President Trump Signs 2018 FISA Authorization With Changes…


President Trump announced that he has reauthorized FISA-702 with changes in the law provided by Intelligence Committee Chairman Devin Nunes.  President Trump notes: “This is not the same FISA law that was so wrongly abused during the election”.

House Permanent Select Committee on Intelligence Chairman Devin Nunes today issued the following statement after President Trump signed into law the FISA Amendments Reauthorization Act:

“This bill reauthorizes a crucial anti-terrorism tool—with increased privacy protections—that helps track foreign terrorists and thwart attacks on Americans. Additionally, the President had already ordered a fix to problems in unmasking procedures, which should give Americans confidence that the Intelligence Community will use this authority to defend Americans’ safety and security while fully respecting their privacy rights.”  (LINK)

Representative Matt Gaetz Discusses #ReleaseTheMemo : “Laws Were Broken”…


Representative Matt Gaetz appears on Fox News mid-day to discuss the House Intelligence Committee memo on the DOJ/FBI FISA abuse and surrounding issues:

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The reason for the Intelligence Committee memo by Chairman Devin Nunes is simple. The underlying documentary evidence is extremely classified. By presenting a ‘less classified’ summary of content Nunes is setting the stage for political opposition to question the memo validity. If Democrats attack the four-page memo, Chairman Nunes then requests the House Speaker to declassify all of the underlying evidence.

This approach breaks out of the Compartmented Intelligence box that Chairman Nunes was in back in March 2017 –SEE HERE– It is a smart and well thought-out strategy. If Democrats are going to dismiss the summary memo, then they should certainly support exposing the underlying evidence the memo was built upon. See how that works?

Batting Order:

  • First-up:  Devin Nunes (Chairman Intel Committee, Full I/C Oversight)
  • Second:  Chuck Grassley (Chairman Senate Judiciary – DOJ/FBI Oversight)
  • Third: Bob Goodlatte (Chairman House Judiciary – DOJ Oversight)
  • Clean-up:  Michael Horowitz (DOJ Inspector General)

Understand More HERE

The Humanitarian Hoax of Common Core: Killing America With Kindness – hoax 19


by Linda Goudsmit
January 14, 2018

The Humanitarian Hoax is a deliberate and deceitful tactic of presenting a destructive policy as altruistic. The humanitarian huckster presents himself as a compassionate advocate when in fact he is the disguised enemy.

Obama, the humanitarian huckster-in-chief, weakened the United States for eight years presenting his crippling Common Core advocacy as altruistic when in fact it was designed for destruction. His legacy, the Leftist Democrat Party with its “Resistance” movement, is the party of the Humanitarian Hoax attempting to destroy the capitalist infrastructure of American democracy and replace it with socialism.

Common Core is a deliberate information war targeting American children. It is a deceitful campaign to undermine established American Judeo-Christian cultural norms celebrating patriotism, the meritocracy, and American sovereignty. The Leftist/Islamist axis is promoting collectivism in preparation for one-world government. This is how it works.

Serious educational reform enacted by the No Child Left Behind Act (NCLB) of 2001 was designed to provide high standards and measurable goals to improve individual outcomes in education. Federal funding was correlated to test performance. Rather than improving education the net effect of NCLB was education reformatted to teach to the tests. Education critic Alfie Kohn argued that the “NCLB law is ‘unredeemable’ and should be scrapped – its main effect has been to sentence poor children to an endless regimen of test-preparation drills.” There were loud calls for reform.

Enter Common Core State Standards (CCSS) launched under Obama in 2009 deceptively marketed by a propaganda campaign emphasizing the positive benefits of national standards and uniformity in curriculum guidelines with measurable effectiveness for American public education K-12. Common Core State Standards (CCSS) are mistakenly understood to be a derivative of the No Child Left Behind Act – they aren’t.

Obama’s 2009 Race To The Top program was introduced as a competitive grant program that awarded points to states for satisfying performance-based evaluations of teachers and principals based on measures of educator effectiveness. Sound familiar? It should because measurable effectiveness = student test scores. Even though Race to the Top did not mandate adoption of Common Core, to receive federal stimulus money states had to “commit” to adopting Common Core standards. Forty-two states now operate public and private education under the Common Core program.

So, what makes Common Core a humanitarian hoax? Let’s review.

Common Core Standards Mission Statement:

“The Common Core State Standards provide a consistent, clear understanding of what students are expected to learn, so teachers and parents know what they need to do to help them. The standards are designed to be robust and relevant to the real world, reflecting the knowledge and skills that our young people need for success in college and careers. With American students fully prepared for the future, our communities will be best positioned to compete successfully in the global economy. . . These Standards do not dictate curriculum or teach methods.”

Sounds great. The problem is the deceptive language referring to the “real world” the “global economy” and the misleading statement that the Standards do not dictate curriculum or teaching methods. This is how it works.

Common Core State Standards are not a derivative of America’s No Child Left Behind. Common Core State Standards are a derivative of the United Nation’s Global Education First initiative (GEFI). The 3 Priorities of GEFI are:

Priority 1: Put Every Child in School

Priority 2: Improve the Quality of Learning

Priority 3: Foster Global Citizenship

It is Priority #3 that is most problematic and the basis for the humanitarian hoax of Common Core.

Obama’s Common Core is not teaching American children about the world and how to be effective and competitive in a global marketplace. Obama’s deceitful Common Core initiative is propagandizing American children toward collectivism, globalism, and one-world government with its anti-American, anti-Judeo-Christian, pro-Islamic bias. American public/private education no longer advocates American patriotism, the meritocracy, American exceptionalism, or American sovereignty. America is no longer in control of American education. This is how it happened.

Obama’s infamous Cairo speech launched an eight-year initiative to Connect All Schools that was fraudulently presented as a program to help different people who believe different things be able to communicate and understand one another.

Bethany Blankley’s stunning 4/2015 article exposes Obama’s Common Core as “originating from the One World Education concept, a global goal orchestrated by the Connect All Schools program to globalize instruction. Its origin is funded by the Qatar Foundation International (QFI). The director of QFI’s Research Center for Islamic Legislation and Ethics is Tariq Ramadan, grandson of Muslim Brotherhood founder, Hassan al-Banna.”

World Net Daily WND reported that in 2011 Qatar Foundation International “partnered with the Department of State and the U.S. Department of Education to facilitate matchmaking between classrooms in the U.S. and international schools through. . . the ‘Connect All Schools’ project.” QFI proudly states on its website that the initiative was founded in response to Mr. Obama’s 2009 Cairo speech with the Muslim Brotherhood prominently seated in the front row.

The conspiracy of the Leftist/Islamist axis to re-educate American children away from America-first patriotism toward global governance and Islam is well underway and well funded.

Qatari Foundation International unapologetically states its mission of advancing global citizenship through educational curricula on its Q&A page:

Why is your global presence limited to a select few countries?

While QFI’s mission is dedicated to connecting cultures and advancing global citizenship through education, our current focus is K-12 public and charter schools in the United States, Canada, and Brazil. To find out if a school near you is a QFI partner, see our map to find other resources that may help your child learn Arabic, visit Al Masdar.

Most parents have no idea what their children are learning in school unless their child asks for help with homework or relates an experience at school. Parents in any of the 42 states that have adopted Common Core State Standards need to start reading their children’s textbooks immediately. It is up to parents to decide if they support American sovereignty and fair trade in the global marketplace or if they support global citizenship and a globalized curriculum promoting one-world government. It is a matter of informed consent.

This brings us to the United Nations Agenda 21 initiated in 1992 and described in a lengthy report titled United Nations Sustainable Development. The entire document can be summarized in one sentence:

The United Nations Agenda 21 is a plan for a New World Order that internationalizes the entire world into a global society under its own UN global governance for our own good of course. Its lofty Preamble reads like the lyrics of John Lennon’s song “Imagine.” In the old days power grabbers for world domination were not so soft spoken. Hitler, Stalin, and Mussolini did not sing lullabies of peace – but this is the 21st century and requires a different approach. We have “Imagine” and the updated 2030 Agenda for Sustainable Development.

The Culture War is an insidious information war being waged on America through the political correctness, moral relativism, and historical revisionism embodied in the informational materials supplied by the pro-globalism enemies of national sovereignty at the UN. Stealth jihad is quietly being fought in classrooms with the educational propaganda of the World Core Curriculum – not with bullets or airplanes.

In 1989 the United Nations Educational, Scientific and Cultural Organization (UNESCO) awarded its prize for peace education to the father of global education and creator of the World Core Curriculum (WCC) Robert Muller. He accepted his award saying, “I dream that UNESCO will study and recommend by the year 2000 a world core curriculum for adoption by all nations.”

Why is a world core curriculum desirable? Most people understand the mission of the United Nations to be promotion of mutual respect and understanding between sovereign nations with differing cultures. Were we mistaken or mislead? Was the goal of the UN always universal citizenship? Muller says, “In the final analysis… the main function of education is to make children happy, fulfilled, and universal human beings.” Universal human beings?? Really?

In November, 2010 Obama’s Secretary of Education Arne Duncan addressed UNESCO praising universal education without ever mentioning educational content. Educating the world’s children is a laudable goal. Putting every child in school and improving the quality of learning is an altruistic undertaking. The problem is that most people naively assume universal education advances literacy and do not realize it is a propaganda tool designed to advance global governance. It is a humanitarian hoax.

In a world of technology where hard copy books are increasingly being replaced with software and lessons taught on computers it is incredibly simple to alter, censor, and manipulate original texts. Having the world’s children literate and able to read about the world to better understand other cultures and live together in peace is not the same thing as having the children of the world literate to be propagandized by manipulated curriculum content.

There are 193 member states in the United Nations and only 86 are full-fledged democracies. The G77 has 134 members (69% of member states) and functions to advance the economic well-being of the Third World. It should surprise no one that UN educational objectives are in conflict with traditional American educational objectives.

Curriculum content for American educational materials must be developed by Americans for Americans with an unapologetic America-first foundation. Parents endorsing the Common Core State Standards are unwittingly endorsing the pro-Muslim anti-American globalized educational products designed by British publishing giant Pearson Education. Pearson Education supplies educational materials to Connect All Schools.

When the UK froze Muammar Gaddafi’s assets in 2011 The Sovereign Fund of Libya had a 3.27% stake in Pearson. Libya was the second largest shareholder in Pearson Education. CAIR, designated a terrorist organization by the United Arab Emirates, was also an investor. The anti-American, anti-Semitic, pro-Muslim Pearson educational products must not be allowed to propagandize American students.

Words matter. It is essential that Americans understand what one-world government global citizenship means in the Arab world. To Qatar and the Islamic world it means the re-establishment of the Islamic caliphate that rules the world under religious Islamic sharia law. It is equally important for Americans to understand what one-world government means to the secular globalist elite.

Secular one-world government was described in chilling detail 65 years ago by English aristocrat Lord Bertrand Russell in his alarming book, The Impact of Science on Society. Neither the secular nor the religious version of one-world government is the fulfillment of John Lennon’s iconic song “Imagine.” Both are regressive returns to feudal infrastructures consisting of the few ruling masters, the mass of ruled slaves, and an army of soldiers to enforce the pyramid. Both see the United Nations as the instrument for imposition and management of their own version of global governance.

If American parents do not become actively involved in discovering what their children are learning in school they will be unable to oppose the radical education initiative currently transforming the children of the world into “green” or “global citizens” prepared for the New World Order. The humanitarian hoax of Common Core will successfully propagandize American children to reject American citizenship and become citizens of a world dictated and governed by the United Nations. Ignorance is not bliss and willful blindness is not a position of strength – it is submission.

Representative Ron DeSantis Discusses Intel Committee FISA Memo and DOJ-FBI Corruption…


Representative Ron DeSantis appears on Fox and Friends to discuss the four page intelligence committee FISA memo and outlined corruption within the DOJ and FBI.

•House Intelligence Chairman Devin Nunes is focused on the FISA abuse; and overall abuse from the larger intelligence community (FBI, CIA, ODNI and NSA). The FISA-702 angle is his leverage to reveal it.

•Senate Judiciary Chairman Chuck Grassley is focused on the Dossier fraud; and the overall DOJ and FBI corruption. The Steele Dossier is his leverage to reveal it.

•House Judiciary Chairman Bob Goodlatte is focused on the FBI and DOJ corruption; and his leverage is the Office of Inspector General, Michael Horowitz, and the year-long IG investigation that just began turning over 1.2 million pages of investigative documents.

It is not accidental that Ron DeSantis has asked Speaker Ryan to declassify everything…. only a week before Devin Nunes announces his request for the full house to see everything declassified and without redaction. These are Big Ugly cannon shots into the heart of deception.  The summary of the classified FISA-702 abuse, and the subsequent unmasking therein, lies at the heart of the strategy to use a four-page summary memo to inform the public of the historic issues.

OMB Director Mick Mulvaney Press Briefing on Schumer-Shutdown


Office of Management and Budget Director Mick Mulvaney holds a press briefing to discuss the upcoming government funding lapse – aka. ‘The Schumer Shutdown”, that well, doesn’t actually shut anything down…

The Evidence Inside The “House Intel Committee Four Page FISA Memo”…


To understand the Four Page House Intelligence Memo at the heart of today’s FISA Abuse stories, it helps to understand why the memo is needed.  We wrote about the issue in a March 2017 outline called: “The Nunes Paradox”  – SEE HERE

As the year-long story has unfolded, there are two central components at the heart of the political corruption and weaponization of the DOJ and FBI:

♦First, corruption within the DOJ and FBI that included their use of unlawful use of FISA-702 exploits; and ♦Second, how that intelligence information was extracted, passed along to those outside government, repackaged, and reconstituted into the “Steele Dossier”.  The finished, albeit sketchy, intelligence was later returned to the FBI to request lawful FISA court surveillance authority. It is a circle of “intelligence laundering”.

The DOJ (National Security Division), and FBI (Counterintelligence Division), worked together on the enterprise. This collaboration is where the insider “small group” participants assemble, intersect and ultimately redistribute themselves into the Mueller investigation with the help of Mueller’s adviser, FBI Chief Legal Counsel James Baker.

The evidence of this corrupt DOJ and FBI weaponization of intelligence is what lies inside today’s Four Page Intelligence Committee Memo.

The Players, “Insiders”:

DOJ side: Asst. Attorney General Sally Yates, Asst. AG Head of National Security Division John P Carlin; Deputy Attorney Bruce Ohr; and legal liaison between Main Justice and FBI, Attorney Lisa Page.

FBI side: FBI Director Jim Comey; Asst. FBI Director Andrew McCabe; Director of Counterintelligence W.H. “Bill Priestap”; FBI Chief Legal Counsel James Baker; and lead FBI Counterintelligence Agent Peter Strzok.

Outsiders (The Dossier Crew):

Fusion GPS co-founder Glenn Simpson; the wife of Simpson, Mary B. Jacoby; a hired private contractor, familiar with CIA operations, Nellie Ohr (also wife of DOJ team insider Bruce Ohr); contracted former British MI6 Agent and head of Russia House, Christopher Steele (also attributed authorship of ‘Dossier’).

♦The basic enterprise is pretty straightforward albeit corrupt as hell. During a period of November 2015 through April 18th 2016, Justice Department political insiders and outside political contractors, including Fusion-GPS, accessed the NSA and FBI database using FISA-702(17) “About Queries”. They gathered information on candidate Hillary Clinton’s political opposition including Donald Trump campaign officials and affiliates.

This was essentially deep state political opposition research being conducted inside government for a considerable period of time. The information, gathered on Clinton’s political opposition, was then weaponized against the candidacy of Donald Trump.

After being instructed by NSA Director Mike Rogers to conduct a full FISA audit, the NSA compliance officer began querying DOJ and FBI activity. As the compliance investigation closed in on the operation, FBI officials grew nervous. Eventually contractor access to ongoing FISA intelligence was blocked effective April 18th, 2016.

We discover this activity from testimony given by Director Rogers, and from Director of National Intelligence Dan Coats releasing a partially redacted FISC ruling in April 2017.

The FISC ruling details the events throughout 2016. When the full story is finally out, I think many people will understand why DNI Dan Coats made the unprecedented decision to release the court documents. The deliberate 2017 FISC transparency appears to have been part of a well developed anti-corruption strategy leading us all the way to today.

In the April 2017 ruling, the FISA Court (FISC) noted there was no reason to doubt the November 2015 through April 2016 “compliance error rate” was less severe than previous compliance error rates going back to 2012 (pg 82); in essence, the abuse of FISA searches by FBI contractors was systemic over multiple years:

The unlawfully obtained FISA intelligence information appears to end up at a central collection unit, Fusion GPS. There are many participating members within Fusion; however, the key figures in this specific enterprise are husband and wife Glenn Simpson and Mary Jacoby. Mary Jacoby’s relationship with the Clintons’ goes all the way back to the Rose Law Firm. Mary Jacoby also brings the “Dossier Trail” to the White House.

Fusion-GPS had been pushing a Russian-centric narrative for several months prior to being hired by Hillary Clinton, via her law firm Perkins Coie, in April of 2016.

After being shut out by the FISA Compliance Audit, and contracted by the Clinton campaign, Fusion needed a back-door to access continued information.  That’s where Nellie Ohr comes in.  Fusion hired Russian expert and CIA network ally Nellie Ohr, the wife of DOJ deputy Bruce Ohr.  Nellie, a part of the CIA network, could use Bruce’s high level DOJ-NSD access to continue gathering FISA-702 data; and Nellie, Bruce and Glenn have collaborated on similar projects in the past.  [SEE PAGE #30]

All research indicates that Nellie Ohr then loosely contextualized the extracted data into a draft or written narrative/story-line that painted a false story of loose connections between candidate Donald Trump and Russian entities.

Ms. Ohr’s transcripts then get passed along to another Fusion contractor, Christopher Steele; a retired MI6 agent who was also head of the intelligence gathering unit in the U.K. known as The ‘Russia House’. Presumably the Fusion intelligence hand-off to Steele was to give the Ohr transcript some independent Chris Steele intelligence bona fides.

After an undetermined amount of back-and-forth transcript editing and memo assemblies, the joint collaboration between Fusion’s Nellie Ohr and Christopher Steele appears to have become the “Trump-Russia Steele Dossier”. [There are several key indications within the finished Dossier that show Chris Steele did not author much of the content.]

Additionally, if you directly follow all media reporting on the dossier’s construct and origin, you’ll note the finished product was exclusively the assembled and proprietary work of Fusion-GPS, NOT Christopher Steele.

Even John McCain had to get his copy from Glenn Simpson at Fusion-GPS, despite McCain’s intermediary, David Kramer, meeting with Steele in England to discuss the content. Glenn Simpson and Fusion-GPS are also facing numerous lawsuits as it relates to the content of the dossier. Christopher Steele is refusing to answer questions except in court. The goal of gaining intelligence credibility for the dossier was a one-way street.

As Hillary Clinton and U.S. media now attempt to distance themselves from the Dossier, they cannot escape the fact that Clinton hired Glenn Simpson (Fusion-GPS) and ultimately they created the Dossier.

In short, Hillary Clinton cannot claim be hoodwinked by Russian disinformation within a document that she created. Hence, Clinton has a dossier problem, and it will not go away.

However, that said, Senate Judiciary Chairman Chuck Grassley completely predicted that “hoodwinked by the Russians” would be the fall-back position by Clinton and the FBI/DOJ insider team as it relates to their connection to the dossier content.

Accordingly, Senator Grassley and Senator Lindsey Graham sent the FBI a referral for criminal prosecution of Christopher Steele based on statements from FBI agents who attributed statements to Steele; those second-hand accounts conflict with known evidence about the dossier content. –SEE HERE– Grassley is calling the FBI’s bluff and demanding they investigate the horrible British fibber while knowing the fibber isn’t Steele – it’s the FBI.

♦ Because the scale of the Fusion/FBI/DOJ collusion story is so large in its overall impact, the congressional and Trump administration White Hats are conducting a three-pronged attack on the conspiracy teams.

They are working in concert:

(L-R) Bob Goodlatte, Chuck Grassley, Devin Nunes

•House Intelligence Chairman Devin Nunes is focused on the FISA abuse; and overall abuse from the larger intelligence community (FBI, CIA, ODNI and NSA). The FISA-702 angle is his leverage to reveal it.

•Senate Judiciary Chairman Chuck Grassley is focused on the Dossier fraud; and the overall DOJ and FBI corruption. The Steele Dossier is his leverage to reveal it.

•House Judiciary Chairman Bob Goodlatte is focused on the FBI and DOJ corruption; and his leverage is the Office of Inspector General, Michael Horowitz, and the year-long IG investigation that just turned over 1.2 million pages of investigative documents.

Nunes, Grassley and Goodlatte are working in concert, each with a specific attack strategy that targets the larger swamp defense. This week they began the three-pronged attack we call “THE BIG UGLY“.

The Big Ugly is the wrecking ball that will shatter the front line swamp defenses and allow the draining to begin. The plan for this strategy was developed almost a year ago after Nunes realized how the compartmented intelligence would be used to block sunlight.

ODNI Dan Coats, the man who declassified the original FISA court opinion, NSA Director Mike Rogers, CIA Director Mike Pompeo, FBI Director Christopher Wray, Attorney General Jeff Sessions, Inspector General Michael Horowitz and Asst. AG Rod Rosenstein have each played a significant role in preparing the landscape and armory for this conflict.

Congressional allies like Jim Jordan and Ron DeSantis will be working toward messaging and clearing the fog from the media.

It is not accidental that Ron DeSantis has asked Speaker Ryan to declassify everything…. only a week before Devin Nunes announces his request for the full house to see everything declassified and without redaction. These are Big Ugly cannon shots into the heart of deception.  The summary of the classified FISA-702 abuse, and the subsequent unmasking therein, lies at the heart of the strategy to use a four-page summary memo to inform the public of the historic issues.

Chairman Devin Nunes, Chairman Chuck Grassley and Chairman Bob Goodlatte are now in position to use all the information provided by: Dan Coats (FISA), Mike Rogers (FISA), Michael Horowitz (DOJ IG report); and Rosenstein (DOJ/FBI reports); while leaving clean hands for FBI Christopher Wray and DOJ Jeff Sessions to watch from the hilltops and prepare to rebuild the entire justice department in the aftermath.

Additionally, guardian intelligence hero, NSA Mike Rogers is retiring; that will now allow him the ability to speak without restraint before any committee or hearing. Chairman Bob Goodlatte is not running for re-election; cleaning up the DOJ will be his legacy initiative.

RESOURCES:  – The BIG UGLY

IG Stimulated Releases of Information:

♦Release #1 was the FBI Agent Strzok and Attorney Lisa Page story; and the repercussions from discovering their politically motivated bias in the 2015/2016 Clinton email investigation and 2016/2017 Russian Election investigation.

♦Release #2 outlined the depth of FBI Agent Strzok and FBI Attorney Page’s specific history in the 2016 investigation into Hillary Clinton to include the changing of the wording [“grossly negligent” to “extremely careless”] of the probe outcome delivered by FBI Director James Comey.

♦Release #3 was the information about DOJ Deputy Bruce Ohr being in contact with Fusion GPS at the same time as the FISA application was submitted and granted by the FISA court; which authorized surveillance and wiretapping of candidate Donald Trump; that release also attached Bruce Ohr and Agent Strzok directly to the Steele Dossier.

♦Release #4 was information that Deputy Bruce Ohr’s wife, Nellie Ohr, was an actual contract employee of Fusion GPS, and was hired by F-GPS specifically to work on opposition research against candidate Donald Trump. Both Bruce Ohr and Nellie Ohr are attached to the origin of the Christopher Steele Russian Dossier.

♦Release #5 was the specific communication between FBI Agent Strzok and FBI Attorney Page. The 10,000 text messages that included evidence of them both meeting with Asst. FBI Director Andrew McCabe to discuss the “insurance policy” against candidate Donald Trump in August of 2016.

FISA Abuse – Sean Hannity Interviews Jim Jordan, Matt Gaetz and Sara Carter…


Fox News host Sean Hannity interviews Representative Jim Jordan, Representative Matt Gaetz, and the most recently hired Fox News contributor, Sara Carter, about the latest developments in the Obama Administration’s FISA-702 surveillance scandal.

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CTH would strongly warn everyone that only a few select “kitchen counsel” congressional members are fully briefed on the intelligence community ‘rollout plan’ of information surrounding one of the biggest political scandals in history.

There are voices like Sara Carter and Dan Bongino who are rushing to the motive behind the story and playing directly into the hands of the Swamp Dwellers who use professional obfuscation (the Potomac two-step) to avoid accountability.

Don’t rush this story, and try to ignore any media voices who are pushing toward rushing this story. By willful design, or by incompetence, getting too far out on this story will only play into the hands of the black hat swamp dwellers behind the scenes.

The story is simple.

Political operatives within the DOJ and FBI, working to help elect Hillary Clinton, conspired with political operatives outside government to spy on the 2016 campaign officials of Donald Trump. One of the tools they used was unlawful FISA-702 “queries” and surveillance. FULL STOP.

No need to go beyond that story yet.

Remember, we have the IG Horowitz evidence of a politicized DOJ and FBI coming up behind the FISA-702 surveillance story.  Be patient…. everything has a plan.

Politically Correct Trading – A Whole New Challenge


QUESTION: Martin.. I have been trading /investing for over 20 plus years.

How can one be in the markets and survive if the “biggest  Safest  Banks”  in Canada are failing even today to not only fill a trade or give you a reliable quote but even to even give you an accurate account balance!

ANSWER: This is a growing problem being caused by (1) excessive regulation and (2) the juniorization of staff. Institutions have been firing people with experience to reduce cost replacing them with entry people. This is becoming widespread throughout Europe and sets the stage for a very dangerous situation. Covertly, there is an assumption that those with experience should be removed and juniors put in place and they will not fear the crash as experienced traders and that will help eliminate short positions against the government.

On top of these issues, we then have the problem of aggressive governments trying to defend themselves forcing even institutional trading to be politically correct. If the market goes down, the regulators will begin hauling in traders for interrogation. This is an exceptionally high risk in Europe.

Politically Correct Trading

Individual non-Americans can open accounts in the USA. Americans are turned away overseas. So for the individual, you do have to be concerned especially about dealing in Europe. The more any government interferes with the free markets, the greater the risk that your funds will be frozen and you will not be able to trade. It just may come down to having once again to trade “politically correct” to avoid being targeted.

I am currently working on coding my synthetic correlation model I use to use in the Middle East back in the 1980s. The problem then was rather different. We were advising one Islamic Bank where the board made the decision to open in Turkey. However, the currency was in a perpetual decline. This is the chart from the materials handed out for the 1985 World Economic Conference. The problem back then was the lack of any market to hedge the Turkish Lira. We had to create a synthetic model correlation cyclically to tackle the hedging project we were given. That was one of the most interesting projects of my career – hedging something that did not trade.

We are bringing this model back into play because there are rising concerns among our European clients that if they hedge against the decline of the Euro and government bonds in the EU when the collapse unfolds, they will be targeted for undermining the government. The way to avoid this and be “politically correct” traders, is to once again create synthetics correlated with time.

With the hostility in Europe eliminating the ability to short government bonds in a pathetic attempt to prevent the collapse of the EU bond market, it is paramount that we resurrect our synthetic models in order to be “politically correct” in trading what will no doubt turn into a witch-hunt once again.

I wrote in the Greatest Bull Market in History in the 1930 chapter, that the witch-hunts began subtly. One of the first targets was a young trader named John Pope.

One such early victim was a young broker named John W. Pope who was only 32 at the time. He reportedly had been a soft-spoken chap, quite independent, and a student of values. He firmly believed that stocks always sought their values up or down. In 1930, John was accused of forcing Fox Films down, as it was alleged that if he had not been short the stock would not have plummeted as far down. The New York Stock Exchange summoned the young fellow before their board of governors. They interrogated him in a way that Time magazine called a “harrowing trial by statistics.”[1] John W. Pope pulled out his charts and his studies of Fox Films and demonstrated that the stock had been seriously overvalued in comparison to historical measurements. The board found no malicious reports of rumors started by Pope, and his documentation as to why Fox Films had been overvalued won the day. He was completely exonerated, but this would be a dangerous trend that eventually led to the witch hunts of the 1930s.

[1] “Business: Trial by Statistics” Time (New York, NY) Dec. 22, 1930.

The founder of that company, William Fox, was summoned to the US Senate. They failed to show he was short against his own company. Never satisfied that government could ever be wrong, they then prosecuted Fox for tax evasion on a single transaction out of thousands. I explained in the Greatest Bull Market in History:

The bear-hunt continued … Gray [Prosecutor] summoned William Fox, once the proud owner of Fox Films. William Fox, upon his arrival in Washington, became ill. Fox’s doctor claimed he had an attack and stated that he believed Fox had diabetes.  But Gray, depraved, perverse and suspicious a person as he was, held true to his character. Gray simply wouldn’t believe him. Gray hired a physician to check Mr. Fox’s condition with orders to report directly to Mr. Gray. When that doctor also reported that William Fox was seriously ill, Gray still refused to believe it and then hired a third doctor ordering him to check the condition of this Mr. Fox. All three doctors agreed that Fox was very ill.

Gray still scoffed at the situation and proceeded with his case against Fox without his being present to raise his defense. Gray charged Fox had “wrecked” his former companies through stock market activity. He revealed countless details of his stock transactions right down to how much his daughter had owned. But all the evidence which Gray had compiled did not show Fox as a bear-raider but as a dead and battered bull. Gray was still not satisfied. Gray uncovered what he called a fraud. Gray accused Fox on one transaction out of several thousands of willful fraud again while Fox was still confined to his bed. Fox had dealt in the name of his company as well as in his personal name from time to time. Gray charged that on one transaction Fox had deducted a loss incurred in the market which he claimed the company had originally paid for.

The Committee naturally flaunted this in the face of the press and then announced that they were turning Mr. Fox over to the IRS. Mr. Gray took much pleasure in announcing publicly that “the recovery of evaded income tax will offset the expense (of the proceedings) 100 times,” as they voted to continue the investigation despite having failed to turn up the illustrious bear who had supposedly destroyed the market and perpetrated the Depression upon the entire world.

Cryptocurrency & the Race for Money


QUESTION: You have talked about bitcoin and are rightly skeptical as we all should be, yet creative destruction rolls on. What insights do you have to share about the Dapps and Ethereum? In reading your blog for several years now you have truly opened many peoples minds. Thank you for your insight!

KS

ANSWER: If you want to trade Bitcoin, use the futures. The futures market will bring stability to the price and open the door for hedging what is otherwise at times an illiquid market. Understand one thing. This is all part of the shift from Public to Private. Cryptocurrencies are marketed as some magic money that will be free of the fiat world of government. That is total nonsense for governments will by no means allow that to happen. Nevertheless,  this is part of the same anti-government movement that brought Trump to the White House, BREXIT, Catalonia uprising, Ukraine revolution and so on. This is the rise in the stock market and the shift of capital from government bonds to equities. This will all end in a monetary crisis event perhaps as soon as 2021.

Keep in mind that Coinbase had to give up everyone’s name to the IRS and they sent out notices warning people they better claim their profits because the IRS will be looking to audit anyone trying to hide their gains from taxes. The technology of Bitcoin is inferior to other currencies. I believe in the end, we are moving toward electronic money but the governments will control it. This idea that somehow it is safer because it is outside the central banks is really nonsense. So is gold, commodities, real estate, and shares. There is a huge void with respect to counterparty risk in the cryptocurrency world and the fees to use this stuff are outrageous. I do not see this as a viable situation moving forward in time. It also requires a power grid. Take that out and you have nothing. The good old tangible things will always survive. If society collapsed, electronic money in all forms may not survive. Also remember that today only about 4% of all transactions take place in paper money. We already live in an electronic monetary system.

The Hunt for Taxes Brings Down Governments Every Time



COMMENT: Mr. Armstrong; I live in Germany. I wanted to send my father €200 for Christmas. I had to prove where the money came from. It does seem as if there is a major gap between those trading the euro for big banks and the people. I left Romania for freedom. Everything that I fled from has seemed to follow me to the West. Those who cheer the rise of the euro seem oblivious to the reality on the street. We have no real government in place here since nobody won a majority. The clash between freedom and oppression is playing out in silence. I fear this will just explode all of a sudden as it did behind the Iron Curtain.

PB

REPLY: You are not alone. I have several Russian, Hungarian, and Ukrainian friends who all express the same concerns. The fact that you fled to freedom and then see the very aspects of government that made you flee in the first place have taken hold in the West is all part of the cycle. This is simply how Empires, Nations, and Citystates collapse. They are always the same – a constant search for more power to retain their control. Then it all snaps. That comes typically when a government can no longer feed its own workforce to keep the people in check.

Revolt of the Heraclii 608-610 AD of Carthage

Emperor Phocas (602-610) persecuted the Aristocrats (rich) seeking taxation causing capital to go into hiding and the VELOCITY of money to decline. His reign did more than any other to begin the process of a significant decline of the Byzantine Empire. His tyrannical treatment of wealth led to a rebellion that began in North Africa by the exarch of Carthage, Heraclius in 608AD, who had been a leading and respected general under the previous emperor Maurice Tiberius (582–602).

This tax rebellion that began in Carthage, spread throughout the provinces. The funds were thereby raised to put together a considerable effort under Heraclius and his son. This major effort gathered a massive fleet that sailed toward the capital Constantinople. When they reached Constantinople, the gates were opened and Phocas was handed over. He was promptly executed being abandoned, and his statue he had constructed in the Hippodrome was now publicly burned. The young Heraclius was crowned by the Patriarch and began a new dynasty as Heraclius (610-641AD). His father did NOT assume the role of co-emperor showing his motives were to simply save his nation.

What most people do not know about history is the fall of government typically comes from tax rebellions. Michael IV the Paplagonian (1034-1041AD) raised taxes excessively setting in motion the collapse in VELOCITY of money once again as people hoarded their wealth creating the essential element to the destruction of an economy as you see in Europe today. Once capital begins to hoard and hide from the government tax collectors, the beginning of the end appears. In the case of Byzantium, this was set in motion by a tax hike and aggressive tax collection. The Slav population of the Balkans rebelled against the taxation. Michael IV himself was present to put down the tax rebellion oppressing the people and pillaging what they had.

The heavy taxation had also contributed to the demise of the small landowner. Thus, the higher the tax rates, the less production took place. The Empire had begun a vicious downward economic spiral that was not understood. Isaac I, Comnenus (1057-1059) embarked on a mission to strengthen the Byzantine Empire. His fatal mistake was one of finances. The treasury was depleted. The gold coinage had been debased, and the high taxation did nothing but send the economy into a downward spiral. Unable to tax the people, they began to run out of precious metal. Isaac I now did what so many other rulers had done before him; i.e. Napoleon, Henry VIII, and all Communists. He confiscated Church property with no other option. The Patriarch protested, and Isaac had him arrested and put on trial on trumped up charges of heresy. The Patriarch died before judgment or trial, yet the people were so outraged, Isaac I was forced to abdicate and go to a monastery.

What people do not credit is the Muslim conquest of Byzantium with the fact that they had the support of most Jews and many Christians. Why? The Muslim government eliminated the abusive taxation of the Byzantine Empire that was plagued with tax rebellions all the time. The Jewish revolt against Heraclius was part of the Byzantine–Sasanian War of 602–628. This was the final attempt by Jews to gain autonomy in the Land of Israel prior to modern times.