Citizen of the World

“In the beginning”, Barack Obama anointed himself, “The Citizen of the World”. He traveled to Muslim and non-Muslim countries extolling his apologizes, while bowing his head in embarrassment, for Americas’ greatness and exceptionalism ,which lead to America becoming  the most powerful nation in the world.

So how’s the world doing, Barack? With your “Political Correctness Foreign Policy”, do you think you stabilized the world? Our allies no longer trust us our enemies laugh and taunt us. And now they are beginning to kill us on American soil.

Iraq was relatively quiet after the surge. Then violence, chaos, and killing erupted again, when you withdrew the remaining U.S. forces out of country, fulfilling a campaign promise. Your decision created the Islamic State (ISIS), or the (JV SQUAD), which now threatens and killing people around the world.

You remember Syria? (“Assad must go”), (“Don’t cross the Red Line”). You did not follow through with your demands, allowed thousands of Syrian people to be murdered by Assad. Millions fled and over-whelmed many countries in Europe. ISIS terrorists infiltrated the Syrian refugees, and mass murdered citizens of France, Belgium, Germany, England, Turkey, and others. In July, ‘016, you accepted 2340 refugees. At the end of September,016 , 7900 will arrive, are you going to vet 10,000 refugees for infiltrated terrorists?

In Afghanistan, the Taliban once again is on the rise because you withdrew thousands of our troops to satisfy another campaign promise. Yemen suffers a civil war fomented by Al Qaida (“in retreat”), (“on the run”).  Libya has become an ISIS terrorist staging ground after you and Hillary refused to answer the Benghazi consulates call for help. You cowardly decided to desert our people and four Americans were killed, including Ambassador Stevens who was savagely murdered.

Meanwhile, in the Iran debacle, you returned one hundred fifty billion dollars of their frozen funds and received a bunch of empty promises; and did not demand the return of our hostages. You recently returned four hundred million dollars of more frozen funds as ransom for the same hostages you did not demand their release earlier this year. These funds will continue to enhance Iran’s role as leading world terrorist country. The increase in funds will help Iran continue to develop and sell ICBM’s with nuclear weapons which would set atop the missiles.

Russia, with the assistance of Hillary Clinton, “Reset” its relationship with America. Putin felt free to annex Crimea and invade the Ukraine; then bolster his support for Iran and Syria.

China in defiance of international law builds and militarily fortifies islands in the South China Sea which located in international waters. While North Korea is building and testing long and short range missiles. Boasting that it has tested a hydrogen bomb and fired a rocket from a submarine.

Well now, Barack, do you think you stabilized the world?  The world and enemies believe we have lost our resolve to help protect the world and our home land.

As good citizens of the world we should have revoked your citizenship. As American Citizens we should have impeached you for your incompetence for putting America in harms way.

Ronald H. Teaman
1523 Brighton Way
Broadview hts. Ohio 44147

Lovely Woman Who Protested White Genocide in Video FIRED

CARRIE BOWE. FIRED FOR HER OPINION THAT WHITE GENOCIDE IS AN IMPORTANT ISSUE TO TALK ABOUT. A group of women made a video a few years ago protesting white genocide. One of them was fired on Thursda…

Source: Lovely Woman Who Protested White Genocide in Video FIRED

The Broken Chessboard: Brzezinski Gives Up on Empire

Source:, by Mike Whitney The main architect of Washington’s plan to rule the world has abandoned the scheme and called for the forging of ties with Russia and China. While Zbigniew…

Source: The Broken Chessboard: Brzezinski Gives Up on Empire

Russia Sends Surprise Message to NATO With Massive Military Exercise

We get major war’s (meaning full national mobilization) every +/- 80 years and the last one started in 1938, so do the math and see what you get.


Source: Underground Reporter, by James Holbrooks

Russian Army units in the south and west, as well as the Air Force and the Navy’s northern fleet, have been placed on high alert as part of a massive snap exercise aimed at checking the troops’ readiness, Russia’s Defense Ministry said Thursday.

At a press briefing with top military commanders, Defense Minister Sergey Shoigu stated the move came by way of“the decision of the Commander-in-Chief of the Armed Forces” — Vladimir Putin — and that “Troops in the Southern Military District, some units of the Western and Central Military Districts, as well as the Northern Fleet, the Air Force and the Airborne Troops, are to be put on full alert.”

Shoigu said the war games, which are slated to run through August 31, will allow troops to be prepared to “defend Russia’s interests amid emerging security threats,” — meaning those in…

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US Debt: Who is Really Selling & Who is Buying?


QUESTION: Marty; Since you wrote that central banks have been net sellers of US Treasuries for the first six months to support their currencies, others are jumping on board and are claiming nobody wants them so buy gold. Would you care to elaborate on this subject? It seems another desperate attempt by the hyperinflationists.

Thank you


ANSWER:The central banks, AT THE REQUEST OF THE USA, are trying to support their own currencies and engaging in the very same action as they did following the Plaza Accord in 1985. The US position is that it needs a weaker dollar to prevent a recession. This will not prevent what is coming. Furthermore, what has been taking place is the 10-year is the new 30-year. Demand for 30-year paper has collapsed because nobody knows what will happen two years out, no less 30 years. The main buyers have been pension funds in the States who are desperate for higher yields.

As far as this being the sign to buy gold or a signal that hyperinflation is around the corner — of course it is not, lol. The people who make these claims are like horses with blinders. They only see the United States and everything they talk about is only in the USA. They cannot get it through their heads that things are far worse outside the USA. Even China has sold Treasuries to support their currency. Everyone has agreed to ban together to try to prevent the dollar rally and keep the capital where it is in a desperate attempt to stimulate their economies in hopes they reverse. They will fail.

A rise in the dollar is the key to the Sovereign Debt Crisis. Now, even the Bank of International Settlements is starting to warn that there are so many loans in dollars outside of the USA, which were originally to save on interest way back when, that a rise in the value of the dollar will cause a cascade failure in sovereign debt, especially among emerging markets. There may be the skeptics out there who think we are just making a lot of noise, but those in high places pay attention to our models no matter what the critics think. A strong dollar is the lynchpin that unravels everything. This is not about gold or hyperinflation. Clearly, those people lack any comprehension of what is unfolding on a global scale.

Central bankers are trying to keep the dollar from rising. This is what has been going on. They are fighting tooth and nail against the trend, but our computer says they will lose. The ECB’s insane policy of negative rates is tearing Europe apart and we can look at the raw capital flows to see how the peripheral economies within the Eurozone are moving to hedge the failure of the euro. The European banking crisis is beyond contemplation. The main central banks are selling Treasuries while the peripherals are buying. Just open your eyes and forget the propaganda.


Capital is also moving shorter-term for the declining trend in public confidence. I attended a meeting of a very large pension fund who has followed our advice. They too SOLD TREASURIES and moved to corporate debt to get the yield. The rating agency came in and exclaimed that they were taking on more risk. They responded by saying they did their due diligence on our advice and confirmed that the top of the crop of corporate debt does not default, but governments do. The premium of corporate yields over Treasuries is declining. Our smartest clients are jumping on board. You cannot forecast the future without known the past.

Here is the breakdown of holdings per country for the past year. The actual holdings rose overall. However, note the countries who have been increasing their holdings like Poland, Spain, and Italy. Turkey has been a major seller but this is political. There are peripheral countries increasing Treasuries as a hedge against the euro. The main G5 have been net sellers in an effort to support their currencies such as China, Japan, France, Belgium, and Australia. Germany increased its holdings since it has been the target of European capital inflows. The Swiss have been buyers of Treasuries to hedge against the euro. Here is the full breakdown (Source central banks):

US Debt Holding June 2016

New SEC Money Market Rule Will Send Cash into Treasuries

Money Market


The new SEC rule on money market funds takes effect October 17, 2016. There is never a crisis that simply passes. Such events always lead to more regulation even when those creating the rules are clueless about what they are regulating. The 2007-2009 crisis did more that wipe out Lehman Brothers and Bear Stearns than anything else. The impact of the crisis led to a panic in money market funds. It was assumed that all money market funds were safe and that you would never get less than what you invested. That proved to be false in the midst of the Lehman failure.

The Reserve Primary Fund, which was the oldest US money market fund, fell during the crisis to 97 cents. You might say it was due to negative interest rates. However, it was perceived as a risk and not safety. True, the fund had some Lehman paper, but that was only a very small portion of the Reserve Fund’s assets. The collapse in confidence was the key. People feared banks and bank paper. When the market began shorting Goldman Sachs shares, its former CEO came to the rescue and banned the short selling of banks. Investors essentially stampeded out of the Reserve Fund in mass, for if Paulson was banning short selling on Goldman, then a collapse of the banking system was not so far-fetched. This triggered a run on money market funds, and when the oldest went, the contagion spread and threatened the liquidity of the entire financial system.

PE Ratio 2007-2016

Big, smart money ran to equities. Many individuals ran into gold. The PE ratio on the S&P exceeded 100; at the peak of the bubble, it only reached 50:1. Money market funds became vulnerable for they invest short-term debt securities like commercial paper. Indeed, banks and big corporations rely on those funds for liquidity to fund immediate operations. Lehman failed for it could not redeem its overnight paper it borrowed against in the overnight repo market. They had just 24 hours to pay or fail, and they did the latter. This is why the government had to step in with bailouts to make sure the whole system didn’t collapse. It was liquidity that evaporated.

The critical factor is always liquidity. Liquidity is the lifeblood of the financial system. When confidence is lost, people hoard money and do not invest or deposit in banks or money market funds. The SEC assumed that the run on money markets was simply because the Reserve Primary Fund fell below par value. They are not looking at the market as a whole.

The October SEC rule will change the valuation of money market funds by eliminating this presumption that what you put in is always there. The funds will be marked-to-market and the SEC thinks this will prevent another run during a crisis. The rule, of course, exempts funds who invest ONLY in government paper. So everything else is perceived to be “risky” so it must be marked-to-market for transparency, but if it is a pure government fund, hey, the rules do not apply.

Already, the weak minded are moving to government-only funds that will just be like the Japanese funds were who hid any losses. The accounting will assume you have lost nothing as long as it is government paper. Investors are being told already that their money market funds restricted to government paper are 100% safe and will always return their money. The floating NAV values for all other funds are risky.

Fed Excess Reserves

What is happening is very clear, almost $500 billion has moved from money market funds into government funds. Total assets in money market funds have now dropped below $1 trillion for the first time in 17 years. This is very bad for it will enhance the economic decline when banks are already not supporting the economy and hoarding cash deposited at the Fed in its Excess Reserves facility.

Despite the hoopla that sales of US Treasuries are signaling that the end is near, to the contrary, the landscape is changing already and the new rule has not yet gone into effect.

As always, you have to pick up the rug to see the real trend. Analyzing just the surface never reveals the truth. You have to pay closer attention.

Are Central Bankers Coming to a Bitter End?

Central Bank Confidence

Central bankers these days are seriously trapped. They cannot now reverse their policies for that means they have to admit that they have failed. That is far more serious than you might imagine. To even entertain backing down from negative interest rates means they have to admit that Keynesian/Marxist economics has failed and therein socialism, which is based upon the very principle that government CAN and is CAPABLE of managing the economy. This is the real question presented in the American presidential elections, yet nobody will articulate it in this manner. Hillary still preaches the same failed socialist agenda as if government can even do anything other than attack people who earn more money as did Emperor Maximinus of Rome.

Just before Paul Volcker became Federal Reserve Chairman Paul Volcker, who served (August 6, 1979 – August 11, 1987), he delivered his Rediscovery of the Business Cycle in 1978 (published on May 3, 1979). If you Google this book, you will see our site comes up first. You can find used copies around $500. Why is this book so rare? Because before Volcker became Fed Chairman, he told the truth.

“The Rediscovery of the Business Cycle – is a sign of the times. Not much more than a decade ago, in what now seems a more innocent age, the ‘New Economics’ had become orthodoxy. Its basic tenet, repeated in similar words in speech after speech, in article after article, was described by one of its leaders as ‘the conviction that business cycles were not inevitable, that government policy could and should keep the economy close to a path of steady real growth at a constant target rate of unemployment.”

This “New Economics” was all about empowering government to manipulate and control the economy. Even Larry Summers, who is the father of Negative Interest Rates, has publicly admitted that government cannot forecast economic declines. Implicitly, he too is conceding that the “New Economics” has failed and his negative interest rates is not bankrupting pensions and has underwritten government debt like never before. Summers has pushed society over the edge. The conundrum in which we now find ourselves is where global central bankers can gather at the U.S. Federal Reserve’s annual symposium in Jackson Hole, Wyoming, but all they can do is hope something happens to save them. Governments are beginning to depart from the grip of austerity forced upon Europe by Merkel which has greatly suppressed economic growth and created an economic depression exactly as what took place during the 1930s. The option of deliberately creating deflation was the policy of Germany only because they misunderstood the causes behind the German hyperinflation of the 1920s. The failure of the economy to rebound in Europe and in Japan, while the United States has been only a dead-cat-bounce, led to governments insisting politically that central banks maintain and extend their own stimulus efforts.

wizard-of-oz-BehindTheCurtainIt is clear, central bankers are in a state of panic. They are looked upon as the sole economic magician and this political shift for responsibility has overburdened then dramatically. They know all too well that serious structural reforms are now necessary. However, central bankers can’t be seen to be giving up on this Keynesian/Marxist policy Volcker called the “New Economics” and Larry Summer pushed to Negative Rates. They are now trapped, unable to reverse policy without sending a signal that they’ve have failed. The great fear is the collapse in confidence, which is on the horizon. They wake up from a nightmare in cold sweat fearing the curtain will be pulled back and the world will witness there is no wizard as in that film – the Wizard of Oz.

The central bankers tremble at market sensitivity to any change in the perception of what they are up to next. They sought this power of a demigod, and now live in fear that they might be discovered as confused and powerless. This is now all about policy makers being unable to admit complete and utter failure. This is the foundation fro