AMLO Drops the Hammer on African Migrants in Mexico…


I am thankful every day that we have a businessman in the White House who brilliantly understands how to leverage U.S. economic power to achieve national security objectives.

While remaining under the threat of punishing U.S. tariffs, Mexican President Andres Manuel Lopez-Obrador (aka AMLO) is strictly enforcing migrant blockades to stop the unlawful travel of Central American migrants to the U.S. border.

(Via AP) […] Foreign Secretary Marcelo Ebrard said he believes Mexico’s strategy of cracking down on illegal migration with a National Guard deployment, investment in Central America and allowing the U.S. to make more asylum seekers wait in Mexico is enough to avert President Donald Trump’s threat to impose tariffs on all Mexican imports.

Ebrard is scheduled to meet with U.S. officials Tuesday at the White House to review the progress.

Mexican President Andres Manuel López Obrador, a leftist who took office Dec. 1 promising better treatment of migrants, instead has embraced the fight against migrant smuggling.

In recent weeks, he has seldom mentioned the U.S. pressure and depicts the crackdown on migrants as a struggle to defend Mexican laws. His administration has taken a tough line against hundreds of African migrants waiting in the southern city of Tapachula for transit visas that Mexico no longer hands out.

“We will not budge,” he said after the Africans protested, “because the recent events in Tapachula aim to make Mexico yield and oblige us to give out certificates so migrants can get into the United States. We cannot do that. It isn’t our job.”

He said migrant caravans once tolerated by Mexico were the work of human traffickers, and effectively ended them.

“All of these people who traffic with migrants’ needs for jobs, safety and welfare, they are committing a crime and they will be punished,” López Obrador said last week. “We are already doing this in Mexico, without violating human rights. We are ensuring there isn’t anarchy, disorder.”

Migrant-rights activists say López Obrador is simply dressing up the fact that he yielded to Trump’s pressure tactics.

[…] Mexico has raided freight trains that migrants ride north, and pulled thousands off buses and out of the freight compartments of trucks. The government has warned bus and taxi drivers they could lose their permits if they transport migrants. (read more)

The Associated Press

@AP

Eight-and-a-half-months pregnant and experiencing contractions, a Salvadoran woman who had crossed the Rio Grande and was apprehended by the Border Patrol was forced to go back to Mexico. http://apne.ws/nGSyv9c 

US tells migrant woman 8 months pregnant to wait in Mexico

MATAMOROS, Mexico (AP) — Eight-and-a-half-months pregnant and experiencing contractions, an El Salvadoran woman crossed the Rio Grande — only to be apprehended by the Border Patrol. She was not…

apnews.com

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Hopefully, with continued strategic policy success, we will soon reach a point where American voters will only accept business leaders as presidential candidates.

…”Complicated business folks… Complicated business”….

Merkel Takes Her Tin Cup to China…


As if, on cue:

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CTH – […] The problem for China, and ultimately for Germany, is that Trump’s trade reset has stopped a big amount of U.S. wealth from arriving in Beijing. Simultaneously, Beijing is countering Trump’s tariffs by devaluing their currency. The rebound economic impact is doubled. China has: (1) less income; and (2) less value within their own currency.

Where does this dynamic show up?

…. Anytime China is going to buy something.

China’s currency devaluation makes their exports cheaper; however, at the same time it makes any of their imports more expensive. As a consequence China buys less… and that now exhibits in lower purchases of German stuff. See how that happens?

So yeah, the ramifications for Merkel’s German economy -twice as bad as originally forecast- are based on China fighting Trump. The fact that China is bleeding cash, and has simultaneously dropped the value of their currency, means China can’t buy stuff.

All of those nations who were counting on Chinese purchases are now going bananas. This is why the multinationals blame Donald Trump… and to make matters even worse – the U.S. economy is thriving, while they watch from the sidelines. It’s a delicious dynamic.  (read more)

Chairman Larry Kudlow Discusses August Jobs and Labor Report…


White House Economic Council Chairman Larry Kudlow discusses the August jobs report and the latest on China trade negotiations. Main Street USA is thriving, and the U.S. economy is very strong.

August Report: 130,000 Jobs Added, Annual Wage Growth 3.2%, Three Month Wage Growth 4.2%…


The Bureau of Labor Statistics released the August Jobs Report showing 130,000 jobs added during the month.  Year-over-year wage growth remains 3.2%, with a very strong three month wage growth showing gains of 4.2%.

Overall the top line growth of 130k jobs sounds modest; but jumpin’ ju-ju bones, the data underneath the top line is extremely strong and highlights exactly why wage rates have been rapidly increasing over the past three months.  [Table A – BLS Report]

  • The civilian labor force increased by 571,000 workers in August.
  • The number of employed Americans jumped up by 590,000 in August.
  • The number of people not in the labor force dropped by 364,000 in August.
  • The workforce participation rate increased 0.2 to 63.2 percent in August.

With a tight labor market we are seeing the natural upward pressure on wages. In the past four months wage rates have increased 4.2% [Table B-3], and from the employment data it appears those large wage incentives are bringing people back into the workforce.

Year-over-year the number of employed Americans has grown by 2,274,000 people.

Trump War Room

@TrumpWarRoom

CNN’s Christine Romans: “More than 500,000 people entered the labor market…that is an important sign of success in the labor market right now.”

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Tenacious D: Democrats Probe Trump Hush Money to Porn Star, Playboy Model


Published on Sep 3, 2019

Democrats on the House Judiciary Committee launch probe into allegations that President Trump violated campaign finance law with 2016 hush money payments to porn star Stormy Daniels and Playboy model Karen McDougal, both of whom alleged affairs with the Donald J. Trump. Will this Democrat effort succeed where the Russia collusion case failed? Can it lay the groundwork for impeaching Trump before, or after, the 2020 election?

Trump Tweet-Trolls Iran Regime After ‘Catastrophic Accident’ at Safir Missile Site


Published on Sep 4, 2019

Despite Trump Tariffs U.S. Firms Still Bullish on China, But for How Long?


Published on Sep 4, 2019

Despite President Trump’s punitive tariffs on Chinese imports to the U.S., American businesses seem bullish on China, with profits up, and few interested in moving manufacturing out of the People’s Republic. They say they’ll stay even though they think China cheats them and favors their competitors. But Bill Whittle sees trouble down the road for China’s long-running economic surge, as its middle class swells, wages rise, and the Communist government’s oppression of Hong Kong makes it a stench in the nostrils of the Western world. How long can China keep one foot in free markets and one in centralized control?

Currency Which Expires – That’s the Solution – Or Just Cancel it all?


Back during the Great Depression, there were people who theorized that gold hoarding was preventing economic recovery. There is always this same theory that people who save hoarding their money and are not spending it results in the lack of a recovery suppressing demand. This theory has been around for a very long time. It assumes a recovery is always blocked by people hoarding their money and saving for a rainy day.

Back during the American Civil War, the federal government issued paper currency for the first time after the Revolution. Much of this currency paid interest. Some were in the form of virtually circulating bonds with coupons for the interest payments. Some were backed by gold. Others offered a table on the reverse providing a schedule. The interest baring notes remained valid currency, but the interest expired within a specific time period. Hence, one would redeem the note since it would no longer pay interest beyond a specific date.

The rumbling behind the curtain I am hearing is a growing idea of making the currency in Europe simply expire. I have explained before that in Europe currency routinely expires – even in Britain. The United States has never canceled its currency so a note from the Civil War is still legal tender. But that is not the case in Europe.

Europeans are accustomed to having their money simply expire. This is not limited to paper currency. They also cancel the coins. The proposal being whispered in the dark halls of Europe is that perhaps the way to impose negative rates to force people to spend is to just cancel all the currency and authorize only small notes for pocket change. They want everyone to be forced to use bank cards and this is the new theory to revitalize the economy.

The chart patterns for the Euro are about as long-term bearish as one can imagine. The problem facing the world economy is this idea that they can even FORCE people to spend their savings recklessly as the government does. Canceling the euro may be a drastic and desperate step, but it is being proposed as an alternative to deep negative interest rates which have failed to work for more than 10 years. The middle ground proposes a paper currency with expiration dates.

Either way, the risk of a profound dollar rally remains in the wings. The powers behind the curtain desperately want to defeat Trump for they know he would NEVER cancel the American currency. To pull that off, they need a career politician. Joe Biden would be perfect. He might just sign whatever bill is put before him and then take a nap. It is ironic, but there would be a lot of Americans who would wake up and want Trump bank after that one. Joe would be too tired to tweet.

 

 

The Club & Why the Majority Must be Always Wrong


QUESTION: Mr. Armstrong; I did my own research on the 1998 Russian collapse. All the big names lost billions. Even the New York Times reported that George Soros lost $2 billion. You were the only one who made money so it made sense that you were named hedge fund manager of the year in 1998. My question is this. Since all the big names were involved in the Russia trade which took down Long-Term Capital Management, is this why you call them the “club” for they all do seem to be involved in the same trade?

DU

ANSWER: Correct. This is also why they try to prevent people from listening to me. They are convinced that the reason they lost was that I was too influential and had too many institutions listening to me. That absurdity is what they ran to the government with, so I was then accused of “manipulating” the world economy. They all lost after I warned them and refused to join in their takeover of Russia I believe I was given the nod by the Clintons. They told me they had the IMF in their back pocket and they would continue to fund Russia. I warned them that the IMF got their funding from governments and they were not going to back it.

The Russian financial crisis hit Russia on the 17th of August 1998. Our World Economic Conference was held in London that June. Our forecast was then published by the London Financial Times on the front page of the second section.

They did not give up. After they got the Federal Reserve to bail them out, they then focused on setting up Yeltsin and got him to divert $7 billion in IMF loans. Even CNN reported the money was stolen from the IMF.

CNN Theft of IMF Money – Sep. 1, 1999

Edmond Safra’s Republic National Bank ran to the Department of Justice and then reported that a $7 billion money laundering scheme just went through Bank of New York. They attempted to blackmail Yeltsin to step down and appoint their guy; Yeltsin then turned to Putin. It was the US bankers, with the support of the Clintons, who first tried to interfere into Russian elections. This is why Putin was not friendly to Clinton and said Mueller could come to question anyone in Russia he liked, provided Russia could question Americans including Bill Browder who was Safra’s partner in Hermitage Capital.

While “The Forecaster” was shown even on TV throughout Europe, Canada, and Asia, the question is WHY was it banned in the United States? If it was just a conspiracy theory, they could care less. When something strikes closer to home, they ban it.

The World through Everyone’s Eyes


COMMENT: Sir,

I appreciate that I may not always agree with what you write but I listen and examine and respect your viewpoint. You, in turn, have answered my many questions and discussed my comments with respect in return.

This makes me worry that the ability to discuss problems in a straightforward and thoughtful way may not be possible in the future.

Keep up the good work

F

REPLY: In order to be an international adviser, the very first lessons I learned was (1) listen to everyone, and (2) view the world through their eyes.

I was giving a lecture in Geneva to a small group of institutions back in 1982 but some had flown in from other countries. One was from Canada and the exchange was quite interesting. I had provided the forecasts on the individual currencies and then I moved to the commodities. The Canadian asked so he should be a buyer of gold and I said yes. The on Swiss institution said yes but your forecast on the Swiss franc would mean I would lose money.

When I looked at it in terms of each perspective it was clear. The rally in gold would be impressive only in US$ and CD$ so it was a buy for the Canadian and a sell for the Swiss. Indeed, the rally into 1983 was a strong rally for gold in US$ and CD$, but not in Swiss.

We all have a view and money to each of us is still a mental calculation based upon our home currency. To even do my job, I have to be able to see the world from all perspectives. We are all human and we will all act in our own self-interest.

My clients have trained me. Having to deal with many crises around the world forced me to see the world through global eyes. This is why MY DEFINITION of what constitutes a bull market is something which rises in ALL CURRENCIES!!!!! 

We will all never agree for we will always see things through our own pair of glasses. Never forget, others will respond in the same way.

My philosophy is very simple. There should be no law which compels others to act in a way I believe if correct provided their actions do not harm anyone else. I leave you alone and you leave me alone and we can all get along. I object to politics that seeks to exploit class warfare for historically that has ALWAYS, and without exception, led to civil wa