02/14/17

The Catholic Conspiracy

By: Cliff Kincaid | America’s Survival

Catholic activist Elizabeth Yore talks to ASI President Cliff Kincaid about a letter to President Trump seeking an investigation of the Obama Administration, the Vatican, and George Soros-funded “progressive” forces. But can Trump survive? What role are the intelligence agencies playing in the assault on theTrump Administration. “This is a battle for the soul of the United States of America,” Yore says.

02/14/17

Cruz Nails It… Revoke Citizenship of Americans Who Join ISIS

By: Terresa Monroe-Hamilton | Right Wing News

I simply adore Ted Cruz. He’s absolutely right here. If an American citizen tries to join ISIS or any other terrorist group, they should have their citizenship stripped. That means for those who go overseas to wage Jihad, the door will no longer be open to them to return here. And before the left starts screeching over this, Hillary Clinton supported very similar legislation. Cruz supports President Trump’s embattled plan to temporarily ban refugees from seven Middle Eastern countries. So do I. He just thinks it only addresses half the problem and he has a point. We don’t want trained, battle hardened Jihadists returning to the US after going on a killing spree.

When previous versions of this bill were submitted, some civil libertarians threw a fit. They claim it would give the federal government expanded powers to revoke citizenship without due process. That’s rich considering they never decried Obama’s extension of federal powers. Under Cruz’s bill, anyone who lost their citizenship over alleged terrorist ties would have 60 days to request a due process hearing to challenge the decision. “The awesome and horrible power of being able to take away the citizenship of an American citizen would be turned over to an unnamed bureaucrat,” claimed Christopher Anders, senior legislative counsel for the American Civil Liberties Union’s Washington legislative office. It is not unconstitutional and I contend it would indeed stand if it went to the Supreme Court.

From the Washington Examiner:

Sen. Ted Cruz, R-Texas, is renewing a push for Congress to pass legislation that would revoke the citizenship of any American who tries to join the Islamic State or other terrorist groups.

Cruz thinks that banning people from terrorist-stricken countries from entering the U.S. only deals with half of the problem, and that the federal government also needs to worry about U.S. citizens who may try the same thing.

“If an American citizen travels abroad and joins a terrorist group waging jihad on America, attempting to murder innocent Americans, this legislation would strip that individual of their U.S. citizenship, so that we would not have terrorists returning to America using U.S. passports,” Cruz told the Washington Examiner.

Hundreds of Americans have tried to join the Islamic State in recent years, according to Cruz. He said another 124 U.S. citizens or green card holders have traveled overseas to join other jihadist groups in the years since the September 11, 2001 terrorist attacks. “This should be an idea that even Senate Democrats can support given that Hillary Clinton, when she was in the Senate, supported very similar legislation,” he said.

Ted Cruz steadfastly stands by his bill. Rep. Steve King, R-Iowa has introduced it for consideration. Cruz says it uses the same process to revoke citizenship from terrorists that the government has used since 1926 to revoke citizenship from Americans who join foreign armies at war with the United States. That’s exactly right. “This legislation is a common sense step to recognize that people can [wage] war against America in more ways than one,” he said. “You don’t need to be a member of a nation-state military to be a terrorist at war with America.”

There is a good chance that the bill will pass in Congress considering the Trump administration’s agreement with its pretext. Additionally, a former Cruz staffer, Victoria Coates, now works for the White House National Security Council. Michele Bachmann of Minnesota in the House joins Senator Cruz in support for the bill. It is entitled the Expatriate Terrorists Act. Meanwhile, in the House of Representatives, Republicans Bachmann and Ted Poe of Texas also introduced bills that call for the United States to revoke the passports of Americans involved with groups like ISIS.

Bachmann puts it perfectly: “Those who have joined a foreign terrorist organization have taken up arms against the United States and our very way of life. By turning against their country, their passports should be revoked and if they’re naturalized citizens, they should lose their citizenship.”

02/14/17

Kellyanne Conway Reveals The Reason That Michael Flynn Finally Had To Go [VIDEO]

By: Terresa Monroe-Hamilton | Right Wing News

I am sure you have heard that Michael Flynn resigned as National Security Adviser last night amidst allegations that he spoke of sanctions with the Russians before Trump took office. I have never cared for Michael Flynn. I gave him a clean slate when he came in. But after hearing what transpired, resigning was the right thing to do. I don’t know whether he resigned of his own volition or at the behest of President Trump, but he had to go. He spoke to the Russian ambassador five separate times. You can bet the intelligence agencies have that on tape. When Mike Pence asked him if he had discussed sanctions, he lied to him and Pence went forth and looked like a fool over it. The word out there is Pence was furious. Kellyanne Conway came right out and said that lying to Pence was the deciding factor here.

Michael Flynn was originally fired by Obama after serving a couple of months under him. He only lasted a couple of weeks with Trump and he probably would have been gone sooner, but Trump remained loyal to him. As recently as 2014, Flynn had gone to Russia before Trump came into the picture. The Department of Justice warned the White House that Flynn was susceptible to blackmail from the Russians. Just before Trump came into office, Obama levied sanctions on Russia. Normally, the Russians would have struck back, but did not, saying they would wait for the Trump presidency. That was after calls from Flynn, who most likely assured them that sanctions would be lifted. This whole mess is complicated. You have nine leakers involved that went to the media. These are probably a mix of White House insiders (leftovers from the Obama administration) and intelligence people.

From NBC’s Today Show:

“In the end, it was misleading the vice president that made the situation unsustainable,” Conway told TODAY’s Matt Lauer.

The incomplete information or the inability to completely recall what did or did not happen as reflected in his debriefing of particular phone calls — that really is what happened here,” she said.

Flynn’s departure comes less than a month into the job and follows revelations about information he shared with Russian Ambassador Sergey Kislyak over American sanctions against Russia in late December, weeks before Trump took office.

“He knew he had become a lightening rod and he made that decision,” Conway said.

On TODAY, Conway was asked repeatedly why, despite reports that the Justice Department told the White House last month that Flynn had misled them and even put himself at risk for blackmail, he continued to retain the president’s full trust.

Conway said Flynn continued to be a part of daily presidential briefings as recently as Monday but “as time wore on, obviously, the situation had become unsustainable.”

She said that the president accepted Flynn’s resignation and “wishes him well, and we’re moving on,” noting three “very strong candidates” the administration is considering to replace him.

Arguably, Flynn was the worst pick of those chosen for Trump’s cabinet. I am not sad to see him go as I feel he was compromised by the Russians. I’m also not happy about it as it hurts the Trump administration deeply and exposes a very dangerous rift between Trump and the intelligence agencies. The left will also use this to accuse Trump of further connections with Russia. Trump needs to aggressively clean house in the White House and intel agencies and get rid of everyone who was ever even remotely connected to Obama. If I were him, I’d have Pompeo in my office this morning, reaming him a new one over this.

There appears to be chaos in the People’s House right now and that just can’t be allowed. The Democrats won’t care about the truth, just nailing Trump every way they can. They also don’t care that it hurts the country and puts us at risk. The media is celebrating this today and that is just despicable. Thankfully, Trump has three solid contenders to replace Flynn. Kellogg would be my choice at this point. It doesn’t matter how I feel about Flynn personally… this is a massively bad thing to happen so shortly after Trump takes office. Time to get serious and perhaps try some of that extreme vetting within our own leadership.

02/14/17

FINANCIAL STOCKS DOMINATED YESTERDAY

By: Kent Engelke | Capitol Securities

Financial stocks led the markets higher as the reflation trade continues to dominate activity. The averages are now at the highest valuation since 2004 according to Bloomberg, partially the result of economic optimism via the Trump victory. I think it is noteworthy that to date there are no policies implemented much less proposed, only statements of decreased regulation and taxes.

Is the “Mother” of “buy on rumor and sell on fact” trade on hand? What happens if the Trump proposals become stalled, lacking any significant legation, the result of the hyper partisanship in Washington?

Bloomberg writes volume is anemic, thus suggesting this is a convictionless advance, thus suggesting it can be prone to a sharp pull back.

All must remember nothing is ever linear and there will be ebbing and flowing.

Today, FRB Chair Yellen testifies on Capitol Hill. Will her remarks alter the monetary time table? As noted above, the recent advance has been led by the financials predicated upon a strengthening economy and higher interest rates.

How will her remarks be interpreted?

Last night the foreign markets were mixed. London was up 0.07%, Paris up 0.09% and Frankfurt up 0.01%. China was up 0.03%, Japan down 1.13% and Hang Sang down 0.03%.

The Dow should open flat ahead of Yellen’s testimony; a testimony which is expected to be oblique, defined as no one knows the possible implications and ramifications of a Trump presidency which is challenging the established world order of globalism. The 10-year is off 2/32 to yield 2.45%.

02/14/17

Why the CIA Wants to Destroy Flynn

By: Cliff Kincaid | Accuracy in Media

The media have figured out they can’t bring down or impeach President Trump. So they are targeting his Cabinet officials and top advisers one by one. In the case of Michael T. Flynn, the media think they have hit pay dirt. The Washington Post has led the charge, using top-secret surveillance intercepts of communications between Flynn and the Russian Ambassador to the U.S. It’s more evidence that the CIA, and perhaps the National Security Agency (NSA), are out to destroy Trump’s national security adviser.

“The knives are out for Flynn,” said one administration official quoted in the paper. The knives are computer keyboards in the hands of scribblers for a paper whose owner, Amazon’s Jeff Bezos, has a business relationship with the CIA. The Post is wielding the knives provided by anonymous intelligence officials.

Nobody knows this better than the Post’s Watergate reporter, Bob Woodward, who said on Fox News that the CIA was using unverified “garbage” allegations in a campaign to destroy Trump himself. Since Trump has survived, the campaign has taken a new form against Flynn, a close adviser to Trump on foreign policy who had campaigned with him and by his side.

At the heart of the story are secret surveillance intercepts of conversations whose disclosure is itself a violation of the law. In fact, these illegal disclosures to the press are far more serious than anything Flynn is accused of doing. But don’t think the media are going to investigate themselves for these illegalities. If they bring down Flynn, they will have wounded Trump. The sharks will smell blood in the water.

Remember that the FBI is said to have reviewed the intercepts and determined there was nothing illicit in what was discussed. That finding hasn’t stopped the CIA and the Post from continuing a campaign to sink Flynn. The so-called sensational news angle is that Flynn forgot what he told the Russian Ambassador and Vice President Mike Pence about the conversations.

The real explanation for the assault, as we have explained in several columns, is that Flynn, former director of the Defense Intelligence Agency (DIA) and a retired Lieutenant General, doesn’t trust the CIA. And the CIA clearly doesn’t trust him.

Meanwhile, in a newsworthy development that went mostly unreported here in the United States, Trump’s new director of the CIA, former Rep. Mike Pompeo (R-KS), traveled to Saudi Arabia to give a top Saudi official a CIA award for “counter-terrorism” named after a discredited former CIA director. The Saudi official was given the “George Tenet Medal” in recognition of his “excellent intelligence performance, in the domain of counter-terrorism and his unbound contribution to realize world security and peace.” Tenet is known for his embarrassing and false “slam dunk” comments about finding weapons of mass destruction in Iraq before the U.S. invasion.

Pompeo’s tribute to the Saudi official, Crown Prince Mohammed bin Nayef, is astounding considering the evidence of the Saudi role in facilitating jihadist terrorism in Syria, a debacle that has helped to produce 500,000 dead and refugees streaming into Europe and the United States. Bin Nayef serves as Minister of Interior.

Rather than focus on Flynn, the media should be asking what Pompeo is doing paying tribute to a Saudi official whose regime is neck-deep in a conflict that has produced a major humanitarian catastrophe. And why is the CIA giving an award named after a director who failed in the intelligence mission of the agency he led?

Under these circumstances, if President Trump fires or forces the resignation of Flynn, it will be a huge victory for the CIA’s failed policies in the Middle East. These are policies Trump promised to reverse.

The assault on Flynn began on January 12, when Post columnist David Ignatius reported, “According to a senior U.S. government official, Flynn phoned Russian Ambassador Sergey Kislyak several times on Dec. 29, the day the Obama administration announced the expulsion of 35 Russian officials as well as other measures in retaliation for the hacking. What did Flynn say, and did it undercut the U.S. sanctions? The Logan Act (though never enforced) bars U.S. citizens from correspondence intending to influence a foreign government about ‘disputes’ with the United States. Was its spirit violated?”

With subsequent stories and various Trump administration comments, a “scandal” has been created, with Flynn’s fate hanging in the balance.

Despite the FBI clearing Flynn, the issue is now whether Flynn talked about sanctions and to whom. He apparently first denied this, and later acknowledged that the subject may have come up. With multiple Obama-created foreign policy problems on his plate, it may be the case that he gave some misleading information to Vice President Mike Pence.

The real issue, as Flynn has talked about publicly since he left the DIA in 2014, is the evidence of a U.S. role under Barack Obama and his CIA director John Brennan in facilitating an increase of radical Islam in the Middle East. He has cited the evidence contained in a DIA document, declassified and publicly released by Judicial Watch.

While Flynn has been critical of the agency for carrying out the Obama/Brennan policy of supporting Islamists in the Middle East, he writes in his book, The Field of Fight, about how the Russian intelligence services have also been involved in supporting radical Islam. This proxy war has damaged mostly Europe and the United States, and lies behind President Trump’s desire to curb immigration from Middle Eastern countries racked by Islamist violence.

Rather than clean house at the agency, Pompeo reportedly jumped on the bandwagon against Flynn, with the CIA or some other anonymous intelligence community insider leaking information that the agency had denied a security clearance for one of Flynn’s associates on the National Security Council. “One of the sources said the rejection was approved by Mike Pompeo, President Donald Trump’s CIA director, and that it infuriated Flynn and his allies,” Politico reported.

This is truly amazing since Obama’s CIA director himself should never have received a security clearance, and his policies were incompetent, if not anti-American. Brennan was a close friend and confidant to George Tenet and had served as CIA station chief in Saudi Arabia, where he reportedly converted to Islam. As CIA director, Brennan told a congressional forum that even voting communist, as he once did, was not a bar to employment at the agency. Brennan admitted voting communist when attending Catholic Fordham University in 1976. He was also involved  in the cover-up of the Benghazi massacre of four Americans.

In his new book, iWar: War and Peace in the Information Age, Bill Gertz explains how the CIA has become “politicized,” dominated by a “liberal culture,” and resistant to probes of communist moles within.

Having had a pro-communist with Muslim sympathies once reach the top position of CIA director, it’s no wonder that the agency wants to get rid of Flynn. The CIA has a lot of baggage that needs to be exposed and swept away. The real mystery is why Pompeo decided to continue with the business-as-usual mentality and has not followed through on the President’s pledge to “drain the swamp.”


Cliff Kincaid is the Director of the AIM Center for Investigative Journalism and can be contacted at cliff.kincaid@aim.org. View the complete archives from Cliff Kincaid.

02/13/17

DID FITCH RATING AGENCY MAKE A MOMENTOUS STATEMENT?

By: Kent Engelke | Capitol Securities

The ratings agency Fitch stated the Trump administration has increased the risk to international economic conditions and global sovereign debt markets because of potential changes in trade and other polices.

My translation… Fitch is the first ratings agency that is stating the obvious. The world has dramatically changed and yesterday’s rules may no longer apply. Globalism is dead, replaced by economic nationalism that may alter/harm sovereign economies.

I was flattered that some thought I invented the term economic nationalism, but it was an economic philosophy I studied in a geopolitical/socioeconomic class in 1983. It was over 30 years ago when I was first introduced to the concept of globalism/interdependency versus the then waning status quo of economic nationalism.

For simplicity, economic nationalism is defined as “a body of policies that emphasizes domestic control of the economy, labor and capital formation even if it requires the imposition of tariffs and other restrictions on the movement of labor, goods and capitol.”

I cannot emphasize enough the significance of this geopolitical/socioeconomic change, especially as the vast preponderance of investing dollars has gravitated to the mega capitalized momentum growth companies, primarily the result of the globalist/interdependent/multipolar environment.

This huge flow of capital has vastly influenced the averages, an influence amplified by the proliferation of ETFs that by their very basic composition suggests past performance will be indicative of future performance, defined as the big get bigger and the small get smaller and fundamental economic and security analysis is regarded as potentially meaningless.

Has a radical change occurred, but are most fighting this change because trillions may now be regarded as “sunk costs?” In other words, is the Establishment fighting a battle that may not be won given the radical change that has occurred in the demands from the electorate?

I have commented many times Main Street may outperform Wall Street for the first time since around 2004. According to one study by Alpha Research, only 46% of individual stocks outperformed the S & P 500 from 2007-2016, the result I believe is the result of indexing and ETFs. A mere 10 companies have accounted for 26.2% of all wealth in the market since 2007.

Perhaps Fitch has offered more evidence to this view that Main Street will outperform Wall Street as I believe 2007-14 was the apex of the globalist environment.

Commenting about Friday’s market, the averages led by the energy and financial sectors ended higher. Regarding oil, it was reported that OPEC has achieved a record 90% compliance with the production cut accord while demand grew faster than expected. Perhaps more significant, Saudi Arabia reduced production even more than it had committed.

I ask was the kingdom forced into this action because of huge demands for monies… monies that this oil rich sheikdom does not have because of gargantuan transfer payments and fighting a war? Saudi Arabia requires $90 oil to balance its budget. Its sovereign wealth fund has dropped from around $735 billion in 2014 to about $430 billion today. Two years ago, Saudi Arabia forecasted a $700 billion fund.

The Treasury market was relatively quiet as oil rose. There were also further talks about upcoming tax cuts, specifics announced in two to three weeks.

What will happen this week? Several inflation indices are posted, retail sales, numerous housing statistics and manufacturing data points.

Last night the foreign markets were up. London was up 0.13%, Paris up 1.10% and Frankfurt up 0.91%. China was up 0.63%, Japan up 0.41% and Hang Sang up 0.58%.

The Dow should open quietly. The 10-year is off 8/32 to yield 2.44%.

02/13/17

It’s Time to Impeach the Judges

By: Cliff Kincaid | Accuracy in Media

She endorsed him, and he paid respects at her funeral, but it appears that President Donald Trump hasn’t read Phyllis Schlafly’s book, The Supremacists: The Tyranny of Judges and How to Stop It. Rather than simply Tweet his disgust with rulings against his immigration executive order, Trump and his advisers should read the book, especially Schlafly’s Chapter 15. It offers a series of measures, including impeachment, to stop tyrannical judges.

Originally published in 2004, the book is available as a free download at Schlafly’s Eagle Forum website.

It’s a mess, a complete mess, is what Trump might say of the rulings against his executive order. But as President, he can do something about it. Yet, he has simply issued a series of Tweets, one of the latest being that “dangerous” foreigners are being allowed into the U.S. because of the judicial rulings. But since when do judges decide the foreign or immigration policies of the United States? Where is that written in law or the Constitution?

Two conservative scholars, Dr. John C. Eastman and Hans von Spakovsky, have clearly explained how the judicial rulings against the order are not based on law or the Constitution. What is lacking is an effort by the administration and Congress to remove or restrict the power of tyrannical judges who present their own liberal personal opinions as expressions of the facts and the law.

In matters like this, the media are careful to outline the bounds of acceptable legal opinion. Hence, it is assumed in much of the coverage and commentary that Trump has no option other than to abide by the judicial rulings. Nothing could be further from the truth, as Schlafly’s book explains.

In his column, Eastman writes, “…the notion that a single federal trial court judge can take it upon himself to determine national security and immigration policy, in the face of explicit determinations made by the president with the full support of law actually adopted by Congress, is so far beyond the judicial role as to pose a serious threat, not just to our national security, but to the rule of law.”

Columnist J.B. Williams argues that Trump’s new head of the Department of Homeland Security, General John F. Kelly, appeared to be taking orders from unelected judges instead of the Commander-in-Chief when he issued a statement promising “compliance” with the court order. This constituted a “mutiny” against the President, Williams argued. Kelly knows “that the order issued by Trump was both legal and necessary to the security of the United States and that the Commander-in-Chief had the full authority to issue that directive,” he wrote.

Trump and his advisers should read Schlafly’s book to understand the damage that has already been done by these tyrannical judges.

A lawyer who wrote more than a dozen books, Schlafly listed many examples of how judges have rewritten the Constitution, noting how they have:

  • censored the Pledge of Allegiance in public schools;
  • removed the Ten Commandments from public schools, buildings, and parks;
  • changed the definition of marriage;
  • banned the acknowledgment of God in public schools, at graduations, and at football games;
  • imposed taxes and spending of taxpayers’ money;
  • rewritten laws of criminal procedures;
  • dismantled laws that protect internal security; and
  • upheld racial preferences and quotas in hiring and college admissions

Schlafly wrote, “The cancer of judicial supremacy will not go away until the American people rise up and repudiate it. It’s time for the American people to notify their elected representatives, federal and state, that it is their mission to restore the Constitution with its proper balance among the three branches of the federal government. We must save self government from the rule of judges. The whole future of America depends on it.”

The future is now. The American people don’t have to wait for Judge Neil Gorsuch or others to be confirmed to the high court for this problem to be rectified. The President and the Congress can, and should, take action right now.

Schlafly’s steps to terminate the rule of judges and restore constitutional self-government include:

  • Reforming Senate rules so liberals are not able to defeat constitutionalist nominees by preventing the Senate from voting them up or down;
  • Curbing the power of the judicial supremacists by legislating exceptions to court jurisdiction;
  • Prohibiting the spending of federal money to enforce obnoxious decisions handed down by judicial supremacists;
  • Congress should impeach federal judges who make outrageous rulings that have no basis in the Constitution; and
  • Congress should prohibit federal courts from relying on foreign laws, administrative rules, or court decisions.

Columnist J.B. Williams wonders if Trump is really up to this task. He asks if the President has the backbone to fight and defeat these anti-American activists in the courts in order to “drain this swamp?” He then asks, “Do his appointees, like General Kelly and Jeff Sessions, really have what it takes to put these illegal activists in their place and return this country to the rule of constitutional law?”

In his statement on her passing, Trump called Phyllis Schlafly “a conservative icon who led millions to action, reshaped the conservative movement, and fearlessly battled globalism and the ‘kingmakers’ on behalf of America’s workers and families.”

One of her best and most relevant books was The Supremacists: The Tyranny of Judges and How to Stop It. Trump’s advisers should purchase or download copies of the book and provide them to members of the Cabinet and members of Congress. The book outlines how the president can go beyond Tweets in curbing the power of tyrannical judges.

If Trump and his Cabinet are serious about draining the swamp, writes J.B. Williams, the left must be stopped from using activist judges to thwart Trump’s attempts to secure the USA and enforce our laws. “Or else,” he writes, “the notion of draining this swamp is a joke!”

Trump is now in a position to confront the “kingmakers” in the courts. But he must do more than Tweet his disapproval of them. In his words, they are so-called judges. But recognizing their authority by filing another set of appeals is not the answer. He must seek their removal from the bench.


Cliff Kincaid is the Director of the AIM Center for Investigative Journalism and can be contacted at cliff.kincaid@aim.org. View the complete archives from Cliff Kincaid.

02/12/17

A POSSIBLE REASON WHY THE TECHNOLOGY COMPANIES ABHOR DONALD TRUMP’S TRADE AND IMMIGRATION PROPOSALS

By: Kent Engelke | Capitol Securities
From: 2/9/17

President Trump may soon label China a currency manipulator. While I will skip the obvious notion that all countries manipulate their currencies either overtly (devaluation) or covertly (monetary policy), such a declaration may have wide ranging implications.

China is an export dominated country, defined as its economic wellbeing is dependent upon the financial health of its trading partners. A dated Commerce Department statistic suggested about 45% of Chines production is slated for export, exports dominated to Western Europe, Japan and the US. In other words, China is in a position of inherent weakness.

I reiterate a reason why electronic equipment and many other products are so inexpensive is because of trade policies, permitting exports from regions where labor is extremely cheap as compared to western wages. If the cost of production rises, either margins contract or prices go up. Either scenario may create more uncertainty.

If these increased production costs are unable to be passed onto the consumer, margins will drop, hence stock valuations will also drop.

If these higher costs could be passed on, inflationary pressures may accelerate.

The loudest protesters of Trump’s trade (and immigration) proposals are the technology companies, companies dependent upon cheap labor costs which permit greater access to their products via low prices.

Regarding stock valuation, in my view the technology companies are overvalued, representing about 24% of the capitalization of the S & P 500, eclipsing 2000’s record level which was then viewed as an absolute mania.

What happens if technology margins erode because of higher prices and inflationary pressures accelerate that forces a more hawkish Federal Reserve? Technology companies would get killed from lower than expected future cashflows discounted at a higher risk free rate, amplified by lofty valuations suggesting there is no room for error.

Against this backdrop, it is no wonder the technology companies are ardent detractors of the Trump administration, falling under the guise there is no interest like self-interest.

For the record, I think a trade war between the largest and second largest economies will end poorly… albeit I am in favor of free trade, whatever this may mean, for such will support the common man and Main Street versus a few.

We do live in interesting times where life is indeed stranger than fiction. So much for last year’s mantra that Donald Trump was behaving in such a manner to enable or permit Hillary Clinton to win the presidency for Trump then was also viewed as an elitist entrenched in the Establishment.

Last night the foreign markets were up. London was up 0.30%, Paris up 0.78% and Frankfurt up 0.55%. China was up 0.53%, Japan down 0.53% and Hang Sang up 0.17%.

The Dow should open nominally higher. The 10-year is off 9/32 to yield 2.36%.

02/12/17

WILL ECONOMIC NATIONALISM REPLACE GLOBALISM IN ITS ENTIRETY?

By: Kent Engelke | Capitol Securities
From: 2/8/17

Some are commenting there is a lack of direction in the markets as most are now looking for more details from the Trump Administration on promised tax cuts, reduced regulation and increased infrastructure spending.

For the immediacy, the averages will trade on the perception of policy success. I must write success will be defined differently regarding on what side of the aisle one sits.

To write the obvious, if The Trump Administration delivers 3.5% to 4% growth, a lot of today’s resistance would collapse. Vice versa, if growth collapses, Trump’s vision of economic nationalism would then collapse.

Regardless, yesterday’s globalist agenda is on life support and depending upon the success of Trump’s agenda, and the upcoming elections in both Germany and France, globalism may cease to exist in anything but name.

Wow! It is no wonder the Establishment, defined as anyone who is at the pinnacle of today’s power structure, is fighting so hard. Trillions are at risk in this potential change of global order to economic nationalism.

Yesterday was another quiet day as confusion is starting to grow over the direction of the young Trump administration…growth and regulatory repeal versus trade and immigration.

Last night the foreign markets were up. London was down 0.03%, Paris up 0.40% and Frankfurt up 0.05%. China was up 0.44%, Japan up 0.51% and Hang Sang up 0.66%.

The Dow should open flat. The 10-year is up 8/32 to yield 2.37%.

02/11/17

IS THE ARC OF HISTORY NOTHING BUT AN ILLUSION?

By: Kent Engelke | Capitol Securities
From: 2/7/17

Yesterday was an exceptionally quiet and slow day as a note of caution is spreading through the global markets. Political uncertainty is rising in both France and Germany, two countries that have championed the ECB and globalization.

There is little on the economic calendar and most of the tier IS&P 500 companies have posted results thus all attention will be focused on political development both here and abroad.

Perhaps the only concrete statement to make is if the nationalist parties continue to gain momentum (and offices), especially in Germany and France, globalism will be dead in its entirety.

If this occurs, an idea has failed, the result of a dysfunctional welfare state that forgot about the voter in the hopes of some grandiose and illusive one world order. Wow! This sounds like a line from Star Wars.

Markets hate uncertainty and typically trades lower in such times. But will it be different this time, a phrase that strikes fear in anyone’s heart for it is never different… there are just different people?

About 25 years ago when I first started to opine about global politics, I wrote an extensive report commenting about how the EU and ECB will prosper in good times, but will implode in economic difficulties given the simple premise of there is no interest like self-interest. I wrote in times of economic difficulty, nationalism will trump interdependency and globalism. I also remarked the culture of Western Europe is different than Eastern Europe and north is the opposite of the south, an environment that even the most thought out legislation can not overcome.

Little did I know how prophetic my remarks have become.

Today, The Establishment, defined as anyone who is in power or a position of influence, is fighting the return of nationalism via all means possible, the result of trillions of dollars invested. An idealistic idea that has come to pass because of economic injustices, the result of failed polices that only benefited a select few.

Earlier, I remarked that it is never different, there are just different people. Perhaps “normalcy” is now returning and the Arc of History was nothing other than an illusion.

Enough of the geopolitical and socio economic gobbledygook, as stated above, yesterday was a quiet day. Treasuries however did rally about a ½ point on global political concerns.

Last night the foreign markets were up. London was up 0.64%, Paris up 0.05% and Frankfurt up 0.60%. China was down 0.12%, Japan down 0.35% and Hang Sang down 0.07%.

The Dow should open nominally higher. The 10-year is off 3/32 to yield 2.43%.