01/19/18

Will 2018 Be The Year Inflation Returns?

By: Kent Engelke | Capitol Securities

Shutdown and inflation fears weighed nominally on equities; equities which in almost every measure are over bought and perhaps overvalued.

I think the biggest story of 2018 will be the return of inflation, the result of stronger than expected growth. In every dimension, the economy is accelerating. Consumption indicators demonstrate that retail sales are rising by the greatest pace since 2003. Business investment is strong and is expected to surge with the immediate expensing of expenditures. Export indicators are rising and are expected to remain strong given the weakness of the dollar.

Against this backdrop, the labor market is continuing to tighten as an argument can be made there is a shortage of qualified workers. The combination of rising wages, demand pull and commodity inflation, all the result of today’s environment suggests inflation will rise in 2018.

The question at hand is whether or not profit margins will erode, that result in these higher costs, amplified by a potential rise in interest rates which may affect valuations.

Against this backdrop, I reiterate my long held belief that funds will gravitate back into the real economy as economic activity increases and interest rates rise.

What will occur today?

Last night the foreign markets were up. London was up 0.27%, Paris was up 0.44% and Frankfurt was up 1.06%. China was up 0.38%, Japan was up 0.19% and Hang Sang was up 0.41%.

The Dow should open nominally higher on the belief a government shutdown can be avoided. Financials can potentially trade higher on the news that the Fed is finishing a proposal to reduce bank leverage, a proposal according to most that could free up billions of dollars for banks. Will this increase the money multiplier which in turn will accelerate the economy? If history is of any guise, the answer is yes. The 10-year is unchanged at 2.63%.

01/19/18

Reversing the Damage Done by Chairman Barack

By: Cliff Kincaid

Friday’s March for Life, 45 years after the Supreme Court legalized abortion on demand, demonstrates how difficult it is to reverse the effects of evil decisions and policies. The fact that complete victory is not immediately at hand does not cause true believers to give up the fight. That’s why thousands will turn out for the 45th Anniversary of Roe v. Wade.

Overturning Marxist or “progressive” policies is a difficult challenge when much of the media and even some prominent members of your own political party are against you.  But the economic and financial turnaround under President Trump has already been amazing. Trump’s record of appointing conservative and pro-life judges is also impressive. Some pro-lifers have declared Trump is the most pro-life president in modern history.

Economically, one of Trump’s major challenges is to reverse eight years of Obama selling out our economic base and America’s workers to Communist China. If progress is made here, we may also see progress in other areas, such as reversing the social and cultural breakdown that we see all around us.

Sensing a confrontation is in the works, Obama in November rushed over to Beijing to clink glasses with Chinese dictator Xi Jinping, General Secretary of the Communist Party of China. The Chinese media hailed the reunion as a meeting of “veteran cadre,” an extraordinary  term that means the former U.S. President has been operating as a communist agent or operative. We had warned about this before Obama was elected, when we disclosed his relationship with Communist Party USA operative Frank Marshall Davis. Last year we published two books, Comrade Obama Unmasked and Red Star Rising, explaining the significance of America’s first Marxist president.

On January 11, 2018, Commerce Secretary Wilbur Ross formally submitted to Trump the results of the Department’s investigation into the effect of steel mill product imports on U.S. national security. The Commerce Department notes that, after this submission, by law, the President has 90 days to decide on any potential action based on the findings of the investigation.

Trump trade adviser Peter Navarro has linked U.S. trade policies under Obama and other presidents to the loss of hundreds of thousands of manufacturing jobs and the resulting economic and social costs. White House documents published by Navarro, in the form of PowerPoint slides, link economic problems to social problems, including a higher abortion rate, more drug use, higher crime, and more homelessness.

National security is also an issue. United States Steel Corporation says, “With the completion of the Department of Commerce’s investigation, United States Steel Corporation encourages President Trump to take swift and decisive action.  Our nation cannot afford to allow the continued rise of foreign imports that undermine America’s capacity to produce the steel necessary for our country’s national and economic security.”

It is fitting, in this context, to note that House Speaker Paul Ryan (R-Wis.) is one of the featured speakers at Friday’s March for Life. Ryan understands both the problem of abortion as well as deindustrialization. The 2017 book, Janesville: An American Story, by Amy Goldstein, tells the story of Ryan’s hometown and the destruction of its industrial base. The book helps explain why Trump won the votes of the workers in 2016.

The media will claim that Trump’s anticipated actions against China will undermine the global trading system. But remember that China, under Obama, flooded the U.S. with cheap imports, while conducting cyber warfare against America and stealing our technology.  Steven W. Mosher, president of the Population Research Institute, has written a new book, Bully of Asia: Why China’s Dream is the New Threat to World Order, explaining the dimensions of the China threat.

As Trump is predictably pummeled in the press, think about why Obama’s recent visit with his fellow “veteran cadre,” Xi Jinping, was given such fawning attention. We actually have photographic evidence of Obama meeting with Xi, with reports indicating they went behind closed doors to discuss their strategy against America. Obama’s visit with Xi came “at a time when the Trump administration was attacking China’s economic practices,” noted the British Guardian. But there’s much more to this story. Their closed door meeting smells of collaboration, even collusion.

As president, Obama spokeswoman Katie Hill said in a statement, Obama forged “a close and cooperative partnership with President Xi on issues ranging from growing the global economy to combating climate change, and he looks forward to catching up with his former counterpart.” It sure looks like “growing the global economy” benefited China.

Nevertheless, Trump receives non-stop abuse while the Obama name is being put on schools, libraries, streets, and highways across the United States. Barack Obama’s birthday has been declared an Illinois holiday. Pro-Obama books are being released with regularity.

It is increasingly difficult for conservative organizations like America’s Survival, Inc. and conservative personalities to tell the truth about Obama’s legacy. Matt Margolis, author of  The Worst President in History: The Legacy of Barack Obama,  has been encountering problems since he started promoting his follow-up, the forthcoming, The Scandalous Presidency of Barack Obama. After he took out ads for the book, he was banned from Facebook groups for six days with no explanation.

Perhaps the high-tech social media giants are doing to America what the Chinese Communist Party is doing to China. “Under President Xi,” says the group Reporters Without Borders, “Internet surveillance has come to be practiced on an industrial scale and the Great Firewall keeps 750 million Internet users away from foreign news websites. At least 2 million people are employed to censor and spy on them, that is to say, one censor for every 375 Internet users. Several people received jail sentences last year for comments posted online or made during private chats on messaging services.”

It looks like Facebook may be testing its own version of the Great Firewall in the U.S., in order to protect Chairman Barack and his legacy. Obama is being transformed into a cultural icon and even mystical historical figure. Negative views are being censored.

The emerging Cult of Obama, protected by the media, is starting to look a lot like the Cultural Revolution of Chairman Mao. These Marxists will not give up their power without a fight. In fact, they are expanding their power in an effort to silence our voices.

01/19/18

FISA Abuse By DOJ And FBI Shocks House: ‘Worse Than Watergate’

By: Terresa Monroe-Hamilton

This is disturbing and sounds very damning. Members of the House on Thursday said they viewed a “shocking” classified memo allegedly detailing abuse of the Foreign Intelligence Surveillance Act (FISA) by senior Justice Department and Federal Bureau of Investigations officials in relation to the investigation of the Trump campaign and called for it to be declassified and made available to the public immediately. Many House members were alarmed by what they read in the memo. Several said there is no doubt anymore whatsoever that the abuse by Obama, the DOJ and FBI against President Trump and his campaign was far worse than Watergate ever was.

“It’s troubling. It is shocking,” Rep. Mark Meadows (R-NC) told Fox News. “Part of me wishes that I didn’t read it because I don’t want to believe that those kinds of things could be happening in this country that I call home and love so much.” I know, but we have all known for a long time that these things were indeed happening. It’s time to drag all of this into the open and let Americans see what has been going on once and for all before it is too late. “The facts contained in this memo are jaw-dropping and demand full transparency. There is no higher priority than the release of this information to preserve our democracy,” said Rep. Matt Gaetz (R-FL), a member of the Judiciary Committee, which oversees the DOJ and the FBI.

Rep. Steve King (R-IA) went so far as calling what he saw in the memo “sickening” and said it was “worse than Watergate.” King is one of the most honest men I know and that is very strong language from him. He would not say it if it were not true. Rep. Ron DeSantis (R-FL), another Judiciary Committee member, called the memo “deeply troubling” and said it raises questions about the “Obama DOJ and Comey FBI.” That one is all over Twitter this morning as well. “The classified report compiled by House Intelligence is deeply troubling and raises serious questions about the upper echelon of the Obama DOJ and Comey FBI as it relates to the so-called collusion investigation,” he tweeted. “You think about, ‘is this happening in America or is this the KGB?’ That’s how alarming it is,” Rep. Scott Perry (R-PA) told Fox News. “It is so alarming the American people have to see this,” Rep. Jim Jordan (R-OH), a senior member of the Judiciary Committee, also told Fox.

All of this happened after Republican members of the House Intelligence Committee, whose investigators compiled the classified memo, voted Thursday to make it available to all House members. Every Democrat on the committee voted against it. Figures. Then House members viewed the memo in its entirety, hence the shock and outrage. Matt Gaetz (R-FL) says the contents of the memo could very well lead to the firing and possible prosecution of senior DOJ and FBI officials. “I think that this will not end just with firings. I believe there are people who will go to jail,” he said on Fox News’ Hannity. Gaetz stated that this also explains why Senate Judiciary Committee Chairman Chuck Grassley (R-IA) and Judiciary Subcommittee Chairman Lindsey Graham (R-SC) recently pinpointed the Fusion GPS dossier author Christopher Steele for a criminal investigation. “I think there will be criminal implications here,” Gaetz added.

The memo reportedly contains information about the dossier put together by Fusion GPS that allege Trump and members of his team colluded with Russians in the 2016 election, according to a report by investigative journalist Sara Carter. She has been all over this from the beginning. In October, we found out that Hillary Clinton’s campaign and the Democratic National Committee funded the fake dossier so it could be used against President Trump. Even though this was political in nature, it was supposedly used by the FBI to obtain a FISA warrant to spy on Trump campaign adviser Carter Page. Who in my book is a Russian plant, but the way this was handled was unethical and illegal. Page should have been gone after on his own dirty dealings with the Russians, not like this. He obviously targeted Trump for them. Instead, they have attempted to tie Trump to Page and call him guilty as well. It’s a set up. And in fact, they have not proven Page guilty as of yet, although I am certain he is.

The Obama administration went all in to undermine Trump’s presidential campaign. They employed “police state” tactics that included spying on the Trump campaign. Members of the public and Congress are now calling for the document to be declassified and released to the public. DeSantis said the House Intelligence Committee, pursuant to House rules, should vote to make the report publicly available as soon as possible. “While the report is classified as Top Secret, I believe the select committee should, pursuant to House rules, vote to make the report publicly available as soon as possible. This is a matter of national significance and the American people deserve the truth,” he said. “Rule X of the House Rules allows the select committee to publicly disclose any information in its possession after a determination by the select committee that the public interest would be served by such disclosure.”

According to House Rules, if the House Intelligence Committee votes to make the report public, President Trump would have five days to issue an objection. If he objected, it would take a vote on the House floor. I highly doubt the President would object. This is living proof that he has been targeted and those involved must answer to the rule of law here. Otherwise, we are no better than other corrupt governments where politicians get away with targeting their enemies to eliminate them.