QUESTION: Mr, Armstrong, Just how stupid do these leaders really think we are? The ECB Governing Council member Ewald Nowotny said there is no banking crisis. “We are in a transition and learning process.”

KR

ANSWER: Well they think we are stupid, and the press is either brain-dead or corrupt. It is unbelievable. However, if we are in a “learning process” through the mess, isn’t that admitting they do not know what they are doing?

QUESTION:  I read your blog daily, first thing in the morning. What surprise me is your ability to see through the dust. Socrates has been of real help and thanks a lot.
I have a concern within Nato governance that I like your view on. Trump has not touched it however how can there be a direct link between Norway’s enormous contribution to the Clinton Foundation and the appointment of Jens Stoltenberg as new General Secretary in Nato. Jens Stoltenberg has just released a book about his carrier that smell propaganda, putting shit on all of his opponents however revealing how he sabotaged the previous labor leader of the Norwegian Labor party. It comes in the same line as rewarding President Obama with the Nobel peace price.

KEK

ANSWER: Norway’s pay-off to the Clinton Foundation was strategic. According to Norad,during the period 2007 to 2015, Norway sent 584 million to the Clinton Foundation. For the next three years, they promised them a further 92 million. These vast donations from Norway appear to have made Stoltenberg the head of NATO and Obama the Nobel Peace Prize.

The donation bought Jens Stoltenberg a position as the head of NATO on October 1, 2014. Obama was given the 2009 Nobel Peace Prize for absolutely nothing. The official announcement on October 9, 2009, cited Obama’s promotion of nuclear nonproliferation and a “new climate” in international relations, especially in reaching out to the Muslim world. Yes, there were 4,950 operational nuclear warheads in 2010, the year the New Start Treaty was signed to lower the amount to 4,700 weapons in 2015. However, the weapons systems are being modernized and better focused for targeting. So that is a joke. He has restarted the Cold War with Russia and has not brought peace to the Middle East or the Muslim world.

The confirmation that these positions were all pay-offs to Norway for huge donations to the Clinton Foundation is in Hillary’s destroyed emails. Others do have them and this is, in part, why Obama used a fake name to communicate with Hillary on her private server so this would all be beyond the Freedom of Information Act. Using a fake name proves (1) he knew what she was doing and (2) it may be the smoking gun that he is part of this whole mess.

Rumors from behind the curtain put Obama being paid-off by the Clinton Foundation in the future and they got him the Nobel Prize. So he let Hillary do her thing. The rumors that FBI Director James Comey was paid-off was not true. He did work for some organizations that have donated to or partnered with the Clinton Foundation but not simultaneously. The Clinton Foundation is the new vampire squid taking lessons from Goldman Sachs. Just follow the money.

Nothing is what it seems. The Bureau of Investigative Journalism reports that the Pentagon paid a British PR firm $500M for top secret Iraq propaganda creating false flags and fake Al Qaeda propaganda films. This is just the tip of the iceberg. Now we have Jens Stoltenberg doing the bidding of the military establishment as well. Both NATO and the Obama Administration are preparing for war with Russia. It has come out that the Obama Administration has instructed the CIA to supply heavy weapons in Syria to invoke a direct confrontation with Russia. The preparation for war with Russia is building. This is even being reported in Russia. NATO has now added cyber attacks to the list to justify war. The Clinton Foundation appears to be a giant money laundering machine that may be far worse than anything revealed to date. This is also likely why the Obama Administration is protecting Hillary’s emails at all costs. This is also probably why no indictment. Then you have discovery and a public trial. No possible way. Obama is protecting Hillary for himself as well. It’s all a scam and we are the victims.

Stoltenberg’s installation into NATO is a set-up. Everything is now in place and if Trump wins, Obama can claim, without any proof as usual, that Russia determined the election and call it all a FRAUD and domestic protest would justify Martial Law and off we go.

With China still on national holidays (Golden Week) trading was quiet but maintains the same trend. That being stronger equity markets offsetting the weaker currency. The JPY today hit recent lows (102.50) whilst the Nikkei heads for levels not seen since Q1. The 17k level remains the intraday psychological barrier where traders feel nervous as it is approached. Once through the run-in will be for year end and the seesaw move against the JPY. Hang Seng closed little changed but will be interesting to see the effect of China Consumption Tax removal for luxury goods once the Shanghai market reopens. With many still focused on the other currency that continues to hit the headlines and that is GBP which extended the 31 year lows. Coupled with the Yens weakness the DXY was last seen 96.15 (+0.6%).

Europe remained focused on Deutsche Bank shares and after another whippy day it finally closed around 2% better. FTSE was another play on the currency with equities taking the opposite move to the currency; it won’t be long now before we see bargain hunters eyeing London property again.  FTSE +1.3% (huge benefit for exporters), DAX and CAC +1% and the uncertainty in peripherals played into IBEX with a close of just +0.2%. Italy auction some long paper (50 years) earlier in the day so that may have redirected some of the Italian appetite away. Much discussion around the metals markets today and the dramatic decline of both Gold and Silver. Gold finally broke the important support and fell 2.5% intraday. Silver suffered also closing down 5.5%.

Given the strength of the USD today it really should be no surprise that the initial move in stocks is to the downside. It will take some time for people to understand and the flow to start. The currency is the start, the assets will catch-up. More US traders were watching the DXY and precious metals than any economic indicators even ahead of the important NFP release this Friday. DOW and S+P both closed down around 0.5% whilst the NASDAQ lost just 0.2%.

Treasuries were under pressure as more talk of rate increases increase and the flow of monies into the USD increases. US 10’s closed 1.69% (+7bp) with 2’s gaining just 3bp to close 0.82%. In Germany the 10yr Bund closed -0.05% (+4bp) closing the US/Germany spread at +174bp. Italy gained 4bp to close 1.3%, Greece 8.11% (+1bp), Turkey 9.43% (+4bp), Portugal 3.36% and UK Gilt 10’s at 0.78% (+5bp). Lots of talk between dealers today that ECB could begin a gradual wind-down of its Euro 1.7tln QE programme. We should more volatility within peripherals tomorrow as this builds speculation.

QUESTION: Marty; I won a bet against a goldbug. He bet gold would soar and the dollar would crash October 1st because of the SDR and said you would be exposed as a fraud. I won the $100 bet. I tried to bet an ounce of gold, but he would do that.

I too studied Latin. Remember Julius Caesar your favorite: Fere libenter homines, id quod volunt, credunt – People almost always willingly believe what you want (De Bello Gallico, III, 18). That is their whole problem. They want something so bad they are blind to everything around them. You can lead a horse to water, but you cannot make him drink.

With gold down at 1275, when is your next video update?

CB

ANSWER: Yes I admired Caesar. But he forgave his enemies and they killed him for his generosity.

You cannot enlighten certain people because they have too much invested in their beliefs. There are people who will vote for Hillary no matter what as there are people who will vote Republican no matter what. There is always those who just believe and never question.

I will update a video soon. The timing is not right for gold to break out. It failed to elect the Monthly Bullish and then failed to elect the Quarterly Bullish Reversal despite the fact it was much lower. Gold rallied right to that reversal and bounced off. That was the kiss of death.

People are still uncertain about the future. They have no idea which way to go with this year from Political Hell. Will do a Private Blog Update for tomorrow.

For years there have been rather stupid rumors that Obama would call martial law to stay in the White House. This is not a power-hungry guy. He plays golf more than anyone and misses more than 60% of his national briefings. The ONLY rumor that comes from behind the curtain, and not the internet, is what I just reported regarding setting the stage for a Trump win and blaming it on Putin.

You have to understand that Trump is against nation building. Of all the things he says, crazy or not, that one hits home. He is, of course, right on this issue, but now he’s threatening the powers behind the throne. That is why they say he is not presidential because he is against invading the world and is an isolationist. Some say the CIA assassinated JFK for such a reason; Nixon knew it, wired the place, and not to mention he was mocked for creating what they called his “palace guard.” To what extent those rumors are true or not really does not matter. There is logic in this one, which is disconcerting.

The only possible way I can see a martial law decree is that Obama does what he is told. I would not attribute this one to Obama’s personal ego. He would rather be playing golf. They are in an all-out war against Trump because they are afraid of him on so many fronts. On the Hill, he will have the veto pen and may fire their family members and mistresses from cushy jobs.

The military, NSA, and CIA enjoy national building. That is where the real power lies. Yes, Obama might be a Democrat and the full corruption of politics may burst on to the scene. Nonetheless, Obama want’s to just play golf. I would not attribute this to his desire to remain in power. This is the power behind the throne where the REAL “Game of Thrones” is played out and we have no power to vote yes or no.

So indeed, we may be looking at November as a key target for a turning point in many markets on our timing arrays, which are not fundamentally based. Those who prepare, move the flow of capital in advance and that will pick up. It does not say who or why. It just says it’s on the move.

So do I think martial law would actually be called? I would not put it past Washington. However, it would be possible that Obama would step down and pass the reigns of power to Joe Biden. Obama is preparing for war against Russia. That much is clear. A Trump victory may be the excuse to blame Russia. Pay attention.

Saturday Night Live did a great skit on the presidential debate that is probably closer to our choices than what mainstream media will ever portray.

Julian Assange of WikiLeaks has long-promised a document dump on Hillary Clinton that many have suspected might be her emails. This was to take place today from the balcony of London’s Ecuadorian Embassy, where Assange has sought sanctuary for years. This event has been canceled due to what he deems as “security concerns” imposed by the Ecuador Embassy.

QUESTION: Hi,
I have two questions:
a) do you believe US dollar has been kept artificially lower than it should be (or at least in long range trading range) by at least two central banks lately? if so how long you think it would last, years?
b) you remind many times gold does not yield so investors should avoid it at any cost – as the most investors have done. benefits of stocks are clear but why many investors still buy / have bought bonds even with negative interests or buy fiat currencies with very low interest levels.
BR, J

ANSWER: Yes. The central banks have been trying to keep the dollar down because a rising dollar will undermine Europe exposing the ECB total failure, and then there is the risk of major sovereign defaults among emerging markets who issued their debt in dollars. The IMF has lobbied hard with the Fed pleading not to raise rates for this fear of capital pouring into the dollar. They do not appear to be able to sustain this policy beyond January.

Gold is not something to avoid. True, institutions cannot buy gold for they earn no income. Gold is really for the individual and it will eventually be the hedge against government and the change in the monetary system which could come as early as 2018 but by 2020 if on schedule.

Institutions buy bond because they simply go by the book. Then pension funds often have restraints requiring various portions MUST be in government debt to varying degrees. Social Security is only in US debt. Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity according to most people. The value of fiat money is supposed to be derived from the relationship between supply and demand rather than the value of the material that the money is made of. But throughout history, ALL money has always been fiat. Bretton Woods collapsed because they continued to print money and the claimed backing was not there. So even the pretend gold standard was fiat. When money was gold coins during the 19th century, it was legal tender, not backed but anything else, and yet it still rose and fell in purchasing power. There is no such period in monetary history of such a Utopia or money remaining steady and a constant purchasing power. It has never existed.

The Organization of Petroleum Exporting Countries’ (OPEC) agreement to cut production is supposed to end Saudi Arabia’s policy of the last to years to pump-at-will. This has sent Middle Eastern economies into a tail-spin and the glut of oil has meant rising taxes and selling bonds to raise capital. With this new claimed reversal of that pump-at-will policy, there are of course the optimists who say oil should now soar, yet they overlook some very critical points. OPEC deals have routinely failed, and there is a real glut of oil in inventories, not to mention the reduction in oil demand rising from electric cars.

The EU first introduced mandatory 2015 CO₂ standards for new passenger cars way back in 2009. Mandatory targets for light-commercial vehicles come into play in 2017, which was passed back in 2011. Then by the end of 2013, the EU reached an agreement that will implement mandatory 2020 CO₂ emission targets for new passenger cars and light-commercial vehicles. Europe is applying these standards for 95% of vehicles in 2020 with 100% compliance in 2021 and the light-commercial vehicle standards are are required for 2020. Electric cars are becoming commonplace in Europe. Charging stations are seen just about everywhere including in London. This is not the case in the United States. Clearly, demand will decline for oil moving forward.

The optimists also overlook the reality of the oil production countries. OPEC cannot control the 60% of world production outside its membership. The United States is the largest oil producer. In the top five oil producing countries, only Saudi Arabia makes that list as number two. Of the top 10 producing countries, only four are OPEC members. The bottom line; OPEC can not manipulate oil prices any more.
2014 Country Production (bbl/day)

1 United States 11,973,000
2 Saudi Arabia (OPEC) 11,624,000
3 Russia 10,853,000
4 China, People’s Republic of 4,572,000
5 Canada 4,383,000
6 United Arab Emirates (OPEC) 3,471,000
7 Iran (OPEC) 3,375,000
8 Iraq (OPEC) 3,371,000
9 Brazil 2,950,000
10 Mexico 2,812,000
11 Kuwait (OPEC) 2,767,000
12 Venezuela (OPEC) 2,689,000
13 Nigeria (OPEC) 2,427,000
14 Qatar (OPEC) 2,055,000
15 Norway 1,904,000
16 Angola (OPEC) 1,756,000
17 Algeria (OPEC) 1,721,000
18 Kazakhstan 1,719,000
19 Colombia 1,016,000
20 India 978,000
21 Oman 951,000
22 Indonesia (OPEC) 911,000
23 United Kingdom 906,000
24 Azerbaijan 856,000
25 Argentina 715,000
26 Malaysia 697,000
27 Egypt 667,000
29 Libya (OPEC) 516,000
30 Australia 478,000
31 Thailand 422,000
32 Vietnam 316,000
33 Turkmenistan 276,000
34 Equatorial Guinea 269,000
35 Sudan and South Sudan 262,000
36 Congo, Republic of the 259,000
37 Gabon 240,000
38 Peru 180,000
39 Denmark 171,000
40 Italy 169,000
41 Germany 160,000
41 South Africa, Republic of 160,000
43 Japan 137,000
44 Yemen 127,000
45 Brunei 124,000
46 Trinidad and Tobago 116,000
47 Ghana 106,000
48 Romania 104,000
49 Chad 103,000
50 Pakistan 98,000
51 Uzbekistan 85,000
52 Cameroon 81,000
53 South Korea 79,000
54 Timor-Leste 76,000
55 Bolivia 67,000
56 Ukraine 66,000
57 Bahrain 64,000
57 Netherlands 64,000
59 France 61,000
59 Turkey 61,000
61 Tunisia 59,000
62 New Zealand 50,000
63 Cuba 49,000
64 Spain 40,000
65 Poland 39,000
66 Ivory Coast 37,000
67 Papua New Guinea 34,000
68 Syria 33,000
69 Belarus 32,000
70 Austria 27,000
71 Philippines 26,000
72 Hungary 25,000
73 Taiwan 22,000
74 Albania 21,000
74 Myanmar 21,000
78 Congo, Democratic Republic of the 20,000
78 Niger 20,000
78 Singapore 20,000
81 Croatia 18,000
82 Chile 15,000
82 Virgin Islands, U.S. 15,000
84 Guatemala 14,000
84 Suriname 14,000
86 Belgium 13,000
86 Estonia 13,000
88 Sweden 12,000
89 Czech Republic 11,000
90 Finland 10,000
91 Lithuania 9,100
91 Slovakia 9,100
93 Greece 8,700
94 Portugal 7,100
95 Mauritania 6,000
96 Palestine 5,800
97 Morocco 5,100
98 Bangladesh 4,800
99 Switzerland 3,900
100 Bulgaria 3,400
101 Aruba 2,800
102 Jamaica 2,100
103 Paraguay 2,000
104 Belize 1,800
105 Netherlands Antilles 1,500
106 Uruguay 1,200
107 Barbados 1,000
107 Georgia 1,000
107 Latvia 1,000
110 Ireland, Republic of 900
111 Puerto Rico 700
112 Costa Rica 300
112 Slovenia 300
114 Jordan 200
114 Malawi 200
114 Tajikistan 200
114 Zambia 200
118 Ethiopia 100
118 Hong Kong 100
118 Zimbabwe 100

The latest HOAX running around is that Bill is not the father of Chelsea Clinton. It really is amazing how people are making up stuff at this point right down to Hillary toilet paper (sent in as a gift). I have never seen such an election that is so out of wack in all the years I have been compelled to pay attention to the sport of folly. The reliable source from behind the curtain expresses real concern that there is so much at stake here for career politicians and the media, that they will blame Putin if Trump wins. They will by no means accept Trump as President.

We see that November is shaping up as a key target for a turning point. It is beginning to reflect that something important may unfold. Just how far is the establishment willing to go? Mainstream media only trashes Trump. Every possible thing they can dig up is being used. Of course they will never attack Hillary with the same vigor. Will the American people rise up as they did in Britain against the corrupt media?

We certain will have some interest times ahead. One must wonder if all these Hoax stories are not being planted to Hillary supporters to blame Trump.