British Pound – How High is High?


QUESTION: In your year-end report, you said the resistance in the pound for 2018 was at the 14500-14600 level throughout 2018. We stopped at the mid 14300 level. Is this it?

ANSWER: In 2016, the British pound elected the Yearly Bearish Reversal at 14000. It is normal to retest that level since we closed 2016 at 12321 well below the Reversal. Therefore, the 1% rule applied and we should retest that Reversal before following through. That is what 2018 is all about. The next big turning point for the pound against the greenback will come in 2019. However, the next major crisis point will be 2021.

As for right now, we have a Directional Change next week. Therefore, failing to exceed this week’s high next week means we can retest support into the week of February 5th. Thereafter the week of 19th will come into play and volatility will rise for the end of February. The major technical resistance is in the 15000 zone. Only a closing above the 16700 area would reverse the long-term trend.

Mnuchen Calls for Weaker Dollar


QUESTION: Mr. Armstrong; You have repeatedly said that the USA was a lower dollar while Europe thinks a strong currency is better. You said the dollar would decline first into 2018. That seems to be spot on. After Treasury Secretary Steven Mnuchin statement that a weaker dollar is best for USA, the dollar sold off. Why is there is a huge difference between the USA and Europe with respect to currency values?

HD

ANSWER: First of all, you can bet that Mnuchin had a little help from his friend in NYC who piled on short positions before his speech. The USA had also wrongly believed that a strong currency meant a strong economy. During the Great Depression, Roosevelt’s Brains Trust were all against devaluing the dollar. Why? It is the bondholders. A devaluation of a currency means that you pay back with cheaper dollars.

Europe, on the other hand, went through two World Wars. Their currencies went to zero. Politicians used the value of the currency and proof they did a good job and should be reelected. No American politician could run and claim that the dollar is up against Mexico, Europe, and Japan so vote for them.

I became probably the largest FOREX adviser in the world because I was an American. When I was going to open up offices in Europe, I went to lunch with one of the heads of a major Swiss bank and ran a few names by him like European advisers etc. He asked me to name one European analyst. I was embarrassed for I could not back in 1985. He said there were none. Because currencies were used by politicians, it was unpatriotic to forecast any European currency would decline. He told me that was why everyone was using our firm – “You don’t care if the dollar goes up or down!”

This is nothing new. The 1985 Plaza Accord was all about a coordinated effort to force the dollar down. That was the entire reason for forming G5 back then – now G7/G20. The New York Times wrote: “Since 1985, the damage that accompanied the unfettered dollar has slowly started to be repaired. The Administration gambled that a big drop in the dollar, by making American goods cheaper and imports more expensive, would quickly translate into a large pickup in exports and a falloff in imports.”

Then the dollar fell like a stone and the G5 came out with the Louvre Accord and tried to stop the dollar decline. The markets did not comply.

The decline in the dollar was so significant that it then set in motion massive selling of US assets. The Japanese sold off debt and asset holding in dollars and took the money home, which then created the Japanese Bubble in 1989.

When Robert Rubin started the same nonsense trying to talk the dollar down again for trade, I wrote to him warning that he would create another crash.

Tim Geithner replied saying they would never do that.

Trump is playing the same card. He wants a lower dollar to boost exports and create jobs. Yes, the dollar was scheduled to decline into 2018. However, only a dollar rally will create the massive collapse in the world monetary system. Make no mistake about this, they are not in charge. The dollar kept collapsing after the Louvre Accord. The dollar had peaked and was starting the decline before the Plaza Accord was announced.

Central Banks and Governments may try to manipulate the currencies, but they too will be embarrassed. The words of Herbert Hoover should be read at every board meeting at the start of every Central Bank.

President Trump Has Dinner With European Business Leaders Attending World Economic Forum…


Earlier today President Trump had dinner with European business leaders attending the World Economic Forum in Davos, Switzerland. Attendees included:

U.S. Team – President Donald J. Trump, Secretary of State Rex Tillerson, Department of Homeland Security Secretary Kirstjen Nielson, National Security Advisor H.R. McMaster, Director of the National Economic Council Gary Cohn.

European Delegation: Kasper Rorsted, Adidas (Apparel) Germany; Joe Kaeser, Siemens AG (Tech) Germany; Heinrich Hiesinger, Thyssenkrupp AG (Industrials) Germany; Eldar Saetre, Statoil ASA (Energy) Norway; Mark Schneider, Nestle SA (Food and Beverage) Switzerland; Vas Narasimhan, Novartis AG (Pharmaceutical) Switzerland; Mark Tucker, HSBC (Financial Services) UK; Patrick Pouyanne, Total SA (Energy) France; Carols Brito, Anheuser-Busch InBev NV (Food and Beverage) Netherlands; Rajeev Suri, Nokia Corporation (Technology) Finland; Punit Renjen, Deloitte (Consulting) UK; Martian Lundstedt, AB Volvo (Auto) Sweden; Werner Baumann, Bayer AG (Pharmaceutical) Germany; Bill McDermott, SAP SE (Technology) Germany; Ulrich Spiesshofer, ABB Ltd (Manufacturing) Switzerland.

Chairman Chuck Grassley Releases New Batch of FBI Text Messages and Questions FBI Director Chris Wray


Senator Chuck Grassley, Chairman of Senate Judiciary Committee, releases a new batch of text messages between FBI Agent Peter Strzok and DOJ/FBI Attorney Lisa Page (full pdf).

In the text exchange Peter Strzok is ‘INBOX’ and Lisa Page is ‘OUTBOX’

https://www.scribd.com/embeds/370009743/content?start_page=1&view_mode=&access_key=key-iNJAqLswhZHrfFuNQfXk

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Additionally, Chuck Grassley sends a letter to FBI Director Christopher Wray (full pdf) with questions about the substance surrounding the Text Messages.

https://www.scribd.com/embeds/370009680/content?start_page=1&view_mode=&access_key=key-ATGhBTuHjbPvhlu2GbHW

IG Michael Horowitz Informs Grassley, Goodlatte and Nunes of FBI Text Recovery…


Always remember the batting order: Intelligence Committee Chairman Devin Nunes was first up; closely coordinating with Senate Judiciary Chairman Chuck Grassley (2nd up); closely coordinating with House Judiciary Chairman Bob Goodlatte (3rd up); all of them coordinating with the DOJ Office of Inspector General Michael Horowitz (clean up).  This is a long developed plan.

In order to carry out the entire reform operation, communication is made through public letters. Sunlight is part of the strategy.  Questioning each other publicly and answering each other publicly is part of the strategy… the media is not used to this. Deception needs whispers. Deception doesn’t like transparency.

IG Michael Horowitz shares his responsive letter to Grassley, Nunes and Goodlatte (pdf link here).  Pay attention to Page#1 second paragraph, and the last paragraph on page two:

(pdf link)

Beginning Page #1, Paragraph #2: Inspector General Michael Horowitz is openly responding to Senator Grassley, saying the FBI told his office the exact same thing about losing the Strzok and Page text messages.

However, in paragraph #3 Horowitz states as a result of the congressional action; and as a result of Attorney General Jeff Sessions responsive engagement therein; his office received the pressure (help) it needed to get DOJ/FBI forensic tools activated to find the texts.

Reminder:

(LINK to Back Story)

This is exactly why the White Hats (Nunes, Grassley, Goodlatte and Horowitz) are communicating publicly.  They are using public pressure, ie. outrage therein, upon the DOJ and FBI to force compliance.

The White Hat team are telling us, the public, what is going on.  We are responding to what is going on.  Our response to the sunlight is causing changes in behavior. That internal (amid themselves) and external (with public) communication collaboration is needed because the entities within the DOJ and FBI are working against investigative interests.

Those who have participated with the historic corruption within the DOJ and FBI are trying to stop oversight from exposing their activity.  The oversight is smartly using public sunlight to expose the road-blocks; this approach puts the internal corruption team on their heels.

It is critical to understand how this intensely modern-era communication plan is using social media (and new-media leverage), to working around the traditional U.S. media who align with the Black Hats in the DOJ and FBI.

We noted this strategy early in December.  I’m repeating it here for added emphasis:

The text messages between FBI Agent Peter Strozk and his mistress, FBI lawyer Lisa Page, were originally released to Fox News and CBS. SEE HERE and SEE HERE.

The messages reflect a strong bias against President Trump. However, the bigger story is not the anti-Trump bias within the text communication, the BIGGER story is why the Department of Justice, Office of Inspector General (OIG), began even looking at Agent Peter Strozk’s communication in the first place.

Remember, the original mandate by the Inspector General’s office was initiated to review and discover any politicization of the FBI and/or DOJ officials.

After news broke of Strzok’s removal from investigative duty within the FBI counterintelligence unit, what the OIG responding statement said was for 11 months the Dept of Justice OIG office has been investigating the politicization within the DOJ and FBI and deciding if the actions, or lack of action, was driven by the political ideology of the participants therein:

 

(pdf Link)

In essence the IG began looking for any investigative issues that might show how political bias might have resulted in manipulated or changed investigative outcomes. Potentially those outlined issues are brutally unethical, and most likely unlawful. Emphasis:

“The January 2017 statement issued by the Department of Justice Office of the Inspector General (OIG) announcing its review of allegations regarding various actions of the Department of Justice and the Federal Bureau of Investigation in advance of the 2016 election stated that the OIG review would, among other things, consider whether certain underlying investigative decisions were based on improper considerations and that we also would include issues that might arise during the course of the review.

The OIG has been reviewing allegations involving communications between certain individuals, and will report its findings regarding those allegations promptly upon completion of the review of them.”

It was within this IG investigation that SOMETHING pointed the investigative agents in the direction of FBI Agent Peter Strzok. What that something was and is remained an unknown variable in early December as the stories first broke. The outcome of the subsequent OIG inquiry led to Agent Strzok being removed mid-summer from Special Counsel Robert Mueller’s team.

There was some precipitating event that led the IG to investigate the communication of FBI Agent Strzok. That precipitating event or behavior is where the real story lies, and not in the downstream collection –and current release– of biased text messages between Strzok and his mistress FBI Attorney Lisa Page who worked for Deputy FBI Director Andrew McCabe.

Against the backdrop of current activity, and knowing there is a newly established special joint task force within the DOJ and FBI to identify leaks, we can reasonably speculate Agent Strzok was caught while the IG was investigating politicization, and the DOJ/FBI leak task force was hunting intelligence “leakers“.

As Judicial Committee Representative Jim Jordan rightly outlined, Agent Strzok would not likely be removed because he had biased text messages with his mistress. So long as that bias did not interfere with his work duty, there is no inherent issue.  Strzok was not in a position of supervision over Lisa Page so they could encounter like rabbits to their black-hats desire if their relationship was known by FBI leaders.  [Though there could be a blackmail angle specifically due to the counterintelligence nature of Strzok’s job.]

If FBI Agent Strzok was a “leaker” to the media, or worse, well, that becomes an entirely different kettle-o-fish. It appears from the text messages both Strzok and Page were leaking to The Washington Post and Politico. Getting caught as a leaker is likely the original reason Strzok was removed and reassigned to the HR post; not necessarily the bias; those discoveries came later.

The bias, writ large, becomes an issue later when there’s evidence of action taken as a result of that bias.  Agent Peter Strzok leaking information to the media; his changing the outcome of an FBI investigation into a political ally, Hillary Clinton; and his investigative involvement in the Trump Russia Conspiracy, via the Steele Dossier and FISA-702 abuse; and his role in targeting political opposition, well, that’s the real issue evident here.

AUGUST 2017 – […] A former FBI agent who worked with Strzok on and off over several years in the bureau’s counterintelligence division said that Strzok’s move to HR means he has now been separated from counterintelligence work altogether.

[…] Strzok’s departure also came one week after The Washington Post reported that Mueller had obtained a search warrant to raid the home of President Donald Trump’s former campaign chairman, Paul Manafort. The Post report cited “people familiar with the search,” prompting questions about whether anyone on Mueller’s team had leaked the existence of the search warrant to the Post. (link)

Which leads us to the next headline story, EARLY DECEMBER 2017, that dovetails into this ideological weaponization by FBI/DOJ/DC officials leaking to the media.

Donald Trump Jr. has now written a letter of complaint to the House Rep. K. Michael Conaway, a Texas Republican who is heading the House Intelligence inquiry into Russian election interference. Don Jr’s outline specifically focuses on the erroneous leak to CNN about the content of a received email; and requests an investigation into how the leak took place:

The Washington Times reports:

[…] Republicans suspect that the staff of Rep. Adam Schiff, California Democrat, leaked the erroneous “scoop” to CNN. They say his staff regularly leaks, with CNN being a favorite, with a spin that is not accurate.

Mr. Schiff, who is a big fan of the discredited Trump dossier, appeared on TV afterward. Mr. Futerfas said he misrepresented his client’s testimony.

[…] Mr. Futerfas’s implication is that the leakers let the story catch fire on social media and other venues before correcting it.

“Ranking Member Schiff and his staff do not leak classified or confidential information, and any disclosure of non-public information by the congressional committees undertaking investigations is singularly unhelpful,” Mr. Schiff said in a statement. “It is imperative that all investigations into Russia’s covert political interference campaign operate with appropriate discretion and refrain from publicizing information for short-sighted political gain.” (read more)

Having some idea of how these DC investigative practices work, it is highly doubtful that Don Jr’s attorney self-initiated that complaint on his client’s behest.

There is a strong possibility the investigative unit, the new leak task-force, and/or the IG office, needs that initiating complaint in order to continue targeting the potential subjects of the leaks.

Given the recent activity surrounding the House Intelligence Committee, there is a better than good likelihood Minority Chairman Adam Schiff is one of the targets; and if the pattern exhibited within the Strzok investigation is followed, Schiff’s communications might also be monitored within the net as it is cast.

FBI Agent Peter Strzok’s former boss was Bill Priestap, FBI Asst. Director in charge of Counterintelligence. [The same Bill Priestap James Comey stated was the person who decided not to tell congressional oversight of the investigation] Bill Priestap’s boss was FBI Deputy Director Andrew McCabe. McCabe was also Lisa Page’s boss. Directly above McCabe in the chain-of-command was FBI Director James Comey.  The Chief Legal Counsel for the entire unit was James Baker.

Notice how things are seeming to gain speed within the daily/weekly discovery cycles?

President Trump Holds Bilateral Meeting With Prime Minister Netanyahu at Davos…


For the first time since announcing the intent to move the U.S. Embassy to Jerusalem, President Trump and his friend Prime Minister Benjamin Netanyahu meet on the sidelines of the World Economic Forum in Davos, Switzerland.

The global dynamic of those who align with genuine freedom, led by President Trump, and those who stand against freedom is very visible in these summits.  There’s a stunning amount of geopolitical leverage carried by those who have a true-North compass heading.

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President Trump doesn’t hold back in speaking directly, genuinely and with a brutal honesty all parties can appreciate. Even those who are adverse to the U.S. interests respect hearing straight talk.  President Trump tells the Palestinian Authority directly any U.S. financial assistance will stop if they refuse to enter peace talks.

WHITE HOUSE: President Donald J. Trump and Prime Minister Benjamin Netanyahu of Israel met today in Davos, Switzerland to reaffirm the unbreakable bond between the United States and Israel.

The President underscored the unwavering commitment of the United States to Israel, including its security and the continuing growth of its economy. The two leaders reviewed their ongoing cooperation across a range of issues and stressed their goal of countering Iran’s malign influence and threatening behavior in the region. They also discussed prospects for achieving an enduring Israeli-Palestinian peace agreement. (LINK)

President Trump Hosts Bilateral Meeting with U.K. Prime Minister Theresa May…


U.S. President Trump and U.K. Prime Minister Theresa May hold a bilateral meeting on the sidelines of the World Economic Forum in Davos, Switzerland.

Against the backdrop of increasing discoveries surrounding the U.K. involvement in undermining the candidacy of Donald Trump; and against the left-wing U.K. political forces consistently highlighting criticism of President Trump; the reality is the U.K. is now in a position of economic vulnerability and needs favorable financial outcomes from President Trump.

As such, Prime Minister May is in a tenuous position and hoping the U.S. President will be magnanimous in his forgiveness of the past two years of scheming, ankle-biting and very public criticism. The scale of President Trump’s leverage over Prime Minister May is very visible in their dialogue and body language.

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Right now the U.K. needs American economic help and POTUS Trump. Almost nothing has worked in their economic benefit since they made the conscious decision to take a position of adversarialism. If the U.K. doesn’t knock off the nonsense President Trump will stand aside and watch them suffer. Theresa May knows this is her reality.

T-Rex is enjoying the art of the deal, having flashbacks to corporate life, remembering the power of holding all the leverage while witnessing an apex predator circling his prey. Cohn and McMaster well understand the play…

WHITE HOUSE: President Donald J. Trump met today with Prime Minister Theresa May of the United Kingdom. The President and Prime Minister discussed joint efforts to ensure the enduring defeat of ISIS and other jihadist terrorist organizations in Syria and Iraq.

They discussed the importance of confronting Iran’s destructive behavior across the Middle East and fundamental flaws in the Iran nuclear deal. The leaders committed to expanded trade between the United States and the United Kingdom, as well as how the two countries can work together to ensure all nations engage in fair and reciprocal trade practices.

The two leaders also discussed plans for a working visit to London in the coming months and affirmed the “special relationship” between the two countries is stronger than ever. (Link)

Secretary Ross and Secretary Mnuchin Discuss World Trade During Davos World Economic Forum…


U.S. Trade Representative Robert Lighthizer is attending Round Six of the NAFTA talks in Canada while President Trump, Secretary of Commerce Wilbur Ross, and Secretary of Treasury Steven Mnuchin attend the Davos World Economic Forum and sit down for an interview with Maria Bartiromo. (Three Video Segments).

Representative Matt Gaetz Discusses #ReleaseTheMemo


Amid the latest Democrat dismissive statements surrounding evidence of FBI and DOJ having a ‘secret society’ of anti-Trumpers, and bias in Mueller’s FBI probe, Representative Matt Gaetz discusses events with Tucker Carlson:

Report: DOJ Has Found and Is Recovering Missing FBI Text Messages…


According to a Fox News exclusive report the Department of Justice has found the missing text messages between Agent Peter Strzok and FBI Attorney Lisa Page, and is in the process of recovering them.

(FOX NEWS) Fox News’ Sean Hannity said Wednesday night on “Hannity” that the Justice Department has started recovering some of the missing texts between FBI officials Peter Strzok and Lisa Page, citing DOJ sources.

Federal law enforcement officials had notified congressional committees that a technical glitch affected thousands of FBI cellphones between Dec. 14, 2016 and May 17, 2017. This meant that 5 months’ worth of texts would be missing from Strzok and Page, both of whom are under scrutiny after it was revealed that the former members of special counsel Robert Mueller’s team exchanged anti-Trump texts during the 2016 presidential campaign.

Hannity said sources at the DOJ told him they have begun to recover some of the texts from that time period. Specific content from those texts has not been released.

The missing messages have caused problems for the Justice Department inspector general’s office.

Senate Homeland Security Committee Chairman Ron Johnson, R-Wis., and Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, have sent a letter to Inspector General Michael Horowitz noting that the IG’s office said on Dec. 13 that it had all the messages between Strzok and Page between Nov. 30, 2016, and July 28, 2017.

Lawmakers later learned of the five-month gap.

The lawmakers said they wanted the IG’s office to “reconcile” those two points.

The five-month stretch of missing messages covers a period of time that includes President Donald Trump’s inauguration, the firings of National Security Adviser Michael Flynn and FBI Director James Comey and the standing-up of former FBI Director Mueller as special counsel to investigate alleged Trump campaign collusion with Russian officials during the 2016 election.  (link)