January 31, 2017

It is no accident that Goldman Sachs have planted into the Treasury the “foreclosure king” Steven Mnuchin. If the Federal Reserve and Wall Street go ahead with even small hikes in interest or their plans to sell vast amounts of mortgage securities and shrink treasury bonds, there will be a massive wave of new home foreclosures and an gigantic economic depression. Voters will turn against Donald Trump.

Wall Street will foreclose on the USA, and likely on the Trump hotel empire, something that may even end up in the hands of his son in law, Jared Kushner, who seems to have excellent relations to banks and can likely rely on secure credit lines.

Trump should use the opportunity that Mnuchin’s own lies during the Senate Confirmation hearing provide to drop him. Mnuchin’s lied about his assets, and then claimed, he did not realize he was being asked to disclose all his assets (the form was so complicated). Crooked Mnuchin! Drain the swamp, means draining that alligator.

And making the American economy great again, means reigning in Goldman Sachs and the Fed.

From Fox News

Mnuchin clashed with Democrats during a lengthy confirmation hearing on Jan. 19. He was accused of failing to protect thousands of homeowners from unnecessary foreclosures when he headed OneWest bank and for failing to disclose nearly $100 million in assets on forms he filed with the committee.

Mnuchin called his failure to disclose assets an oversight. He said he was proud of his tenure at OneWest, saying he had worked to protect as many homeowners as possible from losing their homes to foreclosure.

Opponents of Mnuchin’s nomination have been running ads in states which were hit hard by foreclosures during the housing crisis in an effort to bring pressure on Republicans to join Democrats in opposing Mnuchin’s nomination.

Is Merkel right to say undervalued euro is not her fault?

January 31, 2017

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First European country appoints ambassador to Google

January 31, 2017

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Trump’s trade chief accuses Germany of currency manipulation

January 31, 2017

Peter Navarro, Trump’s trade chief, has slammed Germany for exploiting a “grossly undervalued” euro to gain a trade advantage with the USA.

Navarro also slammed the door on any plan German car companies may have had to circumvent tariffs proposed by Trump by manufuring components outside the USA but assembling the cars themselves in the USA.

Navarro told the FT: “It does the American economy no long-term good to only keep the big box factories where we are now assembling ‘American’ products that are composed primarily of foreign components.”

Navarro said policymakers wanted a “robust domestic supply chain that will spur job and wage growth” and create well paying jobs for Americans so that they have the disposable income to buy American products in a virtuous economic circle or hire America and buy America.

Is the US stock market rally a set up to bring down Donald Trump through an orchestrated financial crash?

January 31, 2017

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January 31, 2017

Globalists Angela Merkel and Alexis Tsipras are continuing to escalate tensions between Greece and Turkey as part of an attempt to engineer a conflict between NATO, Europe and Russia.

Tsipras claimed that a Turkish Navy gunboat carrying Chief of General Staff Hulusi Akar at Imia islet is an act of retaliation after Greece’s Supreme Court ruled against the extradition of the eight Turkish army officers accused of participating in the July coup attempt.

Ekathimerini admitted the Greek Justice Minister would refuse their extradition no matter what the court ruled. The Justice Minister has had at least one meeting with George Soros’ puppet in the Ukraine, the US ambassador Geoffrey Pyatt. In fact, the Justice Minister was appointed after a cabinet reshuffle that took place just after Pyatt arrived in Athens. He may even be on Soros’ blackmail and bribery list.

Germany now face a similar situation as 40 Turkish soldiers have requested political asylum in the country and Turkey asks for their immediate extradition.

Tsipras is planning to ask for further involvement of Frontex in guarding Aegean waters and possibly further assistance from NATO vessels.

The irony will not be lost on anyone. Tsipras and Merkel who opened their borders to millions of migrants from radical Islamic countries and terrorists now want to claim those same borders have to be defended at all costs by NATO.


January 31, 2017

The U.S. Federal Reserve is expected to keep interest rates on fed funds unchanged on Wednesday, perhaps because their plan to raise interest rates has hit opposition.

The Fed now seems to be taking another approach to hiking interest rates and devastating the US and world economy by shrinking  their portfolio of mortgage and Treasury securities.

The Fed started buying these during the financial crisis. They are now the equivalent of about 22% of the GDP of the USA, according to some reports.

The Fed’s Treasuries and MBS holdings are about $2.46 trillion and $1.76 trillion, respectively.

“The Fed has boosted its portfolio of long-term bonds and other assets to $4.45 trillion from less than $1 trillion in 2007, just ahead of the financial crisis. Officials believe the large portfolio has helped to spur economic growth by holding down long-term interest rates,” says Reuters.

Therefore, it follows that the smaller, shrinked portfolios the Fed is planning will lead to an economic downturn by raising long term interest rates.

“Morgan Stanley analysts arrived at their call on the timing of the Fed ending its MBS reinvestments based on the Fed’s projected 3 percent longer-run equilibrium interest rate, together with their own forecast of two rate hikes in 2017 and three in 2018.”

To clarify, Morgan Stanley expects the interest rate to reach 3 percent in the mortgage market, resulting in higher mortgage rates for consumers, hammering already indebted householders, and leading to a wave of foreclosures.

As this blog has pointed out, Americans who are overleveraged by about 10 times their income, have to pay 10% of their income for every 1 per cent increase in interest rates.

The Fed is also planning not to buy more Treasuries, something which will push up the interest rates and wreck havoc on the US economy and dollar.

The Fed is justifying this financial crime by saying that they hope to get the portfolio back to some state of precrisis normalcy.

But the Fed is not supposed to make its decision on historical data but on current data. The USA is now at the end of a bust cycle and debt has reached historical levels. There can be no return to precrisis normalcy with these levels of debt. Where is the inflation?

The U.S. economy is not bumping up against full employment since most of the jobs added have been part time.

The claim that imposing tariffs on Mexican imports also would spur higher inflation is false. Tariffs would spur demand for products made in the USA by making them cheaper and more competititive.  Mexican manufacturers would be likely to seek to absorb as much of the tariffs by cutting their costs to avoid losing market share in the USA. American manufacturers would seek to expand production as quickly as possible to capture more of a market share.

The mainstream media even admits that the Fed plan will jolt financial markets, push up interest costs on government debt and mortgages and devastate the the US and world economy.

“A great deal is at stake with the bond decision. Shrinking the portfolio could jolt financial markets, pushing up interest costs on government debt and mortgage bonds and reverberating through the broader economy.”

“Officials… know plenty about the skittishness of investors. When they signaled they would end bond purchases in 2013, they sparked a market “taper tantrum” that sent interest rates higher and hurt emerging markets.

In fact, just floating the plan could push up interest rates, the Fed chair Janet Yellen admitted.

“Sheer anticipation of a drawdown of the bonds could push long-term rates higher, she said in a footnote to her comments. That’s a reason to proceed cautiously.”

Yellen should be put in jail for deliberately trying to push up interest rates to undermine the Trump administration.