A FEW THOUGHTFUL COMMENTS

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