The outraged voters in Arizona are just another example of the growing feelings of anger toward government. One citizen captured it best after yelling at the corrupt politicians who rigged the election to ensure Hillary would win. “The corruption has become so prevalent that you became comfortable, and you became so comfortable that you became lazy, and you became so lazy that you got caught. You (Purcell) are a snake in the grass and we see you!”

More than 100,000 signatures have been collected demanding a new election and a federal criminal investigation. They reduced the number of places people could vote by 70% to prevent the vote from coming out. On the Democratic side, we have the machine working hard to ensure Hillary is nominated. On the Republican side, they are doing everything to prevent Trump from being nominated.

Both parties are desperate to prevent the outsiders who would reform their money machine. Stalin will be proven correct in the West as well. Those in power assume it will end as it always does — the people go back to watching TV soap operas and sports and let the politicians rob us blind. Our computer is warning that this will not be the case this time.

Those in power who have something to lose always follow the same pattern of attacks. They are using the very same tactics against Trump and Farage of portraying them as racists because both are against immigration — but they are really against the establishment. When I was in London, I bumped into the very same team from the USA that helped Clinton win the White House. They were there helping Tony Blair. This is a business, and they know how to pull it all together. They turn trying to protect your border and culture into racism. The implication is obvious. Everyone should intermarry regardless of sex, race, or religion. If a parent is against that statement for their child, then obviously they must be a racist.

Immigration has always been a historical issue that arises whenever the economy turns down. During the 1840s, it turned into violence on the streets. The immigrants were white, Irish Christians. It was just that they were taking jobs in an economic decline. Farage’s UKIP is being portrayed as racist, but what is the alternative? Opening borders at this time and place has nothing to do with racism any more than it did in the 1840s. These are economic declining times and absolutely the WRONG instant to bring in any immigrants whatsoever, regardless of race or religion.

Nevertheless, this is how Trump and Farage are being portrayed, and the less intelligent to the less sophisticated buy this nonsense and repeat it. The end result is rather blunt. Historically, this is simply how the West falls — the same as Rome. There were laws passed to prevent intermarriage. It was even outlawed for a man to marry one of his slaves. There have always been attempts to prevent the dilution of a culture for that is how it typically ends anyway. Throughout history, people swarm into the core economy and then bring it down. The Muslim invasion of Europe shows that nearly 80% of the migrants are not even from Syria. This is simply how it all ends. The interesting aspect is that a Muslim friend of mine in Europe is even more against the migrants, for they see them as the lower class and less educated who are indoctrinated with religious beliefs that are extreme. The Muslims I know in Europe and Russia are not extreme and live within a western society with harmony. If they are against the migration, it does not seem to really be a racist issue; it is just an economic issue and that is what the propagandists are using because Trump and Farage are against the establishment — plain and simple.

So to those who want to say no, Trump and Farage supporters are racists, then they should have no problem with their daughters marrying a migrant of a different race, changing their religion, and wearing a Hijab, niqab, or burka for the rest of their lives. If you have any problem with that, you must be a racist. Sorry – it’s politics as usual. (In my case, I told my daughter she better not bring home a prosecutor).

Most markets were undecided on which way to play ahead of today’s main event, and so moves were light and limited. Asia saw all core indices tussle between black and red, and with the exception of China all closed pretty much unchanged. Shanghai closed down 1.3% but that was after a late recovery rally at the close. In late U.S. trading, we have seen China 300 (futures) follow the pack and is currently +0.9% higher than its earlier cash close.

In Europe, despite many nervous traders watching the declining oil price, stocks managed to close in the black and just held on for the day. Early rallies were lost as oil drifted and fears of what Janet Yellen may say once Europe had closed. We have heard from several Fed members recently who said the fear was that Yellen may confirm an April hike! However, in late U.S. trading, futures have followed encouraging signs from the U.S. markets and were last seen adding an additional 0.6% to the European cash closes.

U.S. markets would love to follow the Fed if only the Fed could make up its mind! Recent hawkish comments, and indeed the Fed itself, spoke of an improved economy and the market priced in expectations of an April hike. Only last week we heard from a member talking about the possibility of another hike soon. However, Janet Yellen speaking at the Economic Club of NY today has the market turn tailed as she pushed hike expectations out to H2 2016. The market took her words as softening on the recent hike rhetoric and actually assumed a dovish view on rates. The stock markets loved it with DOW, S&P, and NASDAQ closing up 0.6%, 0.9% and 1.7% respectively.

Gold loved her speech and we saw a $21 (1.7%) rally to close this evening at $1241. Oil sold off today after Iran stated they were not looking to slow oil production anytime soon, and hence we saw a near 3% decline in TWI and Brent.

Again, most of the action today was the result of Janet Yellen’s speech and that is when the FX market seemed to wake up. The DXY lost most of last week’s rally when the DXY lost 0.8% today on possible rate hike delays. Closing this evening at 95.15, key losses were against the Swiss franc, GBP, and the euro.

A surprise rally for the U.S. Treasury market as most dealers had been positioning with recent speakers. The U.S. 10yr opened the day, almost unchanged, at 1.88%, but by the close had gained almost 8bp to close on the high (price) of the day at 1.80%. Interestingly, we saw a parallel shift in the curve with 2’s also dropping 8bp (to close 0.785%). In Europe, we will need to see tomorrow how the peripherals react, but German bund rallied with Treasuries and we saw the 10yr close this evening at 0.14%. This closes the U.S./bund spread at +166bp. Italy 10yr closed 1.23%, Greece 8.5%, Turkey 9.87%, and UK Gilts 1.41%.

Tomorrow we have the ADP employment report and estimates are for a +194k release. But, just ahead of that we see German CPI released – expectation are for a 0.1% print (previous was 0%). Thursday’s close will be the end of Q1, so numbers will be updated. Also, on Friday we see the U.S. NFP release. Always a volatile day but it could be even more so this month as we continue to second guess a Fed that feels drawn in all directions.

We have completed porting over the first memory node in our artificial intelligence system. There are three more to finish. Nevertheless, the first memory node will improve the text in the Investor section. We hope to have most of this uploaded this week. Below is a sample of what Socrates wrote for the Chinese yuan.

US Dollar v Chinese Yuan Cash closed today at 6.5147 and is trading up about 0.32% for the year from last year’s closing of 6.4937. So far, we have been trading up for the past 4 days since the low made on Fri. Mar. 18, 2016. On the weekly level, indeed we have been generally trading down for the past 10 weeks. Methodically, my broader-term projection in US Dollar v Chinese Yuan Cash remains positive since we are trading above last year’s high. Presently, we have made a reaction low in 2014 which was a 19 year decline. Since that reaction low of 2014, the Greenback has bounced for 2 years with this year exceeding last year’s high. This makes this so far a 3 year reaction. To continue this trend, we need to see the Greenback make new highs beyond this year to imply a broader bull market is unfolding with the potential to rise into 2021 before reversing back into a bearish trend. Keep in mind that we did see and outside reversal to the upside in 2014 which is typically a very bullish indication near-term for the Greenback prospectively. To date, this market has not breached any long-term support which begins at 5.2352 on an annual closing basis. We are currently trading below yearly resistance and a closing above 6.6377 is necessary to signal a further advance.

Eyeing the immediate trend remains bullish since February made new highs and we have exceeded that high so far this month. This is further illustrated given the fact last month also closed higher. On the weekly level, the last week of 3/14 was an outside reversal to the downside which is warning of a bearish immediate trend. At this moment, this market is in a downward trend on all our indicators looking at the weekly level. Addressing the direction of this trend, we have been moving down for the past 10 weeks. The last high on the weekly level was 6.5962, which was created during the week of January 4th. The last weekly level low was 631.74, which formed during the week of October 26th. However, we still remain above key support 6.4573 on a closing basis. On a broader perspective, this market remains in an uptrend posture on all our indicators looking at the monthly level. We see here the trend has been moving up for the past 24 months. The last monthly level low was 6.0402, which formed during January 2014. The last high on the monthly level was 6.5804, which was created during February. We have generated a buy signal so some caution is required.

Be it nature or politics, everything dies in a Phase Transition. The fall of communism in 1989 was abrupt and swept from China to Russia within a matter of months. Western political systems will simply collapse by this same process. Everything dies in an explosive Phase Transition. It is said when you die you see your entire life flash before your eyes in a Phase Transition of your consciousness coming to an end like a massive computer crash.

There is no exception to this phenomenon. We live in a sheltered world that assumes man can control the economy and society. We simply cannot accomplish this miracle because we always self-destruct since people do not participate enough and that encourages politicians to wallow in corruption. Those in power leave super rich because they steal and nobody says anything. They write laws to exempt themselves in the same way that Congress is exempt from insider trading. When the people become angered by their theft, those in government are shocked with horror and become indignant. They never see that their corruption creates revolution that seemingly erupts from nowhere.

We will see Western political systems collapse in this same manner in the blink of an eye. For this giant red star, 500 times the size of our sun, its end came swiftly after exploding in about 20 minutes. While life may be measured in billions of years, death comes swiftly to everything. Death in all systems comes very rapidly when you cross the point of no return.

A reader sent this in for everyone to grasp. Job well done.

Whenever the establishment is seriously threatened, they respond with assassination. This is historically the normal in all cultures. One of the more credible conspiracies about the Kennedy assassination centers on the fact that he was against expanding the military and opposed starting the Vietnam War. After Lyndon Johnson approved the war, he latter commented how it was a staged event and that the Vietnamese never fired on Americans to begin with. The official story was that North Vietnamese torpedo boats launched an “unprovoked attack” against a U.S. destroyer on a “routine patrol” in the Tonkin Gulf. Then, the North Vietnamese boats followed up with a “deliberate attack” on a pair of U.S. ships two days later. In 1965, Lyndon Johnson commented, “For all I know, our Navy was shooting at whales out there.” The military wanted war, regardless of the facts. They lied to the American people and took the lives of more than 50,000 boys.

The standard operation is always to assassinate the outsider who resists the establishment, be it military or political. Of course there are plenty of examples like Martin Luther King insofar as activists are concerned. However, proof that the Ukrainian Revolution was real, and not some CIA plot that the communist mafia running Ukraine has spread as propaganda, is the fact that when Ukraine was winning its independence. Those in Parliament at the time were still in the communist mafia and were stealing everything they could from the national production. Viacheslav Chornovil (1937-March 25, 1999) was a political activist who the people turned to as their first independent president. He was very prominent as a Ukrainian dissident in the Soviet Union and was arrested multiple times in the 1960s and 1970s for his political views. A long-time advocate of Ukrainian independence, he was paving the way for contemporary independence in Ukraine. He became known as a dissident after documenting the illegal imprisonment of some Ukrainian intellectuals. They did everything they could to imprison him on non-political allegations. In April 1980, they paid off a girl to claim Chornovil raped her and he was arrested for “attempted rape” since she could not prove he actually did anything. Chornovil was sentenced to five years in prison.

When it became clear he would win the election against the incumbent President Leonid Kuchma, the “former” Communist Party leader in the 1999 presidential election, Chornovil died with his aid in a very convenient car crash on March 25, 1999. The official investigation carried by the Ministry of Internal Affairs naturally proclaimed it was just an accident. He was a national hero and on August 23, 2006, Viktor Yushchenko, the previous president of Ukraine, unveiled a monument to Chornovil and ordered a new investigation into his death, which of course never blamed anyone in power.

Then there was the case of Galina Starovoitova (1946-1998) who began her political career in 1989 when the tide was turning. In the USSR Congress, she became a member of the reformist faction. In April 1998, she became the leader of “Democratic Russia,” which became a registered official party. She was preparing for the State Duma elections that were to be held in December 1999. Galina Starovoitova tried to prevent the old guard from coming to power. Starovoitova opposed the direction of Russia moving from a communist to oligarchy state and made this part of her political platform in “Democratic Russia.” Starovoitova was gunned down in the entryway of her apartment building in St. Petersburg on November 20, 1998. At first, the spin was she was really a puppet of a “western financier,” who was supposed to be me simply because her son worked in our London office.

The point is, those in power will NEVER surrender their power willingly. Donald Trump is flying in the face of people so corrupt that they would not hesitate to have him assassinated somehow, be it a plane or car crash or under the pretense of some minority who gets amazing access. This is standard operating procedure and it is dominant throughout history from ancient times to the present. They will stop Donald Trump one way or another. They cannot afford to lose control of their money machine. The press is part of the establishment, for you can see they have received their orders to portray Trump as dangerous. They should be nominated for an Oscar at the Academy Awards. This is why there is ultimately revolution. No individual can reverse the direction of corruption. Yet the practice of assassination is historic.

So either they rig the convention, or they create an accident. The “establishment” does not appear willing to accept Trump under any conditions.

The Nikkei was the bright spot in Asian equity markets today closing up 0.8% whilst the JPY decline would have cost 0.3% of that gain. It was far better than the declines we saw in mainland China which closed -1.7%. Yuan gained small ground today and was last seen 6.5212. Given the majority of the markets were closed Friday and many remained closed today, volumes were expectedly light. In late US trading the China 300 (futures) trades +0.7% higher than the cash close earlier today.

European futures were in play today with DAX eventually losing a lot of the recovered ground in the morning session only to close the day small down. Volumes were again very light but that is to be expected when core markets are absent. Most core cash markets closed.

Stocks in the US were quiet also trading within a very tight range. This ahead of a very busy week of speakers, data and supply. Oil was down around 0.8% at one stage but that came back into line just by the close. Gold saw a $7 rally to close $1220 around the highs of the day.

US Treasuries gained (in price, lower yield) ahead of tomorrow speech by FED Chair Janet Yellen but also after supply. Earlier we saw $26bln of 2yr notes at an average yield of 0.877%. The bid to cover was only 2.58%, lowest in over 8yrs. 10yr notes also better bid on the day closing 1.88% (-2bp from last week). The curve 2/10 closed 101bp (2bp flatter than last Thursday. We have had a few FED speakers recently alluding to an April rate increase so the market will listen with bated breath as Yellen speaks tomorrow on economic and monetary policy.

USD suffered a little today after softer economic data than expected. Inflation cooled last month dipping 0.1% in Consumer Spending after a +0.1% release in January. We await further direction tomorrow but todays was a reason the DXY lost 0.3%. Core losses were against GBP and Swiss 0.75% and 0.5% respectively.

Gold opened below our opening pivot and traded up to it to test resistance after making a new low this week from the March high. We remain in a critical staging position in many markets as we approach the end of the first quarter on Thursday. We have reached the point of no return which separates the men from the boys in many markets. The Fed is still struggling between surrendering its domestic policy objectives for international policy lobbying. With capital still in flight to the dollar overall as evidenced by the Dow not penetrating last year’s low compared to the S&P500 and the NASDAQ and the BREXIT vote coming up as the European Migrant Invasion continues to tear the EU apart at the seams, the Fed will have to deal with the consequences of international political chaos impacting capital flows.

Richard Nixon unsuccessfully tried to pass a version of Milton Friedman’s plan. Nixon’s Democratic opponent in the 1972 presidential election, George McGovern, also suggested a guaranteed annual income. Milton’s basic guaranteed income proposal was well thought out and substantially different than simply the welfare state. Our welfare system has seriously altered human behavior as it pays people not to work and pays others per child, which creates incentives to have children to gain more money. The welfare system has done much to alter human behavior and destroy the family structure.

Milton’s proposal was to flip the process to create incentives rather than destroy them. It is ironic that the one president who tried to implement this plan was taken down by the Watergate scandal. The proposal passed Congress and the Democrats stopped it in the Senate under the pretense that they wanted more money.

Another important aspect of Friedman’s proposal was that there were no strings attached. The government did not attempt to tell people what they could buy or do with the money. Whenever government gets involved, they typically screw things up pretty good. Driving to work, I see signs offering cash for diabetes materials that people on welfare get from government. Others sell their food stamps. When you just hand people things, they will alter their behavior to get rid of them if if they do not need them. Milton’s proposal eliminated the government red tape, yet instilled the spirit to raise oneself up out of poverty. This type of system made sense.