O Canada, Paved


By Tabitha Korol

The cover of the August 2017 issue of Rolling Stone magazine displays the image of Justin Trudeau, and the first headline, “Justin Trudeau, Why Can’t He Be Our President?”  Aside from his not being an American, the American people have finally elected to withdraw from their detrimental socialism and return to our Constitutional Republic.  Unfortunately, Canadians have reversed their course toward a more intense socialism.

Trudeau promised real change, the same vague promise made by then-candidate President Obama in 2008.  To reflect his multiculturalism, Trudeau chose a cabinet of thirty, based not on competence, but on gender, ethnicity, and disabilities, yet there appears to be not one observant Jew among them to handle the antisemitism in schools and media and to represent the one percent Jewish population most victimized by hate crimes in an increasingly dangerous Canada. He pledged to legalize recreational marijuana, and to change the electoral system, except that he finds this to be unnecessary now that the very process got him elected.

A globalist, Trudeau promised to welcome 25,000 more Syrian refugees in 2016, without vetting facilities, compared to the 10,000 accepted by the Conservatives. Interestingly, immediately following the deadly terrorist attacks in Paris, he accepted 33,200 refugees, a number that soon became 46,700, representing the same belief system and increasing violence to that one percent and more. I am reminded of the song, “They paved Paradise and put up a parking lot.”

Canadian-born, then-15-year-old Omar Khadr, had been taken by his father to join Al Qaeda.  Captured at 16, he pled guilty to planting ten landmines and murdering an American soldier by throwing a grenade at Sgt. First Class Christopher Speer, in a 2002 firefight in Afghanistan. US Sgt. Layne Morris was also severely wounded by the explosion and blinded in one eye. Convicted, and after serving eight of his 40-year-sentence in Guantanamo, the 24-year-old Khadr was released to Canada where he would spend the remainder of his sentence.

Despite his being dropped into a war zone by his own father, however, he sued the Canadian government for breaching his rights (as a minor) under the Charter of Rights and Freedoms, and received $10.5 million and an apology from the Canadian government. Years before, Omar’s father had been arrested and imprisoned for being an Al Qaeda financier in the jihad bombing of the Egyptian embassy in Pakistan, and his mother wanted to raise her six children outside of Canada, away from Western social influences. This is just one of many unvetted families who have emigrated to the west. Trudeau has indeed brought change. Instead of this family’s paying for their crimes, they are receiving payment for their crimes. Inviting and rewarding terrorism has resulted in increased crime against Canada’s Jewish citizens and will ultimately affect all infidels.

Honor killings are on the rise in Canada, sanctioned by sharia, blamed on the challenging process of integration but never experienced with previous immigrants.  They include a 16-year-old daughter of Pakistanis who was killed for wanting to wear western clothes and get a part-time job, like her peers; a 19-year-old daughter whose crime was to stay out all night; a first-wife and three daughters found drowned in their vehicle in a canal, and 13 other such cases under investigation.

The results of Trudeau’s tenure in office thus far range from disappointing to disconcerting. Unable to cap Canada’s budget deficit at $30 billion over three years as expected, after a year in office, Trudeau blames the previous administration for weak economic growth. Considering Trump’s roaring economic growth within his first six months, Trudeau’s excuse is feeble. And, rather than keep his promise to help to defeat ISIS, he has promised humanitarian support for Iraqis and Syrians.

Rolling Stone magazine also bore the headline, “How the Trump administration is destroying the EPA.”  The United States Environmental Protection Agency (EPA) is an agency of the U.S. federal government, which was created to protect human health and the environment by enforcing regulations based on laws passed by Congress. Created in 1970, this bureaucracy had burgeoned, by 2016, to 15,376 full-time employees, with a budget of $8.1 billion. The Trump administration proposed a 31% budget cut to $5.7 billion and to eliminate a fourth of the agency jobs. This is improvement, not destruction.

The EPA’s increased jurisdiction has encroached on private property, making it more difficult for farmers, ranchers, those in agriculture and homebuilding to meet stringent water supply regulations. The US Chamber of Commerce, National Federation of Independent Business, The American Farm Bureau Federation and others filed a lawsuit to stop the EPA, which uses the pressure of social media for covert propaganda for their own purposes, violating laws and increasing prices of produce. Farmers depend on a fair regulatory system that protects the environment and does not force them to raise strangling prices on consumers.

As Mark Levin explained, “The EPA is destroying the middle class; it’s destroying working people in this country; it’s destroying coal miners; it’s destroying oil jobs; it’s destroying trucking jobs. The EPA is destroying our smokestack industries. The EPA is doing more damage to our economy and hardworking men and women in this country than any country in the world. The environmental movement is a communist movement.”

Complying with EPA regulations costs the U.S. economy $353 billion per year — more than 30 times its budget, more than Denmark’s entire national GDP in 2011. The annual cost of the global warming industry is, conservatively, $1.5 trillion, enough to reduce our taxes and national debt – for the “possibility” of reducing our temperature by 0.048°C (0.086°F) by the end of the century, the same temperature reduction one experiences traveling down an elevator.

By shrinking its budget to two-thirds, its workforce to one-fifth, and limiting its regulatory powers, Trump is redefining and narrowing the EPA’s focus to its original purpose of 1970, to improve our water and air while also cultivating job growth.  Superfund sites (land previously used for chemical dumps) will fall under the purview of the states, rather than further drain the federal budget.

Canada’s healthcare, to paraphrase Hillary, “leaves no citizen behind,” but this most expensive system in the world cannot meet the public’s needs. Although Canada’s Universal healthcare is excellent once the person is in the system, the key words are “in the system,” and it’s not always “universal,” with wealthier provinces better funded than others. It is true that their efficiency channels the funds more to care than to administration, but patients are assessed in terms of “outcome” and what is acceptable to the voters. This is reminiscent of Sarah Palin’s warning of death panels, where the medical boards evaluate the person’s age and quality of life before deigning to provide costly medication and therapy.

Because of the many limitations, professionals cannot focus on prevention, not always seeing the patients until they reach the acute and chronic-care stages. The restrictions on government funding also result in long waiting lists (sometimes many months) to access services, so that those who can, go to the United States for their care and treatments. Mental illness and drug therapies for injury and disease fall largely outside the public system. This is the “single payer system” where Obamacare was heading, and which President Trump hopes to replace.

Humor is our way of dealing with the incongruous: “Americans can’t enact Canadian-style healthcare or where would the Canadians go when they need a doctor?” and “If you think healthcare is expensive now, just wait until it’s free.”

So, M. Trudeau, we don’t want your socialism here and, in sincere affection and friendship, we wish the Canadians another Stephen Harper before the song “They Paved Paradise” becomes Canada’s experience, “you don’t know what you’ve got ‘til it’s gone.”

 

Germany Government Trying to Cover-up Continuing Refugee Crisis Before Election


It should come as no surprise that the Merkel government has been trying to hide the extent of the ongoing refugee crisis in Germany. The Merkel government appears to be trying to keep police surveillance of border controls top secret. Despite the fact that Merkel did close the Balkan route into Germany, the federal police continue to report there is a “high number of migrants” entering Germany through the border with Austria. The migration to Germany is continuing. Back in 2015, Merkel boldly said Germany could accommodate 500,000 migrants annually for the next several years, and that $6.6 billion had been set aside for costs related to processing and accommodating them. Germany and Sweden give the refugees the most money for just coming there. Refugees in Germany receive up to €346 per month from the state, in Sweden, the monthly allowance is up to €224. In Britain, the equivalent sum is €217. This is why Germany is the number one destination. This is money to them that was often a one-year’s wage in a single month plus room and board.

The German Federal Police’s internal final report on border controls submitted to the G-20 summit in Hamburg revealed the truth. Accordingly, between June 12 and July 10, 2017, the federal police found 6,125 violations of illegal entry into Germany, and 812 drug-related injuries. In addition, 782 arrest warrants were executed during this period. Quoting from the report which has been leaked:

“These results alone are indicative of the added value of the temporary reintroduction of border controls at the German internal borders,” the report said. They represented a “considerable safety gain”. The high number of arrest warrants made it clear “the need for national investigation and control measures”. The Interior Minister Thomas de Maiziere (CDU) of the Merkel government ordered that the report should not be published. The Merkel government has tried to hide the refugee crisis ahead of the election. Politicians will just be politicians no matter what country we are talking about and no matter if we look at the left or the right.

Trade War with Russia Disguised as Sanctions?


The US sanction voted on by Congress against Russia are outrageous and an act of War that history will write as this may have been the line in the sand crossed by the USA to punish Russia for Hillary’s loss. Clearly, the new sanctions have important implications for Europe because they target any company that contributes to the development, maintenance or modernization of Russia’s energy export pipelines. This sanction reeks of politics that is really a trade war disguised as national security and pride. We have to dig deeper to see who is getting paid by the American energy industry now and for the next election.

These sanction would surely affect a controversial pipeline project between Russia and Germany known as Nord Stream 2, which is owned by Gazprom but includes financial stakes from European companies. The project aims to carry Russian natural gas under the Baltic Sea, bypassing countries like Ukraine, Poland and the Baltic States. When US President Donald Trump visited Poland in July 2017, he said that the US would increase its liquefied petroleum gas supplies (LNG) to Europe, which was very enthusiastically supported by the Poles. This was obviously a statement that was a direct competition with Gazprom that would distort competition for the European energy market.

The entire Middle East Crisis is all about gas. It began with demanding to run a pipeline through Syria to compete with Russia in Europe. This has been the underlying nonsense from the start. Crimea was historically Russian territory and the Eastern Ukraine was settled by Russian who even speak Russian in the East. If Japan tried to kick the USA out of Okinawa, the USA would send troops. This is all about gas – let us not kid ourselves.

There are competing US and Russian gas suppliers in Europe. At first sight, Gazprom has an advantage: Russia has large gas reserves, low production costs and a developed energy infrastructure that supplies gas to Europe. The US producers, on the other hand, have to freeze the LNG gas, load it on ships and then ship it. LNG gas is more expensive than Russian gas and this is where the sanctions may be inspired.

This trade war disguised as sanctions will have a continued effect of fueling not merely Europe, but deflation. Russia must adapt itself to making decisions because of more competitors in the European. Russia must adjust to a price competition while defending the market position. The second alternative is that Russia is throttling its gas production in order to drive prices up. Yet that will open the door to American competition. So welcome to the trade war disguised as sanctions for helping Trump with something our computer projected would happen back in 1985.

North Korea & Pushing the Button


The United States for the first time in a very long time, won a major victory in the United Nations.  The Security Counsel unanimously approved sanctions against North Korea. Typically, Russia and China have opposed to such sanctions in the past. This is demonstrating that the North Korean problem is serious. Despite all the doom and gloom about nuclear war, China and Russia have no interest in actually pushing the button.

Some think that winning the sanctions at the U.N. removes the possibility of some kind of US attack on North Korea in the near future.  This is wishful thinking for as always, the sanction will NEVER work. The whole idea is you punish the people and they will rise up and overthrow the government. That failed with Russia and all sanctions have ever done is stiffen the opposition. If any such political leader yielded because of sanctions, he would be seen as ineffective and weak. That would open the door to them losing power. It is no different than the Democrats admitting that Obamacare raised the cost of healthcare for everyone. No matter what the issue, politicians will NEVER admit they made a mistake.

Canada Looking to Tax Small Business 93%?


 

The Finance Minister of Canada, Bill Morneau, has announced that the government is now targeting private corporations and fundamentally changing the way businesses are taxed. The Canadian government is focusing in on income sprinkling, earning passive investment income in a corporation, and converting a corporation’s ordinary income into tax-preferred capital gains. Effectively, the Canadian government is looking at itself first with no consideration whatsoever for the people or the economy. It is always about them just surviving. As for democratic processes, they rely upon tell the ignorant that they will get a free lunch if they tear those who create jobs into pieces.

In Canada, the “income sprinkling” is where small business owners “sprinkle” dividends and capital gains among adult relatives. In other words, you cannot give your children any money whatsoever unless they work. So under socialism, you are not allowed to be charitable with your own family. This is what the new hunt for taxes in Canada is all about. Take this with the other two proposals for tax increases and the combination will send taxation on small business to potentially as high as 93%. Government never really cares about the impact of their proposals. It is always just about them. The question we will be confronted with which we will examine at the Orlando World Economic Conference November 3rd & 4th, 2017, just how far can society be pushed in various regions until we hit the reset button?

Australia Hates Foreigners – Now Their Property Taxes Are Doubled if you are Not Australian


New South Wales in Australia has doubled property taxes for foreign real estate buyers. Of course this violates international law, but governments are broke and they are doing their best to destroy the world economy from every which directions. The politicians are responding to Australians who see foreign buyers of property causing a real estate boom. Much like Britain who raised taxes to stop the real estate boom in London, the greatest problem with all these laws is rather simple. ALL LAWS ENACTED should automatically expire within 4 years. The patch work of draconian laws as Australia have been installing will isolate the economy and do far more harm than anyone suspects. The Japanese bought all sorts of property in the USA during their boom days. They then turned and sold it at a loss.
Until now, foreigners had to pay a 4% surcharge when buying properties in New South Wales. The surcharge has now been increased to 8%. New South Wales has become the second state in Australia to increase taxes for foreigners. Victoria announced a similar measure last year. The Australian government has also announced fines on foreign buyers who keep their homes unoccupied for more than six months in a year. The government claims that foreigners leave their properties vacant, which adds to housing shortage. This is clearly more of a racist view since the majority of foreigners buying properties in Australia are Chinese investors. They have accounting for two-thirds of a total A$47.3 billion invested in the property market in the 2016 financial year.
The government also plans to impose a 50% limit on foreign ownership in new developments, which the government sees as a way of ‘increasing the housing stock for Australian purchasers’. Yes, but what they are really doing is creating a real estate crash. Then Australians who have mortgages will be hurt where as the foreign buyers tend to pay cash.

VIX at record lows


Having watched the VIX break the psychological 10 level once again today, it looks comfortable in single digits having digested Fridays NFP’s report. YTD, it remains down around 25% but with volumes so low, we must ask the question – does this indicator still warrant such attention! As traded volumes decrease and market participants walk to the side, we watch a rally that still no-one has especially as we hit record high after record high. This has been the most hated bull market in history and still investors watch the DOW setting records daily.

One of the main reasons the fear cage is at such levels is precisely because people have missed this rally! If you don’t own it – why hedge? The velocity of money is also telling us that we are in a period of deflation and with the misunderstanding of QE only just distorting the picture. Yes, there are scary stories of geopolitical concerns but when the asset bubble is in the bond market, why fear the stock market.

So is the VIX the calm before the storm? We certainly need a good scare to get people convinced they were right all the time and its really a bear market that keeps going higher – you can’t fool them!

US Share Market Broad Overvaluation Index – One of the Best Leading Indicators We Have Ever Created


QUESTION: Marty; back in the 1980s you would show your proprietary index on the overvaluation of the broad share market filtered in currency and capital flows. You have mentioned it is by no means an overbought market. Can you post an update of that index? You haven’t shown it recently that recall.

I know you said this was your best revenge. They either try to steal your work or ignore you.

Nevertheless, hang in there.

Thank you really for all you do.

See you in Orlando

BP

ANSWER: Yes, here is the index on a monthly basis up to the close of July 2017. We are by no means overbought and we are a VERY VERY VERY VERY long way away still – no matter how nuts that seems to many. We are well below the 1929 highs still.

The historical low in this index took place in August 1981, one month prior to the low in the bonds and the shift from Public to Private investment following the 1929 high. It retested that low in August 1985, one month before the Plaza Accord and the Plateau move we were forecasting back then for the breakout in the US share market.

This index has been correlated to major shifts incredibly often one month leading events. It may be our best index ever created. It has been back tested starting in 1790. It is something I most certainly look at to see where we are historically. So while everyone has been screaming CRASH, this index has stood its ground just saying – sorry boys – just no way.

The historical high took place in December 1928 and then the retest came in August 1929 and failed one month before the major high.

This complex Index is being added to the Global Market Watch for it is time to begin paying attention to this on a daily level.

WEC November 3-4, 2017 – The Monetary Crisis Cycle


This year’s WEC (World Economic Conference) is time to address the beginning of the most important event perhaps in our lifetime that stands on the event horizon to begin in 2018. We have nearly reached our second target on the Dow Jones Industrial Index – 23,000. They laughed at our forecast back in 2011 that the Dow would make new highs.  As many people have noticed, if the mainstream media believed our forecast would be true back then, they would have naturally did a follow-up asking why we were right. Since 99% of the world was bearish, they thought our forecast was a joke and impossible.

Nevertheless, that is a very GOOD thing. I grant very few interviews because clients generally do not want to see our forecasts all over the front pages of mainstream media. That will never happen because they have their stable of people they promote and they are looking for people who like to call themselves a guru or prophet. If you have to call yourself that, it proves you are just selling hype to the next sucker. So no worries. The major mainstream media will NEVER report what we do. It goes against the grain.

We have been warning that we are nearing a Phase Transition lift-off. This year’s WEC will focus on what is about to unfold and how to trade this one – because it will be by no means a walk in the park. We are preparing a special report for those who attended Hong Kong & those attending Orlando – HOW TO TRADE A VERTICAL MARKET. You are going to need this one.

We have been moving ever closer to this major event of a Sovereign Debt Crisis which begins next year with the start of the Monetary Crisis Cycle. Governments are clueless as to what is about to unfold. The same is true about 99% of all analysts. Why? You cannot make such forecasts without extremely long databases. You have to see how everything comes together to make these major events in history unfold. That is why most models have at best been back-tested to only 1971. Within the course of history, that is like looking at the last 10 days in the Dow and basing a model only on that slice of time. The obvious conclusion of such a model is the Dow only goes up.

Historically, the majority MUST be wrong for that is the fuel behind the economy and the business cycle. Consequently, the booms and busts cannot be eliminated by government for they react and never prevent anything since they do not understand that they are ALWAYS, and without exception, the primary cause in making the worst economic disasters throughout history. Government will also ALWAYS bite the hand that has feeds it because the object is simply to control the people never properly run the economy for the benefit of all. It historically has ALWAYS come down to a confrontation between the government and the people. Throughout history, there has never been one benevolent government that has EVER surrendered power willingly for the good of the country. That has NEVER happened even once. Power has always had to be ripped from their grasp either by the people, an internal coup, or some foreign invader.

This year’s WEC will focus on the Monetary Crisis Cycle, for now the clock will begin ticking. We have reached almost 23,000 on the Dow – our second target. Will we now reach the third 38,000-42,000 before this is all over?

Seating is limited as always – Ticket Price is $2500

The Risk of North Korea


QUESTION: Dear Mister Armstrong, I have been pondering the thought of Mr. Trump actually welcoming a war with North Korea since Kim Jong Eng launched the first missile via the genesis of the Trump administration. If a war materialized would it not have a actual possibility of stinging China’s economy to a certain degree after all that was one of the main reasons why Trump ran for President “China is eating our lunch”!! Countless refugees would flood into South Korea undoubtedly, but I am a bit hesitant how far “North Korean refugees”would infiltrate as far as reaching the China? Alternatively at the time in question perhaps Kim Jong Eng would be terminated.

The coming times

Thank you

JS

ANSWER: From a timing perspective, 72 years from the birth of the 38th Parallel brings us right here to 2017. The War Cycle brings us to the last date being 2020.92. I doubt that China would allow any refugees to cross the border. Perhaps there will at least be some attempt to assassinate Kim Jong-il, but that is also a long-shot.

The division of Korea between North and South Korea was the result of the allied victory in World War II in 1945, ending the Empire of Japan’s 35-year rule of Korea. The United States and the Soviet Union occupied the country, with the boundary between their zones of control along the 38th parallel. The United States supported the South, and the Soviet Union supported the North, and each government claimed sovereignty over the whole Korean peninsula. American troops occupy southern Korea, while the Soviet Union occupies the north, with the dividing line being the 38th parallel of latitude, which was established on September 8th, 1945 (1945,68). This arrangement proves to be the indirect beginning of a divided Korea which will lead to the Korean War in 1950.

The Korean War (1950–1953) left the two Korea’s separated by the Korean Demilitarized Zone (DMZ) in the later part of the Cold War and beyond. However, the collapse of the Soviet Union in 1991 deprived North Korea of its main source of economic aid. Without Soviet aid, North Korea’s economy went into an economic free-fall in 1992 pretty much in line with the Economic Confidence Model calculated from the birth of the 38th Parallel.

By this time in the early 1990s, Kim Jong-il was already conducting most of the day-to-day activities of running of the state. Meanwhile, international tensions were rising over North Korea’s quest for nuclear weapons. Former US president Jimmy Carter made a visit to Pyongyang in June 1994 in which he met with Kim and returned proclaiming that he had resolved the crisis. However, Kim Il-sung died from a sudden heart attack on July 8, 1994, three weeks after the Carter visit. His son, Kim Jong-il, had already assumed key positions in the government, succeeded as General-Secretary of the Korean Workers’ Party.

He needs to be a threat to the world to retain his power. If he every reversed so that all the sanctions would be removed, the people would most likely overthrow him. So for personal self-interest, he needs to keep a war posture. A war there would send the dollar higher against China. However, keep in mind that Congress is going insane with its sanctions against Russia and that too will alienate China.