02/22/17

WHAT WILL THE FEBRUARY 1 FOMC MINUTES SUGGEST?

By: Kent Engelke | Capitol Securities

The Minutes from the February 1 FOMC meeting are released today. Will the monetary timetable be changed yet again? Currently the market is suggesting a 38% chance of an interest rate increase in March. Are these odds understated?

Historically, the Fed’s target for short term interest rates is nominally lower than the trend growth in nominal GDP (real GDP plus inflation). Real GDP is about 3.5%, thus suggesting the overnight rate is considerably lower than historical norms.

Recently, the “animal spirits” are stirring because of the potential of less burdensome financial regulations, tax reform and infrastructure spending.

The yield curve between the overnight rate and the 10-year Treasury is around 180 basis points versus the historical average of 106 bps since the 1950s.

The yield curve between the 10 and 30 year Treasury has been holding consistent, believing the Fed will keep long term inflation and inflationary expectations “well contained.”

Is the market correct, defined as benign inflationary pressures even as rates are very accommodative based upon historical norms? What happens to assumptions if monetary velocity accelerates, which it appears that such an acceleration is now occurring as evidenced by nascent increase in M2?

I cannot underestimate the potential risk at hand if the Fed remains too accommodative too long. Excess bank reserves are around $2 trillion versus the historical norm of $1 billion thus suggesting considerable liquidity for inflationary growth.

The national debt is about $20 trillion, yet the debt service requirements — the amount of money needed to service principle and interest — are around 1996 levels when the national debt was 25% of today’s size. If interest rates rose to “historical norms/relationships,” debt service would increase to around $1 trillion versus today’s level of $325 billion or about 30% of the budget.

Wow! How will this impact government spending and interest rates?

The only constants in life are change and reversion to the mean. Confidences levels — same as animal spirits — have increased by amounts not experienced since 1980.

One of the stated goals of the FOMC, via very accommodative monetary policy and QE, is to force all further out on the risk curve, a policy that may have created tomorrow’s crisis.

Will tomorrow’s headlines be of greater than expected growth that has “unanchored” inflationary expectations because of the loss of confidence in the Fed’s ability to provide price stability?

How will this impact stock valuations and bond prices?

It is against this backdrop I would prefer the Fed to err on the side of caution, defined as increasing rates now in an attempt to prevent tomorrow’s future crisis.

As indicated, the odds are only 38%, perhaps the result of seven years of missed Fed policy and horrific fiscal policy and regulations that killed the “animal spirits,” animal spirits that are now awakening.

Commenting upon yesterday’s market action, equities ended higher on global economic optimism and further gains in oil. Treasuries were essentially unchanged.

Last night, the foreign markets were up. London was up 0.12%, Paris up 0.11% and Frankfurt up 0.18%. China was up 0.24%, Japan down 0.01% and Hang Sang up 0.99%.

The Dow should open nominally lower as all are questioning the sustainability of the advance, an advance that was partially the result of the collapse of the cross correlated trades, perhaps the result of the Trump election which may have completely changed the rules. The 10-year is up 3/32 to yield 2.42%.

02/21/17

A POSSIBLE ALTERNATIVE EXPLANATION OF THE CURRENT ADVANCE

By: Kent Engelke | Capitol Securities

Bloomberg writes the Dow has had its largest advance under a new president since LBJ. Many are suggesting the market is priced to perfection and if Trump stumbles, so will the markets. I ask however, based upon many press accounts, Trump is already stumbling badly with the worst approval ratings of any early presidency.

Perhaps there is a different reason, one alluded to Friday and one that is perhaps difficult to quantify or give attribution. Last week the WSJ reported the cross correlated trade that has worked for the last 8-10 years has collapsed. There is attribution for this view, thus this statement should not be viewed as rhetoric or conjecture.

The question that cannot be definitively answered is why it has collapsed. Consensus declaratively stated a Trump victory would be horrific to the markets. I vividly recall futures plunging over 10% late in the evening of November 8th when it was all but assured Clinton lost.

Many times I have commented about the impact of algorithmic and cross correlated trading which represents about 90% of the volume according to the SEC. I also referenced an SEC study that stated 96% of all orders entered were never executed. I further stated there are about 10-12 electronic firms that have replaced the hundreds of “specialist firms,” electronic firms that use the same rules of the hundreds of former specialist firms to maintain market order.

Specialist firms are permitted to take naked short positions to maintain market integrity. Twenty years ago it would be close to impossible for one firm to dominate the market. Today there are 10-12 trading firms, replacing the hundreds of specialist firms, that can take naked short positions, thus suggesting the market “can be prone to market manipulation and imbalances,” quoting a late 2015 SEC study.

Can I suggest the reason for such a strong advance in the face of “accepted turmoil” of the Trump administration is that these naked shorts are now being covered because of economic necessity? Is this the reason why cross correlated trading strategy that has worked almost flawlessly for the past 8-10 years has completely collapsed?

Perhaps. About 14 months ago, I referenced a Federal Reserve report that contained a question that is now asked by regulators about the loan portfolios of the largest money center banks. Does your institution lend money to algorithmic or electronic trading firms?

It was against this backdrop last January that Barclays Bank wrote perhaps one of the greatest risks to the markets is a potential “melt up” because of unreported naked shorts that creates a liquidity crisis for a mega-sized financial firm.

I will readily acknowledge this is very Michael Moorish, perhaps stretching for a reason to explain why “the fail-safe” cross correlated trade has collapsed and to explain the strongest equity advance since LBJ as the Establishment has declared the Administration is operating in total chaos. Uncertainty and chaos normally creates negative market volatility.

Returning back to information that is quantifiable to explain the advance, data that I have already discussed at length, both business and consumer confidence is surging, optimism on earnings calls is high, growth proxies are humming, all of which has already caused a jump in retail sales and rising inflationary expectations.

In my view there is no question the political environment comes up in every discussion and to ignore such is equivalent to ignoring the impact of interest rates to valuation formulas.

What will happen this week?

Last night the foreign markets were mixed. London was down 0.18%, Paris up 0.36% and Frankfurt up 0.62%. China was up 0.41%, Japan up 0.68% and Hang Sang down 0.76%.

The Dow should open nominally higher on economic optimism as the economic activity in the euro area unexpectedly rose to an almost six-year high. The 10-year is down 10/32 to yield 2.46%.

02/21/17

Rep. Karen Bass Admits to Communist Party Mentor

By: Trevor Loudon | New Zeal

Los Angeles Congresswoman Karen Bass owes her career to a Communist Party USA mentor.

Rep. Karen Bass, second from left

According to the Congressional Record:

HON. KAREN BASS OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES, Monday, January 30, 2017;

Ms. BASS. Mr. Speaker, I would like to honor the life and memory of my friend and mentor, Oneil COneil Marion Cannon]], who passed away on January 20, days before his 100th birthday….

“Oneil was instrumental in supporting my own work as a community organizer early in my life, and without his help my life would have taken a very different path…

I would like to salute Oneil Cannon for his longstanding commitment to serving and uplifting others, and for a century of fighting to make the world a better place.”

Oneil Cannon

The late Oneil Cannon in question was a fixture of the Los Angeles left.

According to the Peoples World:

As a member of the Communist Party, he became the education director in the Southern California District, and a member of the Party’s Southern California and National Central Committees…

Oneil was committed to electing Black and Latino representatives at all levels of government. He helped to elect Augustus Hawkins, Tom Bradley, Ed Roybal, Diane Watson, Maxine Waters, and Karen Bass.

Cannon campaigned for Barack Obama in 2008, and wept with joy along with millions of others when he was elected. He died peacefully, wearing one of his Obama T-shirts.

With decades of communist activity under her belt, Karen Bass would fail an FBI background check to work as a realtor or a school bus driver.

But that’s okay, there are no security checks to serve on any Congressional Committee: not the Armed Services, not Homeland Security, not even the Intelligence Committee.

If American voters understood how bad the infiltration is they would be horrified. There are many, many more like Karen Bass, trashing your Constitution every day.

To really understand how bad the problem is, check out my movie The Enemies Within.

02/21/17

Confirmed! Trevor Loudon speaking at CPAC 2017!

New Zeal

Trevor will be speaking on the main stage at CPAC 2017, during a panel discussion moderated by Ginni Thomas and featuring Sheriff David Clarke, Clare Lopez of the Center for Security Policy and Maureen Ohlhausen, as the Federal Trade Commission’s acting chairwoman.

Thursday February 23, 2017 at 12:10 pm – I hope to see many of you there.

02/20/17

How CNN Recycled Last Year’s Fake News

By: Cliff Kincaid | Accuracy in Media

If you have any doubts about the basic dishonesty of CNN, consider how the channel not only broadcasts fake news but recycles it.

Remember that CNN “broke” the story about the “Russian Trump dossier” compiled by an ex-British intelligence agent for Hillary Clinton supporters. The document was opposition research against then-candidate Donald Trump, now President.

Despite the lack of any corroboration from any source, including hostile anti-Trump media or the U.S. Intelligence Community (IC), after several months of secret efforts, CNN is now claiming in a February 10 story that its U.S. intelligence and investigative sources say that “some aspects” of the 35-page dossier “for the first time” have been “corroborated.”

Let’s examine this startling claim.

CNN is adamant as to how this is the very first shred of any purported confirmation of the “Trump dossier” ever to be found by U.S. official agencies:

Until now, US intelligence and law enforcement officials have said they could not verify any parts of the dossier.”

“The corroboration, based on intercepted communications, has given US intelligence and law enforcement ‘greater confidence’ in the credibility of some aspects of the dossier as they continue to actively investigate its contents, these sources say.” [emphasis added, here and elsewhere]

Yet these very same “aspects” were reported in the press in September 2016 as then under active investigation by “U.S. intelligence and law enforcement.” The latter are typical buzzwords for the CIA and FBI, which are indeed two of the main agencies CNN asked for official comment five months later in February 2017.

Did U.S. intelligence “forget” about their own investigations? Or did the CIA in particular simply wait several months and pretend ignorance of the September investigations in order to make an “aha” discovery that would be reported in a leak as sensational “breaking news” in February?

According to CNN, the intercepted data allegedly confirm that “some…conversations described in the dossier” actually “took place” and were between named Russians and/or foreigners. These allegedly involve confirming the existence of conversations between the “same individuals on the same days and from the same locations as detailed in the dossier” but do not confirm any of the “salacious allegations” about Trump (the purported lurid “sex perversions”).

But the “Trump dossier” is missing critical factual details such as many essential names, dates and places. So what is CNN talking about on the “dossier” detailing “same days” and “same locations?” The “Trump dossier” is almost devoid of any dates and locations of meetings of key figures, making its allegations suspiciously difficult to verify.

There are only two meetings in the entire 35-page “Trump dossier” with dates and locations of such alleged top-level meetings or conversations:

  1. Russian oil company head Igor Sechin supposedly meeting with sometime alleged Trump adviser Carter Page in Moscow about July 7-8, 2016; and
  2. Putin’s alleged meeting with ally and ex-ruler of Ukraine, Yanukovych, near Volgograd on Aug. 15, 2016.

A New York Times report similar to CNN’s indeed confirms that Page and Yanukovych are the targets of investigation using intercepted phone conversations, and that the “Trump dossier” is a major subject of review.

But the fact of Carter Page’s visit to Moscow was public news in a Reuters dispatch on July 7, 2016, and needed no six months of exhaustive review of “intercepted communications” to verify it. All one had to do was just Google it.

By September 23, 2016, Yahoo News was reporting that, based in part on U.S. intelligence sources who had “actively monitored” (or intercepted) Russian communications, the specific alleged Sechin-Page meeting was under investigation by U.S. intelligence sources. This, again, was easily discovered by Googling it. If the CIA “forgot” that it “knew” about this “monitoring,” officials could just Google the Yahoo story to help them “remember” its own investigation.

The same major media that fell all over themselves claiming they were so scrupulous in not publishing any of the “Trump dossier”—because they could not confirm any of it—in fact were leaking material from the “dossier” in veiled and not-so-veiled references as far back as The New York Times on July 29, 2016.

A Yahoo News report on September 23, 2016, reads like a long disguised excerpt from the July 19 report in the “Trump dossier” on the Page trip to Moscow, combined with the Reuters dispatch. Yahoo wrote that U.S. officials had received intelligence reports that during his trip to Moscow in July, Page met with Igor Sechin, a close Putin associate and head of Rosneft, Russian’s leading oil company, “a well-placed Western intelligence source tells Yahoo News.” Sechin supposedly discussed the issue of lifting U.S. sanctions against Russia, “the Western intelligence source said.” The same source said that Page met with another top Putin aide while in Moscow, named Igor Diveykin.

The “Trump dossier” says exactly the same things that appeared two months later in Yahoo News:

TRUMP DOSSIER, July 19, 2016, Report:

“Trump advisor Carter Page holds secret meetings in Moscow with Sechin and senior Kremlin Internal Affairs official, Divyekin [sic]…Sechin raises issue [of] lifting of western sanctions against Russia….Speaking in July 2016, a Russian source close to Rosneft President, Putin close associate and US-sanctioned individual, Igor Sechin, confided the details of a recent secret meeting between him and…Carter Page.”

(Steele report, dated July 19, 2016, all-caps emphasis removed)

Yahoo’s “well-placed Western intelligence source” very likely may be Christopher Steele, the ex-British MI6 intelligence agent, who was hired by Clinton financial backers to produce the “Trump dossier.”

Yahoo News went on to say that investigations of Carter Page and his Russian contacts were under way, including the “talks” that were being “actively monitored and investigated,” which sounds like the “monitoring” of intercepted communications.  Again, remember this is September 2016, not a sudden “first time” discovery in February 2017:

Yahoo News, September 23, 2016:

“The activities of Trump adviser [sic] Carter Page, who has extensive business interests in Russia, have been discussed with senior members of Congress during recent briefings about suspected efforts by Moscow to influence the presidential election, the sources said. After one of those briefings, Senate minority leader Harry Reid wrote FBI Director James Comey, citing reports of meetings between a Trump adviser (a reference to Page) and ‘high ranking sanctioned individuals’ in Moscow over the summer as evidence of ‘significant and disturbing ties’ between the Trump campaign and the Kremlin that needed to be investigated by the bureau.

“… a congressional source familiar with the briefings…added that U.S. officials in the briefings indicated that intelligence reports about the adviser’s [Carter Page’s] talks with senior Russian officials close to President Vladimir Putin were being ‘actively monitored and investigated.’ [Emphasis added.]

“A senior U.S. law enforcement official did not dispute that characterization when asked for comment by Yahoo News.”

White House Press Secretary Sean Spicer commented on this latest report on February 10, stating that “We continue to be disgusted by CNN’s fake news reporting.”

The CNN report is indeed fake news, old recycled fake news, dished up as brand new.

Why has there been no apparent progress in the U.S. intelligence and law enforcement investigation since September 23, 2016, given that this latest leak tells us nothing more than what was reported in September? Could it be that when something is fake one cannot find out anything more because there is nothing more to find? The tiny grain of truth around which the fake has been built (such as Page’s actual Moscow visit) was easily found in the original Reuters news dispatch.

Finally, something must be said about the hypocritical reversal of the media on what they were calling the rise of the “surveillance state” and the assault on our civil rights with the revelations of former NSA analyst Edward Snowden.

Now, suddenly, all that concern for civil rights is silenced when it comes to the much more intrusive actual intercepted conversations of U.S. citizens who happen to be connected to now-President Trump. Trump’s people apparently have no civil rights as far as the media and the “surveillance state” itself are concerned.

02/19/17

The Roar of the Forgotten Man and Woman

By: Michael Johns

On February 14, 2017, I spoke to the Cornell Political Union at Cornell University in Ithaca, New York, on the promise of Donald Trump’s Presidency. My lecture, “Trumpism Can Make America Great Again,” follows:

Last time I was here was over a year ago when my son Michael was looking at Cornell. He loves this school and this organization—and anything he loves, I do too. So thanks to all of you for the work you do, the discussion you facilitate, and the important contribution you make to this great institution. Cornell is one of the world’s premier universities, and your intellectual curiosity and search for answers to our world’s and nation’s problems are a big contribution to that greatness.

On the drive up here tonight, I happened to see how this university describes itself on its Twitter feed. It’s a great description: “Teach tomorrow’s thought leaders to think otherwise and create knowledge with a public purpose.” Tonight I’m going to do exactly that: I’m going to try to get you to think a little differently—to see what over 60 million Americans saw when they voted for Trump, and we’ll do all of this with the spirit that we’ll use this knowledge to serve the higher public purpose of enhancing the greatness of our nation, which requires of each subsequent American generation that they defend and continually improve it for all Americans.

——————————————————

We have just undergone the closest thing to a revolution in American politics as one can have in our Constitutional Republic, and tonight I will attempt to explain it objectively. I will speak tonight not to the few of you here who may already support Trump, nor those of you who consider yourselves conservatives or Republicans, but to the vast majority here tonight that I’m sure do not. These are the facts and sentiments that led to an electoral outcome you no doubt did not want and did not predict—but I’m convinced need to understand.

I come tonight not to defend Trumpism, even though you will find no more passionate advocate for it. Literally since his announcement on June 16, 2015, I defended him consistently on television, radio and in many forums—and I sought to defend or at least explain him to those prone not to hear or process his important message.

So I come to Cornell tonight not to defend Trumpism but to explain it.

For eight years and maybe longer—the totality of your adult lives in fact, this nation was headed in a decidedly left of center and globalist direction. Under this recent administration, we saw the problems of other countries as inherently ones we were obligated to solve. In many cases, we even wrongly blamed ourselves for these problems. We entered into trade agreements that worked well for other nations but failed the American worker. We opened our nation to legal and illegal immigrants—and bent over backwards to accommodate their needs, desires and cultures but never considered the impact we were having on our citizens.

This created what Trump correctly labeled in his Republican Convention acceptance speech “the forgotten man and woman”—the working American whose economic plight worsened on the watch of Obama and whose country became less identifiable to him and her. And this past November 8, the “forgotten man and woman” had seen enough—and their voice was heard loudly.

What inspired all this passion in these forgotten men and women?

Let me deal tonight with facts:

Employment: All of you have probably heard and followed the employment trends announced each month and quarter by the Department of Labor’s Bureau of Labor Statistics. You heard, for instance, that unemployment under Obama seemed to be stagnant, or even reduced. And it was always reported in single digits. In the final month of Obama’s presidency—December 2016—it was reportedly 4.9 percent, which seems not unreasonable.

But these numbers excluded the biggest story of American unemployment—the long-term unemployed and those who’d simply given up looking for work. While the short-term unemployment came down, it was only because many of those short-term unemployed Americans moved into the long-term category and ceased being reported in the primary BLS monthly survey number, which is really just a poll subject to all the inaccuracies one might see in any poll.

The employment reality in the country is actually much worse than reported. In fact, there has really been essentially zero job creation for native American citizens since 2000. The total number of Americans holding a job increased 5.7 percent from 2000 to 2014. But if you back out jobs taken by legal and illegal immigrants, the number of Americans holding jobs actually decreased 17 million between 2000 and 2014. When the longer-term unemployed are included, the number of jobless Americans is not 4.9 percent. It’s at least almost twice that—9.5 percent, and some believe considerably higher than even that. On Obama’s watch, it’s a fact that a bad employment situation got even worse.

Seldom reported in these routine “official” employment statistics was the fact that, under Obama, the number of Americans not in the labor force kept creeping upward. In December 2016, this number of Americans not in the labor force reached an all-time high: 95,102,000. That’s nearly thirty percent of our entire nation. On jobs, the “forgotten man and woman” has been hurt and is hurting.

Continue reading

02/18/17

#StandWithCaleb: Student Caleb O’Neil suspended for filming professor’s anti-Trump tirade

By: Renee Nal | New Zeal

Orange Coast College students, including those in the Feminist Club, rally in support of instructor Olga Perez Stable Cox during a campus rally in Costa Mesa, California, December 12, 2016. A video clip of Cox telling her human sexuality class that electing Trump was an act of terrorism has gone viral. A student said the teacher asked all Trump supporters to stand up so she could, “Show the class who to watch out for” (Photo by Jeff Gritchen, Orange County Register/SCNG)

Professor Olga Perez Stable Cox called Donald Trump a “white supremacist,” Mike Pence “the most anti-gay human being in the country,” and said “the election of Donald Trump was an act of terrorism.” A student said the teacher asked all Trump supporters to stand up so she could, “Show the class who to watch out for.”

But it is a student in her class, Caleb O’Neil, who was suspended for daring to record the Human Sexuality teacher’s unsolicited and over-the-top political propaganda.

The professor claims that she was a victim who received mean messages on social media after the video aired on the Bill O’Reilly show on Fox News.

As reported by the Washington Post,

“Her inbox and voice mail were filled with hundreds of threatening messages that referred to her as ‘libtard,’ ‘Marxist,’ ‘nutcase,’ ‘vile leftist filth’ and a ‘satanic cult member.’

The Orange Coast College “…ruled that they would be suspending Caleb for one full semester and one summer semester. Caleb will also have to write a 3 page essay on everything that happened with a separate apology letter for the professor, and if he returns to campus he will be put on Disciplinary Probation for a semester” according to a press release by Freedom X, who is representing Caleb in his appeal.

Read the appeal here. 

Caleb is FIGHTING BACK and needs your help for his legal defense. If you cannot help with a small/large donation to Caleb’s GoFundMe page, please use social media to spread the word and please let the campus know how you feel in a respectful manner (contact details below).

Caleb O’Neil (center) with attorney Bill Becker from Freedom X (right).

Here are ways to help:

  • Donate to Caleb’s GoFundMe here.
  • Support the work of FREEDOM X by sending a tax-deductible donation here: 11500 Olympic Blvd., Suite 400 | Los Angeles, CA 90064
  • Contact the campus and provide respectful input:
    • OCC President Dennis Harkins
      [email protected]
    • Dean of Student Services Dr. Derek Vergara
    • [email protected]
    • Olga’s Union President Rob Schneiderman
      [email protected]
  • Share Caleb’s story on social media. Please use the hashtag #StandWithCaleb.
  • Ask your local news/newspapers/talk shows/radio shows / mainstream news outlets to REPORT THIS STORY!

Here is the video:

02/18/17

The Trump Revolution Will Not Be Televised

By: Lloyd Marcus

Folks, take a deep breath. That unusual faint sweet aroma in the air is called “freedom.” It is coming back folks. For 8 years, even those who are politically clueless subconsciously felt their freedoms slipping away. Americans instinctively knew publicly expressing religious beliefs, principles and traditional norms once considered mainstream could cost them everything today.

My wife Mary’s mentor, the late Mary Kay Ash of MK Cosmetics said, “The speed of the leader is the speed of the gang.” In other words, the leader sets the tone.

Unarguably, President Obama set a you-had-better-keep-your-mouth-shut and go-along-with-political-correctness tone for America. We all knew and felt it. Obama used the IRS http://bit.ly/2l4NkIi, DOJ http://bit.ly/2lgndAm and EPA http://bit.ly/1QIxuyL to economically and politically beat the crap out of and even jail anyone with the cojones to oppose him leading the Left’s mission to fundamentally transform America.

This is the reason why the Left is losing their minds over Trump winning the presidency. Freedom folks! The Left thought they would have us in mental and emotional chains for at least four more years under President Hillary.

Trump’s election ushered in a new tone for America. Feeling emboldened, people are pushing back against the tyranny of political correctness by just saying, “no”. However, you will not hear this widely reported in the Leftist controlled mainstream media. Panicked, the Left is desperately and frantically working to keep us believing that their extreme ideas are mainstream majority opinions.

This is why for the next 4 years, half a dozen protesters showing up to oppose Trump or his policies will be treated like a major news event by the media. Relentlessly, the Left will sell us their lie that Americans hate Trump and what he is doing. Therefore, the Trump revolution will not be televised.

Meanwhile, Americans have begun restoring our country’s greatness.

Note the glaring disparity in the media coverage of these two January events in Washington DC. The Leftist Women’s March which celebrated vulgarity http://bit.ly/2j9FJsP and depravity http://bit.ly/2kLx941 received widespread media praise and coverage. The largest March for Life rally in history received very little coverage. http://fxn.ws/2jYDFT4 Our revolution will not be televised.

I bet few of you know that Americans boycotting Target for irresponsibly allowing burly men in restrooms with our moms, sisters, wives and daughters cost Target $10 billion. http://bit.ly/2koZU3a Our revolution will not be televised.

I suspect a majority does not know Trump undid Obama’s ban, clearing the way for construction of the Keystone XL oil pipeline and the Dakota access pipeline. http://bit.ly/2kLMMIL Can you say more jobs boys and girls?

Oh, I forgot that Leftist schools have decreed that teachers should no longer address students as “boys and girls” on the grounds that gender distinctions are hateful, derogatory, insensitive, intolerant, bigoted and mean. http://fxn.ws/2aSCFyy I’m confident that Americans tolerating such nonsense has come to an end. Our revolution will not be televised.

Succinctly, years ago I was invited to a screening of the documentary, “Waiting for Superman” http://bit.ly/Lb02S5 which exposed the corruption of our educational system. Unfortunately, with Leftists controlling the WH, the media and our schools, nothing changed. Our new Secretary of Education, Betsy DeVos said, “If a school is troubled, or unsafe, or not a good fit for a child…we should support a parent’s right to enroll their child in a high-quality alternative…” http://bit.ly/2jJIwHH Them’s fightin’ words to Leftists.

Note DeVos said the parent’s child rather than the federal government’s child. For years, Leftists have been allowed to confiscated our kids for indoctrination. This explains the Left’s intense efforts to criminalize home-schooling; arresting parents and seizing their kids. http://bit.ly/2l14CWW Meanwhile, the fake news media is despicably portraying DeVos as a religious nut. Our revolution will not be televised.

The internet is abuzz over singer Joy Villa courageously wearing a dress to the Grammy Awards that boldly read, “Make America Great Again”. As expected, Leftists have viciously trashed Villa calling her a hater. Leftists calling love for ones country hate testifies to their perverse thinking. Meanwhile, Villa’s record sales have shot through the roof. Clearly, a large number of Americans agree with Villa. http://fxn.ws/2kZGCmK

President Trump has ushered in a new tone for America; a revolution of patriotism, pride and freedom. Do not expect to see this truth reflected in the media; quite the opposite. Our revolution will not be televised.

Lloyd Marcus, The Unhyphenated American
Author: “Confessions of a Black Conservative: How the Left has shattered the dreams of Martin Luther King, Jr. and Black America.”
Singer/Songwriter and Conservative Activist
[email protected]
http://www.lloydmarcus.com/

02/17/17

The Denise Simon Experience – 02/16/17

The Denise Simon Experience

Hosted by DENISE SIMON, the Senior Research / Intelligence Analyst for Foreign and Domestic Policy for numerous flag officers and intelligence organizations.

THIS WEEK’S GUESTS: JOEL HARDING / JOE DUGAN / ASHLEY McGUIRE

BROADCAST WORLDWIDE:
THURSDAYS: 9:00 PM (eastern) on:

WJHC – Talk 107.5FM
WDDQ – Talk 92.1FM
WLBB – News Talk 1330AM

And on her Digital Flagship Station: RED NATION RISING RADIO – The NEW Dominant Force in Conservative Talk Radio

#RedNationRising #Radio

02/17/17

Compact for America’s Scheme for Pre-ratification of a Massive New Taxes Amendment

By: Publius Huldah

Do you remember the public discussions which went on for years about the proposed equal rights amendment to our federal Constitution?  That’s how it’s supposed to be before an amendment is ratified:  The People get an opportunity to hear the arguments, discuss it among themselves and their state legislators, and reject amendments which are bad.

What if someone found a way to circumvent this pesky public discussion, and get an amendment ratified before The People found about it?  And even before the state legislators who ratified it found out what they had done?  And what if this amendment delegated massive new taxing powers to Congress?

Such a scheme has been developed by Compact for America (CFA). They present their already prepared compact legislation to state legislators as a “balanced budget amendment”; and urge them to get it passed by their state legislature.

The provisions which authorize Congress to impose the new taxes, and which provide for pre-ratification of the new taxes amendment, are buried in some 15 pages of single-spaced excruciatingly convoluted and boring writing.  Rare is the legislator who has the time to wade through the verbiage and figure out what it says. 1

Once three fourths of the States have passed CFA’s compact legislation, the new taxes amendment is thereby ratified.

So that’s how an amendment to our Constitution which delegates massive new taxing powers to Congress can be ratified before The People know what has been done to them; and before the state legislators who did it find out what they have done to the American People.

The scheme has already been passed by state legislators in Alaska, Georgia, Mississippi, and North Dakota; has been filed in Missouri as SB 13; and is now pending in Arizona (HB 2226), where it passed the House on February 9, 2017, 2 and is now before the Senate.

Let’s look at the particulars of the compact legislation.

I
HB 2226 does nothing to control federal spending or “balance the budget”

Section 1 of the Compact [page 2, line 16 of the pdf edition] allows Congress to spend as much as they take from us in taxes or add to the national debt!  But that’s what Congress has been doing!

Sections 2 & 3 [page 2, lines 20-37] permit Congress to raise the debt whenever 26 States agree.

Section 4 [page 2, lines 38 et seq.] is a joke:  Who believes Congress will impeach a President for refusing to “impound” an appropriation made by Congress?

II
CFA’s BBA is an actually a grant of MASSIVE new taxing powers to Congress.

The true purpose of the compact legislation is hidden behind promises such as, “cutting federal spending”, “balancing the budget”, and “scaring Congress”.  The true purpose of the Compact is to delegate to Congress MASSIVE NEW TAXING POWERS.  Specifically, it authorizes Congress to impose a national sales tax and a national value added tax (VAT).

This is where the grant to Congress of the new taxing powers is set forth:

  • Section 5 [page 3, lines 4-6] permits Congress, by a 2/3 vote of each House, to impose a new or increased “general revenue tax”.

 

  • Section 6 [page 3, lines 24-26] defines “general revenue tax” as “any income tax, sales tax, or value-added tax levied by the government of the United States…”

There it is!  All Congress needs to impose a national sales tax and/or a national VAT tax (in addition to the income tax) is a 2/3 vote in each House!

Section 5 also permits Congress, by a simple majority of each House, to impose a “new end user sales tax” which would replace the federal income tax.  But nothing requires Congress to impose a “new end user sales tax” to replace the income tax.

It will be up to Congress to decide whether to impose a new national sales tax and/or VAT tax on top of the existing income tax (if they get 2/3 vote of each House); or whether to impose a new end user sales tax to replace the income tax (if they get only a simple majority in each House).

So! CFA’s version of a BBA is not about “balancing the budget”, or “scaring Congress”, or “reducing federal spending”.  It’s about giving the federal government massive new taxing powers!

A value-added tax is a “turbo-charged national sales tax on goods and services that is applied at each stage of production, not merely on retail transactions” and raises a “gusher of revenue for spendthrift governments worldwide.”

III
When State Legislatures pass compact legislation such as HB 2226, they are actually pre-ratifying the new Amendment to the US Constitution which grants these massive new taxing powers to Congress.

Please note:  If Arizona passes HB 2226, Arizona IS RIGHT THEN AND THERE RATIFYING THE AMENDMENT.  I’ll show you:

HB 2226 says in Article IV, Section 7 (e) of the Compact [page 6, line 43, et seq.]:

When any Article of this Compact prospectively ratifying the Balanced Budget Amendment is effective in any Member State, notice of the same shall be given together with a statement declaring such ratification and further requesting cooperation in ensuring that the official record confirms and reflects the effective corresponding amendment to the Constitution of the United States…”  [boldface mine]

Article IX, Section 1, of the Compact [page 11, line 41 et seq.] says:

Each Member State, by and through its respective Legislature [passage of HB 2226], hereby adopts and ratifies the Balanced Budget Amendment.”

There it is:  If Arizona passes HB 2226, Arizona is thereby ratifying an amendment to the US Constitution which delegates massive new taxing powers to Congress.

When 38 States have passed legislation like HB 2226 – and when Congress approves it, 3 our Constitution is thereby AMENDED and Congress now has constitutional authority to impose a new national sales tax and a national VAT tax – even while keeping and increasing the income tax.

The provisions of the compact which deal with a convention – Articles V through VIII – are a smokescreen which obscures from state legislators the fact that when they pass legislation like HB 2226, they are pre-ratifying the amendment to our federal Constitution.

The convention is a formality – a free trip at taxpayers’ expense.

IV
What’s the Solution?

Don’t feed the beast by giving it massive new taxing powers.  The solution is to downsize the federal government to its enumerated powers.

Our Constitution already limits federal spending to the enumerated powers – learn what those powers are, and enforce the Constitution we already have.  

And use your heads!  You who foolishly believe that a BBA [whether CFA’s version or another version] will force Congress to reduce spending, know this:  a BBA is a mandate for Congress to increase taxes, among other horrors. 4

Endnotes:

[1] Legislators don’t have time to read the bills they vote on. That’s why they have bill summaries. The Compact legislation filed in Arizona has two bill summaries: HERE and HERE.  Can you find where Arizona Legislators are informed they are pre-ratifying a new taxes amendment to the US Constitution if they pass the compact legislation?

2 Click on this link: see the sponsors and the votes.  Do they know what they have done?

3 Pursuant to Article I, §10, last clause, US Constitution, CFA’s Compact is not effective unless Congress approves it.  Will Congress approve a Compact Amendment which delegates massive new taxing powers to them?

4 The Arizona House also passed on Feb 9, 2017, HCR 2013 an application for an Article V convention which purports to be limited to proposing a “balanced budget” amendment (BBA).  Do the sponsors and those who voted for it not know that a BBA does the opposite of what they have been told – that it removes the enumerated powers limitation on federal spending and creates a completely new constitutional authority to spend on whatever the feds want?   See THIS short article.

People of Arizona!  Get with your State Senators and put a stop to these reckless applications for an Article V convention.  And to show that there is no limit to the damage a legislative body can do on one day, your Representatives also passed HCR 2010, the COS application for an Article V convention. The real agenda of the movers and shakers is to put our existing Constitution on the executioner’s block – and you won’t like the new Constitution.