillary is certainly anything but truthful. She actually said in one of her paid speeches: “you need both a public and a private position” on policy. Despite her denials, the Wikileak stash shows Hillary committed perjury before Congress. Hillary and her State Department were actively arming ISIS and other Islamic jihadists in Syria, which she denied. Jack Abramoff, the lobbyist who spent nearly four years in prison for fraud and corruption said he went to prison for the same things Hillary has done.

Emails have now surfaced that CNN was giving questions to Hillary. CNN, which co-hosted the town hall with cable network TV One, is pointing the finger at its media partner for what appears to be a breach of the traditional secrecy surrounding the questions for such events. On March 12, 2016, Brazile was actually serving in the dual capacity as a Vice Chair of the DNC and a contributor to CNN. WikiLeaks released emails showing that on that date at 4:39 p.m., Brazile sent an email to Jennifer Palmieri, Communications Director for the Hillary Clinton. It said: “From time to time I get the questions in advance.”

Quite frankly, this is showing that the entire election is just nonsense and it’s designed to play Americans for complete fools.

The US Department of State is considering the implementation of a refugee program to allow US citizens to accept refugees from abroad at their own expense. Interested parties would have to pay for airfare and provide accommodation and meals for the refugees. According to the head of the Refugee Council USA, Naomi Steinberg, the planning for this had begun back in July 2016. Matthew La Corte, political analyst at the Niskanen Center, says that this would lead to a sustainable structural change in US refugee policy.

American banks would rather return to the USA than strengthen their activities in the Eurozone. The U.S. banks, overall, now expect the EU to simply disintegrate. Brussels is not about to surrender its dream and is clinging to life as it slowly dies. The general view now is that the European banks are reaching the point of hopelessness. Their commercial nonperforming loans are at 10 times what you see in the U.S. banks.

This deflationary policy in Europe has deliberately created a depression in Europe, and somehow, at least in Merkel’s mind, they think that is better than inflation. 

Asia saw a mixed session with the Nikkei and Hang Seng lower whilst Shanghai rallied. The mood certainly appears heavy the past few days but more through uncertainty than actual news although we did see Chinese exports decline it did not halt the Shanghai’s performance.
The impact of China’s data on European markets was evident from the start with all core indices opening lower. Italian banks were back in the lime-light on the back of on-going peripheral fears and the business contraction ending with most closing around 3% lower. With US cash opening heavy also it was no surprise all the core closed 1% lower.

US opened lower but spent the rest of the day rallying to close with only minor losses. With many concentrating now on a December rate increase, the more it is talked the more acceptable it becomes. Years ago rate increases used to be a signs that the economy was recovering and therefore healthy for the stock market – are we returning to those times! We did see a sell-off in oil after the EIA report but that move was short-lived and even works its way into being bullish for the energy price by the close. By the close all core were off only around 0.3% which from the opening levels was seen by traders as a good close!

US Treasuries reversed earlier moves to close marginally better on the day. US 10’s closed 1.74% (-2bp) and German Bunds at 0.04% (-1bp) this closes the US/Germany spread at +170bp. Italy closed 1.42%, Greece 8.15%, Turkey 9.69%, Portugal 3.38%, UK Gilts 1.04%.

The Russian press is now reporting that the Russian Defense Ministry intends to turn the Crimean peninsula into an impregnable fortress. It will be not only a military outpost of Russia in the Black Sea region, but also be able to defend themselves, even when cut off from the mainland. Russia is now deploying a complete and self-sufficient military force in the Crimea. Russia is also recalling all its students in the West. They are being told to get out even if their classes are not complete. The Ukrainian press is also reporting that Russia is preparing for a major war. They say the only question is the timing – when it starts. At home, Russia is reconstructing and preparing bomb shelters for the possible nuclear war.

This, I suppose, is why Obama was given the Noble Peace Prize not to create peace, but to kill it once and for all. Our models on time are showing up with the same targets of November and January in the Ruble itself. This is curious as our models in so many markets are correlating to these time periods suggesting we are dealing with global contagion effect.

We will obviously begin to pay closer attention to our war models as we move into position. Capital Flows pick up the changes in movement that appear in advance of war. Our proprietary models are critical in this regard for they are the only thing out there that monitors the global capital flows. This is obviously going to be very important.

Right now, we have been tracking capital being withdrawn from South America and Europe moving back into Russia.  Capital is on the move in accordance with the rise in tensions geo-politically.

Even in Asia, we are witnessing a contraction in capital moving back into China from South East Asia as well as Japan. Curiously enough, even from New Zealand, although it appears to be moderate at this time.

We have even seen capital withdrawing marginally from Switzerland, and more aggressively from Britain.

We will continue to monitor these trends for they are disconcerting to say the least.

COMMENT: You are certainly correct, the money hunt is escalating and it’s becoming ridiculous.  I deal with it on a daily basis in the office.

What a bunch of fools.

J

REPLY: This hunt for money is costing business vast amounts of resources and reducing world trade. In banks and brokerage, the back office typically now employs more people than the front office all due to regulation. This is part of the economic decline for the West. I told PayPal that because they were fined, they too have gone over the deep end. I cannot recommend dealing with PayPal. They have crossed over into insanity paranoid about every client from overseas who might be on some watch list. Once this process is unleashed, PayPal has peaked and will begin its slide down. The back offices will always imagine risks that do not exist to justify their existence in every organization. This is part of the process of how major companies slowly die.

At our last Conference in Philadelphia, we were originally booked at the Philadelphia Convention Center. The demands kept getting worse by the day and never stated up front. First came the terrorist insurance we had to buy to cover the convention center, city of Philadelphia, and State of Pennsylvania. Then the film crew was not allowed to work in Philadelphia because they were not union. Then, anyone driving to the WEC we would have to verify they had car insurance to park in their garage. I called the Marriott and asked if they had space. They said yes. They then commented: “Was it the terrorist insurance?” If you park your car in any public garage, you do not have to prove you have insurance to enter. Only government can do stupid insane things like this and when such regulations are forced on business, it will slowly die.

A friend bought a house. They had to explain every single check that had been deposited regardless of the amount. In our case, they imagine “risk” because they do not know who may be buying a report from overseas. So what is this world coming to? Do you have to produce ID to buy something even for cash? And people wonder why international trade is in free-fall. World trade recorded a 1.1% decline in the first quarter of 2016 increasing over the same quarter in 2015. The decline is beginning to escalate.

So we apologize for this insanity. Speaking to various credit card processors they say their tolerance for foreign transactions is no more than 5%. There goes the global economy. FATCA is really destroying world trade at an alarming rate. We are setting up at least two processing services and we may have to establish a separate one entirely for Asia. This is just insane. When you cannot use a single processor because they are afraid of fines from the government for some new regulation, the end is near. With January 1st, 2017 looming on the horizon and G20 will begin collecting data and sharing it among each other to enable greater tax collection, they cannot see that this is destroying world trade.

The Republican Party is in self-destruct mode. Even the most recent polls show that 76% of Republicans think the party is hopelessly divided. This is clearly the result of the career politicians who prefer Hillary and the status-quo to any outsider coming in to upset the apple cart. This is a very serious development, for the old elite guard want war to divert the American people to maintain their control of a very corrupt system.

The vicious attacks by the Republican elite upon Trump demonstrate that their self-interest and corruption comes before the country. Never before in history has a party worked so hard to undermine its own candidate. The trend for the Republicans in the Senate looks rather poor and we will see a sharp tax increase under the Democrats for Social Security goes negative next year. This appears to be setting up the stage for the worst possible outcome for party politics in 2018 where we just may see Congress entirely overthrown as took place in Scotland.

QUESTION:  Hi Marty,
I have a question for you on the movement of the financial capital. Is there a reason it moved to NY (as apposed to VA, MA, or MD) in 1914? Also is it possible to predict what region in china it will move to, or can we just assume it will move to Beijing.
Thanks for all your hard work. I read your blog for breakfast.
-AM

ANSWER: Philadelphia was the financial capitol of the United States. That is where the Bank of the United States began, and to this day, you can go to dinner on Chestnut and Walnut Streets at many fine restaurants that were once banks. That was banker’s row until the state sovereign debt crisis of the 1840s, thanks to Andrew Jackson. The Second Bank of the United States is now a museum. This was the bank that Jackson attacked.

Jay Cooke was the first “Primary Dealer” to sell government debt for the Civil War, and he was the real financier of the Civil War. He is considered to be the first major investment banker in the United States. Cooke embraced technology by adopting the telegraph and thereby establishing the first wirehouse firm. He used the railroads to distribute bonds to people around the nation. This is why Lincoln went to Cooke to sell debt. The Panic of 1873 ended Jay Cooke & Company.

With the collapse of Jay Cooke & Company, the field opened. The next man to fill that role was none other than J.P. Morgan, who also began in Philadelphia. J.P. Morgan moved the financial capitol of the United States to New York City. It was from there that he organized the gold loan for the United States during the Panic of 1896. That is why New York is New York. It was not Wall Street and the stock market, it was the banking center and insurance center that was given life by J.P. Morgan.

There has always been a rival against New York for it sees itself as the real capitol of the United States since that is where Washington was sworn in. The capitol moved south after Alexander Hamilton struck a deal with Thomas Jefferson to allow a national debt. Jefferson demanded the capitol move to his state, Virginia.

As far what city in China, it is all pointing to Shanghai. Bureaucrats in Beijing, money in Shanghai.

Well, of course not. NOBODY is willing to run for office that you would say is truly qualified. The other crazy aspect is that people really think electing a president could change something. Hillary is the corrupt politician gone wild. Not that she is the only one by far. She is just the poster-child for everything wrong in Washington. Can Trump stop the downfall? No possible way. He might slow the process a bit. He is an isolationist and is against NATION BUILDING, but that may prompt the Obama Administration to orchestrate a war with Russia BEFORE January.

So the ONLY thing Trump might bring to the table is a veto pen. The other thing is sending a message to Washington that the party is over. It appears more like 2018 will be the watershed political upheaval in Congress regardless of who gets in. If they rig the election to prevent Trump from taking office one way or another (BOTH PARTIES AGREE ON THAT), then we will probably see a rise in civil unrest within the United States. November may be far more important than many suspect. This is why we made the WEC this year one week AFTER the elections.

So this is the card we have been dealt. They appear to be right on time. If there is a Trump victory, they may very well blame Putin rather than give up their power, even if Putin has nothing to do with it.

We are planning to launch Socrates hopefully with the WEC in November. Because of the constant problems with PayPal getting fined for various things from deceptive practices to allowing money to be transferred to people on sanction lists, the response back has been excessive scrutiny to the point of absurdity. PayPal is also not accepted in many countries and this presents a huge problem for our international client base. The “risk” is considered different for overseas clients and this presents a huge problem.

We are disconnecting PayPal and switching to a more accommodating service providers. Because of the hunt for money globally, this is having a direct impact on restricting international trade. Apparently, the “risk” tolerance for a international business is no more than 5%. Since we have international clients, we are well over that threshold and this restrict international clients tremendously. We will have to split payment options between a domestic provider and an international one. We are in the process of setting up these facilities and we are doing our best to accommodate all clients around the world who do not want to use or cannot use PayPal. Hence we will have to have two separate systems altogether for USA and International.

So we are in the process of changing all links for direct credit cards. DVDs etc will continue to go through AMAZON and conferences go through a separate company and we have not used PayPal for those clients because the problems with international payments. With January 1st, 2017 reporting requirements among G20 nations, this is not going to be easy to service everyone internationally as we have. We are turning on other links to accommodate clients globally and disconnecting PayPal. We will have two payment pathways, one for United States, and the other for international.

Thank you for your understanding. This hunt for money is simply going too far.