California Collapse Approaching Despite Silicon Valley’s Huge Supply of Tax Dollars


Published on Mar 1, 2019

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Now more then ever we need your help keeping this channel producing REAL content for REAL people https://www.paypal.me/ConservativeRes… The Day California Died Even as the 2018 midterms were a rather mixed bag for the GOP nationwide, it’s only natural that one of the few bright areas for the Democratic Party was in the progressive utopia of California. Despite some hype over internal polls suggesting a close race for governor, or a contentious push to repeal a recently enacted gas tax, the California Republican Party once again fell short, even of its own meager expectations. One Step Forward, Two Steps Backward Whatever small consolations California Republicans can take away from election night were overwhelmed by more losses, as the Democratic tide inevitably engulfed them. There is currently only one undecided race that the California GOP was hoping to flip. In the State Assembly’s 60th District, located in Riverside, Republican Bill Essayli was hoping to oust Democratic incumbent Sabrina Cervantes. With a lot of votes still left to be counted over the next few days, the race is a literal dead heat: At the time of writing this, Cervantes leads by just three votes—26,731 to Essayli’s 26,728. Unfortunately, other hotly contested races in the lower chamber (Districts 32, 44, 65, and 66) were all tenaciously defended by their Democratic incumbents. In addition, the Democrats made two flips of their own, taking seats from outgoing moderate Republicans Marc Steinorth in San Bernardino’s 40th District and Rocky Chavez in Orange County’s 76th District. Thus, the overall net change in the Assembly is D+1, slightly expanding their supermajority. The state senate was even worse, with both losses for the GOP coming from the San Joaquin Valley. In the 12th District, Democrat Anna Caballero managed narrowly to defeat Republican Rob Poythress for the seat being vacated by another moderate Republican, Anthony Cannella, and in the process won the seat that she narrowly lost to Cannella in 2010. But in a more shocking result, the neighboring 14th District saw a sizeable Democratic upset against the popular incumbent Republican Andy Vidak, who was defeated by Democrat Melissa Hurtado. With these two flips, the Democrats erased the minimal gain made by the Republicans’ successful recall of Democrat Josh Newman in Orange County in June, and once again brought this year’s net change to D+1. This gives the Democrats another supermajority in the upper chamber after it was briefly taken from them with Newman’s loss. While Republicans managed to defend most of the open U.S. House races, there were still three devastating losses, two in neighboring Orange County districts and one in Los Angeles. In the 48th, the senior-most Republican congressman in the state of California, Dana Rohrabacher, narrowly lost his re-election bid to radical Democrat Harley Rouda. In the race to succeed outgoing Republican Darrell Issa in the 49th District, Bernie Sanders-endorsed progressive Mike Levin handily defeated Republican Diane Harkey. And in the Los Angeles-based 25th, incumbent Steve Knight was defeated by Democratic challenger Katie Hill. Not only did the Republican delegation to Congress shrink by three, but it did so by losing two of the longest-serving Republicans in the state. Dominant Democrats The poor performance in local races was a clear result of the Democrats’ usual routing of Republicans at the statewide level. In state races, every single office was won by Democrats in the double digits, with some margins easily as high as 20 percent. This included the top race of governor, with ultra-liberal Lt. Governor Gavin Newsom besting former Illinois businessman John Cox by almost the same margin of victory by which his predecessor Jerry Brown beat his Republican challenger, Neel Kashkari. Even in the unusual race for insurance commissioner, despite strong support for Republican-turned-Independent Steve Poizner, Democrat Ricardo Lara apparently managed to eke out a narrow win. This is by far the closest Democrats have come to losing a statewide contest since 2006, yet it is still telling that in order to get that close, the popular Poizner had to change his registration to “no party preference,” Republican being too toxic a word in California. Link to Article: https://amgreatness.com/2019/02/27/ca… https://amgreatness.com/2018/11/08/th…

What Will the Fed do in a Contagion?


QUESTION: I have been following your blog for a number of years, public and private. I read the blog concerning “European Politics.” In it you state the capital flight will be a contagion. I understand what the influx of European capital will have on the DOW and S&P, but much less certain of the duration of the impact and contagion. My question is two part; 1) what impact will the contagion have on the US Dollar and how do you expect the US Fed to react interest rate wise and 2) duration of equities move up – short-lived or longer-term trend is your friend.

Thanks

CF

ANSWER: The contagion will last probably 2 years at best. There was such a contagion during the Great Depression. That is what Milton Friedman used to criticize the Fed. All this gold came to the USA pushing the dollar higher, but the Fed refused to monetize it. The backing of gold behind the dollar doubled between 1929 and 1931.

This time we are on a floating exchange rates system so the Fed cannot sterilize the capital inflows as it did during the Great Depression imposing austerity as Germany demand today. Today, the capital inflows are targeting the equities because the interest rates are artificially low. If the stock market explodes, the Fed will be criticized by Congress for creating asset inflation and creating a bubble with low-interest rates.

Unlike the Bank of Japan and the European Central Bank, the US bond market is the only thing trading. The Fed is not trapped as are the other central banks. At some point, the Fed will be obligated to raise rates to fight against the asset bubble, but that will then attract even more capital and push the BoJ and ECB over the edge.

Keep in mind that ONLY a rising dollar compel monetary reform in the USA. During 1934 Roosevelt devalued the dollar and in 1985 they created the G5 to stage an organized group to manipulate the dollar lower. All those people touting gold will rally and the dollar will crumble are clueless. A lower dollar will increase corporate profits and reduce trade deficits. ONLY a higher dollar will break the monetary system.

Modern Monetary Theory & Why Central Banks are lost in the Wilderness without a Map


QUESTION: Dear Martin,
Would you like to enlighten me on your stance on the Modern Market Theory that is being touted by some in finance and politics please?

VV

ANSWER: The basis upon which MMT has emerged is actually logical for those who lack the understanding of how to conduct research. Since QE has lasted in Europe for 10 years+ without success in creating inflation, they take this as proof that the government can just print without concern of inflation. Money has value only because it is legal tender. I have written about this subject before – MMT.

I will address this in a detailed report because all economic models have now failed. This is part of the Great Unknown we have entered in Economic Theory. Central Banks are without a map and are now lost in the wilderness.

Victor Davis Hanson – Carnage and Culture: Landmark Battles in the Rise to Western Power


Published on Feb 15, 2017

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September 15, 2001 – Examining nine landmark battles from ancient to modern times–from Salamis, where outnumbered Greeks devastated the slave army of Xerxes, to Cortes’s conquest of Mexico to the Tet offensive–Victor Davis Hanson explains why the armies of the West have been the most lethal and effective of any fighting forces in the world. Looking beyond popular explanations such as geography or superior technology, Hanson argues that it is in fact Western culture and values–the tradition of dissent, the value placed on inventiveness and adaptation, the concept of citizenship–which have consistently produced superior arms and soldiers. Offering riveting battle narratives and a balanced perspective that avoids simple triumphalism, Carnage and Culture demonstrates how armies cannot be separated from the cultures that produce them and explains why an army produced by a free culture will always have the advantage.

The Ancient Greeks and Western Civilization: Then and Now, Pt 1


Published on Dec 21, 2017

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Victor Davis Hanson, Senior Fellow, Hoover Institution; Professor Emeritus, California State University, Fresno February 15, 2007