The Outage at the Federal Reserve


Armstrong Economics Blog/Central Banks Re-Posted Feb 27, 2021 by Martin Armstrong

The outage of the National Settlement Service and the Fedwire Securities Service, which provides issuance, settlement, and transfer services for Treasuries and other government securities, was down and this has caused some concern and then conspiracy theories mixed in. The Fed made progress reversing the shutdown within a couple of hours, however, this has illustrated that a long-term outage of the Fed’s online services could cause intense chaos across the world financial system, preventing banks and businesses from finalizing transactions and impeding basic banking functions.

The Federal Reserve said an outage of its key financial services on Wednesday was caused by a maintenance mistake and it is taking steps to prevent a recurrence. The official statement read:

“The incident was caused by an operational error involving an automated data center maintenance process that was inadvertently triggered during business hours,” a Fed spokeswoman said. Such tasks are normally performed after-hours, she said, adding, “This was human error.”

“Our technical teams have determined that the cause is a Federal Reserve operational error,” the Fed said on Wednesday on its website. “The Federal Reserve Banks have taken steps to help ensure the resilience of the Fedwire and NSS applications, including recovery to the point of failure.”

There was no power-outage so it does appear that the Federal Reserve was honestly calling it a disruption due to an ‘operational error’. This raises the issue of concern surrounding digital currency. Indeed, solar flares and other solarmass ejections that travel through space can overwhelm Earth’s atmosphere and generate powerful electric and magnetic fields. These magnetic storms can occasionally be intense enough to disrupt the operation of high-voltage electricity lines. A digital currency system could be brought to its knees with an EM attack.

(see report)

We do have an EMP Task Force on National and Homeland Security which issued a report on China’s ability to conduct an Electromagnetic Pulse attack on the United States. China now has super-EMP weapons and could engage in a first-strike attack that could blackout the entire country. China could actually launch a surprise “Pearl Harbor” type attack that could produce a deadly blackout of the entire country. Indeed, China has built a network of satellites, high-speed missiles, and super-electromagnetic pulse weapons that could meltdown the electric power grid, fry critical communications, and even takeout the ability of our aircraft carrier groups to respond. All of this is possible today using EMP weapons rather than nuclear.

The outage at the Federal Reserve was not an attack, loss of power, or anything nefarious. It was indeed a human error. Nonetheless, this outage even for a few hours brought the economy to a halt. This is the system used by U.S. banks to execute some $3 trillion in transactions daily and the outage began around 11.15 am Eastern time on Wednesday, and remained down for more than three hours. Most of the key systems, including the backbone settlement services Fedwire and FedACH, were back online by 3 pm. Fedwire is the system for large transfers between banks which last year handled 184 million transactions totaling more than $840 trillion, or more than $3.3 trillion daily, according to Fed data.

Other affected systems included FedACH, the clearinghouse which generally handles smaller transactions such as paychecks, tax refunds, and utility bill payments. The National Settlement Service (NSS), used by depository institutions with Federal Reserve Bank master accounts, was also shutdown offline. Every other transaction service maintained by the Fed was also affected by the disruptions.

Fedwire Funds is the premier electronic funds-transfer service that banks, businesses, and government agencies rely on for mission-critical, same-day transactions. On a monthly basis, Fedwire handles more than 835,000 transactions a day on average, with a daily average dollar volume of $3.4 trillion.

CHIPS, a private-sector alternative to Fedwire run by The Clearing House, continued to operate normally. ET. CHIPS handles about $1.5 trillion a day, according to its website.

Is Biden Back in the Basement?


Armstrong Economics Blog/Politics Re-Posted Feb 27, 2021 by Martin Armstrong

Joe Biden appears to be the first president to skip doing a State of the Union Address which is typically done by the end of February by tradition. However, it is not uncommon that a president skips the State of the Union Address during the year in which they were inaugurated. Both Washington and John Adams delivered the address but Thomas Jefferson abandoned that practice in 1801, in favor of a written message. It was about 100 years later that the message was delivered by a speech before Congress by President Woodrow Wilson in 1913. That was an important year for it was not just the creation of the Federal Reserve, but also the Income Tax.

Since Franklin D. Roosevelt’s speech in 1934, the annual speech has become a tradition. Before 1934, it used to be more of a year-end speech delivered in December. However, the President would also take office in March rather than January. The 20th Amendment changed the opening time for congress moving the speech to January/February. Pelosi will forever be remembered as the only Speaker of the House to tear up Trump’s State of the Union Address, which was probably the most disrespectful treatment of the office of the president by anyone in history.

The Constitution requires the president to provide an update on the country. It does not specify any precise timing. What normally happens is the House and Senate set the date for the joint session of Congress. What has everyone concerned about is that in fact, Joe Biden said in January that it would be forthcoming. Then White House Press Secretary Jen Psaki said on Feb. 16 that Biden’s first appearance before a joint session “was never planned to be in February.” This has led to rumors that he is back in the basement with bouts of dementia since Psaki is clearly trying to revise history. This is only made more plausible when members of the Democratic Party ask for Biden to relinquish his codes to launch nuclear weapons. That in itself raises serious questions about Biden and now no State of the Union after he said he would.

It certainly appears that if there was EVER a need for a State of the Union it is now. The Democrats have so divided the country and the Capitol is still surrounded by Pelosi’s Wall. Of course, we are back to the Swamp and it is already clear that Jen Psaki is just a spin-artist. When it came to Cuomo, she simply said: “The president has been consistent in his position.” She added: “When a person comes forward, they deserve to be treated with dignity and respect. Their voice should be heard and not silenced.”

Arizona Judge Rules State Senate Can Review 2.1 Million Maricopa County Ballots


Posted originally on the conservative tree house on February 26, 2021 by Sundance

Judge Timothy J Thomason has ruled the Maricopa, Arizona, board of elections must turn over 2.1 million ballots to the republican state senate so they can be reviewed for any election issues. [direct pdf of ruling here]

ARIZONA – The five-member Board of Supervisors argued that the ballots were secret, that the Legislature had no right to access them and that the subpoenas issued by Senate President Karen Fann were for an illegitimate purpose, among other arguments.

The Senate’s lawyers contended that the constitution gives the Legislature the role of maintaining the purity of elections and make sure voter integrity is protected, that the subpoenas were legal and a proper use of legislative power.

In his ruling, Thomason agreed with the Senate on all those arguments, saying the subpoenas “are legal and enforceable.”

“There is no question that the Senators have the power to issue legislative subpoenas,” Thomason wrote. “The Subpoenas comply with the statutory requirements for legislative subpoenas. The Senate also has broad constitutional power to oversee elections.

“The Arizona legislature clearly has the power to investigate and examine election reform matters,” the ruling says. “The Subpoenas also do not violate separation of powers principles. Production of the subpoenaed materials would not violate confidentiality laws.” (read more)

The Arizona Senate released the following statement:

U.S. Attorney John Durham Announces His Departure from Office, No Details of Special Counsel Role Continuing


Posted originally on the conservative tree house on February 26, 2021 by Sundance

An announcement today from the U.S. District of Connecticut John Durham is a little perplexing.  According to the announcement USAO John Durham is resigning from office effective February 28.   However, there is no information about his prior appointment as special counsel to review the DOJ and FBI conduct in the Trump investigation.

Here’s the announcement:

After serving as the United States Attorney for the District of Connecticut for more than three years, and as a federal prosecutor in Connecticut for more than 38 years, John H. Durham today announced his resignation from the U.S. Attorney’s Office, effective at midnight on February 28.

“My career has been as fulfilling as I could ever have imagined when I graduated from law school way back in 1975,” said U.S. Attorney Durham.  “Much of that fulfillment has come from all the people with whom I’ve been blessed to share this workplace, and in our partner law enforcement agencies.  My love and respect for this Office and the vitally important work done here have never diminished.  It has been a tremendous honor to serve as U.S. Attorney, and as a career prosecutor before that, and I will sorely miss it.”

Prior to his appointment as an interim U.S. Attorney in November 2017 and subsequently as the presidentially appointed U.S. Attorney in February 2018, Mr. Durham served as an Assistant U.S. Attorney in various positions in the District of Connecticut for 35 years, prosecuting complex organized crime, violent crime, public corruption and financial fraud matters.  From 1978 to 1982, he served as an Assistant State’s Attorney in the New Haven State’s Attorney’s Office, and from 1977 to 1978, he served as a Deputy Assistant State’s Attorney in the Office of the Chief State’s Attorney.

First Assistant U.S. Attorney Leonard C Boyle will serve as Acting U.S. Attorney upon Mr. Durham’s departure.

“The Office will be in the extraordinarily capable hands of Len and our superb supervisory team who, together, guarantee that the proper administration of justice will continue uninterrupted in our District.”

Mr. Boyle has served as First Assistant U.S. Attorney since June 2018, when he returned to the U.S. Attorney’s Office after serving as Deputy Chief State’s Attorney in Connecticut for approximately nine years.  He previously served in the U.S. Attorney’s Office from 1986 to 1998, and from 1999 to 2004.

Mr. Boyle is the 53rd U.S. Attorney for the District of Connecticut, an office that was established in 1789.

The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation.  The Office is composed of approximately 68 Assistant U.S. Attorneys and approximately 54 staff members at offices in New Haven, Hartford and Bridgeport.  (LINK)

Former U.S. Attorney General Bill Barr appointed John Durham as a special counsel on October 19, 2020, and did not tell anyone until after the November election. [LINK]

On December 1, 2020, the Attorney General notified congress in a letter:

However, here’s the issue… under DOJ regulations [28 cfr 600]  a special counsel must come from “outside government“; so did John Durham resign his position prior to the appointment, or has Bill Barr just given the appearance of a special counsel appointment while knowing the legal validity of it will collapse upon challenge?

§ 600.3 Qualifications of the Special Counsel.

“(a) An individual named as Special Counsel shall be a lawyer with a reputation for integrity and impartial decisionmaking, and with appropriate experience to ensure both that the investigation will be conducted ably, expeditiously and thoroughly, and that investigative and prosecutorial decisions will be supported by an informed understanding of the criminal law and Department of Justice policies. The Special Counsel shall be selected from outside the United States Government. Special Counsels shall agree that their responsibilities as Special Counsel shall take first precedence in their professional lives, and that it may be necessary to devote their full time to the investigation, depending on its complexity and the stage of the investigation.” (link)

Obviously Bill Barr is not stupid, he would know the regulations he cites would require the special counsel to come from “outside the U.S. government”, so what gives?

Did Durham resign to fulfill the statutory requirements of the special counsel?  Was everything prior to now just the review and investigative phase, and now that decisions must be made Durham needs to be “outside the United States Government”?

Or is this all just an optical pantomime and the entire Durham investigation is concluded with nothing coming from it?

The appointment:

Boxed In Biden


Re-Posted from GrrrGraphics.com FEB 25, 2021 AT 9:38 AM

Biden puts kids in cages, but not in schools

Biden repeatedly attacked Trump for putting children of illegal aliens into ‘cages’ near the southern border—all in the name of national security. Kamala pushed this further by saying Trump was putting ‘babies’ in cages and how horrific it was. The always hyperbolic Alexandria Ocasio-Cortez ramped it up further and stated that immigrants in camps on the southern border were being “brutalized with dehumanizing conditions and dying!” She then went on to call them concentration camps.

The Democrats’ attacks implied Trump was a racist who had no regard for the lives of innocent children. And babies. How dare he separate them from parents?

What Biden and the Democrats didn’t mention that it was Obama who built those cages. Now the Biden regime is actually defending putting kids in cages after they reopened. Only now they are softening the language and calling them ‘facilities.’

Ocasio-Cortez is still angry, but not nearly as vitriolic about the camps as she was when Trump was in charge. She stopped short of labeling Biden a racist, but she released a very fierce and furiously worded statement: “This is not OK.” Wow. That no doubt got Dementia Joe’s full attention!

They hypocrisy of Biden, the Democrats, and especially AOC is on full display.

—GrrrTeam

Cuomo Exemplifies the Downfall of the United States


Armstrong Economics Blog/Politics Re-Posted Feb 26, 2021 by Martin Armstrong

COMMENT: Marty, you haven’t mentioned Cuomo. Any particular reason?

GJ

ANSWER: No. It is just another example of how everything has simply collapsed. If he were a Republican and his secretary accused him of sexual harassment, he would have been charged and hauled into court. Because he is a Democrat, he gets to walk on water. Finally, other groups are calling for an investigation of the allegation of sexual harassment, but not until the nursing home crisis has surfaced.

Cuomo has refused to accept any responsibility for the sexual harassment or the nursing home crisis. His handling of the nursing home deaths is outrageous. CNN calls for the resignation of Republicans, but NEVER a Democrat. His brother Chris Cuomo, called for the resignation of a Republican but was silent on his own brother. Governor Cuomo even threatened Democrat Ron Kim for calling for his resignation over the nursing home scandal saying: “You will be destroyed.” Cuomo has claimed this is all just politics and he is not guilty of anything. Cuomo is just a nasty guy, How people in New York even vote for this guy is amazing. What does that say about New York?

Cuomo’s own aid said nursing homes are never prosecuted in New York. Now the FBI has been forced to claim they are investigating Cuomo, but you can bet that the Biden Administration will exonerate him. We are in a downward spiral where everything that the United States once stood for is no more. You have De Blasio in New York steering the vaccinations to Manhattan in direct contradiction of his equality for all. Then you have Biden signing disaster relief in Texas only for Democratic strongholds.

What we are witnessing is the decline and fall of the United States. The corruption in mainstream media and politics has undermined everything upon which the United States was founded. Even the rule of law no longer exists. The Judiciary Act of 1925 handing discretion to the Supreme Court undermined everything.

The decisions of Chief Justice Roberts will go down in history alongside those of Justice Taney who wrote the Dred Scot decision and set in motion the American Civil War. His duplicity will be remembered throughout history for how can you swear an oath to uphold the constitution and then add when I feel like it. His refusal to take the Pennsylvania case allows officials to change the rules in an election at any time unconstitutionally even when it goes against what the legislature passed.  He has undermined the entire election process in the United States from here on out. There is simply no guaranteed fair election even possible. His anti-Trump bias has been reflected in his decisions and his preference to maintain the Swamp has been unbelievable. Legally, the Pennsylvania vote should have been vacated. A special election should have been called to retake the vote to preserve the integrity of our elections. But he feared Trump might win – OMG! He would not stand for that!

House Passes the Equality Act which Still Allows Discrimination


Armstrong Blog/Rule of Law Re-Posted Feb 26, 2021 by Martin Armstrong

The House of Representatives passed legislation that prohibits discrimination on the basis of sex, sexual orientation, and gender identity, though it faces an uncertain future in the Senate. The legislation passed on a 224-204 vote which was mostly along with a party-line vote. Three Republicans voted with all Democrats.  The bill is one of Biden’s top legislative priorities, one he wanted to be passed in his first 100 days in office. It actually amends the landmark Civil Rights Act of 1964, which had banned discrimination on the basis of race, color, religion, and national origin. It is to be expanded to include protections on the basis of sex, sexual orientation, and gender identity. It also would prohibit such discrimination in public places, on transportation, and in government-funded programs.

There are concerns that someone would be forced to hire a cross-dresser to be a hostess in a top restaurant. But noticeably absent is class discrimination. Class is omitted for that would end Marxism. Class discrimination takes place basis on a person’s social class. Interestingly, the Democrats are engaging in Class discrimination right now. It includes individual attitudes, behaviors, economic status, education status, and of course, political status. Kids are told they will never get a job without a degree – educational discrimination is used to sell college. Elon Musk upset the world when he said he would hire people without degrees if they pass his exam quite honestly because most programmers are self-taught.

Democrats, with help from the liberal media propaganda ministry, have branded any questioning of the 2020 election being “stolen” as “The Big Lie.” They have successfully tied the “Big Lie” to “Inciting Insurrection” in their second impeachment of President Trump. Now, they want to use repeating the “Big Lie” in and of itself to expel Republicans from Congress. Nancy Pelosi has been threatening to prosecute any Republicans who challenged the 2020 election results to expel them from Congress. Meanwhile, Alexandria Ocasio-Cortez wants to create lists of anyone who support Trump.

So while you cannot discriminate based upon religion, it is fair game to discriminate against anyone who is of the opposite political party or who has more money than you think they should be allowed to have. It seems that discrimination is ok as long as it has a political objective. So the answer would be the cross-dresser would be denied a job not because of how they dress, but who they voted for and that is perfectly fine?

How about we end ALL discrimination and that includes class! That might kill Marxism – OMG!

Dems Ask Biden to Surrender Sole Authority to Launch Nukes


Armstrong Economics Blog/Politics Re-Posted Feb 26, 2021 by Martin Armstrong

About three dozen House Democrats have signed a letter asking Biden to renounce his sole authority to launch nuclear weapons. This is probably even unconstitutional since it would mean the President is no longer the Commander and Chief of the military. The letter written by California Democrat Jimmy Panetta stated: “Vesting one person with this authority entails real risks.” It further said: “Past presidents have threatened to attack other countries with nuclear weapons or exhibited behavior that caused other officials to express concern about the president’s judgment.”

This is precisely on point concerning Biden’s mental abilities when he is 78 now and will be 82 by 2024. While it was a conspiracy theory to question if Biden was displaying dementia before the election, now with have the truth starting to surface from the Democratic side of the fence.

Someone From the Biden Administration Bombed Syria – White House Silent


Posted originally on the conservative tree house on February 25, 2021 by Sundance

As of approximately 8 hours after the bombing of Syria, there is no statement from the White House on their official website [SEE HERE] or from the JoeBama spokespeople.

The cognitively disconnected pretend president is being cited for authorizing the bombing.

However, there’s just as much reason to believe he thought he was ordering more jello pudding before nap-time.

The preferred narrative term “Iran-backed” is also so disengenous it is quite silly.

WASHINGTON – The US on Thursday launched an airstrike in Syria that targeted facilities used by Iran-backed militia groups — the first military action taken by the Biden administration, officials said.

The Pentagon said the strike was in retaliation for a Feb. 15 rocket attack against a US military base at Erbil International Airport in Northern Iraq that killed a US-led coalition contractor and left others wounded, including an American service member.

“I’m confident in the target that we went after, we know what we hit,” Defense Secretary Lloyd Austin told reporters after the airstrike.

“We’re confident that that target was being used by the same Shia militants that conducted the [Feb. 15] strikes,” he said.

Pentagon spokesman John Kirby said the attack “destroyed multiple facilities at a border control point used by a number of Iranian- backed militant groups.”

The groups included Kataib Hezbollah and Kataib Sayyid al-Shuhada, according to Kirby.

Kirby called the retaliation a “proportionate military response.” (read more)

….And that was the problem for the Pentagon.  President Trump was undoing the industrial war machine; and there are trillions at stake on that policy issue alone.  Now the war machinery is back to operating without civilian oversight and paying the politicians to just shut up and sit down.

It will be interesting to see how the JoeBama administration handles the questions tomorrow about the bombing of a sovereign Syria; considering their prior 2017 position below:

USA attacks Iranian Interests


Armstrong Economics Blog/War Re-Posted Feb 25, 2021 by Martin Armstrong

The United States on Thursday carried out an airstrike in Syria against a structure belonging to what it said were Iran-backed militia according to middle east sources. The confrontation between the USA and Iran is building and this can still escalate into May. Where Trump was anti-war, the military establishment is always pro-Democrat since they tend to engage in wars throughout our history, whereas it was Dick Cheney who starting the Guld War and put his former company in charge who then moved to Dubai to prevent any investigation into their actions.