Every day there’s some new, strange situation for us to chew on. Make NO mistake folks, this election is the single biggest election of our lives. How can I say that? Easy. Look at the rabid way they’re trying to push Hillary into the White house. Look at the way they’re burying the Email scandal, and the Clinton Foundation scandal. Look at the way they’re vilifying Trump for every word the man says. This is out and out war like we’ve never seen.
They’ve dredged up any and everyone that sounds important to discredit Trump. Old retired Generals saying he’s not stable enough to command the Military. Old ridiculous economists that can’t predict day to day economic reports that say his plans will destroy the country. On and on it goes, and with a volume that NO ONE has ever seen before.
When that many high level people are in a panic, you know the Dark state is agitated. They know that a true investigation into the Clinton Foundation would spread to hundreds if not thousands of the worlds power players. Sunshine would be turned on in the dark closets. Skeletons that are never to see the light of day would emerge. Heads would roll. Important heads. Rich heads. Power heads.
Something is coming. I don’t know what. You can almost feel it. From this very moment until February, I think there’s the chance for a very significant event to take place. But what is it? Will NATO spark the war with Russia they apparently want? Now that China is involved in the Syrian situation, will something happen there that drags us into a shooting war with China AND Russia? Will some “test” go wrong in the South China Sea, and we have a Naval war there? Is someone going to try and assassinate Trump? Is Hillary going to be found medically unable to be President? Are the bankers going to implode world markets and create chaos? I could go on and on. But if you’re truly honest with yourself, you too feel it.
I asked some friends an interesting question the other day. What happens if Hillary is elected, but between November and the actual inauguration, her medical team declares that she’s got some brain clot troubles and can’t take the pressure of being President. What would happen? Technically she’s not President because she hasn’t been sworn in. They can’t appoint Keane as he to never got inaugurated. What the hell would happen? No one I know knows. It certainly doesn’t seem to have happened before.
Would Obama be able to just say “Stop the presses! in times of uncertainty, the standing President has the power to remain in office”. Could be. Likewise it is a FACT that if we were to go into a hot war with say Russia, the law allows for the Standing President to remain President. Could that be why NATO has pushed weapons to the very door step of Russia, almost provoking them with a “what are ya gunna do about it?” Could be.
The Alternative space went nuts a few days ago when it was discovered that Obama had signed some Executive orders concerning the Treasury. Executive Order — Providing an Order of Succession within the Department of the Treasury. This can be found right here at the White house web site….
Here’s the important part…
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Vacancies Reform Act of 1998, as amended, 5 U.S.C. 3345 et seq. (the “Act”), it is hereby ordered that:
Section 1. Subject to the provisions of section 3 of this Executive Order, the officers named in section 2, in the order listed, shall act as and perform the functions and duties of the office of Secretary of the Treasury (Secretary) during any period when both the Secretary and the Deputy Secretary of the Treasury have died, resigned, or are otherwise unable to perform the functions and duties of the office of Secretary.
Sec. 2. Order of Succession. (a) Under Secretaries of the Treasury, in the order in which they shall have taken the oath of office as such officers;
(b) General Counsel of the Department of the Treasury;
c) Deputy Under Secretaries of the Treasury and those Assistant Secretaries of the Treasury appointed by the President by and with the consent of the Senate, in the order in which they shall have taken the oath of office as such officers; and
(d) the following officers of the Department of the Treasury, in the order listed:
(i) Chief of Staff;
(ii) Assistant Secretary for Management;
(iii) Fiscal Assistant Secretary;
(iv) Commissioner of Internal Revenue, Internal Revenue Service;
(v) Commissioner, Bureau of the Fiscal Service;
(vi) Deputy Commissioner, Fiscal Accounting and Shared Services, Bureau of the Fiscal Service; and
(vii) Commissioner, Wage and Investment Division, Internal Revenue Service.
Notice the area I highlighted in black. “have died, resigned or are otherwise unable to perform the functions….” What’s up with that? Why is this Lame Duck President, who can’t take time off the golf course to go visit those suffering people down in Louisiana, taking time to sign out an EO outlining who would be in charge if the Treasurer were to quit, or die?
It’s a damn good question isn’t it? Indeed. Maybe especially in light of the fact that on May 6th Obama signed an executive order concerning the Facilitation of a Presidential Transition…..
So again I ask… what’s up with that? There was already a transition rule in place, why another EO? Why the new rules of the Treasury succession? Are they setting up for some type of big event coming our way, an event that might see our current Treasury step down for some reason?
I don’t know. What I do know is that Soros has been hacked and sure enough he’s been found to have given Al Gore millions to push global warming, he’s pushed Obama to accept 100K refugee’s, he’s been found to have been playing in virtually every major Government. I know that Hillary’s Clinton foundation has been behind a lot of “pay to play” concerning some very big name people. I know the DNC Email hack showed in all its glory how they rigged the Primary for Hillary. I also know…Trump has disrupted their nice quiet scams and they’re going to fight back. Hard and dirty.
As a market forecaster, as someone that attempts to connect the dots and create a picture out of the results, I don’t much like being wrong. But this time I desperately want to be wrong. I don’t want a war, I don’t want some “big time” event taking place, because the things that could happen will affect each and every one of you.
Maybe I’m just being paranoid? I guess it’s possible. But you have to admit, with all the hacking, with the war drums beating, with Hillary’s health exposed, with the Media’s attempt to portray Trump as a goof ball and discredit his every move, while at the same time trying to stir up racial unrest, with these weird Executive Orders, with the Iran “ransome” money, etc. etc. etc…. there’s a lot of dots out there.
I don’t think that it’s a bad idea to do some preparing. That’s both emergency (like hurricane preparedness) and financially. I think that we’ll chat a bit about that on Wednesday, because if there was ever a time to be prepared for “something”, these next 3 – 7 months are it. Stay tuned.
Soros doubles down on the short side. Well-known investors talking about the “megaphone” pattern that looks ripe for collapse. Major fund managers talking about an unsustainable market. Headlines such as this dot the landscape: “Markets Are Ripe For A Black Swan Event” – Why Most ‘Well Hedged’ Funds Won’t Survive. On and on it goes and yet what’s the market actually doing? It’s holding up in the face of all the doom and gloom.
I guess it’s been almost two months now, that the market has ignored Brexit, poor earnings, lousy economic reports, more money sitting in negative interest accounts, a rabid election process, war drums beating, etc. So how can that be? As I’ve explained until you’re sick of hearing it, it’s “rigged”. By rigged I simply mean that when you have central banks buying stocks, and an interest rate of zero, companies can borrow for free and buy up their own stock.
Between the central bank buying and the buy backs, stocks simply go up or hold their own. Which brings up a question that each and every one of us is going to have to answer at some point. When does this stop? Does it even have to stop?
I tend to think it does have to stop. Exactly how or exactly when is unknowable. But let me first explain something so you’re clear on my reasoning. I’m not against markets going up. It is perfectly legit for markets to levitate when indeed you have a growing economy, growing employment, growing incomes, growing earnings, etc. That’s exactly what markets should do, they should reflect that growth with higher stock prices.
The problem however is the undeniable abstraction from that norm. Our market has gone up in the face of FALLING earnings, FALLING incomes. PART time jobs, insane HEALTHCARE costs, FALLING exports, NOSE BLEED valuations, etc.
So I wouldn’t be whining every day about a 19K market IF it was a reflection of actual economic growth. It is NOT, however. It is a market that has been “taken there” via way of the Japanese Pension Company being a top holder of stocks. It’s gotten there by the Swiss National bank buying 60 billion worth of US stocks. ( and growing)
What would happen if the SNB and the Japanese Pension fund, and other Central banks immediately stopped buying US stocks? How long would it be, before there would be no buyers for any stocks offered? Not long is my guess and if you take out those monster buyers, chances are that the DOW would be cut in half in less than a year.
So, the only thing between a DOW at 19K and a DOW at 8K is bankers. Bankers that print money out of thin air, and buy with no regard to prices, earnings or sales. Could it go on for “ever?” Probably not. At some point, the population would catch on to the fact that stocks can “only” go up, they’d pile in with all they have, and one day those very Central banks that ignited the frenzy, would want to “take profits”.
Can we agree that the system is broken? Good. Now let’s look at this from a different lens. Throughout all history, the elites have caused chaos, only to rush in and tell the folks that they are the only way out of the chaos. Create the problem and then chose yourself to fix the problem. If the CB’s ever decide to SELL some of their stock holdings… I can guarantee you there’s going to be chaos. Wouldn’t it be just like them to pull the rug, create a nightmare and then offer themselves up as the only way to get out of the mess? Sure would.
One thing that’s beginning to stir in my head is a purely tin foil hat situation, but one that I could see taking place. What if the game plan is to keep the market up and steady for Hillary, so she can espouse Obama’s “Legacy”, but if Trump wins….the CB’s crash the market, blaming his policies for the flight out of stocks? Crazy? Conspiracy talk? Maybe not.
The “establishment” that wants Hillary, is indeed evil enough to use the market to punish the citizens if they’re “brazen” enough to vote for Trump. I could easily envision Central banks selling stocks and some scumbag like Soros wagging his finger at us and saying “See what you’ve done you stupid people? You elected a man with bad trade ideas, and look how the world has responded!” Too outlandish you say? Not any more outlandish than Hillary’s Email, the DNC scandal, 3 dead people in three weeks and the media bias.
We’re in a very strange time folks. A time never seen before. Negative interest rates? Completely new in human history. CB’s buying stocks with printed money? A new Phenomenon. Stocks going up in the face of a global recession? Unusual. No one’s ever seen this before, and how it all ends is going to be written about for generations.
The way that they’re walking the market “sideways” instead of allowing it to correct, suggests more upside is coming. You’ll want to participate in the market. But please, use your heads. Be cautious. Don’t load the boat. As one high ranking General remarked the other day “We’re just one mistake away from WWIII”. That mistake would indeed be a catalyst for a very ugly time.