I have uploaded a podcast for September 18, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
-Perhaps a hidden objective of the implementation of MERS and the defacto nationalization of the MBS industry is to create a national real estate title registration system.
-Government confiscation of real estate is difficult under the current local government title registration system. A national registry would solve many of these issues and make taking your house as easy as taking a bank account.
-10-year US Treasury moves above 3%. the US Fed mouthpieces warned us and they warned the insiders to make hay while the sun shines.
-In a post global-conflict world we would have to pledge allegiance to the NWO and renounce our religious beliefs and long-held admiration of the constitution.
-It is nice to possess the confirmation bias that says the Synagogue of Satan globalists are losing control.. This would imply that we have more control over our lives. The alt-financial media and alt-right personalities try to tell us this very idea, because they get a bigger following. It is depressing to contemplate that this ostensible chaos is by intent and means we have less control over our lives. Unfortunately, I have to conclude that this chaos is just for show. It is convincing, isn’t it?
-The United States will be the Nazi Germany of WWIII
-The media has been conditioning us for decades to accept the inevitability of a global nuclear war. They have conditioned us to think of the constitution and nationalism on par with child molesting, white supremacy, racism, and all sorts of evil.
-The China/American trade tensions go back to its genesis; Kissinger’s visits to China in 1971. This coincided with Nixon’s shutting of the gold window. China was chosen to be the manufacturing base and the US’s military was chosen to be the NWO sledge hammer. Thus, the US dollar has to be the reserve currency. We cannot have one without the other.
-The current tariff war goes back to the 1970s, when the bilateral trade deficits that started under the Carter regime began to balloon. The globalists knew this outcome was inevitable, which was their intention. It goes back almost 50 years.
–A visibly drunk Alex Jones was comparing himself and President Trump to Godly figures, while denigrating the left and the Bushes.
I have uploaded a podcast for September 16, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
-Why the suppression of the yield curve is the most important objective for now.
-Further comments on the mortgage market and the US Treasury yield curve
-A quick analysis on the current monetary system and the objective of the elites.
-A top-down look at the lifespan of our fiat monetary system and what the next several years hold
-What we need to stay focused on for our personal financial lives
-Gold and 10-year UST COT analysis
-I think silver is ready to take another leg down this week. Gold COT is bullish, but silver performing poorly.
-The US Fed is way behind its tightening campaign. The Fed has been slow to unwind its balance sheet. The dovishness continues to support asset prices.
I have uploaded a podcast for September 15, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
-The concept of the mortgage-backed security (MBS) goes back to the late 1970s with its invention. Lewis Ranieri is often referred to as the “father of the mortgage-backed security.” He rose to become Vice Chairman at Salomon Brothers in the late 80s.
-The MBS got a big boost when it received favorable tax treatment under the 1986 TRA, with the REMIC getting tax-exemption status. By the end of 1986 the MBS market was worth $150 billion.
-The Bloomberg terminals became important MBS price discovery sources around this time.
-Mortgage underwriting was very subjective at the time, with many banks and officers having wide discretion. Moreover, banks generally kept the loans on their books. This created problems with pricing models. In addition, in the late 80s-mid 90s, as interest rates fell MBS prepayments became a problem and MBS prices fell hard. This is counterintuitive as bond prices would normally rise.
-The globalists took note as MBSs perform best in a stable-interest rate environment – the current market dynamic we have experienced over the past decade. The first 30 years of the MBS market proved to be a valuable learning experience for the globalists.
–Mortgage Electronic Registration Systems, Inc. (MERS) was not established to undermine the concept of ownership of title as the alt-financial media claims. MERS was founded by Fannie Mae, Freddie Mac, Ginnie Mae, and the Mortgage Bankers Association, to help standardize the MBS market and to create a pool of liquidity in the trillions.
-Just like with the US Fed, nobody can seem to figure out who owns MERSCORP, operator of MERS. The judges even make errors when identifying parties in a lawsuit. -Imagine how high mortgage rates would be if we did not have the federally-backed MBS sector and the MERS registry. Either rates would be low and there would be no credit available or rates would be high and asset prices would have collapsed. We cannot have both, unless there is marxist government control.
-By expanding this pool of mortgage funding liquidity the globalists were able to keep mortgage rates lower than they otherwise would be able to. The real estate sector provides the largest asset class of collateral. In order for the globalists to control long-term yields it was necessary for them to control the mortgage market.
-The manufactured crisis of 2008 provided the excuse to nationalize the mortgage market. The GSEs, the mortgage banking industry, the underwriting and appraisal process were all nationalized and federalized. Thus, the process became objective and standardized.
-As debt levels became more onerous, it became necessary for the major markets (e.g. Treasury and residential mortgage) to be actively managed by the government and the US Fed. With respect to the mortgages, the standardized MBS market and its accompanying MERS recordation system provided the needed tools to tame this multi-trillion dollar sector.
-Masonic federal judges were picked to hear the cases against MERS. Notice that virtually all the court proceeding either were in favor of MERS or were undecided.
-This system is now deeply entrenched and is marxist in nature. We go into debt, but the entire market runs by government dictate.
-Welcome to the New World Order
I have uploaded a podcast for September 13, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
–Watch VP Pence (Mr. Christian conservative) blatantly give the masonic handshake during a Trump news conference.
-Discussion of 9/12 Joel Skousen interview with Jeff Rense. (right mouse link to download interview)
-All parties in the political spectrum, even the heads of the patriot movement, are part of the Synagogue of Satan. They wouldn’t be there unless they gave their secret oath.
-I never had any illusions about Trump looking out for us. There are many people who should have known better and are surprised that Trump hasn’t lived up to any of his promises.
-The secret societies control Australia; Question;why would Australia’s military conduct joint military war games with China? Answer; to give China much needed intelligence and military strategy. The globalists want China to strike the west and want Australia to fold in the upcoming global conflict.
-Separate yourself from a world that is populated with virtue signalers.
-I do not recommend owning residential REITs, but understand why. Dividend yields are approaching that of US Treasuries. Single-family REITs yield about 1.6%. We have the management of the yield curve by the US Treasury and GSEs to thank.
-The managers of the REITs are the only ones making a lot of money from them.
-I still believe US housing provides much better yields and cap rates. One rental property can provide the owner a wealth of tax benefits and income offsets, higher appreciation potential, and better payouts than any REIT.
-Even REITs like SKT have poor payouts when their stressed portfolio is considered. Its 5.9% yield cannot overcome the continual loss of NAV. I prefer PSA as the debt slaves in the US have a lot of useless junk to store.
-The petrodollar myth; As we predicted, the US has just become the world’s largest oil producer. If Texas were a nation it would be the 3rd largest producer of oil.
-The oil output of the US will continue to expand and will continue to grow faster than Russia.
-The globalists are expanding the oil extraction technology and output potential of the US as war approaches.
I have uploaded a podcast for September 11, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
-The 1st & 2nd Amendments were constitutional issues, but now they have been turned into a left/right debate
-Eventually, the 4th & 5th Amendments will be politicized as well. This is done by design.
-Political correctness has become a false left/right issue
-President Trump and his group of tag-alongs (e.g. Alex Jones, PJW, Jerome Corsi, Milo Yiannopoulos, Mike Cernovich) have politicized the constitution.
-The alt-financial media was created to impoverish those who pose a threat to the NWO.
-What we need to do to survive the next decade.
-Other than physical gold, real estate will provide the best protection against seizure in the end times. This is why I invest in it. It still provides owners with common law remedy in many respects. This will not change much as RE provides the largest pool of collateral to the NWO.
-How we need to view the world and what we need to accomplish to succeed financially and morally.
-These are exciting times and are not meant to make us fearful. We need to be self-sovereign and self-governing.
-Gold trade the most lopsided in history. Every week is more unprecedented. Something will break (I still say to the upside)
-The Feds are managing the treasury yield curve and are using the GSEs to manage mortgage rates, and by extension, all interest rates.
-IMF Chief economist says the US Fed can buy everything not nailed down during the next recession.
-This can continue forever, or until the Synagogue of Satan, working through their private central banks own it all or decide otherwise.
Note: I am not saying government intervention in the mortgage market is wise or foolish, I am just discussing the consequences. If we are to differentiate ourselves we must accept reality and look for opportunity
The beneficiaries of a social spending program are usually not its intended recipients
Agencies like Fannie Mae and Freddie Mac keep mortgage rates much lower than they should be. How do their actions affect housing supply and prices?
Here are my empirical observations; when government intervenes in any market or economic sector for the common good, over time the “benefits” are always arbitraged in to the supply/demand equation. This generally results in higher demand, restricted supply, and higher prices for everyone involved. Moreover, those actively promoting these social programs (e.g. lobbyists, corporations) tend to be their primary beneficiaries. Here are some examples;
Higher education – If the government promotes easy access to college student loans the result will be higher tuition for all involved. Lending banks, colleges, and textbook publishers benefit the most.
Healthcare – If the government establishes health care subsidies and programs like Obamacare, Medicare, and Medicaid the result will be higher medical care costs for everyone as the demand curve shifts out and further to the right. In addition, the supply curve moves up and to the left as the added government regulation places a burden on the health care provider. If the consumer is not directly responsible for his or her health care costs these programs encourage moral hazard behavior. The largest healthcare providers benefit the most as the government red tape crowds out all but the largest players. An oligopoly is the end product.
Real estate – If a tax code modification to residential real estate is implemented, which allows for higher capital gains exclusions, the end product will be restricted supply and higher prices ceteris paribus – all other things being equal. Many parties benefit (e.g. NAR, mortgage lenders, home improvement industry, investors and landlords, local tax jurisdictions)
Housing GSEs like Fannie Mae as well as the FHA lower the true cost of capital (mortgage rates) creating excess demand
The concept of owning a home in the United States has been a primary objective of the federal government since the Great Depression, and there have been a number of agencies established to further this agenda. The most important of these agencies are the government-sponsored enterprises GSEs, such as Fannie Mae and Freddie Mac, as well as the Federal Housing Administration.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and was founded in 1938 during the Great Depression as part of the New Deal. The corporation’s purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations (or “thrifts”). Its brother organization is the Federal Home Loan Mortgage Corporation (FHLMC), better known as Freddie Mac.
As a result of the bailout, Fannie and Freddie continued to back loans and now, along with FHA, they back the vast majority of new home loans. Investors continued to buy the mortgage backed securities from Fannie and Freddie, because they were backed by the government, and the housing market began to recover.
“Forget shareholders, forget stock speculators, for the rest of the marketplace, the one thing that is keeping [interest] rates lower than they’d otherwise be is this conservatorship,” said Dave Stevens, who recently retired as president and CEO of the Mortgage Bankers Association.
“I think global investors, if they’re going to invest in a triple A MBS [mortgage-backed security], they want to know there is a government backstop behind it. Without that and without some true reasonable pathway forward, I think we see rates hiccup in any other action that takes place,” he added
Another problem with government intervention in the mortgage underwriting sector is that there is little incentive for mortgage underwriters to accurately gauge a borrower’s risk profile. As long as a mortgage can conform to Fannie Mae or FHA guidelines the borrower will get his or her loan to purchase a home.
In addition, this explicit government-backing creates a guarantee against default; cultivating an incentive for moral hazard behavior by the lender and underwriter. Why worry about default if the government will backstop the loans? Let’s just maximize our loan underwriting and we can actively advertise.
Without the assumption of default risk, lenders and mortgage back securities investors will accept a lower rate of return (i.e. lend to borrowers at lower mortgage rates than what the free market would normally bear). This creates excess demand as borrowers can now borrow at lower rates than they could get without government intervention.
With government intervention in the mortgage markets, the cost of capital is subsidized and house prices rise
Lower mortgage rates creates a subsidy which drives excess demand. House prices will always be higher.
Socialism comes in many forms. The federal government’s effective control of the mortgage market is perhaps the largest single social program available. Although socialism is ostensibly designed to help those most in need, the biggest beneficiaries are the wealthiest. Moreover, these wealthy usually own the corporations that dispense the “benefits.”
In order to bolster the US housing market and the overall economy, Fannie Mae and Freddie Mac became the primary buyers in the secondary market. This kept investors interested, as loans backed by Fannie and Freddie are considered to be safe investments due to their government support. The federal government now invests or insures over 90 percent of mortgages in the US via Fannie Mae, Freddie Mac and Ginnie Mae.
Wow! The Feds effectively control the entire mortgage market. They are backing up to 90% of mortgage underwriting. As long as house prices continue to rise, then the moral hazard mindset of not being held accountable for the long-term ramifications of short-term underwriting decisions is not a major issue. But if house prices stumble we could see another bust cycle as much of the excess demand in the housing market created by artificially low mortgage rates could end up becoming excess supply.
Imagine a world without the GSEs and government intervention
Based on my understanding of economics and public finance, if Fannie Mae, Freddie Mac, and the FHA were not intervening in the housing marketplace;
interest rates would be higher (not just in the mortgage market, but in the entire credit market). The rates would reflect the true market place risk.
housing supply would be greater,
demand would be less, and
prices would be much lower.
Unfortunately, as long as the federal government controls the debt markets and especially, the mortgage market, we will never know what true equilibrium in the housing market looks like. Keep in mind that those who are pumping up the current system and are its biggest promoters are the people who have the most to gain from the status quo.
I have uploaded a markets update podcast for September 6, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
-US economic data continue to point to an OK domestic economy. Inflation is running much higher than what the Fed is saying. Wage growth is continuing to disappoint (the workers). Today’s data reaffirms this.
-The Fed will have to eventually raise rates higher and faster. We were warned early his year and the process could take 2-3 years.
-The dollar is well-supported as the world attempts to deleverage out of dollars (it won’t be able)
-Silver is telling us something. Ag is an industrial metal and its weakness is saying the global economy is not as robust as the MSM shills are saying
-Gold holding up as the COT is still stretched
-The US stock market is a red herring as the developing nations are the first ones to get hit in any Fed tightening campaign. Don’t be involved in the collateral damage.
-Turkey begins constructing site for Russian missile system — despite US warnings
-We have good opportunities coming up for those with cash, low debt, and unencumbered assets. Credit will continue to tighten. The Fed does not want to be blamed, so a slow approach can help to alleviate its ostensible culpability.
-The charts and market action don’t lie; further crypto weakness is coming. Etherium’s weakness is especially ominous.
-Trump is part of the set up. The ongoing global economic weakness is necessary to bring about WWIII. That won’t be for at least several more years
-Cash is king – STILL. There will come a time when we will wish we had it.
I have uploaded a Weekend Update podcast for September 2, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.
-Large Specs cover 10-year treasury shorts in record fashion (170,000 contracts). Yields are still suppressed here below 3%. Despite consumer and corporate optimism long yields are still low.
-Optimism is so high (highest since 1999), because cost of capital is so low. Money is cheap.
-Residential real estate’s cost of capital, based on demand, is still low. Mortgage rates should be 6-7%
-Gold commentary
-More articles and commentary on wage growth drag
-Welcome to the NWO; open borders include free movement of labor as well as free movement of capital inputs.
-The whole world is one big labor pool
-The tariffs hurt the very people who support them and support Trump. Tariffs don’t work in the New World Order
-Trade deficits are widening, despite higher tariffs.
Notice how mainstream economists use logic fallacies such as red herrings and the Chewbacca Defense to wow and misdirect their audiences from the sober reality about what is causing wages to lag the economy. While it may be obvious to us that these economists are promoted by the globalists and their think tanks, most do not comprehend this and are taken by the research of these experts.
Open borders enlarges the labor pool; At the same time employers offer lower pay
I came across this article from Business Insider titled, There’s one simple explanation for the wage stagnation ‘puzzle’ confounding top Fed officials, which attempts to explain why there is anemic wage growth in the United States as well as the other rich nations in Europe. Notice how these economists use a ton of obscure and esoteric terms and research to avoid the real reason wage growth continues to lag expectations for decades.
Is the US Fed really puzzled?
Federal Reserve Chairman Jerome Powell has often expressed surprise at the lack of wage growth for US workers despite a historically low jobless rate below 4%.
“I certainly would have expected wages to react more to the very significant reduction in unemployment that we’ve had,” Powell told reporters during his last press conference, held after the Federal Open Market Committee raised interest rates again in June. “So it’s a bit of a puzzle.”
I believe that the researchers in the article are correct with their theory; there is much more wage slack in the economy than the official statistics infer. While the unemployment rate may be near historically low levels the lack of wage growth demonstrates that there seems to be no inflationary pressures caused by the low unemployment rate.
Can the unemployment rate really drop to 2.5% before inflation picks up?
The Fed chairman should take a look at a new paper from David Bell of Stirling University in Scotland and David Blanchflower, former Bank of England member and Dartmouth College professor. There, Powell will find a simple and convincing answer to his puzzle: the job market is really not as hot as the headline unemployment figure makes it look, leaving workers without the requisite bargaining power to ask for raises.
Unlike Fed officials, who believe the US economy is at or beyond “full employment,” Blanchflower estimates the jobless rate could drop to as low as 2.5% before any substantive wage gains materialize.
How can this be? How can the research provided by the US Fed be so far off the mark? How come the Fed Chair, Jerome Powell, is puzzled with the lack of wage pressures?
The answer; I really doubt Mr. Powell is puzzled. In fact, I am certain all the senior Fed members know the truth. Moreover, I submit most well-known economists know the facts driving this phenomenon, but cannot objectively discuss the answers to the topic as they are verboten. Economists working for the new world order and supporting its agenda cannot mention the real cause.
The elephant in the room that no mainstream outlet can ever discuss – Open borders
We have talked at length over the past couple years why working for a wage is a losing proposition. The wage base continues to deteriorate every year, because of the open borders policy. The current immigrants entering the US and rich European nations are not like the ones who migrated to the the US over the prior 100 years. As a result they have been instrumental in driving down the wage base and suppressing wage growth. This wage growth lag when compared to the true rate of inflation and asset price growth (e.g. houses, cars, businesses, higher education) is structural and permanent.
In the new world order labor supply is unlimited – The beneficiaries of cheap labor promote open borders
…but with open borders, the new entrants into the labor pool come mostly from poor and developing nations and thus, demand less than those who are already in the labor pool.
Chris Pirnak
I could show charts that illustrate how increases in the labor supply will drive down wages and motivate employers to offer lower pay, but with open borders, the new entrants into the labor pool come mostly from developing nations and thus, demand less than those who are already in the labor pool. Many economic sectors have been permanently altered by the influx of cheap labor. Before the free trade agreements were promulgated, jobs in the manufacturing, basic services, and housing construction and remodeling sectors provided enough income to support the financial needs of many families. This is no longer the case.
The worst part is that employers enjoy this low cost of labor and offer lower wages and benefits as a result. We often hear how employers cannot find talented people to fill open positions. The problem is that they refuse to offer higher pay to attract the people they desire.
Don’t blame the weakness of the unions
Notice how Blanchflower discussed how union weakness is partly to blame. He blames this weakness on government policy, but I blame it on open borders. Why? Immigrants have been driving down the wage base domestically for decades. This has effectively rendered the concept of the labor union obsolete. The new immigrants took away any leverage the worker used to have with his employer. If the union employee demands too much the employer can hire a non-union worker for a fraction of the cost.
Two final thoughts
-The findings offer another excuse for the Fed to keep a dovish policy
The result of the research paper has definite merit and I think the US Fed is analyzing its contents. As a result, these findings may offer more excuses to keep interest rates lower than planned. The US Fed is continuing its dovish policy and I believe it will for the intermediate future. If this is the case then income-generating assets like stocks, businesses, and real estate will continue to offer superior returns. We need to understand that it’s the income-generating aspect that is key.
– working for someone else is a losing proposition
The monetary and economic systems in the new world order are rigged against the average worker. It doesn’t matter whether we are doctors or day laborers. As long as we work for other people and rely primarily on a paycheck for our financial survival we will never be able to keep up.
In the new world order the nation-state is an anachronism. Thus, in theory, labor supply will have no restrictions on movement. We see these trends accelerate over the decades as the open-borders policies enacted worldwide have worked to drive the wage base through the floor in the developed nations. When women entered the labor force they competed against those already in the pool (primarily men) and kept a lid on wage growth. It then became necessary for most households to have two wage earners to support the expenses. Now, with open borders, two wage earners can no longer provide the same standard of living. We see how the deck is stacked against us. Moreover, the globalist-controlled educational system indoctrinates us into the wage-slave system; it tells us to seek gainful employment as our primary goal. This could not be further form the truth.
Recall that deficit spending causes asset prices to rise over the long haul. Thus, in order for us to prosper and get ahead we need to acquire income generating assets. Specifically, we should look for assets that generate income with long-term income and asset price growth potential, while providing superior income tax benefits as well as leveragability – the ability to use as collateral. This is what the financially successful people strive for.
Working for someone is not a bad concept if we can build a retirement portfolio or if we acquire assets over the years. We can then use the tax code to our benefit as well. Our ultimate goal, however, is to acquire enough assets and businesses to provide us enough income to live. Indeed, there is nothing better than not having a boss, but we can see that non w-2 or 1099 income is usually treated much more kindly for income tax purposes. In addition, our balance sheets will continue to grow over the years as the government deficits climb.
If anyone is still relying on Alex Jones and the other controlled shills in the alt-media as being the tip of spear for the truth movement I feel bad for him or her.
The latest news about Alex Jones’s personal issues helps to explain the inherent inconsistencies between his publicly promoted persona and the facts about his private life that have trickled out over the past few years. If he prefers to look at this stuff, he should just say so and get on with it. But it is clear that his behavior is typical of someone who is suffering from a cognitive dissonance disorder. This makes him the perfect person to compromise. He is a very charismatic and intelligent speaker and has the power to influence millions. Thus the globalists find people like Alex Jones the type of person they seek to promote.
The fact that he looks at trannie porn helps to explain why he acts the way he does, why he was good friends with Charlie Sheen, and why he is close to closeted “truther,” Roger Stone.
Just add this evidence to the trash heap of news that comes out about him. There was ample testimony from his child custody case to turn away any discerning truther, but the fact that his listener base continues to grow is testament to the power of the globalists to promote him as well as the enormous slide in the intellectual capacity of what’s left of the patriot movement.
We need to reassess where we get our news from, especially with respect to alt-financial media. If anyone is getting his or her news from the likes of Alex Jones, Max Keiser, RT, or the copywriters and gold shills on the Daily Reckoning (e.g. Jim Rickards, Nomi Prins) I suggest you seek other avenues before you lose all your money.
I know many find it difficult to believe, but I am certain these people are Masons and are placed into their positions of influence to confuse, bewilder, scare, and impoverish the unwitting followers. It’s done by design, and with the express, written consent of the Synagogue of Satan.
The concept of owning a home in the United States has been a primary objective of the federal government since the Great Depression, and there have been a number of agencies established to further this agenda. The most important of these agencies are the 
I could show charts that illustrate how increases in the labor supply will drive down wages and motivate employers to offer lower pay, but with open borders, the new entrants into the labor pool come mostly from developing nations and thus, demand less than those who are already in the labor pool. Many economic sectors have been permanently altered by the influx of cheap labor. Before the free trade agreements were promulgated, jobs in the manufacturing, basic services, and housing construction and remodeling sectors provided enough income to support the financial needs of many families. This is no longer the case.
Just add this evidence to the trash heap of news that comes out about him. There was ample testimony from his child custody case to turn away any discerning truther, but the fact that his listener base continues to grow is testament to the power of the globalists to promote him as well as the enormous slide in the intellectual capacity of what’s left of the patriot movement.