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


Published on Mar 1, 2019

SUBSCRIBE 89K
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…

DNC Club Activity – Stacey Abrams Announces Not Running for Senate…


Rule #1, the Club activity is predictable; they follow a well worn guide. Rule #2, when it appears they are changing strategies, refer back to Rule #1.

The Joe Biden/Stacey Abrams club ticket was visible months ago; discussed in March. Standing between the club’s pre-planned designs and the visibility therein is a great deal of smoke and mirrors.  Everything is done purposefully. Planning and strategy is all they do.

.

The media; and more importantly the manipulated polling to feed the media narrative; have been pushing the Biden ticket hard. Very hard. The club spends major cash; this is where the mega-donors and the Corinthian wing-back chairs of the professional consultants, political brokers, come in.  Political polling is a business.

Within the Club’s boardroom, tradeable currencies are cash and power.  Affluence breeds influence.  Finance purchases membership messaging.  This is how Bernie is controlled.  The inability of a similar RNC Club to use that approach was a significant reason Donald Trump was able to defeat the Club.

The grassroots leftist movement that hates the club has removed the element of “Super-delegates” from round #1 of the private Club’s nomination convention. All of the DNC Club primaries are proportional; therefore a brokered convention is possible.

Now start thinking about how the Club would move, with the forethought of the convention scenario, to pre-position their chosen one. An insurance policy of sorts.

Remember also, most of those insurance moves have already taken place (Buttigieg etc).

Rule #1, the Club activity is predictable; they follow a well worn guide. Rule #2, when it appears they are changing strategies, refer back to Rule #1.

Embedded video

Stacey Abrams

✔@staceyabrams

National Security Adviser John Bolton Gives Press Briefing on Venezuela…


National Security Adviser John Bolton holds a press availability to discuss the crisis in Venezuela following a briefing with President Trump.  Mr. Bolton said  “we are seeing the Venezuelan people strive to get a government that they control, not an authoritarian military regime”, adding “this is a very serious situation. The president has been monitoring it minute-by-minute throughout the day.”

Bolton emphasized “this is clearly not a coup. We recognize Juan Guaido as the legitimate president of Venezuela.” He called it a “potentially dispositive moment” for Venezuelans to regain their freedom”, later referencing “a very delicate moment.” If this effort fails, they will sink into a dictatorship from which there are very few possible alternatives.”

Venezuela Crisis Possibly Reaching Apex…


U.S. Secretary of State calls it “Operation Liberty” and supports opposition leader Juan Guaido. The Venezuela regime of Nicolas Maduro calls it a “coup attempt” and has help from Russia and Cuba to put down the uprising.  The regular Venezuelan military, and the ordinary people of the country appear to be caught in the middle.

Perhaps this is the last effort of Venezuelan opposition leader Juan Guaido to shift the balance of power. The White House is supportive but cautious. Everything is tenuous as Venezuela appears to be on the brink of extreme political violence.

CARACAS (Reuters) – Venezuelan opposition leader Juan Guaido on Tuesday made his strongest call yet to the military to help him oust President Nicolas Maduro, and violence broke out at anti-government protests as the country hit a new crisis point after years of political and economic chaos.

Several dozen armed troops accompanying Guaido clashed with soldiers supporting Maduro at a rally outside the La Carlota air base in Caracas, but the incident fizzled out and did not appear to be part of an immediate attempt by the opposition to take power through military force.

Guaido, in Twitter posts, wrote that he had begun the “final phase” of his campaign to topple Maduro, calling on Venezuelans and the armed forces to back him ahead of May Day mass street protests planned for Wednesday.

“The moment is now!” he wrote. “The future is ours: the people and Armed Forces united to put an end” to Maduro’s time in office.

Tens of thousands of people were marching in Caracas in support of Guaido on Tuesday, clashing with riot police along the main Francisco Fajardo thoroughfare. A National Guard armored car slammed into protesters who were throwing stones and hitting the vehicle.

Defense Minister Vladimir Padrino called the latest instability a “coup movement” but several hours after Guaido’s announcement there was no sign of any other anti-Maduro military activity. Guaido later left a rally he was holding with military supporters at the air base.  (read more)

Embedded video

Angus Berwick@AABerwick

Caracas’ Francisco de Miranda avenue after Venezuelans flooded streets today to support Guaido.

271 people are talking about this

Reuters Top News

✔@Reuters

Russia accuses Venezuelan opposition of resorting to violence https://reut.rs/2XRoAFu 

41 people are talking about this

Reuters Top News

✔@Reuters

106 people are talking about this

Embedded video

Reuters Top News

✔@Reuters

Opposition leader Guaido says final phase to oust Venezuela’s Maduro has begun. Follow our live coverage: https://reut.rs/2WdfMJK 

312 people are talking about this

Embedded video

Giovanni C.@giovannicavett

Shocking scenes in Venezuela as defected soldiers fire back to protect protesters from pro-Maduro forces attack.

4,129 people are talking about this

Embedded video

Montana 🕊Agent Applebutt@_Montana_Bound_
See Montana 🕊Agent Applebutt’s other Tweets

This looks like a no-retreat proposition.  Those in the military who make a decision to support Juan Guaido can never return to life before the inflection point and will be targets of the Maduro regime.   A terrible crisis with few good options.

Our prayers for the Venezuelan people who are caught up in this political nightmare.

Secretary Pompeo

✔@SecPompeo

is underway in & the world is watching. @jguaido’s safety must be guaranteed. The Venezuelan people are demanding change, a peaceful democratic transition, & return to prosperity. It’s time for the illegitimate regime to step aside.

6,352 people are talking about this

Secretary Pompeo

✔@SecPompeo

is underway in & the world is watching. @jguaido’s safety must be guaranteed. The Venezuelan people are demanding change, a peaceful democratic transition, & return to prosperity. It’s time for the illegitimate regime to step aside.

View image on Twitter

Secretary Pompeo

✔@SecPompeo

What we are seeing today in is the will of the people to peacefully change the course of their country from one of despair to one of freedom and democracy. The U.S. stands with them and @jguaido now and always.

3,121 people are talking about this

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.

British Pound v BREXIT


QUESTION: Martin you appear to be very bearish on the British pound when comparing with the Us Dollar. Does the outcome of Brexit make any difference to your view.?

SB

ANSWER: The British Parliament under the direction of Prime Minister May has been a disaster. She was a “Remainer” in her heart and the performance of the negotiations reflects that reluctance to leave the EU. The forecast our system has been making on the pound is based upon the performance of the market – not fundamentals.

Still, the fundamentals are reflected through confidence which then shows up in the price action of markets. The decline in the pound has reflected May’s inability to make a deal. Her strategy appears to be one who is on the payroll of Brussels – not the British people. It appears she refuses to negotiate and hopes that it will come down to a hard exit of her deal. This is what she is counting on and there can be a no-confidence vote until December to boot her out.

It is beside me why British politicians do not simply look at their own data and the facts. The UK has experience lower economic growth ever since it joined the EU. It loses just about every argument in the European court. Here is a clip from the Guardian on December 30, 1998, which showed even back then that 58.5% of trade in Britain was outside the EU. Britain cannot enter any trade deals with anyone without the approval of all 28 members of the EU. If just one objects, the deal is dead.

Perhaps PM May sings Frank Sinatra’s song My Way in the shower every morning to boost her spirits. BREXIT has been turned into a joke.