President Trump Speech During National Republican Congressional Committee Dinner…

Earlier this evening President Donald Trump spoke at the NRCC dinner in Washington DC.  CTH would be remiss if we did not draw attention to @40:10:

…”We’re doing very, very well; and I think you’re going to have something very, very, special take place in a short period of time”…

President Trump Hosts Law Enforcement Roundtable To Discuss Lawless Sanctuary Cities…

Earlier today President Trump hosted leadership from the Department of Homeland Security, Immigration and Customs Enforcement and national law enforcement officials to discuss the ongoing issues with Sanctuary Cities and immigration.


WHITE HOUSE – SANCTUARY CITIES ARE UNDERMINING LAW ENFORCEMENT: Sanctuary jurisdictions obstruct Federal immigration enforcement efforts and put law enforcement at greater risk.

A “sanctuary city” generally refers to a State or local jurisdiction that refuses to cooperate with Federal immigration enforcement, often by rejecting “detainer” requests from U.S. Immigration and Customs Enforcement (ICE) and refusing to share information relating to potentially removable aliens.

  • Detainers are used to request that a State or local law enforcement agency hold a criminal alien in local custody for up to 48 hours after their release on state charges to allow ICE to take custody of the alien and initiate removal proceedings.
  • State and local law enforcement agencies routinely detain suspects for violating Federal laws at the request of federal authorities.
  • The Constitution and Federal statues allow for ICE to detain illegal aliens, and for local police to do so at ICE’s request, relying on ICE’s determination of probable cause.

Detainers themselves establish probable cause of an alien’s removability and it would be absurd to require ICE to obtain a judicial warrant every time it detained an illegal alien.

Indeed, Congress authorized immigration officers, rather than Federal judges, to issue administrative warrants to arrest aliens based on probable cause to believe they are in violation of the immigration laws.

♦If this was necessary under the Fourth Amendment, immigration enforcement would grind to a halt.

  • When sanctuary cities refuse to comply with detainer requests, law enforcement officers must carry out their immigration enforcement duties in workplaces, residences, and in the streets.

This can lead to ICE having to enter dangerous environments to arrest criminal aliens.
Some sanctuary city officials have gone as far as warning illegal aliens about upcoming immigration enforcement actions, allowing criminal aliens to prepare themselves and putting law enforcement, the public, and the aliens at even greater risk.

♦ENDANGERING COMMUNITIES: Reckless sanctuary policies endanger the safety of our communities and obstruct immigration enforcement actions which can prevent further crime.

Too many criminal illegal aliens have been released into American communities and gone on to commit crimes which could have been prevented had ICE been able to take the individuals into custody.

  • In 2016, the San Francisco Police Department (SFPD) arrested a criminal illegal alien for possession of cocaine for sale and other charges.
  • The individual had been deported three times previously and had prior convictions for similar offenses but was still released.
  • SFPD arrested the individual again in 2017 on charges involving the sale of narcotics, yet the city again refused to comply with an ICE detainer request and the individual was released.
  • SFPD arrested an illegal alien and alleged gang member more than ten times between 2013 and 2017 for charges including rape, assault, domestic battery, robbery, and vehicle theft.
  • On each occasion ICE’s request to have the individual transferred to their custody or receive notice before his release was denied.

A criminal illegal alien was arrested in Cook County, Illinois in 2011 for driving on a suspended license from a prior conviction for driving under the influence (DUI).

  • ICE issued a detainer request but the individual was released from jail and arrested less than a year later for aggravated DUI causing death.
  • Activists say sanctuary policies make illegal aliens feel safe enough to report crimes to police.
  • Illegally present crime victims and witnesses are eligible for certain immigration benefits, like the U-visa and T-visa, to encourage their cooperation in reporting crime.

♦IMMIGRATION ENFORCEMENT: President Trump’s Administration has and will continue to pursue strong immigration enforcement based on the rule of law.

President Trump’s Administration has taken action to ensure our Nation’s immigration laws are faithfully enforced.

The Department of Justice has filed a legal action regarding three California laws that intentionally obstruct the enforcement of Federal immigration law, regulate private entities that seek to cooperate with Federal authorities, and impede consultation and communication between Federal and State law enforcement officials.

During fiscal year (FY) 2017, ICE’s Enforcement and Removal Operations (ERO) made more than 140,000 administrative arrests and effected more than 225,000 removals.

  • From President Trump’s inauguration through the end of FY 2017, ERO made more than 110,568 arrests compared to only 77,806 in all of FY 2016.

However, more resources are needed to ensure law enforcement is able to do its job and enforce our immigration laws.

  • There are nearly one millions aliens in the United States with final orders of removal but not enough officers or resources to enforce the orders.
  • Many sheriffs have backed off of holding criminal aliens for fear of lawsuits.

President Trump Meets With Saudi Crown Prince Mohammed Bin Salman…

President Trump meets with Saudi Crown Prince Mohammed Bin Salman (MbS) today at the White House. This is their first meeting since the “Great Realignment” began {Go Deep} and there is much to discuss:


[Transcript] 12:07 P.M. EDT – PRESIDENT TRUMP: Thank you very much, everybody. It’s a great honor to have the Crown Prince with us.

Saudi Arabia has been a very great friend and a big purchaser of equipment and lots of other things. And one of the biggest investments in the United States is their — I guess it’s your big investment — is buying stock in companies and various other things in the United States and creating jobs.

We’ve become very good friends over a fairly short period of time. I was in Saudi Arabia in May. And we are bringing back hundreds of billions of dollars into the United States. And we understand that, and they understand that.

Some of the things that — have been approved and are currently under construction and will be delivered to Saudi Arabia very soon, and that’s for their protection. But if you look, in terms of dollars, $3 billion, $533 million, $525 million — that’s peanuts for you. (Laughter.) You should have increased it. $880 million, $645 million, $6 billion — that’s for frigates; $889 million, $63 million — and that’s for various artillery.

Some of the things that we’re now working on and that have been ordered and will shortly be started in construction and delivered: the THAAD system — $13 billion; the C-130 airplanes, the Hercules, great plane — $3.8 billion; the Bradley Vehicles — that’s the tanks — $1.2 billion; and the P-8 Poseidons — $1.4 billion. And what it does is it really means many, many jobs. We’re talking about over 40,000 jobs in the United States.

So we make the best equipment in the world. There’s nobody even close. And Saudi Arabia is buying a lot of this equipment, and a lot of people are at work making the equipment, not only for us — because we, as you know, we’re getting a $700 billion military proposal. And that’s even a lot for you guys. But we’re getting a $700 billion military plan this year, and 716 will be next year — $716 billion.

So we really have a great friendship, a great relationship. I would really have to say the relationship was, to put it mildly, very, very strained during the Obama administration. And the relationship, now, is probably as good as it’s really ever been, and I think will probably only get better. Tremendous investments made in our country. And that means jobs for our workers, jobs for our people.

Also, defense. We’re talking about defense, and we’re working very hard with Saudi Arabia. And they’re also footing a big part of the bill for defense — the whole Middle East. And we know what’s happened in the Middle East. And it has not been a pretty picture for the United States or for anybody.

And a lot of things are changing, and they’re changing very rapidly. As you know, ISIS is now — we’ve recaptured almost 100 percent of the territory, as you probably have heard before anybody. But we’ve captured close to 100 percent of the territory held by ISIS. We’ve moved very rapidly, very quickly. And that’s, really, coming to an end in that part of the world — it’s coming to an end. And we’ll be able to get out of certain areas that we’ve wanted to get out of for a long period of time. And other countries can handle it. At this point, they’ll be able to handle it.

So it’s a great honor to have you and your representatives here. Crown Prince, thank you very much. Thank you for being here.

CROWN PRINCE BIN SALMAN: Thank you, Mr. President. Actually, the relations between Saudi Arabia and United States of America, it’s old relation. We are the oldest ally for the United States of America in the Middle East.


CROWN PRINCE BIN SALMAN: More than 80 years of alliance and big interest — politically, economically, and security, in different area — a lot of area. And the foundation for relation, it’s really huge and really deep.

And a different issue — we know that today, the relation, it’s the cause of more than 4 million jobs in the United of States of America, directly and non-directly. Also, it’s a cause for a lot of jobs in Saudi Arabia directly and non-directly.

And, as you know, Mr. President, from day one you’ve reached this office, we’ve planned to tackle 200 billion U.S. dollars for opportunities in the next four years, but it end up with 400 billion U.S. dollar for opportunities.

We’ve talked to you, Mr. President, about the military deals, the implementation, and it is more than 50 percent. And, also, the implementation overall in the 400 billion U.S. dollar of opportunity, more than 55 percent.


CROWN PRINCE BIN SALMAN: We planned this for next 10 years, but it happens in one year, we implement 55 percent, though. So this is signal that there is a lot of things could be tackled in the close future, and more opportunities. And that why we are here today, to be sure that we’ve tackled all the opportunities and achieve it, and also get rid of all the threats facing our both countries and the whole world.

So I am very glad to be here today.

PRESIDENT TRUMP: Well that’s right. And you know, one thing that you have been really focused on is the terrorism threat and the funding of terrorism. And whether it’s Saudi Arabia or other countries, as we know, there will be no funding. It is — we have a zero tolerance for the funding of terrorists, and we’re working very hard. And I will say that Saudi Arabia has been working very hard on that, as are certain other countries in the Middle East.

When I was there in May, I think it was one of the most incredible two-day meetings that I’ve ever seen — that anybody has ever seen. It was an amazing two-day period. We had 56 countries. We had — everybody was there at the head of every country. Virtually — I guess, in every case, it was the head of the country. And we talked about terrorism and the funding of terrorism. And it will not be allowed. It will not be allowed. That would be the one thing that would end the relationship with any country. So I think there’s a very big focus on that — the funding of terrorism — meaning, it’s over.

And the other thing that I really am very happy about is that we talked about 400 billion dollars’ worth of investment, of which we’ve already invested and seen invested $200 billion to our companies, to various other places, and people that make things. So a lot of places throughout the United States are benefitting by this massive investment made by Saudi Arabia to buy product from the United States.

And again, we make the best military product in the world, whether it’s missiles or planes or anything else. There’s nobody that even comes close. So I just want to thank you and I want to congratulate you on everything. Thank you very much.

CROWN PRINCE BIN SALMAN: Thank you, Mr. President.

PRESIDENT TRUMP: Thank you very much, everybody.

Q Can you comment on the bombings in Austin, Mr. President?

PRESIDENT TRUMP: The bombings in Austin are terrible. The local, state, and federal are working hand-in-hand to get to the bottom of it. This is obviously a very, very sick individual, or maybe individuals. These are sick people, and we will get to the bottom of it. We will be very strong. We have all sorts of federal agencies over there right now. We’re searching.

What’s going on in Austin — a great place, tremendous place — is absolutely disgraceful. So we have a lot of power over there. We’re looking; it’s not easy to find. But these are sick people and we have to find them as soon as possible. We have to find them, really, immediately.

I will say, working with Texas, working with the local governments has been great. But we have to produce, we have to find this very sick person or people.

Thank you all very much.

Q How was your call with President Putin?

PRESIDENT TRUMP: I had a call with President Putin and congratulated him on the victory — his electoral victory.

The call had to do, also, with the fact that we will probably get together in the not-too-distant future so that we can discuss arms, we can discuss the arms race. As you know, he made a statement that being in an arms race is not a great thing. That was right after the election — one of the first statements he made.

And we are spending $700 billion this year on our military, and a lot of it is that we are going to remain stronger than any other nation in the world by far.

We had a very good call, and I suspect that we’ll probably be meeting in the not-too-distant future to discuss the arms race, which is getting out of control, but we will never allow anybody to have anything even close to what we have. And also to discuss Ukraine and Syria and North Korea and various other things.

So I think, probably, we’ll be seeing President Putin in the not-too-distant future.

Q How are you going to counter Iran? This is a Saudi —

PRESIDENT TRUMP: Well, we’re going to see what happens. The Iran deal is coming up. It’s probably another month or so, and you’re going to see what I do. But Iran has not been treating that part of the world, or the world itself, appropriately. A lot of bad things are happening in Iran. The deal is coming up in one month, and you will see what happens. Okay?

Q Your Royal Highness, should the President pull out of the Iran deal?

CROWN PRINCE BIN SALMAN: Well, we’ll talk about that today.

PRESIDENT TRUMP: (Laughs.) Okay? Thank you very much, everybody.

END – 12:18 P.M. EDT (LINK)

Commerce Secretary Wilbur Ross Discusses Ongoing Trade Initiatives…

Against the backdrop of ‘Phase 2’ trade policy initiatives based on reciprocity, U.S. Commerce Secretary Wilbur Ross talks to CNBC about tariffs, carve-outs and protecting national security ahead of his meeting with the European commissioner for trade.

The hypocritical European Union has expansive protectionist tariffs against U.S. products and has threatened retaliation if the U.S. enforces the Trump administration about trade reciprocity.

Additionally, the Trump administration (Ross, Lighthizer, Navarro and Mnuchin) are focusing on China’s trade theft of intellectual property. According to Reuters reporting there is a possibility of $60 billion in trade tariffs being enforced against China for their IP violations and practices.

WASHINGTON (Reuters) – The Trump administration is expected to unveil up to $60 billion in new tariffs on Chinese imports by Friday, targeting technology, telecommunications and intellectual property, two officials briefed on the matter said Monday. (more)

However, Chinese Premier Li Keqiang puts the panda mask on by saying: “We don’t want to see a trade war” with U.S., and hopes to negotiate disputes. The U.S. market is the customer for the manufactured products by China and Beijing understands the U.S. team holds the leverage.

President Trump: “A More Prosperous Future”…

The White House releases the following President Trump video along with a message to submit your own tax relief success story to them.  Smart plan:

Culture – Law – And Different Ways

Several women have written in and disagree with what I wrote about prostitution. They argue that 75% of prostitutes come from broken homes, which today is over 50% of marriages. They also state that these girls were abused as children in every way possible and many are runaways. Some also argue that these girls turn to prostitution because they are addicted to drugs and became pregnant at very young ages in their teens and have to support a child on their own.
All of that said, I agree that there are girls that fall into each of those categories. However, There are strikingly different cultures and different solutions around the world that warrant looking at both in Asia and Europe. In Thailand, they have a different culture and sex is not looked down upon as it is in the West. The girls are not drugged out or abducted. They are there to make money typically to support their families, which include their parents. Many also do dream of meeting the right guy in the process. In fact. studies show that 15% of the women in the Thailand sex trade marry their customers when they are foreign men (see a study published by Khon Kaen University).
Amsterdam is also strikingly different. The girls are not drugged out and they fall more into the professional category and some may cling to that dream of meeting Mr. right while others have probably given up on the dream of love at first sight and the knight in shining armor will come to carry them away. Both Thailand and Amsterdam show that even prostitutes do find love, which was the story-line of Pretty Woman.
Similarly, in Japan, there are a few private clubs where the girls are virgins and if you wish to select one, and she agrees, you paid $250,000+ and she was yours. You then had to provide her an apartment in Tokyo and support her as a concubine. She would be there for you whenever you were in Tokyo. They did this to be taken care of and a portion of the money always went back to her family. There are different cultures around the world and different morals.
I know in East Europe, men were going there and pretending to want to marry. They entered into the arranged marriage and took the girl and then promptly sold her into sex slavery. That was common when the Wall Fell in 1989, and parents are wise to that scam these days.  There is just a stark difference between what we see in Thailand and Amsterdam compared to where prostitution is illegal. My point is that if there is a legal industry then the girls are protected and this would tend to reduce the abductions.
I have written before when I was in New York standing on the corner in front of the Plaza hotel during the day, this girl came up to me dressed in genes. She asked if there was anything she could do for me. That is using the words spoken by a hooker, but she looked like 13 to me. I was confused and said no, and she asked again. I was not sure and was giving her the benefit of the doubt because she looked so young. I thought perhaps she wanted money for food or something. Then the doorman came over and told her to get out and she turned and cursed him. I then asked was she a hooker? He said yes she bothered the guests routinely. She was probably a runaway working for someone I suppose.
I knew a girl who worked for me once who was raped by her step-father between 7 and 10. She ran away to an aunt in another State. She was strong enough to tell me the story when she was 25. She did not become a prostitute. I respected her strength and she put her life together.
You can pass all the laws you want. It will not stop the abuse. Amsterdam, Japan, and Thailand are a different issue and there are girls who do hope to meet that special someone.
  • Outlaw booze and you created the Mafia.
  • Outlaw prostitution and you create abduction.
There has to be a better way. Girls are abducted and sold into sex slavery only because it is profitable. Remove the profit with legal competition, and you just may end the abductions. Promote safe-houses for runaways and you may save a life.

White House Trade Lesson: “Determining Trade Balances”…

It is going to take a heck of a lot of deep-weed education to cut through the economic gaslighting of the multinational corporations, Wall Street and their purchased institutional media.  However, I give the White House team (Secretary Ross, Secretary Mnuchin, Ambassador Lighthizer and Adviser Peter Navarro) a measure of strong credit for beginning:

WHITE HOUSE:  Measurement of trade flows is usually an uncontroversial topic relegated to macroeconomic classrooms and government technocrats. Recent debates about trade policy have brought the topic out of the shadows, and we hope to clarify how economists measure trade.

Every day there are international transactions for tens of thousands of different products. Physical goods, interchangeably called merchandise, are what usually comes to mind first. However, an increasing share of international trade is in services that are not physically transported between countries—think about financial insurance, licensing of trademarks, or services like consulting.

To make the world a bit more complicated, goods and services are increasingly bundled together, such as when a manufacturer sells a piece of machinery along with an international maintenance contract. The machinery is a good, but the maintenance agreement is a service.

From a macroeconomic perspective, economists typically use the balance of payments (BOP) basis. The BOP captures flows of what we would normally think of as imports and exports of goods, but also includes a series of adjustments. This process better aligns trade data with national income accounts such as GDP. The BOP has the added advantage of being applicable to service transactions as well.

The International Monetary Fund defines BOP as “a statistical statement that systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world.” BOP transactions are valued using BPM6 methodology that emphasizes using balance sheet analysis to understand international economic developments and to improve comparability with other countries.

In order to construct the BOP, start with the customs value of imports and exports. A frequently used U.S. government data source reports monthly “customs basis” for transactions. There are different methods of customs valuation.

The transaction value method is the price actually paid by the buyer for the imported goods and includes all payments made as a condition of sale. But the transaction may or may not occur at the border—some international shipments change ownership when loaded, others when unloaded, some even at a specified point in transit.

Recognizing this array of contracts, alternative methods that evaluate imports based on identical or similar goods, deductive value, or computed value are used in various situations. Government statistics are specific about where the customs value is reported, with common specifications including “free on board” (f.o.b.), “free alongside ship” (f.a.s.), or “customs, insurance, and freight” (c.i.f) to designate how much of shipping costs are included in the transaction value.

Starting from the customs value, a series of adjustments are made to arrive at BOP. These adjustments are typically fairly small, but they can be significant in aggregate. The current U.S. adjustments are:

In 2017, the aggregate difference between customs goods imports and BOP goods imports was $19.0 billion on a customs basis of $2.34 trillion. For goods exports, the correction was similar—a difference of $4.0 billion on a customs basis of $1.55 trillion.

Subtracting imports from exports gives the trade balance. Trade balances can be calculated for goods, for services, for goods and services, for one country, for a group of countries, or for the whole world.

The most inclusive measure of trade covers both goods and services. Some economists worry about the measurement of trade in services, which may be subject to inconsistencies, and so prefer to focus on trade in goods alone. After all, goods are tangible things that are easier to count.

Others prefer to focus on goods alone because on average all goods-producing industries have higher wages than all service-producing industries; in Q3 of 2017 average total compensation per hour worked in goods-producing industries was about 20 percent higher at $39.97 while the same measure for service-producing industries was $32.21.

Although BOP accounting is similar across nations, each country can interpret BOP methods slightly differently, which leads to differences in reported values of surpluses and deficits. These details are typically spelled out in exhaustive detail in government documents that could be prescribed as a cure for insomnia. For an example, see the Bureau of Economic Analysis document here.

To illustrate some of the concepts presented in this post, consider U.S. bilateral trade balances with Canada. In 2017, the U.S. goods and services balance was a surplus of $2.77 billion. The goods alone balance on a BOP basis was a U.S. deficit of $23.16 billion, but on a customs basis it was a deficit of $17.58 billion. Note that the difference between the BOP goods and services balance and the BOP goods alone balance implies a trade surplus in services of $25.93 billion.

In contrast, Canadian statistics report a goods and services trade surplus with the United States of $26.76 billion, using the Canadian BOP methodology. The goods alone balance is $40.50 billion on a BOP basis.

One important difference in BOP methodology between the Canadian and U.S. approaches is the treatment of re-exported goods. USTR raised a related issue, on the role of re-exports in Census-based bilateral trade balances, in its 2018 Annual Report.  (link)

President Trump Delivers Remarks at the Shamrock Bowl Presentation by Prime Minister Leo Varadkar…

Earlier today President Donald Trump and First Lady Melania Trump welcomed Irish Prime Minister Leo Varadkar to the White House.  Part of the festivities included the presentation of a Shamrock Bowl by the Prime Minister to the American people.

Left v Right – Why the Western Society is Really Collapsing



we just saw the German elections play out. For Germany, this is a huge move to the left – at least in government. They also say that Europe will be strongly supported. I guess that means shoveling money to Brussels and raising it via more and more taxes. Now, I researched everything you wrote about the ride of the right-wing parties in Europe and the separatist movements. I would be interested in your thought on how this plays out. E.g. Germany with its left-wing government. It rather seems to be the case that government will become more and more left-wing. Just as in the Weimar Republic. So I do not think that a right-wing could have enough political force to take power, also since Antifa is MUCH more violent and also more powerful than the right. Politicians blame the right for many things, violent events etc, while in fact, it is a rather docile movement with very little power and if so, only in the hands of individuals who do hardly organize since it really is the promotion of individualism vs group-think (left) and group movements. So from a logical standpoint, it seems rather likely to have the socialist agenda gain power. I know you say it is coming to an end. I trust you are correct. Socialism does not work and people might notice at some point. But it seems to be in a quite distant future still. Could you elaborate on that? Will Immigration finally win and move Europe and Germany into a new societal form? Finally, the European left-wingers are actually importing authoritarianism. Which very ironic since they probably think they are importing voters.

Thanks, Marty.

Best, SP.

ANSWER: Oh yes. I do not think most people outside of Germany understand that. Merkel lost control. To keep power, she had to create a Grand Coalition with the SPD, which has been the Northern socialists with origins that go back to the Weimer Republic and the Communist Revolution. The SPD took power for both they and the CDU of Merkel realized that going back to the people would result in both parties losing even more ground. This is highlighted particularly after the Italian election. I have NEVER been asked for a meeting by anyone in the SPD. They have always fundamentally been opponents of anything my computer has forecast. They have NEVER been interested in what is economically best for the people – they are only interested in imposing their will upon the people because they do not see the same light they do.

Most people have no idea that Lenin was more of a dreamer who at least thought he was benefiting the people. It was Lenin who warned not to allow Stalin to take power after him. He said: “Comrade Stalin, having become Secretary-General, has unlimited authority concentrated in his hands, and I am not sure whether he will always be capable of using that authority with sufficient caution.” Stalin did everything he could to take power. This has been the curse of the left. They see themselves in a war against the producers and whatever action they take, it is always for the good of the people. This attitude marks the left who always seek to subjugate the right. They never believe in human rights other than their own and have historically always taken an authoritarian position painting themselves as the victim being exploited by the right. The official state records showed that Stalin killed about 2.9 million people. However, this does not include those who died from famine in places like Ukraine for example, which stand at about 7 to 10 million. In Ukrainian, they coined a term for what Stain did – Holodomor (Голодомо́р) meaning “to kill by starvation” has remained at the core of why Ukrainians want independence from Russia.

Nymphenburg Palace Home of Bavarian Monarchy

When you look around the globe, what you see is a rising intense fight building between the left v right, i.e. Thieves v Producers in terms of Ann Rand. Simultaneously, we are witnessing the rise of separatism. We see this everywhere. We see in Europe Scotland, Catalonia, Bavaria, Sicily and others. Even in Canada, I wrote about the move of Alberta to secede from Canada. British Columbia is left-wing and environmentalists so they are blocking a pipeline from Alberta through their province. What you see is a trade war within Canada between two provinces. In Germany, we see this sentiment starting to rise in Bavaria which has long retained an underlying sense of nationalism ever since Bavaria was incorporated into the state of Germany in 1871. The old Bavarian palace of the Monarch remains a symbol of Bavarian Nationalism. I remember being in Bavaria when they were celebrating winning the war over the Prussians in the north.

The origins of the rise of Bavarian nationalism as a strong political movement emerged from the Austro-Prussian War and its aftermath. Bavaria had always been both politically and culturally closer to Catholic Austria than Protestant Prussia. We see the similar religious strains in Britain as we do in Germany – Protestants in the North v Catholics in the South. Martin Luther nailed his  Ninety-five Theses to the church door at Wittenberg. The Bavarians shared with the Austrians a common contempt towards the Prussians, leading Bavaria to ally with Austria in the war.

After World War I, in 1923, Bavarian monarchists of the Bavarian People’s Party attempted to seize control of the Bavarian government and declare Bavaria independent of Germany and the Weimar Republic restoring the Bavarian monarchy wherein 1918 the north wanted a Communist Revolution and even asked Russia to come take Germany. This Bavarian separatist coup attempt was then preempted by the then-small Nazi Party which itself attempted to take over the Bavarian government. Bavarian nationalists and the Nazi Party competed for a support base. Finally, the 1932 election saw the Nazi Party won a major victory nationally, yet the Nazis did not surpass the Catholic Bavarian People’s Party in southern Bavaria. The Nazis won only the Protestant areas of northern Bavaria. The underlying resentment remains deep in the heart of Bavaria.

In 2013, the Bavaria Party still won 2.1% of the total vote in state elections so they have not faded away. Top officials in the Bavarian sister party of Chancellor Angela Merkel’s conservatives have warned the center-left Social Democrats (SPD) that failure to stick to agreements on migrants could cause the collapse of the potential new German government. Once more, we still see the tensions between Bavaria v the North. Merkel’s Christian Democratic Union (CDU) needs the Christian Social Union (CSU) of Bavaria to even rule. The CSU was formerly the most right-wing party in Germany. But its rubber-stamp of Merkel and the open-door policy to refugees cost them dearly. The AfD won 19.17% of the popular vote in the September 24th, 2017 national election. This was the highest level of support in the former West German states.

Here we have a rising new party, Alternative for Deutschland (AfD), which really began in the East and took 12.6% of the national vote. Once again, we see the inner tension between the socialists (SPD) of the North and their quest to forcibly impose their will upon the South. This is the tension of centuries that goes back to the Prussian v Bavaria confrontations that began in religion.

The left will make a major stand to seize control globally. They will be VERY OPPRESSIVE and this is what will end up destroying the West as we see the economic epic center move to Asia with China becoming the dominant financial capital of the world.


World economic growth (GDP) peaked in 1973.  We are looking for the final low to form during 2035.8. The next low will be in 2025 and this will be a Cycle Inversion from a high producing a low. However, you can easily see from this chart of world GDP, socialism is dying. The Pension Crisis will be a major event and the failure of that system will spark not just civil unrest, but the left assaulting the right. The left will look to plunder the wealth of the right and justify it in their minds as they are entitled to this because the right got rich by exploiting the left. This may become excessive between 2029 and 2032.

When Rome turned against the producers under Maximinus, this is what really began to destroy the Roman Empire. Informants were rewarded to turn in anyone with assets they believed was hoarding wealth. They turned everyone against everyone else and that broke the bonds of civilization. Even after Maximinus was killed by his own troops and his head was sent to the Roman Senate, capital investment NEVER returned. The producers began to invest less and continued to hoard more. Confidence was simply lost and people did not trust one another anymore.

This is simply how human nature responds given the same set of circumstances. The more the left seeks to raise taxes and punish the producers, the greater the producers will hoard and not invest and we will see a continued decline in economic growth rates. We can see that we really cannot get world GDP above the 3% level. The decline post-2007 has been profound and 10 years of Quantitative Easing has only caused wealth to contract. Negative interest rates sparked more hoarding of cash even among the middle class.

Draghi is holding on for dear life. He has no prayer in hell to restore the economy of Europe. All he has done is kept the governments on life-support. When they cannot sell their bonds, they will raise taxes drastically to try to stay afloat. This is how history repeats. The same circumstances will emerge, but like a Shakespeare play, it can be acted out over the centuries with the only change being the actors.


White House Trade Advisor Peter Navarro Discusses Trade and Tariffs….

Terrific ‘big picture’ interview and discussion between National Trade Council Director Peter Navarro and CNBC’s Rick Santelli about President Trump’s trade policies, the threat of China, and the future of how our nation will deal with allies and trading partners.


A perpetual trade deficit is detrimental to our American economy because it is financed with debt. We can buy more than we make because we borrow from trading partners. The trade deficit simply means we purchase more foreign goods, and send more money overseas, than they purchase from us. We then turn around and borrow back the money we just paid.

Another broad concern revolves around national security. A perpetual trade deficit is a statement about the competitiveness of the U.S. economy itself. By purchasing manufactured goods overseas for a long enough period of time, U.S. companies lose the expertise and even the factories to make those products; ex: try finding a pair of shoes made in the America. As the United States loses manufacturing competitiveness, we outsource more jobs, and our total standard of living declines.