GOLDMAN SACHS SHARES SOAR TO HIGHEST LEVEL SINCE FINANCIAL CRISIS ON EXPCTATION OF HIGHER INTEREST RATES UNDER TRUMP WHICH WILL HURT REAL ECONOMY, COST JOBS

November 30, 2016

Well, the verdict on Donald Trump’s Treasury and Commerce picks is in. Goldman Sachs and Wall Street banks shares are soaring to new heights as investors believe interest rates will rise and there will be lighter deregulation. Higher interest rates will benefit bank but hurt the real economy  and real jobs at a time of recession and increase inflationary pressures.

So, my prediction now is that Trump will lose voter over the poor economy at the mid terms. But he may not be impeached because of his recent moves to detach himself from his business as long as it doesn’t go bankrupt in a shrinking economy and with higher interest rates.

He may also not lose that much if he delivers on Obama care and immigration. He could, then, use the second half of his term to make radical changes and renationalize the Federal Reserve.

But for someone who claimed he wanted to drain the swamp and deliver prosperity, to see him pick the very banksters he railed against when he had such a huge mandate for change, will make voters wonder whether they do not need to find another candidate.

From Bloomberg.

Shares of Goldman Sachs Group Inc (GS.N) on Wednesday climbed to their highest levels since the financial crisis, as the bank benefited from a post-U.S. presidential election rally.

Goldman, like other Wall Street firms, has seen its stock soar after the Nov. 8 election, as investors expect banks to see benefits from rising interest rates and lighter regulation under a Donald Trump presidency.

In recent years, bank stocks have been largely thought of as utilities, rather than growth stocks. Post-financial regulations have forced banks to hold large amounts of capital which hurt returns.
 
But since the election, the KBW Nasdaq Bank Index has risen 11 percent, outpacing the broader Dow, which is up 4 percent.

http://www.reuters.com/article/us-goldman-sachs-stocks-idUSKBN13P27Q


TRUMP CONFIRMS HE HAS PICKED ROTHSCHILD AND GOLDMAN SACHS BANKERS ON TWITTER. USA SET FOR DEEPENING RECESSION IF INTEREST RATES RISE DUE TO INFLATIONARY PRESSURES OF ROSS’ TRILLION DOLLAR INFRASTRUCTURE PROJECT?

November 30, 2016

Donald Trump has confirmed that he has chosen Steven Mnuchin and Wilbur Ross as his Treasury and Commerce Secretary. I just hope he knows what he is doing.

If Ross’ trillion dollar infrastructure funded by private banks plan proves to be inflationary, and the Federal Reserve raises interest rates by even a small amount, it will mean a lot of pain for US businesses already battered by years of recession.

Zerohedge reports that Ross’ plan will result in a significant increase interest rates.

 “His infrastructure plan calls for up to $1 trillion in additional spending over ten years, most of it privately financed. A memo released in late October by Mr. Trump’s economic advisors Wilbur Ross and Peter Navarro detailed a plan to finance up to $1 trillion in infrastructure spending over ten years, equal to $100bn per year or about 0.5% of GDP. We previously estimated that a spending boost of this size would reduce the unemployment rate by about 0.3pp and raise inflation a touch, leading the Fed to eventually hike one or two more times by 2019 relative to a baseline without the infrastructure package.

The plan described by Ross and Navarro would be largely privately financed, but encouraged by tax credits. The plan would seek to incentivize the private sector to increase investment in infrastructure projects that would be supported by future usage fees, such as road tolls. Ross and Navarro suggest that 17% of the initial investments could be financed with equity and the remainder with debt. The government would then provide a tax credit equal to 82% of the equity to reduce the cost of financing. The large role of debt-financed private investment in Mr. Trump’s infrastructure plan implies that a significant increase in interest rates could be a hurdle for the plan’s feasibility.”

Wikipedia on US federal debt.

“However, $1 trillion in additional borrowing since the end of FY 2015 has raised the ratio to 76.2% as of April 2016 [See Appendix#National debt for selected years]. Also, this number excludes state and local debt. According to the OECD, general government gross debt (federal, state, and local) in the United States in the fourth quarter of 2015 was $22.5 trillion (125% of GDP); subtracting out $5.25 trillion for intergovernmental federal debt to count only federal “debt held by the public” gives 96% of GDP.[22]

The US federal debt is heading to 20 trillion. A one percent interest increase would, therefore, cost the federal government 200 billion dollars alone, a two percent interest rate increase 400 billion dollars.  And the state and local debt still has to be added.

http://www.usgovernmentdebt.us/

US household debt is 12.5 trillion. A one per cent increase in the interest rate will cost American households 125 billion dollars alone.

http://www.cnbc.com/2016/05/24/household-debt-climbs-to-1225-trillion-in-first-quarter.html

Total US debt including business and private is 65 trillion dollars. A one percent interest rate increase will cost 650 billion dollars. That will virtually wipe out the entire trillion dollar infrastructure programme. And if interest rates rise by 2 or 3 % then the infrastructure programme will end up costing the Americans nearly 2 trillion dollars per year.

http://www.valuewalk.com/2016/11/u-s-debt-looming-crisis/

So, the success of Ross’ infrastructure project in stimulating the real economy even a little bit depends on keeping the interest rate from increasing by even a small amount. Otherwise debt will continue to grow faster than the economy. That means taxes will have to be raised to pay the higher interest rates or the budget will have to be cut.

But at least Trump is insulating himself against a possible move to impeach him after the mid term elections by divesting himself of his business interests. That means, Trump will, hopefully, be around to change out his cabinet if they fail to deliver significant jobs and growth.

And he has already defused tensions with Russia and picked a health secretary to dismantle Obamacare.

https://www.greatagain.gov/news.html

Wilbur Ross for 25 years led Rothschild Inc., where he built a legacy as a vulture banker descending on bankrupt companies, stripping them of assets, firing people etc but he later helped failing energy companies.

http://www.foxnews.com/politics/2016/11/30/trump-formally-announces-ross-for-commerce-secretary.html

“The son of a New Jersey school teacher and a judge, Ross attended Yale and considered a career as a fiction writer until a summer internship on Wall Street steered him toward finance. After an getting an MBA from Harvard, he spent two decades heading Rothschild Inc’s bankruptcy advisory business, where he represented investors in Trump’s failing Taj Mahal casino in the early 1990s. Ross and Carl Icahn convinced bondholders to strike a deal with Trump, who some investors wanted to push out, which allowed Trump to retain control of the property.

In what may be his most notable deal, Ross brought together LTV Steel, Acme Steel and Bethlehem Steel in the early 2000s under the name International Steel Group; in 2005 he sold the firm to what is now ArcelorMittal for $4.5 billion, netting $260 million for investors. His foray into investing in distressed coal companies that same year proved similarly lucrative: Ross went public with his coal assets, under the banner International Coal Group, and personally made $210 million.”

Steven Mnuchin is a Goldman Sachs banker who has made money in finance, not the real economy, and who has bankrolled films like Avatar, pushing the Globalist world view.

No plans have been announced to recapture the Federal Reserve and renationalize the money supply, the only long term way of achieving real prosperity.

President-elect Donald Trump’s transition team has also begun holding meetings at the Department of Homeland Security  with Frances Townsend, and on Tuesday, with Rep. Michael McCaul (R., Texas), two GOP homeland-security experts who have in the past been openly critical of some of Mr. Trump’s comments on Muslims.

http://www.wsj.com/articles/donald-trump-transition-team-turns-focus-to-homeland-security-1480516922


TRUMP TWEETS ABOUT OHIO MEETING, STILL NO CONFIRMATION OF MNUCHIN AND ROSS

November 30, 2016

THERE IS STILL NO CONFIRMATION ON DONALD TRUMP’S TWITTER OR FACEBOOK ACCOUNT THAT HE HAS CHOSEN STEVEN MNUCHIN AND WILBUR ROSS AS TRESURY AND COMMERCE SECRETARY.

FIVE MINUTES AGO HE SENT OUT A NEW TWEET ABOUT HIS EVENT IN OHIO TOMORROW.

LET’S HOPE TRUMP IS WELL PROTECTED! IF TRUMP IS ASSASINATED, MIKE PENCE WILL BECOME THE PRESIDENT AND WILL BE ABLE TO PICK AN ENTIRE CABINET OF GLOBALISTS.

 


TRUMP STILL TO CONFIRM MNUCHIN AND ROSS APPOINTMENTS AS GOOGLE PLUS TELLS ME WHAT TO POST ON MY BLOG

November 30, 2016

Leading Democrats are already attacking Steven Mnuchin as the personification of the Wall Street swamp. Yet there is still no confirmation from Donald Trump himself on his twitter account that he has indeed picked him as the Treasury Secretary or Wilbur Ross as Commerce Secretary.

Mnuchin and Ross may have appointed themselves in an interview with CNBC in a media coup d etat.

http://www.marketwatch.com/story/elizabeth-warren-mnuchin-is-the-forrest-gump-of-the-financial-crisis-pelosi-expected-to-survive-leadership-challenge-2016-11-30

In a separate development, Google plus has sent me an email with a specific blog they want me to add.

Google told me to consider adding posts from the former Swiss banker and economist Francois de Siebenthal…

google

No thanks, Google plus. You do not choose what goes up on my blog. I make my own choices.


EMERGENCY! MEDIA COUP UNDERWAY. MNUCHIN AND ROSS ANNOUNCE OWN APPOINTMENTS ON MAINSTREAM MEDIA, NOTHING ON TRUMP’S TWITTER

November 30, 2016

THE MAINSTREAM MEDIA ANOUNCED THE VICTORY OF HILLARY CLINTON IN ADVANCE IN AN EFFORT TO PREEMPT THE PRESIDENTIAL ELECTION RESULT.

NOW ANOTHER  MEDIA COUP SEEMS TO be UNDERWAY TO INSTALL GLOBALIST INSIDERS STEVEN MNUCHIN AND WILBUR ROSS AS THE TREASURY AND COMMERCE SECRETARY.

MNUCHIN JUST TOLD CNBC THAT HE HAD BEEN PICKED TREASURY SECRETARY AND WITHOUT ANY ANNOUNCEMENT FROM DONALD TRUMP.

NEVER BEFORE HAS A CANDIDATE ANNOUNCED THEIR OWN APPOINTMENT ON MAINSTREAM MEDIA.THAT IS SOMETHING FOR THE PRESIDENT ELECT TO ANNOUNCE.

TRUMP TODAY TWEETED ABOUT HIS PLAN TO HOLD A PRESS CONFERENCE IN NEW YORK IN DECEMBER CONFIRMING HE IS DIVESTING HIMSELF OF ALL BUSINESS INTERESTS.

BUT AT THE TIME OF WRITING THIS, HE HAS NOT TWEETED THAT HE HAS NOMINATED EITHER MNUCHIN AND ROSS AS WOULD BE EXPECTED IN A REGULAR NOMINATION PROCESS.

 TRUMP DID TWEET HIS NOMINATION OF TOM PRICE AND ELAINE CHAO.

TRUMP SHOULD SLAP DOWN THIS MEDIA COUP BY MNUCHIN AND ROSS. THE EMBARASSMENT WILL BE ALL THEIRS IF THEY ARE REVEALED TO HAVE MADE A POWER GRAB FOR THE TREASURY AND COMMERCE POSTS WITHOUT TRUMP’S PERMISSION.

THEIR ANNOUNCEMENT ON THE MAINSTREAM MEDIA DISCREDITS THEM IN ADVANCE. HE CAN REMOVE THEM WITHOUT ANY EMBARRASSMENT WITH ONE SINGLE TWEET TELLING THEM AND THE MAINSTREAM MEDIA “NOT SO FAST. I PICK THE CABINET. MNUCHN AND ROSS ARE STILL ONLY IN THE RUNNING AS I LOOK FOR THE BEST TEAM TO MAKE THE AMERICAN ECONOMY GREAT AGAIN.”


PLAN TO SAVE THE EURO AND INTER GOVERMENTAL COOPERATION IN EUROPE IS NEEDED AS EU AND EURO FACE COLLAPSE UNDER DEBT BURDEN, SOVEREIGN MONEY IS THE ONLY HOPE

November 30, 2016

A plan is needed to stabilize the euro as the EU collapses.

A defeat for Italian Prime Minister Matteo Renzi in the referendum on December 4th could lead to early elections and a rise in support for the Five Star Movement, which has pledged to carry out a referendum on whether Italy should stay in the euro area.

http://www.independent.co.uk/news/world/europe/italy-referendum-euro-matteo-renzi-five-star-movement-a7443706.html

But as the European Union and eurozone are set to break apart, there is a danger the euro itself could collapse.

“Jim Mellon, the Chairman of the Burnbrae Group, has warned the currency will become a victim in the growing anti-establishment surge which will cause the EU to fracture – all within five years.

He said: “Brexit is going to be a sideshow to the problems of Europe that are becoming more and more evident.

“The euro as it stands at the moment is just a very inappropriate mechanism — I give the euro between one and five years of life.”

http://www.express.co.uk/news/politics/737986/Brexit-Euro-collapse-Italy-referendum-investor-prediction

So, we need a plan to stabilize the euro and stabilize inter governmental coordination through euro group style meetings throughout this brewing crisis.

The ECB is currently printing limitless money at 0% interest to try to keep the euro bloc governments afloat. amid unprecedented levels of debt

But the euro is already sliding in value on the foreign exchanges. If this slide continues, it could lead to a surge in inflation as imports become more expensive. The European Central Bank will then have to chose between allowing the euro to continue to slide and allowing ever higher inflation or hiking up interest rates. Yet economists think even a one per cent hike in interest rates would cause a deep recession in the eurozone given the gigantic amount of debt to be serviced. That means more businesses struggling to get by will go bankrupt and inflation will continue to rise in a downward debt death spiral of inflation and interest rate hikes.

The USA faces the same dilemma, but the inflationary pressures will likely be created by an ill judged trillion dollar infrastructure plan on the basis of private money floated by Wilbur Ross. As a result, the USA will go deeper into debt, have to borrow more from the private banks, pay more interest, raises taxes. The economy will continue to implode, taxes will have to increase to pay ever more interest to the banks in a downward spiral.

So the euro is set to collapse either through inflation or an interest rate increases unless a radical change is made.

Now is the time to work out a plan to switch the eurozone over from the private creation of money, the root of all this debt, to sovereign money.

As this blog has reported, the ECB is a public bank which, however, routes all the euro notes and coins, the legal tender in the eurozone to about 6000 private banks. That is to say, the euro, like the dollar, is a currency in the control of private banks. In the USA, the private banks actually own the Federal Reserve.

Through their monopoly on the money issuance, private banks can operate their fractional reserve banking system, printing money out of thin air and charging interest for loans that are just book keeping entries, as Vienna economics professor Franz Hoermann explained in an interview in Der Standard in 2010.

In addition, there is no legal basis for the de facto privatization of the euro  just as their is no constitutional or legal basis for the privatization of the dollar. There is no article in any treaty allowing the euro to be in the hands of private banks as this blog has noted.

In June 2015, I actually wrote to the ECB  to ask you which rule statue or legal provision allows the European Central Bank to direct euro notes and coins to private banks and not to the government directly?

As has been widely reported in the mainstream media, private banks have a  de facto monopoly on the creation of money in the eurozone as in the USA and UK.

http://www.telegraph.co.uk/finance/comment/9623863/IMFs-epic-plan-to-conjure-away-debt-and-dethrone-bankers.html

I asked where this was allowed in European Treaties and constitutions after I had not been able to find any clause making this lawful or constitutional.

The reply I got showed that there is only one little technical rule buried in a Treaty allowing this scam.

“The so-called prohibition of monetary financing is based on article 123 of the Treaty on the Functioning of the EU, see http://www.ecb.europa.eu/ecb/legal/pdf/c_32620121026en.pdf, which reads:

Overdraft facilities or any other type of credit facility with the European Central Bank or with the central banks of the Member States (hereinafter referred to as ‘national central banks’) in favour of Union institutions, bodies, offices or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the European Central Bank or national central banks of debt instruments.”

A screenshot of the email reply from the ECB.

media


IF TRUMP PICKS MNUCHIN AND ROSS, HE WILL LIKELY LOSE THE MID TERMS AND BE IMPEACHED

November 30, 2016

Media reports suggest that Donald Trump is likely to pick Steven Mnuchin and Wilbur Ross for Treasury Secretary and Commerce Secretary today.

In that case, it is highly likely that the Democrats will make big gains in the mid term elections due to a downturn in the economy and the loss of jobs, and that Trump, bereft of political and popular support, end up being impeached over financial conflicts of interests.

The logic behind picking Goldman Sachs partner Steven Mnuchin seems to be that he was a loyal finance campaign manager of Trump.

Was he really? Or was he just helping Goldman Sachs to hedge its bets.

Goldman Sachs helped fund Hillary Clinton’s campaign directly. But just in case she didn’t win, they put their men in positions to take the Treasury and Commerce posts, and to continue the crushing of the real economy for the profit of the banks while ensuring that Trump lost power very quickly.

Let’s be clear. Trump did not win the presidency because of money cleverly managed by Mnuchin but because of the social media and new media and because he put so much hard work in to the campaign.

To hand the fruits of all his efforts now to his political and financial enemies is the height of folly. But if he choses to be foolish, then his voters will organize new candidates to recapture the Federal Reserve and return prosperity to the USA, candidates who have more emotional and psychological resilience.

Even Fox News has asked what is going on? Why is Trump packing his cabinet with the swamp?

“Part of this is probably a reflection of the fact that Trump put Vice President-elect Mike Pence in charge of the transition. This certainly so far looks like the kind of cabinet that Pence might have picked for himself,” notes Fox.

http://www.foxnews.com/politics/2016/11/29/whos-swamping-who.html

Yesterday, Trump spoke to bankster insider John Allison about abolishing the Federal Reserve and allowing the private banks to regulate the money supply.  Abolishing the private Federal Reserve will not abolish the private banks and their monopoly on the creation of all the money in circulation in the USA always with interest.  It will make the interest, debt and real economy worse.

Trump’s aim has to be to renationalize the Federal Reserve and issue debt free money.  That is a hole in one financial move which will guarantee an upswing in the real economy and in real jobs.

As president, Trump has to be able to ring up the Federal Reserve and say “I want a trillion for the military, a trillion to build a wall in Mexico, a trillion to regenerate inner cities and a trillion to see fund new businesses tomorrow.”

That is the power that will be in his hands if the Fed is renationalized and the power to print money is returned to the US people, US government and its president.

It sounds too easy to be true. It is that easy. The hard part is not being assainated or hoodwinked when he power.

Just as air is supposed to circulate free of charge, money is supposed to circulate free of charge to allow for trade. Free money is the life blood of trade. It is like the road system ofa country.

Supposing every single road in the USA were privatized and every vehicle had to pay a toll of 100 dollars every mile. The transport and trade system would break down. That is the same as the privatized system of creating money. Everytime, a person uses a dollar bill they have to pay a huge toll. The toll is hidden in federal taxes, in inflation or deflation, in booms and busts.

Trump cannot afford to continuewith this system of the private creation of money at the end of a bust cycle when the entire economy is about to collapse under the weight of its interest and debt. He must change over immediately to the sovereign issuance of money.

He has to set inflation controls, stop massive amount of forgeries entering system and shadow banks.

The fact that all the neocons and Never Trumpers in the Republican party are cheering at his cabinet picks, should be a warning to Trump that something has gone very wrong and he is heading for disaster.