China’s deal to buy the Chicago Exchange has been delayed by the SEC. Hallelujah, the SEC does have some commonsense after all. Reuters reports (link above) that a long-term objective of China is to list Chinese companies in the United States through CHX, which has locations in Chicago and New Jersey.
China Buying Chicago Stock Exchange Is a Bad Idea
China buying the Chicago Stock Exchange is a bad idea IMO. China is a communist country and as such they don’t abide by the same transparency that U.S. listed companies do. Why does this matter?
Currency manipulation and a push to outgrow America has led to fake Ghost Cities across China.
Much of China’s debt is not secured and so many Chinese companies borrowed money with fake collateral and so where does that leave investors if the company goes bankrupt?
Moody’s recently downgraded China’s debt and how do the Chinese respond? With contempt and anger rather than admission of the problem inherent to all communist systems.
Stock exchanges have listing requirements. Violate the listing requirements and your stock gets booted from being listed on that exchange. If China buys the Chicago Stock Exchange and then lists Chinese stocks on that exchange, that’s a huge conflict of interest! Of course China will change the Chicago Stock Exchange listing requirements to favor its stocks. It will be the China Stock Exchange as a market inside the US economy and it will lack transparency because Chinese companies lack transparency. What about the Chinese companies that claimed to have collateral to bail out investors in case of a bankruptcy? No worries, the Chicago Stock Exchange won’t have any requirement of Chinese companies to secure collateral.
Not only should the SEC reject China from buying the Chicago Stock Exchange, but every China ADR that’s listed on US markets should be reviewed by the SEC and possibly delisted if they lied on their books and fail to prove they have collateral for their debts. China companies must provide the same transparency that US companies do and the Chinese government has to be willing to prosecute businesses inside China on behalf of the SEC. That’s fair trading for US investors and US companies IMO.
How stupid do you have to be to think that China is a friend of the United States? South Korea and the U.S. were carrying out their usual joint military exercises in the region and so North Korea violated international law and launched four ballistic missiles on Monday in response.
North Korea just figured out how to launch a ballistic missile within the last year or so, something the US figured out how to do in May of 1957. North Korea thinks it’s a big tough guy on the block now and so they are going to launch ballistic missiles every chance they get.
Being the technologically superior country on the entire plant we have deployed the first elements of our advanced Terminal High Altitude Area Defense (THAAD) anti-missile system in South Korea. This missile defense system will protect both South Korea and Japan.
So what does China do? Chinese authorities have closed nearly two dozen retail stores of South Korea’s Lotte Group, which approved a land swap with the military last week to allow it to install the anti-missile system. The Chinese extort businesses inside China because that’s what communists do. If China doesn’t like something that your government does, China will close down all your businesses inside its country.
Why would any US business owner go to China to manufacture things? Are you stupid? China is going to steal your IP, tooling molds, designs, and they will produce your product themselves and sell it everywhere around the planet for cheaper than you do (using slave labor and government subsidies), and what are you going to do about it? Even if you have the money to file with the WTO, get in line buddy, it could be years before the WTO gets around to looking at your complaint and by then, you’ll be out of business and dirt broke.
But China didn’t stop there. China said the US and South Korea should stop doing military drills and stop installing the THAAD anti-missile system in South Korea. Stop doing military drills? Folks, China is no friend of the US and stupid business owners in this country that keep taking their manufacturing to China in the name of profits deserve to be ripped off.
China has risen to power off the backs of American workers, stealing tens-of-millions of our manufacturing jobs. Democrat and Republican establishment globalists said China was going to love us because we helped them out and have given them so much business. China doesn’t appreciate the US. China stole our jobs and manufacturing plants illegally and that’s given them a lot of money to build up their military and to challenge the US every chance they get. China has always been in an economic war with the US and much of the developed world. Want the proof? Check out the documentary by esteemed economist Peter Navarro, now President Trump economic advisor.
I heard Larry Kudlow call economist Peter Navarro a “nut job” on CNBC. This is the same Larry Kudlow who wrote so brilliantly in the National Review in 2007:
The recession debate is over. It’s not gonna happen. Time to move on…. The Bush boom is alive and well. It’s finishing up its sixth splendid year with many more years to come.
Or my personal favorite from February 2000 when Larry Kudlow, then CNBC host, said:
This correction will run its course until the middle of the year. Then things will pick up again, because not even Greenspan can stop the Internet economy.
Americans Are Waking Up But We Still Need To Educate
Americans are waking up to the real threat that China is and we know that because President Trump won the election. However, I talk to people who are so ignorant about China that they say things like, “We don’t need to have a trade war with China.” Reality check: China has been waging economic warfare against the United States since it was accepted into the WTO in 2001. “We” are not waging any war but are attempting to defend ourselves against China before our entire economy is destroyed forever. Wake up.
Folks, we have lost so many jobs to China and our trade deficit is so deep, as a country we may not come out of this. China’s money already influences how mainstream media groups in the US report the news as well as who gets elected.
China saw the weakness in capitalism which is the unbridled pursuit of money, and they manipulated the US Chamber of Commerce into actually pitching to business owners that outsourcing jobs to China was a good thing because it would save on labor costs and help them make even more money. China exploited capitalism to their own advantage. Now, after being in nearly a decade long slump in the economy, these same business owners are scratching their heads wondering where the US consumers are and why the economy is still in a slump. When you move 500,000 manufacturing plants to China along with millions of jobs over a 15 year period so that the US no longer has good paying manufacturing sector jobs, what do you think is ultimately going to happen? You have a lower labor participation rate and a consumer with less purchasing power. This isn’t rocket science folks and globalist sympathizers like Larry Kudlow and most of the guests on CNBC can go shove it where the sun doesn’t shine.
Alex Jones of InfoWars points out how China is buying up media groups in the US and is expanding their influence over how our news is reported and even our movies:
What China could be doing is promoting the anti-Russian rhetoric in the mainstream media so that it can forge a better relationship with Russia against the US. In reality, China is far more an enemy of the US than Russia.
What China has already done, and is currently doing, is bad for the US economy and stock market. China is forcing us to respond to the economic warfare they are waging against us as well as their attempts to influence the mainstream media in this country. Our response to the Chinese is going to create stock market volatility and perhaps even a large market crash as the President attempts to wrestle back control of our country from the Chinese.
The Committee on Foreign Investment in the United States (CFIUS) just did the unthinkable last week by deciding there are “no unresolved national security concerns” over the deal to sell the 134-year-old Chicago Stock Exchange to the Chinese.
Every common red-blooded American knows that selling the Chicago Stock Exchange to the Chinese represents the largest national security threat to the US in the last decade. It’s unthinkable that a communist country who is ideologically opposed to freedom and Democracy and who just last week seized an American underwater drone in neutral international waters would be approved by the US government to purchase the Chicago Stock Exchange.
China’s military has repeatedly harassed US ships in international waters over the last year.
How Deep Does the Corruption of the US Government By the Chinese Go?
The US government has apparently been infiltrated by Chinese interests. The fact that the Chinese bought influence and power inside the US government was made evident during both Democrat and Republican administrations who sold out US workers by closing some 60,000 manufacturing plants and moving more than 5 million manufacturing jobs to China since 2001.
Since 2001, China has invested more than $70 billion in the US, including more than $15 billion last year alone according to the China General Chamber of Commerce which operates inside the US. ChicagoBusiness writes…
Its Chicago chapter, led by Wanxiang America President Pin Ni, attracted some 400 local politicians and executives to its annual Aug. 3 gala to build business ties between the city and China. Chicago power brokers were there in full force with Mayor Rahm Emanuel, his investment banker deputy, Steve Koch, World Business Chicago CEO Jeff Malehorn and former Mayor Richard M. Daley, who consults on Chinese business through Tur Partners, as well as his brother, former U.S. Commerce Secretary Bill Daley.
The Chinese have demonstrated time and time again that they are not America’s friend. How then could the sale of the Chicago Exchange to a communist government that is hostile towards the US not be a national security threat?
What has been clear during both Republican and Democrat administrations is that people inside the US government are for sale and that’s the textbook definition of corruption.
The Committee on Foreign Investment in the United States (CFIUS) should be investigated for corruption by foreign powers. The people that sit on the Committee need to be examined to see if they received large bank deposits or other “favors” from the Chinese.
Who Sits On the Foreign Investment in the United States Committee
Chaired by the United States Secretary of the Treasury, the Foreign Investment in the United States Committee (CFIUS) includes representatives from 16 U.S. departments and agencies, including the Defense, State and Commerce departments, as well as (most recently) the Department of Homeland Security.
As Secretary of State, Clinton was one of nine voting members of CFIUS in 2010 that approved the sale of uranium to the Russians, which was then approved by President Obama. Money then flowed from the Russian-controlled company Uranium One to the Clinton Foundation. The New York Times wrote about the scheme here.
Let The Chicago Exchange Fail
The Chicago Stock Exchange should be allowed to fail if it can not stay competitive in a free market. Selling every struggling American company to the Chinese is how America slowly gets taken over by a foreign power.
Folks whenever you see a US government agency like CFIUS make an irrational decision that sells America out, chances are you will find a money trail that shows influence and corruption amongst that US government agency. Everybody elected or appointed to a government office is trying to get rich, just like we are, and they are willing to make wrong decisions for America, to achieve that end.
Black Friday sales hit an all-time high record of $3.34 billion or 21.6% growth year-over-year. Mobile accounted for $1.2 billion of those sales, a 33% increase from the previous year. TechCrunch writes…
Combined with yesterday’s $1.93 in online sales on Thanksgiving, the two days are expected to close out at nearly $5 billion in sales. Top-selling toys included Lego Creator Sets, electric scooters from Razor, Nerf Guns, DJI Phantom Drones, and Barbie Dreamhouse.
The Doctor Of Common Sense says about the major indices hitting all-time highs, “Do you believe that this is a coincidence? I’ve been telling you everything that liberals do their whole policy with their communist and social policies, they never work. All you have to do is look at how bullish the market is.” The Doctor Of Common Sense also uses Black Friday’s record sales as proof of failed Democrat and liberal policies although he fails to logically back that claim up. Check out what Doctor Common Sense has to say in the video below.
Nothing against The Doctor Of Common Sense but this is what I was afraid of. When everyone is coming out declaring how great Trump is and how bad liberals have been and citing the spike up in the stock market as proof, that’s when the market is most likely to take a turn down IMO.
This Trump Rally is mostly nonsense and hype IMO. Trump hasn’t even taken office yet. The P/E on the S&P 500 has moved higher since the election and is not supported by anything fundamental.
On the chart above, the gold line is the P/E ratio of the S&P 500 which is at a troubling high of 25.46. The red line is earnings, and the blue line is the S&P 500.
If you thought the market was overvalued before the Trump election, you must be freaking out over this latest spike up.
The stock market going up is not proof of failure by Obama and Democrats. The stock market is going up because there are more buyers than sellers and from short covering. From a market psychology perspective, greed is prevailing over fear right now. That’s it. Assigning stock market direction as proof to justify your personal political bias will result in the rapid demise of your trading account.
Don’t get me wrong; I’m a Trump supporter as you already know. But let’s be real about market valuations. Chasing markets higher because of Trump mania is a dangerous game IMO. I think a lot of amateur traders and investors have the potential to get hurt from this Trump rally when it finally comes to an end.
Saudi Arabia is now offering an international bond that yields 4.6%. The WSJ writes…
The $6.5 billion 30-year portion of Saudi Arabia’s bond is set to pay 2.1 percentage points more in yield than a comparable U.S. Treasury, or around 4.6%. That is a sizeable pickup in a world where developed-market bond yields are on the floor or in negative territory.
Let me get this straight. Saudi Arabia targeted the US oil industry by flooding our markets with cheap oil. Mainstream media groups like the WSJ and CNBC were complicit in the scheme with only a few alternative bloggers like me critical of what Saudi Arabia was doing. Folks, what Saudi Arabia did was illegal according to international trade laws and it could even be viewed as an act of war.
The US is one of the biggest consumers of Saudi Arabia oil. By increasing supply to force down the price of oil, Saudi Arabia made a lot less money and hurt themselves in an attempt to hold on to market share. Saudi Arabia is going deeper into debt by the week.
Now Saudi Arabia has issued a bond to shovel their debt off onto Americans. Saudi Arabia wants you and me to buy their debt, and they’re willing to pay us a 4.6% yield to do so! The WSJ and other mainstream media groups seldom if ever criticize Saudi Arabia because the Saudis have a lot of influence, power, and money around the world.
Any American that buys this Saudi Arabia bond has lost sight of the forest for the trees. Buying Saudi Arabia debt is un-American in my opinion.
Folks, I hope debt crushes, Saudi Arabia. They deserve it. They put tens-of-thousands of Americans out of work and have forced many American businesses into bankruptcy. Saudi Arabia’s debt problem is of their own making, and as the Bible tells us, you reap what you sow.
I don’t buy China stocks because China is a horrible communist country that runs over its citizens with tanks. I won’t buy Saudi Arabia bonds because Saudi Arabia nationals were responsible for 911 and Saudi Arabia targeted the US shale oil industry to keep market share.
Think about it. It’s evil genius brilliant. Go into debt by oversupplying the US oil market and put US oil drillers out of business. Then get those same Americans to finance the debt that hurt their very own economy!
I’m by no means an “ethical” investor but come on folks, you don’t give your enemy weapons to turn around and shoot you with. It’s just common sense IMO.
We need to get smart, fast folks. We are getting beat at every turn. Everywhere you look the politicians that are running our government and negotiating international trade deals are doing so because of corrupt “pay-to-play” schemes and special-interest groups instead of what is best for America. If we don’t start putting America first, there won’t be an America to call home.
I warned about the rising civil unrest and the dangerous racist group Black Lives Matter here. Any police-involved shooting of an African-American prompts a fast mobilization of communists and socialists to the area for the destruction of businesses and private property.
Here is a video of the Black Lives Matter group targeting “white people” in Milwaukee last night.
Folks this is only partly about the Milwaukee police shooting an African-American. The man, 23-year-old Sylville Smith, shot and killed by a Milwaukee police officer was charged last year in a shooting and then charged again, with trying to intimidate a witness in that same shooting, according to the Milwaukee Journal Sentinel. The police officer’s body camera showed Smith turning toward the officer with a gun in his hand. There is a bigger anti-capitalist, anti-private property, anti-police movement going on here orchestrated by communists and socialist groups that I wrote about here.
Destruction of Businesses Will Hurt The Stock Market
Communist and socialist groups are part of Black Lives Matter. These groups do not like the notion of private property, and so they attack businesses in the area. They bus in violent communist and socialist groups to an area, destroy the private businesses in that area, then leave the people who live there to suffer the aftermath.
Folks as stock traders, we invest in business. You can say goodbye to the stock market if the police can’t protect private property.
So far the attacks against privately owned businesses are small and so I do not expect an immediate impact on the broader stock market from what is happening in Milwaukee.
What also is concerning for stock traders is the idea of “rich people don’t give enough money to black people”. Notice how Bernie Sanders, a socialist, almost became the standard bearer for the entire Democrat party! The idea that rich people are supposed to give African-Americans money, presumably because of their race, is insane. And who exactly are these rioters defining as “rich”? If you are white and drive around in a new car, you might get flagged by an African-American mob as a rich guy who isn’t giving African-Americans enough money! After all, if you have a new car, a new smartphone, a new house, that’s inherently unfair to communists and socialists, and so they have a right to take it away from you. A significant psychological shift by the populace into this mindset will destroy the stock market and so the attacks against private property are a long term trend we need to watch.
Alex Jones was outside the RNC in Cleveland exercising his right to free speech when he was attacked by a communist left group.
Alex Jones knows what he’s doing. Notice when the communists started yelling and pushing against Alex, he ducked down and rammed the guy with his body and I wouldn’t be surprised if Alex through an elbow down low out of sight. Then as the police grabbed Alex, Alex said, “He attacked me, officer. He attacked me.” Alex knows how to handle himself in a situation like that.
Police quickly moved in to break up the scuffle.
Notice that the communists chanted, “Off our streets, Nazi scum!”
Here is another angle of what happened and listen to the radical leftist say, “All cops are dead”:
Whether you agree with everything Alex Jones says or not, you have to give the guy props for having the guts to take a bullhorn and walk into a crowd of radical left groups protesting outside the RNC.
Folks, these violent left groups represent a serious threat to our economy which will impact our ability to make money at stock trading. Consider that a Socialist almost was the pick of the Democrat party for president! Young people have been brainwashed into thinking that Socialists and Communists would actually be good at running the country. There’s a reason that no successful Socialist or Communist country exists today. All Socialist and Communist countries have failed. Moving from Capitalism and Democracy to Socialism or Communism would only hasten the demise of America. This indisputable truth is not taught to young people in the University system.
A Black Lives Matter protest is coming to a city near you. You should be afraid.
Civil unrest is on the rise in America. In Dallas, Texas last week, African-American snipers killed five Caucasian police officers protecting protesters at a Black Lives Matter rally.
The African-American gunmen were angry with how many Caucasian cops kill African-Americans. In reality, Caucasian cops kill Caucasian people more than any other race.
Nobody just matters. I know, that’s messed up, right? You may have the right to speak, but you don’t have the right to be heard. Can you imagine if everyone was forced to listen to everyone else? Nobody would get anything done. If you want to matter in this life, you have to work hard at it. You have to suffer in school, then college. You have to delay gratification while you work at moving up the many ladders in society. You matter to other people by providing value to them. The number of times you will be knocked down are more numerous than you can count, but you always keep pushing on. You have to work, as the Bible puts it, “by the sweat of your brow”. To God, and God alone, we all matter. On carnal Earth, nobody just matters. I know that’s a cynical way to look at life but I think it’s reality. It’s the earthy world of man and woman. It would be awesome if everyone was like Jesus and really acted like everyone else matters, but in reality, about half the country doesn’t even believe in Jesus.
Martin Luther King Jr. longed for a world where the color of a person’s skin does not matter. According to King, a man should not be judged by the color of his skin, but by the quality of his character. King abhorred violence. Why have some African-Americans gone militant and abandoned Martin Luther King Jr’s message? In my opinion, poverty plays the largest role.
Poverty In African-American Communities Has Opened The Door To Dangerous Militant Groups
The unemployment rate among African-Americans is about 10 percent compared to about 5 percent for Caucasians. Poverty in African-American communities has opened them up to the influence of powerful groups and their ideologies. We have seen a similar situation happen with ISIS moving into poverty-stricken countries around the world. When people are without jobs and broke, they are more susceptible to the ideologies of militant groups.
You have armed African-American hate groups, Muslim militant groups, communist militant groups, militant socialist groups, militant environmental groups, and more. These groups are funded by the Tides Foundation, which is funded by George Soros, The Heinz Endowment, Ford Foundation, Rockefeller Foundation, the Pew Charitable Trust, the James Irvine Foundation, Citigroup Foundation, Kellogg Foundation, Hearst Foundation, Fannie Mae Foundation, JP Morgan Foundation, Bank America Foundation, Chase Manhattan Foundation, Verizon Foundation, David & Lucile Packard Foundation, AT & T Foundation, Bell Atlantic Foundation, Citicorp Foundation, ARCO Foundation, US West Foundation, John D. MacArthur Foundation, ALCOA Foundation, Richard King Mellon Foundation, and the Carnegie Foundation.
These Anti-capitalist Private Property Groups Target Businesses For a Reason
You might have wondered about the riots in Ferguson and why African-Americans attacked fellow African-American business owners property. African-Americans also burned to the ground the only grocery stores in the area. At first, it seems silly and illogical to attack the few resources of jobs and food in your community. However, the truth is far more shocking and scary.
When you see rioting and the destruction of private property, that probably means that militant communists or socialists are operating in the area. It doesn’t matter if it’s an African-American owned business. It’s not about the race of the store owner. It’s about attacking the concept of private property. The far left believes if you have something that they don’t, that’s not fair, and you should not have a right to whatever it is you have.
Big grocery stores in inner-city areas that give jobs to African-Americans, they are the enemy because they provide a way for an African-American to get a job, become self-sufficient, and not have to rely on a militant socialist group for support.
One of the primary functions of police is to protect private property. Communist and socialist groups reject the concept of private property, and that is why these armed leftist groups attack police.
The dangerous leftist Black Lives Matter group had these images on its Facebook page:
A war against cops across the country:
A severed pig’s head to symbolize the group’s violent anti-cop rhetoric:
All “pigs” are the enemy:
Burning the American flag:
Start paying attention to the anti-capitalism signs you always see at Black Lives Matter protests:
Opps… CNN was covering a Donald Trump protest and was portraying it as if it was just regular Americans opposing Trump…
No, We Don’t Need To Talk To Each Other More
The mainstream media is pushing the idea that we all just need to talk to each other more. Talking to each other is way overrated. There is no talking with these militant leftist groups. They have an ideology that is against capitalism and American life as we know it. It is naive to think you can talk down a militant communist/socialist group any more than you can talk down a Muslim terrorist. The Dallas attack proves this point.
Police tried to negotiate for hours with the African-American sniper who refused to come out. Ultimately, police sent in a robot and detonated a bomb to kill the sniper.
The Rise of Leftist Militant Groups In America Means Greater Risk For Stock Traders
These militant groups have Wall Street, and even the concept of private property, in their cross-hairs. If abolishing private property rights sounds too nutty for you to believe anyone could successfully force on Americans, check out how America is already on the road to socialism:
We have one of the worst President’s in American history, President Obama, who has allowed these groups to flourish under his time in office because they helped get him elected. This leftist network of anti-American militant groups played a pivotal role in electing Barack Obama. These militant groups used classic propaganda techniques to make false allegations about Bush (that he lied regarding WMDs, he stole the election in Florida, he knew in advance about 9/11, etc.) and created the impression that Bush and by extension, the Republican party, was corrupt. Obama, of course, was portrayed as the reformer who would save America from this corruption.
Has Black Lives Matter Come To Your City Yet?
There is a good chance that Black Lives Matter activities are coming to your city. If you are not afraid, you should be.
El Paso Police Chief Greg Allen who runs one of the country’s largest police departments, had this to say about the militant group Black Lives Matter:
“Black Lives Matter, as far as I am concerned, is a radical hate group and for that purpose alone, I think the leadership of this country needs to look a little bit harder at that particular group. The consequences of what we saw in Dallas is due to their efforts.” ~ El Paso Police Chief Greg Allen
Democrats and President Obama will likely use their power and influence to remove El Paso Police Chief Greg Allen from power after he said this. Even though Greg Allen himself is an African-American, he’s a traitor to the leftist agenda and so he will have to go. I expect George Soros and other contributors to the Tides Foundation to pour a lot of money into firing El Paso Police Chief Greg Allen. There are some signs that this has already begun, check out how the mainstream news is reporting the Police Chief’s comments:
These militant leftist groups strike at the heart of what we invest and trade in, businesses. After the horrific shooting at a Black Lives Matter protest in Dallas, Texas last week, we can conclusively say that there is a rising movement of violent anti-capitalist groups across America. As traders, we have to be aware of this growing movement and trade it accordingly.