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10.30.2016 - Financial Intelligence Report Bookmark


I wrote the following article, “what happens to the market after the election” on Friday morning. It’s kind of funny because nothing major was happening and I felt this weekend would be a good time to start thinking of a post election strategy. Well then you all know what happened. At 1 pm, the FBI announced that they were looking into more Emails concerning Hillary.  Then all hell broke loose.

The market instantly went from up 74 to down 50. The liberals went apoplectic asking how the FBI could be so insensitive to open an investigation with just 11 days to the election. The Trump people shouted for joy that maybe, just maybe the rule of law in the US could be saved. It was really something to watch.

Theories abound concerning what they have and why they did this. I could list about 10 “theories” that come to mind. 1) they see the real early voting results, realize Trump is going to pull this off and they want to save their necks 2) the FBI insiders were going to spill the beans on what they know, as many field officers felt betrayed by Comey 3) Comey knows that WikiLeaks is going to release information this week that ties ALL the top politicians into the corruption, and wants to get ahead of it 4) FBI agents that were NOT throttled about investigating Hillary, were working on Pervert Weiner/Huma emails, and found so much stuff they were going to go forward, because they were Agents not silenced by Comey.

On and on you can go. Pick your favorite. But what we do know so far is that Agents reportedly found thousands of State Department-related emails ostensibly containing classified information on the electronic devices belonging to Weiner and his wife and top Clinton aide Huma Abedin. The discovery has prompted FBI Director James Comey to, on the eve of the election, reopen the Clinton case he prematurely closed last July. (from  the NY Post)

I am not going to kid myself and tell you how all this works out. I simply don’t know. What I do know is that Weiner was sexting a 15 year old. He should be in jail. Huma says she didn’t know about clinton’s private server, when in reality, However, another witness told FBI agents that he and another Clinton aide with computer skills built the new server system “at the recommendation of Huma Abedin,” who first broached the idea of an off-the-grid email server as early as the “fall (of) 2008.”

So Wiener/Huma have thousands of emails, many of them classified State Dept. emails, and certainly “some” of them will have direct connections to Hillary and staff.  How all that plays out is a great question.

Here’s my questions... Is this the first election where one of the candidates is possibly under investigation for criminal activity?  If even more bombshells hit, will the DNC yank her and replace her? Is there the remote possibility Obama uses executive order to delay the election, giving the DNC time to form a replacement?

This is going to be quite the interesting week, so until then, here’s some longer term issues to chew on...
What Happens To The Market After the Election?
Very shortly we’re going to have a new President. What does that mean for the economy, and what does that mean for stocks and bonds?  What on earth do you do with your investments? What about careers?  That depends on who gets in.

One thing liberals tend to miss when they push for open borders, ever more hand out’s and the Nanny state, is that history is replete with examples of what happens to those empires. In the end, they digest themselves and crash.  Centuries ago it happened to the Roman’s . It happened to Argentina. It happened to Venezuela, and it will happen to us.

Donald Trump is getting his support from the middle class that is being wiped out. There’s a Michael Moore Video out that’s getting an amazing amount of views, where he explains why there’s this tidal wave of support for Trump. It’s because the system has destroyed their lives and they want to fight back. They want to give the establishment the middle finger.
He’s right.

That’s simply the emotional reaction to the unfairness. See, most middle class Americans are basically good people that tend to live within the boundaries of the law and common decency. So when they see the Clinton’s of the world flaunt the law as not pertaining to them, when they see the  Department of Justice collude with the “machine”, when they see the emails, the FBI folding, and the system rigging, they want to fight back.  They are mad to the core that this stuff goes on in America. These are the things that 3rd world nations are made of, not the USA. They hate it. They want it cleaned up.

They detest the hypocrisy. They see Michelle Obama put on this crocodile tears talk about how offensive the Trump tape was and that for the good of all women, they have to vote for Hillary. But then they also see Michelle invite rappers to white house parties. Rappers that sing songs talking about the most vile things you could imagine concerning women.  Evidently if Black rappers say it, somehow it’s wonderful. If some pudgy white guy says it, it’s the worst thing human ears have ever heard.

But it is considerably deeper and darker than that.  What liberals don’t tend to realize is that the things they preach for, NEVER makes a nation greater, it always destroys it from the Inside. Here’s how it works.....

As the Government gives more and more to the masses, it has to be paid for. Let’s use Obama care as the example. When this lunacy was first floated, we screamed that it would not work, it wouldn’t be sustainable and costs would skyrocket. But they played on the “kindness principle” and kept repeating “Just think, 30 million people would now have healthcare that didn’t before”. Well everyone wants to be “nice” and so they held their nose and said okay.

But now costs have skyrocketed. Bill Clinton himself said the system was “crazy”. We just learned that premiums are going to rise 25% nationally. In Philadelphia, it will soar 56%. Now... who’s paying that? The people that can still afford it. But that percent continues to dwindle as insane policies continue to maul the middle class. So Obama care has to continue to go higher and higher for the people that pay into it. As less people are working to support it, the prices have to rise.

Eventually however there’s a problem. At some point there’s X amount more people taking Obama care, than there is people paying into it. The system fails.  Always remember this folks, the liberals look at the rich and want to take from them and give to the poor. But there’s an ever increasing amount of poor and a disproportionate amount of rich. They’re called the 1% folks. That’s because 99% aren’t them.  When 99% want what 1% have, but don’t want to get it through work and success, they just want to take it... things go bump in the night. Ask Venezuela. Ask Argentina. Ask Sweden.

At some point, as is happened throughout history... the imbalance becomes too great and the nation goes down. The 1% crawl off to their hide out’s in New Zealand and in the Bahama’s, and the 99% are left struggling to survive.

So one thing we think we know is that Hillary will indeed speed up the Socialization process. More hand out’s, more refugee’s, more illegals, more big Government hand outs, etc.  In the long run, it is hard to think how any of that results in higher markets.  With banks buying stocks, with Government in every nook and cranny of our lives, there’s going to be a day where they own everything. Read again...everything.

If Trump wins, can he really do all the things he’s promising? No, he can’t. Now that probably shocks you because you think I’m a rabid Trump fan. But facts are facts, and what he can do is DELAY the globalist push for world domination. He can jam up the gears of the elitist push for more dumbing down of the people and he can try to bring some jobs back.  He can stop some of the things that seem to fly in the face of the American people.... Such as importing thousands of so called refugee’s, most of whom are not vetted and frankly...some of which are carrying horrible diseases.

But here’s something you have to think about folks. The past is GONE. The days of tens of thousands of factories humming away, where every kid can stumble out of high school and get a decent paying job with benefits is history. No matter how hard someone like a Trump tries to bring back the magic of the 50’s and 60’s, they cannot be brought back.  Tariffs won’t do it. Closing borders won’t do it. Threatening companies won’t do it.

Why? Because as I’ve mentioned time and time again, the robots are here. This is NOT like the first or even second industrial revolution. In those revolutions, machines helped build TOOLS that helped Humans do their work better and faster and safer. Today the machines aren’t building tools to help us, they’re building tools to REPLACE us.

On my local TV station Amazon itself was running an ad looking for employees to help for the Holiday season. We have a big Amazon warehouse/picking operation about 40 miles away. I went to the site to see what they offer. Here’s Amazon. The big dog, the leading retailer.  What they offer is 10.50 an hour.

But that’s not shocking. What is shocking is the video of the machinery in the building. Robots that automatically load carts, drive them to the proper storage shelves, lift the carts to the right bin, insert them, then backtrack their path and pick up another load to deliver to a different aisle.  Dozens and dozens of these machines, all perfectly running around with their pre programmed routes. They know how to avoid people, they know when to stop and let other machines go by.

That’s the work humans used to do. The machines don’t call out sick. They don’t need benefits. They don’t talk back, they don’t have kids to pick up at school. They just work, 24 hours a day.  This is a trend that is not stoppable. Fast food joints are using touch screen kiosks instead of high school kids at the counter. There’s now Pizza chains where the entire process from flour/water/cheese etc, is automated. There’s ONE guy that oversees it. In the Auto industry, each day there’s a new machine that does the fitting work that 4 humans did. On and on it goes and it can’t be stopped.

Four days ago I watched the same news you did. A beer truck made a 100 mile delivery run, and it was completely self driving. In a very short period of time, truckers are going to be outnumbered by robots. Oxford University researchers have estimated that 47 percent of U.S. jobs could be automated within the next two decades. And if even half that number is closer to the mark, workers are in for a rude awakening.

So what is the answer going to be? What are truckers and pizza makers and burger flippers and stenographers, and a litany of others going to do for a living when automation takes them out? Millions of pages have been written about that very thing and they started writing about it in the 50’s. Yes folks, the elites knew 70 years ago that at some point humans would be dispensable. We’re almost there.

What do you do with say 100 million people that have no jobs and no future?  The same thing you do for the inner cities. You hand out EBT cards and welfare.

The people most pushing for a one world “open borders” (Hillary) type  world, think that 1) there’s too many people on the planet. Hence the need for wars, genocides, etc. It is no secret that hundreds of thousands have died in the Middle East over the past 15 years. But what is the plan for when untold millions have no jobs?  Welcome the Universal Basic Income.

What the  leaders and shakers of the world have in mind is paying every man and woman over the age of 21 a basic “life wage” of approximately 10 grand a year. They figure that families will bond, so that if a household has 4 people ( mom, dad, 2 kids of 21) the house has an income of about 40K, enough to live on. They also speculate that instead of everyone laying on the couch eating bon bons, the security of having a basic wage,will give them the risk tolerance to go start small businesses. ( Bars, tea shops, bike shops, etc)

Donald Trump cannot stop technology. Hillary Clinton would like this all to happen over night. Eventually it’s coming.  In June, Switzerland held a referendum vote. The idea was a Universal Basic income for all adults. They would be paid 2,500 per month. It was voted down, but trust me, that was just a trial balloon.

So in the long run, let’s say 30 years, our nation is going to look terribly different than it does now. No matter what Trump does, all he can do is slow the slide, he cannot stop it. Let’s say he really is the ultimate patriot, wants to lift ever person, wants to create good jobs. Let’s say he’s honest about all that. The bottom line is that he cannot stop the advancement of technology and fact that people are going to be steadily replaced.  What he can probably do, is try and help people with the transition.

The idea of a steady high paying job is slowly dying. The future is going to be more self sustainability, and small business. Of the Two, there’s no question Trump’s concepts about less regulation and helping small business will help more than Hillary’s ideals. She wants to go from here to total governmental control and the Marxist dream overnight.

This has already become quite long, so I will continue this in part II on Wednesday. We will still need to chat about the short term implications of each, and what markets will do. I’ll see you all then. 

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