Germany Secretly Passed Total Surveillance of Everything

Governments routinely pass laws that are expanding their powers to the detriment of personal rights that are buried deeply in legislation only a diehard will read. We have heard about these type of sneaky legislation in the USA, but all governments are the same and Germany just proved it is no more honorable than the the worst of American politicians.

The Bundestag passed a secret legislation giving government full espionage powers against the private sector claiming it is an urgent case. The German government is now authorized, thanks to politicians claiming to represent the people, with the right to secretly install spy software on computers and smart phones clandestinely. This will be used for taxes, not just terrorism.

The law was intentionally hidden in a law on driving bans. It was secretly attached at the last minute hoping nobody would notice. Now the German government can monitor messenger services on smartphones and targets WhatsApp so they can intercept or read messages BEFORE encryption. The government can secretly download their spyware to the cell phone of the suspect without their knowledge. The government claimed: “We are increasingly observing that criminals communicate in encrypted form. This makes it increasingly difficult for the authorities to clarify even the most serious offenses, “said Thomas de Maizière (CDU). The problem is the term “criminal” and tax avoidance is a criminal offense.

The government is loving hackers for they use this as the excuse to grab more power. Rather than simply develop better security, they naturally prefer to empower their intelligence services and police authorities for monitoring measures under the pretense of it being “criminal” and then expand this power to collect taxes.

This is all about government collapsing. They know it. But they refuse to reform. Why surrender a good power until you have no alternative? The problem is, that promotes revolution.

EU Proves It Has Become an Authoritarian Government

The European Commission President JEAN-CLAUDE Juncker, has come out and boldly stated that Poland and Hungary and their refusal to take in a single refugee person under a plan agreed in 2015 to relocate 160,000 asylum-seekers from Italy and Greece, said: “Those who do not want to accept people with a different skin colour or a different belief come from a world of ideas that I do not consider compatible with the EU’s original mission.” Juncker further said that if the refugee crisis existed previously and Poland and Hungary refused to accept the refugees, they would have been denied membership.

The entire refugee crisis was created by Angela Merkel. It was never presented for a vote to the member states. The EU has proven that there is no right to vote and it has become an unelected government with authoritarian powers. Juncker never stands for election by the people. The establishment of the EU government is its a throw-back to the days of kings claiming the divine right to rule.

Meanwhile, estimates of refugees who would still migrate to Europe range in the 30 to 35 million. This indeed seems high for that is 10% of the population of the United States. Even if it is half that amount, it would break the economy of Europe and crush it into dust. You have and excess of people totally unfamiliar with Western culture or with a skill set capable of the 21st century.

Grenfell Tower Fires Exposes Government Corruption

At least 58 people are feared to have died in the fire that engulfed Grenfell Tower this past week. Prime Minister Theresa May admitted that the government response was appalling. There is mounting anger growing that many are saying that people were told to stay in their apartments and died as a result. They are also exposing the fact that there were no sprinklers to combat the fire. On top of that, many see this as a plot to get them out of a rich neighborhood.

The building is a government property managed by Kensington and Chelsea Tenant Management Organisation (KCTMO) which was formed in 1996. KCTMO manages 9,459 properties for the council, according to its business plan, and is the largest tenant management organisation in England. It was refurbished last year but no sprinkler system was installed. The issue here is similar to the World Trade Center crisis. In both cases, we are looking at government owned properties. If such properties were privately owned, the management would be thrown in prison. Because we are looking at government ownership, no such outcome is likely. Government can avoid building codes to save money that no private construction company could possible get away with.

The people are turning this into a rich v poor issue rather than looking a bit deeper.

This is another example of just how corrupt government has become.


Grenfell Protests – May Must Go


The protests are rising and Theresa May failed to go talk to the people right away while Jeremy Corbyn was there on TV crying with the people. He had proposed refurbishing the government housing and sprinklers should be installed last year and it was knocked down. People are blaming austerity. They are demanding an inquest, not a public inquiry. People feel that a public inquiry behind closed doors will hide the truth once again.

The Fate of Britain

We just released our report on in Britain. The markets were showing a very bearish outlook ahead and this was strange if not irreconcilable with the bullish view of BREXIT. We put it all together and warned that the Conservatives may end up being replaced by Labour and we can see Britain turn very hard left toward Marxism. This is a very important report for it goes into the pound on the cross rates with the dollar, euro, Swiss and the yen. In addition, we covered the Long Gilts and the share market. The timing seems incredible given the events following the release of this report.

Tony Blair was a socialist and took Labour to the center right. He achieved concessions from unions no Conservative could have ever accomplished. But Corbyn wants a maximum wage and intends to take Labour back to the 1970s and its extreme Marxist positions. Installing a maximum wage to prevent high paying jobs seems insane. It’s all about punishing accomplishment rather than raising the living standard. The definition of the “rich” will drop from £145,000 to £80,000 and raising the corporation tax from 19% to 26%. He wants 50% tax on anyone who earns more than £123,000. Inheritance taxes will be lowered from £850,000 tax free to £425,000 and anything above that will be 40%. This will wipe out small businesses preventing them from continuing and that applies to farmers as well. Raising taxes to this magnitude will surely lead to the migration of top-end positions out of London.

French Parliament Elections Tomorrow June 18th

Macron was hoping to have a super majority that his new party would sweep the election to give him ultimate power. However, the latest poll taken by BFMTV showed a stunning 61% of French voters did not want the 39-year-old’s party to take the National Assembly. The majority of French voters have said they will vote against Macron’s party to prevent a “crushing” majority in parliament. Most have responded that they would vote for a rival party in the second round in a bid to “rectify” the the decision.

It is looking more and more that the vote for Macron was not in support of him handing sovereignty to Brussels. The election point overlooked by everyone is the fact that Le Pen beat ALL mainstream parties. There is no mandate for the surrender of rights in France to a new Federalized Europe. The election is this Sunday, June 18th. We will see the results soon.

Even Switzerland has Gone Stalinistic


The Swiss voted to allow a new oversight of the Federal Intelligence Service to spy domestically for security, of course. There were promises that this would be subject to an independent control to ensure it was not abused and become a Stalinistic power. Well, it turns out that the “independent” supervision is just an internal department subject to the same boss. The new powers are to allow the government to intercept all phone calls, read e-mails and SMS messages, as well as to hack into personal computers. It does not matter what government we look at. The entire world has gone mad. Stalin must be smiling from above for his paranoia worrying about what people were thinking is the new standard of intelligence operations in the West.

Minority Report Becomes Reality in Japan – Prosecution Before You Commit a Crime

The plot of the movie Minority Report was a SciFi flick that in the future they used physics to monitor the world and report if someone was going to commit a crime. Now Japan is doing that but without the physics – just bureaucrats. Japanese Prime Minister Shinzo Abe’s government passed the most outrages legislation perhaps in the world. This empowers prosecutors to monitor and arrest people in the planning stages of crimes. That is perhaps the most anti-Human rights act you can possibly imagine. Effectively, an enemy can bribe some bureaucrat to arrest you and imprison you for life claiming you were planning to commit a crime, but took no action.

The government of course is calling this as necessary as a counter-terrorism act ahead of the 2020 Tokyo Olympics. You simply cannot trust government to EVER wield such power. Abe has also been looking to revise the constitution and remove the restraints imposed upon Japan at the end of World War II that confined its forced to 200 miles from its shores. Abe wants that removed by 2020 as well. The Olympics are being used to wipe away human rights in Japan and hand more authoritarian power to government.

It looks like we should eliminate the Olympics to preserve our rights

The Rising Movement Against Soros

In Hungary, NGOs (non-governmental organizations) will have to be registered in court and their foreign donors will be disclosed. The Hungarian Parliament adopted what many are calling the most controversial laws of recent years. Prime Minister Viktor Orban, advocated the so-called NGO Law that obligates non-governmental organizations with more than 24,000 euros per year from outside the country to declare their most important foreign donors annually and to declare themselves as “an organization benefiting from foreign financing”. If they do not comply with this obligation, they will be closed in Hungary. The so called blueprint for the law comes from Russia, where foreign-funded institutions are branded as “enemy agents”. NGOs in Hungary have to register themselves from now on, and on their website they will be able to use the term “foreign-funded organization”.

There are a lot of people up in arms over this. But there is a serious problem of organization such as that of George Soros trying to fund revolutions and government subversion movements. There have been foreign fundings of civil unrest in the United States against Trump. Obama funded activists in Canada to overthrow the conservatives. Clinton help Tony Blair and the Labour Party beat John Major, and we certainly cannot forget all the screaming about Russian interference in the 2016 election that defeated Hillary.

Macedonia 3-26-2017

The EU Commission and the United Nations have both strongly criticized the bill. They actually say it is designed against Orban’s intimate enemies, namely the Hungarian-American billionaire George Soros. The foundations of Soros claim to support numerous human rights organizations and environmental protection groups in Hungary, but it also funds anti-government movements. Orban had just said recently that Soros “and his agencies” were an opaque component in the public life of Hungary. It was Soros supporting more refugees moving into Hungary.

The EU had complained that the “NGO Transparency Act” was far beyond the goal of securing financial transparency. This would also limit the legitimate political activities of groups that are exposed to a constant, hostile campaign by the Orban government. The government made some concessions to Brussels whereas donations under €1700 would no longer need to be reported separately. The rule is that all “groups financed abroad” will not be eligible for state funding in Hungary.

We are seeing these laws in other places as well. Trump has banned American politicians from lobbying for foreign government for up to five years after leaving office. Human rights groups and activists in Egypt are accusing the government of President Abdel Fattah al-Sisi for effecting a law that regulates the work of non-governmental organizations. Clearly, there is a huge difference between helping people and creating political unrest. The Egyptian measure restricts NGO activity to developmental and social work and introduces jail terms of up to five years for non-compliance. The law also gives the government power over deciding who can establish an NGO and for what purpose. Similar laws were installed in Russia as well.

After all the yelling by the Democrats in the USA that Putin interfered in the US election, NGOs are clearly something that is a grey area, which has been exploited for political purposes using the cover of humanity.

British Election Backfires on May – Exit Polls Show Hung Parliament

It’s looking like a Hung Parliament and the polls got it wrong again in Britain. The Conservatives appear to be 12 seats short of the 326 to rule with a majority vote. Theresa May is facing a serious backlash over her shocking election campaign gamble after an exit poll suggested that her snap election roll of the dice has completely failed to pay off. Where before the BREXIT vote was purely conservative, Corbyn had to brace that but then he turned to the youth and gold massive turnout in some areas 75%. London itself is filled with a lot of students. Corbyn appealed to them promising healthcare and tuition promises and thus was tapping into a reservoir of people who would not normally vote.

This election illustrated the entire problem we have been warning about. We are facing a generational battled. Ironically, the youth do not quite realize that voting labour was a vote for the very neo-Marxist policies that have created the crisis we have in pensions going forward. It has been this type of promising manna from heaven with promises to make the rich pay for it is exactly the same policies of Hollande in France, which proved so disastrous. Yet the old saying; Ah to be young again, but know what I know now comes to mind. What the youth have done looks very well like fulfilling what our computer has been projecting – the fall of the British pound long-term.

The problem with this Corbyn Hung Parliament is the fact that his own party pretty much wrote Corbyn off and wanted him to resign after the last election. Since this time he made it really a personal battle, he is unlikely to back-down and will be pushing a Marxist agenda. Ah, how the wheel of fortune revolves. This Corbyn Hung Parliament now casts a huge doubt over the negotiations for BREXIT. We ran our model fearing that this could be the outcome or if Corbyn would actually win pulling off a surprise victory for Labour. It came back and said SELL Sterling! It is very curious how markets never lie and they show you the trend if you listen to them rather that try to fit their movement to a predetermined outcome. While our computer did show the Conservatives would win, something was wrong since the outlook for the pound was bearish – not bullish.

Socrates Pro Version wrote in the pound concerning the Long-Term:

“Diagnostically, my wide-ranging projection recognizes that the major low in British Pound Spot took place back in 1985 completing a 52 year decline, but we have seen lower highs with each thrust upward leaving the major high intact as of 1959. We have not elected any Yearly Bullish Reversal from the major low of 1985 warning that we remain in a bearish long-term trend. Only an annual closing above 24280 would signal a change in long-term trend. There has been a post low rally after 1985 moving upward into a key high during 2007. Nonetheless, the market has undergone a reaction back to the downside for the past 9 years. This has warned that the overall trend of this market remains bearish since it has been unable to make higher highs. There remains a long-term risk of a decline extending into 2017 or as far out as 2020 in real terms adjusted for inflation. Unquestionably, there remains a risk that we could see a complete monetary reform as early as 2018 going into 2020 or the latest 2032 insofar as a change in the currency base system. This is likely to follow a Sovereign Debt Crisis which should begin to erupt by 2018.”

Our model has been showing that the major resistance stood in the 134 zone both on the Monthly and Weekly levels of our model. Just to achieve a positive signal, we required a monthly closing ABOVE 12954. Socrates has been writing: “Critical resistance still stands in this market at 12954 and a break above that level on a monthly closing basis would warn of a continued advance becomes possible.”April closed precisely one tick beneath at 12953. This was perhaps the first hint that there would be trouble ahead. May exceeded the April high intraday, but it also fell back to close at 12889. How Sterling has dropped sharply to the 127 level on the news of a Hung Parliament. How it now closes today will be the market speaking loudly so listen.

Since the computer has been warning that Sterling can fall back to the 1985 low at $1.03, it was hard to reconcile this with the polls calling for a major landslide for the Conservatives. This is Corbyn’s chance for the big time and you can expect he is going to really muddy the waters because he really believes in Marx. The distinction between Brexiteer and Remainer stands a real chance now of fading away. Battles would still rage on, however, yet the terms and methods of restoring British independence will be completely thrown into the air. Eurocrats  in Brussels now face the prospect of an entirely different negotiating team in the event of a cobbled together coalition, which would also need time to thrash out its own Brexit strategy.

Our own interaction with British institutions and corporates has been interesting. Many who were against BREXIT and saw that as the end of the world, flipped their position and said hey – they is pretty good. After accepting BREXIT, now the terms are up in the air thanks to May misreading the discontent rising among the youth. We have also warned that revolutions come from the youth, not from the old establishment who have too much to lose rocking the boat.

Corbyn is a full blown neo-Marxist who would love to convert Britain to a modern version of Communism. Instead of guaranteed minimum wages, he wants maximum wage limits. He has been preaching the same old solution – just rob the rich, which Hillary was preaching while stuffing her own pockets. The problem is the big numbers he hears that CEOs make is stock options typically more so than salary. Nevertheless, in his mind if everyone is reduced to the same wage, somehow that will solve everything. Nobody should earn more than he thinks is appropriate. His policies would be the final straw that ends Britain as any type of financial capital whatsoever. The talent will be on the first plane to New York or Hong Kong. With Corbyn in Britain and the EU insanity on the Continent who wants to outlaw short-selling, the pound will not survive even to be a hedge against the Euro.

The real question is somehow the market is always correct and forecasts the future with extreme precision. The pound could never elect a single Weekly Bullish Reversal which all stand above 13400. Yet the first Weekly Bearish Reversal is 12772 on the cash. If that is elected tomorrow, then the markets are warning that this is going to be a very hard road for Britain. The absolute critical technical support for this week’s closing lies at 12748.

We can see from both the arrays on the pound against the dollar and euro, that the computer projected a turning point for this week. It also generally warns of higher volatility next week. So pay attention to the Weekly Bearish Reversal at 12772.


Britain & the Thursday Election

“The British response to terrorism has to change,” said Prime Minister Theresa May on Sunday in a speech after the new attacks in London. She said: “There is, to be honest, far too much tolerance of extremism in our society.” PM May made her announcement at 10 Downing Street making it clear: “When it comes to overcoming extremism and terrorism, things have to change.” She announced potential changes to anti-terrorism laws. She further made it clear: “We can not give this ideology the safe space it needs to breed – but that’s exactly what the internet and the big companies that provide internet-based services provide. We must work with Allied democratic governments to reach international agreements to regulate the cyberspace to prevent the spread of extremism and terrorism planning.”

May could very well achieve a 64 seat majority. We asked our computer to do a What-If  forecast if Corbyn won the election for Labour. This would probably be the best short in a very long time.