Canada: ‘When it comes to negotiating “Robert Lighthizer is a vicious son of a bitch”…


Well, there’s yet another promise kept.  Candidate/President Trump always said he would deploy the “killers” to renegotiate trade deals:

…‘When it comes to negotiating, “Robert Lighthizer is a vicious son of a bitch.”…

~Gordon Ritchie

Somehow I think this type of criticism will only elevate U.S. Trade Representative Robert Lighthizer in the eyes of President Trump.

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Oh Dear: More Devastating Leaks From Bruce Ohr Testimony….


It will be very interesting when the joint committee releases the transcript from Lisa Page and Bruce Ohr.   In another article containing information from Bruce Ohr’s closed-door testimony we highlight two key points (emphasis mine):

Kim Strassell – […] Congressional sources tell me that Mr. Ohr revealed Tuesday that he verbally warned the FBI that its source had a credibility problem, alerting the bureau to Mr. Steele’s leanings and motives. He also informed the bureau that Mrs. Ohr was working for Fusion and contributing to the dossier project.

The admission that Nellie Ohr was contributing to the dossier is a really important specific point.  We always suspected some of the dossier content was attributable to Mrs. Ohr, this confirms that suspicion.

Additionally, on the day before Mr. Ohr testified to congress, embarrassingly the New York Times launched a proactive defense surrounding his predicted testimony; within the August 27th article they cited Fusion GPS as a source saying Nellie Ohr never worked on the dossier (see screengrab):

(article link)

Whoopsie…

Obviously Mr. Ohr did not tow-the-media-predicted-line.

Secondly, more information from Ms. Strassel:

[…] Congressional sources tell me that Mr. Ohr revealed Tuesday that he verbally warned the FBI that its source had a credibility problem … Mr. Ohr said, moreover, that he delivered this information before the FBI’s first application to the Foreign Intelligence Surveillance Court for a warrant against Trump aide Carter Page, in October 2016. (link)

This is key, because it further erodes the validity of the Carter Page FISA application.  If Bruce Ohr was warning the FBI about the lack of credibility of the primary source behind the evidence provided to the FISA Court, then there is no doubt the Woods Procedures were not followed.

The FBI and DOJ failing to heed a warning on the content of the primary information, or to provide that warning to the FISA court, shows a direct intent to mislead the court by the FBI officials presenting the information to Main Justice for the FISA application.  Who signed it?

 

https://www.scribd.com/embeds/384380664/content?start_page=1&view_mode=&access_key=key-V5JqoILhPOBEswhMeqyl

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The US Share Market Reality Exposed


The US share markets are being driven up by two main factors. First, institutions have sold the market assuming there would be a major crash. In February at the lows, Goldman Sachs was forecasting that the market could plunge another 25%. In May, Goldman Sachs again was warning that the next crash will be worse because of computerized trading. Investopedia published an article last January: Why The 1929 Stock Market Crash Could Happen In 2018. Fox Business reported on October 18, 2017: Stock market crash inevitable, financial historian saysThe number of forecasts that keep calling for a major crash has been truly amazing. This has been one reason why I have said that this is the Most Hated Bull Market in History! For at least the final 18 months going into the high on September 3rd, 1929, the general consensus turned bullish. People were also bearish and in fact, the Wall Street Journal even accused Jesse Livermore of turning bullish to try to influence the presidential election. Strangely reminiscent of Russian hackers in 2016. As long as the major remain bearish calling for every top to be the last one, you know we are nowhere near the high yet.

Besides the constant selling that has led to repeated short-covering, we also have the excuse that the rally is primarily being caused by massive buybacks by corporations of their own shares. They point out that corporate-buy-backs will also reach an all-time high in 2018. They present this as evidence that somehow these purchases are not legitimate. In truth, the excess cash has led companies to buy back shares which will have two interesting impacts. First, it actually creates a shortage of shares. This was one factor in creating the 1929 bubble.  Indeed, some of the last stocks to be floating going into the high of 1929 were Mausoleum companies.

Additionally, the US share market has benefited from the political-economic turmoil outside the USA – especially in Europe. Even IMF acknowledged that the European Central Bank’s pledge to buy government bonds set in motion a capital flight and the financial fragmentation of the eurozone back on October 9th, 2012 the return of global dollar capital to the US as a result of the central bank’s interest rate hikes also contributed to the positive trend. When we look at the Dow Jones Industrials, we can easily see that it continues to make new highs in Euro. This foreign buying has absorbed domestic selling.

The Significance of the Velocity of Money


QUESTION: Greetings Marty,

I have followed you since the old Money Radio days!

Can you help me understand the disparity between the declining velocity of money, the growth of the economy and what the natural consequence may be?

Thank you for your willingness to share your knowledge!

Regards,

MRM

 

ANSWER: Oh yes. Buzz Schwartz was a fantastic guy. I enjoyed doing his show there in California. The economic growth has been declining for decades as has the velocity of money, As the velocity declines, it shows that people are either saving more or they do not have disposable income after taxes to spend.  Normally, the velocity will decline and that is a sign of a recession. This is the normal reaction when people save and do not spend. However, if you are not in an economic recession/depression there is no FEAR FACTOR of what the future will bring, then the velocity declines because people really do not have the money after taxes to spend. This is one reason I keep harping on – it’s the taxes stupid!

In the USA, the velocity bottomed during the 2nd quarter of 2017 and has started to turn up with Trump lowering taxes. This is the first uptick since the decline began from the 3rd quarter of 1997 when the capital flows began to shift creating the 1997 Asian Currency Crisis. When Obama raised the tax rate from 35% to 39.6% in 2013, that began the real sharp decline.

The decline in the velocity of money and the rising burden of taxation is very alarming. That has been the worst combination which has suppressed the Euro zone economy. We see this with central banks setting targets for 3% inflation and they cannot reach that level.

CNN Has been Caught at Creating Fake News & Everyone Else is Pointing the Finger at them


CNN reported that Trump’s former lawyer, Michael Cohen, was ready to tell Mueller that Trump knew about the meeting with Russias at Trump Tower in advance. Many other newspapers report the story using CNN as the source that this was the “bombshell” that would impeach Trump. that The problem is that Cohen’s lawyer, Lanny Davis, has repudiated that story. Davis has come out and expressly stated that Cohen has no information that Trump had prior knowledge of the Trump Tower meeting Every other news service has come out and apologized for the false report. Not the king of Faker News, CNN. CNN has come out and stated: “We stand by our story, and are confident in our reporting of it.” This really shows how low CNN has become. There are now no longer regarded as a “reliable” news service and have fallen hard in the rates as FOX News has been number one now for 200 months straight.

Dots Connecting Quickly: Bruce Ohr Worked With Andrew Weissmann, While Nellie Ohr Worked For Fusion GPS in 2015…


Last Sunday Representative Darrell Issa was being interviewed by Maria Bartiromo about the testimony of Bruce Ohr when Issa innocuously said that Nellie Ohr was working for Fusion GPS in 2015.  Previous to that statement by Issa the timeline for Nellie Ohr working with Fusion GPS began in April of 2016 (simultaneous to Fusion beginning the contract work for the Clinton Campaign and sub-contracting of Chris Steele).

If the 2015 date was correct, this was a big deal; a VERY BIG deal.  Well, today amid other revelations within an excellent report by Chuck Ross at the Daily Caller, the 2015 date is confirmed:

[…] Republicans pressed Ohr about how his wife, a Russia expert named Nellie Ohr, came to work for Fusion GPS.

Ohr testified that Fusion approached his wife for a job and that she began working for the research firm in late 2015. California GOP Rep. Darrell Issa said Ohr testified that his wife was paid $44,000 by Fusion GPS. As TheDCNF has reported, Ohr did not disclose his wife’s Fusion income on his annual ethics disclosure form.

Perkins Coie, the law firm for the Clinton campaign and Democratic National Committee, paid Fusion GPS more than $1 million for the Trump-Russia project. Fusion paid Steele nearly $170,000 for his work. (read more)

If Nellie Ohr began working for FusionGPS in “late 2015”, an entire set of prior suspicions now gains a lot more traction.  We have long suspected that Fusion-GPS was one of the contractors with access to the FBI/NSA database.  The contractors were conducting political opposition research by exploiting the FISA 702(16)(17) process which would be available for counterintelligence purposes; hence the DOJ-National Security Division.

(link to pdf)

From November 1, 2015, to May 1st, 2016, thousands of search queries were conducted with a “non-compliance rate of 85%”.  That means the “contractors” were massively abusing their access to the database; and a full 85% of their activity was demonstrably unlawful.

It is highly likely, almost certain, all of this unlawful query activity was political opposition research being conducted by political operatives, agents and DOJ/FBI affiliates within the apparatus.  Fusion GPS seems like an obvious organization who would be participating in that activity.   Adding to this likelihood we now have Nellie Ohr working within this exact timeline.

We have also found significant connections between those contractor database queries and downstream results which appear to show up in the external investigative material presented by Fusion-GPS contractor Christopher Steele, (ie. Cohen in Prague).

Not a single congressional hearing has ever questioned the FISA search issues. Not a single question to a single witness, specifically Comey or Yates, ever asked them about the DOJ-NSD and FBI abuse of the FISA database.

The origin of almost all of the corruption seems to consistently circle back to the abuse of the FBI and NSA database which is very much documented and never subject to being refuted. Yet for some reason I cannot fathom, the historic FISA surveillance/search abuse issue is never brought up by anyone, any investigative authority, in any aspect of this ongoing storyline.

It all starts with abuses of the FISA system for political opposition research; yet we never hear a single voice calling attention to the DOJ-NSD and FBI abuse of this system.

Additionally within the report today from Chuck Ross is this:

[…] Sources familiar with Ohr’s testimony before the House Judiciary and House Oversight Committees told The Daily Caller News Foundation that Ohr informed Andrew McCabe, Peter Strzok and Lisa Page about his interactions with Steele and Simpson. He also informed Justice Department prosecutor Andrew Weissmann about his dossier-related work.

Weissmann is now serving as right-hand man to Robert Mueller at the special counsel’s office.

Ohr testified that he informed his Justice Department peers, but not his superiors, about his contacts with Steele and Simpson. One of the superiors kept out of the loop was former Deputy Attorney General Sally Yates. Ohr said he was demoted as assistant deputy attorney general in December because he failed to tell Yates and other top officials about his dossier interactions. (more)

Again, this connects a circle of information.  You might remember back in July there was another report of Andrew Weissman working in collaboration with four AP reporters.

The July article surrounded a discovery that Robert Mueller’s lead attorney Andrew Weissmann worked with four AP journalists on both the story of Paul Manafort’s business interests; and, more importantly, and jaw-droppingly, the evidence for Mueller to use against Paul Manafort.

The gist of the story is that Andrew Weissmann was meeting with AP reporters in April of 2017, approximately a month prior to the formal construct of the Robert Mueller investigation. The information from the meeting, which was essentially based on research provided by the “reporters” about Paul Manafort, was then later used in the formation of the underlying evidence against Manafort to gain a search warrant.

We suspect those AP reporters were part of the Fusion GPS network.  To understand the implications we must overlay a set of facts that has perplexed CTH for almost a year.  Back in April 2017 Director of National Intelligence Dan Coats, declassified a FISA court ruling that had/has massive potential implications.  The 99-page ruling, written by FISA Court Presiding Judge Rosemary Collyer, outlined structural issues and admissions by the DOJ and FBI about violations of search queries within the NSA and FBI database.

Essentially, the underlying evidence within the Collyer FISA report, outlines how the DOJ National Security Division (John P Carlin), FBI and NSA (Admiral Mike Rogers) informed the court that unauthorized access to the NSA/FBI database had been ongoing for a long period of time.  The “unauthorized access” was primarily driven by contractors who had access to the information database and were using it in 2015 and 2016.  According to the report over 85% of searches conducted were “unauthorized” abuses of the system.  DOJ-NSD head John Carlin resigned in 2016 immediately after informing the court.

Since the discovery of this issue a great deal of disconnected information has followed. Including how FBI Director James Comey allowed his friend Daniel Richman to have  “special access” to this information database.

The term “contractors” is opaque in the ruling, and there are hundreds of redactions protecting the names of the individuals and groups who participated in the unauthorized searches.  However, within the testimony of Fusion-GPS founder Glenn Simpson; and the story of the Steele Dossier and Nellie Ohr; we discover a nexus of information users.

Fusion GPS was/is essentially in the ‘information for hire‘ business, selling to clients for a price and using networks of journalists and former government officials to transmit, share and disseminate information on behalf of their clients.  Essentially, Fusion GPS is an opposition research group with a network of journalists, paid and unpaid, that it uses to frame constructed narratives to the benefit of their clients.  In the spring, summer and fall of 2016, the Hillary Clinton campaign was one such client.

In April 2017, at the time of this meeting with AP reporters, Andrew Weissmann was chief of the Justice Department’s criminal fraud section.  Weissmann joined the special counsel a month later, May 2017.

We already know the FISA searches were essentially political opposition research being conducted by these opaque ‘contractors’.  We know the ideology within the DOJ-NSD and FBI, the generic intent of their motive, from the communication amid the group doing the Clinton and Trump investigations; text messages, memos and emails which have since become public.

A common sense review of all facts outlines a strong likelihood these database searches were ongoing by groups and individuals affiliated with Fusion GPS and other political networks.  It’s a simple process of selling information.

This information pipeline from Fusion to Bruce Ohr to Andrew Weissmann, in combination with the meeting between Weissmann and AP reporters, is essentially another round of same-method manufacturing of evidence; it is a collaborative effort.

In the first example where the Fusion-GPS information circle was exploited, the FBI gained a FISA Title-1 search warrant against Carter Page.   In the second example of an almost identical information flow the result was Special Counsel Robert Mueller gaining search warrants against Paul Manafort.

President Trump MAGA Rally – Ford Center in Evansville, Indiana – 7:00pm Livestream…


Tonight President Trump heads to Evansville, Indiana for a MAGA rally at the Ford Center.  President Trump is in Indiana on behalf of Senate candidate Mike Braun. Anticipated start time 7:00pm EST with pre-rally speakers and events ongoing.

With all of the ongoing trade news circling Washington DC, in combination with the latest testimony from DOJ and FBI officials, this is a rally speech not to be missed.

RSBN Livestream LinkFox News Livestream LinkFox10 Livestream Link

Bloomberg Reports: POTUS Trump Considering $200 Billion in Chinese Tariffs…


The financial media is all a flutter based on a Bloomberg report that President Trump is likely to apply tariffs on $200 billion in Chinese goods.  DUH !  Why do they think U.S.T.R. Lighthizer has been conducting open section 301 tariff hearings for the past week?  Of course President Trump is considering tariffs on $200 billion in trade goods; this approach is not exactly a secret.

Then again, most of the financial media are clueless about the larger economic strategy and how China ties into the negotiations with North Korea.  I digress.

The proposed tariffs are a supplemental action in response to China’s unfair trade practices related to technology transfer, intellectual property, and innovation, based on the findings in USTR’s investigation of China under Section 301 of the Trade Act of 1974. Tariffs on $34 billion in goods from China are currently in effect, and tariffs on an additional $16 billion took effect on August 23rd, 2018.

The issue is not *if* President Trump will apply the 301-tariffs, the question is *how* and *when*?

Only President Trump knows the answer to that question because everything about the larger strategy is only known by the person making the ultimate decisions, President Trump.

The goals are clear: leverage a more fair, equitable and reciprocal trade relationship with China; and also gain national and regional security for Southeast Asia with a denuclearized and stable Korean peninsula.

The $200 billion in 301-tariffs is a tool, leverage, nothing more.  President Trump is following a very logical sequence with multiple simultaneous actions.  Finalize the North American Trade Bloc using U.S-Mexico terms (possibly with Canada); then focus on the EU trade element, possibly doing a bilateral deal with the U.K. at the same time; then shift to Asia and specifically China.

The advancing Trump trade agenda has multiple fronts all coordinated by President Trump and his team: Commerce Secretary Wilbur Ross; Treasury Secretary Steven Mnuchin; U.S. Trade Representative, Ambassador Robert Lighthizer; with input and targeted messaging from NEC Director Larry Kudlow and Trade Advisor Peter Navarro.

Each member of the team has a specific region for review and strategy.  However, the larger direction of the team, and every specific action within each move, is coordinated by President Trump.

As Anticipated: President Trump Infers Firing AG Jeff Sessions After the Mid-Terms…


Based on almost a year of reluctance by AG Jeff Sessions and DAG Rod Rosenstein to take any substantive action that would weed out the corrupt officials within the institutions of the DOJ and FBI; and considering the level of willful blindness, evidenced in 2017, by Sessions, Rosenstein, Christopher Wray and David Bowditch as they avoid addressing the corruption found by congress and the DOJ Inspector General; we accepted –reluctantly– that no other corrective recourse was available for President Trump except to fire the four inept leaders after the 2018 mid-term election.

It now appears that approach is looming.  A Bloomberg interview with President Trump in the Oval Office:

WASHINGTON DC – President Donald Trump said Attorney General Jeff Sessions’s job is safe at least until the midterm elections in November.

“I just would love to have him do a great job,” Trump said Thursday in an Oval Office interview with Bloomberg News. Asked if he’d keep Sessions beyond November, he declined to comment. (read more)

Canada Enters Day #2 of “Intense Conversations”….


For Canada it’s all about politics and face-saving. How to tell? Well, after Canadian Foreign Minister Chrystia Freeland went out of her way last night to tell the media she would not conduct negotiations in the press, Freeland runs back to the press to discuss the ongoing negotiations. She is signaling to a domestic audience…. nothing more.

Domestically Justin and Chrystia from Canada have seen complete collapse in support from the Canadian electorate. Canadians have little confidence that Chrystia and Justin are capable of negotiating a deal that will benefit their economy. Trudeau and Freeland rolled the political dice; played political games; and crapped out.

Mexico (Seade) and the U.S. (Lighthizer) have structured a strong trade agreement that benefits both countries and creates an actual manufacturing and commerce bloc. Canada has no option except acquiescence, if they want to avoid Lighthizer sending a 2205 notification to dissolve the Canadians from the U.S-Mexico deal.

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In January 2018, when still attempting the political use of the negotiations, Freeland burned Lighthizer. The U.S. Trade Rep has not forgotten. Canada’s ability to enter the deal is now dependent on Lighthizer allowing them a way to save face.  Robert Lighthizer, like Trump, really doesn’t care…. The U.S. is in an overwhelming winning position either say…. Hence, Freeland’s continual appearances in the media, she’s shook.

I am reminded how badly Chrystia Freeland screwed up the negotiations in January of 2018 when she demanded that Canada be allowed to arbitrarily set their own trade import standards with China… This was right after idiot Justin signed Canada on to the TPP trade agreement.

Any canucklehead could see that signing on to TPP and simultaneously demanding to set your own standards for manufacturing origination was a poison pill. It would make the NAFTA fatal flaw infinitely worse for the U.S….. any idiot could see that problem. That was the moment when Lighthizer gave up on Canada.

In order for Canada to accept or join, via 2202 modification, they would need to agree to the U.S-Mexico modification terms. For Canada they would have to:

  • open their telecommunications and banking sector (eliminate non tariff barriers).
  • eliminate soft-wood (lumber) and aeronautics subsidies.
  • begin a process of lowering their assembly use of Chinese/Asian goods.
  • accept the rules of origin for North American manufacturing.
  • eliminate protectionist tariffs on dairy and farm products.
  • accept the U.S-Mexico terms for arbitration and dispute resolution.

Trump and Lighthizer are holding all the cards.  They don’t care if Canada doesn’t join; they would likely prefer to go into a one-on-one trade construct where the U.S. will apply auto tariffs on Canadian made vehicles.

The financial media are pushing optimism because Wall Street wants to protect prior Canadian investment, and the professionals know how badly Justin/Chrystia have been outmatched.

POTUS Trump is heading to Indiana today for a MAGA rally.  Don’t anticipate any breaking information (of substance) until tomorrow morning when Lighthizer can debrief with President Trump.