A story is floating around now that a worker discovered ballot boxed filled with tens of thousands of votes set up for Hillary in Ohio. No such photographs of the actual ballots have been produced so it appears that this may be a hoax. We warned that this was a developing story. There is no doubt this will be the most rigged election with all sorts of voter fraud. The fact that 2.5 million early and provisional ballots were not yet counted when the networks called the California primary for Hillary has become another reason to doubt that the media can fairly cover the race. The question of fraud in California has lingered just as it did in Florida between Bush & Gore.

QUESTION: Would you endorse Trump personally?

ANSWER: No. Not for anything he has done or said. I do not believe in politics in general and I certainly question whether or not a single person can change the trend anyhow. We are in a decline and fall position. Hillary is simply the queen of corruption. She is by no means the ONLY corrupt politician in the game. She is just the perfect example of what we face with politics as a whole. There is no honor or even pretending to be honest anymore. This has degenerated to the point it’s just all about them and power. Nothing more.

If I were to vote for personal enrichment, Hillary is a better bet for this will be probably the most scandal ridden administration in history. That should be good for increasing volatility, panics, and real crazy moves. How does the Clinton Foundation exist simultaneously with her and Bill in the White House? Chelsea will run the money machine with her hedge fund husband and of course there will be some fictitious Chinese Wall between her and her parents? Give me a break.

Financial panics, manipulations in markets, and general chaos as she unleashes and protects the worst of Wall Street will be great for business personally not to mention trading.

If Trump was elected, there is a glimmer of hope he will upset the status-quo so by 2018 perhaps we see the overthrow of political parties in Congress. For the nation, that is better and if he keeps his word about no nation building that would save a lot of lives. I lost probably half my high school friends to Vietnam. What did they die for? Strip joints and pole dancing?

I personally see that the only hope is a complete crash and burn. Then and ONLY then will we have the opportunity to really change how things are done. Until then, politics has devolved into the worst of the worst. So how can I say with a straight face vote for Trump or Hillary and the sun will shine tomorrow?  Perhaps I am a cynic.

The computer projection for a Trump victory is by no means my personal opinion, endorsement, prayer, or wishful thinking. This is a worldwide trend of anti-establishment. To view the whole trend in the eyes of Trump v Clinton misses the critical issue for this is unfolding in every country, not just USA..

A worker stumbled upon a warehouse filled with ballots already made out for Hillary in Ohio poised to take that state by any means possible. This is very curious and the story is still developing. But this 2016 election is going to be the biggest fraud attempt perhaps in political history. While our computer projects a Trump victory, it cannot distinguish fraud. It showed that Gore should have won the popular vote. The Supreme Court gave it to Bush. When the votes were counted that the Supreme Court refused to wait for, it turned out that Gore would have won.

This election may be no different. The REAL vote may be for Trump. But the corruption in Washington is so pervasive, it is highly questionable whether or not they will allow him to win. So stay tuned. This may lead to a serious civil unrest this time around.

There is a very interesting rumor from behind the curtain. What they are concerned about is that Trump has raised more from small donors under $200 than any previous Republican in history. Even John McCain in 2008 and Mitt Romney in 2012 collected less than $64 million. They are concerned that more small people are donating to Trump and that means it is the small people who vote, whereas hedge fund managers and bankers can give her millions, but one vote.

They are starting to set the stage for calling the entire election a FRAUD and pinning the blame on Putin. That’s right. They are saying already in preparation that Russia is hacking into the voting systems to make sure Trump wins. There have been rumors for years that Obama would declare Martial Law and suspend the election process. Interestingly enough, mow it is not the lunatic fringe who are starting to say that would be appropriate if Obama can claim the election was a FRAUD. Even Ben Carson, a black neurosurgeon and a former 2016 Republican presidential candidate, has publicly stated that Obama may declare Martial Law concerning the elections. This is probably a stretch, but the core of the issue is not to prevent an election, only to prevent someone from taking office claiming FRAUD should they win. I doubt Obama could pull this off peacefully. These people not only believe their own bullshit, they often drown in it.
The most troublesome part of this rumor from behind the curtain is that should the President declare Martial Law claiming the election is a FRAUD being hacked by Russia, this would then allow Obama to bypass the two-term max and remain as president until it is considered “safe.” It is common knowledge Obama does not like the Clintons. It is not likely that Obama would halt the entire 2016 election as many speculate. However, he could halt the swearing-in claiming it’s a sham orchestrated by Putin. You already have 99% of the press endorsing Hillary so they will put that story on the headlines and support such a move.

This is not a battle between two great candidates. This is a battle between the corruption on Capitol Hill and it happens to be Trump on the other side. The same result would unfold with anyone who was an outsider even if Trump was not making stupid comments here and there. So once again; It ain’t over til the fat lady sings.

Chancellor Merkel cannot afford to bailout Deutsche Bank from the point of view of a conflict perspective within the EU since she has taken such and intolerable hard line in the Italian bank rescue not to mention Greece. Merkel fails to understand that the very pretense of government was to protect the people. Taking their savings to bail-in banks is really insane. Just because she got away with it in Cyprus, and has demanded that same result in Greece and Italy when they have no right to vote her out of office, is a very insane and dangerous position for the EU as a whole. What Merkel has done to Germany’s image in the Southern EU is very damaging. It has revived the old wounds and cast Germany as a dictator that people have no right to change in any possible democratic process.

On the other hand, Deutsche Bank is different since it is the primary clearing bank in Europe. Any bail-in is more likely to take place by wiping out its bonds called CoCos, which have no maturity date. Indeed, investors may never get their money back. Under the terms, the bank can redeem them, usually after five years if it wants to. The annual coupon payments are contingent on the bank’s ability to keep its capital above certain critical threshold levels. If the bank’s capital falls below that threshold, the bank won’t make the coupon payment. Investors cannot call a default on these bonds, and that sets them up for a bail-in. Investors are simply sitting on bonds that they bought because they had a 6% coupon. However, there is not maturity and no guarantee of redemption and if capital falls below the threshold they plunged in value and pay no coupon. Consequently, if regulators deem that the bank is failing, then these CoCos will be bailed-in by either being converted into declining values in shares or could be just canceled.

These 6% CoCo notes have traded as high as 104 cents on the euro in early 2014 shortly after they’d been issued, and plunged to about 70 cents and are trading in the 77 level in this latest crisis. Therefore, the CoCos are a good indication of public confidence for if investors believe those thresholds are approaching, the bank will not pay the coupon and the risk of being converted to shares rises. Of course, converting to shares at any value could be a blessing in disguise since shares can be sold.

When we look at Deutsche Bank, we elected a Yearly Bearish Reversal at the close of 2015. Support lies at 8.55 and this is really important. We have reached 11.19 so far and resistance overhead will stand at 15.50. The primary target for a major turning point still appears to be 2017 whereas 2016 could produce the lowest yearly closing.

Whatever we get in 2017, should be followed by the opposite direction into 2019. This means a rally into 2017 without making a new low under 2016 levels, would most likely result in a Knee Jerk reaction high (one time unit). This becomes possible only if we exceed the 15.50 level. Even that is minor for the Monthly Bullish Reversal really caps this stock standing at 17.90 warning it is not over just yet.

The timing Array in Deutsche Bank has been targeting September all along. There are back-to-back Directional Changes for September October and the next main target for a turning point is November. The Panic Cycle played out on time for September as well. This all warns that if last week’s low holds, a bounce into November becomes possible.

The expansion of terrorism in Europe is really becoming widespread. This does not look good as we move forward. Unfortunately, our Cycle of War Model we warned began to turn up in 2014 is still far from reaching a peak. The fifth car bomb in just two days has exploded in the northern Spanish city of Santander. All indications is this trend will continue to undermine public confidence and support anti-immigration trends emerging everywhere.

We wrote back in 2013:

“Consequently, we are looking at 2014 for the beginning of a rise in separatism and civil unrest around the west. Then we see 2016 and the start of a nasty economic decline. We could see things get real bad during the 2016-2020 phase. That may actually be the bottom in the European economic meltdown. Here is a chart of the array for the German 10 year bond interest rates. It is lining up with the 23-26 year recession cycle from the start of the Euro. It does not matter.”

The Cycle of War Report is available for $75 download from our store

History is being rewritten all the time for the timeline of the past is far from definitive. Ancient Roman Coins issued under Constantine I the Great have been excavated from the ruins of a castle in Uruma, located in Okinawa Prefecture., This is the first such discovery made in Japan of Roman coins. Four copper coins were discovered in the ruins of Katsuren Castle. This location was actually only in existence from the 12th to 15th centuries where the coins were from the 4th century.

We do know that Okinawa traded both with China and Southeast Asia. These coins are curious since this is from the dark period of Japan when the only coins used were all foreign. Yet the history of Rome that claimed to rule the world (orbis terrarum) stood at the opposite end of the world from the strikingly similar Han Dynasty (206BC-220AD) in China, which also claimed to have ruled the world (tianxia). There is the History Book for Tang-Dynasty in China covering the period 618-907AD. Yet the text mentions 17 times what appears to be the Roman Empire. It also describes an envoy that was sent by the Roman Emperor to China. The Roman Emperor was recorded to have been “Anton“. The account of such an envoy who visited the older Han Dynasty predates the Venetian traveler Marco Polo (1254-1325) by more than 1,000 years. This envoy has been attributed to 166AD during the reign of Marcus Aurelius Antoninus (121-180AD). It is the death of Marcus Aurelius, that has marked the peak in the Roman Empire and the turning point that begins the Decline and Fall of the Roman Empire where its monetary system collapses just 72 years thereafter. This envoy established diplomatic contact at the peak in the Roman Empire from which a disastrous decline begins. Any political-economic aspirations to further such a relationship would then die with Marcus Aurelius. Yet also, both empires would suffer the same fate of barbarian invasions. The Han Dynasty falls in 220AD from which emerges the chaotic period known as the Three Kingdoms (220-280AD) – the division of the once unified Chinese Empire.

Roman artifacts have been discovered also in Canada. This clearly establishes that the ancient Roman sailed across the Atlantic long before Columbus or the Vikings. This discovery in Canada has created a storm for it rewrites history. The unquestionable discovery of a Roman sword in Canada is rather stark evidence that history is different from what academics believed.

These discoveries are significant for they confirm world travel and trade. This is up there with the discovery of the Cocaine Mummies from Egypt confirming trade between Africa and South America.

Sears, Roebuck & Co. is an American department store that was founded by Richard Warren Sears and Alvah Curtis Roebuck back in 1886. It was based originally in Chicago and it gave birth to the mail order industry. It was the Amazon of the 19th century. Sears issued catalogs that were distributed throughout the country by the railroads. You could order products from Sears and everything would be delivered by railroad.

Sears began opening retail locations in 1925. The company was eventually taken over by the American Kmart chain in 2005, which had just emerged from bankruptcy itself, and they renamed the company Sears Holdings. Sears was the largest retailer in the United States and peaked with the Economic Confidence Model 1989.95. It was in 1989 when Walmart surpassed Sears. Sears was still the 5th larges by sales in 2013.

Nonetheless, there is speculation that Sears will be bankrupt by 2020. The name-brand belongs to an older generation. Nevertheless, 2015 represents five 8.6-year cycles and it is curious that ever since it has hit that timing mark, the speculation of bankruptcy began. Sears spun off a real estate investment trust (REIT) Seritage Growth Properties (SRG) in 2015 to raise about $2.7 billion in cash. While its shares are up 28%, there could be a serious cash-flow problem if Sears goes bankrupt since the property it now rents could be in real trouble.

The Fed told Congress it would buy stocks if Congress allowed it. This statement has caused a lot of people to scratch their heads. Will this cause all the stock bears to rethink their prognostications of a major stock market crash? This was not even on the radar of most people.

Some have reported this story as “the first time in U.S. history” that the Federal Reserve has openly spoken about purchasing of stocks rather than bonds and mortgage-backed securities. While this news may have been shocking to most, South Carolina Republican Mick Mulvaney asked Janet Yellen before the House Financial Services Committee about the Fed’s authority to buy stocks to stimulate the economy. Mulvaney asked:

“There’s been some attention in the last few months about the recent decision by the Bank of Japan to start purchasing equities and my question to you is fairly simple. Is the United States Federal Reserve looking at the possibility of adding the purchase of equities to its tool box as it looks at monetary policy?”

Yellen answered:

“Well, the Federal Reserve is not permitted to purchase equities. We can only purchase U.S. treasuries and agency securities. I did mention in a speech in Jackson Hole, though, where I discussed longer term issues and difficulties we could have in providing adequate monetary policy. Accommodation may be somewhere in the future, down the line that this is the kind of thing that Congress might consider, but if you were to do so, it’s not something that the Federal Reserve is asking for.”

This response shook many on Wall Street. It is true that buying equities has been a part of Japan’s effort to stimulate its economy. We will most likely see this tool attempted by Draghi on Europe since he has run out of things to do. But let’s put this all in perspective. Even China bought US equities, as have other central banks, to diversify since all they can do is have dollar debt given the collapse of the euro and the lack of central European debt. Yet, that is not even the issue at hand.

When the Fed was first established to stimulate the economy during a downdraft, the Fed bought ONLY private corporate paper. It was because of World War I that Congress ordered the Fed to buy only government debt to help fund the war. That was NEVER put back after World War I. Then during World War II, Congress ordered the Fed to SUPPORT government debt at 100% par. That they repealed in 1951.

You can see here in our chart of the US bond market back to inception that there was an immediate surge when the World War began in Europe as capital fled to the USA. Then you see the lows holding a steady line. That was the order to support the US federal bond market. You then see the bonds crash into 1981 (note: blue labels market the start of the issue used 30 year bonds).

Everyone is shocked that Yellen did not say no to buying equities, but a little history is required to understand that it is Congress — not the Fed — who dictates what they can and cannot buy.

CNBC came out and said it is breaking its non-endorsement policy to say Trump is unfit. While the press should never endorse anyone, this election is revealing just how corrupt the press really is. They are conspiring against the people, if not the entire world, to maintain politics as-is. Yahoo reported, “Getty Images Investor Howard Marks is backing Hillary Clinton even though he doesn’t see her as the agent of change the country needs.” This is clearly smelling like BREXIT where all the press predicted the collapse of Britain if the people did not surrender their sovereignty to Brussels.

The press is owned by big business and that is the entire problem. All they do is preach their own book. They rely on government for all sorts of perks. Even Michael Bloomberg has said he would endorse Hillary. The Arizona Republic endorsed Hillary saying she was the “only choice.” Only four newspaper have endorsed Trump: National Enquirer (March 8, 2016), New York Observer (April 12, 2016), New York Post (April 14, 2016), and  Santa Barbara News-Press (June 2, 2016).

The overwhelming endorsement of Hillary despite all the scandals explains why the press will NOT press Hillary for any real issues regarding her health or conflicts of interest with the Clinton Foundation receiving money from foreign governments in return for her approval of arms deals. This reflects a very serious issue. We may perhaps witness the collapse of this media as the younger generation turns to the internet rather than mainstream media.

Newspaper Endorsing Hillary:

Newspaper State Endorsement date Ref.
Storm Lake Times Iowa January 12, 2016
The Portsmouth Herald New Hampshire January 15, 2016
Foster’s Daily Democrat (Dover) New Hampshire January 15, 2016
The Des Moines Register Iowa January 23, 2016
Sioux City Journal Iowa January 23, 2016
Concord Monitor New Hampshire January 24, 2016
The Boston Globe Massachusetts January 24, 2016
The Keene Sentinel New Hampshire January 28, 2016
The Conway Daily Sun New Hampshire January 29, 2016
Iowa City Press-Citizen Iowa January 29, 2016
The New York Times New York January 31, 2016
Monadnock Ledger-Transcript New Hampshire February 4, 2016
The Dallas Morning News Texas February 12, 2016
Tampa Bay Times (St. Petersburg) Florida February 12, 2016
Houston Chronicle Texas February 12, 2016
San Antonio Express-News Texas February 12, 2016
Las Vegas Sun Nevada February 14, 2016
Falls Church News-Press Virginia February 18, 2016
Jewish Herald-Voice (Houston) Texas February 18, 2016
The Greenville News South Carolina February 19, 2016
Corpus Christi Caller-Times Texas February 21, 2016
The Free Lance–Star (Fredericksburg) Virginia February 25, 2016
Star Tribune (Minneapolis) Minnesota February 26, 2016
Fort Worth Star-Telegram Texas February 26, 2016
Detroit Free Press Michigan February 28, 2016
Barre Montpelier Times Argus Vermont February 28, 2016
Rutland Herald Vermont February 28, 2016
Chattanooga Times Free Press
(Times editorial) Tennessee February 28, 2016
Portland Press Herald Maine March 1, 2016
Indy Week (Durham) North Carolina March 2, 2016
Detroit News Michigan March 3, 2016
Miami Herald Florida March 3, 2016
Michigan Chronicle (Detroit) Michigan March 3, 2016
Orlando Sentinel Florida March 4, 2016
Omaha World-Herald Nebraska March 4, 2016
Kane County Chronicle (St. Charles) Illinois March 4, 2016
Sun-Sentinel (Fort Lauderdale) Florida March 4, 2016
The Charlotte Observer North Carolina March 5, 2016
Chicago Sun-Times Illinois March 5, 2016
The Clarion-Ledger (Jackson) Mississippi March 5, 2016
Northwest Herald (Crystal Lake) Illinois March 5, 2016
Jackson Advocate Mississippi March 6, 2016
St. Louis Post-Dispatch Missouri March 6, 2016
The Michigan Daily (Ann Arbor) Michigan March 8, 2016
The St. Louis American Missouri March 9, 2016
South Florida Gay News (Wilton Manors) Florida March 9, 2016
The Cincinnati Enquirer Ohio March 10, 2016
The Plain Dealer (Cleveland) Ohio March 10, 2016
Akron Beacon Journal Ohio March 10, 2016
The Palm Beach Post Florida March 11, 2016
The Missouri Times (Jefferson City) Missouri March 11, 2016
Journal Star (Peoria) Illinois March 13, 2016
The Arizona Republic Arizona March 18, 2016
Idaho Statesman Idaho March 20, 2016
Rolling Stone New York March 23, 2016
Wisconsin Gazette (Milwaukee) Wisconsin March 24, 2016
The Spokesman-Review (Spokane) Washington March 25, 2016
New York Amsterdam News New York March 31, 2016
City Newspaper (Rochester) New York April 5, 2016
The Register-Guard (Eugene) Oregon April 10, 2016
New York Daily News New York April 12, 2016
New York Observer New York April 14, 2016
Newsday (Melville) New York April 15, 2016
The Post-Standard (Syracuse) New York April 15, 2016
The Post-Star (Glens Falls) New York April 16, 2016
The Day (New London) Connecticut April 17, 2016
The Providence Journal Rhode Island April 17, 2016
Times Union (Albany) New York April 17, 2016
The Philadelphia Inquirer Pennsylvania April 17, 2016
Hartford Courant Connecticut April 17, 2016
New Pittsburgh Courier Pennsylvania April 21, 2016
Philadelphia Daily News Pennsylvania April 22, 2016
The Baltimore Sun Maryland April 25, 2016
The Charleston Gazette-Mail West Virginia April 26, 2016
The Sacramento Bee California May 4, 2016
Lexington Herald-Leader Kentucky May 5, 2016
The Desert Sun (Palm Springs) California May 6, 2016
Washington Blade Washington, D.C. May 10, 2016
Los Angeles Times California May 13, 2016
San Jose Mercury News California May 20, 2016
The Fresno Bee California May 21, 2016
The Santa Fe New Mexican New Mexico May 28, 2016
Daily Bruin (University of California,
Los Angeles) California May 30, 2016
The San Diego Union-Tribune California June 2, 2016