Neil Bush joins Cruz

The Bush clan is now backing Cruz. Cruz’s wife, Heidi, is a managing director at Goldman Sachs. Astonishingly, Cruz forgot to disclose that Goldman Sachs gave him a loan to campaign. That would be plausible if hundreds of people did that. But how could you “forget” that your wife’s employer gave you the money? The bullshit just gets deeper and deeper. It looks like we will need a backhoe instead of a shovel.

As for Hillary, well, she is in bed with Wall Street so much that it is a joke. Her chief economic adviser is Alan Blinder who is opposed to bringing back the Glass-Steagall Act and supports the bankers. He has come out and stated that we will not see the Glass-Steagall Act restored. So it does not matter if it is Cruz or Hillary, for there will be ZERO financial reform in New York and your taxes will soar to pay for all their shit and cronies.

We are really heading into a war of the people vs. establishment. Perhaps our computer will be right that by 2018, we could witness a wholesale displacement of career politicians. Then again, it may be like Portugal. They simply refused to allow elected members who wanted to exit the euro take office. Roman Emperors never used the title “king” because the original revolution overthrew their Tarquin king. The Imperial Era maintained the pretense of an elected consul, but they were, in effect, a monarchy without the title. Yet, we have unelected people controlling the reins of power, and unfortunately, we always end up screwed no matter what title they claim. So welcome the elite establishment. They will not leave the party because they are too drunk on power and cannot find the door.

Caution this is very disturbing

This is the video evidence that shows how ruthless government employees have become against the people. This is the outright murder of Robert “LaVoy” Finicum. Nobody shot at the police. Yet, they murdered LaVoy and kept shooting at the people in the car in an attempt to kill them all. This is an international outrage and would be a war crime by any other standard by which they demand soldiers be prosecuted on with such evidence. If this is the police then we are all just the enemy. They deserve life in prison and to protect these cops, is an invitation to ALL police to just do whatever they like. Why does Obama not demand that guns be taken away from police who just use them at will recklessly? You are far more likely to be killed by police than by a terrorist. They know they can kill you without any charges. So they have no restraint and shoot to kill anyone without remorse.

LaVoy made the fatal mistake that he still believed in the system. He states clearly you will have his blood on their hands as if he believed that would bother them. That is the key point here. These types of people view us as the hated enemy. They will slap each other’s hands in a high-five fashion like winning a touch-down when massacring unarmed citizens as if we are deer on a hunt. We have crossed the point of no return. They no longer see us as the people they are sworn to protect. It is now them against us and any confrontation gives them the right to murder us unarmed. This is a sad statement for it is becoming far more common like a disease spreading among the police. A friend’s daughter wanted to become a law enforcement officer. He has shown her many of these cases. She has changed her mind for she no longer wants to be associated with this type of conduct.

In another case, eight Los Angeles police officers opened fire on two women in a blue SUV because they were looking for someone driving such a vehicle who killed a cop. They never bothered to see if it was even the suspect. They shot at two women over 100 times. They will not lose their jobs. Of course not. They won’t even be suspended. They’ll just get some “additional training” so next time they can kill innocent people at least on the first shot instead of wasting 103 rounds that cost money.

And they wonder why people are angry and fed up with the establishment? Come on. Refusing to prosecute any police emboldens them all and that is scary for they become an occupying force as if we lost the war and are invaded. This is exactly what inspired the American Revolution. Jefferson stated it in the Declaration of Independence.:

“For Protecting them, by a mock trial, from punishment for any murders which they should commit on inhabitants of these states.”

One primary incident was the “Boston Massacre” which was the killing of 5 colonial individuals and wounding six by British troops. The troops were sent over to control the rebellions that were caused by the Townshend Acts. They opened fire exactly as you see in this video against unarmed citizens. We suffer the very same injury today and they are NEVER prosecuted. The king is dead, long live the unelected bureaucracy.

All core Asian markets closed down but off their lows. Shanghai was down almost 4% in the morning session and so a -1.3% close almost felt like an up day! All eyes still seem to be concentrating on the RMB against the USD, fixed on every daily move. It is worth monitoring the RMB against a basket rather than the strengthening USD daily – more on this soon.

The Nikkei refused the 17k handle closing down 0.8% and even a 1% rally in overnight futures trading keeps us below the psychological 17k number. The stronger JPY was a reason offered for the weakness in exporters (Nissan -1.3%, Honda -1%) which dragged the Index lower on the day.

Despite a weaker Asian display, the core of Europe actually traded rather well. The positivity did begin to wane around mid afternoon when 1% gains in core returned unchanged on the day. However, momentum did return into the close, which resulted in all core’s closing up around 0.4%. Obviously, all eyes will be on the ECB at 12:45 LDN tomorrow when the rate announcement will be made followed by the statement and Q+A  session which starts at 13:30 LDN.

The US market saw a quiet day today but is probably to be expected ahead of ECB tomorrow, Fed and BOJ next week, a controlled oil market, a marginally weaker USD and some content traders watching VIX play around the 19 level. DOW, S&P, and NASDAQ all closed small better (+0.20 – 0.45%) and volume has been light, probably around 20-25% below normal trading volume.

In gold, there was not too much to write home about with both off intraday highs reversing into the afternoon trade and seeing a close down $10 at $1252. Oil saw another positive day gaining almost 5% for WTI and a 3% gain for Brent.

US Treasury market did get a mention earlier when the 10yr auction saw reasonable demand but did see a sell-off just after. Initially, we saw 10’s trading at 1.83% but by the close are watching 10’s trade at 1.88% which in fairness is lower than the auction average of 1.895% but we did hear 56.5% of the $20bn supply went to indirect bidders. This additional supply today did hit 10’s out of line but will realign once the supply has been placed. Late this US evening we hear that New Zealand has just cut rates to a record low of 2.25%. The NZ$ obviously hit on the news and was last seen down 1.5%. In Europe ahead of the ECB and with the market eagerly waiting Mario Draghi’s address bonds have traded lower but are still pricing-in some quite aggressive easing by the ECB. German 10yr Bund closed 0.245% (6BP), Italy 10yr close 1.41% (-1BP), Greece close 9.09%, Turkey 10.04% (-11BP) and finally UK Gilt 10yr closed 1.47% (+8BP).

The long awaited ECB tomorrow then we wait for FED and BOJ. JGB’s started to sell-off today – maybe we find out why next week!

This year’s report will not be part of the WEC Materials. We are looking to hold the next WEC conference after the presidential elections. Part II of this report will include all the metals, such as gold, platinum, palladium, copper, along with silver. We will also do the precious metals in the various currencies. The second half of the report will be available later in the year.

Part I focuses on the immediate reaction. This is a detailed analysis of the interrelationship with silver focusing also in the gold/silver ratio, which is critical at this juncture in time. The report also includes a video we made last week, so this is very timely.

The “2016 Gold Report” is priced at $500. This includes the video, part I, and part II.

Reports are going out today via e-mail.

Most people are clueless as to the legality of what they are doing when they vote. You think you are voting for a candidate, but you are actually voting for delegates to represent you. The delegates will represent you on the first vote at the convention and then they are free to vote for whoever they choose. Even in the national election, you technically and legally do not vote for candidates. You vote for delegates to represent you in the Electoral College process. You never actually vote for a candidate.

The audacity of Mitt Romney to come out and bash Trump, yet not endorse anyone else, was a blatant play to be drafted by the Republican elites whom are looking to rob the people of any Democratic process. Romney is deeply entrenched within the elite. In July 2012, Cheney used his Wyoming home to host a private fundraiser for Romney, which netted over $4 million in contributions from attendees. If Romney were to be president, Cheney would be hiding in the shadows.

Politicians are becoming the same worldwide. In Europe, the Troika never stands for election, yet they rule over the people with an iron fist with one hand, and the other hand is used to pick the pockets of the great unwashed. They regard the vote of the people as routine and easily manipulated. A Republican questionnaire that was sent out didn’t ask what the most important issues were, it only asked the social bombshells. There is nothing addressing the economics.

Then there is the dark pool of “superdelegates” who are not involved in the Republican Party nomination process and are thus a check against any democratic system. These superdelegates in the Republican National Convention are actually seated automatically, but they are limited to three per state, and in theory compose more than 10% of the required number to be elected as the candidate at the national convention. These superdelegates consist of the state chairperson and two district-level committee members. Republican Party superdelegates are therefore obliged to vote for their state’s popular vote winner under the rules of the party branch to which they belong, but this rule can be changed.

The “superdelegate” actually began in the Democratic National Convention. They were the means for the elite to control the convention. Distinguished from other delegates, the superdelegates were seated automatically and could choose to vote for whoever they wanted to vote for. Democratic superdelegates are free to support any candidate for the nomination. This contrasts with the delegates “pledge” to vote for who won the popular vote. This entire process is very anti-democratic and is designed for the elite to control the election.

Then there is the Electoral College process, which the Founding Fathers established in the Constitution as a compromise between the election of the president by a vote in Congress and the election of the president by a popular vote of qualified citizens. The Electoral College process, therefore, consists of 538 electors. A majority of 270 electoral votes is required to elect the president. Your state’s entitled allotment of electors equals the number of members in its Congressional delegation: one for each member in the House of Representatives plus two for your Senators. There is ample opportunity for the elites to try to steal the election from the people. The question becomes, what will erupt in the aftermath if they play for such high stakes?

When we look at the delegates amassed so far, Trump is well ahead, but look at Jeb Bush. He was lower than Carson. Bush was the elite choice, as he was the traditional pick based upon his last name. I have told the story before of how I used to visit people who wanted to run for president. They were told I was there to advise them on the world economy, yet I was there to also vet them and relay my opinion if they had what it took to do the job. I was asked in 1999 to fly to Texas to meet with George Bush Jr. I was told this was “different” and they admittedly told me he was “stupid.” They never used such demeaning words before. I asked why they would choose someone stupid to be president. I was told he had the “name” that would carry the day. I was then asked if I would accept the position of chief economic adviser. I laughed and said there was no possible way. They said they had to surround Bush Jr. with good people. Hence, Dick Cheney really ran everything. Bush actually disliked Cheney and came to distrust him immensely. Bush and Cheney were never quite friends and they never socialized outside of the office. In that respect, one must feel sorry for Bush. He truly got the raw end of the deal. Nevertheless, the elite saw Jeb with the name, but this time that name made a cycle inversion thanks to Cheney.

The elite actually think they can somehow rob the people of any right to vote. It is the same attitude emerging in Brussels. They think the people are too stupid to know what is best for them.

The cyber police are monitoring everything. Anyone who appears to be organizing any type of protest in Germany is visited by the police. This is the new national security and slight statements are being targeted as “troublemaker speech.” We are heading into the dark land of government suppression. Part of the U.S. First Amendment is the freedom of assembly. This civil right was recognized by the Founding Fathers because the government in those days acted in the same manner. Anyone who dared to try to organize a protest was imprisoned.

Our Fifth Amendment and the Miranda decision, which says you have a right to remain silent, is hated by police, prosecutors, right-wing judges, politicians, and pro-government citizens. That decision was based upon the history of the right not to be coerced that began with the famous trial of John Lilburne (1615-1657). Lilburne stood tall before the English court of the Star Chamber in 1637 where he objected to the king’s torture.

John Lilburne was a leader in the Leveller Movement of the 1640s and was a prolific pamphleteer who defended the religious and individual liberty of the people. He was imprisoned many times for his views and was active in the army of the New Parliament leading to the English Revolution, rising to the rank of Lieutenant-Colonel. In October 1649, he was arrested and tried for high treason for printing and circulating books and pamphlets that were critical of the government. However, he was acquitted of all charges by a jury of his peers.

History repeats because the passion of humanity never change. Those in power will fight to our death to retain that power. It is never an easy transition to restore our rights, privileges, and immunities. We face a very dark future as the elite are desperate to hold the reins of power.

Weaker than expected trade data ($32.59bn v Expected $50.15bn) from China saw equities open around 3% down, but that created the day’s low and the market steadied from that point. The Shanghai spent much of the day struggling to recover but recover it did and closed up on the day +0.1%. In Japan, consumer confidence fell to 40.1 from a previous 42.5. Stock prices hit their lows just ahead of lunch but spent the rest of the afternoon session rallying from those lows. Eventually, the Nikkei closed down 0.7% on the day with the HSI painting a similar picture.

In Europe, the poor Chinese trade data really hit basic resources together with market sentiment. With all core indices closing the day -0.8%, but having just seen a huge rally in resources, it was only to be expected we would see that sector taking the hit today. Bank of England Governor Mark Carney attempted to ease market nerves today as he attempted to outline the BOE’s position ahead of the BREXIT vote. Despite trying not to be drawn into the debate but only try to outline the measures, the market did read that the Old Lady would prefer to remain within Europe. He also stressed they would provide ample liquidity at the time of the vote when they will accept less liquid assets (something the Gilt market loved). This was a couple of dealers assumptions having listened to the broadcast.

The U.S. market opened stronger and traded off 100 points, only to recoup that mid-afternoon and then to lose it by the close. Energy has reversed a lot of its recent gains, losing 4% today, which appears to have had only an occasional reflection upon equity markets.

The Chinese data sparked a few markets into life today and one of the most reactive being the U.S. bond market. The yield on 10yr U.S. notes fell from 1.90 down to 1.82% (last seen). The belly of the curve (5s, 7s and 10s) out-performed the wings by as much as 3BPs. 2s closed 0.865% closing the 2/10 curve at 95.5BP. Over in Europe, dealers are anxiously awaiting Mario Draghi’s address on Thursday at the ECB press conference. 10yr bund closed this evening at 0.18% bring the U.S./German 10yr spread to +164BP. Italy 10yr closed 1.42% (-4BP), Greece 9.08% (-35BP), Turkey 10yr closed 10.15% (-3BP), and UK Gilts closed 1.38% (-9BP).

The people asking questions about the report should understand this is only a 42-page report with analysis only. This does not include any historical background information since we have covered that previously. This report is very timely and it comes with a video dealing with the immediate reaction rally. The price is ALL INCLUSIVE for the year. There will be a part II, which is included in the price as well as the video.

The “2016 Gold Report” is priced at $500. This includes video, part I, and part II

All reports are delivered in 3-5 business days as this is a manual process.

QUESTION:  I thank you for including in your studies even the most intricate of historical information…your work has been fascinating to watch. In regard to Earthquakes, is there any cycle in the intensity of the cyclical quakes; any mini-cycles within the overall arch of the 46 year cycles; or any increase in the intensity for quakes despite the cycles? When living in California, it is almost a requisite attribute to carry a certain indifference to earthquakes…however, I am not indifferent to what seems to be a rising intensity of earthquakes. Also such information is rather crucial to economics locally.

Thank you for your interest in educating us all, and congratulations on becoming a documentary hit in all but the US, and the subject for a Hollywood version, so that Americans might begin to think.

Best regards, SFA

ANSWER: Yes. Earthquakes are the same as market movement. They build in intensity up to the “big one” that everyone talks about almost as an urban legend. There are two major types of earthquakes. One is a rolling type which tends to be less destructive. The other is a thrust type movement, up and down, which is very destructive. There appears to be a correlation with the Drought Cycle in California where drought is followed by an intense rainy period. This seems to be a precursor to earthquakes as well.

Then there are correlations with the full moon that are attributed to gravitational pull. If the moon can cause high and low tides, obviously it can add to the equation. There are correlations regarding fracking that also tie to increased earthquake activity.

Then the United States Geological Survey (USGS) really fails to comprehend how cycles function. They do not understand intensity and multi-dimensional analysis. They have simply taken solar activity, lined it up with earthquakes, and then proclaimed there was not a 100% cause and effect. This is a serious flaw in the analysis methods conducted in all fields. It is like my favorite phrase, “Everyone who has ever eaten a carrot has died and that proves carrots are lethal.” It is a true statement but rules out all other correlations. Yet this is how analysis is conducted. They always try to find a single cause and effect. So one day eggs are bad for you, the next they are fantastic. Such studies and methods of analysis are dead wrong.

Everything exists within a multi-dimensional plane. It does not correlate to a single relationship that remains perpetually constant. A simple illustration of that is the gold/silver ratio. Nothing is ever the same perpetually. This is true in markets as it is in nature.

As with the Economic Confidence Model, there are two waves of different measurement — volatility and activity. This is how cycles function. They provide the swing between two extremes. If you only look for a simple correlation, you do not understand cycle inversions. Therefore, your attempt to correlate the sun and earthquakes might as well be trying to correlate a divorce rate based solely on mood swings. It is much more complicated and rises with economic declines.