QUESTION: Mr. Armstrong, I have a question: First you remarked that capital is terrified if Labour takes Parliament. I believe Labour won Parliament the first time in the twenties. Did that set off the sterling crisis of the thirties? It seems as though nobody really wanted to record the history of the Sovereign Debt Crisis of 1931. I think you are right. It would have undermined the rising socialism of the era. Was there a link between Labour and the fall of the pound as the reserve currency back then?
Thanks
WK
ANSWER: There is no question that if Jeremy Corbyn became Prime Minister, that would lead to the pound falling below par. In the aftermath of World War I, the US dollar’s growing dominance began to reduce sterling’s importance as a reserve currency. There was a massive run on sterling thanks to the win of the first Labour government taking office on January 22, 1924. They held it only between January 22 and November 4, 1924. The socialism which was engulfing Britain led to rising union strikes and militancy which really began in 1925 in the coal industry and then in 1926 a six-month coal strike began and a general strike which only accelerated unemployment. These events undermined the British Economy as there was no way the pound sterling would possibly remain as a reserve currency after Labor retook control between June 5, 1929 and June 7, 1935.
This is why capital is sacred to death if Labour took hold of Parliament under Corbyn for he is even more extreme than anyone ever was in Labour historically. The economic slide under the Labour government culminated in a massive run on sterling in 1931 and capital was pouring out to the United States. The Gold Standard broke down globally between 1930-1933 as Europe was clearly turning more socialistic at the time. The pound remained floating until 1939 and the outbreak of World War II.
World War II saw The Nazi strategy of forging British currency in an effort to undermine their effort to fund their defense. The Nazi government was counterfeiting British notes in massive quantities. By 1943 the Germans were producing 500,000 banknotes a month. Fake pound notes were causing major headaches for the Bank of England. To counter the fraud, the Bank introduced at that time a metal thread during the war to differentiate its issue from Germany’s, and they stopped producing higher denomination notes
Guardian of the swamp gates, Chris Wallace, returns from executive planning sessions with fellow travelers to advance the Trump-Ukraine Conspiracy narrative. Taking the most recent talking points from House Democrats on Fox News Sunday, the insufferable Wallace debates White House advisor Stephen Miller.
Baghdad Wallace skips over the actual transcript of the Trump-Zelenskyy phone call and instead prefers to debate the scripted narrative within the whistleblower complaint about the content of the phone call. Whistleblower good / Orangeman bad.
There are two aspects to this recent story: the visible surface issue; and the unspoken issue below the surface. In essence, there’s more here than most will recognize at first blush.
The surface level aspect is the Trump administration considering a block on U.S. investments into the opaque financial system that is China.
The U.S. financial media view the proposal through the prism of the White House looking for leverage over Beijing during negotiations:
(Via CNBC) […] Restricting financial investments in Chinese entities would be meant to protect U.S. investors from excessive risk due to lack of regulatory supervision, the source said.
The deliberations come as the U.S. looks for additional levers of influence in trade talks, which resume on Oct. 10 in Washington. Both countries slapped tariffs on billions of dollars worth of each other’s goods. The discussions also come as the Chinese government is taking steps to increase foreign access to its markets.
Bloomberg News first reported earlier on Friday that Trump administration officials are considering ways to limit U.S. investors’ portfolio flows into China, including delisting Chinese companies from American stock exchanges and preventing U.S. government pension funds from investing in the Chinese market. (read more)
The below-the-surface issues are not widely discussed.
First, here’s an interview that just might make your jaw drop. Listen to Michael Bloomberg become an apologist for the communist regime in China, simply because Beijing is holding his financial assets hostage. Seriously, this is alarming. WATCH:
Could you even imagine that guy being President? With that outlook toward China? Bloomberg is known in U.S. left-wing social circles as an “environmentalist”, yet did you hear him say China moving the coal plants to just outside the city is a solution? …. As if smog and pollution is best solved through relocated geographics’. That’s how financial engagement with China turns people into pretzels… hostage pretzels to their financial self-interests.
Moving on… Despite the Wall Street pundits proclamations, it is clear by now that President Trump is methodically decoupling the U.S. from China. President Trump has been subtle at times with hints, and then not-so-subtle at other times with deliberate warnings to U.S. companies.
A good example of the dynamic is found in President Trump’s discussions with Apple CEO Tim Cook. It is clear that President Trump doesn’t want to harm U.S. companies, but simultaneously he needs them to accept that there is almost no possibility of a U.S-China trade agreement. Therefore the administration is in somewhat of a strategic influence-game with U.S. multinationals.
If you begin looking at the U.S-Chinese investment situation from Trump’s position; and you accept there is not going to be a trade agreement; then you can see POTUS trying to protect U.S. investments from the fallout.
China needs dollars; everyone who follows trade and China’s economic position understands that without dollars China sinks. The current economic weakness in Europe is driven partly by China getting less dollars due to their conflict with the U.S.
It is the reverse exfiltration problem. With less dollars inbound to Bejing, China has to limit purchases from other nations; less purchases from Europe are an outcome. This is a source of contention from Germany, France and the EU.
President Trump appears to be looking for ways to influence the withdrawal of U.S. investments, especially pension and retirement accounts, from what he and Treasury Secretary Steven Mnuchin perceive as high-risk exposure in China. However, it’s not because the administration wants to pressure Beijing; but rather because the administration is attempting to protect American investment interests.
President Trump knows as soon as he fully decouples, all investment assets in China will plummet…. and everyone knows China’s financial markets are tenuous at best. Trump has been warning American interests, albeit carefully and with nuance, to position themselves according to a predictable outcome. This latest series of discussions is simply an extension of the Trump administration trying to get people to think ahead…. forced medicine.
Friday President Trump delivered remarks at the White House to celebrate Hispanic heritage month. [Video and Transcript Below]
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[Transcript] – THE PRESIDENT: That’s very nice. Thank you.
AUDIENCE: Four more years! Four more years! Four more years!
THE PRESIDENT: A lot of spirit. (Applause.) A lot of spirit. How are you?
Well, thank you all for being here today. And I’m delighted to once again celebrate Hispanic Heritage Month with you at the White House. Right? (Applause.)
This evening, we come together to honor the devotion, and the drive, and the faith, and genius, and exceptional achievements of our incredible Hispanic American community, right? (Applause.)
Everybody here — Hispanic and/or Hispanic American — who isn’t? (Applause.) Do we have anybody? Do we have anybody who isn’t? I don’t think so. How are you? Great man of faith. Great.
Hispanic Americans have been a big part of our national story from the very, very beginning of our country. You work hard. You raise your strong and beautiful families. You care for your neighbors. (Applause.) You start businesses, you create jobs, and you teach your children to love our country and to cherish our God-given freedom. Right? (Applause.)
Hispanic Americans enrich America in countless ways, and we will always honor this solemn commitment to you. I will always be with you, and I think you know that maybe better than anybody knows it. (Applause.) All of our citizens — every single day, we’re fighting for you. We’re putting your needs, your families, and your futures first. We’re putting America first. We’re putting the people in this room — we’re putting you first. All right?
And we’re delighted to be joined for this special occasion by Vice President Mike Pence, who is doing a fantastic job. (Applause.) Say a couple of words, Mike. Say a couple of words. Come on.
THE VICE PRESIDENT: Well, thank you, Mr. President. And it is wonderful to be here just a few short days before we kick off Hispanic Heritage Month. The Americans gathered in this room, and all you represent stand for everything that’s great about this country and everything that this President and this administration fight for every day: faith and family and freedom. Thank you for being here at the White House, and God bless you. (Applause.)
THE PRESIDENT: Thank you, Mike.
We have some very powerful, important people that have been doing a fantastic job on the Cabinet. Administrator Andrew Wheeler — where’s Andrew? Where is Andrew? (Applause.) Thank you. Whoa, Andrew. I thought you were taller than that. I thought you were taller than that, Andrew. (Laughter.)
Deputy Secretary Patrick Pizzella. Patrick. Thank you. Thank you, Patrick. (Applause.) Good job, Patrick.
U.S. Treasurer — who everybody know — Jovita Carranza. (Inaudible.) (Applause.) Thank you, Jovita.
A great football player at Ohio State — fantastic. He went into the NFL and he was tough as can be. A lot of people don’t know that. He’s a tough cookie and he’s a friend of mine: Representative Anthony Gonzalez. Thank you. (Applause.)
Along with a lot of other political people, and state and local leaders, and a lot of diplomats. All the diplomats, thank you very much. We always love diplomats in the White House because we can use diplomats sometimes. (Laughter.)
I also want to thank Christine D’Clario for her beautiful rendition of our National Anthem. Thank you, Christine! Great job.
Last week, I had the privilege of awarding the Presidential Medal of Freedom to another phenomenal member of the Hispanic American community: the legendary pitcher for the New York Yankees — I think one of the great pitchers of all time; certainly, the greatest reliever of all time — Mariano Rivera. (Applause.)
He was something. Boy, his record — you know, he was up — and he’s been a friend of mine for a long time, and — as a Yankee fan. But there’s never been any human being that broke more bats. I said, “What do you do?” He threw a heavy ball. I said, “Mariano, how do you do that?” He said, “I don’t know. God just gave me this ability.” (Applause.)
But you’d have people up there, and those bats were breaking left and right. It was a heavy ball, and his record was incredible.
He — his earned run average in all of the playoffs — and I think he has a record for games played. But his record was — his earned run average was less than one run a game. And they won many, many World Series, and many games. So he’s a special person and a really nice person, too.
Mariano is one of millions of the outstanding men and women of Hispanic heritage who has excelled in every dimension of American society, and helped to build our community into the greatest nation the world has ever seen. (Applause.)
Today, thanks to our pro-American economic policies — you all know this — Hispanic Americans are thriving like they have never thrived before. (Applause.)
We’ve created more than 6 million new jobs since my election. More than 1 million Latinas have entered the workforce. (Applause.) And, as you probably heard me say on occasion, Hispanic American unemployment right now is at the lowest level in the history of our country. (Applause.) How do they beat us in a debate? When they say, “We’re going to get Hispanic vote…” And I say, “Really?” The lowest level in the history — I mean, it’s the lowest in the history of our country. So that’s something special. (Applause.)
Since 2016, Hispanic American median household income has risen by $1,500, and is now the highest level in the history of our country. (Applause.) How about that? Not doing bad, right?
Half a million more Hispanic Americans now own a home, and we’ve never seen these kind of numbers before. So I’m very proud to report that more Latinas own small businesses than ever before. (Applause.) And — you know, great business people. When I was out on that business market, I hated competing with you. (Laughter.) Smart and tough and vicious, but I won’t say that tonight. (Laughter.)
We have one of these amazing entrepreneurs with us tonight. Maria Rios is the President and CEO of Nation Waste, Inc. And she’s got an incredible story to tell. Maria, please come forward. Please. (Applause.)
House Speaker Nancy Pelosi announces an impeachment inquiry against President Trump. Bill Whittle thinks she has just handed the president a 2020 election victory. But how does a president under impeachment run a campaign? And what will Republican lawmakers say as they seek reelection without knowing the outcome of an impeachment trial? Bill Whittle Now with Scott Ott comes to you five times each week thanks to our Members. Join them today at https://BillWhittle.com/register/
QUESTION: What do you say about the difference between corporate socialism and democratic socialism. Thank you. Its all the buzz among those supporting Senator Elizabeth Warren.
LP
ANSWER: This is a very clever way of excusing the core issue. The Democrats preach raising taxes and then sell loopholes to the big corporations. The bankers donated to Hillary — not to Trump. This is a clever campaign assuming, as always, the people (the great unwashed) are just stupid.
The Democrats were against the flat tax because it would eliminate lobbying for tax loopholes. But more importantly, if we had TERM LIMITS and one-time-and-gone, that would eliminate lobbying for dangle money before politicians of BOTH parties for favored status.
Even a tax break to a corporation that they claim is evil will NEVER result in lowering the taxes for everyone else. It is great propaganda. We run trillion-dollar deficits. They could NEVER raise taxes enough to balance the budget. That would destroy all their jobs.
The people who believe this nonsense will NEVER listen to the truth because they are the very type of people who believe only what they want to believe. That is a sad statement of fact. Just look at the presidential elections and you will see only 3 presidents ever had between 60% and 63% of the popular vote. Obama won 51.1% of the popular vote compared to Romney’s 47.2%.
That is hardly a mandate. They know that 45% of the people will vote Democrat no matter what you say and 45% will vote Republican. At best, there is perhaps 10% of the people who are free thinkers and will actually listen and make a judgment. The rest do not count for they will never listen to reason on either side.
We can eliminate corruption with TERM LIMITS. A flat tax should be imposed for it is unjust and a denial of equal protection of the law to discriminate for any reason including wealth. Then, corporations should not be taxed and there should be no double taxation with dividends. The majority of corporations are owned by pensions of the people and whatever is made should simply devolve down to a flat income tax on the shareholders. Corporations provide the jobs that actually produce, while the government does not. I believe there should be no income tax. Societies did well without income taxes until 1913. Rome lasted 1,000 years without income taxes. The founding fathers knew that and prohibited direct taxation for it requires every individual to report to the government, which is wrong. Taxes should be returned to ONLY indirect. I think the founding fathers knew best.
Cathay Pacific Airways Ltd. suffered a 12% drop in passengers due to the Hong Kong protests. Airfare prices are dropping in an attempt to win back visitors. Consequently, Cathay Pacific Airways is looking to sell a U.S. dollar bonds as there are rising fears that the Hong Kong peg may break with the protests. The potential bond offering is expected to be unrated. The deal size and coupon haven’t been made public. This is continuing to put pressure on dollar hoarding in Asia.
There are other issues at the core of the Hong Kong protests. As reported in South China Morning Post, graffiti was sprayed across a concrete barrier at a road in Kowloon’s Wong Tai Sin residential district that declared: “7K for a house like a cell and you really think we out here scared of jail?” They also reported that at an underpass in Central, a message scrawled on the wall read: “12K for 120 sq ft and you think that’s OK?”
Hong Kong’s protests began in June 2019 against proposals to allow extradition to mainland China. The extradition bill that triggered the first protest was introduced in April. It would have allowed for criminal suspects to be extradited to mainland China under certain circumstances. The opponents argued that they could be subjected to unfair trials and violent treatment in China. Therefore, this would undermine the city’s judicial independence and endanger dissidents. They argued that this violated the “one country, two systems” deal.
City leader Carrie Lam agreed to suspend the bill, but demonstrations have continued. They have now developed to include demands for full democracy and an inquiry into police actions. The clashes between police and activists have been becoming increasingly violent, with police using tear gas and activists storming parliament.
The biggest fears from a financial perspective is that (1) the peg will break, and (2) the financial sector will move quietly to Singapore. This is a very serious issue in Asia for it has been undermining the economy moving into the January low in the Economic Confidence Model.
National Economic Council Director Larry Kudlow discusses the forecast for ratification of the USMCA against the backdrop of Pelosi’s announced focus on impeachment.
Additionally, Kudlow discusses the status of Chinese trade negotiations and the recently affirmed trade deal with Japan.
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WASHINGTON (Reuters) – The U.S. House of Representatives is proceeding with efforts regarding the Trump administration’s trade deal with Mexico and Canada, U.S. House Speaker Nancy Pelosi told reporters on Thursday, saying House Democrats had discussed the pact a day earlier.
“We’re moving ahead on the U.S-Mexico-Canada agreement,” Pelosi said at a news conference. “We’re, again, hoping to be on a continuing path to ‘yes’” to approve the deal aimed at replacing the North American Free Trade Agreement (NAFTA). (link)
“Deal”? ….THAT was before you smothered yourself in shoe polish, Justin!
Reuters Top News
✔@Reuters
Pelosi says House is ‘moving ahead’ on trade deal with Mexico, Canada https://reut.rs/2luGqkm
There is a clear rising risk factor emerging from both politics and geopolitics as we move into the January turning point on the Economic Confidence Model. As the economy turns down and as we head into the 2020 presidential elections in the United States, we are facing rising risk factors on many fronts. The Democrats bashed Russia over the 2016 elections, blaming them for releasing Democratic emails that revealed the extent of their corruption. This has increased the tensions with Russia, rekindled the Cold War, and placed us at a far greater risk of war than at any time post-Vietnam.
There is pressure from the neo-cons to go to war with Iran. Iran has boasted that Saudi Arabia is willing fight to the death of every last American soldier.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
Centinel2012 