A FEW THOUGHTFUL COMMENTS BY BILL BIGELOW (WGB) ON A
NUMBER OF TOPICS.
I knew totally
about Romney via Bain Capital in 2012, but given what disaster I saw Obama had done to this country over the previous 4 years, I backed Romney even though I
knew Romney’s history was one of establishment leanings and a destroyer, not
creator, of American jobs. Unfortunately, Romney proved to be just another John
McCain/Bob Dole and ran his campaign in a manner whereby he seemed not want to
do what was necessary to win. Romney was bound up in the disease of political
correctness. Now, Obama has brought the country to the proverbial financial
brink with $9T more of borrowings floated over the past 8 1/2 years and with
Speaker Ryan’s cave in on the Cromulus Budget Continuing Resolution Bill (which
he needed 90% of the House Democrats to pass last January), the outstanding
Treasury Debt is now projected to hit nearly $22T by 2019---provided
international investors continue to buy our bonds/notes, which could be iffy
once the U.S. falls into recession or worse.
Wall Street/the
five “to big to fail U.S. banks” now run casinos instead of free investment
markets. The five banks have outstanding “off their balance sheets”
nearly $300T of very high risk financial derivitives (read financial gambling
bets) and there are another $300T outstanding globally of such
gambling instruments, including asset swaps. If any contract participant runs
into financial trouble due to its bet going against them (which causes the
other party to demand the losing party pony up their side of the financial
bet), then the whole global house of cards could collapse very quickly. Pledged
collateral is involved with most such transactions, but it has been now
determined the same collateral is being pledged for many other like
transactions. Such contracts now represent a significant percentage of
big banks’ annual income.
Wall Street is
deathly afraid of Donald Trump because he knows the banks, as operated, are
unsound and they know he can’t be bought off. That fear is
increased substantially upwards because Trump has stated the policies of the
FRS (owned by the Wall Street banks and other elites) have been dangerous for
the country’s future and he has said several times he, if elected President,
will replace Fed Head, Yellen. Clinton does not scare Wall Street/Major Banks
for she is totally in their financial hip pockets.
Foreigners,
especially Chinese leaders, are petrified of a Trump Presidency. Following I have pasted an article
addressing this fact. (WGB)
Money and Markets: Investing Insights
The Donald and the Dollar
Boris Schlossberg | Wednesday, May 11, 2016 at 4:30 pm
The
night of the Indiana primary, something interesting happened in the currency
market.
As
the Asian session was just opening, the news of Donald Trump’s decisive victory
pushed the dollar higher against most major trading partners, especially
against the yen.
Then,
later in the night, when Ted Cruz dropped out of the race, the greenback pushed
even higher.
For
most investors, the notion that the Donald is good for the dollar may seem
bizarre.
So
why then would the dollar rally on the idea of a Trump win? The reason actually
lies elsewhere. One of Trump’s strongest and most committed policy
stances is that the U.S.-China trade relationship should be seriously re-examined.
His
take-no-prisoners stance against the Chinese could actually become the key
stress point in the global economy. China is already hurting. After spending
more than a trillion dollars in additional credit, the Chinese economy
continues to slow. In fact, imports have fallen by double-digits
on a year-over-year basis for the first four months of 2016.
Despite
their typical bravado, the Chinese leadership is clearly worried. And what they
fear most is a rapid devaluation of the yuan. The country is already running a debt-to-GDP ratio of
280%. (WGB
Comment: The U.S.
ratio is now 104%, and rising rapidly) And despite $3 trillion in reserves, Chinese
policymakers are very concerned that capital outflows could quickly deplete
their war chest.
For
the past few months, mollified by the dovish stance of the Fed
and the still uncertain outcome of the Republican primaries, the yuan
stabilized. But now that a Trump presidency looks like a real possibility, the
prospect of a yuan crash has become a much bigger risk. (See my comment below
on why this statement is incorrect)
Trump,
of course, is the master of seizing his opponents’ weakness and will likely be much
more hard nosed with the Chinese than Hillary Clinton would be. Little wonder, then,
that the yuan has fallen to its weakest reading against the buck in more than
two months. The currency markets are beginning to understand just how the game
will be played.
(WGB
Comment: What this writer does not seem to know is the results of the
secret Shanghai Accord held last January, whereby the IMF dictated to the U.S.,
China, EU, Japan the following scheme to bail out the Chinese
yuan/economy through coordinated currency manipulations: Japan's yen
and the EU's euro would be significantly increased in value (even though their
economies were struggling), whereas the U.S. Dollar would be market devalued.
Given the yuan has been pegged to the U.S. Dollar, the yuan would fall in value
by the amount the $ drops in market value. Thus in IMF’s THEORETICAL shell
game, the scheme would help bail out the Chinese economy as Chinese
exports via resultant lower product price decreases. Donald Trump, under his
“Making America Great Again” strategy, would never have allowed the-is
agreement to be approved by the Federal Reserve, because Trump will have
immediately replaced Fed leaders/globalist wonks by Value Money policy
advocates. Note: This secret accord was exposed by Jim Ricards, ex-CIA
international financial expert. Rickard’s citing of the terms of this secret
agreement has since been validated by the currency pricing actions in the
international markets and via various government official statements coming
from/actions taken by the agreement participants since last January)
So,
being convinced this is the most important election of our lifetime, an
election which will determine whether this country survives
financially/socially or crashes, my wife and I will do anything we can to make
sure Donald Trump beats Hillary Clinton.
Bill
Bigelow
