French Parliament Elections Tomorrow June 18th


Macron was hoping to have a super majority that his new party would sweep the election to give him ultimate power. However, the latest poll taken by BFMTV showed a stunning 61% of French voters did not want the 39-year-old’s party to take the National Assembly. The majority of French voters have said they will vote against Macron’s party to prevent a “crushing” majority in parliament. Most have responded that they would vote for a rival party in the second round in a bid to “rectify” the the decision.

It is looking more and more that the vote for Macron was not in support of him handing sovereignty to Brussels. The election point overlooked by everyone is the fact that Le Pen beat ALL mainstream parties. There is no mandate for the surrender of rights in France to a new Federalized Europe. The election is this Sunday, June 18th. We will see the results soon.

Even Switzerland has Gone Stalinistic


 

The Swiss voted to allow a new oversight of the Federal Intelligence Service to spy domestically for security, of course. There were promises that this would be subject to an independent control to ensure it was not abused and become a Stalinistic power. Well, it turns out that the “independent” supervision is just an internal department subject to the same boss. The new powers are to allow the government to intercept all phone calls, read e-mails and SMS messages, as well as to hack into personal computers. It does not matter what government we look at. The entire world has gone mad. Stalin must be smiling from above for his paranoia worrying about what people were thinking is the new standard of intelligence operations in the West.

Minority Report Becomes Reality in Japan – Prosecution Before You Commit a Crime


The plot of the movie Minority Report was a SciFi flick that in the future they used physics to monitor the world and report if someone was going to commit a crime. Now Japan is doing that but without the physics – just bureaucrats. Japanese Prime Minister Shinzo Abe’s government passed the most outrages legislation perhaps in the world. This empowers prosecutors to monitor and arrest people in the planning stages of crimes. That is perhaps the most anti-Human rights act you can possibly imagine. Effectively, an enemy can bribe some bureaucrat to arrest you and imprison you for life claiming you were planning to commit a crime, but took no action.

The government of course is calling this as necessary as a counter-terrorism act ahead of the 2020 Tokyo Olympics. You simply cannot trust government to EVER wield such power. Abe has also been looking to revise the constitution and remove the restraints imposed upon Japan at the end of World War II that confined its forced to 200 miles from its shores. Abe wants that removed by 2020 as well. The Olympics are being used to wipe away human rights in Japan and hand more authoritarian power to government.

It looks like we should eliminate the Olympics to preserve our rights

France Police Hunting Tourists To Shake Them Down


COMMENT: Mr. Armstrong; I had the wonderful experience of flying to France to see my son going to school there. Upon my arrival, I was immediately commandeered by the French police asking me how much money I had. I didn’t even get out of the Paris airport. I was not dressed elegantly; just jeans. I wanted to send you this not because reading what you write and experiencing it are two different things.

Thank you for what you do

GK

ANSWER: Yes. France is going nuts. They are stopping trains that pass through France and searching people’s bags for cash. And this is where they want the financial markets moved to from London? I would not have any account there. They cannot be trusted

The Rising Movement Against Soros



In Hungary, NGOs (non-governmental organizations) will have to be registered in court and their foreign donors will be disclosed. The Hungarian Parliament adopted what many are calling the most controversial laws of recent years. Prime Minister Viktor Orban, advocated the so-called NGO Law that obligates non-governmental organizations with more than 24,000 euros per year from outside the country to declare their most important foreign donors annually and to declare themselves as “an organization benefiting from foreign financing”. If they do not comply with this obligation, they will be closed in Hungary. The so called blueprint for the law comes from Russia, where foreign-funded institutions are branded as “enemy agents”. NGOs in Hungary have to register themselves from now on, and on their website they will be able to use the term “foreign-funded organization”.

There are a lot of people up in arms over this. But there is a serious problem of organization such as that of George Soros trying to fund revolutions and government subversion movements. There have been foreign fundings of civil unrest in the United States against Trump. Obama funded activists in Canada to overthrow the conservatives. Clinton help Tony Blair and the Labour Party beat John Major, and we certainly cannot forget all the screaming about Russian interference in the 2016 election that defeated Hillary.

Macedonia 3-26-2017

The EU Commission and the United Nations have both strongly criticized the bill. They actually say it is designed against Orban’s intimate enemies, namely the Hungarian-American billionaire George Soros. The foundations of Soros claim to support numerous human rights organizations and environmental protection groups in Hungary, but it also funds anti-government movements. Orban had just said recently that Soros “and his agencies” were an opaque component in the public life of Hungary. It was Soros supporting more refugees moving into Hungary.

The EU had complained that the “NGO Transparency Act” was far beyond the goal of securing financial transparency. This would also limit the legitimate political activities of groups that are exposed to a constant, hostile campaign by the Orban government. The government made some concessions to Brussels whereas donations under €1700 would no longer need to be reported separately. The rule is that all “groups financed abroad” will not be eligible for state funding in Hungary.

We are seeing these laws in other places as well. Trump has banned American politicians from lobbying for foreign government for up to five years after leaving office. Human rights groups and activists in Egypt are accusing the government of President Abdel Fattah al-Sisi for effecting a law that regulates the work of non-governmental organizations. Clearly, there is a huge difference between helping people and creating political unrest. The Egyptian measure restricts NGO activity to developmental and social work and introduces jail terms of up to five years for non-compliance. The law also gives the government power over deciding who can establish an NGO and for what purpose. Similar laws were installed in Russia as well.

After all the yelling by the Democrats in the USA that Putin interfered in the US election, NGOs are clearly something that is a grey area, which has been exploited for political purposes using the cover of humanity.

Merkel Wants G20 Global Taxation of Internet


Markel is calling upon the G20 to regulate the internet. While she if pretending to be concerned about cyberattacks, which no regulator can prevent, you have to look into the finer details. Chancellor Angela Merkel called for a global regulation sayying: “Industry 4.0 will have to go through the process that we have already gone through at the World Trade Organization (WTO) with real trading operations that we have gone through in the G20 process with financial market regulation.” 

She noted that the “concerns” include “cyberattacks, the responsibility of social platforms to tax issues in international trade, and growing concern in the world Of policy. “

In other words, she wants to tax all sales on the internet. So anyone from Germany buying anything anywhere would have to pay VAT and every online merchant would have to comply with global regulation. Additionally, governments are increasingly becoming concerned about blockchain technology and the avoidance of taxes.

As always, government pretend to be concerned about security, but it is always about the money. She also wants to shut down anyone who talks against government in the social media.

EU Wants to Order All Euro Trading Moved from London to Paris


The European Union is preparing the legal basis to take over London’s extensive trading business with euro derivatives. This is just another complete failure of bureaucrats to comprehenmd market function. Perhaps they should also outlaw euro trading in the USA and Asia. That would be real smart. Then they can all sit down and play cards with euro themselves and guarantee it will never be anything to anyone else no less convertible worldwide.

The EU Commission wants to withdraw the multi-billion-dollar derivatives market from London after leaving the UK from the European Union. Transactions with securities settled in euro should then be transferred to the European Union if the relevant clearing house plays a key role in the financial system with its trading volumes. Their draft law is still in draft form. It is the testament to just how stupid bureaucrats can really be. They have already outlawed naked shorting of the government debt to prevent a crisis in sovereign debt. They fail to comprehend that in the middle of a crash, they ONLY people buying are shorts. No shorts = flash crash and no bid.

You just can’t get more brain-dead than this.

 

SEC Statute of Limitations Applies to Disgorgement


Justice Sotomayor in the Supreme Court just held that the 5-year statute of limitations for penalties under 28 USC 2462 applies to SEC disgorgement claims. This is a monumental decision for in every case the SEC claims they has disgorge you back to birth. In KOKESH v. SECURITIES AND EXCHANGE COMMISSION decided June 5th.

Because disgorgement sought by the Securities and Exchange Commission operates as a penalty under 28 U.S.C. § 2462, in that it is imposed by the courts as a consequence for violating public laws and for punitive purposes, any claim for disgorgement in an SEC enforcement action must be commenced within five years of the date the claim accrued.

This is a major decision that would prevent many of the abuses that the SEC has carried out for decades.

Illinois In Deep Financial Trouble


Illinois Comptroller Susana Mendoza was ordered to make a “substantial” dent in a $2 billion backlog of bills owed to Medicaid providers. The courts ruled that according to the State Constitution, it cannot reduce the pension payments to state employees. What is happening in Illinois is indicative of how governments are imploding and why I am warning get out of all State and Muni-debt before it is too late. Since State and local governments cannot “print” (create) money, they are forced to borrow and raise taxes. Consequently, they have hit the ceiling in tax resistance. What is happening is people are gradually migrating because there is absolutely no hope for states like Illinois. The only way out will have to be bankruptcy and a default on all the pension promises.

A federal judge has now intervened ordering the Comptroller to now prioritize who it pays. This is turning into the clash of titans – the epic battle between medical expenses that constantly rise regardless of the business cycle and state employees demanding pensions. Caught in the middle are the average middle class American who is being exploited from both sides. The judge now ordered the state to pay up towards Medicaid to keep doctors and hospitals from cutting off care for the low-income families that rely on the program.

I have often pointed out the fate of the city of Mainz. They had their technological boom with the invention of the printing press there. The politicians couldn’t wait to spend tax money assuming the business cycle would never end. So they spend the money before the taxes were due and borrowed against future tax revenues. The debt quickly became a Ponzi scheme issuing new debt to pay off the old as we are doing today. The interest kept rising so they just raised taxes. The rich began to leave and the city was quickly left with the people who didn’t really pay taxes. The bubble burst when they could not sell the next new issue of debt to pay off the last one. The city defaulted. The Pope excommunicated the politicians. And eventually the city was simply sacked and burned to the ground.

Politicians are the scourge of human society. They are the great destroyers of civilization and the instruments of war. People champion gold standards as if this would solve anything. The common fault is not what we call money, it is always, and without exception, those who we put in charge of it.

Meanwhile, Moody’s and S&P have both downgraded the general obligation debt of the state of Illinois as of June 1, on a combination of a state government budget impasse and a seemingly unstoppable unfunded pension obligation that has now ballooned into at least a $130 billion shortfall. You better get out of the State before it is too late. Property values will decline further because of the tax burden.

ECB In Serious Trouble


The European Central Bank (ECB) left its stimulus programs and record low interest rates unchanged. Pundit was seeing some cyclical signs of what they hoped was a spreading recovery in the 19 countries that use the euro currency rather than just a bounce in anticipation of tourist season. The ECB dropped any wording that it could lower interest rates further, which is a claimed sign of greater confidence in the economy, but in reality, is more of a reflection of it being trapped in desperate nightmarish measures.

The proposal to do a Euro Bond in the form of an Asset Backed Security (ABS) as they did with the mortgages that blew up in 2007, is a reflection of trying (1) to bailout the ECB, (2) provide funding for governments when the ECB stops buying since it owns 40% of Eurozone sovereign debt, and (3) a compromise with Germany who is against surrendering the power to issue debt to Brussels. The policies of Merkel have been to maintain the single currency at all costs, but there will be no single debt.  This is very much a policy of being just a little-bit pregnant.

The central bank’s announcement kept important wording that its bond-buying stimulus program could be stepped up if the economic outlook worsens. This is not very likely, it is simply a statement of denial that the ECB is trapped and in trouble. The entire policy has utterly FAILED to stimulate the economy and has only kept governments on life-support. When the plug is pulled, will their heart stop? That all depends upon finding buyers of government debt to (1) take up the slack that the ECB was buying 40% of all debt and a greater proportion of new debt. Remove the biggest bidder, and you end up with a NO BID crisis