Leverage in The Swamp – Mueller Reinforcing The Horsehair Holding DC’s Sword of Damocles…


Former National Security Adviser Michael Flynn releases a statement following his plea agreement with Special Counsel Robert Mueller:

It would appear, as CTH has predicted for well over a year, that Flynn brokered a deal with Robert Mueller to admit to misleading statements to the FBI in exchange for Mueller agreeing not to prosecute Flynn for his FARA (lobbying) violations.

As CTH warned in November of 2016 Flynn was involved in lobbying efforts on behalf of the Turkish government.  The financial constructs surrounding the payments to Flynn were sketchy, very sketchy.  CTH anticipated this sketchy behavior would come back to bite Flynn and -by extension- could be an issue for the White House if he took a high level position.  None of that had anything whatsoever to do with the fictitious vast Russian conspiracy story.

It is increasingly clear that Mueller used the sketchy financial arrangement between Turkey and Flynn -specifically how Flynn maneuvered the money- as the leverage in the unrelated Russian conspiracy investigation.

Giving Flynn a pass on his failure to register the arrangement under the Foreign Agents Registration Act (FARA), and the banking issues (possibly IRS trouble), gets Robert Mueller a dual benefit.

Benefit #1 – Robert Mueller gets Flynn as a notch on his political belt and; Benefit #2 simultaneously sets up a scenario where he can allow Tony Podesta et al, to skate prosecution for similar illegal and sketchy lobbying activity.

This dual benefit approach would, essentially, be an escape valve for Muller to comply with the leverage the Clinton Crime Syndicate have over him (Uranium One etc.) and protect John and Tony Podesta from criminal investigation over their illegal lobbying constructs.

No doubt Mueller would like to shake his way out from under the Clinton controlled Sword of Damocles.

Conversely, the failure of Mueller to indict the Podesta brothers becomes favorable leverage for Paul Manafort who is criminally accused of the same conduct Tony Podesta has thus far avoided.

No doubt Manafort’s legal team would contrast the politics of Mueller charging Manafort for almost identical activity Mueller is unwilling to charge Podesta of.

As we have shared from the beginning – this is all about DC politics, not judicial crimes in the same vein as everyone else would be charged.

You cannot view the current action through the transactional prism of modern judicial proceedings as they relate to you and me. These are political struggles taking place inside the venue of the legal system. The players use the legal system to game out the optics and narrative of political battles for ideological wins and losses.

In essence, this is about leverage for political use.

The 2016 election caused the balance of power to shift favorably toward political forces that are external to the DC machine, ie. President Trump and the deplorables.

The subsequent action by Robert Mueller, Democrats, the Media (writ large), and President Trump is a confrontation over political goals and objectives. The DC machine, the “swamp” per se’, is attempting to frame leverage against actions adverse to their political interest.

The Sword of Damocles is swinging, President Trump is fanning the candle flame and Robert Mueller is attempting to reinforce the horsehair.

The charging documents unsealed in the Manafort indictment are a case study in leverage and narrative exploitation. To save time, and rather than go through the entire indictment, Andrew McCarthy has a good deconstruction OUTLINED HERE.  The charging documents today against Michael Flynn represent a similar leveraged construct. Again, Andrew McCarthy has a solid outline on the issues SEE HERE.

Paul Manafort is being leveraged toward a political objective; his legal jeopardy is negligible. The documents, and the underlying charges, are intended to make life miserable for Mr. Manafort – not to end with some traditionally framed criminal consequence, ie. prison.

Likewise Michael Flynn was being leveraged toward a similar political objective; his legal jeopardy is just as minimal, but Flynn is not as well-off as Manafort, thus the plea agreement was likely driven as much by money as it was the underlying unfounded and inconsequential nature of the entire accusation to the larger issue of ‘Muh Russia‘.

Both Michael Flynn and Paul Manafort’s wealth were/are being held as leverage, compliance, toward acquiescence within the game; nothing more. Both likely end up with some charge, a financial fine good enough for media optics and perhaps -at worst- some probation for not following the FARA rules (Manafort). That’s it.

Conversely, on the other side of the political continuum, Tony and John Podesta are within the leverage process yet hold the larger political clout of the Clinton Crime Syndicate.   Like Manafort and Flynn, Tony Podesta most likely will not face legal jeopardy, if any at all, beyond a similar outcome; thanks in part to Podesta’s connection to the deeper part of the swamp where the Clinton Crime Syndicate previously held court.

In the bigger picture of the Clinton dynamic you have Robert Mueller putting that deeper part of the Deep Swamp and remaining black hat intelligence community, on notice to knock-it-off with the selling of U.S. policy toward gaining their own financial indulgences. Mueller is generally positioning himself to exhaust all of the player’s political leverage.

K-Street lobbyists, writ large, are also part of the intended recipient group of this message. There’s also a part of this dynamic where the familiar tug-of-war between Clinton camps and Obama camps are playing out within the party apparatus.

You can spot the internecine “leverage/tug-of-war” within the original Washington Post (intelligence community leak) sacrificing Clinton to protect Obama over the Fusion GPS funding; in direct connection to Tony Podesta leaving the (Clinton Matrix of Influence) Podesta Group lobbying firm.

The optical play is to create somewhat of a narrative where Podesta is to Clinton as Manafort/Flynn is to Trump.

Setting aside the Clinton leverage over Mueller for a moment, this is the magnanimous and patriotic legacy optic Robert Mueller is trying to project by playing the role of Solomon, splitting the baby and giving each political group a narrative for their purposes.

In the background Mueller also appears to want foreign policy influence sales, and the larger risk from foreign policy influence sales becoming dangerous to U.S. policy, stopped. Unfortunately, Mueller previously exposed himself to this toxic process (Uranium One) and to this day carries some of the infection with him.

Selling U.S. foreign policy for money and ideological benefit is damned dangerous. However, there are billions of dollars to be made in the process therein.

It still seems as if Robert Mueller, while compromised by his conduct in prior administrations’ who engaged in this process, is trying to position himself as The Good Shepherd and break the leverage holdings of the various political camps.

In addition to taking away all of the ‘get-out-of-jail-free’ leverage cards, this is also the theater of pure politics. Optics are everything in DC and political narratives are built from inferences as well as reality.  If President Trump has political leverage he can execute his agenda; if Pelosi/Schumer have political leverage they can block Trump’s agenda. In many ways Robert Mueller is mediating the ideological battle through the prism of his role within the system.

Again, the gamesmanship -currently being pitched through the media- is about political leverage. That leverage in DC is traded like baseball cards amid the upper tier of those who float in an entirely different orbit of influence from everyone else.

Chuck Schumer plays out his knowledge of the current situation by claiming “Trump needs to stay away from Mueller”. The media sells Schumer’s claim as if Bad Trump would impede an investigation; but that’s not the accurate dynamic.

Senator Schumer wants to keep his leverage right where it is currently; and stop ‘his side’ from feeling the effects of Mueller’s legal admonishments. If Mueller indicts Michael Flynn and Paul Manafort Pelosi/Schumer have political leverage.  If Mueller focuses on Tony Podesta Pelosi/Schumer lose political leverage.

Nothing about the current dynamic is factually encompassing President Trump; it is all about optics, narratives and political leverage. However, everything about this dynamic is factually encompassing the existential threat that outsider Trump represents to the established way of life in the DC Swamp.

Toward the end goal of disrupting DC swamp-life, Mueller and Trump appear aligned in common cause.  Robert Mueller from the perspective of trying to get the external influence agents to the U.S. stopped and retrieving all existing leverage; and President Trump from the policy perspective of America-first, which coincidentally is in alignment with Mueller’s projected patriotic goals to stop influence agents.

That’s the bigger part of the BIG picture.  Everything else is smoke and mirrors.

Again, if you drop the legal prism and review everything from the perspective of gaining or losing political leverage it all makes sense.

“Today, Michael Flynn, a former National Security Advisor at the White House for 25 days during the Trump Administration, and a former Obama administration official, entered a guilty plea to a single count of making a false statement to the FBI.

“The false statements involved mirror the false statements to White House officials which resulted in his resignation in February of this year.

Nothing about the guilty plea or the charge implicates anyone other than Mr. Flynn. The conclusion of this phase of the Special Counsel’s work demonstrates again that the Special Counsel is moving with all deliberate speed and clears the way for a prompt and reasonable conclusion.”

~ Ty Cobb,  (statement above) Attorney for President Trump

Michael Flynn Pleads Guilty to Lying To FBI – Same Misleading Statements That Got Him Fired…


Former National Security Adviser General Michael Flynn has pleaded guilty to a process crime of lying to FBI investigators about the content of a December 29th phone call with Russian Ambassador Sergei Kislyak. The conversation occurred the same day that then-president Barack Obama announced sanctions against Russia for its interference in the 2016 election.

This is the same misleading information that led to the White House firing Michael Flynn.

Special Counsel Robert Mueller has charged Flynn (full pdf below) with falsely telling FBI agents that he did not ask the ambassador “to refrain from escalating the situation” in response to the sanctions.

According to the plea, while being questioned by FBI agents on January 24, 2017, Flynn also lied when he claimed he could not recall a subsequent conversation with Kislyak, in which the ambassador told Flynn that the Putin regime had “chosen to moderate its response to those sanctions as a result of [Flynn’s] request.”

Furthermore, a week before the sanctions were imposed, Flynn had also spoken to Kislyak, asking the ambassador to delay or defeat a vote on a pending United Nations resolution. The criminal information charges that Flynn lied to the FBI by denying both that he’d made this request and that he’d spoken afterward with Kislyak about Russia’s response to it.

There was nothing wrong with the incoming national-security adviser’s having meetings with foreign counterparts or discussing such matters as the sanctions in those meetings. However, lying to the FBI is the process crime that has led to Flynn’s admissions herein:

https://www.scribd.com/embeds/366062176/content?start_page=1&view_mode=&access_key=key-QHaNTpsHk3My0BRqqECU

As Andrew McCarthy writes:

If Flynn’s conversations with the Russian ambassador had evinced the existence of a quid pro quo collusion arrangement — that the Trump administration would ease or eliminate sanctions on Russia as a payback for Russia’s cyber-espionage against the Hillary Clinton campaign and the Democratic party — it would have been completely appropriate, even urgently necessary, for the Obama Justice Department to investigate Flynn.

But if that had happened, Mueller would not be permitting Flynn to settle the case with a single count of lying to FBI agents. Instead, we would be looking at a major conspiracy indictment, and Flynn would be made to plead to far more serious offenses if he wanted a deal — cooperation in exchange for sentencing leniency. To the contrary, for all the furor, we have a small-potatoes plea in Flynn’s case — just as we did in Papadopoulos’s case.

It is becoming increasingly palpable that, whatever “collusion” means, there was no actionable, conspiratorial complicity by the Trump campaign in the Kremlin’s machinations. (read more)

 

Kate’s Wall


We’ve had ENOUGH !  Just Build It…

Deep State #2 – The Confirmation…


It is increasingly obvious from additional direct communication today, both on twitter and the speech in Missouri, that all of the necessary groundwork for the Big Ugly is in the rear view.  President Trump is now directly confronting ALL adverse interests:

From the video above, even Limbaugh sees it.  Beyond the predictable media attack narrative du jour, which auto-triggers any time POTUS Trump extends his elbows, President Trump is now driving immediate results – SEE HERE

CTH is not a seer of Donald Trump, and anyone who would claim they are should be necessarily dismissed.  President Donald Trump is the only entity who knows specifically what he’s going to do in the moments leading up to what he’s going to do; no-one else.  However, that said, CTH does have a pretty good sense of what evaluation processes Trump takes prior to action. There are now clear indications we have crossed the Rubicon.

President Trump has a plan, but President Trump is also working on instinct.

You see, ever since Donald Trump entered into politics there is a key element he needs to keep at the forefront.  To continue succeeding he needs all of his adversaries, our adversaries, to drop their masks…. And beyond that, he needs confidence that the larger U.S. electorate have clearly seen those masks fall – that’s the instinct part.

Donald Trump has done a remarkable job at drawing-out the enemy behind the wire.  No-one would argue they hold the same perspectives on the Republican apparatus, and the GOPe punditry, they previously held prior to Businessman Trump becoming Politician Trump.

As both a candidate and a president Donald Trump has exposed a jaw-dropping number of political deceivers. He’s also single-handily exposed their hidden agenda(s), and proved beyond a shadow’s doubt that Republican’s were lying about policy and principle for years.

When President Trump speaks, he’s always highlighting these issues. He is also speaking on these issues, repeatedly, to draw out the hidden truth and create a larger awakening.  It is really, really, important to see that Trump is always trying to engage that larger awakening.

Many people, myself included, have argued there’s enough other people awakened now and it was passed time to just go ahead and rip that band-aid off; quit nibbling around the edges.  Let’s call the baby ugly and get down to business…. Trump remained visible in the pounce position, yet he never twitched.

As an apex predator in the Manhattan real estate market Trump has honed his instinctual skills to detect a single drop in an ocean…. His timing is also instinctual.

War.  Bring it on.  Many of us have been awake for a long time and Donald Trump is the man we’ve been waiting for to wage all out thermonuclear war against the GOPe and the crony-corruption within the UniParty/Republican party apparatus.

There is one political enterprise within Washington DC and national politics.  There is only one enterprise.  That enterprise is the UniParty.  There is only one political party in Washington DC, with two internal caucuses – Republicans and Democrats.

Generally speaking, the “Big Ugly” is the moment when President Trump decides to rip the masks off the remnants of the Republican wing of the UniParty within Washington DC.  In many ways the “Big Ugly” is the elimination of the Republican party, and the beginning of an era when a second party, a MAGA party, actually enters the blood stream of U.S. politics and stands against the UniParty.

The defining confrontation is inevitable.  It has been inevitable since the entire GOPe apparatus, including every single GOPe candidate within the 2016 Republican primary, stood up against Donald J Trump.   Candidate Donald Trump held an entirely different series of campaign platform issues the Republican apparatus abhors.  That’s why he won, and they didn’t.

However, Since the 2016 victory, the UniParty has thrown everything they can in front of him to block any advancement of those policies and platform issues.  Every political tool in the UniParty armory, including the Deep State, has been deployed to eliminate the threat Trump represents.

‘Subtle’ as-a-brick-through-a-window, reminder:

President Trump gave them a budget that reduces a trillion in spending; the republicans in congress balked. They openly said reducing spending is not their goal. Those same republicans are now suing President Trump and trying to force the State Department to spend on USAID  and NGO’s. Those same republicans supported Omnibus spending bills. Those same republicans will not support removing ObamaCare. Those same republicans are fighting renegotiated trade deals. Those same republicans don’t support a border wall.  Those same republicans supported launching ridiculous Russian conspiracy investigations; and the list goes on, including senate republicans using a strategic maneuver to block their own President from recess appointments during their summer recess… Those same republicans are UniParty affiliates.

This is the behavior of a unified opposition, a UniParty opposition.  During the September, 2017, Arizona speech and MAGA rally, President Trump came closer than ever before to igniting the fuse on the Big Ugly…. but he stopped just short.

Now, with the failure to repeal ObamaCare clearly established; with the groundwork of President Obama’s unconstitutional DACA sitting in front of the UniParty; with Trump executing various spending restraints (State Dept and CFPB examples); and with the tax reform bill being debated;  and with NAFTA sitting there, looming, possibly being eliminated,… we see Trump has positioned the full sunlight of an awakened electorate upon the masks of the UniParty leadership.

The signs are everywhere.

We knew the Big Ugly confrontation was closer than ever; but in typical Trumpian style the actual start time was subtle and almost invisible. President Trump against a unified DC system with the U.S. electorate watching and supporting.

It’s begun.

 

Pure Political Propaganda – Narrative Engineers Try to Divide Trump and Tillerson…


Deep State Swamp Hits Back

The New York Times narrative engineers: Maggie Haberman, Peter Baker and Gardiner Harris are attempting to create division between President Trump and Secretary of State Rex Tillerson in an entirely manufactured hit piece against the Trump administration.

According to their script, which again requires “anonymous or invisible sources“, the White House is considering a replacement for Secretary of State Tillerson.

Nonsense.

Beyond the customary pro-active contingency plans, that are always in place for succession planning amid top level leadership, the narrative as being distributed is 100% pure agenda-driven horsepucky.

The media agenda here is clear.  Secretary of State Rex is methodically downsizing the State Department and reversing the current mission of the agency away from interventionist globalism, and back toward common sense foreign policy.

The position of hundreds of pontificating sanctimonious career bureaucrats are being dissolved.  The Deep State is being deconstructed and the globalists are apoplectic.

That reality has created the need for left-wing propaganda pushers like the New York Times to create narratives to defend their Deep State Swamp interests. Nothing more.

Additionally, the objective in this media endeavor is a familiar pattern; try to create a self fulfilling prophecy by creating division between the ranks of key administration officials. In these efforts the Murdoch Clan (Fox News) is in direct alignment with the Slim Clan (New York Times).

Remember, the entrenched swamp professional political embeds from the State Dept leak to CNN and the New York Times.  The Intel embeds leak to the Washington Post.

To drive the wedge between T-Rex and President Trump the NYT relies on dredging up old previously used division stories and attempt to present them as a backdrop for their renewed efforts.  THIS TOO WILL FAIL.

We noted yesterday the first indications that something was shuffling around in the shadows near the horizon.  President Trump has pushed through all attempts to destabilize his agenda advancement.

With momentum in the tax reform agenda and with economic reality of a growing economy, POTUS Trump has the aggregate political enemy on its heels. It should be obvious to political followers now how the collective DC UniParty apparatus attempts to reposition when in retreat.

The GOPe and Democrat opposition, the UniParty, utilize their familiar media engineers to push back.  That’s why we saw Marco Rubio on the FOX TeeVee last night with his Rubio/Schumer amendment (Rubio and Schumer… I mean c’mon, duh), and that also leads toward this insufferable New York Times attack approach.

It’s all connected.

The “Big Ugly” is a 360° battlespace.

Give me six lines written by the most honest man & I will find something to hang him


One of the most notorious political men who also pretended to be a man of God, was Cardinal Armand Jean du Plessis, Duke of Richelieu and Fronsac (1585–1642), who is commonly referred to as Cardinal Richelieu. Richelieu was a French nobleman and statesman who then pretended to be religious. During the 17th century, controlling the Catholic Church and using God for the political cover was the name of the game. Richelieu was consecrated as a bishop in 1607 and then was appointed Foreign Secretary of the French government in 1616. Richelieu rose through the political ranks in both the Catholic Church and the French government. By becoming a cardinal in 1622, he then became King Louis XIII’s chief minister in 1624! He remained in office until his death in 1642.

He is famous for political corruption and using the Rule of Law to create political prosecutions. He was a ruthless and cruel man who consolidated the power in France into a federalized government. He is well known for saying:

“Harshness towards individuals who flout the laws and commands of state is for the public good; no greater crime against the public interest is possible than to show leniency to those who violate it.” 

(Source: Champlain’s Dream‎ (2008) by David Hackett Fischer).

Nevertheless, Richelieu has set the standard in political prosecutions as we are witnessing by the latest corruption orchestrated by Muller and his witch hunt to anyone guilty of anything even if it had nothing to do with Russia interfering with the US elections. Richelieu also said this line which should be the real motto of the US Department of Justice:

“If you give me six lines written by the hand of the most honest of men, I will find something in them which will hang him.”

(Source: The Cyclopedia of Practical Quotations (1896) by Jehiel K̀eeler Hoyt, p. 763 : some dispute this quote)

Evidence of International Trade from the 12th Century


Some Archaeologists in France with the National Center for Scientific Research announced that they have unearthed a hoard of 2,200 silver deniers and oboles, 21 Islamic gold dinars, a very impressive gold signet ring from the Abbey of Cluny, located in Saône-et-Loire, reported by Mining. While they have claimed this is the largest hoard and seem confused as to why there were 21 Islamic gold dinars, their lack of knowledge of the world monetary system has been exposed by their claims.

The gold dinars were minted between 1121 and 1131 under the reign of Ali ibn Yusuf (1106–1143). There was no gold coins issue by Europeans until the 13th century. The gold dinars were replacing the Byzantine coinage, which was being debased going into the Great Monetary Crisis of 1092. The dominant coinage to replace Byzantine was that of the rising Islamic empire.

Further proof that Islamic dinars were replacing Byzantine coinage in world trade is the rare issue of Offa, who was a king in Mercia, England (757-796). It was Offa who reestablished the silver coinage in Europe coming out of the Drak Age. He struck this coin copying the Islamic writing with no real understanding what it even said. He then inscribes his name “OFFA REX” (king Offa) as a statement of power. However, the mere fact he is imitating the Islamic dinar demonstrates it acceptance in international trade as early as the 8th century.

While the archaeologists seem astonished to find gold Islamic dinars in France, they obviously lack the knowledge of the monetary system. Part of the Dark Age was driven by superstition. Bathing fell out of practice because a Roman bathhouse began to imply a brothel so it became un-Godly to bathe. Being able to use charts and maps was the work of the devil. Captains of a ship were usually Jewish who had no religious problem with such instruments.

The Arabs controlled the seas and as such trade. Therefore, we find Islamic gold dinars throughout Europe as evidence of world trade. They are rare since most had nothing to really trade. Nevertheless, a hoard with 21 gold dinars reflects someone of wealth and engaged in international trade.

Soros Throws in the Towel


COMMENT: Marty; You have beaten Soros. Don’t know if you have seen this, but they now report “George Soros finishes his crash bets against the US stock market. The investor legend seems to have lost its way and acts with little fortune. Now he has to reveal himself.”

PC

REPLY: Interesting. Soros became famous with the bet against the pound. But let’s make this very clear. That was a “riskless” trade betting against the break of a peg. If you are wrong, the peg holds and you get your money back. If you are right, you make a fortune. Everyone was betting against the pound. That was the coup against Margaret Thatcher who really wanted to take Britain into the euro. They forced the pound into the Exchange Rate Mechanism (ERM)  and placed it at a high rate became Europeans still think the higher the currency the stronger the economy, which results in deflation. That was an easy trade. It is no different from going to a casino and betting or red or black and when you lose, they give your money back until you win.

Soros is old school. He still believes in the Quantity Theory of Money and has been a punter short-term, but when it comes to long-term strategy, sorry, I do not believe he actually grasps the entire picture.

Anyone who has been bearish on the US stock market since 2010 constantly calling every new high the final high, is attempting to forecast with personal opinion. That will not survive the type of move we have been in since the 2009 low. Even Barron’s laughed at out forecast that the Dow would make new highs back in June 2011. All of these people (MAJORITY) totally misconstrue even how the economy really functions because they are still influenced by the theories that were indoctrinated into in school after the 1930s. They obviously lacked the curiosity to challenge what was being taught and look with open eyes and mind and simply ask – Did it work?

WARNING: Laura Ingraham Interviews Marco Rubio…


There’s a big con job just over the horizon.  All of the elements are there.  The timing, the platform, the personalities, the discussion topics, etc., it’s a familiar script.  CTH would like to direct attention to this interview which took place last night on Laura Ingraham’s new Fox News show.  Listen carefully to three elements:

♦On Tax Reform – on one side of Rubio’s ‘full-throated‘ mouth he wants higher taxes on corporations 22% -vs- 20%. In the almost the same breath, inside the same argument, he says “it’s not their (the government’s) money”.   Try to reconcile that.

♦On DACA – [Remember, three months ago President Trump gave congress six months to fix DACA]  Rubio says the “Deferred Action for Childhood Arrivals” (DACA) program is not the “Dreamers”.  What? Yes it is. The childhood arrivals ARE the so-called ‘dreamers’.

♦However, much more importantly, listen to what is said on “chain migration“.  Ingraham asks if Rubio supports “chain migration”.   Rubio says no, then immediately says: “I’ve always agreed to limiting chain migration to immediate family members”. WHAT? That is chain migration.

Laura Ingraham suffers from the same interview issue as Sean Hannity. Both conduct interviews where they ask questions but are not listening. Instead, they are waiting to talk. There’s a big difference.

Given the nature of the topics, and the interview on Fox, and knowing the specifics of the 2013/2014 immigration agenda of the Murdoch family specifically on Fox… and the relationship between Murdoch and Rubio… there’s justifiable room for skepticism and cynicism in the narrative construct of this entire interview.

Any reasonable person, receiving those responses, would have called Marco Rubio out for those three jaw-dropping, virtually simultaneous, hypocritical and mutually exclusive positions… Especially the last one on chain migration. Yet Laura Ingraham skipped right over them as if the answers provided were irrelevant and she was simply checking off a list.  [Insert Suspicious Cat Here]

Something is going on in DC that precipitated this interview.

Battered Conservative No-More !

Top 30 Risky Banks – Does it Really Matter?


The Royal Bank of Canada (RPC) has been added to the list of the top 30 banks posing the greatest risk. The top US bank is JP Morgan which is now the only bank required to hold an extra 2.5% of common equity after its US peer Citigroup moved down a tier required to hold 2% extra.

All of this is very nice, but also misleading. The Stress Tests by no means are realistic. It is assuming a single failure and certainly does not even take into consideration a CONTAGION, which nobody understands and there have been no models that will even simulate such events outside of what we have specialized in. The CONTAGION is what created the Great Depression and Herbert Hoover in his memoirs explain how capital acted “like a loose cannon on the deck of the world in a tempest-tossed ers.” Even the CONTAGION that hit in 2010 when Greece petitioned the IMF for a loan and traders immediately looked to see which country would be next, people do not understand that once blood is drawn, capital responds rapidly in the entire spectrum.

Even during the Long-Term Capital Management debacle in 1998, the crisis was in Russia. That sets off a need for liquidity and then all other markets are liquidated trying to raise cash. This is how a CONTAGION unfolds overpowering the fundamental analysis entirely.

 

Economics to this day still does not comprehend the CONTAGION that hit in 1931. It is the CONTAGION that presents the most significant clear and present danger to society as a whole. This is what reshapes countries and politics. We saw in 1933 Hitler, Mao, and FDR all come to power.