For Those That Want To Eliminate ICE, Read This

By: Denise Simon | Founders Code

This operation goes back to at least 2017, where collaboration with several agencies and international programs began to investigate FGM.

U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) New York Border Enforcement Security Taskforce (BEST), with support from HSI’s Human Rights Violators War Crimes Unit (HRVWCU), has initiated Operation Limelight USA, a pilot program designed to bring awareness to Female Genital Mutilation (FGM) and deter its practice through training, outreach and enforcement.

This initiative is the U.S.based version of the United Kingdom’s Operation Limelight at Heathrow Airport conducted by the Metropolitan Police Service and Border Force.

The initiative aims to safeguard and prevent young girls from being subjected to FGM by informing passengers traveling to high-prevalence countries about the U.S. laws governing FGM and the potential criminal, immigration, and child protective consequences of transporting a child to another country for the purpose of FGM.

HSI HRVWCU intends to expand Operation Limelight USA to additional airports around the country, focusing on those airports serving the largest FGM- prevalent diaspora communities.

ICE leads effort to prevent female genital mutilation at Newark Airport

NEWARK, NJ – Starting on June 19, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark initiated Operation Limelight USA, a program designed to bring awareness to Female Genital Mutilation (FGM) and prevent young girls from being subjected to FGM by informing passengers traveling to FGM high-prevalence countries about the U.S. laws governing FGM and the potential criminal, immigration, and child protective consequences of transporting a child to another country for the purpose of FGM.

This initiative is the U.S. based version of the United Kingdom’s Operation Limelight at Heathrow Airport conducted by the Metropolitan Police Service and Border Force. The pilot program was initiated at JFK International Airport last year and was incredibly successful. HSI has expanded Operation Limelight USA to additional airports around the country, focusing on those airports serving the largest FGM- prevalent diaspora communities.  The operation at Newark International Airport met with similar success.

“Our aim here is three-fold regarding this brutal practice,” said Brett Dreyer, assistant special in charge, HSI Newark, and who led the efforts for Operation Limelight at JFK Airport last year and at Newark Airport this year. “Enforcement is a key piece here, but so is outreach and prevention. This is why we have partnered with other government agencies, NGOs and, most importantly, survivors and advocates from the community to share knowledge and resources so we may collectively end this practice.”

“U.S. Customs and Border Protection is extremely proud to have assisted in this awareness program,” said Robert E. Perez, director New York Field office.  “It is through collaborative efforts, such as this Female Genital Mutilation Prevention Program, that law enforcement agencies can contribute to the prevention of these serious human rights violations.”

FGM is a serious human rights violation, and a gender-specific form of child abuse. This harmful traditional practice negatively affects millions of women and girls around the world, and is concentrated in thirty-one countries in Africa, Asia and the Middle East.  FGM provides no health benefits and in fact can cause lifelong consequences including chronic infection, severe complications during childbirth, mental health and even death.

HSI is in a unique position to engage with the traveling public at U.S. borders and ports of entry to focus on the prevention of “vacation cutting”, or sending children out of the United States for the purpose of FGM.  As part of Operation Limelight USA, special agents, who have completed FGM-related training, speak to passengers flying to or from high-risk countries, offering informational brochures and identifying potential victims and violators of FGM. These discussions both educate passengers on the consequences of involvement in FGM and provide passengers with a means by which to refer cases or receive victim assistance.

Additionally, HSI Newark has partnered with U.S. Customs and Border Protection, the U.S. Attorney’s Office for the District of New Jersey, NJ state agencies representing children, local health practitioners, community organizations, and survivors in the fight against FGM. These partnerships reflect the necessity for a whole government approach to prevention of FGM.

Federal law, under Title 18 of United States Code (U.S.C.) §116, prohibits individuals from conducting, assisting, attempting or conspiring to conduct FGM in the United States or facilitating the international travel to perform FGM abroad on female children, under age 18.  Additionally, 26 states, including New Jersey, have specifically outlawed FGM, and for the remaining 24 states, FGM would fall under existing child abuse statutes.

In April 2017, an HSI and FBI joint investigation led to the arrest of a Detroit emergency room physician who was charged with performing FGM on girls who were approximately six to eight years of age. This case, which is being prosecuted out of the U.S. Attorney’s Office for the Eastern District of Michigan, is the first case of an individual facing prosecution in the United States in violation of 18 U.S.C. §116, which criminalizes FGM.

Members of the public who have information about individuals suspected of engaging in human rights abuses, to include FGM, are urged to call the HSI tip line at – 1-866-DHS-2423 (1-866-347-2423). Callers may remain anonymous. To learn more about the assistance available to victims in these cases, the public should contact the confidential victim-witness toll-free number at 1-866-872-4973.  You can learn more about HSI’s mission to enforce federal laws governing border control, customs, trade and immigration to promote homeland security and public safety at www.ICE.gov.


601 Charged In $2 Billion Healthcare Fraud

By: Denise Simon | Founders Code

Department of Justice
Office of Public Affairs

Thursday, June 28, 2018

National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for Over $2 Billion in Fraud Losses

Largest Health Care Fraud Enforcement Action in Department of Justice History Resulted in 76 Doctors Charged and 84 Opioid Cases Involving More Than 13 Million Illegal Dosages of Opioids

Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.  Thirty state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.

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Poll Shows Marxist Democrat Kyrsten Sinema Leading All Three GOP Contenders In Arizona

By: Terresa Monroe-Hamilton

A new NBC News/Marist poll is showing that Democratic Rep. Kyrsten Sinema is leading all three of her Republican rivals in the Arizona U.S. Senate race. That is very alarming and it is bad news. Arizona, what are you thinking? According to this poll, registered voters favor Sinema over Republicans Joe Arpaio, Rep. Martha McSally and Kelli Ward, KVOA-TV reported. The poll also shows that voters slightly favor Rep. Martha McSally over Kelli Ward and Joe Arpaio in the GOP primary. All of these candidates are competing for Sen. Jeff Flake’s vacated seat. He’s retiring, or so he claims. The primary election is Aug. 28. Now, I don’t put much stock in polls, but Sinema should not be anywhere near leading here.

Here are the results of the poll, as listed on KVOA’s website:

Sinema vs. Arpaio
Kyrsten Sinema — 57%
Joe Arpaio — 32%
Other — 2%
Undecided — 9%

Sinema vs. McSally
Kyrsten Sinema — 49%
Martha McSally — 38%
Other — 2%
Undecided — 11%

Sinema vs. Ward
Kyrsten Sinema — 48%
Kelli Ward— 38%
Other — 2%
Undecided — 12%

The poll was taken on June 17-21. 839 registered Arizona voters were tapped for it. The poll has a margin of error of 4.5 percentage points. McSally has a slight edge over Ward, at 30 percent to 28 percent, respectively. Twenty-one percent of those surveyed indicated they support Arpaio.

Sinema represents Arizona’s ninth district in Congress, which includes Tempe and other areas of Maricopa County. I have family there. I just can’t believe they are voting for someone with communist connections. Sinema is running against Deedra Abboud, a community activist and attorney, in the Democratic primary. Abboud is Muslim and got publicity last year when some hateful comments were aimed at her on Facebook. She is the first Muslim candidate in Arizona to run. If I were a Democrat, I would not vote for either one. Just sayin’.

Why is Arizona so important in this election? Because it is considered a must-win in the Democrats’ bid to take over the Senate in the 2018 midterms. The general election takes place on Nov. 6.

Kyrsten Sinema has connections to the Communist Party USA. She was a signatory to an advertisement for “May Day and Cinco de Mayo greetings” placed in the Communist Party USA paper People’s Weekly World May 4, 2002. Such ads are traditionally placed in the Communist Party paper every May Day, sponsored by local party clubs, members or supporters.

Arizona’s progressive community extends May Day and Cinco de Mayo greetings to all our friends across the country. We commit ourselves to resist the Bush Administration’s drive for ever increasing military spending and a neverending state of war. We must redouble our efforts to build a people’s coalition that will drive the ultra right out of Congress next November.

Co-signing the advertisement with Sinema were Communist Party USA members Joe Bernick, Jack Blawis, Lem Harris, Lorenzo Torrez, Anita Torrez, Carolyn Trowbridge, Steve Valencia, the Tucson and East Valley Clubs of the Communist Party USA and party fronts, the Arizona Peace Council and the Salt of the Earth Labor College. This support for the communist cause was not a “one off’ or an aberration. In 2003, Sinema again put her name to the Arizona Communist Party’s May Day greetings page.

This is the scan of page 16 of the May 4, 2002 Communist Party USA’s newspaper, People’s Weekly World. The page contains evidence of Arizona State Senator Kyrsten Sinema’s ties to the Communist Party USA.

Sinema was raised in the Mormon faith. She has a Bachelor’s degree in social work from Brigham Young University. Kyrsten Sinema holds both a law degree and a Master’s degree in Social Work from Arizona State University, and is currently pursuing her Ph.D. in the School of Justice and Social Inquiry at ASU. She is an adjunct professor in the School of Social Work at ASU and practices law when not in session. She’s no dummy. Sinema is a well-educated, aspiring Marxist.

Kyrsten is anti-Israel, pro-abortion and is for open borders. She also helped put together Obamacare and is a supporter of CAIR. In fact, what may be her downfall is she is too radical for her base there in Arizona. All of this is why Kyrsten Sinema should not win that Senate seat in Arizona. I would urge the voters there to take a long hard look at who they are electing to office.


The Rainbow Conspiracy Part 11: Steve Phillips Funds Stacey Abrams For A Blue Georgia

By: Trevor Loudon | New Zeal

Part 10 here.

The left is taking Stacey Abrams’s Georgia gubernatorial bid  extremely seriously. They are treating her race as a national race. So must we.

Stacey Abrams’s 400,000 vote 75%/23% landslide victory in the May 22, 2018, Georgia Democratic gubernatorial primary should be a massive wake-up call to Peach State Republicans and conservatives, and more importantly to the national GOP.

Stacey Abrams will be a formidable opponent in the November election.

“We are writing the next chapter of Georgia history, where no one is unseen, no one is unheard and no one is uninspired,” Abrams told supporters in Atlanta Tuesday night at her victory party. “Now let’s go get it done.”

As leftist commentators Melissa Harris-Perry and Dorian Warren have commented:

The Republican candidates, Casey Cagle and Brian Kemp, are now in a runoff after a crowded primary race. But Abrams, it’s important to note, got more votes than both Cagle and Kemp combined. This was not a small win — it was huge.

Stacey Abrams is not just a threat because of her own considerable talents. The Georgia State Senator is the protege of San Francisco Democratic power broker Steve Phillips and his wife Susan Sandler, daughter of multi-billionaire bankers Herb and the late Marion Sandler. Sandler money is a foundation of PowerPAC+, a Steve Phillips’ vehicle for electing as many far left “candidates of color” across the country as possible.

Stacey Abrams, Steve Phillips

Susan Sandler put $1 million of her own money behind Abrams’ campaign and personally recruited other big donors who committed to another $1 million.

Phillips and Sandler want to flip red state Georgia blue and see Abrams’ campaign as a doorway to that goal.

“The upset election of Doug Jones in the Alabama Senate race in December gave a glimpse of a new electoral equation,” Sandler wrote in a memo to potential Abrams supporters. “If we elect Stacey, we will show that we know how to win in the South without compromising our principles and beliefs.”

Steve Phillips and Susan Sandler are explicitly running a “Rainbow Coalition” strategy – uniting “progressive” white and minority voters into an election winning alliance. Phillips worked in Jesse Jackson’s Rainbow Coalition in 1984 and 1988, and he learned a thing or two. The Sandler family fortune has enabled him to test his theories in real elections. More often than not, he has come up winning.

Phillips has updated Jackson’s strategy for the new millenia. Cultivating and harvesting the progressive/minority vote, ignoring white “swing” voters, is the emerging Democratic Party strategy.

Phillips crowed over Stacey Abrams’ victory in The Nation:

“The Rainbow Coalition is like a quilt—many patches, many pieces, many colors, bound by a common thread.” I was in Atlanta, Georgia, at the 1988 Democratic National Convention listening to Jesse Jackson describe his vision for how a multiracial and explicitly progressive coalition of people of color and progressive whites could lead Democrats to victory across the country. Although Jackson’s bid for the nomination fell short, the surprising success of his candidacy—he won 11 contests and nearly tripled his delegate total from 1984—revealed the potential of a campaign rooted in the country’s demographic revolution.

Last night, Stacey Abrams took a big step towards fulfilling that potential in the South by winning the Georgia gubernatorial Democratic nomination. The implications of her win for progressive politics and the future of the country are revolutionary in terms of political strategy and approach.

As a self-confessed Marxist-Leninist student, when Phillips uses the word “revolutionary,” he means it – literally.

Steve Phillips was also “one of the architects of the victory in Alabama” in which Democrat Doug Jones beat Republican Roy Moore in the November 2017 special Senate election.

According to USA Today:

Sandler and Phillips  helped fuel the large voter turnout in the Alabama Senate race. They plan to use the same strategies: a mix of door-to-door outreach, phone calls and advertising to turn the tide on the Georgia governor race.

African Americans make up about 30% of the electorate in Georgia. Sandler and Phillips want some 80,000 black voters to back Abrams in the primary. They plan to hire 250 to help them push the campaign.

Like most modern Marxists, Steve Phillips sees humanity through a racial prism.

Steve Phillips wrote in The Nation:

Georgia has historically been a conservative state, because there were always too few people of color, and too few progressive whites, to sway statewide elections. That is no longer the case. In the 30 years since Democrats gathered in Atlanta for its national convention, the state’s population has grown increasingly racially diverse to the point where people of color are nearly a majority (47 percent) of the state’s population and 40 percent of all eligible voters…

Despite this demographic transformation, Democrats in Georgia consistently lose by an average of 230,000 votes. The strategic challenge is how to close that gap.

Phillips understands that swinging a few centrist independents and undecideds won’t be enough. Nor will relying on the white “progressives.”

All of the empirical evidence, however, shows that there is a ceiling on Democratic support from white voters. Just four years ago, children of two iconic Democratic families—Jimmy Carter’s grandson Jason Carter and former senator Sam Nunn’s daughter Michelle Nunn—made statewide bids that sought to attract greater white support. Both of them ran into the ceiling of white support, garnering the same 23 percent of whites that supported Obama in 2008 and Democratic gubernatorial nominee Jason Carter in 2014. In 2016, Hillary Clinton captured only 21 percent of the white vote.

Recognizing that the definition of insanity is doing the same thing over and over and expecting different results, Abrams chose a sounder strategy, backed up by mathematical data and aligned with population trends. In the last gubernatorial election, there were 1.5 million eligible people of color who didn’t cast ballots. It’s that pool of voters that Abrams is focused on to close the gap. About 80 percent of Georgians of color vote Democratic, the return on investment from mobilizing those voters is well worth the effort. 

Stacey Abrams has been mining that black vote through her New Georgia Project, which she founded in 2013 with a massive voter registration campaign. Abrams also attracted some flak for drawing a salary of $177,000 from the project.

New Georgia Project is essentially a voter registration organization, in the mold of the highly successful New Virginia Majority, which helped to turn the Commonwealth almost blue. Unsurprisingly, New Virginia Majority co-leader Tram Nguyen was in Georgia to help Stacey Abrams over the finish line.

Tram Nguyen,  Stacey Abrams

Out of Georgia’s roughly 1.5 million unregistered voting-age residents, as many as 900,000 are minorities. No one has done more to tap that potential voting pool than Stacey Abrams.

From Atlanta magazine:

At the end of 2013, the Atlanta lawmaker founded an initiative called the New Georgia Project that set an ambitious goal of registering at least 120,000 minority voters across the state by the 2014 midterm elections.

Though she raised at least $3 million in donations—more money than Barack Obama spent in Georgia during either of his presidential campaigns—Abrams’ effort ultimately registered just 46,000 people. Now, with less than a year until the 2016 election, Abrams is doubling down. The goal this time? To register 170,000 minority voters between now and the upcoming presidential election, as well as to persuade 600,000 infrequent voters to get out to the polls next November. With an even higher hurdle than two years ago, Abrams is looking to raise not $3 million this time, but $10 million. Call it the new New Georgia Project.

These details are outlined in a pair of fundraising memos obtained by Atlanta magazine. Abrams has asked Democracy Alliance…to donate up to $5.9 million for the New Georgia Project and contribute another $4.35 million for Voter Access Institute, a little-known progressive advocacy group she founded last year. Her funding requests aren’t surprising; one of the Democracy Alliance’s members, Democratic financier George Soros, wrote Abrams’s political action committee, Georgia Next, Inc., a $500,000 check in 2014 to fund her voter registration efforts. 

Both Steve Phillips and Susan Sandler are very active in the Democracy Alliance.

According to Phillips:

It will cost about $10 million to mobilize the 230,000 previously uninspired voters of color required to close the gap in Georgia. The question and the challenge for the progressive movement is will they put their money where their mouth is? Progressives nationally moved upwards of $40 million to Elizabeth Warren’s 2012 Senate campaign and Wendy Davis’s Texas gubernatorial bid in 2014. Will there be similar enthusiasm and support for Abrams? If so, we can make history and fulfill the promise of what Georgia native Martin Luther King Jr. predicted when he said, “Give us the ballot, and we will transform the South.”

Steve Phillips also used Sandler money and the Rainbow Coalition approach to elect Cory Booker as Senator of New Jersey and Kamala Harris to the US Senate from California.

Both dutifully got behind Stacey Abrams’ primary campaign.

Senator Kamala Harris, Stacey Abrams

Another Steve Phillips protege, former Ohio state Senator, now president of the nationwide Bernie Sanders support organization Our Revolution, also traveled to Georgia to support Stacey Abrams.

Our Revolution, which endorsed Abrams, is simply a front for Democratic Socialists of America. Metro Atlanta DSA is about 400 strong. There are also DSA chapters in the Athens and Augusta areas. Neighboring Tennessee, Alabama and Northern Florida DSA chapters could also contribute several hundred doorknockers, phone bankers and donors to the Abrams campaign.

DSA recently helped elect Randall Woodfin as Mayor of Birmingham, Alabama and ultra-radical Chokwe Lumumba to the Mayoralty of Jackson, Mississippi. Their intervention in Georgia could be enough to make the difference.

Stacey Abrams is an old friend of Metro Atlanta Democratic Socialists of America. They may not publicly endorse her, but you can guarantee they will support her campaign.

As in Alabama, old communists and Maoists from the 1960s also came out to support the neo-Rainbow agenda.

One notable was long-time Georgia State Senator Nan Orrock, who publicly endorsed Stacey Abrams in early May.

Nan Orrock endorses Abrams

Nan Orrock (then Nan Guerrero) was “privileged to cut cane in Cuba” as part of the Venceremos Brigade in 1970. In 1971, she supported two Communist Party USA fronts, the Southern Conference Educational Fund and the pro-North Korea, American-Korean Friendship and Information Center. In 1975, Nan Orrock was a Georgia delegate to the pro-China, October League’s December 1975 “National Fight Back Conference” in Chicago.

In recent times Nan Orrock has worked closely with Metro Atlanta Democratic Socialists of America.

Nan Orrock 3rd from left, April 2011

Steve Phillip’s stable of organizations and their allies in Our Revolution and Democratic Socialists of America are throwing huge resources into the Republican’s soft underbelly in the South and the Southwest. They are particularly targeting North Carolina, Florida, Arizona, Texas and Georgia – all blue trending red states with large black and Latino populations, who tend towards low voter turnout. If they can flip vulnerable North Carolina,  Florida, Arizona and maybe Georgia in 2018, that is the end of the Trump presidency. That is also the beginning of the end of the Republican Party as a national force.

Blue leaning Georgia is critical to this plan. Democracy in Color is another Steve Phillips entity backing Stacey Abrams. Wrote Phillips:

Building political power in Georgia is critical to taking back our country over the next four years. In the Democracy in Color plan Return of the Majority, we show how Georgia is one of the Frontline States trending Democratic, and how we can win the Georgia governor’s office in 2018 and then capture its 16 electoral votes in the 2020 presidential race.

The Republicans must treat the Georgia gubernatorial race as a national battle with huge longterm ramifications. They must pour significant money into the race and thousands of on the ground workers into this battle.

The left is taking Stacey Abrams’ Georgia gubernatorial bid extremely seriously. They are treating her race as a national race. So must we.

Look for Part 12 coming soon: “Flipping Florida”

A book entitled “The Rainbow Conspiracy” will be released in October 2018.


WATCH: Have you heard about the #WalkAway Campaign? (video)

By: Renee Nal | New Zeal

Brandon Straka of Unsilent Minority

If Brandon Straka of Unsilent Minority was standing in defense of socialism, he would probably be a millionaire by now. George Soros would be tripping over himself to throw dollars in his direction. But Brandon Straka is, instead, making a stand against the left. As a lifelong Democrat, Straka is disgusted with the hypocrisy of the Democrat party and has made the very public decision to #WalkAway.

Watch the Unsilent Minority Video that launched the movement:

Brandon wants to dedicate himself to this movement. Give him a hand. He intends on creating a website and doing man-on-the-street interviews. This is time-consuming work and it takes money. Help him help us!

Using the #WalkAway hashtag, former democrats are tweeting about their decision to leave the Democrat party. Brandon has unleashed a movement on Twitter, albeit a clearly suppressed movement, even though thousands upon thousands of people are using the hashtag.

Here are just some:

Here is Brandon’s Announcement from Facebook:

Today I’m kicking off the #WalkAway campaign by releasing my video about why I am walking away from liberalism and the Democratic Party. It is my sincere hope that you will join me in this campaign and that we may start a movement in this country- which not only encourages others to walk away from the divisive left, but also takes back the narrative from the liberal media about what it means to be a conservative in America. It is up to all of us to make our voices heard and reclaim the truth.

The Democratic Party has taken for granted that it owns racial, sexual, and religious minorities in America. It has encouraged groupthink, hypocrisy, division, stereotyping, resentment, and the acceptance of victimhood mentality. And all the while, they have discouraged minorities from having independent thought, open dialogue, measured and informed opinion, and a motivation to succeed.

Please like and share my video, and please post your own #WalkAway video!! If you are a former liberal who has walked away from the left, please share your story, or your message, or your thoughts in a video on the WalkAway Campaign Facebook Page.

If you are a lifelong conservative or non-Democrat, please share your story, message, or thoughts on what it truly means to be a conservative. Right now, the liberal media continues to perpetuate a false narrative about the “hateful” and “bigoted” right. Use your voice to let people know who conservatives really are. Be sure to use the hashtag #WalkAway.

Please like and follow me on Facebook and Twitter:
The Unsilent Minority
and subscribe to my YouTube channel: The Unsilent Minority

Thanks for fighting Brandon. Please don’t get discouraged, we need you.


A Market Reversal… Surging Crude… 5% 2Q GDP GROWTH

By: Kent Engelke | Capitol Securities

Declines in technology shares led a market reversal. Comments from an official at the White House reestablished the hard line stance towards China. Earlier in the day the S & P 500 was posting a 0.9% advance on remarks from the president suggesting a softening of positions. The S & P closed down about 0.86%.

As noted the other day, technology companies derive 59% of their sales from abroad, greatly eclipsing the percentage of sales from the next largest category — the industrials — at 38%, thus suggesting any change in policy may have a considerable impact.

Changing topics, oil further added to its gains closing at a 3 ½ year high of $72.50/barrel. Markets were spooked by the realization that there is little excess global spare capacity. As noted earlier, Saudi Arabia is the only country that has any significant excess capacity and once the planned increase in production commences, Saudi’s reserves will decline by 40%.

Bloomberg writes excess capacity will then be at an all-time low, thus suggesting little ability to respond to further disruptions.

For many years, a geopolitical premium was absent in crude believing supplies are infinite. Will the environment now radically change where a large geopolitical premium becomes embedded?

There was little attention focused upon rising forecasts of second quarter GDP growth. The Atlanta Fed just increased its estimate to 4.5%. Several other forecasters boosted views to 5%. The only time growth has topped 5% since 2003 was the third quarter of 2014 when the economy grew by 5.2%.

I believe a major factor why the economy did not achieve “escape momentum” four years ago was the result of the full implementation of Dodd Frank which made capital formation — the lifeblood of capitalism — extremely difficult.

As largely discussed, some of the provisions of Dodd Frank have been rolled back.

What will happen today?

Last night the foreign markets were down. London was down 0.21%, Paris was down 0.58% and Frankfurt was down 1.08%. China was down 0.93%, Japan was down 0.01% and Hang Sang was up 0.50%.

The Dow should open steady as all are attempting to grapple with America’s strategy towards Chinese trade and investment. Emerging markets had another miserable day, a sector class that could do no wrong up to three months ago. Crude is nominally higher. The 10-year is unchanged at 2.83%.