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5.1.2019 - Financial Intelligence Bookmark

Venezuela
 
So it's Tuesday afternoon and I'm minding the market, keeping an eye on a couple stocks I'm interested in. Then I start seeing things in my news feeds that are really disturbing. Down in Venezuela, they're on the brink of a civil war, or worse, a clash between loyalists to Maduro, and the new US puppet Juan Guaido.

 

 
I was receiving video's of skirmishes between protestors and the military. There was video of shots being fired, smoke bombs going off, and a lot of screaming and shouting. But the most horrifying video shows a government tank, literally running over a crowd of people.
 
A group of maybe 30 people were off to the side of the road, and a Venezuelan tank coming up the road, turned straight toward them at a fairly high rate of speed. It hopped the curb and plowed right through them. I couldn't tell how many were crushed, but it wasn't pretty. If you're not squeamish, this is a clip of it:


 
This is definitely warfare. This is definitely a coup. This is war. Now, I'm really not up for walking down memory lane and describing how this nation has come to this. It's a long story, and not a good one. We'll leave all that for another day. But there is something I'd like to contemplate while we're watching this nightmare unfold. Could it happen here?
 
I'm guessing your immediate thought was "heck no, we're no socialist nightmare like they are," but are you right in that assumption? Have you been listening to the new waves of Democrat Presidential hopefuls? They make no bones about saying they like socialism. Bernie is indeed a socialist.
 
But here's my real issue. Between now and the 2020 election, BOTH sides are going to ratchet up the rhetoric. The left, not content with Muellers report, or Barr's interpretation, are going to continue trying to stop Trump in any way they can. On the other side, Trump has pretty much declared that all the "bad guys" behind the fake dossier, the FISA scandal, the Comey/page/strzok, collusion, etc, should be investigated and prosecuted.
 
Recently Kevin Shipp was on with Greg Hunter. Shipp was a former CIA officer, and he says that the violence from the left is going to increase big time.   Shipp, a former manager of high-risk Counter Terrorism Center protective operations with the CIA, predicted that there would be arrests of deep state figures who were involved in the scandal. "This was a coup. It was a conspiracy. It was criminal activity. These people need to be indicted, charged and need to be put in prison, and if they're not, then our Constitution is nothing more than a sham," said Shipp.
 
He added that there was an ongoing "civil war" within the government and that, "There is a Marxist movement within the DNC that is in control right now." "The danger for 'We the People' is the Dark Left and Dark Left violence," said Shipp. "As these indictments begin to come out, and as the players are called out, the violence on what I call the Dark Left, the violence is going to increase to the point where it's going to be very, very bad. There are going to be beatings and probably shootings, and shooting at police. . . . There is going to be a lot of violence coming from the Left in the next year or two."
 
Shipp urged Americans to exercise their Second Amendment rights in preparation for a violent attempt by the left to take over "our Constitution and culture."
 
The scenes of violence out of Venezuela today remind me of just how ugly things can get over politics. Well, I agree with Mr. Shipp. In fact, long before he got some air time saying that the violence is going to rise, I was telling you the very same thing. Groups like Antifa, College professors proclaiming that the real problem in America is "Whiteness," the left going unhinged over collusion that didn't/doesn't exist, is going to be amplified.
 
Now, if Trump follows through, and we start to see the Comey papers, and the unredacted FISA applications, and more and more people from the Obama/Hillary cabal start to get exposed, the Deep State Marxist demons, will not simply lay down. No, they're going to fight back, and fight back with all their might.
 
Every day there's a story of someone attacking a person wearing a MAGA hat. Every day there's protests and counter protests over Trump. Many is the protests that have erupted into rock and bottle throwing, punches thrown, etc. As this escalates, it's going to go from protests and fist, to people getting shot. But that's just at the ground level.
 
What sort of "stuff" will the Deep State mutants unleash if some of their own ilk start getting arrested? I don't know, but I can easily see National Guards having to be called in to put down mass riots.
 
I'm not trying to spread fear porn here friends. Look at Venezuela, they're enduring a coup. The US is enduring a coup attempt of its own. You have to be dumb as a rock to truly not believe that "some people" did a full blown attempt to 1) stop Trump from becoming President, and then 2) went to all ends, to try and take him down as the Sitting President. They did, it's right there, in your face.
 
Now it's a matter of payback. If Trump either won't, or can't go after the plotters, then yeah, we're doomed. We're just another backwoods hick nation with criminals at the top, doing anything they want ( well, that pretty much sums up the reality of things for the last 12 years anyway) But if he does, and I tend to think he will, all hell has the possibility of breaking out. Why do I think he will? He LOVES revenge.
 
In 2005 Trump was giving a "motivational" speech to a group of about 1K people. In that speech Trump recommended revenge as business policy. "Get even," he said. "If somebody screws you, you screw 'em back ten times over. At least you can feel good about it. Boy, do I feel good."

Two years after that speech, Trump released a book called "think Big". Guess what chapter 6 was titled? "Revenge".

Sixteen pages of Think Big are devoted to revenge. All of them run directly contrary to "forgiveness". Trump leaves no room for doubt that revenge is a guiding principle of his life - "My motto is: Always get even. When someone screws you, get them back in spades"
 
Now he's President. He's been roasted 24/7 by the media. He's been called out by every lunatic College professor in liberal land. He's had to endure a 22 month investigation that found nothing, but instantly the left has said that the Mueller report is just the beginning. He's taken it all.
 
But my guess is that Mr. Revenge has been keeping notes. He knows who set him up, how they did it, what they were after. And I believe he's going to be looking for savage revenge. I think he has a vision for every one of the people that have tried to get him, and that vision is ugly. Perp walks. Charges of Treason.
 
We are a year and a half out from the next election. It's my guess that to help people see the "wrongs" that these people did, Trump is going to time-release papers, start investigations, and do his best to annihilate these people before the next election.
 
How bad could it get? Look at those video's from Venezuela folks. Think it can't happen here? I PRAY you're right, because most of this country is not cut out for true civil warlike clashes.
 
It's probably a good time to take some defensive measures. If you don't own a gun, get one. If you do, put some extra range time in. Don't post political items on your house or lawn. You might love Trump and want to show support. But that sign in your front yard is nothing more than an invite for some jacked up leftist to do you, or your wife, or your home some damage. Don't invite the problem.
 
Likewise if you hate his guts, keep it to yourself. You never know when some borderline nutcase who think's Trump was appointed by God, will take a shot at you. While most Trump followers are pretty good people, who tend to be well behaved, there's always a rotten apple in the barrel. Don't attract him.
 
Crazy times folks, and I flat guarantee they're going to get crazier. Think about it.
 
The Market:
 
So, this week was/is FOMC week, and you often get some goofy things happening in market land. Well, Monday was a slightly up day, then yesterday, they reversed a 130 point drop, and ended the day slightly green. You could "smell" the hidden hand that didn't want the market fading.
 
But today, today was special. My prediction was that they would do NO rate cut, NO rate hike, but they might play with the rate they pay on reserves. So, what happened? No hike, no cut and they lowered the rate on reserves.
 
NOTE>> Just so you understand, the Feds pay banks to keep reserves with them. But because they're keeping so much of their reserves with the Feds, they're not lending as much as they could. So the Feds, lowered what they're paying, hoping it will force banks to lend and get higher rates.
 
Okay, so the statement hit, and the market really liked it. We were up about 20 DOW points and a few minutes later we were up 65 and looking higher. All was well with the world. But then it was "Powell" time, as he does a press conference after every 2 day event now.
 
Things were still going "okay" until the one moment that he thought that the dip in inflation might be transitory ( temporary) and then all hell broke loose. Why? The market was looking at the Feds whining that inflation had fallen, and thinking that's a precursor to a rate cut, to get inflation moving. By suggesting the pause in inflation is transitory, he took the rate cut out of their sails. Boom, down we went.
 
So, we ended the day with the DOW off 162,and the S&P down 22. That was a pretty good hit and put the S&P back below the old All-time high.
 
Let's chat about that. The market has been flirting around at the all-time high level for a week. During the intra day sessions, we see them put in new highs and then at the close, we may or may not have set a new closing high. But what we're not seeing is a really powerful blast higher. It's struggling here.
 
Well sure it is. THE MARKET IS FAKE. Its manipulated. It's managed. If you were going by true fundamentals and GAAP accounting, and the way we used to measure unemployment and inflation, this market would be at DOW 12,000 NOT 26,000. But, because so much of the worlds derivatives and "fake growth" is connected to an ever rising market, they keep pushing and prodding it higher, higher than it could ever possibly be organically.
 
So we've got a real war going on. Everyone with a firing brain cell knows this market is a bubble of epic proportions. But, as I've pounded into you a zillion times, just to keep the market running in place, it needs ever more injections of juice. It's the Junkie theory in full cinema. The junkie always needs more junk, just to sustain a level of high. So does our market.
 
That's why just the hint that they Feds won't be cutting rates takes 160 points off the DOW and 22 S&P's. So here's the question. Since the criminal bankers have only one of two choices to make, which one is it going to be? Continue printing, and allowing inverted yield curves and lower real rates, or let things start to normalize and see the market collapse?? For the past ten years, the answer's been clear. Full Steam ahead.
 
Even today Powell said that "some equities" appear to be overvalued, but not excessively. WHAT?? Are you kidding me? We're in the mother of all bubbles. Companies have used so much fuzzy math they look like Chia pets.
 
But that's the scam. Use "pro forma" accounting. Don't expand your business, do stock buy backs. Is this going to stop? Listen to me carefully, this is vitally important. They can NOT stop or the market crashes. The economy, implodes.
 
Yet they know that continuing as they have been, they're blowing the mother of all bubbles, far surpassing the tech bubble of the 90's. They know there's no way out, print or crash.
 
Well, here's something else I have pounded into your head. The Feds cannot be seen as causing a crash. The LAST thing the cabal of criminal central bankers want is to catch the blame for causing a market crash of these proportions. So, they're going to go through the motions of keeping things looking good.
 
Remember Powell's 180 degree turn around in the fall? He was a cocky, swaggering Central banker and by damn he was going to raise rates 4 times. When the December 20% haircut hit, he was on his knees begging for forgiveness and buried the idea of another rate hike for "a long time." Yeah. So, yes, they don't want any blame for causing a crash.
 
But I also think they're well on their way to fomenting an "event." Something they can blame as the reason for a crash. War, runaway disease, a financial failure that ripples through the system, something.
 
When this bubble pops, it's going to make the last two bubble pops look tame. Do you think Central bankers want that on their heads? The middle class who's been raped and robbed is about at the breaking point. When their 401K's go to hell, they're going to look for the cause, and if it's the Feds, they'll go ballistic. The Feds will want something to blame it on.
 
So I still think we go higher, at least for a short time. Maybe I'm wrong, because this market wants to correct badly. But I suggest they'll make up some more fake news like a China trade deal or something to placate things, and up we'll go.
 
We are in totally uncharted water folks. No one's ever seen the level of manipulation, fraud, lies, and collusion as we're seeing. The market's been completely taken over and managed, and when it ends is anyone's guess. Just do your best to be prepared for when it does.

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