Malaysia Looking to file Lawsuit Against Goldman Sachs?


May was an important turning point in Southeast Asia. The corruption that has engulfed the previous Malaysian government centered around a sovereign wealth fund involving Goldman Sachs has rocked the entire Malaysian peninsula. The national debt, which was believed to have been $170 billion, appears to be more like $250 billion of 80% if the national GDP.

Prime Minister Mahathir Mohamad was sworn in on May 10th. When his aides first entered the government offices, they were confronted with a shocking sight. There were garbage bags filled with shredded documents intermixed with left-over food half eaten thrown everywhere. It was clear, the previous government sought to destroy all the evidence of their corruption.

The new finance minister discovered computers that even the highest-ranking bureaucrats could not access. Computers were set up to prevent access by anyone other than one or two people. Evidence of massive corruption was what turned the election on May 9th, 2018.

Goldman Sachs’ role, I wrote back in 2015, has been highly criticized in the Malaysian media and political circles after it emerged that 1MDB sovereign wealth fund paid hundreds of millions of dollars to the bank for helping it raise $6.5 billion in three bond deals in 2012 and 2013. Goldman Sachs earned around $590 million in fees plus commissions and expenses from underwriting the bonds, according to Reuters. The reported fees are highly excessive, nearing 10% when such fees are typically only 1% in bond underwriting.

There is now talk about filing suit against Goldman Sachs for its role in this scandal. The likelihood of filing a lawsuit against them in New York City being successful is probably zero. They will have to deal with the most corrupt court perhaps in the world that is notorious for protecting its local banks – Southern District of New York and the Second Circuit. My recommendation is to petition the Supreme Court to bring the suit in Washington DC that they will NEVER receiver a fair trial in New York City and they should get on the phone to Donald Trump to start applying political pressure

Secretary Wilbur Ross Discusses the Trade Reset…


U.S. Department of Commerce Secretary Wilbur Ross discusses President Trump’s tariffs against China and the significance of America’s trade deficit.

Ambassador Wolverine – U.S.T.R Robert Lighthizer Discusses U.S./China Trade Reset….


U.S. Trade Representative Robert Lighthizer appears on Fox News with Maria Bartiromo to discuss the current status of the U.S. -v- China trade reset.

Commerce Secretary Wilbur Ross and Ambassador Robert Lighthizer are the targeted one-two punch behind the ‘America-First’ reciprocity program.  In this interview Lighthizer discusses the connectivity of tariffs within the larger trade strategy.

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We are very fortunate to have an awesome wolverine trade and economic team; stunningly so.  The main reason for their effectiveness is the reality that for the first time in our lifetimes we have an economic team acting entirely without influence from Wall Street, K-Street, special interest groups and CoC lobbyists.

As unbelievable as it sounds, we actually have pro-USA administration and government officials writing the actual trade policy without any influence by corporate interests.  And with trillions at stake, this is driving the multinationals -writ large- bananas.

President Trump Surprise Morning News Appearance…


Fox and Friends morning television was broadcasting from the White House today. President Trump found out they were on the lawn, so he went down to spend 30 minutes with them on live-TV.

The subsequent interview encompassed a wide-ranging number of topics and current events including: the IG report’s accusations against former FBI Director Comey, new China tariffs, his relationship with G7 leaders, immigration, Mueller’s Russia investigation, North Korea and more.

Do We Really Borrow From Only Ourselves? Does the Debt/GDP Ratio Means Anything?


QUESTION: Mr. Armstrong, the famous economist Paul Krugman says that debt is ok when we owe it to ourselves. He calls it “deficit scolding” as he wrote in the New York Times. Would you like to comment on this statement?

GH

ANSWER: Paul Krugman seems to lack any historical understanding of how nations rise and fall. Anyone who claims debt is OK and can be infinite because “we” owe it to ourselves is clueless. He wrote in the article you referred to that “we have a more or less stable ratio of debt to GDP, and no hint of a financing problem.” The debt to GDP ratio is interesting but totally irrelevant. China’s debt to GDP stands at 250%, the USA at 103%, and Greece buckled at 186%. Obviously, this ratio is rather meaningless as a forecasting tool. I have published this chart on call money rates previously. In my studies, I quickly discovered that you cannot reduce the cause of any effect to a single issue. We can see that the peak in call money rates took place during 1899 and it was the lowest in 1929 when the Great Depression hit. You can’t even claim that if interest rates hit some magical level the stock market would crash. The world is far more complicated than just this one-dimensional approach to everything.

Capital flows were fleeing the USA in 1899 so interest rates went higher with a shortage of money. In 1929, the capital was in the USA for it rushed here because of World War I. The inflow of capital created an excess so the peak in call money rates was lower than 1899 when capital was fleeing. We even have the world of President Grover Cleveland from the Panic of 1893 commenting on the net capital outflow because of the “unsound” financial policy of the Silver Democrats.

The greatest mistake in the analysis is always trying to reduce any effect to a single cause. The world is a complex mechanism. It is indeed like a rainforest. There are countless species and each is interconnected. Exterminate one and you will find that it was the food source for another which dies. That species, in turn, was the food source for yet another and so on. The world economy is equally complex. This is why I say we are ALL CONNECTED. Create a war in one region, we may not be involved with troops, but the capital flows shift.

Everything is interconnected. There is no single cause and effect. Looking at GDP debt ratios is pointless. This is also why fundamental analysis is notoriously wrong. The majority tries to reason the future based upon this one-dimensional analysis and they NEVER got it right. I have posted this video clip of Larry Summers before. He is asked why can’t you guys ever get it right just once. His excuse is blunt. The economy is extraordinarily complex like the weather. He argues nobody can forecast the direction.

For anyone to say that debt can be infinite when we owe it just to ourselves is a fool. At times, 70% of the national debt has been accumulating interest payments. A national debt is the single greatest way we transfer wealth among citizens as well as nations. I kept yelling on Capitol Hill that Quantitative Easing would fail, it would not “stimulate” the economy for a very simple reason. The assumption that the Fed would buy 30-year bonds and then the banks would lend into real estate with lower interest rates was crazy. The debt is NOT owned by exclusively Americans. China was smart and it sold the 30-year bonds and swapped to 5-year or less paper. The money was transferred out of the country. To pretend this is a debt we “owe” ourselves is just fantasy.

Even domestically, if I am the lender and you are the borrower, then you are paying me because you borrowed the money. Your wealth is transferred to me because you could not wait to buy something for cash. Sorry, I believe Adam Smith was someone who tried to observe HOW things actually work instead of trying to support a predetermined conclusion.

Economic Migration v Welfare Migration


COMMENT:

Sir,

After reading your blog post about the 300% increase in the cost of healthcare for refugees, I wondered the cost in this country for illegal aliens. Healthcare. Education. Food stamps. Etc. I googled anywhere from 3.4 to 11 billion dollars from health care alone.

I laughed out loud after reading the above. You wrote about the turn on the last group of people off the boat.

Keep up the good work and see you in Nov

DK

ANSWER: The cost of socialism is not merely over the top, it has altered the migration patterns within human society tremendously. The waves of migration from Europe to America were each inspired by the economic conditions at home. Therefore, we find the Irish, Germans, Italians, and English all coming during varied waves or periods overall when looking at the majority (naturally there were people from each group who moved for personal reasons). Nonetheless, the one thing that they all had in common was that they paid for their passage and they did not expect social benefits for free.

Today, the migration patterns are purely economic, but they are inspired by socialism whereby they need only show up and receive automatic income and benefits. When the European migration took place, predominantly during the 19th century and then waves after World War I and World War II, the people received no handouts from the taxpayer. There were no social programs to receive free living expenses. Churches provided food when people gave to charity BEFORE there were taxes. Europeans migrated to the United States to start new lives and to earn a living — not because they would be subsidized.

There are waves of migration that are caused by political unrest and no doubt some of that was at the reason for people fleeing Syria. Less know is the wave of refugees fleeing to Colombia and Venezuela who are also seeking security and economic stability since the army continues to support the Venezuelan socialist government that is collapsing. There were Americans in the south who fled to Brazil during the Civil War. They were called Confederados (Portuguese pronunciation: [kõfedeˈɾadus]) and were some 10,000 to 20,000 Confederate American refugees. They settled primarily in the state of São Paulo.

Providing welfare checks to show up on your soil alters the reasons for migration that have existed for thousands of years.

Joseph T. Salerno: This is Why Socialism is a Negative Sum Game


Published on Nov 7, 2017

Joseph T. Salerno (born 1950) is an American Austrian School economist who is Professor of Economics, Chair of the economics graduate program in the Lubin School of Business at Pace University, and Academic Vice President of the Ludwig von Mises Institute. In this talk with Jeff Deist he talks about why socialism is a negative sum game. Full clip, creative common licenced: https://www.youtube.com/watch?v=HBIkj… — This channel aims at extracting central points of presentations into short clips. The topics cover the problems of leftist ideology and the consequences for society. If you like the content, subscribe to the channe

Jordan Peterson – Poverty causes crime? Wrong! – The Gini coefficient


Published on Mar 6, 2017

original source: https://www.youtube.com/watch?v=mJI0h… Psychology Professor Jordan Peterson explains the clear documented science why it’s relative poverty and not poverty itself that causes crime. He goes on further explaining the role of the male dominance hierarchy in context of relative poverty and crime. Dr. Peterson’s new book is available for pre-order: 12 Rules for Life: An Antidote to Chaos: http://amzn.to/2yvJf9L If you want to support Dr. Peterson, here is his Patreon: https://www.patreon.com/jordanbpeterson Check out Jordan Peterson’s Self Authoring Program, a powerful tool to sort yourself out: http://bit.ly/selfAuth (Official affiliate link for Bite-sized Philosophy

Make Black America Great Again


Published on Jun 13, 2018

Donald Trump is unexpectedly popular with black Americans. Are they ready to Make America Great Again? Want even more Right Angle each week? Become a member at BillWhittle.com! https://www.billwhittle.com/subscribe Right Angle is brought to you by the paying members of BillWhittle.com and by donations from viewers like you! Show your support by making a donation at: https://www.billwhittle.com/donate