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10.29.2014 Financial Intelligence Report Bookmark

Excuse Me?

I hesitated to talk about Hillary Clinton’s latest remark because it was a few days ago and certainly everyone has talked about it.  But I do want to spend a minute talking about just how depraved and insane the left is when it comes to reality.

I have a special ugliness when it comes to Lady Hillary.  Back when she was pushing for her version of universal healthcare back in the 90’s, I was a retiring jeweler. I had owned a jewelry repair shop and a couple retail outlets making me the typical “small business owner”. Some might call it being an entrepreneur.  I will never forget the rage I experienced while driving in my car one evening listening to talk radio.
Excuse Me?

I hesitated to talk about Hillary Clinton’s latest remark because it was a few days ago and certainly everyone has talked about it.  But I do want to spend a minute talking about just how depraved and insane the left is when it comes to reality.

I have a special ugliness when it comes to Lady Hillary.  Back when she was pushing for her version of universal healthcare back in the 90’s, I was a retiring jeweler. I had owned a jewelry repair shop and a couple retail outlets making me the typical “small business owner”. Some might call it being an entrepreneur.  I will never forget the rage I experienced while driving in my car one evening listening to talk radio.

She was on her high horse telling everyone how her version of universal one payer healthcare was so perfect, and the question was asked about the cost factor to the small business man, as it was to be quite expensive. Her reply was both shocking and obnoxious at the same time. I will quote the dear hag… “I can’t be responsible for every under-capitalized business in America”  

I’m sure the drivers in the surrounding cars must have thought I had Turret’s syndrome because I was shouting obscenities at my car radio like a drunken sailor.  Here was this make believe lawyer, who magically made a hundred grand in the futures business on like her first trade (yeah right) who never owned a business in her life, saying that it was just too bad if struggling small businesses had to cough up for her version of Soviet healthcare. Or if it was simply too much money for them, they shouldn’t even be in business.  I was livid to say the least.

So it doesn’t surprise me one iota that this shrew was quoted as saying to a Democrat rally that you shouldn’t buy the line that businesses creates jobs.  In fact she said “Don’t let anybody tell you it’s corporations and businesses that create jobs”  Okay then, who does, the tooth fairy? Oh that’s right, in your Marxist world, only the Government how knows best how to handle money and create jobs.  

But the left eats it up. I cannot for the life of me imagine how much medicine you need if you think this wicked witch is good for our country. Yet there are those brainwashed Obamanite leftist lunatics that buy her baloney hook, line and sinker. And hey why not? Didn’t Lord Obama tell us that if you own a business, you didn’t make it, someone else did? He sure did folks. Remember the quote:  “If you’ve got a business — you didn’t build that. Somebody else made that happen.”  

I think the saddest part of all is that the loony left will defend these statements as being out of context, and “not what they really meant”. Oh I beg to differ folks. That’s EXACTLY what they meant. The mistake was they let it slip. See the Marxist game is that you preach about individuality, freedom, capitalism, growth etc, but inside you do everything in your power to end all of that. It is the rare slip of the tongue, where their true feelings get out that you find out what they really think about things.

Consider Maxine Waters. Maxine Waters is the U.S. Representative for California's 43rd congressional district, and previously the 35th and 29th districts, serving since 1991.  Well, back in 2008, Waters was lecturing oil company executives at a congressional hearing when she plainly stated her true intentions:   “Guess what this liberal would be all about?   This liberal would be about socializing … uh, umm.   … Would be about, basically, taking over, and the government running all of your companies.”

Bingo. The true intent. Notice a theme here folks?  This is the same incompetent idiot that said in 2004 “We do not have a crisis at Freddie Mac, and particularly Fannie Mae, under the outstanding leadership of Frank Raines.” Well Fannie and Freddie had to get bailed out and Raines falsified their earnings so much he got a 90 million dollar bonus.

How on earth can a useless incompetent with the mental capacity of a clam be in Congress since 1991??  Because the left is nuts. I can’t state it any other way folks. If you think this is the best person for that job, you need very heavy prescription medicine. I’m sorry to be so blunt, but hey, I never said I’d mince words.

But it doesn’t stop with Hillary or Obama, or Maxine. There’s no shortage of mentally challenged socialists that somehow continue to be elected to their position.  Pelosi comes to mind. Not only is her stance against the second amendment grounds for me to projectile vomit, her equally disturbing grasp of reality is enough to question whether she needs a lobotomy.

Here’s a gal that proclaimed with her wide smile and zombie eyes that “Unemployment benefits are creating jobs faster than practically any other program”  Really Nancy? Well why would we need jobs in the first place then?  If you had your way, everyone would be on the Government teat, right?  How utterly imbecilic. But hey, evidently you don’t need any brain cells to get re elected in her districts. This is the same gal that said… ““I believe in natural gas as a clean, cheap alternative to fossil fuels.”

Could someone tap the poor deranged woman on the shoulder and mention to her that natgas IS a fossil fuel? Thank you.  Oh and of course no one can forget the ultimate in public stupidity... “We have to pass the (health care) bill so you can find out what is in it”. Ghee, one with the intelligence of a 2 year old might think you’d want to know what you’re passing before you do it. But not to a Democrat leftie with an agenda.

But now we have to ask the ugly question. What has happened to the American public over the years that has morphed their thinking to a point where they’d elect this level of absurdity? As much as I enjoy taking pot shots at these ridiculous leaders, the fact is they “got there” by popular vote. ( Well not Hillary of course, she got there because her cheating husband was voted in and she took over immediately)

In other words WE the people are ultimately responsible for allowing the madness that runs our lives. For instance, way back in history there were people strongly opposed to the Federal Reserve and how it would ultimately be a danger to the United States.  Congressman Louis T. McFadden, Chairman of the House Committee on Banking and Currency from 1920–31, was one of those people.  In several speeches made shortly after he lost the chairmanship of the committee, McFadden claimed that the Federal Reserve was run by Wall Street banks and their affiliated European banking houses.

While I won’t bring you Mr. McFadden’s entire speeches, you can read them online just by googling it, I think a couple paragraphs are appropriate…

  "Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.

"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.

"Some people who think that the Federal Reserve Banks areUnited States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire.

They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.


And yet what happened? He was ignored. The political force from the Fed’s and their banking institutions crushed him. And that folks is my point to all this. There’s a very special reason that liars and cheats get to sit in Government and our banking institutions, while the public goes along with their crimes. The reason is that the whole “machine” has been devoted to dumbing down the public, stomping out common sense, covering up the criminal acts, and creating the whole Roman “bread and circus” situation for the masses.

Just Tuesday morning I caught this headline: UBS sets aside $2 Billion for currency rigging and tax evasion settlements.  Read that again… currency rigging and tax evasion. Shouldn’t folks be up in arms? Shouldn’t that make the local news, that a major bank has to fork over a couple billion because they were complicit in RIGGING the forex markets? You bet. But I will flat guarantee you won’t hear a word about it anywhere, and yet you will hear about Kim Kardashian and her wildly popular social media game.

That is why we have lunatics like Waters and Pelosi in positions of power, while the real news is hidden from you all. The media is controlled and the propaganda is powerful. I was hoping that with the advent of the Internet, folks would finally do enough looking around to figure out some hard truths and make good judgments. Instead they have used it to play games and see what their favorite stars are wearing so they can go into debt and dress like them.  The proof was Obama getting re-elected. The net was loaded with reasons this man should have been removed from office, yet not enough took the time to look.

We’ve got these people in office because we failed to pay attention, failed to look at the facts, failed to stand up against the “machine”. And now, America is a poor excuse of its former self. I really do shudder when I think of the future. Why? Because just the fact that the left is covering for Hillary and her comments, it means that a huge portion of our nation is now completely swept up in the illusions that socialists create. I shake my head in disgust.

The Market…

What is “actionable?”  It’s a good question, no? Yes. So let’s take a look for a minute. As you all are probably well aware, we offer just two products at InvestYourself. One is this free newsletter, and the other is our “Insiders Club” where we show each and every move we make in our own accounts. Every stock we buy, what we look at, where we sell, the prices paid or sold at, etc. is spelled out for you 2 to 3 times every single day.  

I have often said that this free letter is the best one you can get that costs absolutely zero. Look around this page…do you see even ONE advertisement? You do NOT. That means it costs us money to send it out. I have sent out hundreds of thousands of letters, twice a week for 20 years. If you think that isn’t expensive, go price it out and see what it costs. You might be surprised. Most folks think that since they can send email from their computer for free, Email is free…it is… up to a point.

For folks like us, who send many thousands of Emails you have to use a commercial bulk sender. For just a list of 5K people, a good sender gets 85 bucks a month. 20K is a couple hundred a month.  Imagine the monthly fee for sending 100,000 or more? It gets expensive.

So we decided years ago, we’d eat the monthly costs and try and send out Emails that truly help people. No we don’t put out every stock, or every opportunity we see. To stay in business we need to save that for the members of the Insiders Club. But we try and put enough good information out that a reasonably sharp person could base their trading activity on our overall outlooks.

The other day I got an email from someone basically yelling at me that there was no “actionable” advice in the newsletter. To which I can only shake my head. Consider this… Last month  I did something we rarely ever do, we devoted the entire newsletter to the market. There was no commentary. The reason was that what we saw in the market was so important I wanted to drive the point home. For the first time in years we had just about every signal we follow pointing to a serious pullback.  

We laid out all the reasons why we felt that we could be facing our first 10% drop in over 3 years. That was a Sunday edition and sure enough by the end of that week the pullback had began and we did indeed get our first major shakeout. The DOW dropped over 1,000 points.  We got our 10% drop on the S&P.  Now the fact that we didn’t put out the exact shorts you should have bought to capitalize on it, doesn’t mean that the letter didn’t have actionable information in it. We showed you all exactly why you could expect a major drop.

 

All you had to do was sell some positions or take a short side approach to capitalize on it.  We bought the TZA, which is an inverse ETF that goes up if the Russell Goes down. We sold half for 18% and the balance for 24% gains. Then we flipped and bought the Q’s on the long side for the bounce, and they’re up 6.5%. If you need to know exactly what to do, then by all means you need to be an Insider’s Club member.  For just 200 bucks a year, it’s a major bargain. But if you can follow the plot just a little, you can do it by yourself with just these letters. (and it costs you “0”)

Okay, sorry, I just had to put that out there.

So today was Fed day. Monday and Tuesday were uncharacteristically strong for the days ahead of a Fed meeting and frankly we didn’t expect that. Tuesday’s huge gains were based on no news, no nothing…just momentum. While the day ahead of an FOMC meeting is usually green, they’re never that green.

The funniest part of today was that Alan “bubbles” Greenspan who once wrote a paper about how gold should anchor any economy and then changed and said gold is a relic while he was Fed head… came out to say QE didn’t help the economy, that the unwind will be painful and you should buy gold.

Go figure, right??

Okay so the Fed’s released their statement and of course they ended QE. We all expected that, but what we didn’t expect was how hawkish the statement was. They didn’t talk about rushing back in with stimulus, and in fact they didn’t even whine that inflation was too far below their target rate.

That’s the one that made me sit up and take notice. Everyone expected Yellen to keep the door cracked open for more QE by saying low inflation was bugging her. But instead she said  “Although inflation in the near term will likely be held down by lower energy prices and other factors, the Committee judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat since early this year”

Wow.

The market got pretty volatile after the statement, dropping 90 bouncing 50, falling 100 and so on. I can understand why, that statement caught them all off guard.

So what happens now? For all intents the economy is a lot more “on its own” now and we all know it can’t stand on its own. So in the very short term, like between now and the Election next week, they might try and remain brave, but after that? We could easily see the market slide back down.

So for those looking for “actionable” advice, here’s some. Don’t do a darned thing right now. The cross currents are enormous. The Fed’s just took away a LOT of the punch from the bowl. But the Wall Street crowd will say that’s because the economy is so good. So there will be a tug –o-war over that. We have the elections next week, and the market is often “levitated” into elections, only to flounder afterwards. Economists are already expecting a rate hike in Spring, versus everyone thinking it was coming as late as 2016. That will bother some.

All in all, the next few days are going to be strange. We’re going to see some chop for sure. If you add this Fed statement to the fact that we’ve come hundreds of points in a very short period of time, we have the recipe for more wild swings.  Caution is the advice right now. We’ll get the signals soon enough if we should be buying or going short. I’ll see you all on Sunday.

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