Before we get to the markets, we have to talk about something that concerns us. This week the government failed to gather enough senate votes to pass a budget resolution. We have been down this path before and it is just further testament to the ineptitude of those in congress to put the people first and their political agendas aside. We can’t say that we are the least bit surprised. What you may not know is the larger on going operation sweep to put to justice the bad actors responsible for the massive collusion of government agencies vs the then president nominee and now president elect Trump. Not only that, but there are massive implications for Hillary Clinton, the DNC and a firm called FusionGPS that compiled the so called “Trump Dossier.”
Also out this week the AP reported that the FED projects $80.2 billion in remittance back to the Treasury Dept. Here is a chart of the last decade in remittance. As you can see the FED has paid back billions to its enabler, is it safe to say this is like a drug kingpin and his pushers...maybe that’s too harsh...Anyway the charts show 3 years in a row of declining remittance and one thinks we can just continue to raise rates, can you imagine this levered behemoth and its Dv01 crushing leverage if equities turn and interest rates rise?
We feel there will be more implicating memos in the coming days and weeks and that a massive cover up is going to blow wide open. We can’t opine as to the effects it will have on domestic markets, but we want our readers to know that the domestic political front, has yet to negatively influence equity markets but we would be remised if we didn’t forewarn our readers that things are beginning to heat up. It is hard to distinguish the facts and the fakes these days, but we will do our best to decipher the news feeds and bring you bonafide data.
Anyway and another important and mostly overlooked by the media news outlets is the Senate passed the FISA Section 702 Reauthorization which allows the US government to collect communications. Some will ask why that is even a big deal. Well it basically is stating that anything digital that is out there and relayed through the internet, the cell phone etc, can and will be monitored. This is what Snowden unleashed to the public but the 702 specifically targets foreigners, but it has been well documented that US citizens are naturally caught in the net as well, and this has huge civil liberties conflicts, one we should all keep a lawful eye upon.
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