Monthly Archives: June 2017

Jun 18 2017

“Trump Under Investigation Narrative” Begins Falling Apart – ABC: No Mueller-Trump Investigation…


Re-Posted from The Conservative Tree House on June 18, 2017 by

Almost every intellectually honest political observer recognized the Washington Post report about President Trump being under investigation appeared manufactured on the thinnest of available anonymous precepts.

In the wake of the Post report, when Asst. AG Rod Rosenstein delivered an unanticipated press release stating not to trust media reports from “anonymous officials” all doubt was essentially confirmed.  There is no ‘there’ there; and President Trump was not/is not under investigation.  Just another failed media attempt by The Washington Post to undermine the administration, with a blend of partisanship designed to generate an ideological self-fulfilling prophecy.

Toward that end, and to put a final nail in that manufactured narrative coffin, ABC news correspondent Pierre Thomas  reported today that Special Counsel Robert Mueller is NOT investigating President Trump:

WASHINGTON – Special counsel Robert Mueller hasn’t decided whether to investigate President Trump as part of the Russia probe, according to a report on Sunday.

“Now, my sources are telling me he’s begun some preliminary planning,” Pierre Thomas, the ABC News senior justice correspondent, said of Mueller on ABC’s “This Week.” “Plans to talk to some people in the administration. But he’s not yet made that momentous decision to go for a full-scale investigation.” (read more)

Yes, that means the prior Washington Post report was entirely false; which makes that the eleventyth time CNN, The New York Times, or the Washington Post has run a report that was entirely false.  They know it, it’s not false by accident – it is false by design.

Just like the previous battle in the intelligence community, there is a battle between Black Hats and White Hats within the U.S. Justice Department’s (FBI and DOJ) unelected career bureaucracy; and the media is on the side of the opposition, the usurping black hat team.

If you read the Washington Post report claiming President Trump was under investigation for Obstruction of Justice by Special Counsel Robert Mueller, you will immediately note the first paragraph was framed specifically around “Anonymous Officials“. Again, tonight those same “anonymous officials” are mentioned in a Washington Post report claiming Jared Kushner is being investigated.

(Source Link)

There is a great deal of false and misleading MSM information; in addition to the layers upon layers of hand-wringing, speculation, and professional financially driven anxiety banter surrounding Special Counsel Mueller and his appointment by Rod Rosenstein.

All of the above said; and with a full appreciation for how the deep swamp creatures operate; and having watched the minutiae of how each element interacts with each additional element over multiple years; well, I just ain’t buying any of the popular talking points.

None of the chattering class punditry are taking a full accounting of the entire bigger picture within any of their arguments. In short, they’re almost all getting it wrong, because: A.) their emphasis is on the wrong syllable; and, B.) they keep positioning the media narrative as accurate in part or in total.

The media lies in multiple ways. Plausible deniability is a necessary ingredient in almost every media report. Those who operate within the DC deep state; those who scheme and benefit utilizing the manipulative outcomes of media, know exactly what to leak, when to leak, where to leak and who to leak, in order to present situations for their own interests.

Plausible Deniability. EXAMPLE (notice the shift):

Now it becomes “May”?

The DC “Black Hats” are intensely skilled in the dark art of creating self-fulfilling prophecies. Specifically because of this truism, almost all of the downstream reactions end up being pushed based on false assumptions. It is challenging to inoculate yourself from the deceptions; but it is also necessary otherwise you are susceptible to their infection.

Former FBI Director James Comey (and his entire former team) is steeped in the dark arts of self-serving deception. It is a character trait necessary for life at the top of the food chain in the deep swamp.

As such, the fully developed Comey persona is necessarily devoid of any cognitive genetic composition which would frame compassion for anything, or anyone. Comey Inc. looks out for their own best interests. FIRST. FOREMOST. and ONLY.

As we previously discussed – The risk represented by Robert Mueller is not connected to or about anything surrounding the Russian Conspiracy Narrative; the legal risk is within ‘the leaking‘ of classified intelligence information to undermine the administration, the potentially illegal ‘unmasking‘.

If we avoid all the shiny things, ignore the shell game and reset our frame of reference to the only illegal activity currently known, the leaking; the main illegal activity visible is the illegal leaking of classified intelligence information.

Despite his earnest efforts, there is clear and mounting evidence that former FBI Director James Comey was the primary source of leaked information to the media. The latest Washington Post report is yet another example. The reporter for the Post article is one of a limited number (25) people whom James Comey follows on Twitter.

The risk to Comey Inc. from his media leaking continues to explain everything James Comey Inc. has recently done, said, advanced and CONTINUES TO ADVANCE.

If the evidence of James Comey being the source of multiple FBI leaks reaches the primary artery of investigative sunlight, who inside that investigative and prosecutorial decision making process becomes the risk? Answer that question and you discover the angle Comey is playing to cut off their ability to hold him accountable.

Special Counsel Robert Mueller, Attorney General Jeff Sessions, Asst AG Rod Rosenstein et al are the people Comey Inc. need to worry about, isolate and control.

It is not coincidental that Comey Inc. are setting up the future action of these participants to be politically motivated.

James Comey’s layer of innuendo against Jeff Sessions is an obvious strategy toward that end. If Comey can frame Sessions as retaliatory against him, he would position any legal action as retaliation.

Anyone who is buying into the story of James Comey leaking the memos to his friend, Daniel Richman, to get a special prosecutor appointed is falling for the shell game constructed entirely by James Comey. More than likely this is the explanation he has already given to Robert Mueller, hence his motive to state within his testimony.

It is important to remember that James Comey told congress he previously met with Robert Mueller to discuss his testimony prior to appearing before congress.

James Comey admitted to this specific “leaking”, because the justification to ‘get a special counsel appointed‘ is the explanatory storyline James Comey wants to present in public.

The alternate reason for leaking, the political motives, are much more damaging to him.

James Comey benefits two ways from his explanation. First, he justifies terrible behavior through a prism of his honor could find no other way (his status remains). Secondly, he sets up special counsel Mueller as fruit of a poisoned tree leading to voices calling for Mueller’s removal. Win/Win.

Comey Inc. also benefits from calls by Comey’s political opposition to eliminate Robert Mueller who is investigating the leaking.

Don’t fall for it.

James Comey is no longer in control of the investigative inputs or investigative outcomes.

Those whom Comey has injured, namely Attorney General Jeff Sessions and President Trump, are in positions where they can honestly and openly monitor the larger investigative inputs and follow the outcomes; they can also monitor the ongoing activity of Comey himself.

When someone of Comey’s inherent disposition is in a place like this, they initially seek to influence through direct contact (Comey talks to Mueller before testimony). However, when a professional distance is asserted, absent of an ability to engage in direct contact, the fall-back position for the manipulator is to influence the surrounding landscape (media an public opinion).

Never, ever, underestimate the severity or skill of a professional liar.

Never take anything Comey Inc. say at face value the way you would a disconnected observer. Liars lie, it’s what they do. Professional liars lie well, it’s what they’ve trained themselves to do.

If you accept the full hindsight of now identified FBI leaking, the greater likelihood is that Comey didn’t leak the memo to get Mueller appointed, he leaked the memo (May 16th) as an afterthought to cover for the leak mentioned by President Trump (May 12th), of a private conversation, that appeared in the New York Times on May 11th.

Remember, James Comey’s counter-intelligence investigation could have asked for a special counsel at any time. Asst. AG and Interim AG Sally Yates was part of that investigative leadership team. If Comey wanted a special counsel, Comey could have asked DOJ to appoint a special counsel any time he wanted.

He didn’t.

Comey didn’t request appointment of a special counsel because the special counsel would only prove there’s nothing there. However, fast forward to now and the real investigative risk is in being “a leaker”.

How quickly everyone forgets those admitted conversations by James Comey friend at Lawfare blog Benjamin Wittes:

“I did not know this particular fact, but it doesn’t surprise me at all. The principal source for the rest of this story is, well, me—specifically a long interview I gave to reporter Michael Schmidt on Friday about my conversations with FBI Director James Comey over the last few months, and particularly about one such conversation that took place on March 27 over lunch in Comey’s FBI office.” (link)

Benjamin Wittes admits that FBI Director James Comey specifically discussed with him the overall content of private communications with President Trump.

When you take the Wittes outline in conjuction with Comey’s admitted leaks to his other friend Daniel Richman, Comey is transparently in a position of being fingered as the source of multiple media leaks to NYT reporter Michael Schmidt.

That is the current risk for James Comey. The discovery that Comey was the leaker is the risk now represented by Robert Mueller and is inherent in Comey’s need to control the framework of his leaking activity.

James Comey was part of the political apparatus that constructed the “muh, vast Russian conspiracy” narrative and carefully nurtured it for over 8 months – even keeping congress in the dark on the entire matter. From James Comey perspective, the problem, the illegality, is now the leaking – NOT the original issue of the Russian election hacking narrative.

Remember, it was in FEBRUARY when the FBI (McCabe) went to President Trump’s Chief of Staff privately and told Reince Priebus there was no truth to media reports, based on FBI leaks, of FBI evidence showing Trump campaign officials involved with Russian officials regarding the 2016 election. It was all a complete nothingburger.

Details – On February 15th while discussing another issue FBI Assistant Director Andrew McCabe asked Reince for 5 minutes alone after the meeting. At the one-on-one meeting McCabe told Priebus the New York Times Russia and Trump campaign story was a “bunch of BS”.

Priebus asked McCabe if McCabe would be able to say that publicly and get the media off his back about a ridiculously false narrative. Asst. Director McCabe said he would check with his boss, FBI Director James Comey. Later, McCabe called back and said he couldn’t issue a statement about it.

reince-preibus-mccabe

Reince Priebus was simply asking for the FBI to give truthful information about the false reports to the public. The White House was asking Comey to deliver transparency.

Quote from the FBI to Priebus: “We’d love to help, but we can’t get into the position of making statements on every story”…

In hindsight, from current appearances, those February leaks (mentioned above) that drove the New York Times February report were actually leaks coming from James Comey.

Stop and think about it. McCabe was telling chief-of-staff Reince Priebus not to worry about a NYT report based on leaks coming (first, second or third-hand) from James Comey himself. Priebus asks McCabe for help, James Comey then tells McCabe the FBI cannot publicly refute the story which is based on Comey’s leaking.

If everyone associated with this line of inquiry can stop themselves from following the shell game constructed by Comey, and avoid the distractions he is laying down (Lynch), they’ll eventually find a way to point this out.

Jun 18 2017

Thank You God, For Men. Real Men.


Re-Posted from The Conservative Tree House on June 18, 2017 by

The_Creation_of_Adam26 God said, ‘Let us make man in our own image, in the likeness of ourselves, and let them be masters of the fish of the sea, the birds of heaven, the cattle, all the wild animals and all the creatures that creep along the ground.’

27 God created man in the image of himself, in the image of God he created him, male and female he created them.

I had an experience this weekend that made me think about men, about masculinity. It seems manhood is under attack these days from many directions. Indeed, in my opinion, a part of what so offends so many people about President Trump, especially Hillary supporters, is his unapologetic masculinity. He is a man who knows his power and embraces it.

That being said (and I can’t believe I put it in here, knowing where it could lead) please don’t make this another political free for all. My point here is broader.

To all you guys out there, tough guys, whether you express that inner strength clad in a business suit or well worn jeans and work boots, please accept the appreciation and approval of those of us who celebrate who and what you are, and what you do. Every day in ways large and small, you go out and just get the job done. You don’t ask for approval, thanks, or cheers because it just wouldn’t occur to you, and you are too busy getting things done to stop for recognition. 

Lots of feminists have a problem with men. I believe they throw around terms like patriarchy,  which they probably never looked up in their Funk and Wagnalls. Some humans with an X chromosome, and a few without one, appear to be threatened by the reality of masculinity.

Get a grip chicks, if you are really okay with who and what you are, men are not a threat, but a gift, not competition, but complementary. If your “feminine power” must be derived from the destruction of the epic event of God’s creation, you are pathetic already and men have nothing to do with that failure, you own it.

I’m not even going to waste breathe here encouraging men to not allow women to define their masculinity. He who does that is already beyond my poor advice.

Men. All ages, sizes, colors, and other assorted variations. You were different from the moment of conception, and thank God for that. As a child you were faster, stronger, dirtier, and louder. You were often fearless while I stood beside you weighing the odds and assessing the situation. You climbed the tree while I looked for the ladder. You snuck out with the family car while I was cajoling dad for the keys.

In my day, back in the Dark Ages, as we grew into teens and young men and women, you actually appreciated my femininity and rewarded me with attention and admiration. Many of you were kind enough to open doors for me, walk alongside the curb beside me, and lift heavy objects before I tried to. You paid the bill for our dates, and if you ever wanted another one, you walked me to the door.

Because God is good, and loving, and gives us abundant graces and good things, in the early days of my womanhood, I fell in love with this wondrous creature God made from dust and clay. That right there ought to be a hint to us, man from dirt, earthy, strong, fundamental. But, I digress.

I married a man. A for real not apologizing for it man. He has muscles and strength and brawn and intelligence and toughness, a toughness that nothing in this world has ever even come close to breaking. Not even a little crack. Not once in all our years (41 Monday) has he ever even paused in the face of terrible trials and hardships. Now, I know him. I know that he isn’t a robot and he isn’t superman. Sure he’s had doubts, fears, and moments of desperation.

He never once, not one time, not ever considered giving in to them. On his shoulders landed the burdens that would have crushed me and our family without him. God alone knows the weight he bore. His faith was apparent and he led our family to church, led us in faith and worship. The kind that isn’t really so much talked about as lived.

So today, as we honor fathers, I just wanted to throw out a little appreciation for men. I pray that as the world turns and we learn from our mistakes, someday it is popular and honored for men to be men again. Soldiers, sailors, welders, business men, teachers, pipefitters, salesmen, truck drivers, nurses, doctors, lawyers, preachers, rabbis, priests. Fathers, husbands, sons.

Thank you God for making men. Thank you for making them in your image. If you, Father, are the model from which my husband was formed, I sure am going to be so happy to meet you. Thank you, for all the wonderful men you gifted us with, especially your Son.

Jun 18 2017

Happy Father’s Day


Re-Posted from The Conservative Tree House on June 18, 2017 by

 

Fatherhood is the job that pays the least in monetary terms and the most in benefit to the world, along with motherhood. When a man chooses to become a father, biologically or with his heart, he makes a commitment that is lifelong and its impact is to be felt longer than his own life, into the future of his children, grandchildren, and yes, even great grandchildren.

Through his steadfast presence, his wisdom (most of it on the job, but maybe lots of it gained from his own father), his protection, his teaching, his prayers, sacrifice, love, discipline, encouragement and pride he tempers and builds the character and lives of his children.

Today, in gratitude and love, we pause to thank God for His precious gift of fathers, modeled in His own image. For all of you, we give thanks, we pray, we love you. And please, keep up the good work dads, in your job that has no off days, but great benefits.

Jun 18 2017

Horrific Update: Missing USS Fitzgerald Sailors Located – Drowned in Berthing Quarters Below Decks…


Re-Posted from The Conservative Tree House on June 18, 2017 by

Initial photographic appearances showed the port-side bow anchor of the ACX Crystal impaled a portion of the USS Fitzgerald near starboard side amidship below her bridge. Later reporting confirmed the Fitzgerald was ruptured above and below the waterline by the much larger cargo vessel.  Seven sailors were missing.

The latest update from the 7th Fleet is terrible.  Several bodies, perhaps all, of the missing sailors have been located in their berthing quarters.

U.S. 7th Fleet, YOKOSUKA, Japan – A number of Sailors that were missing from the collision between USS Fitzgerald (DDG 62) and a merchant ship have been found.

As search and rescue crews gained access to the spaces that were damaged during the collision this morning, the missing Sailors were located in the flooded berthing compartments.

They are currently being transferred to Naval Hospital Yokosuka where they will be identified. The families are being notified and being provided the support they need during this difficult time. The names of the Sailors will be released after all notifications are made. (link)

(Previously) […]  Footage and images from the Japanese TV network NHK showed heavy damage to the mid-right side (starboard) of the USS Fitzgerald and less severe damage to the left side (port) of ACX Crystal. The Crystal is 29,060 tons (w/out cargo) and is 222.6 meters (730 feet) long.

The land-based equivalent of a freight train (Crystal) hitting a school bus (Fitzgerald). By all rough photographic appearances the port-side bow anchor of the Crystal impaled a portion of the Fitzgerald near starboard side amid-ship just below her bridge.

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Jun 18 2017

Grenfell Tower Fires Exposes Government Corruption


Armstrong Economics Blog/Corruption

Re-Posted Jun 18, 2017 by Martin Armstrong

At least 58 people are feared to have died in the fire that engulfed Grenfell Tower this past week. Prime Minister Theresa May admitted that the government response was appalling. There is mounting anger growing that many are saying that people were told to stay in their apartments and died as a result. They are also exposing the fact that there were no sprinklers to combat the fire. On top of that, many see this as a plot to get them out of a rich neighborhood.

The building is a government property managed by Kensington and Chelsea Tenant Management Organisation (KCTMO) which was formed in 1996. KCTMO manages 9,459 properties for the council, according to its business plan, and is the largest tenant management organisation in England. It was refurbished last year but no sprinkler system was installed. The issue here is similar to the World Trade Center crisis. In both cases, we are looking at government owned properties. If such properties were privately owned, the management would be thrown in prison. Because we are looking at government ownership, no such outcome is likely. Government can avoid building codes to save money that no private construction company could possible get away with.

The people are turning this into a rich v poor issue rather than looking a bit deeper.

This is another example of just how corrupt government has become.

 

Jun 18 2017

Grenfell Protests – May Must Go


Armstrong Economics Blog/BRITAIN

Re-Posted Jun 18, 2017 by Martin Armstrong

 

The protests are rising and Theresa May failed to go talk to the people right away while Jeremy Corbyn was there on TV crying with the people. He had proposed refurbishing the government housing and sprinklers should be installed last year and it was knocked down. People are blaming austerity. They are demanding an inquest, not a public inquiry. People feel that a public inquiry behind closed doors will hide the truth once again.

The Fate of Britain

We just released our report on in Britain. The markets were showing a very bearish outlook ahead and this was strange if not irreconcilable with the bullish view of BREXIT. We put it all together and warned that the Conservatives may end up being replaced by Labour and we can see Britain turn very hard left toward Marxism. This is a very important report for it goes into the pound on the cross rates with the dollar, euro, Swiss and the yen. In addition, we covered the Long Gilts and the share market. The timing seems incredible given the events following the release of this report.

Tony Blair was a socialist and took Labour to the center right. He achieved concessions from unions no Conservative could have ever accomplished. But Corbyn wants a maximum wage and intends to take Labour back to the 1970s and its extreme Marxist positions. Installing a maximum wage to prevent high paying jobs seems insane. It’s all about punishing accomplishment rather than raising the living standard. The definition of the “rich” will drop from £145,000 to £80,000 and raising the corporation tax from 19% to 26%. He wants 50% tax on anyone who earns more than £123,000. Inheritance taxes will be lowered from £850,000 tax free to £425,000 and anything above that will be 40%. This will wipe out small businesses preventing them from continuing and that applies to farmers as well. Raising taxes to this magnitude will surely lead to the migration of top-end positions out of London.

Jun 17 2017

ICE Director Thomas Homan Brings Atomic Sledgehammer of Truth…


Re-Posted from The Conservative Tree House on June 16, 2017 by

President Donald Trump’s immigration enforcer doubled down Friday on recent comments that undocumented immigrants “should be afraid” under the Trump administration.

Immigration and Customs Enforcement Acting Director Thomas Homan said in an interview today that he has “zero regrets” about his remarks before Congress this week, expanding on them. “It needed to be said,” Homan told CNN on the sidelines of a Central American prosperity and security conference.

“And by me saying you should be worried, you should be afraid — if you lie on your taxes, you’ve got to be worried, ‘Is the IRS going to audit me?’ … When you speed down the highway, you’ve got to worry, ‘Am I going to get a speeding ticket?’ You worry. It’s natural human behavior.”

Ice Director Thomas Homan defended the arrest of student on the day of his prom. Director Homan told Congresswoman Nita Lowey that “if you’re violating the law, you should be uncomfortable. He should be looking over his shoulder if he’s in this country in violation of law and ordered removed. He should be worried that he’s going to be arrested.”

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Jun 17 2017

Collision At Sea – U.S.S. Fitzgerald Collides With Cargo Container Ship ACX Crystal Off Coast of Japan…


Re-Posted from The Conservative Tree House on June 16, 2017 by

This is really odd in the extreme. Multiple human-factors, and technological safeguards, would need to fail simultaneously -on both vessels- in order for this catastrophic impact to have happened at sea.

Seven U.S. Navy crew members are missing and one injured after a U.S. Navy destroyer Fitzgerald collided at approximately 2:00am (local) Saturday morning with the merchant vessel ACX Crystal (Philippine Registry) off the coast of Japan.  All nautical vessels have been requested to respond for maritime search and recovery efforts.

Footage and images from the Japanese TV network NHK showed heavy damage to the mid-right side (starboard) of the USS Fitzgerald and less severe damage to the left side (port) of ACX Crystal. The Crystal is 29,060 tons (w/out cargo) and is 222.6 meters (730 feet) long.

The land-based equivalent of a freight train (Crystal) hitting a school bus (Fitzgerald). By all rough photographic appearances the port-side bow anchor of the Crystal impaled a portion of the Fitzgerald near starboard side amid-ship just below her bridge. Anyone on the deck of the Fitzgerald would have been thrown from her almost immediately.

There are multiple injuries aboard the Fitzgerald. The U.S. 7th Fleet said the number of injuries is still being determined.

The Japan Coast Guard said it received an emergency call from a Philippine-registered container ship ACX Crystal around 2:20 a.m. (1720 GMT Friday) that it had collided with the USS Fitzgerald southwest of Yokusuka, Japan.

Coast guard official Takeshi Aikawa said seven crew members are unaccounted for, and one had a head injury. Further details of his or her condition were not known.  Relatives of crew members were awaiting news of their loved ones.

“Of course we’re nervous and scared and just praying,” Rita Schrimsher said by telephone from Athens, Alabama.

Her grandson Jackson Schrimsher is a 23-year-old sailor aboard the USS Fitzgerald. She said she last communicated with him via Facebook messenger on Wednesday.

The Navy’s 7th Fleet said the ship experienced flooding in some areas and is heading back to Yokosuka. The fleet said the Fitzgerald has limited propulsion, and the ship suffered damage on the starboard side below the water line.

Aikawa said the US ship is partially flooded because of damage. So far no damage or injuries have been reported on the container ship, he said. NHK reported that the merchant ship had scratches on the left side of its bow.

The Philippine ship is 29,060 tons and is 222.6 meters (730 feet) long, the coast guard said.

The Navy said that the collision occurred 56 nautical miles southwest of Yokosuka, a city south of Tokyo that is home to the U.S. Navy’s 7th Fleet. A U.S. defense official said there is flooding in three compartments of the Fitzgerald.

The Fitzgerald is forward deployed to Yokosuka as part of the USS Ronald Reagan Strike Group. It took part in training near the Korean Peninsula last month involving ships from both the Reagan and USS Carl Vinson strike groups and the Japan Maritime Self-Defense Force.

The fleet said the USS Dewey, medical assistance and two Navy tugs were being dispatched as quickly as possible and that Naval aircraft were being readied to help. The Japan Coast Guard dispatched five patrol ships and an aircraft carrying medics to the site for search and rescue operations.

 

Jun 17 2017

Amazon Purchases Whole Foods For $13.7 Billion (Cash)…


Re-Posted from The Conservative Tree House on June 17, 2017 by

The business world is buzzing over Amazon’s $13.7 billion purchase of Whole Foods. CTH has received requests for opinion. Amazon stockholders may not like the perspective.

(Via CNN Money) The online retail giant announced Friday that is buying organic grocery chain Whole Foods (WFM) for $13.7 billion in cash. The deal values Whole Foods at $42 a share, 27% higher than where the stock was trading Thursday.

Amazon (AMZN, Tech30) said Whole Foods stores will continue operating under that name as a separate unit of the company. Whole Foods CEO John Mackey will stay on to lead Whole Foods, which will keep its headquarters in Austin, Texas. (link)

Here’s my review. Firstly, Whole Foods was available for purchase because Whole Foods business model was limited; and like the progressively minded organization they are – they allowed their Birkenstocks to travel beyond their limits, which always leads to failure.

In the PC corporate world ‘pending failures’ are called “challenges“, or “opportunities” if you don’t want to get kicked out of the boardroom.

Whole Foods is a high-priced (nicknamed “Whole Paycheck” for a reason) grocery outfit specifically because they were/are generally a niche market operation.

The cost of organic products, in combination with their fundamental flaw (Achilles heel) that economies of scale (warehouse and distribution) are a prerequisite within the low margin industry for cost savings, kept their prices high.

As a regional business, inside specific markets with specific access to locally sourced product, Whole Foods would be ok.  It’s their core operations and reason for their initial success.

However, attempt to expand that operational model nationally (which they did), and you enter a dynamic of trying to sell products in markets that don’t appreciate or value the Vichy experience of dropping $300 for two Eco-friendly canvas bags of fruits, vegetables and oddly pronounced olive oils.

High prices are necessarily part of the Whole Foods overall business model. Expand operations beyond niche markets that can afford such prices and, well, failure (ie. their Birkenstocks traveled to far).  That position is exactly where they were.

♦ Enter Jeff Bezos, Amazon and a distribution network with a high-minded belief their distribution can/will enhance the logistic and efficiency challenges encumbering Whole Foods future success.

No doubt Bezo’s gender neutral Latte bean counters found some like-minded suave millennials, complete with man-buns and algae cakes, to deliver a fabulous Apple-powered presentation therein.  Business graveyards are filled with such enamored and well-meaning carcases.

Whole Foods operates approximately 460 stores.  [How many of them actually turn a profit, and hold up the loss leader footprint, is unknown.] Amazon reportedly paid $13.7 billion (yes that’s billion with a “B”) for the footprint.  Or approximately $29.8 million per retail unit.

$29.8 million per store is approximately $10 million more (per unit) than anyone with a modicum of practical common sense would normally pay.  Then again, Amazon is cash heavy, so what’s a few billion amid like-minded latte power-point-pals; and Mackay’s crew of fellow travelers know how to burn cash better than most.  (See Hillary Clinton’s 2016 boondoggle expenditure for reference.)

However, in Bezo’s world, amid the giddy financial generation, money seems to grow on trust-fund trees.  The bottom line of actual profit is transparently non-existent in this $13.7 billion expenditure.  Even with a modicum of success, it would take a generation of successful operations for all 460 units to pay back such an over inflated purchase price.  So, obviously this is not a decision based on bottom line profit generation for the parent company Amazon.

That brings us to the next set of points which lean more remarkably toward failure.

Technology, and more specifically technological mobility, is now creating individual efficiencies in consumer personalization to exceed any investment value that a retailer would necessarily place in infrastructure.

Does that sound like corporate gobbledyspeak?  Good, it was supposed to.

Plain english version – People are assuming Amazon will be looking to generate shop-at-home (direct delivery) value via a synergy of Whole Foods grocery operations and Amazon’s exhaustive distribution network.   [All of the highfaluting Brioni suit and disposable tailored white shirt crews are espousing that opinion.]  Amazon is anticipated to be able to deliver groceries through this acquisition.

In order for that to be a possible future outcome, layers of cost efficiency would need to be the driver of Whole Foods boardroom discussion very soon. Very unlikely.  Apparently unbeknownst to the algae-cake community, the overall industry, as a direct result of the technological mobility of the consumer, is now less invested in such an approach.

Why?

Simple.  Technology is also creating efficiency for consumerism.  It is entirely possible to go on-line for your grocery purchase, submit your grocery list to your local market, and then utilize Über transport as the pick-up and delivery method.  Über and Lyft won’t be just for taxi service anymore…. watch/wait for it.

The all encompassing process of ‘field-to-fork’ within the food industry is poised to break down into various competing sub-sets and sub business units, external to the food retailer.  Again, efficiency of scale and specialization is essentially the driver (no pun intended).

On the upside of angled considerations for Amazon, they are also looking into entry in the retail store market, and with that in mind actual foot traffic is a prime factor.  No industry drives a higher measure of consistent foot traffic than your local supermarket.  So there can be a reasonable expectation that Amazon stores will have some connective tissue to the locale of Whole Foods. [Somewhat guessing here]

However, in the direct-to-home market for grocery operations, specifically because of the aforementioned mobile distribution specialization, the synergy of Whole Foods and Amazon shouldn’t be predicated on a belief such a new market will necessarily emerge.

Yes, the upper-east side, and those of similar refinement, may welcome Amazon delivery of Whole Foods products.  But that doesn’t change the issues of regional limits for such consumer evaluations.  The baseline Achilles heel of Whole Foods still exists, albeit with a possible delivery service.

Tear it all apart and Amazon just paid about $30 million per store for a business enterprise worth about 30% less than that.  There is no reasonable way, from a profit perspective, for Amazon to ever recapture such an expenditure.  Then again, as stated, it doesn’t look like profit is their motive.

That said, as history customarily shows, sooner or later the value of a common stock will not support the best intentions of well worn Birkenstocks.

Jun 17 2017

French Parliament Elections Tomorrow June 18th


Armsrong Economics Blog/France

Re-Posted Jun 17, 2017 by Martin Armstrong

Macron was hoping to have a super majority that his new party would sweep the election to give him ultimate power. However, the latest poll taken by BFMTV showed a stunning 61% of French voters did not want the 39-year-old’s party to take the National Assembly. The majority of French voters have said they will vote against Macron’s party to prevent a “crushing” majority in parliament. Most have responded that they would vote for a rival party in the second round in a bid to “rectify” the the decision.

It is looking more and more that the vote for Macron was not in support of him handing sovereignty to Brussels. The election point overlooked by everyone is the fact that Le Pen beat ALL mainstream parties. There is no mandate for the surrender of rights in France to a new Federalized Europe. The election is this Sunday, June 18th. We will see the results soon.