As Deep State Hysteria Builds, Trump “Knows This Thing Is Rigged To Blow”

Via USAWatchdog.com,

Radio host Dr. Dave Janda says everybody in Washington knows the next big crash is right around the corner. It’s been 10 years since the Fed reflated the last meltdown, and Dr. Janda says President Trump is already blaming the Federal Reserve for killing the economy that his policies revived.

Dr. Janda explains, “President Trump has been pointing the finger at the Fed. He’s been pointing the finger at the Fed, and that is exactly where he should be pointing…

The globalist syndicate’s tentacle is the central banking system, and, in particular, in the United States, the Federal Reserve. The Federal Reserve is one of the entities that is directly responsible for this financial mess our country is currently in. You would never see Obama or the Bushes, or Bill Clinton, point at the Fed and say what Trump has said.

Trump said, ‘I think the Fed has gone crazy. I think the Fed is making a mistake. They’re so tight with interest rates. I think the Fed has gone crazy.’ Just the other day, Trump said, ‘My biggest threat is the Fed. . . . The Fed is raising rates too fast, and it’s too independent.’ Now, wait a minute, listen to that. It’s too independent. When was the last time a president of the United States said the Fed was too independent? . . . . Banking groups, that is their priority. So, when the President says the Fed is raising rates too fast, and it’s my biggest enemy, and too independent, what he is saying is they are looking out for their own interests. They are not looking out for the interests of our country or for you or for me or for any American, and he’s right. I don’t know of any other president that has had the guts to say this.”

So, what happens next?

Dr. Janda says, “Trump knew this thing was rigged to blow, the economy, the financial system, and when the right time came, he would start pointing the finger at the globalists, the Fed. I believe that’s where we are right now.”

On the Democrats taking back control of the House, Janda says the blue wave will turn into a red tsunami. One Democrat after another, including Hillary Clinton, has threatened violence if Democrats do not take back the House of Representatives. Janda says,

“These are not statements from people that are in positions of power or people that are riding a blue tsunami to victory in the midterm election. These are people that are potentially drowning in a red wave, and they know it because their internals are telling them that. This is why they are acting out.”

On the subject of Deputy Attorney General Rod Rosenstein, the short story is he has flipped and is working on the Trump team.

In closing, Dr. Janda says, “I would say we are winning. The reason I say that is all these judicial appointments…

I believe we have a five to four rule of law majority in the Supreme Court. I believe (DOJ prosecutor) Huber has been working on these indictments behind the scenes, and they will be unsealed as soon as the declassification occurs. I believe military tribunals have been set up and will become more overt in their operation, but that doesn’t mean we have already won. We are winning, and we are in the process of winning. We have not won.

That’s why I believe these midterm elections are so important. This is why we are seeing the hysteria out of the Deep State players that are the mid-level puppets. This is why we see the Bookers, the Clintons, the Obamas and Bidens all lashing out.

They know if people vote for rule of law candidates across the board and don’t buy into this agenda that the globalists are putting forward such as no border security, sanctuary cities, raising taxes, and if you don’t vote for us, we are going to beat the hell out of you, if they don’t buy into that agenda, the Deep State players know the rule of law will be implemented like it’s not been implemented for decades in America. The Deep State globalists are in the crosshairs of a true justice system as opposed to a justice system that is just smoke and mirrors.

Join Greg Hunter as he goes One-on-One with Dr. Dave Janda, host of the popular radio show “Operation Freedom.”

(Program note: The interview is nearly 1:45 minutes long, but it is packed with cutting edge information and analysis.)

(To Donate to USAWatchdog.com Click Here)

Futures Slide After Report Trump Has No Intention Of Easing China Tariffs

After closing Friday’s session unchanged, S&P futures have slumped 0.6%, or 10 points, to 2,749 dipping below both Thursday’s and Friday’s lows…

Dow down 140 points…

… with the Nasdaq down -0.8% so far in early trading…

… after an Axios report poured cold water over enthusiasm that the upcoming G-20 meeting between Trump and Xi could lead to some progress in the ongoing trade war.

According to Axios, and contrary to recent hopes of a detente in the ongoing trade war between the two superpowers, Trump has no intention of easing his tariffs on China. Instead, Axios’ sources say “he wants Chinese leaders to feel more pain from his tariffs” which he believes need more time to fully kick in.

He wants them to suffer more” from tariffs on $200 billion of Chinese goods Axios said, citing a source with direct knowledge of Trump’s thinking, and the president believes the longer his tariffs last, the more leverage he’ll have.

In other words, Trump’s trade war with China is at the “beginning of the beginning,” and his team doesn’t expect much from the tentatively planned meeting between Trump and Chinese President Xi Jinping on the sidelines of the G20 summit in Buenos Aires next month.

So why are the two leaders meeting?

The Trump economic team has done no substantive planning so far for the bilateral meeting’s agenda, largely because the purpose of the meeting is for Trump and Xi to reconnect, eyeball each other, and feel each other out amid their escalating trade war.

“It’s a heads of state meeting, not a trade meeting,” a source with direct knowledge told Axios.

As another source explained, “Trump is thinking about this meeting as a personal reconnection with President Xi, not a meeting that’s going to evolve into detailed discussions” and added that “the sides are very far apart. … Right now, there’s not the common basis for proceeding.”

Reading between the lines suggests that if anything, the G-20 summit could lead to an even worse outcome as Trump isn’t focused on the details of a potential China deal, “he’s focused on creating more leverage” which could mean adding even more sanctions, especially if Trump is content with the outcome of the midterm elections.

One way, perhaps the only way, Trump has been gauging who is hurt most from the trade war is the stock market, and here China – where the Shanghai Composite recently dropped 30% from its January highs, is clearly the biggest loser.

The generic point Trump makes to aides, per a source with direct knowledge: “‘We are strong and they are weak.’ … He believes more pressure will bring them to the table to make a deal.”

That’s unlikely: instead of preparing concessions to Trump, China has been more focusing on boosting investor confidence in the stock market, although the recent rout shows there is much more work left. On Sunday, none other than president Xi Jinping joined this confidence boosting exercise and vowed “unwavering” support for the country’s private sector, the latest response from Beijing to concern over the outlook for the economy.

“Any words and practices that negate and weaken the private economy are wrong,” Xi said in a letter to private entrepreneurs, Xinhua News Agency reported Sunday. “Supporting the development of private enterprises is the Party Central Committee’s consistent policy,” Xi said quoted by Bloomberg.

Xi’s remarks came after top officials moved to shore up confidence with a rare show of coordinated comments on Friday after a furious margin call-driven sell off on Thursday. Among them, Vice Premier Liu He said China would support the development of private enterprises. At a meeting with policy makers on Saturday, he added that authorities need to accelerate the implementation of measures to encourage healthy development of the economy, according to a statement on the State Council’s website.

Meanwhile, the key negotiators have not made any progress whatsoever: while Treasury officials have had contact with key Chinese negotiator Liu He’s camp to exchange information, there’s been “nothing close to real negotiation” sources said.

“There is some contact with mid-level Chinese, but not much. … I wouldn’t overestimate the planning process.”

Worse, Mnuchin’s negotiating team has told the Chinese there’s no point in them floating plans to buy U.S. products as the key priorities — structural issues like IP theft and market access — must be addressed. And since China will never concede on this issue, especially as it would mean admitting US accusations of IP espionage, there is virtually no hope of any resolution in the near-term.

As Axios summarizes, “all signs suggest the trade war between the U.S. and China is just getting started,” and is unlikely to end any time soon because as Axios’ Jonathan Swan notes, “nobody I’ve spoken to has heard Trump express any concerns” over whether his tariffs could backfire due to Chinese retaliation against American consumers or companies – a position Trump will hold until China does retaliate again.

And finally, confirming that there is absolutely no hope of any near term resolution, in an interview with the FT, Larry Kudlow accused China of doing “nothing” to defuse trade tensions ahead of the G20 meeting in Argentina next month. A detailed list of asks “basically hasn’t changed for five or six months. The problem with the story is that they don’t respond. Nothing. Nada.

“It’s really the president and the Chinese Communist party, they have to make a decision, and so far they have not, or they have made a decision not to do anything, nothing. I’ve never seen anything like it.”

And with futures on the back foot, we now await China’s open which after Friday’s furious “verbal intervention” rally are set for another move lower as trade fears re-emerge.
 

A 10% Drop In Stocks Would Send GDP Sharply Lower In 2019, Goldman Finds

In addition to boosting the intangible “wealth effect” by raising consumer confidence and encouraging spending, rising stock prices have a benign effect on the broader economy by directly stimulating US economic growth and GDP. And vice versa: when stocks drop, tightening financial conditions, US GDP is impacted adversely.

That’s the observation made in a Friday note from Goldman economists, which tries to quantify the growth effect of the equity sell-off, and finds that “the stock market is likely to turn from a significant contributor to strong growth at the start of the year into a modest drag next year, barring a further rebound in equity prices.”

Picking up where another recent Goldman note left off, which as we discussed yesterday concluded that the Fed will have to hike rates more than the market expects in order to substantially tighten financial conditions and slow down the economy, bank  economists Jan Hatzius and Dean Struyven write that “the 6% decline in the stock market since late September has been the most important driver of the recent tightening in financial conditions.” As a result, the bank now estimates “that the 0.5% boost to GDP growth from higher equity prices at the start of the year has already disappeared.”

As shown in the chart above, Goldman explains that the run-up in the equity component, i.e. rising stock prices, of the Financial Conditions Index drove most of the 185 basis points easing from the start of 2017 till late January, when the index hit its record low. Conversely, the 6% sell-off in the S&P 500 since the September all-time high has been the biggest factor in the tightening of financial conditions and has accounted for two thirds of the roughly 50bp FCI tightening over the last month (other factors include the rise in rates and the dollar which account for about half of the -1.5% swing in the FCI impulse from +0.75pp at the start of the year to -0.75pp in the first half of next year).

Looking ahead, between the Fed’s own tightening  posture and potential continuation of the equity selloff, Goldman expects a decline in the equity impulse to real GDP growth to about -0.25% in the first half of 2019. This assumes that the equity component of the Financial Conditions Index stays at current levels, which is “roughly consistent” with Goldman’s forecasts for a 2019 year-end level of 2,850 on the S&P 500 and $159 EPS by end-2018.

Considering the reflexive nature between the stock market and the broader economy, Goldman also looks at the sensitivity of the equity impulse and its growth forecast to future stock market moves, i.e. what happens if stocks rise notably above or below this 12-month 2,850 price target.

First, the good news: should the recent market weakness fade, and stocks rally, Goldman assumes that the S&P 500 can rise about 4% per quarter to 3,350 by end-2019, roughly 15% above the September peak. In this case, the growth impulse from equities will rebound to +0.25pp in the second half of next year, and the continuation of the bull market “will likely keep GDP growth in 2019 well above potential at 2.4% on Q4/Q4 basis.”

Next, the not so good news: should the sell-off continue and stock prices fall an additional 10% in Q4 to around 2,500 and stay flat, some 15% below the September all-time high, Goldman estimates that the growth impulse from equity prices would turn from a neutral factor today to a -0.75pp drag by Q2 2019, as shown in the chart below. According to its calculations, Goldman concludes that such a decline would push GDP growth down to 1.6% in 2019 on a Q4/Q4 basis, below our estimate of potential and well below our 2.0% baseline forecast.

Summarizing its findings, Goldman’s economists warn that “the stock market has turned from a key growth contributor to a roughly neutral factor, and will likely be a modest drag by early next year”… or a substantial drag if equities drop another 10% or more. Which is probably why the bank’s economists appear to have turned somewhat skeptical on their otherwise cheerful economic outlook.

Further sharp stock market moves represent an important two-sided risk to our forecast that growth will gradually slow to potential by end-2019.

What is odd, is that this report came out at the same time as Goldman’s other assessment of Fed hiking risks, which concluded that Powell will hike another 5 times before year-end 2019, or 2 more hikes than the market is currently anticipating. That forecast has yet to change, which begs the question: is Goldman’s latest note confirmation that it will revise its Fed rate hike estimates in the coming days if the selling persists, and, by extension – is the market now on the verge of a steep correction should the Fed keep raising rates?

While it remains to be seen whether Powell will be as easily swayed by market gyrations as his predecessor, the above analysts explains president Trump’s increasingly belligerent posture vis-a-vis the Fed’s tightening plans, because as Goldman’s analysis reveals, any further selling in US stocks will have a prompt, and adverse, impact on strong US growth which has so far been the biggest achievement of Trump’s administration (granted with the benefit of some $1.5 trillion in fiscal stimulus).

In other words, if stocks do tumble, and GDP in early 2019 prints sub-2.0%, below Goldman’s estimate of potential and well below its 2.0% baseline forecast, expect the war between the White House and the Marriner Eccles building to escalate dramatically in the coming months and certainly ahead of the 2020 presidential election. The question then will be whether Powell will end the hiking cycle, or – to indicate the Fed’s independence from the White House – will keep pushing rates higher, until the market cracks far more than just 10%.

NYU Hosts Marx Birthday Bash… During The Wrong Month

Authored by Andrew Lawrence via Campus Reform,

New York University is hosting a two-week celebration of Karl Marx’s May 5th birthday… from Oct. 17-28.

NYU Skirball, formally known as the Jack H. Skirball Center for the Performing Arts, will host a two-week celebration of the communist philosopher in commemoration of his 200th birthday.

The birthday bash, titled “On Your Marx,” will feature a number of performances and events, including a “dance party,” a professor-led lecture on “racial capitalism,” and a performance highlighting socialism.

Admission to these events will be free, and students will be instructed to “pay-what-you-think-it’s-worth,” according to the NYU Skirball. Attendees will receive a note featuring the cost of every facet of production and can then decide upon the production’s value, representing its demand, a process that the event description suggests will help artists learn how to earn money. 

This structure is based on Marx’s philosophy encompassed in a quote featured on the event website:

“The writer must earn money in order to be able to live and write, but he must by no means live and write for the purpose of making money.” 

NYU held the premiere event, titled “P Project” on Wednesday. Audience members were given cash if they participated in performances with Ivo Dimchev, a Bulgarian-born performing artist.

“P Project (2012) is an escalating, interactive performance where actual cash fuels participation based on several P words, such as Piano, Pray, Pussy, Poetry, Poppers, and so on,” the description reads.

“The People will be offered several opportunities to Participate in the P Project, for which they be [sic] Paid quite well.”

NYU’s Tamiment Library will host a “racial capitalism” lecture, led by NYU faculty professors Arun KundnaniMichael Ralph, and Nikhil Singh, on Thursday. 

The school is hosting “Let Us Eat Cake” in honor of Marx on FridayDJ AndrewAndrew, a New York City-based creativity team will be “spinning the finest Marxist tracks” and there will be “readings from the masterworks Das Kapital and The Communist Manifesto,” according to the event page.

The two-week celebration will also include a number of discussions on a wide range of topics, including labor, aesthetics, and consumption. NYU faculty members Lisa DailyDean Saranillio, and Jerome Whitington will lead a discussion on climate change and global capitalism in the Department of Social and Cultural Analysis on Oct. 23.

As the celebration draws to a close, NYU will host an event titled “Courtesy the Artists: Popular Revolt” on Oct. 26. 

“As we free fall into fascism, let’s imagine alternative moves. In this collectively produced performance, the assembled performers take socialism as a ‘fake it ’til you make it’ proposition,” the event description says.

“Popular Revolt addresses an increasingly distracted public with the riotous, rebellious power of liveness. Popular Revolt re-invests revolutionary urgency into historic models of Marxist theater to dismantle Neoliberalism, the global economic force shaping our every day.

Several NYU Office of Communications representatives did not respond to requests for comment.

Kamala Harris Rolls Out $6,000 Annual Tax Gimmick Three Weeks Before Midterm Election

Three weeks before midterms, California Senator Kamala Harris (D) floated new legislation which would give American families making less than $100,000 an annual tax credit of $6,000 per year, while those making under $50,000 would be eligible for up to $3,000 per year, reports the Sacramento Bee

Kamala Harris, Willie Brown

“Americans are working harder than ever but stagnant wages mean they can’t keep up with cost of living increases,” Harris said in a Thursday statement, citing a 2017 survey from Bankrate.com which found that more than half of Americans can’t afford a $500 unexpected expense – such as a medical bill, rent increase or child care. 

According to Harris’ office, recipients could receive the money in either monthly payments or annually.

“The Institute on Taxation and Economic Policy estimates the (bill) would impact one in every two workers and two out of every three children in America,” according to Harris’ office, in addition to approximately 1 million Pell Grant-eligible college students. –SacBee

Harris’ plan has the support of several prominent liberals, such as California NAACP president Alice Huffman, Sacramento Mayor Darrell Steinberg, Stockton Mayor Michael Tubbs and the mayors of Los Angeles, San Francisco, Oakland and Long Beach.

Stockton Mayor Michael Tubbs

Tubbs made national headlines in January over a “basic income” scheme that will take effect next year, offering $500 per month to residents who meet income requirements.

Many are skeptical of Harris’ basic income proposal, such as Jack Pitney, professor of government at Clairemont McKenna College, who said “There’s no real chance that this will become law in the next couple of years.” 

In part, that’s because it’s unlikely that Democrats will win enough seats to gain a majority in the U.S. Senate in 2018; political polling website FiveThirtyEight gives Democrats just a 21 percent chance of turning the Senate blue.

“Even if it did, (the bill) would need 60 votes to overcome a certain filibuster,” Pitney said.

So why introduce a bill that’s unlikely to become law?

It appeals to the Democratic base, it appeals to low-income voters, it’s a very clever tactic to turn the tax issue against the Republicans,” Pitney said. “Republicans were hoping their tax cut would be a political bonanza but it backfired on them. People don’t like it and this is an effort to ride that sentiment.” –SacBee

Pitney suggests that the introduction of the bill, despite its low probability of passing, is yet another sign that Harris may be a serious contender for a 2020 presidential bid. 

If it did become law, Pitney says “as a policy, it would be problematic,” as it would mean reversing tax cuts that have been in place for years. 

“But as politics right now, it’s probably going to give her quite a boost,” concluded Pitney. 

Gossip and views about privacy, gold, wealth, asset preservation