Paper money is going away in the very near future. Sooner than you realize, paper money will be replaced by a “digital-USD”. Money is already digital. Your bank and brokerage accounts are book entries in a digital database. These book entries are claims that can be exchanged for paper money or paper stock certificates. Governments, including the US government, will be mandating the exchange of all paper money for its digital “upgrade.” Why and when will this happen? More importantly, what implications does it have for investing?
Regarding the when, its going to happen soon, very soon. Within 7 or 10 years, paper money will be history and not legal tender anymore. China is already testing a digital RMB, so our leading nation is well behind its competitor, and once China rolls out its digital RMB in 2023, our government will spearhead the rollout of our USD version. In reality, China is already fully digital. Nobody in China uses cash anymore, and credit cards are a very small piece of their market. Chinese people use Alipay and other digital payment mechanisms on their phones. Americans say “that can’t happen here, we value our privacy.” That’s ridiculous. If you buy with a debit or credit card, your grocery store knows when you buy broccoli and they know your brand of ice cream. If you have a smartphone, your phone company knows where you are at all times, and, yes, they sell that location data to hundreds of companies who pay for it. This location data is stripped of identifying records, rendering the data “blind” and “safe.” Most people inherently understand this, but what they don’t know is that basic algorithms can then figure out exactly who you are even based on this blind data. My friends at MIT get “blind” mobile phone data, merge it with other databases, and after they run it through algorithms, they know mostly everything about you, including your locations. In 2020, if you used a smartphone and a credit card, “they” know everything about you. In fact, most Americans choose to have very little privacy at all. Google knows when you are at your girlfriend’s house, they know what gifts you buy her and most of your favorite topics. This makes the digital dollar an easy sell for the government. Try taking away free gmail, smartphones and credit cards and see the voters scream – people don’t want privacy.
Later this decade, once the digital dollar is in place, the government can finally implement policy more effectively. For example, right now, the main way that the government “prints money” is to buy bonds in the open market and hope that banks will lend the money. The lent money is the increase in the money supply. This system has contributed to the wealth gap, and it has also led to a lot of leverage in the system. Furthermore, the Fed has tried to spur inflation with no luck. Why? The Fed really can’t make the banks lend under the current system. The digital dollar can cure some of these issues because the government, if its smart, will retain the right to manufacture digital dollars, thus bypassing the banks. The Feds are sick of trying to make the banks lend then regulating them because they are over-levered. It’s a faulty system and it is likely to be replaced by digitally created money supply which can then be sent out to the people directly. This will enable universal basic income (UBI) models to proliferate, and it will finally be easy enough for the government to make inflation go higher when they want.
It will also wreak havoc on the underground economy, specifically drugs and tax evasion. With the digital dollar, everything will be traced and tax evasion will drop substantially. Giving the government more power over the money supply (disintermediating the banks) will eventually be very inflationary. It could also be negative for the dollar exchange rate, but ultimately all governments will go this way so the FX rate implications are unclear at this juncture. What is likely is that an aging workforce will get UBI payments in an inflation-first environment. The government will try to inflate away the massive debt obligations, and they are likely to be successful. In 10 or 15 years, we will see massive inflation on the order of the 1970s or even worse. The Fed is on record saying they want inflation, and the politicians and public are addicted to the stimulus, so its print print print until we finally get sustained inflation.
How can one position themselves in this environment? Think about purchasing multi-unit apartments with long-term fixed rate debt. Getting a 25 year fixed rate mortgage in the year 2025 is going to be the safe way to short bonds in the inflationary environment. Note that 2025 is a number of years away, and you will want to structure these purchases before the digital dollar is in place. It doesn’t really look like we will get the runaway inflation now, so there are a few years prior to the inflationary spiral.
If you don’t want to own real estate, then consider buying medium-P/E equities. In today’s market, the best stocks have the highest P/Es because they are the best companies and distant profits are discounted back at very low rates, making these high P/E stocks beneficiaries of the low rate environment. When really-high inflation hits around 2030, these high P/Es are likely to be cut in half as interest rates spike upward. You want to still pay up for some quality, but market-average valuations should suffice. As always, stay away from the really “cheap” stocks unless you have done a ton of homework on each situation.
Finally, be wary of investing in traditional banking models. Right now all bank stocks are very cheap on both earnings and tangible book values. Banks are under siege from fintech solutions. The fintechs are fee-based and are slowly disintermediating the banks turf. Its safe and easy to have an online account, you don’t need a bank branch anymore. Branches are quickly becoming an anachronistic cost-hurdle that disadvantage traditional banks vs. fintechs. Even worse, fractional reserve banking is a terrible business model. Imagine a 0.7% or 1% ROA, then you have to lever up 10x to get a reasonable ROE. Of course, at 10x leverage, a 10% drop in collateral value mostly wipes you out. The next round of inflation, late in the decade or in the early 2030s, will basically wipe out all the banks. I predict the end of fractional reserve banking in its current form. If the government retains the right to print and distribute digital dollars, banks in the fractional reserve system won’t be as necessary. Its quite possible the next bank debacle will be significantly worse than 2008, so be wary of investing in banks later in the decade. Right now, bank investors are waiting for higher interest rates, which could add to profitability. Unfortunately, if rates really were to rise a significant amount, property values (collateral values) would fall, wiping out huge portions of bank equity – bank investors should be careful of what they wish for. In my view, bank investing is difficult if rates stay low and also difficult if rates rise. Keep time horizons shorter-to-medium term in any bank investments – don’t give the stocks more than a year to work.
Crediblock.com LLC - Second Sight Markets Analysis 7/8/2020 -- The global banking system is ripe for disruption. As we have explained in Splitting Pennies the book - the Fedwire system currently in use today in the United States to make wire payments was made in 1937. Banks are in need of a technology upgrade and strangely have been resistant to it. While the banking system has financed technology revolutions in other fields, they have resisted their own evolution. This can be seen most vividly with the large US banks, such as Wells Fargo and Bank of America. We have singled out these 2 big banks as being particularly terrible. We wrote about this issue in October 2019 and called $BAC short, for a 27% return. $BAC was trading at 28.90 when the article was written.
$WFC is trading at yearly lows so it seems easy to kick a dog when it's down, so we need to provide some context. We know that the big banks are suffering a demographic crisis. Yesterday, this author was refused a cash deposit at a physical branch because of new money laundering rules. Actually the ATM couldn't automatically read $200 worth of $20 bills. So after spending an hour fiddling with the ATM and arguing with the tellers, the $200 that was supposed to be sent to someone only got $180. Perhaps the cash rules are part of the plan to make currency completely digital, but that's not the point. What kind of bank refuses cash? The idea is absurd. Money laundering $20 ? That sounds like *real* money laundering (you know, when you forget cash in your pocket and it goes through the washing machine).
$WFC has heaps of problems. It's being sued for unfairly distributing PPP loans:
On April 19, 2020, after at least one lawsuit was filed against the Company, reports surfaced that Wells Fargo may have unfairly distributed government-backed loans under the Paycheck Protection Program (“PPP”). On this news the Company’s share price fell $1.54, or over 5%, over two consecutive trading sessions to close at $26.84 per share on April 21, 2020, thereby injuring investors. Finally, on May 5, 2020, the Company revealed that “it has . . . received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans.” On this news, the Company’s share price fell $1.74, or over 6%, over two consecutive trading sessions to close at $25.61 per share on May 6, 2020, thereby injuring investors further.
And that's just one issue. Their 'fake account' scandal has already racked up $3 Billion in fees.
Wells Fargo has so many scandals, Yahoo Finance put a timeline together so you can understand the history of them.
But are there any alternatives? You bet there are, tons of them. One bank is Chime, a no-fee startup. Signup for Chime bank - the FinTech bank with no fees and no branches, and get $50 for signing up!
That's not all. There's MoneyLion, and there is the new concept of 'banking as a service' from companies like Aspiration. Most of these banks can be invested in the private equity (Pre IPO) market.
$WFC has a market cap of $100 Billion + so it's not going to fall like a knife, and can rebound. The suggestion here is to sell the rallies, as these underlying issues seem to be part of a pattern. Management has created an environment where fraud breeds and goes unpunished. In the FX scandal, they allowed greedy traders to overcharge customers for simple transactions (converting one currency into another) sometimes in the wholesale markets.
Ultimately, when you are the victim of such practices, you find another solution. Customers will flock away from $WFC and $BAC for new alternatives like Chime, MoneyLion, and who knows what is next to come in banking.
For more detailed research, signup to Second Sight by Crediblock
Here's the bottom line:
- Last year, EBIX was investigated for improper accounting practices.
- They failed to 'come clean' completely with what happened.
- The company is not on a solid foundation, and the stock has suffered.
EBIX was once a fast growing company cited by Forbes, Fortune, and other financial publications. Last year the company was embroiled in a scandal that wasn't completely resolved, at least to the satisfaction of some. In case you've never heard of the Johns Creek, GA based firm, here's a summary of what they do from their website:
Ebix is a leading international supplier of on-demand infrastructure exchanges to the insurance, financial, and healthcare industries. In the Insurance sector, the Company’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administrative and risk compliance.
The market cap is as of this writing 1.2 Billion and shares are trading at $38 down from a peak of almost $84 one year ago. Here's a chart showing this movement:
The reason for the drop was the firm was caught with their hands in the corporate cookie jar, in legalese that means: “booking external revenues on transactions between its subsidiaries.” This caused a number of law firms such as Glancy Prongay & Murray to investigate wrongdoings according to press releases, but nothing materialized in the matter. This isn't (EBIX) first tussle with the legal system in USA, there have been cases alleging insider trading, as referenced by AJC:
Rennes, by selling for $77.20 per share ahead of the October announcement, appears to have avoided a potential loss of about $245,000, the AJC found.“The timing is certainly suspicious,” said attorney David Chaiken, who spent nine years as a federal prosecutor for the Atlanta U.S. Attorney’s office and now works in white collar and government investigations for Troutman Sanders. “A quarter of a million dollars is going to catch a prosecutor’s eye, definitely, or an SEC enforcement attorney.”
When EBIX did hire a new auditor to resolve the accounting issues, the new auditor found issues with internal controls, which caused the stock to drop further:
On March 1, 2018, Cherry Bekaert LLP, the Company’s outside auditor, expressed an adverse opinion about Ebix’s internal controls over financial reporting. The group reported, in part, that it had found (A) numerous accounting discrepancies regarding recognition of goodwill and acquisitions, and (B) evidence it believes demonstrates that Ebix is perpetrating a scheme to incorrectly book revenue and earnings.
Then there are cases going back as far as 2011, it seems like this company is attracted to litigation and risk like a magnet. Or, perhaps, there is something that is still yet to be uncovered properly, such as bad management. Does EBIX have proper internal controls? It seems that they haven't done anything to address the issues of these multiple cases.
Viceroy research has done an excellent job of researching this issue, their detailed reports are available here.
The last trick of tricky executives was the hiring of RSM, as they claim them to be the '5th' largest accounting firm, as if they were part of the "Big 5" - there is no more Big 5 now there is only the Big 4.
One of the notable conclusions in Viceroy's research, there are many, is the incentive based pay of the Indian based accounting firm RSM. India is vastly different than USA. What goes on in India, stays in India.
Incentive based pay means that they will be paid if the audits are made to a degree that are approved by management, i.e. the one who writes the checks. It may be legal in India, but it certainly is not in the united states.
Indian-Americans that work in high paid Wall St. jobs have the tendency to push the limits of what's legal, as evidenced by the case of Raj Rajaratnam, seen leaving prison to his fancy Manhattan condo valued in the millions of dollars. Then there is the case of Hotelier Sant Singh Chatwal that finally pled guilty to 'campaign fraud' which is bribing corrupt US politicians, in this case Democratic Senator Hillary Clinton and fellow Democrat in crime Chris Dodd.
This type of abuse of the US system is evidenced in Viceroy's report of the Raina "Foundation", available here. According to the Georgia Secretary of State, the license of the Robin Raina Foundation, Inc. is Expired as of 11/9/2014. The domain name rainafoundation.com is owned by Ebix Inc. according to WHOIS records. Clearly, this foundation is not a genuine foundation, but another example of fraud, a means by which the beneficiaries can siphon off funds from investors while claiming to be 'do gooders.' This is the focus of an ongoing investigation into the Clinton Foundation.
EBIX and it's executives are masters of smoke and mirrors. They are players in the great game of quarterly results and making things look like, on the surface in the US, everything is OK. But the sad reality, when you look at the facts, it seems like they are a one trick pony, and that trick is grey area accounting fraud. When your auditor is paid based on performance, it means they will do whatever you ask them to in order to be paid. That's not an independent audit, that's a white wash.
Based on publicly available research we believe that EBIX will continue to face challenges and the stock will suffer. For example, if the auditors are on the take, how about stock authors that are paid to promote the stock? EBIX has proven it will stop at nothing to bribe their way to success. That may be very American, however times have changed and markets now demand real innovation, not just self-promotion using any means necessary. EBIX does have a real underlying business there is no question about that. However, based on their continued behavior of manipulation, it's likely that the stock is overvalued. Also, if we were investors, we would want to see all the upper management replaced, with people unrelated to the events of the past few years. As it stands, EBIX is a stay away or a sell if you have, or a potential short - if you have the patience for the fraud to be uncovered.
For our premium subscribers, we are offering up custom macro analysis and research on EBIX including pending litigation, documents, and other evidence to substantiate our claims.
There is an expression on Wall St. that sheep get slaughtered. But in the past 10 years since the credit crisis, sheep have done pretty well as Quantitative Easing has pushed most markets through the roof. But let’s be clear about one thing, our underlying hypothesis which I’m sure most here will agree with: Inflation is not what the Fed is saying. We can debate about what real inflation is, however we can first agree that the stated CPI and other economic numbers that are tied to the official inflation figures are highly manipulated. As we explain in Splitting Pennies – the world is not as it seems.
So what’s the real inflation figure? There’s a lot of misinformation and bad data here so we can only look at micro economics for some answers. Take a look at Ohio and Tennessee, where the difference between official CPI and real food inflation is 39%:
Overall, in the specific case of cereals and bakery goods, the difference between the CPI price for the basket of six core food products, and the average price of the same products in Ohio and Tennessee, is a whopping 39%. This same execrise extended to all other goods and services in the basket would reveal a similar bias to misrepresenting prices to the downside relative to reality.
Here again are the results, represented visually.
The critical problem represented above is that while the Fed believes that the CPI calculation is accurate, and thus Americans can be subject to far looser monetary policy as the FOMC believes they are paying far less, the reality is that monetary conditions have to be far tighter for reality to catch down with the BLS's woefully incorrect price assumptions.
This is just one way numbers are manipulated. Whether this is intentional or not (we know it is, we just will never be able to prove it) is not the point. Not at all. The real point is that CPI is not real inflation, real inflation includes food, energy, health insurance, clothing, electricity, phone bills that are skyrocketing for no reason other than greedy telecoms taxing their monopoly subjects, and other necessities. Let’s face it, you can live without your iPhone you can’t live without food.
So what’s the alternative, how to beat CPI
The issue is that there are few investment alternatives that provide greater than 10% returns. There are so called alternative investments, where managers execute a strategy in markets such as futures, options, or stocks. But the problem here lies in choosing a manager. Plus, managers don’t necessarily perform consistently. It’s an alternative, but it’s not a fool proof solution. The fact is there is no fool proof alternative.
Another solution for investors they may want to delve into Pre IPO, whereby you can buy shares in Unicorn companies like Airbnb before the IPO. But this is a long term strategy and it relies on the individuals ability to choose which company will be the next Amazon, so we’re back to stock picking which we know doesn’t work.
Just like with mainstream investing, a balanced portfolio approach is suitable. But if you’re not a professional manager, it leaves you doing your own work for yourself. If you have the time, patience, and education to do it, as they say in New Zealand, Good on ya mate. Let’s call it DIY (Do It Yourself) investing.
The good news about this, you won’t pay a portfolio manager fees, to do this for you. We will let you in on a little secret, what’s the secret of building a strong portfolio with DIY investing, it’s all about the DD (Due Diligence). When evaluating an alternative investment manager, here are a list of questions you should ask them:
- Are you regulated, if so, by who? If not, why not? (This can be a big red flag, if a manager is unregulated.)
- How long have you been in business under this brand (Strategy) and how long have you been in THE business?
- Has the performance been audited? If not, why not?
- Can we see the documents testifying the performance is accurate? (you may need to sign a Non-Disclosure Agreement)
- How much do you have under management?
- What are the risks the strategy can blow up?
- Where do you live?
- Do you have kids?
- What are your hobbies?
You can see where this is leading. You want to get to know everything about your manager. If the manager isn’t willing to give his location, that’s a huge red flag. But it all needs to be evaluated in a greater context. For example, if a manager isn’t regulated but has $200 Million or more in Assets Under Management (AUM) that’s not necessarily a negative. Many managers will deal with Eligible Contract Participants (ECP) only, and thus registration is not required. But at the same time, this is the same story that fraudsters will use in order to justify why they aren’t registered. A single data point shouldn’t make your break your decision, it should be an overall story.
Managers with kids are likely older and have something to lose. Parenting is one of many harsh life lessons that keeps your ego in check and your ambitions realistic. That’s not to say that it should be a requirement, however, most of the frauds and situations where traders blew up the accounts were typically managed by younger Cowboys swinging for the fences or supporting a bad habit such as gambling or drugs, which is why the question about hobbies.
If you’re wondering if there are any benchmarks on alternatives, there are a few but they can be misleading. Let’s take a look at Barclay Hedge CTA Index:
The issue here is that these are self-reporting CTAs. Barclay Hedge offers a service whereby managers can report performance but it’s unverified. Most of them are honest, but as they are self-certified, Barclay Hedge tends to collect positive performance (if your strategy blew up why you would report it).
Just like the rest of capitalism, an entire industry has formed around advertising investments. It’s regulated but like most industry it’s a racket. Those with the money have the power to spend lobbying Congress for laws favorable to them, and as they control the media it’s a system similar to Oligopoly. The reason we tell this to a DIY investor is because you have to be able to distinguish paid advertising from solid research. A great site to start is www.zerohedge.com for the sole reason that it’s not controlled by a certain entity. Much of the topics are political, but usually have a twist on the markets. However, the site posts economic analysis which is mostly unbiased (authors may over promote their own methods) but it’s definitely not paid for!
Another site with high quality market analysis is www.seekingalpha.com – an example is a partner of ours authored a groundbreaking story how a publicly traded stock, Revlon (REV) is manipulated. You can read the article here. A basic summary of the situation:
- Revlon is controlled by a single insider for 30 years billionaire Ronald Perelman.
- Perelman has developed in his career a method of hostile takeovers that dates far before Revlon.
- Due to a rule, if he is able to get 90% of Revlon he'll get voting rights of all 100%.
- The float (available shares for purchase) is low 2.29 M, almost all of which are held short.
- Recently, Barna Capital purchased a 2% stake, putting the institutional control above 10.1%, making a Perelman takeover impossible.
You just wouldn’t find this on traditional media, because it’s controlled by the same cabal.
So the point is that if you’re going to invest in the mainstream you might as well buy indexes because hedge funds, mutual funds, and other market tied investments generally underperform the index. Plus they have added fees.
But if you are going to try to do your own DIY investment portfolio, you’re going to need to get educated. The wealthy enjoy 30%+ returns on their investments because of access. They know before the event. What’s interesting though, this is no longer private info. For example one can follow In-Q-Tel the CIA’s venture fund, to peer into the future:
Why you should care: IQT knows how to pick winners and isn’t afraid to go it alone.
- It was, for example, the only outside firm that would invest in Palantir’s first round. That company, founded by Peter Thiel, uses advanced software and big data analysis to solve cyber espionage and other 21st century problems. The rest of the VC community passed, with some outright telling Thiel the idea would never work.
- IQT plunked in $2 million back in 2004 and got Palantir the connections to work with the US government on several serious cyber security problems. Which they solved.
- Fast forward to now, and Palantir’s value may be as high as $20 billion and there is talk of an IPO. Even if IQT’s original $2 million investment only gave them 1% of the company, they have a 100-bagger on this trade.
So there’s one way to co-invest, just mirror trade In-Q-Tel. Of course it’s not so easy, as they mostly do very early seed/startup investing. But it’s a great data point. They secretly were early investors in Google and Facebook, both explosive growth stories with absolutely no business plan (Google and Facebook are both ‘wants’ not ‘needs’).
So there really is something like ‘open secrets’ where one can read and see what intelligence agencies are doing. Silicon Valley is listening, are you?
If you are considering alternative investing, we are just suggesting to change your thinking. Evaluating TV advertisements is not part of the DIY ecosystem. You’ve got to tune out of TV and tune in to the internet. Reading required. Otherwise, you’ll just be throwing crap on a wall and seeing what sticks. Wall St. uses this method but they have the billions to risk it. Do you?
What we are saying is that choosing an alternative investment is an educational experience and should not be taken lightly. The world is a big place and there are very clever sharks posing as investment advisors that only want to rob you of your hard earned cash. In the most extreme cases, it would be a Madoff type situation. In the middle ground, managers want to ‘churn’ your account for commissions – basically siphoning your equity from their brokerage account into their pocket. Such managers may be regulated and may know all the right things to say to you. So how to avoid fraud completely? The only way is learning. Unfortunately there is no ‘quick fix’ and anyone offering a ‘click here now’ to solve all your problems or completely delete risk is lying.
What we are saying is that the smartest path towards investment success is knowledge, as they say information is power. And that can only come from reading. We’re going to show you a few books to get started, but there are many well written highly acclaimed business and investing books you can find in your local bookstore.
Bottom line, if you really want to try alternative investments, THINK DIFFERENT.
Books to read
Splitting Pennies – This isn’t just a book about Forex, it’s a book about the financial ecosystem.
Incerto: Fooled by Randomness, The Black Swan, The Bed of Procrustes, Antifragile Taleb is perhaps the most intelligent and informed mathematical author on investing, who poses interesting questions such as where NOT to invest, which may be more valuable than where TO invest.
Business & Investing Books
The Essays of Warren Buffett: Lessons for Corporate America – This book provides thinking into who is the greatest investor ever. Warren Buffett had tons of losses but overall he started from nothing and his wins greatly outperformed his losses.
Global Intel Hub (Zero Hedge Exclusive) 10/7/2018 -- Now that MidTerms are coming up, the heat is being turned up on Trump in the deep state's 'death by a thousand cuts' approach to assassinate his character and any of his allies as well. But in this flagrant and public information war against Trump, the deep-state has shown it's hand, as it's a public game, so it's easy to explain here what's going on. As we have explained in our book Splitting Bits, the world is not as it seems.
The most infamous episodes include the ousting of Iranian Prime Minister Mohammed Mossadegh in 1953 — whose government was replaced by an authoritarian monarchy favorable to Washington — the removal and assassination of Congolese leader Patrice Lumumba in 1961, and the violent toppling of socialist Chilean President Salvador Allende, whose government was swept aside in 1973 by a military coup led by the ruthless Gen. Augusto Pinochet. For decades, these actions were considered imperatives of the Cold War, part of a global struggle against the Soviet Union and its supposed leftist proxies. Its key participants included scheming diplomats like John Foster Dulles and Henry Kissinger, who advocated aggressive, covert policies to stanch the supposedly expanding threat of communism. Sometimes that agenda also explicitly converged with the interests of U.S. business: In 1954, Washington unseated Guatemala's left-wing president, Jacobo Arbenz, who had had the temerity to challenge the vast control of the United Fruit Co., a U.S. corporation, with agrarian laws that would be fairer to Guatemalan farmers. The CIA went on to install and back a series of right-wing dictatorships that brutalized the impoverished nation for almost half a century. A young Che Guevara, who happened to be traveling through Guatemala in 1954, was deeply affected by Arbenz's overthrow. He later wrote to his mother that the events prompted him to leave “the path of reason” and would ground his conviction in the need for radical revolution over gradual political reform.
This ranges from funding opposition groups, to actually organizing and staging counter-revolutions. The above is what we know about, there are hundreds of examples we don't know about. Billions of dollars have been spent on this. Not only operations in 'theater' but research and development on brain science, how to control people, how to influence elections, etc. etc. Ad Nauseum.
Self-anointed new Kings of the World - The Americans - decided to play Global Policeman. This dangerous game was only possible because after World War 2 the United States wasn't the only Super power- it was the only power. All other countries were bombed into rubble and ash. The origins of the architecture of modern political power go back to this time period, so we need to mention it as a reference. The world has changed in 70 years but this power structure has not.
So the DC boys, started in motion by the Dulles brothers who were opportunist capitalist lawyers, developed a bag of tricks in order to play the game of empire. In a few sentences, here's how it works. "Economists" will go to impoverished countries and explain to local tribesmen how high interest loans will help them expand their economy. Of course, they can't pay back the loans, at which point the greedy industrialists move in and offer to 'swap' their factories, or their oil, or other natural resources to nullify the debt they can't pay. This represents modern rober-baronism meaning the Capitalists are playing the bar game big bank eats little bank; seizing the assets of those who don't understand economics. But that's not fair to say, because if you refuse these loans, that's when they send the 'jackals' to kill you, and if that doesn't work, bombs away! In comes the US army. This has been done in more than 100 countries, most recently Ukraine, Libya, and soon to be Malta.
All of this has been going on - and evolving - OUTSIDE the United States, for the past 70 years. Trump changed all that.
Business people around America, the working class, many of them have a single political opinion- Government should be run like a business. Here's the logic. In private business, if you are incompetent, you will be fired or bankrupt - market forces will drive you out of business. If you are in Government, if you really mess up - you get promoted. That's actually the policy! Take any office, US Postal Service, Amtrak, Healthcare.gov you have thousands of examples of where private business is efficient and government is not. And the reason is logical. Business is accountable to owners (shareholders) where Government is not accountable to anyone.
Trump is a jerk, an a-hole, but successful. Perhaps if he was nice, amenable, kind, and like-able - he wouldn't be so successful in a filthy environment. Look, let's face it - America has become filthy. On the surface, we talk about one thing, while funding it at the same time (like fighting 'terrorism' or the 'war on drugs' (footnote, at the same time Reagan was creating the 'war on drugs' the CIA was responsible for bringing it into the country. Sound strange? READ THIS BOOK.).
So Trump is the product of his capitalist environment. He's Baron Vladimir Harkonnen. But - who cares? He's honest, and he's a business guy with street smarts. It doesn't take a genius to fix the US economy, i.e. cut taxes = money spent = new jobs. The difference between Trump and all the other politicians is really simple. He's not part of the grand conspiracy to enslave the human race. There really is a conspiracy, but it should be called more like a 'plan' as they have elaborated publicly about this plan for a "new world order" -
The point is - he's not one of them. He's not part of the 'secret society' - he doesn't know the handshake. He doesn't even drink! He never was in a coffin and..
The Trump election scared the ruling Elite and for the first time in this 70 year period where a group of 6,000 people controls the planet, they decided to pull out all the stops. They will do anything and everything to destroy Trump NOT because they really care about him personally, but because of what he represents. "Drain the Swamp" means about 40% of the political class will be in prison for life. It's easier said than done. But going back to the political class in USA, we need to single out a single force unfortunately, George Soros; to act as a public example of how this shadow government and shadow banking system operate.
For the first time ever - they used these tools DOMESTICALLY. The CIA really doesn't operate on US soil - until Trump. The deep-state activated all of their sleeper cells, tools such as the brainwashed Dr. Ford, they had perhaps been planning to use on other targets (Syria, Putin). Speaking of Putin, Trump and Putin have quite a bit in common politically, which is the topic of another good article.
The CIA has fixed hundreds of elections in the world - BUT NEVER CONSIDERED operating in the United States - until Trump.
Let it be known that the CIA works hand in hand with various international business interests - one of which is George Soros, but he is just one man there are perhaps hundreds, or thousands of other examples. However, Soros has amassed a huge fortune from this activity, and note that his public net worth is probably a fraction of his global holdings.
So let's understand what Soros does and how he is different from Wall St. 'traders' - Soros is a very savvy, perhaps one of his kind, international businessman and investment banker. He profits by manipulating politics. He's not a 'trader' - supposedly he profited by 'breaking the bank of England' but that was only possible with inside information from the very guy who was making rate decisions. His Billion Dollar bet by the way, even during that time, would have been a drop in the bucket in FX. One would need TRILLIONS of dollars, NOT BILLIONS to really manipulate the FX markets because they are so big and central banks have access to unlimited capital. So this nonsense about his trading acumen is absurd. His friend at the Bank of England was providing information to him he knew what they were going to do before they did it. How much did he pay his friend for that information? The world will never know. But here's the point - he pays for such information and gets it by manipulating politicians.
He has been sued, threatened, and kicked out of many countries. Hungary even passed a 'stop soros' law that forbid anyone to support and help undocumented migrants. Why would anyone support 3rd world migrants? It's simple. Divide and Conquer. This is their strategy, and it works. In fact, it is rumored but unsurprisingly we've never seen documents to prove it - that Soros got his start by ratting out his Jewish cousins to Hitler. This practice did go on, and so it wouldn't be such a stretch. What may have happened, he received a Million Dollars and safe passage to the US in exchange for telling the Nazis where a few hundreds of his Jewish friends were hiding.
That being the case or not, he has been involved in hundreds of radical political movements mostly in the third world, but also closer to home, he funds activist groups that protest against the catholic church, such as:
Is this adding up? Soros finances radical groups to further his opinions. But he's not really an idealist - there's money there. When you control politics you have access to lots of things, you have access to information, big business contracts, and other benefits.
During the 1980s and 1990s, Soros used his extraordinary wealth to bankroll and fund revolutions in dozens of European nations, including Czechoslovakia, Croatia, and Yugoslavia. He achieved this by funneling money to political opposition parties, publishing houses, and independent media in these nations. If you wonder why Soros meddled in these nations’ affairs, part of the answer may lie in the fact that during and after the chaos, he invested heavily in assets in each of the respective countries. He then used Columbia University economist Jeffrey Sachs to advise the fledgling governments to privatize all public assets immediately, thus allowing Soros to sell the assets he had acquired during the turmoil into newly formed open markets. Having succeeded in advancing his agenda in Europe through regime change—and profiting in the process—he soon turned his attention to the big stage, the United States.
This is a game of Empire that few really understand. The victims of his policies - such as the economies that he rapes and plunders - are obvious enemies for him but they are largely poor and disenfranchised groups as he has the tendency to pick on the little guy - until Trump.
There are 'elevator screamers' paid for by George Soros, says Trump:
The very rude elevator screamers are paid professionals only looking to make Senators look bad. Don’t fall for it! Also, look at all of the professionally made identical signs. Paid for by Soros and others. These are not signs made in the basement from love! #Troublemakers
Obviously we will not have pay stubs from these paid actors online to inspect, but look at this:
In 2015, the group trained 52 activists from Argentina, Brazil, Egypt, El Salvador, Fiji, Georgia, Ghana, Guatemala, India, Indonesia, Ireland, Jamaica, Kenya, Lebanon, Mexico, Nepal, Nigeria, Pakistan, Peru, the Philippines, Poland, Solomon Islands, Sri Lanka, Uganda, the United Kingdom, Uruguay, and Zimbabwe for 59th UN Commission on the Status of Women, spending $196,454. (s.8)
In 2016, the organization spent $151,420 for the participation of 32 activists from Argentina, Brazil, Croatia, Ecuador, Egypt, Fiji, Ghana, Kazakhstan, Kenya, Lebanon, Liberia, Mexico, Nepal, Nigeria, Palestine, Philippines, Poland, Rwanda, Uganda, Zambia, and Zimbabwe, who came for the 60th UN Commission on the Status of Women. (s.24)
That means they are not only PAYING these actors they are TRAINING them. So let's think.
1) Soros has a 70 year history of doing this - paying, training, and operating activists ranging in skills including but not limited to overthrowing local governments in various countries in which he wants the assets.
2) Soros has the motivation, politically, and financially. It's his 'plan' which he owns. He practically invented this game of globalism. He backed Obama, he supports the importation of illegals, migrants, vagrants and other weirdos to come suck off social services that his socialist government can grow, and to provide a 'solution' like the UN to come police the problem we have here in USA or who knows..
3) Soros has a lot of friends in this fight against Trump. There's only one billionaire who openly supported Trump, Peter Thiel. All others, not 90% but ALL OTHERS, supported Clinton. Because 'faction 1' is deeply invested in the corrupt political class.
4) Paying for people to 'protest' isn't illegal in USA. That's right! Understand the system here. It's legal. There's free speech, and capitalism is a market based system.
5) There are reports from people who have disclosed their jobs, as paid protestors, hundreds of times.. see this one:
I won't bore you with the full text of my Paid Liberal Protester Employment Contract, but here are some key excerpts:
• "The initial job title of the Employee will be the following: Paid Liberal Protester. The initial job duties the Employee will be expected to perform will be the following: Be angry. Be militant. Engage in criminal acts to get what Employer wants. Cause Republican lawmakers to rush into 'safe spaces' and fear people they used to dismissively refer to as 'sensitive snowflakes.' "
• "Compensation paid to the Employee for the services rendered by the Employee as required by this Agreement will include a wage at a rate of $1,500 per week."
• "The Employee's primary place of work will be at the following location: Any space where Republican lawmakers are attempting to hold a meeting with 'Constituents.' Employee shall be a 'Constituent' of said lawmaker, but won't count because 'Employee' is a Paid Liberal Protester, as detailed in 'Job Title and Description' and as announced by frightened lawmaker."
• "The Employee will be entitled to the following benefits: Retirement Savings Plan in which all Employer wealth is evenly redistributed to 'the workers,' aka 'Employees'; free marijuana; two round-trip flights per-year aboard private jets owned by Employer (George Soros); annual subscription to 'Rhyming Liberal Protest Chants Digest'; comprehensive health insurance plan (no dental); and free tuition to qualifying Liberal Indoctrination Centers (aka 'universities')."
• "Employer shall not discriminate against any Employee as long as said Employee is one of the following: an anarchist, a Marxist, a communist or a member in good standing of the left-wing Socialist brigade."
They had this capability - to swing elections, to destroy a person or country economically, politically - but NEVER before used it in USA. Trump is a real 'TRUMP' card living up to his name. Hopefully, it will be the beginning of the end for the political class, which in America have become a bunch of buzzards feeding off the dying carcasses they create with their policies. One other tangible example from the recent past - Soros has funded $33 Million of the $100 Million "Black Lives Matter" (you know how much George cares about Black people)
That funding comes in addition to more than $33 million in grants to the Black Lives Matter movement from top Democratic Party donor George Soros through his Open Society Foundations, as well as grant-making from the Center for American Progress.
For those who have been following Soros for his career don't need to see the evidence which will likely come out later, the protest is a show, they are staging a coup against a legitimately elected President. What 'they' are doing, including the FBI, CIA, and large part of the shadow government, is illegal. It never was like this in America. It's like this in India, in banana republics, now it's come home.
Now USA is getting a taste of its own medicine. Now commoners can understand the rage of why people "hate" America, when we host criminals like Soros who can with one pen finance a mafia style coup whereby a dictator can be 'installed' in order to rape and pillage the villagers of their few resources. These are the real Neo-Colonialists. "Banks, not tanks" is the new policy for global domination.
You have to wonder though, if these people are really sane. After you have a billion dollars, is it enough? When is it enough? Obviously its never enough. Now if you are a trader or doing something benign like selling software, then you can allow your crazy nature to get the best of you. But like Madoff, when there are victims who suffer because of this game, as is the case here - then you will create a large amount of enemies, known in the agency as 'collateral damage' - there is going to be a lot of 'blowback.'
Another question that at least the Zionists should be pondering, are they laying the seeds for a repeat of what happened in Germany? How will the American public react when they understand how they are being manipulated? Was it similar forces that caused the American Revolution - a reaction to the boot of control of the British Crown, run by King George?
Remember another thing about CIA playing politics in our own backyard - they are funded by TAXES! It's one thing to stage a coup in Chile, it's quite another in DC.
In the meantime, dear readers - follow zerohedge.com - without bias, I can say there is no comparison to Zero Hedge on the internet. There are investigative journalists, but Zero Hedge functions more like a nonstop news agency with a perspective on markets. By the way, contributors are NOT compensated by Zero Hedge this journalism is supported only by Ads so please visit the following websites below:
Article originally posted at: https://www.zerohedge.com/news/2018-10-07/how-trump-win-changed-us-politics-forever