Category Important

Sep 3 2020

We are The People We Have Been Waiting For…


Posted originally on The Conservative Tree House on September 2, 2020 by 

From the heart….  recent events have highlighted the great conflict within this election year.  On one hand we can exhaust ourselves revealing every granular detail from years of institutional corruption – and to what end?  On the other hand we can focus intently on transmitting the winning uplifting message to re-elect President Trump.

We cannot, effectively, do both; here’s why.

First, we must accept the DOJ and FBI blind spot and tone-deafness toward the fourth amendment.  No single proposition has so brutally outlined the intent of the Bill Barr DOJ than an institutional agreement to carve the fourth amendment into two parts; with two different standards for a FISA application.  One standard for DC elites, the second standard for everyone else.  There is no excusing this.  The institution is an echo-chamber.

Second, I have no doubt the recent article by Sara Carter outlining how the Wood’s File for the Carter Page application was “lost” two years ago and reconstructed by the special counsel for Michael Horowitz FISA report.  Everything about Carter’s source information, including the exact timeline, aligns with my own research and discussion with quiet insiders about the purpose of the Weissmann/Mueller special counsel.  Considering what they did with the Brian Dugan file in 2018 why wouldn’t they do the same thing with the Woods File for the Page application?… Both actions have the same corrupt purpose.

There is no evidence to suggest the United States Attorney General has any intent to  expose severe corrupt activity; the special counsel is a great example.  However, there is ample evidence DOJ leadership intent is to preserve the institution(s).  Nothing can be forced upon them from the outside to change that dynamic; so we have decisions to make.

 

Every day we highlight the unaddressed corruption is another day we lose people to emotional fatigue and mental exhaustion.  To the extent the severity of the corruption is outlined, it becomes completely understandable how people would throw up their arms and walk away disgusted and disenfranchised.  We cannot lose people like this.

We cannot afford to lose a single voter…. we need everyone in this fight.

I have spoken to many patriotic people familiar to many of you, and without question when you direct the conversation to the subject of this dynamic eventually everyone concedes: we must drop emphasis on the scale of government corruption and urgently shift focus to winning 2020.  If we achieve the latter we can return to the former.

No-one is going to come to our nation’s rescue.  We are the people we have been waiting for.  This is our task, and there are only sixty days left to expand our ranks.

We have the best message.  We have the best candidate; and both represent the pride, values and patriotism of this nation.  Our opposition is weak and their message is based on fear and trepidation.  We cannot afford to fuel their preferred narrative of dark inevitability by focusing on a system that has become completely rigged and corrupted.

Every disenfranchised voter becomes a win for the anti-American opposition.  We must intensely provide an alternative message of faith, fellowship and patriotism.  This is so critical it cannot be overemphasized.  Optimism will win this cultural war; and the winner of the culture war will win the political battle.

Hate and anger are toxic to the spirit, we must avoid that sense at all costs.   Believe me if I thought we could hate our way to success I would admit it; but we can’t – and we shouldn’t.

Let anger, bitterness and hatred be the message of the intolerant left… it will consume them and it will diminish their tribe.  You cannot live amid a culture of envy without eventually losing all hope… that is the Democrats current reality; that reality is what they are trying to get away from right now because they see their voters headed to the exits.

Right now those who wish to “fundamentally change” our nation are waging a full frontal assault against our constitutional republic.  The bombardment seems overwhelming.

Leftist city and state leaders have abandoned rule of law in favor of supporting the mob effort to destroy our sense of national unity.  Political activists, left-wing ideologues under the guise of democrats, and a host of media allies are conducting an information war on behalf of their objective.  Big tech social media companies are attempting to remove the voices of those who are fighting back.

There is a great deal of purposefully driven anxiety and fear amid our nation as this multi-faceted internal war takes place.  However, there is a primary element to this effort that each person can shield themselves from, and act to counter.  Do not let your sense of self succumb to this assault.  Do not let them win the battle for your peace of mind.

It might, heck, -check that- it does seem overwhelming at times.  But that is the nature of this collectivist strategy.  That is the purpose of this bombardment.  We must hold strong and push back against their lies and manipulations.  If you look closely at their attack, it is weak and much of it is psychological bait.  Do not fall into the trap of despair.

When I share the message “live your best life”, it is not without purpose.  Every moment that we allow the onslaught to deter us from living our dreams, is a moment those who oppose our nation view as us taking a knee.  Do not allow this effort to succeed.

You might ask yourself how can I, one person, a flea looking into a furnace, retain an optimistic disposition while all around me seems chaotic and mad.

That’s the point; it ‘seems’ chaotic and mad because it has been created to appear that way.  There are more of us than them; they just control the systems that allow us to connect, share messages and recognize the scale of our assembly.

Every second that you live your life with thankfulness for the abundance within it; every moment that we CHOOSE to engage with fellowship; every day that we accept guidance from God – however you define him to be; and every moment we cherish this time to be a beacon of optimism; is a moment that we withstand that barrage and hold the flag in place.   It is a genuinely patriotic position not to succumb to the attack.

If you allow yourself to be drawn into crisis and despair, you allow them to win.  If your center of normal is based around this overwhelming onslaught, you will eventually concede liberty in favor of peace.  Once we stop living in liberty, we no longer have peace.

It took me a while to fully understand just how damaging empty streets, soulless eyes, the lack of smiles, shuttered businesses and the absence of joy would become.  But as I travel around I now recognize just how much damage is being done; not just to our nation as a whole, but also to every individual within it – personally.

We must shake this mindset.  We must withstand this onslaught and rally to the origin of our true national spirit.  We must rally to a standard of Americanism and accept this is not that.

In essence, we must individually take a stand.

Purposefully, deliberately and with forethought, we must engage those around us to get rid of this sense of foreboding.

This approach is how we win the larger battle.

All around us, in every tribe and region, there are people who need you to show them the strength that you have.  Strength of spirit. Strength of fellowship that you will not relent from expressing.  No matter what noise is shouting from the loudspeakers we must withstand it; we must make eye contact and remain joyful.  We cannot allow despair to be the status quo.

Our nation needs more people like you, right now.  Don’t wait… engage life, get optimistic however you need to do it. Then let that part of you shine right now… This is how we fight.  Hold up that flag; give the starter smile… rally to the standard you create and spread fellowship again.

God knows we need it; and that is how we will win.

Sep 3 2020

Brennan Transmits His Durham Briefing to the Crew…


Posted originally on The Conservative Tree House on September 2, 2020 by 

When you know the process, you know the methods and purposes.  Remember: CIA messaging is transmitted through the Washington Post; FBI messaging is transmitted through the New York Times; and State Dept. messaging is transmitted through CNN. This flow is the one constant in the narrative engineering process.

Ten days ago former CIA Director John Brennan was interviewed by the investigative unit led by John Durham.

Two days ago Brennan told the “small group” of politicians and corrupt Obama officials what his official line to those Durham investigators was.

Brennan tells his allies this through an Op-Ed published in the Washington Post.

The motive, intent and purpose is the same as Dianne Feinstein’s leak of the Glenn Simpson testimony… get all messaging on the same page.

Here’s the Brennan narrative to assist the “by the book” justification:

[Washington Post – John Brennan] – […] President Barack Obama already knew the Russians were hacking into the networks of U.S. presidential campaigns, but on the afternoon of July 28, 2016, I informed him in a hurriedly scheduled meeting that Russian President Vladimir Putin had authorized his intelligence services to carry out activities to hurt Democratic candidate Hillary Clinton and boost the election prospects of Donald Trump.

 

“Mr. President,” I said, “it appears that the Russian effort to undermine the integrity of the November election is much more intense, determined, and insidious than any we have seen before.”

My reference to the unprecedented scale and scope of Moscow’s efforts to harm the integrity of the election quickly riveted the president’s attention. It also triggered the immediate concern of the others in the room — including Chief of Staff Denis McDonough, who asked, after I was done speaking, “What are you planning to do on the congressional front?”

I thought for a brief moment and then recommended that the most sensitive intelligence be limited initially only to the “Gang of Eight” — the bipartisan leadership of both houses of Congress as well as the chairs and ranking minority-party members of the Intelligence Committees. I was concerned that briefing Congress more broadly on fragile intelligence sources and methods could lead to damaging leaks, harming our ability to learn more about Russian plans and capabilities.

Moreover, some U.S. persons affiliated with the Trump campaign appeared to be caught up, wittingly or unwittingly, in the Russian scheme, and I knew that the politically volatile nature of such information could have been used by Democrats to harm the Trump campaign.

In my more than 30 years of government service, I had witnessed some members of both political parties engage in unethical behavior by misusing intelligence, and I wanted to avoid that happening on the eve of a closely contested presidential election. Obama understood my concerns, but he said he wanted Congress briefed as appropriate and as required.

Congress was already on summer recess at the time, but three members of the Gang of Eight — Democrats Rep. Nancy Pelosi (Calif.), Rep. Adam B. Schiff (Calif.) and Sen. Harry M. Reid (Nev.) — made arrangements to receive the briefing in August in person or by secure phone. The other five — one Democrat and four Republicans — were briefed individually in secure congressional conference rooms on Sept. 6.

To underscore the sensitivity of the intelligence, I personally conducted all the briefings. Most of the eight immediately recognized the gravity of Russian efforts. A notable exception was Sen. Mitch McConnell (R-Ky.), who insinuated that the CIA was working with the Obama administration to prevent Trump from getting elected.

We conducted many subsequent briefings for members and staff in the run-up to the Nov. 8 presidential election.  (more)

Smart move by Brennan to bring in President Obama; although this is the first time Brennan admits to briefing the White House on the Steele Dossier information specifically on July 28th 2016.  Not accidentally three days before the official opening of FBI operation Crossfire Hurricane.

Yes, that timeline contradicts with other information provided by Lisa Page and various FBI officials in their depositions, but that can be reconciled internally, safely, based on obtuse distinctions around the actual content of the briefing itself.

Start by remembering the sworn testimony of John Brennan to congress on May 23rd, 2017.  Listen carefully to the opening statement from former the former CIA director and pay close attention to the segment at 13:35 of this video [transcribed below]:

Brennan: [13:35] “Third, through the so-called Gang-of-Eight process we kept congress apprised of these issues as we identified them.”

“Again, in consultation with the White House, I PERSONALLY briefed the full details of our understanding of Russian attempts to interfere in the election to congressional leadership; specifically: Senators Harry Reid, Mitch McConnell, Dianne Feinstein and Richard Burr; and to representatives Paul Ryan, Nancy Pelosi, Devin Nunes and Adam Schiff between 11th August and 6th September [2016], I provided the same briefing to each of the gang of eight members.”

“Given the highly sensitive nature of what was an active counter-intelligence case [that means the FBI], involving an ongoing Russian effort, to interfere in our presidential election, the full details of what we knew at the time were shared only with those members of congress; each of whom was accompanied by one senior staff member.”…

Notice a few things from this testimony.  First, where Brennan says “in consultation with the White House“.  This was the first direct connection between Brennan’s activity and President Obama, National Security Adviser Susan Rice and Chief-of-Staff Denis McDonough, each of whom would have held knowledge of what Brennan was briefing to the Go8; Brennan confirms this in his August 31, 2020, Op-ed.

Secondly, Brennan is describing raw intelligence (obviously gathered prior to the Carter Page FISA Application/Warrant – October 21st, 2016) that he went on to brief the Gang-of-Eight (pictured below).  Notice Brennan said he did briefings “individually”.

Brennan also says in his testimony that he began the briefings on August 11th, 2016.  This is a key point because former Senate Minority Leader Harry Reid sent a letter to James Comey on August 27th, 2016, as an outcome of his briefing by John Brennan. But it is the content of Reid’s letter that really matters.

In the last paragraph of Reid’s letter to Comey he notes something that is only cited within the Christopher Steele Dossier [full letter pdf here]:

This letter is August 27th, 2016.  The Trump advisor in the letter is Carter Page. The source of the information is Christopher Steele in his dossier. Two months later (October 21st, 2016) the FBI filed a FISA application against Carter Page using the Steele Dossier.

So what we are seeing here is CIA Director John Brennan briefing Harry Reid on the Steele dossier in August 2016, even before the dossier reached the FBI.  However, John Brennan has denied seeing the dossier until December of 2016.  A transparent lie.

Listen from 03:00 to 04:36:

Sep 3 2020

Maltese Professor Joseph Mifsud FBI Interview Notes Released….


Posted originally on The Conservative Tree House on September 2, 2020 by 

Last night the FBI interview notes (known as a “302 report”) with Maltese Professor Joseph Mifsud were released. The story of Mr. Mifsud and his discussions with former Trump campaign aid George Papadopoulos was said to be the originating seed for the FBI to investigate the Trump campaign contacts with Russia known as “Crossfire Hurricane”.

A narrative, pushed through a series of FBI leaks in 2017 outlining Mifsud as a Russian entity, was at the center of how the media justified the FBI targeting the Trump campaign for colluding with Russia. Later the special counsel used FBI conversations with Papadopoulos to claim he was less than honest about his contacts with Mifsud.

However, the actual FBI interview notes with Mifsud on February 10, 2017, show a remarkably different story.

 

[H/T Technofog Source]

As noted above the FBI interview of Mifsud was not very probing; and interestingly the agents did not ask may questions -or followups- about statements made by Mifsud.  This is particularly interesting when you recognize the claimed conversation between Mifsud and Papadopoulos about Russia hacking DNC/Clinton emails was said to be the epicenter of the entire FBI operation. “Russians having dirt on Clinton” etc.

New York Times – “In late April, at a London hotel, Mr. Mifsud told Mr. Papadopoulos that he had just learned from high-level Russian officials in Moscow that the Russians had “dirt” on Mrs. Clinton in the form of “thousands of emails,” according to court documents.”

Joseph Mifsud directly refutes any conversation about that important DNC/Clinton email factor, and in February 2017 the FBI agents did not ask a single clarifying question in that regard.  Note: this interview is happening seven months after the July 31, 2016, origination of the investigation.

The follow-up email from Mifsud (noted in the FBI interview notes) was previously provided to House Oversight and Government Reform committee, and is below:

The release of the Mifsud interview notes highlights the casual lack of importance the FBI seemed to be placing on the Russian “hacking” of the DNC or Clinton emails.  Additionally, there is absolutely no evidence the FBI considered Mifsud a “Russian asset” as outlined by former FBI Director James Comey.  Indeed the entire thing just gets more sketchy.

This FBI interview with Mifsud appears to be more of an approach at justifying a pre-existing investigation.  Perhaps best viewed as a ‘going-through-the-paces’ approach to defend the thin gruel pretense for the Trump surveillance of the prior year.

The FBI based the legality and justification of their Trump campaign investigation on a rumor of a conversation shared by Australian Ambassador Alexander Downer as he recalled George Papadopoulos referencing this contact with Mifsud.  The information from Downer came through unofficial channels connected to the State Department and was passed along to the FBI.

From the casual lack of inquiry it appears s the FBI interviewers knew the origination story was very thin and did not want to add aspects that would undermine the original justification.  Instead, they eventually handed the entire mess over to the special counsel where Andrew Weissmann and crew used these thin threads to piece together a fabrication that would advance the political opposition to President Trump.

Our own research has noted the Weissmann special counsel operation was actually far more corrupt than the original FBI and DOJ effort that preceded it.  Overall the Trump-Russia investigation was one long fraudulent investigative continuum, with multiple attack angles; however, it was the special counsel that took it to new levels of fraud, manipulation and purposeful narrative assembly.

An insurance policy against President Trump.

 

Sep 1 2020

Parksville & Qualicum Beach in BC, Canada Outlaw COVID Restrictions


Armstrong Economics Blog/Canada

Re-Posted Sep 1, 2020 by Martin Armstrong

COMMENT: In a historic act of direct democracy last night, the Oceanside Common Law Assembly (OCLA) passed a Public Safety Bylaw that prohibits COVID restrictions and mandatory distancing, masking, quarantines, and vaccinations anywhere in the communities of Parksville and Qualicum Beach on Canada’s west coast.

As of today, anyone who tries to impose COVID regulations on the people of these communities can face fines and imprisonments by OCLA and its Common Law Court.

Citing International law, the Assembly Bylaw states that these COVID regulations “are unlawful, unwarranted and medically unsound measures that threaten and assault the fundamental liberties, health and security of the people of our community …Therefore it is ordered that no-one is obligated to consent to or comply with any of these regulations … and anyone is free to actively resist and disobey such regulations and measures by any means necessary without fear of legal consequence.”

The Bylaw concludes by accusing anyone who tries to impose COVID regulations on the community as being part of a criminal conspiracy and threatens them with “penalties and imprisonment upon conviction by the Common Law Court of Parksville … All police authorities are expected and compelled by law to enforce this Bylaw or be charged with obstructing justice and democratic process.”

RB

REPLY: This is good news. I believe that Trump will start to expose this after the election. Dr. Scott Atlas, a member of the White House coronavirus task force, has also come out and said that hydroxychloroquine has become a political issue rather than a medical one. We really do have to stand up to this tyranny for as I have said before, I have met some of these key players and they are clearly trying to take over the world to force change to their agenda.

The real dangerous position here is that they overthrow Trump and then set in motion this entire New Socialist Green Order. I am concerned that if Trump wins the election, they will then try to assassinate him by 2022. These people are on a global mission and they will not rest until the subjugate the entire world. This will only lead to war. They will not be able to subjugate the world. Gates is obsessed with Global Warming and overpopulation.

Sep 1 2020

Who is Taking the Beijing Bribes?…


Posted originally on the Conservative Tree House on August 31, 2020 by 

ODNI John Ratcliffe made an interesting, frightening & stunningly open direct statement yesterday when he described intelligence evidence that China is putting on a full-court press against governors and local officials to retain their influence campaign in 2020.

Essentially what DNI Ratcliffe described boils down to Beijing threatening economic blackmail against U.S. officials who were comfortable being reliant on local Chinese investment and purchases of U.S. companies, assents and interests.

With that stark statement in mind; and keeping the full national security ramifications in the forefront; it is worth remembering a foreboding speech given by Secretary of State Mike Pompeo in February.

This is specifically important now against the backdrop of how some U.S. politicians appear to be reacting to the COVID-19 challenges, perhaps even weaponizing the virus to achieve political objectives; and with a perspective toward the way media outlets, some businesses and many politicians appear to be influenced by China. The background context for this speech takes on an entirely new dimension.

Pompeo’s remarks were made to the National Governors Association (NGA) Feb 8, 2020; and there’s an interesting segment where Pompeo reveals his awareness of a list of U.S. governors compiled by China’s communist party; and their alignment with China’s interests. A transcript of the key excerpt from his speech is provided. WATCH:

 

.

[Transcript at 01:45] […] “Last year, I received an invitation to an event that promised to be, quote, “an occasion for exclusive deal-making.” It said, quote, “the opportunities for mutually beneficial economic development between China and our individual states [are] tremendous,” end of quote.”

“Deal-making sounds like it might have come from President Trump, but the invitation was actually from a former governor.

I was being invited to the U.S.-China Governors’ Collaboration Summit.

It was an event co-hosted by the National Governors Association and something called the Chinese People’s Association For Friendship and Foreign Countries. Sounds pretty harmless.

What the invitation did not say is that the group – the group I just mentioned – is the public face of the Chinese Communist Party’s official foreign influence agency, the United Front Work Department.

Now, I was lucky. I was familiar with that organization from my time as the director of the Central Intelligence Agency.

But it got me thinking.

How many of you made the link between that group and Chinese Communist Party officials?

What if you made a new friend while you were at that event?

What if your new friend asked you for introductions to other politically connected and powerful people?

What if your new friend offered to invest big money in your state, perhaps in your pension, in industries sensitive to our national security?

These aren’t hypotheticals. These scenarios are all too true, and they impact American foreign policy significantly.

Indeed, last year, a Chinese Government-backed think tank in Beijing produced a report that assessed all 50 of America’s governors on their attitudes towards China. They labeled each of you “friendly,” “hardline,” or “ambiguous.”

I’ll let you decide where you think you belong. Someone in China already has. Many of you, indeed, in that report are referenced by name.

So here’s the lesson: The lesson is that competition with China is not just a federal issue. It’s why I wanted to be here today, Governor Hogan. It’s happening in your states with consequences for our foreign policy, for the citizens that reside in your states, and indeed, for each of you.

And, in fact, whether you are viewed by the CCP as friendly or hardline, know that it’s working you, know that it’s working the team around you.

Competition with China is happening inside of your state, and it affects our capacity to perform America’s vital national security functions.” (Keep Reading)

At the time of the speech it certainly seemed like Secretary Pompeo and President Trump understood a list of China-friendly governors…. and this was at the very beginning of the COVID influence over the U.S. economy and 2020 election.

Remember, “There are trillions at stake”…

Axios had an article earlier this year which included the Chinese Communist Party Report [Cloud pdf Here] that Secretary Pompeo was describing in February.

When we originally shared the information CTH specifically noted the importance of watching how and when each of these governors responded to their economy when contrast against the COVID-19 narrative.

Specifically, and anticipating the value of COVID as a leftist weapon to achieve their political objectives, we asked: “will there be a correlation to how the states respond that is directly related to their CCP alignment?

It appears we have enough evidence to say yes, there is a connection.  Review the list(s) yourself and make your own decision.

Truth has no agenda.

~ Directly Related Link ~

 

…Once you see the strings on the marionettes (politicians), you can never return to the time when you did not see them…

Aug 31 2020

FOX News Is Starting to Get It?


Armstrong Economics Blog/Disease

Re-Posted Aug 31, 2020 by Martin Armstrong
Aug 29 2020

IMPORTANT, The Bloom is Off The Ruse – Tom Donohue and U.S. Chamber of Commerce Announce Support for Far-Left Democrats (AND CHINA) in 2020!


Posted originally on The Conservative Tree House on August 28, 2020 by 

A fifteen year argument is finally over…. We win.  Most CTH readers probably don’t even remember the reason for the name: “The Last Refuge” upon this little corner of the internet.  However, for well over a decade we have tried to share the truth behind the financial mechanisms that run Washington DC; and the primary machine has always been a completely corrupt, deceptive and anti-American U.S. Chamber of Commerce.

Against the entirety of the conservative media; and against the entirety of every organized group that ever attended CPAC; this website has attempted to educate people about the genuinely fraudulent purposes of the U.S. CoC and their President Tom Donohue.  I have written hundreds of articles over the years outlining “there are trillions at stake” and the elements of importance behind that statement.   Every single mainstream conservative voice has denied the truth; and likely most of them are probably on the CoC payroll.

Every former administration took massive payments from the CoC and allowed the Chamber to write trade agreements language for decades.  The CoC business model was to take payments from Wall Street multinationals and then write the agreements to their benefit.  Politicians were paid to keep quiet and support the CoC.  The chamber is the largest lobby organization in DC.  The chamber spends more money on influence than any other lobbying group by a massive amount.  The CoC is at the heart of DC corruption.

President Trump knew about the CoC business model; that’s why he never allowed them a seat at the ‘America First’ table.  That was the original source of our support for candidate Donald Trump.  And now, after a decade of our trying to highlight the CoC scheme and the reason for it; yesterday, the U.S. Chamber dropped their pretense and admitted they were now supporting democrats because the CoC effort can only succeed by destroying Main St.

WASHINGTON DC – The U.S. Chamber of Commerce is poised to endorse nearly two dozen freshmen House Democrats for reelection, triggering a revolt within the right-leaning organization and drawing fierce push-back from the group’s powerful GOP donors.

 

The decision represents a sharp departure for the traditionally conservative Chamber, which has spent over $100 million backing Republican candidates during the past decade, and it threatens to further complicate the party’s prospects in the November election while driving a split in the business community.

Chamber leaders — including President Suzanne Clark, Chief Executive Officer Tom Donohue and Executive Vice President Neil Bradley — have been pushing the proposal ahead of a Thursday committee vote to finalize a slate of 2020 endorsements.

But the group’s donors and members are up in arms, with some threatening to pull funding and others openly venting their frustration. Some are raising the prospect that Chamber board members will quit in the weeks to come.

[…] The internal fight is just the latest headache for the Chamber, which for decades was regarded as a giant in the lobbying world. The group has recently generated headlines for its frosty relationship with the White House and alleged lavish spending on private jets.

The clash also provides a window into a growing rift in the business community over its place in the Donald Trump-dominated Republican Party, which has at times embraced policies the corporate world opposes. While the Chamber has almost exclusively endorsed Republicans over the past decade, it has collided with the president over everything from tariffs to immigration. (read more)

The CoC was never a “right wing organization”, nor was it a “republican organization”; it was always a multinational globalist organization structured to support Wall Street and destroy Main Street.  It was always a feature, not a flaw…. but no-one would believe it.

Well, now… believe it.

Tom Donohue and Suzanne Clark – U.S. Chamber of Commerce

If you understand the basic elements behind the new dimension in American economics, you already understand how three decades of DC legislative and regulatory policy was structured to benefit Wall Street and not Main Street. The intentional shift in monetary  policy is what created the distance between two entirely divergent economic engines.

REMEMBER […] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

Investments, and the bets therein, needed to expand outside of the USA. hence, globalist investing.

However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.

As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.

When Main Street was purchasing the legislative influence the outcomes were -generally speaking- beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.

When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global”. Global financial interests, multinational investment interests -and corporations therein- became the primary filter through which the DC legislative outcomes were considered.

There is a natural disconnect. (more)

As an outcome of national monetary policy blending commercial banking with institutional investment banking something happened on Wall Street that few understand. If we take the time to understand what happened we can understand why the Stock Market grew and what risks exist today as trade policy is reversed to benefit Main Street.

President Trump and Treasury Secretary Mnuchin have already begun assembling and delivering a new banking system.

Instead of attempting to put Glass-Stegal regulations back into massive banking systems, the Trump administration created a parallel financial system of less-regulated small commercial banks, credit unions and traditional lenders who can operate to the benefit of Main Street without the burdensome regulation of the mega-banks and multinationals. This really is one of the more brilliant solutions to work around a uniquely American economic problem.

[You saw direct evidence of this at work with the Paycheck Protection Program (PPP) in the COVID rescue package.  Small and medium lenders were responsive to Main Street and the large institutional (Big Bank) lenders were not.]

♦ When U.S. banks were allowed to merge their investment divisions with their commercial banking operations (the removal of Glass Stegal) something changed on Wall Street.

Companies who are evaluated based on their financial results, profits and losses, remained in their traditional role as traded stocks on the U.S. Stock Market and were evaluated accordingly. However, over time investment instruments -which are secondary to actual company results- created a sub-set within Wall Street that detached from actual bottom line company results.

The resulting secondary financial market system was essentially ‘investment markets’. Both ordinary company stocks and the investment market stocks operate on the same stock exchanges. But the underlying valuation is tied to entirely different metrics.

Financial products were developed (as investment instruments) that are essentially wagers or bets on the outcomes of actual companies traded on Wall Street. Those bets/wagers form the hedge markets and are [essentially] people trading on expectations of performance. The “derivatives market” is the ‘betting system’.

♦Ford Motor Company (only chosen as a commonly known entity) has a stock valuation based on their actual company performance in the market of manufacturing and consumer purchasing of their product. However, there can be thousands of financial instruments wagering on the actual outcome of their performance.

There are two initial bets on these outcomes that form the basis for Hedge-fund activity. Bet ‘A’ that Ford hits a profit number, or bet ‘B’ that they don’t. There are financial instruments created to place each wager. [The wagers form the derivatives] But it doesn’t stop there.

Additionally, more financial products are created that bet on the outcomes of the A/B bets. A secondary financial product might find two sides betting on both A outcome and B outcome.

Party C bets the “A” bet is accurate, and party D bets against the A bet. Party E bets the “B” bet is accurate, and party F bets against the B. If it stopped there we would only have six total participants. But it doesn’t stop there, it goes on and on and on…

The outcome of the bets forms the basis for the tenuous investment markets. The important part to understand is that the investment funds are not necessarily attached to the original company stock, they are now attached to the outcome of bet(s). Hence an inherent disconnect is created.

Subsequently, if the actual stock doesn’t meet it’s expected P-n-L outcome (if the company actually doesn’t do well), and if the financial investment was betting against the outcome, the value of the investment actually goes up. The company performance and the investment bets on the outcome of that performance are two entirely different aspects of the stock market. [Hence two metrics.]

♦Understanding the disconnect between an actual company on the stock market, and the bets for and against that company stock, helps to understand what can happen when fiscal and monetary policy is geared toward the underlying company (Main Street MAGAnomics), and not toward the bets therein (Investment Class).

The U.S. stock markets’ overall value can increase with Main Street policy, and yet the investment class can simultaneously decrease in value even though the company(ies) in the stock market is/are doing better. This detachment is critical to understand because the ‘real economy’ is based on the company, the ‘paper economy’ is based on the financial investment instruments betting on the company.

Trillions can be lost in investment instruments, and yet the overall stock market -as valued by company operations/profits- can increase.

Conversely, there are now classes of companies on the U.S. stock exchange that never make a dime in profit, yet the value of the company increases. This dynamic is possible because the financial investment bets are not connected to the bottom line profit. (Examples include Tesla Motors, Amazon and a host of internet stocks like Facebook and Twitter.) It is this investment group of companies that stands to lose the most if/when the underlying system of betting on them stops or slows.

Specifically due to most recent U.S. fiscal policy, modern multinational banks, including all of the investment products therein, are more closely attached to this investment system on Wall Street. It stands to reason they are at greater risk of financial losses overall with a shift in fiscal policy.

That financial and economic risk is the basic reason behind Trump and Mnuchin putting a protective, secondary and parallel, banking system in place for Main Street.

Big multinational banks can suffer big losses from their investments, and yet the Main Street economy can continue growing, and have access to capital, uninterrupted.

Bottom Line: U.S. companies who have actual connection to a growing U.S. economy can succeed; based on the advantages of the new economic environment and MAGA policy, specifically in the areas of manufacturing, trade and the ancillary benefactors.

Meanwhile U.S. investment assets (multinational investment portfolios) that are disconnected from the actual results of those benefiting U.S. companies, and as a consequence also disconnected from the U.S. economic expansion, can simultaneously drop in value even though the U.S. economy is thriving.

Aug 24 2020

Climate Alarmists’ Fraud Exposed


Armstong Economics Blog/Climate

Re-Posted Oct 20, 2019 by Martin Armstrong

 

Aug 24 2020

We All Act in Our Self-Interest


Armstrong Economics Blog/Basic Concepts

RePosted Aug 24, 2020 by Martin Armstrong

COMMENT: IS MARTIN ARMSTRONG AND SOCRATES THE MOST HUMANE BEINGS ON THE PLANET?
Dear Martin and Socrates,
I have been following you two for many years, often with a byrds eye view. What happens here on earth is in conformity with never failing cosmic laws. Things MUST happen even if we don’t like it. Dark,evil times must come wherefrom good prosperous times can emerge and thus push evolution forward – only to be followed by darker times and then even better and more prosperous times than before that, and so it goes on and on in never ending, never failing cycles. Understanding this can make us live WITH inescapable, inevitable changes we must face, not AGAINST them.
Socrates is telling us what has happened and he tells us what will happen so we can act accordingly, even giving precise dates. Never a harsh word, never favoring anyone, never keeping secrets to himself he just informs us. He’s there for everybody: traders, dealers, bankers, real estaters, climatists, farmers, governments, ordinary folks for whatever reason.
He is a guiding beacon. His motives are only for the best of mankind. He speaks nothing but the truth. This is very thoughtful and kind. Isn’t this the most humane one can do?
Of course Socrates is nothing without his maker. What has been said above is about Martin Armstrong. He is the beacon. He is the one who is thoughtful and kind. He must care immensly for next door neighbor and humankind. (Isn’t this the greatest of all commands?)
A very humane human indeed!
Thank you, guys!
TA

REPLY: Thank you very much for your comment. Keep in mind that we all act out of our own self-interest. We are all in this together. Many people see this as evil. But by acting in our own self-interest, we make the entire system work.

The famous speech that “Greed is Good” delivered by Michael Douglas in “Wall Street” has a lot of truth to it, for it is not just greed with respect to money. Greed to make money is also the mother of all invention. Communism failed because it removed all creation from the individual and centralized that in government, which is removed from the people. Watch the movie “Mr. Jones.” Stalin’s communism failed. They went from a productive society to collapse. To hide that truth, he stole the food from Ukraine and killed more than 7 million people. Stalin’s self-interest was to cover-up the failure of Communism. Countless people died to pretend communism worked.

My personal self-interest is the desire to live in peace and to have a nice future for my family. What I do, I am compelled to do. It is not for money, or I would be selling advertising on the sites or go back to funds management. I have been fortunate enough not to need the money, and that has given me the freedom to explore what I envisioned. This is what governments cannot do despite believing they are all-powerful. They cannot use imagination to create something new since they have no actual mind.

Consequently, we are always confronted by the left, which insists upon controlling everything. In the process, they destroy the best of humanity — our imagination and creativity. They pursue unrealistic goals that always denigrate human individuality. This is why I do not see how a one-world government is even feasible because no matter what body of people you bring together, there is always a division who sees the glass half-full or half-empty. This is what drives the left mad. They demand conformity.

What motivates me, I would say, boils down to two aspects. First, my desire for freedom and to be left alone. Second, I have witnessed the markets do not move on actual fundamental news as much as they move on perception and anticipation. It was the lack of news that led to the 1987 Crash when nobody could understand what was happening and wild rumors emerged that Europe was invaded by Russia to rumors that the president was shot with a bullet dipped in poison. It was simply capital flows, and people feared the dollar would fall another 40%.

 

I have always been interested in Artificial Intelligence and have witnessed countless times how governments make decisions without researching if those actions have been successful in the past. I wanted to create Socrates to offer us guidance that was totally unbiased and would provide a road map for the future. Perhaps if we listened to such a system, we would not be creating madness and chaos, which will only lead to the inevitable crash. We cannot alter the cycles, but I believe we can help smooth out the extreme moves and seek a new age of better management for all. This is in my self-interest, for my family and their future, long after I am gone.

Aug 24 2020

Are Gates & Schwab Committing Crimes Against Humanity?


Armstrong Economics Blog/Rule of Law

Re-Posted Aug 24, 2020 by Martin Armstrong


Crimes Against Humanity

Gates can try to call everyone against him just conspiracy nuts but has been conducting medical experiments around the world which are all documented. A medical experiment on the whole population is outrageous. All of his policies from social-distancing, whether intentional or not, are having serious impacts upon society.

The Nuremberg Code

1. The voluntary consent of the human subject is absolutely essential.

2. The experiment should be such as to yield fruitful results for the good of society, unprocurable by other methods or means of study, and not random and unnecessary in nature.

3. The experiment should be so designed and based on the results of animal experimentation and a knowledge of the natural history of the disease or other problem under study that the anticipated results will justify the performance of the experiment.

4. The experiment should be so conducted as to avoid all unnecessary physical and mental suffering and injury.

5. No experiment should be conducted where there is an a priori reason to believe that death or disabling injury will occur; except, perhaps, in those experiments where the experimental physicians also serve as subjects.

6. The degree of risk to be taken should never exceed that determined by the humanitarian importance of the problem to be solved by the experiment.

7. Proper preparations should be made and adequate facilities provided to protect the experimental subject against even remote possibilities of injury, disability, or death.

8. The experiment should be conducted only by scientifically qualified persons. The highest degree of skill and care should be required through all stages of the experiment of those who conduct or engage in the experiment.

9. During the course of the experiment the human subject should be at liberty to bring the experiment to an end if he has reached the physical or mental state where continuation of the experiment seems to him to be impossible.

10. During the course of the experiment the scientist in charge must be prepared to terminate the experiment at any stage, if he has probable cause to believe, in the exercise of the good faith, superior skill, and careful judgment required of him, that a continuation of the experiment is likely to result in injury, disability, or death to the experimental subject.

The Nuremberg Code is the most important document in the history of the ethics of medical research. The Code was formulated in August 1947, in Nuremberg, Germany. What is clear is no journalist will dare ask them any questions whatsoever to would call any of this into question. They have wiped out about 33% of the world economy and intend to do even further as Gates told the Economist this nonsense pandemic will now take millions of lives and not stop before the end of 2021 when they look to achieve their Green New Deal.