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.

Under FATCA, it has become impossible for small business to expand internationally. FATCA punishes any foreign entity that does not report what an American is doing overseas. This single law is causing an implosion in the world economy and politicians are too stupid to figure out that they have really harmed the global economy.

The net consequence has been a massive swarm of Americans resigning their citizenship because they cannot live, or even conduct business, overseas without U.S. taxes. U.S. citizens and long-term residents now have to pay $2,350 as a fee to give up their passports or green cards. This was just $450 previously. The fees alone have now reached $12.6 million according to the latest statistics. Americans are taxed on WORLDWIDE income even if they never use any service whatsoever. So while they claim the “rich” do not pay their “fair share,” the question becomes what is a “fair share” if you are not even here? It appears the definition is government’s perspective of a “fair share” or what everyone earns irrespective of using anything.

New South Wales Treasurer Gladys Berejiklian. Photo: Daniel Munoz

Everywhere we look, governments are in deep trouble. Down under in New South Wales, Treasurer Gladys Berejiklian has put in motion a quite dramatic reduction in the size of government. She has outlined a number of government departments, agencies, state-owned corporations, boards, committees, and trusts that need to be curtailed in a new efficiency drive that could lead to public service job cuts. We should expect this to be the net outcome at the state and local levels where they do not possess the power to create money.

COMMENT: Marty, I have never seen anyone look at the PE Ratio in that manner. The research you do is amazing. Many call you the “source”. I wonder how long it will take to see others claiming this is their analysis. I give them 24 hours.

Thanks

BP

COMMENT: Dear Mr. Armstrong,

Awesome answer .. and I should have seen it from that perspective after all you have said and taught us. Old concepts die hard!
Thank you!

MB

PS.Speaking of learning new things especially about the human race: as a physician I would never have thought this baby’s reaction was possible. Truly powerful and beautiful. Hope you have time to watch; I think you will appreciate it. It’s about 2 minutes.

REPLY: I have heard many call me that. It is the product of creating a computer that monitors everything and then reveals things that no one has ever thought of. The advantage of a computer is the lack of bias and prejudice. It returns things based upon the data. Simple as that. Most cannot shed their prejudice to really explore freely.

It is really astonishing to show such emotion at such a young age. I agree. I too would never have thought that was possible. It does go to show that there is always something new to explore and learn. We never know everything. How boring life would be if that were the case. As they say, when there is nothing left to learn, it is time to die.

Part I of the “2016 Gold Report” is now available. In this report, you will find the most extensive review and explanation on the gold benchmarks with charts dating back to the 1970s, illustrating their performance and how cycle inversions unfold. In addition to this year’s report, we have provided a special video on gold and silver that covers the gold/silver ratio as well. This was filmed last week and is time sensitive.

We are targeting the reaction high and the final low. The report also goes into detail as to where the $5,000 projection comes from looking out beyond 2018.

We have tried to provide the most in-depth analysis perhaps ever undertaken so that you can understand the REAL machinations in the precious metals and not the BS, fluff, propaganda, or sales jobs created from half-backed theories and distortions of history. To invest successfully, you really have to understand what you are buying and WHY. If you buy gold for the WRONG reason, you will also never take a profit and watch it evaporate into thin air.

Click here to purchase the “2016 Gold Report”

Part I of the “2016 Gold Report” will come in the form of a downloadable PDF document along with access to a video analysis. We plan to release part II of the report later in the year. Of course, anyone who purchases the “2016 Gold Report” will receive every part of the report once it is available.

All reports are watermarked with the customer’s name for security purposes. The video will be password accessible to one individual IP address.

Asian equity markets open with lots of talk around the Chinese National Peoples Congress and the idea that GDP will now be an indicative target range (6.5 – 7%). The Shanghai opened over 1% firmer but did lose that as we headed into the afternoon session, only to recover and close up +0.85%. The PBOC fixed the Yuan at 6.5113 – slightly lower than Fridays 6.5284. The Nikkei had trouble holding onto the 17k level and eventually closing 103 points lower -0.6%. HSI had a quiet session closing little changed at -0.01%.

Although all core European Indices closed lower they all recovered quiet nicely from the days lows. All core finished the day around 0.3% lower which was in contrast to the 5% rally seen in the oil price; with Brent trading above $40 late in the US session. the depressed metals and energy commodities took the China news as extremely positive and saw Iron Ore trade almost 20% higher on the day.
There was plenty of scope for activity today but the DOW could only off-set the lesser performance of the NASDAQ. Despite the rally in metals and oil, the news of controlled growth from China and Fridays Payrolls report many dealers were expecting more from the US markets today so are slightly disappointed as they head home this evening.

The oil price rally started early today on news the OPEC country were looking to fix a high price before considering halting supply. Rumours are that the price being discussed is $50. In the past two months prices have seen a 40% bounce from their lows.

The Bond markets saw one of their quietist days in a while with US 10’s trading in a 4BP (1.88 – 1.92%) range. The 2/10 curve did flatten 1BP as 2’s closed this evening at 0.91% (closing the spread at +99BP). Over in Europe the 10yr German Bund closed 0.22% to close the US/Bund 10yr spread at +168 BP. 10yr Italy closed 1.46% (u/c), Greece 10yr 9.44% (+8BP), Turkey 10.18% (+4BP) and 10yr UK Gilt 1.48% (u/c).

US Dollar Index (DXY) closed lower this evening at 97.11 (-0.2%) as both the Euro and GBP made ground whilst the JPY lost 0.6% against it. Much headway was made in some of the commodity based currencies but their individual weightings within the basket is quite small. Both the Russian Rouble and Brazilian Real made around 0.85% gains against the USD on the back of todays commodity gains. A fine performance for the Rouble as Moody’s announced they had put Russia on watch “Negative”.

ECB on Thursday remains this week’s highlight.