Once upon a time, couples would have three to five children for that was their retirement. Family was everything. Then came Marx who effectively replaced the family with politicians. The family structure has declined steadily since the introduction of socialism. Children no longer save to take care of their parents for that is government’s job.

While some still tout that we are becoming over-populated, the number of children has been dropping remarkably. In China they implemented the one-child rule. That resulted in couples only wanting boys to carry on the family name. But daughters are typically those who take care of their parents zealously. China passed rules that the only child had to visit their parents. Now, the government is stepping in again and reducing the credit of adult children who do not visit their parents.

In the West, family size has fallen by about 50% from World War II. In Eastern Europe, the family structure remains intact only because people learned under communism not to count on the state for anything. In the West, people are living the dream — and that is all it is. They actually think government cares about them. This is why there is a new awakening we are watching with the manifestation of an new anti-establishment era.

Socialism has drastically altered the family structure. Government claimed it would replace the parents, and as a result, they succeeded in altering the very foundation of humanity that supported the family for centuries.

Tim Cook, the head of Apple, said that the company may send billions of dollars back to the US next year in 2017 in response to the EU Commission retroactively changing tax deals. Apple struck a deal with Ireland and agreed to locate there for taxes. Now the EU Commission is saying individual member states may not undercut anyone else on taxes to gain jobs for their own population. Apple entered into the agreement and paid the taxes to Ireland. Now the EU Commission says Apple must pay almost $15 billion more in taxes because Ireland undercut other members. Bureaucrats do not understand human nature and assume that people must obey and cannot see that this may destroy their own economy. The EU Commission cannot see reality. What they have done with Apple is set in motion a race to now exit Europe.

Cook made the comments in an interview with Irish media expressing the blunt fact that Apple may now simply repatriate cash back to the USA. He did not specifically say how much cash Apple might take home from foreign countries. Nevertheless, Cook’s comments are a direct response to the arbitrary position of the European Commission demanding Apple needs to pay Ireland $14.5 billion in additional tax penalties because the deal was less that they would have charged. Cook has publicly stated that this EU demand was “total political crap.”

Back during the S&L Crisis, we had clients who wanted to buy the failed S&Ls. I warned them that they should not get involved for they were dancing with the devil. Two clients did not listen. They bought the S&Ls they believed were cheap. Then as the crisis kept getting worse, the government changed the capitalization requirements. These two clients suffer complete losses because by then changing the capitalization AFTER they bough the entities, they themselves were then declared insolvent and the government retook the S&L based upon retroactively changing the requirements.

You cannot win. Once government has their foot in the door, game is over. You are dealing with people who generally hate your guts because to them, everyone in the private sector are rich and corrupt. They are jealous that those in the private sector have everything and they have to work for government.

Think back to high schools. Recall the bullies who stole people lunch money and enjoyed pushing others around. Look them up today. Chances are they work for government.

In Philadelphia, they spent a tone of money to create the convention center. We booked it for our conference. It was owned by the city. They could not even run that like a business, The demands kept getting worse by the day. They said I had to buy terrorist insurance covering the convention center, the city of Philadelphia, and the State of Pennsylvania. When I called my agent he thought it was joke. Then the film crew coming from Germany was told they could not film because they had to use only local unions. Add to this insanity, anyone coming to the WEC by car and wanted to park in their garage had to prove they had car insurance. It became impossible. No garage demands you prove you have car insurance to park.

Only people working for government can make up such crazy nonsense. We called the Marriott and they were free. With 2 weeks to go we had to move the conference. The Marriott asked, was it the terrorist insurance? You cannot deal with government. It simply is beyond all reason. The EU will send foreign companies packing and they will blame the greed of corporations rather than their own stupidity of retroactively change tax deals without notice.

I am receiving tons of emails from amazed readers who are congratulating me on our model that forecast a rise in third party activity from Europe to Asia. This rise is becoming obvious everywhere around the globe as a new era of anti-establishment. I showed this chart of the number of European separatist movements back at our 2012 Berlin conference. What you have to understand is that this is BY NO MEANS my personal revelation or opinion. No person can simply spout out such forecasts on an “I think” perspective. Sure, someone can say that and then claim they are brilliant, but even a broken clock is correct twice a day.

Real forecasting can only be accomplished globally. It requires imputing everything that moves and then, and only then, can you walk away with an understanding of how, why, and when. This forecast was made in 1985. The timing remains the same for each wave. We projected 2015.75 as the peak in government globally and that the 2016 election would be an anti-establishment rise. This was not by luck. Such things unfold because people are complacent and politicians are thieves. The politicians in a republic ALWAYS become corrupt and sell themselves to the highest bidder. Hillary is the poster child for this corruption that is just in your face. She takes money from country leaders who oppress women, yet she claims to stand for women’s rights. She stands with whoever pays the most.

By the 2018 election, we will probably see a wholesale overthrow of Congress, especially if they elect Hillary. Just as Obama was a great disappointment since so many people thought being black he would stand for something, they will become disenchanted with Hillary if they rig the election. Hillary, if she wins, may be impeached for everything she has done. It just keeps coming out with one revelation after the next. As the economy turns down, the people will turn against her.

The excuses are endless for the British vote to leave. They said it was austerity, immigration, fall in real earnings, social inequality, loss of domestic manufacturing jobs and fishing rights to over-regulation. The explanations have been endless. The biggest political question of our day is right before our eyes, yet the mainstream media is so much a part of the political corruption that they cannot see the truth anymore no less the trend.

Why are so many electorates around the developed world shifting away from politics as we have known it to anti-establishment movements? Only our model has forecast this shift with the timing correct. This is the explanation behind not just BREXIT, but Marine Le Pen in France and Donald Trump in the United States. The road ahead is dark and the night is full of terrors. There is hopefully a light at the end if we understand why this trend is even developing. It would be nice, just for once, to take a step forward to a new era in politics toward a real democracy and put an end to republican style governments that are ALWAYS swallowed by corruption.

Asian equity trading was purely a follow-on from the US session retracing much the same issues and momentum. The Nikkei closed positive whilst attempting the stronger trend while the Shanghai trod water for most of the day, despite stronger than expected PMI data but then eventually lost all that in the final hour to close the day down -0.7%. The Hang Seng however, broke into levels not seen in over a year, closing up +0.85%. The continued JPY weakness helped Nikkei exporters but that trend appears to be a little stressed in recent traders comments.

European stocks were trading well until mid afternoon when the US PMI ‘Manufacturing’ data was released. Expected with a reading of 52 the actual release was 49.4; which not only missed forecast being below 50 is a contraction of interest and the weakest number in many months. Core Europe resulted in a mixed session with the IBEX and CAC closing +0.55% and 0.03% respectively whilst both FTSE and DAX closed -0.5% the pair. As Europe closed many were watching Asian futures for a possible guide to the Friday open but hoping US indices retrace much of the early losses. UK PMI was better than expected resulting in a 1% rally in the GBP upon the news, that however lost much of the move towards the US close.

US markets opened weaker and certainly were not helped with the PMI numbers but did see a very encouraging recovery during afternoon trading. By the US close both the DOW and NASDAQ had recovered and closed up whilst the broader S+P managed to close back at unchanged. Concerns around the number now put in question whether a September rate rise remains on the card or not! The first Friday in the month tomorrow and so we see the Non-Farms Employment report. All eyes will be fixed on this on screens at 08:30 EST and 13:30 BST tomorrow looking for a +180k headline and a 4.8% employment rate, any large variation upon these numbers will probably set the trend for the balance of September.

Todays uncertainty in stocks has had a knock-on effect in the Treasury market with bids again seen for the curve. 10’s closed better on the day having seen weakness earlier in the session. US 10’s closed -2bp at 1.56%. In Europe the Bund market was again supported closing 10’s at -0.07%; which closes the US/Germany spread at  +163bp. peripheral spreads were marginally wider with Italy 10’s closing 1.05% (+4bp), Greece 7.94% (+2bp), Turkey 9.64% (+bp), Portugal 3.02% (+1bp) and UK Gilt 10yr closing 0.67% (+2bp).

Rudy Giuliani explains how he would have indicted Hillary.

This is the most interesting presidential election in American history. It obviously reflects precisely what our computer projected for 2016 back in 1985 based solely off of economic trends. However, the polls view Hillary as the most dishonest candidate in history and Trump as a hothead. What they do not understand is that Hillary is the one with a violent streak in her. She gave Bill a black eye. She certainly does not have the temperament to be a president.

However, Americans are actually considering supporting a third party. Quinnipiac University conducted a poll asking that very question: Would you vote for a third-party candidate? The response was a shocking 37% said they would consider voting for a third-party candidate. Gary Johnson is the Libertarian candidate. Here is our original forecast that showed 2016 could be the biggest spike in third-party votes in American history.

Note that the two former major highs were effectively a double top at the 30% level. They were about one 51.6 waves apart (6 x 8.6). The next target on this transverse wave projection is 2016. The support for Trump is tapping into this. He beat all of the career politicians to run in the Republican camp. Then Bernie put on a close race for Hillary who was supposed to walk down the red carpet for her coronation. What went wrong has been this general rising feeling that enough is enough.

The press is trying so hard to rig the game against Trump. Yet, what they may end up doing is exposing their own corruption, and as such, we are more-likely-than-not looking at the collapse of the pretend “free press” that is orchestrated by government.

The people may not know very much about Gary Johnson, but perhaps no news is good news these days.

QUESTION: I read your latest article how the American Press is engaging in propaganda. I also recalled your July 29 article on Congress authorizing the use of propaganda against the American people. Are there any signs that we can identify propaganda when that is the agenda? Is there some clue?

You are the only person who was on the inside who speaks out.

Thank you

ZT

ANSWER: Children are always the number one tool for propaganda. Whenever you see a story using children, it is the first sign of propaganda. Whenever they use children, it is to cover-up something or to get you to support some agenda. They used pictures of children sell the refugee crisis, yet more than 60% are not even from Syria and most of the refugees are young males and not families.

The latest attempt to influence Europeans is this one that even the Guardian just declared the “new symbol of the horror in Syria.” Children are always exploited to sell an agenda.

This is the primary tool of all propaganda machines. The British established the Office of War Propaganda during World War I and became the first to establish a government agency for the purpose of creating propaganda. They enlisted famous authors like Arthur Conan Doyle, H.G. Wells, and Rudyard Kipling to write books casting the Germans as the enemy. MI6 has since created Innovative Communications & Strategies (InCoStrat), which is a sophisticated propaganda machine.

The United States adopted the British method in 1917 after establishing the Committee on Public Information in which they carried out experiments to manipulate people to a given agenda. They too employed some well-known people such as journalist Walter Lippmann and the inventor of modern publicity, Edward Bernays, who was Sigmund Freud’s nephew.

Even during World War II, the US government used children to sell bonds. There is little doubt that the use of children is the primary motivator. Even in prison, if someone is charged with child molesting, other inmates kill them.

Children are the NUMBER ONE means of engaging in propaganda. So whenever you see some bill signed by the president, whoever that might be at the time, surrounded by children, you know there is something sinister hidden in the bill.

Obama surrounding himself with children for gun legislation, that disarms the honest people and not the criminals, can only mean one thing. They are trying to disarm the population for fear of civil unrest. Criminals do not fight for constitutional issues. They are using the guns in the drug trade as the Mafia does. They could care less about the politics. They ignore them anyhow.

The Nikkei saw another impressive day today with the index closing up +0.97%  but at the same time the Yen continues to lose ground. In late US trading we have broken again the 103.50 level with the lose this week close to 3%, there are many rumors around BOJ intervention in the FX but all appears smooth so far but is more reacting to the weakness being worked into the Yuan as the PBOC plays with longer term refi’s. The Shanghai index managed a 0.35% gain on the day whilst the Hang Seng small a small loss (-0.17%).

The DAX did make many attempts throughout the day to move out of the red but alas it was not to happen. Closing down 0.6% it had a difficult time as inflation data remained unchanged and despite rumors of Deutsche Bank merging with Commerzbank and both shares closing 3% higher. The CAC and FTSE did have the occasional positive prints but neither managed to close up on the day. Oil really did not helps stocks today as its price declined 3% as expectations of a global slowdown continue to be voiced.

Main US indices hit the days lows just after lunch and spent the  remainder of the day clawing their way back. The last day of the month has seen a traditionally quiet yet impressive summer performance with the DOW closing around 1% higher whilst the broader Russell 2k higher by over 2%. ADP stored no surprises for the market today releasing at +177k against a market consensus of +175k. Normally, we can use this as some kind of indicator for Fridays NFP’s but that was not to happen today. We do have data tomorrow but all eyes will firmly be on Fridays release.

Another quiet day in the Treasury market with US 10’s closing unchanged 1.57%. Interesting that Bunds started a sell-off today with many talking the rumored Deut Bank/Commerzbank a sign that they are finally addressing these issues. German bund closed -0.06% (-3bp), which closes the US/German 10yr spread at +163bp. Italy 10yr closed 1.14% (+4bp), Greece 7.93% (+1bp), Turkey 9.58% (-4bp), Portugal 3.01% (+2bp), Gilts closed 0.64%.

Private Blog Update for August closing of the Dow

We only elected the 1330 Daily Bearish. We did have another I did not mention at 1320. The next one we will see today. They are basis bearish futures not  the spot month of September.