Private Blog Update on Gold

We have a socialist, a criminal, and an amateur who speaks before he thinks all running for the position of leader of the “free world” which is anything but free. Then we have a press so in bed with the politicians that they often seem to be crossbreeding. CNN, ABC News, and CBS News all have family ties to the Democrats. No wonder they will never hit Hillary anywhere close to how they jump on Trump. Hillary clearly should be indicted, but Obama will not do so. Endorsing Hillary means Obama has put out the word that there will be no indictment. If it was Trump, you could bet he would be in jail with no bail.

The Trump University suit is presided over by political activist Judge Gonzolo Curiel who had the audacity to schedule a hearing and order Trump to appear in court on the day of the Republican Convention. That demonstrates Judge Curiel’s political strings and where they lead. Then the lawyers who brought the suit against six people out of almost 10,000, are also political activists. Robbins Geller Rudman & Dowd, the law firm behind the class action lawsuit against Trump, paid the Clintons $675,000 in speaking fees. Every possible place you turn, the truth shows nothing but political manipulation and blatant corruption. These are the types of people robbing our future and that of our families.

Then the Associated Press (AP) had the audacity to announce that the majority of super delegates were voting for Hillary based on an advanced poll, so she won before the voting even began. The timing revealed, once again, that the AP was playing politics to ensure people would give up and not go to the polls to vote for Bernie. You have to ask — what the hell is all this corruption about? These people figure they are above the law so they can screw the rest of society to further their personal gain. If Trump won, the Justice Department would indict Hillary and a lot of others. It might become the next big reality TV show – “Watching the Clintons & Cronies.” Of course, the mainstream press would not cover it because they might be involved.

The people went to the polls on Tuesday, June 7, in California, Montana, New Jersey, New Mexico, North Dakota, and South Dakota to select presidential candidates and much more. Meanwhile, the votes the AP tried to prevent in the United States were not entirely a coronation for Hillary. Clinton has won New Jersey with about 59.2% while Sanders won North Dakota almost by 64%.

About one-third of Bernie supporters say they will vote for Trump before Hillary. The under-45 crowd is not loyal to party lines. They look at candidates, which is quite refreshing. Hillary beats Bernie only in the 45+ range and the absentee ballots are typically the older people who cannot make it to the polls for health reasons. They will vote for Hillary, hands down. Bernie leads Hillary in the under-45 crowd who are definitely not party driven. Nevertheless, it appears that the AP did its job. Hillary may take California with over 50%. Why announce the winner before the people vote? That seems very Stalinist and by no means “free objective” press. I personally lost respect for the AP after that.

We have a socialist, criminal, and an armature who speaks before he thinks running for what they all want to think is the leader of the “free world” which is anything but free. Then we have a press so in bed with the politicians, they often seem to be cross-breeding.  CNN, ABC News and CBS News all have family ties to the Democrats. It is no wonder they will never hit Hillary anywhere close to how they jump on trump, and she clearly should be indicted, but Obama will not do so. Endorsing Hillary means Obama has put out the word – no indictment. If it was Trump, you can bet he would be in jail with no bail. The Trump University suit is presided over by a political-activist Judge Gonzolo Curiel, who had the audacity to schedule a hearing ordering Trump to appear the day of the Republican convention. That demonstrated his political strings and where they lead. Then the lawyers who brought the suit for 6 people out of almost 10,000, are also political activists. The firm  Robbins Geller Rudman & Dowd, the law firm behind the class action lawsuit, paid the Clintons $675,000 in speaking fees. Every possible place you turn, the truth shows nothing but political manipulation and blatant corruption. These are the types of people robbing our future and that of our families.

Then the Associated Press (AP) had the audacity to announce they polled super delegates and they would all vote for Hillary so she won before the voting even began. The timing revealed once again the AP was playing politics effectively trying to ensure people would give up and not got to the polls to vote for Bernie. You have to ask what the hell is all this corruption about? These people figure they are above the law so they can screw the rest of society to further their personal gain. You do have to wonder that if Trump won, will the Justice Department be indicting Hillary and a lot of others.

Meanwhile, the votes the AP tried to prevent in the United States when the people went to the polls on Tuesday, June 7, in California, Montana, New Jersey, New Mexico, North Dakota and South Dakota to select presidential candidates and much more, were not entirely a coronation for Hillary. Clinton has won New Jersey with about 59.2% while Sanders won North Dakota almost by 64%. Then about one-third of Bernie supports say they will vote for Trump before Hillary. The under 45 crowd are not loyal to party lines. They look at candidates – quite refreshing. Hillary beats Bernie only in the 45+ range and the absentee ballots are typically the older people who cannot make it to the polls for health reasons. They will vote for Hillary hands down. Bernie leads Hillary in the under 45 crowd who are definitely not party driven. Nevertheless, it appears that the AP did its job. Hillary may take California with over 60%.

Believe it or not, Swedish girls under 15 are causing Muslim men to rape them, according to the Swedish government. Politicians can never be wrong, so the problem is not that they let all these unemployed Muslims in for welfare, it is that Swedish girls are just asking to be raped. This is the absurd reality that was presented in an unbelievable police report, which looks at why Sweden has the worst rates of physical and sexual violence in all of Europe.

As reported in the Express, the police concede that the vast majority of attacks have taken place in public places and involve Muslim migrants. The report goes further by stating that these Muslims, who are not following their faith, are getting drunk and cannot “handle the alcohol” as they simply feel “horny” and have “ignorance of the consequences for the girls.” So it is the girls’ fault, not the migrants, and certainly not the politicians. When will the fathers start dragging the politicians out into the streets? You know that day is coming.

QUESTION:

Danny

ANSWER: People who claim that capitalism has failed are seriously burdened with propaganda. Capitalism is freedom, and socialism is effectively the lack of freedom. True, we have done nothing but interfere with the economy since the theories of Marx and Keynes were adopted. Yet, Paul Volcker admitted that this “New Economics” has failed. This whole theory was based on the idea that government could manipulate society to produce utopia, but they have never been able to achieve that. Larry Summers has admitted that publicly, but the socialists do not listen because they want to rob their neighbors.

Innovation comes in waves and technological advancements always displace jobs. The problem has been that people do not improve their worth, yet they demand pay hikes just because they want more money. If you go to Miami, the number one language is Spanish. They want to raise the minimum wage to $15 instead of encouraging people to learn English to broaden their worth. Anyone who has computer skills starts at $15+. So why should people without employable skills earn the same as a person with technology skills?

I had a friend who was a pilot during the Korean War. He told me that many of the old pilots could not make the transition when the new jets came in because they were unable to respond as quickly to the increased speed. Every field moves through the same advancement curve. Unions attempt to freeze skills by demanding more money rather than teaching people to adapt and move with the cycle.

The system will always correct itself as it has done throughout history, long before Marx/Keynes. It is always subject to the business cycle, which is influenced by many factors including weather. Capitalism began with the Black Death. Before then, it was a highly socialistic world or serfs. You worked the land and kept 20% of the food in return for a house to live in, and you could run into the castle when danger came. The Black Death killed about 50% of the workforce and the scarcity of labor resulted in landlords being willing to pay wages. The shortage of labor gave birth to capitalism. So, there will always be cycles to the economy.

Romans invented corporations. They bought and sold shares in the marketplace, and that freedom of capital created Rome (not centralized planning). The system has always been self-correcting. Technology will advance, which will displace jobs and cause unemployment to rise. In turn, corporate profits will be brought down and war will typically emerge to thin the herd. Eventually, the next generation becomes better equipped to ride the next wave of innovation.

The constructive comments provided by Fed Chair Janette Yellen last evening certainly helped Asian equities today. The Hang Seng performed best recording a 1.4% gain on the day whilst the main China Index managed just 0.1% gain which was a relief having spent the majority of the day in negative territory. The Nikkei saw a whipping session but did close 0.6% better eventually. In late US trading we have seen additional 0.3% gains for both the Nikkei and China index futures. Also overnight the Reserve Bank of India kept rates unchanged as did the Reserve Bank of Australia.

It was the turn of the DAX and CAC today after yesterdays FTSE performance. The DAX recorded a 1.65% daily gain whilst we saw a 1.2% run for the CAC. IBEX managed just 0.8% and FTSE hardly scrapped a 0.2% improvement. Eurozone GDP was marginally better than expected (0.6% q/q against an estimated 0.5% and on an Annual basis 1.5% estimated against actual of 1.7%).

Unexciting data from the States resulted in core indices losing momentum to close barely positive today. News that Productivity and Labor Costs contracted slightly as opposed to a marginal expansion and markets began to doubt themselves as we approach the psychological 18k level in the DOW. The VIX Index edged back above 14 as we drifted back to the close.

Bonds were in focus again today with supply today and in Europe, tomorrow. In Europe talk continues around the corporate debt as the new big buyer sharpens his pencil. Wednesday we see Germany auction Eur5bn 2yr paper and Portugal taps around Eur1bn 6 and 9yr paper. Demand for government paper continues after today the 10yr German Bund hit a low of 0.045% In the US this evening we saw the Treasury Department auction $24bn 3yr notes at 0.93% – demand was good with a bid to cover ratio of 2.79. US 10yr paper closed 1.71% (-2bp) which closes the US/German 10yr spread at 166.5bp. 2/10 curve closed at 93bp. Italy 10yr closed 1.42% (-4bp), Greece 7.31% (+13bp), Turkey 9.31% (+3bp), Portugal 3.09% (-7bp) and UK Gilt closed 1.26% (-1bp).

Trump keeps shooting off his mouth in the stupidest way, but he should know that they will turn whatever he says against him (FYI: Hispanic is not a race, it is an ethnicity like French or German). Hillary and her cronies announced she won before the votes were placed just in case Bernie beats her in California using “super delegates.” The interesting aspect is the fact that we may see a real upset on Capitol Hill. This is an anti-establishment rebellion that the Democratic and Republican hard-liners refuse to concede.

The old politicians like McCain are in trouble. They are likely to lose and we may see a real upset on the Hill. If the American people are stupid enough just to replace Republicans with Democrats, then you can count on Washington to really go down in flames in the eyes of the people by 2018.

We are running our models now on the Congressional level. By 2018, we may see a political revolt. We will announce the results soon. Already, our models are targeting November for big volatility. This is one reason why we selected to have the World Economic Conference after the elections. This is more than just a presidential reality show with candidates who many view as unfit to even be dog catcher. We may see a very interesting outcome on the Hill itself.

The press is clearly in the pocket of the establishment. Today they announced a poll to try to prevent Bernie from winning California where he had a slight lead. They polled the super delegates (who are outside of the democratic process entirely) to see who they will vote for. The fact that they had to poll these people demonstrates that this is an anti-democratic process and the entire primary process is a joke.

Using super delegates, the press cheered their own corruption today after announcing that Hillary was the winner before six states voted. This move to stop Bernie demonstrates how the press is in league with the elite politicians to defeat the people at every possible stage. Nobody is willing to just let the chips fall where they may.

A Gallup Poll from last September revealed that the majority of Americans, 60%, say a third major political party is needed because the Republican and Democratic parties “do such a poor job” of representing the American people. Since 2007, Gallup has shown that this is a rising trend, which explains Trump and Bernie. The majority of Americans have generally called for a third party, with the exception of the last two presidential election years. In more recent polls, 20% of Americans say they would vote for a third-party candidate over Trump and Clinton.

Recent polls have shown that Clinton is disliked more than Trump among 56% of voters. In fact, this poll, conducted by Data Targeting, found that 55% of respondents preferred a third-party option, while 65% said they would be willing to support any candidate besides Trump or Clinton.

We have been flooded with emails asking how our computer was able to forecast this trend for 2016 decades in advance. This chart from the 2011 WEC demonstrates the overall trend in third party movement. The huge spike you see in the mid-19th century was due to the split of the Democratic-Republican Party, which was a religious battle over slavery with Abraham Lincoln becoming the first Republican president.

Do not forget that Lincoln was assassinated. James Garfield was assassinated on July 2, 1881, and we saw a rise in third-party activity during that period. William McKinley was assassinated Sept. 6, 1901, and again, this began a rise in third-party activity. Note that after John F. Kennedy was assassinated on Nov. 22, 1963, there was yet again a corresponding rise in third-party activity.

Theodore Roosevelt was shot in the chest on October 14, 1912, but survived. Yet, we saw a huge spike in third-party activity at that point in time as well. Gerald Ford had two attempts made on his life in California on September 5 and 22, 1975. and again on September 22, 1975. Ronald Reagan suffered an attempted assassination on March 30, 1981. He was shot but survived. Bill Clinton had four plots against him, beginning on January 21, 1994, with Ronald Gene Barbour, a retired military officer. Then on September 12, 1994, Frank Eugene Corder flew a stolen single-engine Cessna onto the White House lawn and crashed it into a tree. On October 29, 1994, Francisco Martin Duran fired at least 29 shots with a semi-automatic rifle at the White House. Then in 1996, on a trip to Manila, a fourth plot to assassinate Bill Clinton was prevented.

All of these attempts correlate to the economy and third-party activity. Hillary says Trump is dangerous, but the Democratic socialists are attacking Trump supporters. Everything ties into the economy. A rise in violence will follow the election. This is all coordinated with the corruption in politics.

Amazingly, 71% of Democrats think Hillary Clinton should continue running for president if she is charged with a felony in connection with her private email use while serving as secretary of state. Exactly how does someone run the country from prison? Of course, those identifying themselves as Democrats are the over-50 generation, whereas the under-30 crowd does not really have party loyalty to either side.