QUESTION: Many people has written in asking this basic question: “Do you foresee a time when machine logic prevails in economic decisions?”

ANSWER: Yes. What we have today is absolute nonsense. Every crash produces opinions for a solution. NOT EVEN ONCE has anyone ever bothered to ask; “Has this been done before? What was the outcome?” We have Merkel who is obsessed with inflation when she is clueless about why Germany even had hyperinflation. So she does everything possible to create deflation. We have central bankers moving negative and only see one direction incapable of ever admitting error. We have people like Hillary who deny that the Reagan tax cuts produced more revenue and higher level of economic growth than any president ever since.

Economic management should be handed over to a computer like Socrates. Just ask it. Has this been done before? Did it work? Let it come up with the solution based upon fact rather than guessing or corruption that manages to help specific people or an industry. TARP had no strings. They handed billions to bankers with a HOPE they might lend to the public. With interest rates at near zero, car loans are generally 2.25%. That is the biggest spread in history from a cost of funds perspective. The bankers NEVER passed on the real savings to the people.

A computer cannot be bribed and it has not mistress, brother-in-law, or lobbyists to take care of. It beats human nature every single time.

Reporting from Florida, it is starting to smell like something is really rotten with these weather forecasts. The morning Hermine hit Florida on the West Coast, cross into the Atlantic and turned north, I was swimming in the ocean and there were plenty of surfers there as well. I then got dress and headed for the airport to catch a flight. While I was in line at security, my phone kept getting text after text all asking if I was OK. The news stories were “Killer Storm” hits Florida. There I was in line for TSA and a bunch of alarming text messages were coming in. I said I was fine. I was swimming in the ocean that morning enjoying the waves and now I was in line at TSA and the flight was not delayed.

Now comes Matthew and it was touted to be a category 4 Hurricane with winds up to 150 miles per hour. Granted, I am on the West Coast, not East, for that very reason. Nonetheless, the West Coast was supposed by be still a Tropical Storm strength. Once more I was swimming and enjoying the surf. The sun was out and it never even rained. A Friend of mine was to fly in from London and they cancelled fearing the “storm of the century.”

Hermine was classified as a category one hurricane. The news called it a “Killer Storm” when if anyone drowned in this area it was probably in their bathtub. There was no excuse whatsoever for the press to label that a “killer storm” when it was category one. So why are things being so exaggerated? This appears to be part of the conspiracy against the people to justify raising taxes for climate change as if they can actually stop such storms.

Many readers keep writing in to ask what is my personal opinion with all the latest row centering on Trump and women. The Washington Post in digging up old tapes of Trump and destroying the entire election process. Who has not said something stupid 20 years before? Nobody will run for office if this is what they must go through. This is why really qualified people would NEVER run for office. You have to be a loser with no real job skill other than how to bullshit people with a straight face to run for any office. Pathological lying can be described as the habituation of lying. It is when an individual consistently lies for no personal gain, or in the case of politicians, to always pretend to be something they are not. The lies are commonly transparent and often seem rather pointless assuming people are stupid. There are many consequences of being a pathological liar and they involve political candidates. Why would any one run for office? The press will dig up whatever they can and use ex-girlfriends or ex-boyfriends to discredit you with just slander having nothing to do with your qualifications. Life is a learning process. We are not born perfect. You have to make mistakes in order to learn. This standard of perfection imposed by the press is just not realistic. People have often asked why I would not run for some office. I am not interested in such nasty confrontations. I joke and say when the position of dictator arises, fine. Otherwise, forget it. Your entire life must be put on display. This is totally insane.

This advertisement called Mirrors is clearly taken out of context. But what I am finding offensive is Hillary is revealing that she is a hard-core feminist who really does detest men behind the curtain. One of her college girlfriends congratulated her on being first lady and said she always knew that was where she was going, just sorry you had to “take this guy” with you.

Hillary’s whole attack now is all about women. What’s next? She will stroll down the street in her underwear joining the Slut Walks? Please! Spare us those images, thank you. She is not addressing anything Bill has done and is really avoiding all the real issues in this race. The more Hillary attacks Trump who somehow is disliking women reveals her own distaste for men. She obviously will not represent men fairly, for this is becoming all about women. The headline should be: 1960’s Bra Burning Feminist Takes the White House.”

Obviously the solution is we divide the country first into quarters and split between men and women and then left and right. Then we further divide each quarter into 4 races. That way, everyone can get along within their own private enclave. My bet, they would still wage war on neighboring groups. Guess there is just no hope for humanity.

Hillary’s motto must be divide & conquer. Guess I will start using the Hillary toilet paper a reader sent in.

If there was ever proof that the Republican elite want Hillary to win, you just got it. The  video published by the Washington Post showing Trump having a vulgar discussion about a number of women is indeed over the top and something you would expect from a locker-room banter. Trump himself had to admit he was wrong. That in itself is rare for anyone running for any office. Trump issued an apology:

“I’ve never said I’m a perfect person nor pretended to be someone that I’m not. I’ve said and done things I regret and the words released today, on this more than a decade old video, are one of them,” he said in a video released by his campaign. “I was wrong and I apologize.”

While his comments are outrageous, he conceded:  “I’ve said some foolish things but there is a big difference between the words and actions of other people. Bill Clinton has actually abused women.” On that score he is correct. There are countless stories about Bill even flying with his friend who went to prison for exploiting under-aged girls to his private island where his friend had sex with girls who have said they were sex slaves. Bill told the Secret Service not to go on those trips. One of the girls who said she was held as a sex slave, Virginia Roberts, has come out and the press ignores everything from the Clinton side. So there is clearly a huge double standard here.

Why have the Democrats not demanded that Hillary step down? Simply, the career politicians do not want ANYONE who is an outsider to run the White House and upset their world of perks.

From every possible angle, both the Republican elite and Democrats conspire together to defeat Trump and the Press is a co-conspirator. So if they put Hillary in the White House, I can only imagine the corruption will just go off the chart. This is looking like the greatest rigged election perhaps in world history, not just the United States. The press has destroyed the entire process. We are watching the complete collapse of Western society. It will NEVER be the same after this election. Our model warns that Civil Unrest will soar in the United States after they rig this one. We have the press to thank for this one.

Well the emails are now pouring in saying: “OMG, your sources are unbelievable.”  Back on July 18th, i told the story that when the Clintons first entered the White House, I received a call with the source was the Secret Service saying that Hillary was a lesbian. I wrote:

“Shortly after the Clintons entered the White House, I received a call from someone connected with the Secret Service. I was told an agent was patrolling the second floor and caught Hillary in bed with another woman. Hillary threw an ashtray at the agent and hit him in the head. I didn’t believe it. Then a piece made the press that noted that agents were no longer allowed to patrol the second floor since one was injured in the head.”

Now Gennifer Flowers, one of the many women servicing Bill Clinton, came out and told the dirty little secret why Bill has so many affairs and Hillary only gets mad when he is caught. Flowers has let it all out at last. The headline in the Daily Mail in London, of course, reads: “Two decades after her affair with Bill Clinton, Gennifer Flowers reveals they’d be together now if it wasn’t for Chelsea and how former president confided in her that Hillary was bisexual.” It is questionable if she is bisexual for EVERYTHING I have ever heard BEHIND THE CURTAIN is she is just a lesbian.

Look. I do not make up this stuff. First of all, I would never make a false claim about someone. That is just something you do not do. If you look at the women appointed to many positions, you will also see feminist lesbians demonstrating Hillary ran the ship, not Bill. No first lady in history ever had financial scandals. Bill had the womenizer sex scandals, but the money issues were all Hillary.

Even Linda Tripp, who exposed Bill’s affair with Monica who worked in the White House and her office was next to Hillary’s, warned Hillary must NEVER become President. Tripp warns that Hillary is a liar and treats the public with contempt. This is why she set up her own server to hide everything from the Freedom of Information Act requests. With what became known as “Bimbo Eruptions” with Bill, Tripp said it was Hillary who would ruthless destroy their reputations to cast them as liars. Tripp also had to go to London to get her story out as did Flowers and of course Snowden.

All I can say is that Hillary had always a reputation for having a gutter mouth, nasty, liar, and the one in charge in her relationship that was purely for political gain. She had also had a reputation that she would do absolutely anything to be the first woman president.

QUESTION:  Any update or longer term array for the GBP? You said they are attempting to hold the USD’s advance back any chance there’s also attempt to punish the UK with an attack on the currency?

LM

ANSWER: Of course. Europe has a different mindset when it comes to currency. They view the currency as if it were a share and the high the better. This is because after World War II, politicians used the rise in their currencies as PROOF they did a good job. When I was first going to open an office in Europe around 1983, I met for lunch with the head of one of the top Swiss banks in Geneva. I proposed various names and asked his opinion. They were all something like European Advisers. He asked me to name one European analyst. I was embarrassed for I could not. He laughed and and said there were none. He then said that is what everyone used our firm because he said I did not care if the dollar rose or fell. He explained, all European analysts would always be bullish their own currency. Indeed, with time I came to see what he said. It was political and to say your currency would collapse was treason.

So the ECB has been selling British assets. There is a concerted effort from Brussels to “punish” Britain for in their mind that will deter others from leaving. What they fail to grasp is a lower pound will SAVE Britain and it is Europe that will fail. Lower the pound and their exports are now cheaper so much so they can afford the tariffs and still be competitive.
The pound has broken back below the Break-Line from the US Civil War when it reached its historical high against the dollar. That was at 13755 for 2016. Crossing that line meant the decline was back in motion. This is a good thing for Britain. It was Britain who was the first to abandon the gold standard ending deflation. It was that end result that George Warren used to convince Roosevelt to devalue the dollar against the advice of his Brains Trust who argued like Merkel today for deflation.

Everything I have been getting from BEHIND THE CURTAIN seems to be spot on. The overall plan is to deny Trump a victory if there is a record surge of voters and Wikileaks promises new releases every week until the election. Plan B is to call the election a FRAUD and deny Trump to take office. Now 99% of newspapers endorsed Hillary so the media will portray whatever Obama directs them to these days.

It is clear that the Obama administration on Friday officially accused Russia of hacking to interfere with the 2016 elections. Obama has also blamed Russia for hacking the computers of the Democratic National Committee and other political organizations without any proof it was Russia. The Washington Post reported: “The denunciation, made by the Office of the Director of National Intelligence and the Department of Homeland Security, came as pressure was growing from within the administration and some lawmakers to publicly name Moscow and hold it accountable for actions apparently aimed at sowing discord around the election.”

They are not about to allow Trump to win this election and they will go to real extremes to prevent any outsider from looking at what they have done. They also fear that a Trump Administration would indict Hillary and that would lead to a widespread collapse of the Democratic Party with links directly to Obama.

Asian markets were marginally better on the back of oil but were awaiting the all important US jobs report after a sleepy opening until the FX market woke everyone up. A “fat-finger trade” as many were reporting it (implying a trader input the wrong price and/or quantity) saw GBP trade down to 1.1378 in seconds only to recover to 1.1900 briefly then concentrate back at 1.2400. As far as we know all trades were honoured yet the speculation continues. Stocks really were unsure what to do and so continued to consolidate just under previous close. In late US trading the HK futures have recovered the earlier losses whilst the Nikkei continues the weaker theme as the JPY approaches the 103 level.

Europe opened weaker following lots of speculation around the GBP move but FTSE did play that opposite trade moving higher from the open. Peripheral markets continue to wobble with many still under pressure. DAX and CAC were around 0.5% lower whilst Spain’s IBEX lost 1.5%. There are many rumours flying around the City (London) and all negative. The latest are anything from its all the governments fault, BREXIT will lead to recession, the Bank of England should lose its independence and report directly to Downing Street to – we should vote again. Europe still under pressure with speculation Deutsche will sell off assets and is happy to look at a bid for any of its assets! All this uncertainty pushes more money into the US Dollar trading above 97 earlier in the week.

US NFP came in a little under expectation at +157k (+176k expected) with the unemployment rate ticked-up to 5%. Stocks were hit upon the news but as the day wore on so the decline was clawed back and by the close we are back close to unchanged. Much speculation will be in the weekend press surrounding the GBP, rates, the dollar index (DXY), oil and Mondays second Presidential debate. Whenever there is uncertainty people steer for safety which could point towards the US Dollar be that Treasuries and/or equities.

US 10’s closed marginally higher (price) after the initial sell-off after the data. 10’s closed 1.72% (-2bp) with 2’s closing 0.83% which puts 2/10 curve at +89bp. The German 10yr Bund closed +0.02% (+4bp) closing the US/German spread at +170bp. Italy 10’s closed 1.38% (+4bp), Greece 8.15% (+4bp), Turkey 9.45%, Portugal 3.55% (+7bp) and UK Gilts closed +0.97% (+10bp).

Since the speculation that the UK will borrow to grow following BREXIT the Gilt market has been on the slide. Given at one point today the currency dropped 6% it should be no surprise the demand for 10yr Gilts at sub 1% should be extremely limited, especially for foreign investors.

Private Blog Update British Pound