investmentwatchblog--2020-06-02--This Is Not a Revolution. It’s a Blueprint for Locking Down the Nation

There is something being concocted in the dens of power , far beyond the public eye , and it doesn ’ t bode well for the future of this country .
Anytime you have an entire nation so mesmerized by political theater and public spectacle that they are oblivious to all else , you ’ d better beware .
Anytime you have a government that operates in the shadows , speaks in a language of force , and rules by fiat , you ’ d better beware .
And anytime you have a government so far removed from its people @ @ @ @ @ @ @ seen , heard or heeded by those elected to represent them , you ’ d better beware .
What is unfolding before us is not a revolution .
The looting , the burning , the rioting , the violence : this is an anti-revolution .
The protesters are playing right into the government ’ s hands , because the powers-that-be want this .
They want an excuse to lockdown the nation and throw the switch to all-out martial law .
They want a reason to make the police state stronger .
It ’ @ @ @ @ @ @ @ up .
The Justice Department is deploying federal prison riot teams to various cities .
More than half of the nation ’ s governors are calling on the National Guard to quell civil unrest .
Growing numbers of cities , having just barely emerged from a coronavirus lockdown , are once again being locked down , this time in response to the growing upheaval .
This is how it begins .
It ’ s that dystopian 2030 Pentagon training video all over again , which anticipates the need for the government to institute @ @ @ @ @ @ @ solve domestic political and social problems ) in order to navigate a world bedeviled by “ criminal networks , ” “ substandard infrastructure , ” “ religious and ethnic tensions , ” “ impoverishment , slums , ” “ open landfills , over-burdened sewers , ” a “ growing mass of unemployed , ” and an urban landscape in which the prosperous economic elite must be protected from the impoverishment of the have nots .
The architects of the police state have us exactly where they want us : under their stamping boot @ @ @ @ @ @ @ freedom , grappling for some semblance of a future that does not resemble the totalitarian prison being erected around us .
This way lies certain tyranny .
For just one fleeting moment , “ we the people ” seemed united in our outrage over this latest killing of an unarmed man by a cop hyped up on his own authority and the power of his uniform .
Indeed , it didn ’ t take long—no surprise there—for us to quickly become divided again , polarized by the misguided fury and senseless violence of @ @ @ @ @ @ @ of madness and mayhem .
Deliberately or not , the rioters have directed our attention away from the government ’ s crimes and onto their own .
Don ’ t allow yourself to be so distracted .
Let ’ s not lose sight of what started all of this in the first place : the U.S. government .
More than terrorism , more than domestic extremism , more than gun violence and organized crime , the systemic violence being perpetrated by agents of the government constitutes a greater menace to the life , @ @ @ @ @ @ @ any of the so-called dangers from which the government claims to protect us .
Case in point : George Floyd died at the hands of the American police state .
The callous , cold-blooded murder of the unarmed , 46-year-old black man by police is nothing new : for 8 minutes and 46 seconds , police knelt on Floyd ’ s neck while the man pleaded for his life , struggled to breathe , cried out for his dead mother , and finally passed out and died .
Floyd is yet another victim @ @ @ @ @ @ @ has placed “ we the people ” at the mercy of militarized cops who have almost absolute discretion to decide who is a threat , what constitutes resistance , and how harshly they can deal with the citizens they were appointed to “ serve and protect.
” Daily , Americans are being shot , stripped , searched , choked , beaten and tasered by police for little more than daring to frown , smile , question , challenge an order or just exist .
I ’ m talking about the growing numbers of @ @ @ @ @ @ @ killed for just standing a certain way , or moving a certain way , or holding something—anything—that police could misinterpret to be a gun , or igniting some trigger-centric fear in a police officer ’ s mind that has nothing to do with an actual threat to their safety .
Killed by police for standing in a “ shooting stance.
” Killed for holding a cell phone .
Killed for holding a baseball bat .
Killed for opening the front door .
Killed for being a child in a car pursued by police @ @ @ @ @ @ @ a metal spoon .
Killed for running in an aggressive manner while holding a tree branch .
Killed for crawling around naked .
Killed for hunching over in a defensive posture .
Killed because a police officer accidentally fired his gun instead of his taser .
Killed for wearing dark pants and a basketball jersey .
Killed for reaching for his license and registration during a traffic stop .
Killed for driving while deaf .
Killed for being homeless .
Killed for brandishing a shoehorn .
Killed for peeing outdoors .
Killed for @ @ @ @ @ @ @ road .
Killed for holding a garden hose .
Now you can make all kinds of excuses to justify these shootings , and in fact that ’ s exactly what you ’ ll hear from politicians , police unions , law enforcement officials and individuals who are more than happy to march in lockstep with the police .
However , as these incidents make clear , the only truly compliant , submissive and obedient citizen in a police state is a dead one .
Sad , isn ’ t it , how quickly @ @ @ @ @ @ @ laws—where the least among us had just as much right to be treated with dignity and respect as the next person ( in principle , at least ) —to a nation of law enforcers ( revenue collectors with weapons ) who treat us all like suspects and criminals ?
This is not how you keep the peace .
This is not justice .
This is not even law and order .
This is certainly not freedom .
This is the illusion of freedom .
Unfortunately , we are now being ruled by a @ @ @ @ @ @ @ , thugs , thieves , gangsters , ruffians , rapists , extortionists , bounty hunters , battle-ready warriors and cold-blooded killers who communicate using a language of force and oppression .
The facts speak for themselves .
We ’ re being ravaged by a government of ruffians , rapists and killers .
It ’ s not just the police shootings of unarmed citizens that are worrisome .
It ’ s the SWAT team raids gone wrong that are leaving innocent citizens wounded , children terrorized and family pets killed .
It ’ s @ @ @ @ @ @ @ cavity searches of men and women alike carried out in full view of the public—in pursuit of drugs that are never found .
It ’ s the potentially lethal—and unwarranted—use of so-called “ nonlethal ” weapons such as tasers on children for “ mouthing off to a police officer .
For trying to run from the principal ’ s office .
For , at the age of 12 , getting into a fight with another girl.
” We ’ re being held at gunpoint by a government of soldiers—a standing army .
While @ @ @ @ @ @ @ an increasing number of hoops in order to exercise their Second Amendment right to own a gun , the government is arming its own civilian employees to the hilt with guns , ammunition and military-style equipment , authorizing them to make arrests , and training them in military tactics .
Among the agencies being supplied with night-vision equipment , body armor , hollow-point bullets , shotguns , drones , assault rifles and LP gas cannons are the Smithsonian , U.S. Mint , Health and Human Services , IRS , FDA , Small Business @ @ @ @ @ @ @ Oceanic and Atmospheric Administration , Education Department , Energy Department , Bureau of Engraving and Printing and an assortment of public universities .
There are now reportedly more bureaucratic ( non-military ) government civilians armed with high-tech , deadly weapons than U.S. Marines .
That doesn ’ t even begin to touch on the government ’ s arsenal , the transformation of local police into extensions of the military , and the speed with which the nation could be locked down under martial law depending on the circumstances .
Clearly , the government @ @ @ @ @ @ @ , at that—and “ we the people ” are the perceived enemy .
We ’ re being taken advantage of by a government of scoundrels , idiots and cowards .
American satirist H.L .
Mencken calculated that “ Congress consists of one-third , more or less , scoundrels ; two-thirds , more or less , idiots ; and three-thirds , more or less , poltroons.
” By and large , Americans seem to agree .
When you ’ ve got government representatives who spend a large chunk of their work hours fundraising , @ @ @ @ @ @ @ a lucrative revolving door between public service and lobbying , and making themselves available to anyone with enough money to secure access to a congressional office , you ’ re in the clutches of a corrupt oligarchy .
Mind you , these same elected officials rarely read the legislation they ’ re enacting , nor do they seem capable of enacting much legislation that actually helps rather than hinders the plight of the American citizen .
We ’ re being locked up by a government of greedy jailers .
We have become a @ @ @ @ @ @ @ on our prisons than on our schools and imprisoning close to a quarter of the world ’ s prisoners , despite the fact that crime is at an all-time low and the U.S. makes up only 5 % of the world ’ s population .
The rise of overcriminalization and profit-driven private prisons provides even greater incentives for locking up American citizens for such non-violent “ crimes ” as having an overgrown lawn .
As the Boston Review points out , “ America ’ s contemporary system of policing , courts , imprisonment @ @ @ @ @ @ @ asset forfeiture , lucrative public contracts from private service providers , and by directly extracting revenue and unpaid labor from populations of color and the poor .
In states and municipalities throughout the country , the criminal justice system defrays costs by forcing prisoners and their families to pay for punishment .
It also allows private service providers to charge outrageous fees for everyday needs such as telephone calls .
As a result people facing even minor criminal charges can easily find themselves trapped in a self-perpetuating cycle of debt , criminalization , @ @ @ @ @ @ @ spied on by a government of Peeping Toms .
The government , aided by its corporate allies , is watching everything you do , reading everything you write , listening to everything you say , and monitoring everything you spend .
Omnipresent surveillance is paving the way for government programs that profile citizens , document their behavior and attempt to predict what they might do in the future , whether it ’ s what they might buy , what politician they might support , or what kinds of crimes they might commit .
@ @ @ @ @ @ @ according to Psychology Today , is “ reduced trust , increased conformity , and even diminished civic participation.
” As technology analyst Jillian C. York concludes , “ Mass surveillance without due process—whether undertaken by the government of Bahrain , Russia , the US , or anywhere in between—threatens to stifle and smother that dissent , leaving in its wake a populace cowed by fear.
” We ’ re being forced to surrender our freedoms—and those of our children—to a government of extortionists , money launderers and professional pirates .
The American people @ @ @ @ @ @ @ goods about how the government needs more money , more expansive powers , and more secrecy ( secret courts , secret budgets , secret military campaigns , secret surveillance ) in order to keep us safe .
Under the guise of fighting its wars on terror , drugs , domestic extremism , pandemics and civil unrest , the government has spent billions in taxpayer dollars on endless wars that have sown the seeds of blowback , surveillance programs that have subjected all Americans to a surveillance society , and militarized police that have @ @ @ @ @ @ @ re being robbed blind by a government of thieves .
Americans no longer have any real protection against government agents empowered to seize private property at will .
For instance , police agencies under the guise of asset forfeiture laws are taking property based on little more than a suspicion of criminal activity .
And we ’ re being forced to live in a perpetual state of emergency .
From 9/11 through the COVID-19 lockdowns and now the threat of martial law in the face of growing civil unrest , we have witnessed @ @ @ @ @ @ @ ” that justifies all manner of government tyranny and power grabs in the so-called name of national security .
Whatever else it may be—a danger , a menace , a threat—the U.S. government is certainly not looking out for our best interests , nor is it in any way a friend to freedom .
When the government views itself as superior to the citizenry , when it no longer operates for the benefit of the people , when the people are no longer able to peacefully reform their government , when government officials @ @ @ @ @ @ @ when elected officials no longer represent the will of the people , when the government routinely violates the rights of the people and perpetrates more violence against the citizenry than the criminal class , when government spending is unaccountable and unaccounted for , when the judiciary act as courts of order rather than justice , and when the government is no longer bound by the laws of the Constitution , then you no longer have a government “ of the people , by the people and for the people.
” What we have @ @ @ @ @ @ @ backs are against the proverbial wall .
The government and its cohorts have conspired to ensure that the only real recourse the American people have to express their displeasure with the government is through voting , which is no real recourse at all .
The penalties for civil disobedience , whistleblowing and rebellion are severe .
If you refuse to pay taxes for government programs you believe to be immoral or illegal , you will go to jail .
If you attempt to overthrow the government—or any agency thereof—because you believe it has @ @ @ @ @ @ @ to jail .
If you attempt to blow the whistle on government misconduct , there ’ s a pretty good chance you will go to jail .
For too long , the American people have obeyed the government ’ s dictates , no matter now extreme .
We have paid its taxes , penalties and fines , no matter how outrageous .
We have tolerated its indignities , insults and abuses , no matter how egregious .
We have turned a blind eye to its indiscretions and incompetence , no matter how imprudent @ @ @ @ @ @ @ the face of its lawlessness , licentiousness and corruption , no matter how illicit .
How long we will continue to suffer depends on how much we ’ re willing to give up for the sake of freedom .
America ’ s founders provided us with a very specific explanation about the purpose of government and a roadmap for what to do when the government abuses its authority , ignores our objections , and establishes itself as a tyrant .
We must choose between peaceful slavery ( in other words , maintaining the @ @ @ @ @ @ @ state ) and dangerous freedom .
That will mean carving out a path in which we begin to take ownership of our government , starting at the local level , challenging the status quo , and raising hell—nonviolently—whenever a government official steps out of line .
We can no longer maintain the illusion of freedom .
As I make clear in my book Battlefield America : The War on the American People , we are at our most vulnerable right now .

by John W. Whitehead
“When it gets down to having to use violence, then you are playing the system’s game. The establishment will irritate you—pull your beard, flick your face—to make you fight. Because once they’ve got you violent, then they know how to handle you.”—John Lennon
Brace yourselves.
There is something being concocted in the dens of power, far beyond the public eye, and it doesn’t bode well for the future of this country.
Anytime you have an entire nation so mesmerized by political theater and public spectacle that they are oblivious to all else, you’d better beware.
Anytime you have a government that operates in the shadows, speaks in a language of force, and rules by fiat, you’d better beware.
And anytime you have a government so far removed from its people as to ensure that they are never seen, heard or heeded by those elected to represent them, you’d better beware.
What is unfolding before us is not a revolution.
The looting, the burning, the rioting, the violence: this is an anti-revolution.
The protesters are playing right into the government’s hands, because the powers-that-be want this. They want an excuse to lockdown the nation and throw the switch to all-out martial law. They want a reason to make the police state stronger.
It’s happening faster than we can keep up.
The Justice Department is deploying federal prison riot teams to various cities. More than half of the nation’s governors are calling on the National Guard to quell civil unrest. Growing numbers of cities, having just barely emerged from a coronavirus lockdown, are once again being locked down, this time in response to the growing upheaval.
This is how it begins.
It’s that dystopian 2030 Pentagon training video all over again, which anticipates the need for the government to institute martial law (use armed forces to solve domestic political and social problems) in order to navigate a world bedeviled by “criminal networks,” “substandard infrastructure,” “religious and ethnic tensions,” “impoverishment, slums,” “open landfills, over-burdened sewers,” a “growing mass of unemployed,” and an urban landscape in which the prosperous economic elite must be protected from the impoverishment of the have nots.
We’re way ahead of schedule.
The architects of the police state have us exactly where they want us: under their stamping boot, gasping for breath, desperate for freedom, grappling for some semblance of a future that does not resemble the totalitarian prison being erected around us.
This way lies certain tyranny.
For just one fleeting moment, “we the people” seemed united in our outrage over this latest killing of an unarmed man by a cop hyped up on his own authority and the power of his uniform.
That unity didn’t last.
Indeed, it didn’t take long—no surprise there—for us to quickly become divided again, polarized by the misguided fury and senseless violence of mobs taking to the streets, reeking of madness and mayhem.
Deliberately or not, the rioters have directed our attention away from the government’s crimes and onto their own.
This is a distraction.
Don’t allow yourself to be so distracted.
Let’s not lose sight of what started all of this in the first place: the U.S. government.
More than terrorism, more than domestic extremism, more than gun violence and organized crime, the systemic violence being perpetrated by agents of the government constitutes a greater menace to the life, liberty and property of its citizens than any of the so-called dangers from which the government claims to protect us.
Case in point: George Floyd died at the hands of the American police state.
The callous, cold-blooded murder of the unarmed, 46-year-old black man by police is nothing new: for 8 minutes and 46 seconds, police knelt on Floyd’s neck while the man pleaded for his life, struggled to breathe, cried out for his dead mother, and finally passed out and died.
Floyd is yet another victim of a broken system of policing that has placed “we the people” at the mercy of militarized cops who have almost absolute discretion to decide who is a threat, what constitutes resistance, and how harshly they can deal with the citizens they were appointed to “serve and protect.”
Daily, Americans are being shot, stripped, searched, choked, beaten and tasered by police for little more than daring to frown, smile, question, challenge an order or just exist.
I’m talking about the growing numbers of unarmed people are who being shot and killed for just standing a certain way, or moving a certain way, or holding something—anything—that police could misinterpret to be a gun, or igniting some trigger-centric fear in a police officer’s mind that has nothing to do with an actual threat to their safety.
We are primarily funded by readers. Please subscribe and donate to support us!
Killed by police for standing in a “shooting stance.” Killed for holding a cell phone. Killed for holding a baseball bat. Killed for opening the front door. Killed for being a child in a car pursued by police. Killed for approaching police while holding a metal spoon. Killed for running in an aggressive manner while holding a tree branch. Killed for crawling around naked. Killed for hunching over in a defensive posture. Killed because a police officer accidentally fired his gun instead of his taser. Killed for wearing dark pants and a basketball jersey. Killed for reaching for his license and registration during a traffic stop. Killed for driving while deaf. Killed for being homeless. Killed for brandishing a shoehorn. Killed for peeing outdoors. Killed for having his car break down on the road. Killed for holding a garden hose.
Now you can make all kinds of excuses to justify these shootings, and in fact that’s exactly what you’ll hear from politicians, police unions, law enforcement officials and individuals who are more than happy to march in lockstep with the police. However, as these incidents make clear, the only truly compliant, submissive and obedient citizen in a police state is a dead one.
Sad, isn’t it, how quickly we have gone from a nation of laws—where the least among us had just as much right to be treated with dignity and respect as the next person (in principle, at least)—to a nation of law enforcers (revenue collectors with weapons) who treat us all like suspects and criminals?
This is not how you keep the peace.
This is not justice. This is not even law and order.
This is certainly not freedom. This is the illusion of freedom.
Unfortunately, we are now being ruled by a government of psychopaths, scoundrels, spies, thugs, thieves, gangsters, ruffians, rapists, extortionists, bounty hunters, battle-ready warriors and cold-blooded killers who communicate using a language of force and oppression.
The facts speak for themselves.
We’re being ravaged by a government of ruffians, rapists and killers. It’s not just the police shootings of unarmed citizens that are worrisome. It’s the SWAT team raids gone wrong that are leaving innocent citizens wounded, children terrorized and family pets killed. It’s the roadside strip searches—in some cases, cavity searches of men and women alike carried out in full view of the public—in pursuit of drugs that are never found. It’s the potentially lethal—and unwarranted—use of so-called “nonlethal” weapons such as tasers on children for “mouthing off to a police officer. For trying to run from the principal’s office. For, at the age of 12, getting into a fight with another girl.”
We’re being held at gunpoint by a government of soldiers—a standing army. While Americans are being made to jump through an increasing number of hoops in order to exercise their Second Amendment right to own a gun, the government is arming its own civilian employees to the hilt with guns, ammunition and military-style equipment, authorizing them to make arrests, and training them in military tactics. Among the agencies being supplied with night-vision equipment, body armor, hollow-point bullets, shotguns, drones, assault rifles and LP gas cannons are the Smithsonian, U.S. Mint, Health and Human Services, IRS, FDA, Small Business Administration, Social Security Administration, National Oceanic and Atmospheric Administration, Education Department, Energy Department, Bureau of Engraving and Printing and an assortment of public universities. There are now reportedly more bureaucratic (non-military) government civilians armed with high-tech, deadly weapons than U.S. Marines. That doesn’t even begin to touch on the government’s arsenal, the transformation of local police into extensions of the military, and the speed with which the nation could be locked down under martial law depending on the circumstances. Clearly, the government is preparing for war—and a civil war, at that—and “we the people” are the perceived enemy.
We’re being taken advantage of by a government of scoundrels, idiots and cowards. American satirist H.L. Mencken calculated that “Congress consists of one-third, more or less, scoundrels; two-thirds, more or less, idiots; and three-thirds, more or less, poltroons.” By and large, Americans seem to agree. When you’ve got government representatives who spend a large chunk of their work hours fundraising, being feted by lobbyists, shuffling through a lucrative revolving door between public service and lobbying, and making themselves available to anyone with enough money to secure access to a congressional office, you’re in the clutches of a corrupt oligarchy. Mind you, these same elected officials rarely read the legislation they’re enacting, nor do they seem capable of enacting much legislation that actually helps rather than hinders the plight of the American citizen.
We’re being locked up by a government of greedy jailers. We have become a carceral state, spending three times more on our prisons than on our schools and imprisoning close to a quarter of the world’s prisoners, despite the fact that crime is at an all-time low and the U.S. makes up only 5% of the world’s population. The rise of overcriminalization and profit-driven private prisons provides even greater incentives for locking up American citizens for such non-violent “crimes” as having an overgrown lawn. As the Boston Review points out, “America’s contemporary system of policing, courts, imprisonment, and parole … makes money through asset forfeiture, lucrative public contracts from private service providers, and by directly extracting revenue and unpaid labor from populations of color and the poor. In states and municipalities throughout the country, the criminal justice system defrays costs by forcing prisoners and their families to pay for punishment. It also allows private service providers to charge outrageous fees for everyday needs such as telephone calls. As a result people facing even minor criminal charges can easily find themselves trapped in a self-perpetuating cycle of debt, criminalization, and incarceration.”
We’re being spied on by a government of Peeping Toms. The government, aided by its corporate allies, is watching everything you do, reading everything you write, listening to everything you say, and monitoring everything you spend. Omnipresent surveillance is paving the way for government programs that profile citizens, document their behavior and attempt to predict what they might do in the future, whether it’s what they might buy, what politician they might support, or what kinds of crimes they might commit. The impact of this far-reaching surveillance, according to Psychology Today, is “reduced trust, increased conformity, and even diminished civic participation.” As technology analyst Jillian C. York concludes, “Mass surveillance without due process—whether undertaken by the government of Bahrain, Russia, the US, or anywhere in between—threatens to stifle and smother that dissent, leaving in its wake a populace cowed by fear.”
We’re being forced to surrender our freedoms—and those of our children—to a government of extortionists, money launderers and professional pirates. The American people have been repeatedly sold a bill of goods about how the government needs more money, more expansive powers, and more secrecy (secret courts, secret budgets, secret military campaigns, secret surveillance) in order to keep us safe. Under the guise of fighting its wars on terror, drugs, domestic extremism, pandemics and civil unrest, the government has spent billions in taxpayer dollars on endless wars that have sown the seeds of blowback, surveillance programs that have subjected all Americans to a surveillance society, and militarized police that have turned communities into warzones.
We’re being robbed blind by a government of thieves. Americans no longer have any real protection against government agents empowered to seize private property at will. For instance, police agencies under the guise of asset forfeiture laws are taking property based on little more than a suspicion of criminal activity.
And we’re being forced to live in a perpetual state of emergency. From 9/11 through the COVID-19 lockdowns and now the threat of martial law in the face of growing civil unrest, we have witnessed the rise of an “emergency state” that justifies all manner of government tyranny and power grabs in the so-called name of national security.
Whatever else it may be—a danger, a menace, a threat—the U.S. government is certainly not looking out for our best interests, nor is it in any way a friend to freedom.
When the government views itself as superior to the citizenry, when it no longer operates for the benefit of the people, when the people are no longer able to peacefully reform their government, when government officials cease to act like public servants, when elected officials no longer represent the will of the people, when the government routinely violates the rights of the people and perpetrates more violence against the citizenry than the criminal class, when government spending is unaccountable and unaccounted for, when the judiciary act as courts of order rather than justice, and when the government is no longer bound by the laws of the Constitution, then you no longer have a government “of the people, by the people and for the people.”
What we have is a government of wolves.
Our backs are against the proverbial wall.
The government and its cohorts have conspired to ensure that the only real recourse the American people have to express their displeasure with the government is through voting, which is no real recourse at all.
The penalties for civil disobedience, whistleblowing and rebellion are severe. If you refuse to pay taxes for government programs you believe to be immoral or illegal, you will go to jail. If you attempt to overthrow the government—or any agency thereof—because you believe it has overstepped its reach, you will go to jail. If you attempt to blow the whistle on government misconduct, there’s a pretty good chance you will go to jail.
For too long, the American people have obeyed the government’s dictates, no matter now extreme. We have paid its taxes, penalties and fines, no matter how outrageous. We have tolerated its indignities, insults and abuses, no matter how egregious. We have turned a blind eye to its indiscretions and incompetence, no matter how imprudent. We have held our silence in the face of its lawlessness, licentiousness and corruption, no matter how illicit.
We have suffered.
How long we will continue to suffer depends on how much we’re willing to give up for the sake of freedom.
America’s founders provided us with a very specific explanation about the purpose of government and a roadmap for what to do when the government abuses its authority, ignores our objections, and establishes itself as a tyrant.
We must choose between peaceful slavery (in other words, maintaining the status quo in servitude to the police state) and dangerous freedom. That will mean carving out a path in which we begin to take ownership of our government, starting at the local level, challenging the status quo, and raising hell—nonviolently—whenever a government official steps out of line.
We can no longer maintain the illusion of freedom.
As I make clear in my book Battlefield America: The War on the American People, we are at our most vulnerable right now.


investmentwatchblog--2020-06-02--Civil Unrest Follows Pandemic, Like Day Follows Night with John Rubino

John Rubino and I had been warning you for years that this moment was coming .
We take zero pleasure @ @ @ @ @ only purpose was to help you perceive what was really taking place all around you @ @ @ @ @ pandemic may end shortly , but the damage will be felt for years , if @ @ @ @ @ ’ s more downside on the way , remember , bad things come in threes @ @ @ @ @ a killer hurricane season or other natural disasters or perhaps a war , we ’ @ @ @ @ @ a guess .
Only an admonition that no matter what , you need to be @ @ @ @ @ Listen to the Audio

from Financial Survival Network
John Rubino and I had been warning you for years that this moment was coming. We take zero pleasure in being right. Our only purpose was to help you perceive what was really taking place all around you. The riots and the pandemic may end shortly, but the damage will be felt for years, if not decades. But there’s more downside on the way, remember, bad things come in threes. Whether that’s a killer hurricane season or other natural disasters or perhaps a war, we’re not willing to hazard a guess. Only an admonition that no matter what, you need to be prepared.
We are primarily funded by readers. Please subscribe and donate to support us!
Click Here to Listen to the Audio


investmentwatchblog--2020-06-02--Bitcoin’s Usage During and after the COVID-19 Pandemic

The globally influential financial giant Deutchse Bank announced on Twitter “ The COVID-19 pandemic is accelerating the rise of central bank digital currencies as many governments see the handling of cash as a potential risk factor .
This will likely add to calls to move towards digital cash , according to our Deutsche Bank research colleague Marion Laboure.
” This sentiment echoes the statements from other financial institutions that see a reshaping of personal finance after the pandemic , with a new and enhanced role for cryptocurrencies such as Bitcoin .
Investors flocked to Bitcoin during the March stock market @ @ @ @ @ @ @ cryptocurrency ’ s price dipped .
Data from Cointelegraph noted as much as $ 44 billion in total on-chain activity during the week of March 15th .
And , as of May 27th , BTC ’ s price rose to around $ 9,100 , up substantially from the $ 4,994 low point on March 16th .
The pandemic created a variety of new conditions that are impacting traditional monetary markets as well as cryptocurrencies .
In Germany , a country with a strong national preference for the use of cash compared to electronic-based @ @ @ @ @ @ @ payments landscape .
At many merchants , cash became either banned or discouraged due to fear about germs .
The trend in Germany follows other European countries such as the United Kingdom , where a survey indicated 75 % of people were decreasing their cash usage due to the pandemic .
Coins and cash functioning as virus and bacteria vectors is well known , with studies over the years pointing to an increased risk from handling communal objects such as cash money with germ transmission , especially from banknotes from medical or food @ @ @ @ @ @ @ handed from a teller to a customer , the transaction is also breaks the six-foot recommended distancing barrier , unless there is a drawer or other mechanism in place to avoid such interaction .
The length of the pandemic will largely determine the public ’ s attitudes towards cash as a potential disease vector that ’ s avoidable through a transition to contact-less payments .
A consistent benefit of cash is it provides a means of currency for “ underbanked ” individuals .
These are people with limited access to traditional banking , @ @ @ @ @ @ @ and not have other financial instruments such as debit or credit cards .
COVID-19 and an overall push towards contact-less electronic payments will put more pressure on these individuals that rely on cash for their daily lives .
But Bitcoin functions as a viable alternative for cash for underbanked consumers .
It is decentralized , and sale or purchase of Bitcoin does not require a traditional bank account .
People in underbanked situations can leverage Bitcoin ATM machines to purchase Bitcoin and other cryptocurrencies with cash in a matter of seconds .
For @ @ @ @ @ @ @ hundreds of Bitcoin ATM machines that serve a wide variety of demographic areas .
Consumers with access to Bitcoin can then utilize their holdings as a longer-term savings vehicle , but also have the flexibility of immediately turning their cryptocurrency holdings into fiat currency .
Owning cryptocurrency also provides individuals with access to micro-lending opportunities ( both receiving loans and funding them ) , which can expand their ability to run a business or earn returns with their funds .
Knowing the Half of It The surge in Bitcoin ’ s usage and @ @ @ @ @ @ @ timed with a momentous occasion for the cryptocurrency—the halving .
Every four years , Bitcoin ’ s mining block award shifted from 12.5 to 6.25 BTC .
This process began in 2009 , when miners earned 50 coins every 10 minutes , and now it is at 12.5 , and will continue until there is a total of 21 million coins available in 2140 .
These moves make it more costly for miners to acquire Bitcoin , as the mining process is time consuming and requires a significant amount of computing power .
@ @ @ @ @ @ @ Bitcoin ’ s price in the coming months as more buyers see it reacting in similar ways as it did after the two previous halving events , which brought significant price gains .
This was due to multiple factors , but primarily because of the immediate cut in Bitcoin supply caused by halving events .
Bitcoin ’ s future after the pandemic is uncertain , but points to a surge in usage and acceptance , especially with the rise of availability and ease of use with Bitcoin ATMs popping up around the country @ @ @ @ @ @ @ There ’ s a confluence of factors in play , including a movement away from physical cash due to germ worries , investors looking for a safe haven for their money , and the expanded availability of Bitcoin through ATMs and other purchase avenues .
All of these are coming together to create an environment for Bitcoin ’ s growth and acceptance throughout 2020 and into the next year .
Disclaimer : This content does not necessarily represent the views of IWB .

The globally influential financial giant Deutchse Bank announced on Twitter “The COVID-19 pandemic is accelerating the rise of central bank digital currencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards digital cash, according to our Deutsche Bank research colleague Marion Laboure.” This sentiment echoes the statements from other financial institutions that see a reshaping of personal finance after the pandemic, with a new and enhanced role for cryptocurrencies such as Bitcoin.
Investors flocked to Bitcoin during the March stock market downturn and continued buying even as the cryptocurrency’s price dipped. Data from Cointelegraph noted as much as $44 billion in total on-chain activity during the week of March 15th. And, as of May 27th, BTC’s price rose to around $9,100, up substantially from the $4,994 low point on March 16th.
The pandemic created a variety of new conditions that are impacting traditional monetary markets as well as cryptocurrencies.
The Move from Cash
In Germany, a country with a strong national preference for the use of cash compared to electronic-based payments, the COVID-19 pandemic shifted the payments landscape. At many merchants, cash became either banned or discouraged due to fear about germs. The trend in Germany follows other European countries such as the United Kingdom, where a survey indicated 75% of people were decreasing their cash usage due to the pandemic.
Coins and cash functioning as virus and bacteria vectors is well known, with studies over the years pointing to an increased risk from handling communal objects such as cash money with germ transmission, especially from banknotes from medical or food establishment settings. And when cash is handed from a teller to a customer, the transaction is also breaks the six-foot recommended distancing barrier, unless there is a drawer or other mechanism in place to avoid such interaction. The length of the pandemic will largely determine the public’s attitudes towards cash as a potential disease vector that’s avoidable through a transition to contact-less payments.
Serving the Underbanked
We are primarily funded by readers. Please subscribe and donate to support us!
A consistent benefit of cash is it provides a means of currency for “underbanked” individuals. These are people with limited access to traditional banking, who might be paid in cash, and not have other financial instruments such as debit or credit cards. COVID-19 and an overall push towards contact-less electronic payments will put more pressure on these individuals that rely on cash for their daily lives.
But Bitcoin functions as a viable alternative for cash for underbanked consumers. It is decentralized, and sale or purchase of Bitcoin does not require a traditional bank account. People in underbanked situations can leverage Bitcoin ATM machines to purchase Bitcoin and other cryptocurrencies with cash in a matter of seconds. For example, companies like Bitcoin Depot operate hundreds of Bitcoin ATM machines that serve a wide variety of demographic areas. Consumers with access to Bitcoin can then utilize their holdings as a longer-term savings vehicle, but also have the flexibility of immediately turning their cryptocurrency holdings into fiat currency. Owning cryptocurrency also provides individuals with access to micro-lending opportunities (both receiving loans and funding them), which can expand their ability to run a business or earn returns with their funds.
Knowing the Half of It
The surge in Bitcoin’s usage and fears about using physical cash are also timed with a momentous occasion for the cryptocurrency—the halving. Every four years, Bitcoin’s mining block award shifted from 12.5 to 6.25 BTC. This process began in 2009, when miners earned 50 coins every 10 minutes, and now it is at 12.5, and will continue until there is a total of 21 million coins available in 2140. These moves make it more costly for miners to acquire Bitcoin, as the mining process is time consuming and requires a significant amount of computing power.
Most experts see a gradual boost in Bitcoin’s price in the coming months as more buyers see it reacting in similar ways as it did after the two previous halving events, which brought significant price gains. This was due to multiple factors, but primarily because of the immediate cut in Bitcoin supply caused by halving events.
Bitcoin’s future after the pandemic is uncertain, but points to a surge in usage and acceptance, especially with the rise of availability and ease of use with Bitcoin ATMs popping up around the country from companies such as Bitcoin Depot. There’s a confluence of factors in play, including a movement away from physical cash due to germ worries, investors looking for a safe haven for their money, and the expanded availability of Bitcoin through ATMs and other purchase avenues. All of these are coming together to create an environment for Bitcoin’s growth and acceptance throughout 2020 and into the next year.
Disclaimer: This content does not necessarily represent the views of IWB.


investmentwatchblog--2020-06-02--ANTIFA IS Fully Bugged!

ANTIFA IS Fully Bugged!

The first day of June shows Gold started off much higher before all that central calm was applied with the trade now at $ 1,742.90 down $ 8.80 and right beside that organized low at $ 1,741.50 with the high at $ 1,761 .
Silver is still in the green with its trade at $ 18.545 , up 4 cents after hitting $ 18.95 with the London Low right here at $ 18.54 .
The US Dollar is still barely moving , proving the controllers are still in play , with the trade at 98.145 down 19.6 points after dipping @ @ @ @ @ @ @ at 98.335 .
Of course , all this happened while we slept , before 5 am pst , the Comex open , the London close , and after AOC found out she wasn ’ t so popular with the legal and living after all .
LOLOLOLOLOLOL Golds trade under the Venezuelan Bolivar is still showing gains with the trade at 17,407.21 with the currency adding another 7.99 to the value with Silver seeing an additional 2.849 added on with the early morning registered price at 185.218 Bolivar .
Argentina ’ s Peso now @ @ @ @ @ @ @ gain of 106.33 Peso ’ s over the weekend with Silver now at 1,268.32 Peso ’ s showing a 20.07 A-Peso gain .
The Turkish Lira seems to be pushing the real money lower with Gold losing 26.3 Lira with the price at 11,874.99 .
Silver however , is gaining under the Lira with the trade at 126.386 proving a gain of 1.648 T-Lira .
June Silver ’ s delivery demands dropped a bit with the count now at 126 fully paid for 5,000-ounce contracts waiting for receipts with a Volume of 5 @ @ @ @ @ @ @ trading range between $ 18.815 and $ 18.75 with the last trade at the high , up 31 cents so far today .
Friday ’ s final trading range inside the delivery month was between $ 17.885 and $ 17.865 and with the adjusted close way up above the day ’ s trades at $ 18.44 with a total Volume of 25 proving 239 contracts either got settled out in receipts or EFP ’ d under some sort of yearlong emergency plan no one else is allowed to know but those inside the @ @ @ @ @ @ @ it .
The inter commodity spread is still being played with Silver ’ s Overall Open Interest gaining more shorts with the count now at 166,373 Overnighters proving a gain of 3,305 during Friday ’ s rally .
Just think what the price would be , if there was a legal limit to how many shorts can be applied by linking the count to the physicals for sale without all those synthetic hedges they created or allowing those EFP ’ s to London , the city of truth ?
June Gold ’ s @ @ @ @ @ @ @ of 19,205 fully paid for 100-ounce contracts waiting for receipts with this morning ’ s trading range between $ 1,747 and $ 1,732 with the last organized trade at $ 1,732.30 , down $ 4.60 from Fridays close and with a Volume so far at 147 .
This proves a reduction in count of 27,927 from Friday ’ s trade that had a completed trading range between $ 1,738.30 and $ 1,715.10 with the closing price at $ 1,736.90 with a total Volume of 1,406 .
What we are being led to believe @ @ @ @ @ @ @ must have been deliveries because the OI drop doesn ’ t equal Friday ’ s Volumes .
Which is why we feel the focus on the deliveries is paramount to understanding the game being played against the first money of mankind .
These numbers do not jive and it is fully meant to be that way !
Gold ’ s Overall Open Interest proves the drop in count is close to that of the delivery months plunge , as 23,254 Obligations jumped ship leaving a grand total of 487,654 Overnighters , as we @ @ @ @ @ @ @ .
So , where these trades that are not part of the Volume , part of a spread entry , exit , EFP ’ s , or real deliveries ?
This should be an interesting month as we see more reasons to be in physicals .
This weekend proved to be an eye opener for many as these organized riots continued after a few days of Fake News “ promoting ” racial tensions when there is a completely different story not being reported by those that claim to be reporting .
Derek Chauvin @ @ @ @ @ @ @ guards at the El Nuevo Rodeo club and restaurant in the city .
Why has this been ignored by the press ?
Moving forward , Q ’ s posts are telling those that view them , a story the press is complicit in .
In short , the media can not tell the truth because it would expose all the links that involve a past president and the media .
Including the relationships between Soros and ANTIFA .
Veritas Video also exposed these assholes with their own words as they express how much @ @ @ @ @ @ @ ’ t vote for their candidate .
ANTIFA was even attempting to use acid on a group that supports the legally elected president .
Now Trump has made ANTIFA a terrorist organization after Q posted this ; Antifa ‘ mapping ’ started a long time ago .
Imo , this was done in order to follow the money , and those that have those wonderful cell phones that had tracking hardware and software .
What part of “ We have the Servers ” do they not get ?
Maybe translated they might understand @ @ @ @ @ @ @ re finding out from Q , the money trail that the media refuses to follow because it most likely leads right into the heart of the news and the government connections , and news services hate to be the news .
Now we have “ Former Acting Inspector General for the U.S. Department of Homeland Security Indicted on Theft of Government Property and Scheme to Defraud the United States Government ” .
The rioters may have been bused in , that will be proven in time and not by the press whores .
@ @ @ @ @ @ @ s continue as more fiat is needed in order to keep a system that was built to fail basic math , continues towards its end .
Holding onto what is real is by far more valuable then a quarterly report , that most likely has a bunch of that AAA+ rated MBS in it , which is artificially being held higher as the price of metal is artificially kept lower .
Keep the faith , have a smile on the face and a prayer in the heart for all .
Hold on tight @ @ @ @ @ @ @ … .
More J.Johnson content is available with purchase of a JSMineset subscription .

submitted by J. Johnson via JS Mineset
Great and Wonderful Monday Morning Folks,
The first day of June shows Gold started off much higher before all that central calm was applied with the trade now at $1,742.90 down $8.80 and right beside that organized low at $1,741.50 with the high at $1,761. Silver is still in the green with its trade at $18.545, up 4 cents after hitting $18.95 with the London Low right here at $18.54. The US Dollar is still barely moving, proving the controllers are still in play, with the trade at 98.145 down 19.6 points after dipping down to 97.84 with the high up at 98.335. Of course, all this happened while we slept, before 5 am pst, the Comex open, the London close, and after AOC found out she wasn’t so popular with the legal and living after all. LOLOLOLOLOLOL
Golds trade under the Venezuelan Bolivar is still showing gains with the trade at 17,407.21 with the currency adding another 7.99 to the value with Silver seeing an additional 2.849 added on with the early morning registered price at 185.218 Bolivar. Argentina’s Peso now has Gold priced at 119,192.91 proving a gain of 106.33 Peso’s over the weekend with Silver now at 1,268.32 Peso’s showing a 20.07 A-Peso gain. The Turkish Lira seems to be pushing the real money lower with Gold losing 26.3 Lira with the price at 11,874.99. Silver however, is gaining under the Lira with the trade at 126.386 proving a gain of 1.648 T-Lira.
June Silver’s delivery demands dropped a bit with the count now at 126 fully paid for 5,000-ounce contracts waiting for receipts with a Volume of 5 up on the board and with a trading range between $18.815 and $18.75 with the last trade at the high, up 31 cents so far today. Friday’s final trading range inside the delivery month was between $17.885 and $17.865 and with the adjusted close way up above the day’s trades at $18.44 with a total Volume of 25 proving 239 contracts either got settled out in receipts or EFP’d under some sort of yearlong emergency plan no one else is allowed to know but those inside the trade or the governing body that approved it. The inter commodity spread is still being played with Silver’s Overall Open Interest gaining more shorts with the count now at 166,373 Overnighters proving a gain of 3,305 during Friday’s rally. Just think what the price would be, if there was a legal limit to how many shorts can be applied by linking the count to the physicals for sale without all those synthetic hedges they created or allowing those EFP’s to London, the city of truth?
June Gold’s Delivery Demands now show a demand count of 19,205 fully paid for 100-ounce contracts waiting for receipts with this morning’s trading range between $1,747 and $1,732 with the last organized trade at $1,732.30, down $4.60 from Fridays close and with a Volume so far at 147. This proves a reduction in count of 27,927 from Friday’s trade that had a completed trading range between $1,738.30 and $1,715.10 with the closing price at $1,736.90 with a total Volume of 1,406. What we are being led to believe here; is that drop in count must have been deliveries because the OI drop doesn’t equal Friday’s Volumes. Which is why we feel the focus on the deliveries is paramount to understanding the game being played against the first money of mankind. These numbers do not jive and it is fully meant to be that way! Gold’s Overall Open Interest proves the drop in count is close to that of the delivery months plunge, as 23,254 Obligations jumped ship leaving a grand total of 487,654 Overnighters, as we enter a major delivery month for Gold. So, where these trades that are not part of the Volume, part of a spread entry, exit, EFP’s, or real deliveries? This should be an interesting month as we see more reasons to be in physicals.
We are primarily funded by readers. Please subscribe and donate to support us!
This weekend proved to be an eye opener for many as these organized riots continued after a few days of Fake News “promoting” racial tensions when there is a completely different story not being reported by those that claim to be reporting. Derek Chauvin and George Floyd both worked as security guards at the El Nuevo Rodeo club and restaurant in the city. Why has this been ignored by the press?
Moving forward, Q’s posts are telling those that view them, a story the press is complicit in. In short, the media cannot tell the truth because it would expose all the links that involve a past president and the media. Including the relationships between Soros and ANTIFA. Veritas Video also exposed these assholes with their own words as they express how much they hate our country because we didn’t vote for their candidate. ANTIFA was even attempting to use acid on a group that supports the legally elected president. Now Trump has made ANTIFA a terrorist organization after Q posted this; Antifa ‘mapping’ started a long time ago. Imo, this was done in order to follow the money, and those that have those wonderful cell phones that had tracking hardware and software. What part of “We have the Servers” do they not get? Maybe translated they might understand it, Fully Bugged! We’re finding out from Q, the money trail that the media refuses to follow because it most likely leads right into the heart of the news and the government connections, and news services hate to be the news. Now we have “Former Acting Inspector General for the U.S. Department of Homeland Security Indicted on Theft of Government Property and Scheme to Defraud the United States Government”.
The rioters may have been bused in, that will be proven in time and not by the press whores. In the meantime, the misdirection’s continue as more fiat is needed in order to keep a system that was built to fail basic math, continues towards its end. Holding onto what is real is by far more valuable then a quarterly report, that most likely has a bunch of that AAA+ rated MBS in it, which is artificially being held higher as the price of metal is artificially kept lower. Keep the faith, have a smile on the face and a prayer in the heart for all. Hold on tight to the real, and as always ….
Stay Strong!
Jeremiah Johnson
More J.Johnson content is available with purchase of a JSMineset subscription.


investmentwatchblog--2020-06-02--Police Use Contact Tracing And Big Tech To Identify Protesters

Countless warnings about how law enforcement could use contact-tracing apps to monitor people have gone unheeded .
As BGR.com revealed police are using contact tracing to identify protester ’ s affiliations .
“ According to Minnesota Public Safety Commissioner John Harringon , officials there have been using what they describe , without going into much detail , as contact-tracing in order to build out a picture of protestor affiliations — a process that officials in the state say has led them to conclude that much of the protest activity there is being fueled by people from outside coming in.
” @ @ @ @ @ @ @ Tracing ” revealed how police are using contact tracing to identify and arrest protesters .
“ Minnesota Public Safety Commissioner John Harrington says they ’ ve begun contact tracing arrestees.
” Recently , 100 human rights groups warned that an Apple-Google contact tracing app could be used as a cover to identify activists and minorities .
So despite all assurances to the contrary , it appears that 100 human rights groups were right ; law enforcement can and will use contact tracing to identify protesters .
As NBC News noted , contact tracers @ @ @ @ @ @ @ .
Time exposed how the military ( National Guard ) uses a classified system called “ Secret Internet Protocol Router ” or SIPR to monitor protesters .
( To learn about Perspecta Inc. ’ s role click here & here . )
Big Tech ’ s hands are dirty with Federal money paying for new ways to monitor Americans .
A recent Business Insider article describes how police use Big Tech to monitor activists and protesters the moment they walk out their door .
Buzzfeed News warns , “ law enforcement has a @ @ @ @ @ @ @ be used to monitor and target protesters — including controversial facial recognition software Clearview AI , license plate readers , body cameras , and video analysis tools.
” Both of these articles reveal a frightening array of Big Tech surveillance devices being used by police nationwide .
Minneapolis police and the Minnesota Fusion Center are also using Clearview AI , BriefCam , Ring doorbell cameras , Axon police body cameras , ShotSpotter and license plate readers to create an intimate view into people ’ s lives .
BuzzFeed ’ s article also revealed @ @ @ @ @ @ @ software which uses video detection and analytics to identify people .
While both articles do a great job of revealing some of the ways law enforcement can monitor anyone , it really did not go into detail about how invasive Big Tech ’ s surveillance devices truly are .
Let ’ s say you use your smartphone for everything ; texts , phone calls , pictures , music , etc.
, if you also use Alexa or a NEST thermostat or any smart device in your home , these devices collect , store @ @ @ @ @ @ @ which police can use to identify a person .
Police can also identify people who use a Tablet or laptop , because like a phone they have an IP and MAC address .
If you use any of these devices to make online purchases , police can ask those companies to provide details of what you bought and when .
Anytime you use a credit/debit or customer rewards card , someone is compiling a database of everything you purchased .
Let ’ s say you drive or take public transit , police can @ @ @ @ @ @ @ facial recognition to identify where you work or which bus or train stops you use .
If you drive or take an Uber or Lyft , chances are your personal information is being recorded and used to build a massive database of your comings and goings .
From the moment you step outside of your home , your neighbor ’ s Ring doorbell or Flock cameras have identified you , your family and your vehicle .
And if they are any social distance snitches in your neighborhood , they have recorded you and @ @ @ @ @ @ @ or NextDoor .
Thanks to Big Tech , a person ’ s everyday life is no longer private .
Now everything we do is being recorded in real-time .
Things like what and where you eat , who your friends and family members are , who your family doctor is or where you worship are all available to law enforcement .
Despite what Big tech , politicians and law enforcement say , AI and smart devices are being used to identify activists and protesters .

by mapi
Countless warnings about how law enforcement could use contact-tracing apps to monitor people have gone unheeded.
As BGR.com revealed police are using contact tracing to identify protester’s affiliations.
“According to Minnesota Public Safety Commissioner John Harringon, officials there have been using what they describe, without going into much detail, as contact-tracing in order to build out a picture of protestor affiliations — a process that officials in the state say has led them to conclude that much of the protest activity there is being fueled by people from outside coming in.”
A Twitter feed titled “Minnesota Contact Tracing” revealed how police are using contact tracing to identify and arrest protesters. “Minnesota Public Safety Commissioner John Harrington says they’ve begun contact tracing arrestees.”
Recently, 100 human rights groups warned that an Apple-Google contact tracing app could be used as a cover to identify activists and minorities.
“An increase in state digital surveillance powers, such as obtaining access to mobile phone location data, threatens privacy, freedom of expression and freedom of association, in ways that could violate rights and degrade trust in public authorities—undermining the effectiveness of any public health response. Such measures also pose a risk of discrimination and may disproportionately harm already marginalized communities.”
So despite all assurances to the contrary, it appears that 100 human rights groups were right; law enforcement can and will use contact tracing to identify protesters.
As NBC News noted, contact tracers also use geofencing to help identify protesters.
“Geofencing” captures the social media posts of people entering a specific area. The technology locates any cellphones that cross into the area by locking onto their geolocation systems, and then records social media posts and sometimes other data from the phones.”
Time exposed how the military (National Guard) uses a classified system called “Secret Internet Protocol Router” or SIPR to monitor protesters. (To learn about Perspecta Inc.’s role click here & here.)
Big Tech’s hands are dirty with Federal money paying for new ways to monitor Americans.
A recent Business Insider article describes how police use Big Tech to monitor activists and protesters the moment they walk out their door.
“Law enforcement agencies have made full use of high-tech surveillance tools as protests sweep the country following the death of George Floyd. A predator drone operated by Customs and Border Patrol circled above protesters in Minneapolis.”
Buzzfeed News warns, “law enforcement has a wide breadth of surveillance technologies that could be used to monitor and target protesters — including controversial facial recognition software Clearview AI, license plate readers, body cameras, and video analysis tools.”
Both of these articles reveal a frightening array of Big Tech surveillance devices being used by police nationwide.
We are primarily funded by readers. Please subscribe and donate to support us!
Minneapolis police and the Minnesota Fusion Center are also using Clearview AI, BriefCam, Ring doorbell cameras, Axon police body cameras, ShotSpotter and license plate readers to create an intimate view into people’s lives.
BuzzFeed’s article also revealed how police use Arxys “Milestone” software which uses video detection and analytics to identify people.
“The Minneapolis Police Department said in a surveillance white paper that it uses Arxys [Milestone] software — a video management tool that claims to offer “video motion detection” and “video analytics” — to analyze CCTV footage.”
While both articles do a great job of revealing some of the ways law enforcement can monitor anyone, it really did not go into detail about how invasive Big Tech’s surveillance devices truly are.
Let’s say you use your smartphone for everything; texts, phone calls, pictures, music, etc., if you also use Alexa or a NEST thermostat or any smart device in your home, these devices collect, store and transmit all that personal data, which police can use to identify a person. Police can also identify people who use a Tablet or laptop, because like a phone they have an IP and MAC address.
If you use any of these devices to make online purchases, police can ask those companies to provide details of what you bought and when. Anytime you use a credit/debit or customer rewards card, someone is compiling a database of everything you purchased.
Let’s say you drive or take public transit, police can track your vehicle and they can use facial recognition to identify where you work or which bus or train stops you use.
If you drive or take an Uber or Lyft, chances are your personal information is being recorded and used to build a massive database of your comings and goings. From the moment you step outside of your home, your neighbor’s Ring doorbell or Flock cameras have identified you, your family and your vehicle.
And if they are any social distance snitches in your neighborhood, they have recorded you and reported you to police via Ring Neighbors or NextDoor.
Thanks to Big Tech, a person’s everyday life is no longer private. Now everything we do is being recorded in real-time. Things like what and where you eat, who your friends and family members are, who your family doctor is or where you worship are all available to law enforcement.
Despite what Big tech, politicians and law enforcement say, AI and smart devices are being used to identify activists and protesters.


investmentwatchblog--2020-06-02--Antifa, leftists are now burning homes with children in them & preventing firefighters from rescue

The fire chief is describing how these leftists are setting residences on fire : The chief of the Richmond , Virginia , police department told reporters Sunday that Black Lives Matter and antifa rioters set fire to a multi-family home with a child inside while blocking access for firefighters to get through to save the child .
Richmond Police Chief William Smith broke down while speaking about the horrible burning deaths of a children after their occupied building was torched by rioters .
The chief of the Richmond , Virginia , police department said Sunday that rioters set fire to @ @ @ @ @ @ @ while blocking access for firefighters to get through to save the child .
Police chief breaks down after fire crews blocked from burning Richmond home with child inside Richmond Police Chief Will Smith told WTVR , “ We had to force our way to make a clear path for the fire department .
Protestors intercepted that fire apparatus several blocks away with vehicles and blocked that fire department ’ s access to the structure fire .
Inside that home was a child.
” Anyone on here showing support for Antifa , deflecting from @ @ @ @ @ @ @ s existence will get the ban .

The fire chief is describing how these leftists are setting residences on fire:
www.thegatewaypundit.com/2020/06/pure-evil-police-chief-breaks-describing-richmond-leftist-rioters-torched-home-children-inside-blocked-fire-department-video/ The chief of the Richmond, Virginia, police department told reporters Sunday that Black Lives Matter and antifa rioters set fire to a multi-family home with a child inside while blocking access for firefighters to get through to save the child. Richmond Police Chief William Smith broke down while speaking about the horrible burning deaths of a children after their occupied building was torched by rioters. The chief of the Richmond, Virginia, police department said Sunday that rioters set fire to a multi-family home with a child inside while blocking access for firefighters to get through to save the child.
Police chief breaks down after fire crews blocked from burning Richmond home with child inside
Child inside home set on fire by rioters
Richmond Police Chief Will Smith told WTVR, “We had to force our way to make a clear path for the fire department. Protestors intercepted that fire apparatus several blocks away with vehicles and blocked that fire department’s access to the structure fire. Inside that home was a child.”
We are primarily funded by readers. Please subscribe and donate to support us!
www.firefighternation.com/2020/06/01/richmond-police-officers-rescue-child-in-fire-rioters-blocked-firefighters/
Anyone on here showing support for Antifa, deflecting from these leftist terrorists and/or denying Antifa’s existence will get the ban.
h/t ElleMira


investmentwatchblog--2020-06-02--Look familiar? Mid-February:  “Stocks climb amid virus outbreak” vs Today:  “Stocks climb amid prote

Look familiar? Mid-February:  “Stocks climb amid virus outbreak” vs Today:  “Stocks climb amid protests”

-US & Iran on the brink of a war -Virus outbreak -Recession starts -Oil prices go negative -40M people unemployed @ @ @ @ @ borrows record amounts -US & China relations heat up -Riots everywhere Average market cap to @ @ @ @ @ and recessions bottom out : .47 Tremendous opportunity on the short side as we take @ @ @ @ @ 2018 and 2020 .
Too few investors are positioned for it .
pic.twitter.com/Z0QeNlLlJQ

And stocks are record overvalued.
-US & Iran on the brink of a war -Virus outbreak -Recession starts -Oil prices go negative -40M people unemployed -Fed prints record amounts -Government borrows record amounts -US & China relations heat up -Riots everywhere
Valuation mania still unbroken.
Average market cap to GDP ratio when bear markets and recessions bottom out: .47
67% lower than today.
Tremendous opportunity on the short side as we take out the fake lows of 2018 and 2020.
Too few investors are positioned for it. pic.twitter.com/Z0QeNlLlJQ
— Kevin C. Smith, CFA (@crescatkevin) May 31, 2020


investmentwatchblog--2020-06-02--The Monetary Death Spiral Is Accelerating

I provide an update to my “ Monetary Death Spiral ” thesis , which I believe will be significantly accelerated @ @ @ @ @ Monetary easing leads to buildups of unproductive debt and to lower investment , expands inequality @ @ @ @ @ and ultimately leads to negative interest rates .
The endgame of the MDS is not @ @ @ @ @ How to invest for a deflationary , zero or negative interest rate environment .

Summary
I provide an update to my “Monetary Death Spiral” thesis, which I believe will be significantly accelerated by the coronavirus pandemic.
Monetary easing leads to buildups of unproductive debt and to lower investment, expands inequality, dampens economic growth, and ultimately leads to negative interest rates.
We are primarily funded by readers. Please subscribe and donate to support us!
The endgame of the MDS is not what most investors think.
How to invest for a deflationary, zero or negative interest rate environment.


investmentwatchblog--2020-06-02--Supreme Court is Once Again Inspiring Civil War

QUESTION : Mr. Armstrong , I find it really amazing how you have forecast politics , markets , war , disease , and even said in 2014 race riots would return .
I understand it is not you personally .
What do you see from here with these riots even taking place in London ?
ANSWER : Civil Unrest has been taking place for a very long time .
If you step back and correlate it to the economy , you will notice that it rises when people start to struggle .
The race riots right now would NOT takes @ @ @ @ @ @ @ dramatically to where there are officially 40 million people who have lost their jobs .
There have been plenty of deaths inflected by police since 2014 .
This would have normally peaked out by 2018 , but the economic conditions show this cycle will continue into 2027 if the Supreme Court does not overrule its previous decisions .
On May 25 , Minneapolis , Minnesota police officers arrested George Floyd , a 46-year-old black man , after a deli employee called 911 , accusing him of buying cigarettes with a counterfeit $ 20 @ @ @ @ @ @ @ squad car arrived at the scene , Mr. Floyd was unconscious and pinned beneath three police officers , showing no signs of life .
The death of George Floyd at the hands of Minneapolis police has re-energized a national debate over misconduct by law enforcement officials that the Supreme Court may be poised to enter .
Both the left and the right finally agree on one thing – qualified immunity for government officials is unsupported by the Constitution and was even one of the express complaints in the Declaration of Independence : For @ @ @ @ @ @ @ , from punishment for any Murders which they should commit on the Inhabitants of these States : There can be no equal protect of the law as long as an government employee is above the law .
Both prosecutors and police should be held to the same standards as any citizen .
Until that happens , then the Supreme Court has placed the nation is jeopardy of civil war .
There are plenty of good police , but they will be gunned down because of the abuses of the bad ones .
Protecting @ @ @ @ @ @ @ others in the same field and the nation itself .
To understand Shakespeare ’ s famous line “ the first thing we do let ’ s kill all the lawyers ” must be understood in its context .
Private citizens were not allowed to hire lawyers – only the king .
So this saying comes from a tax rebellion where the “ lawyers ” were the king ’ s prosecutors who were seizing people ’ s property ( farms and houses ) because they were unable to pay his taxes .
Prosecutors are @ @ @ @ @ @ @ hold that position .
They are human just like police and have knowing prosecuted people wrongfully for political purposes .
If the Supreme Court does not ABOLISH all immunity for prosecutors and police , they will lead the country into civil war just as the Dread Scott decisions did in 1860 holding black were not covered by the Constitution in a stupid attempt to defuse the rising tension between North and South .
While looting is wrong , if the underlying legality is not changed , this is going to get far worse @

by Martin Armstrong
QUESTION: Mr. Armstrong, I find it really amazing how you have forecast politics, markets, war, disease, and even said in 2014 race riots would return. I understand it is not you personally. What do you see from here with these riots even taking place in London?
PH
ANSWER: Civil Unrest has been taking place for a very long time. If you step back and correlate it to the economy, you will notice that it rises when people start to struggle. The race riots right now would NOT takes place has we also accelerated the unemployment dramatically to where there are officially 40 million people who have lost their jobs. There have been plenty of deaths inflected by police since 2014. This would have normally peaked out by 2018, but the economic conditions show this cycle will continue into 2027 if the Supreme Court does not overrule its previous decisions.
On May 25, Minneapolis, Minnesota police officers arrested George Floyd, a 46-year-old black man, after a deli employee called 911, accusing him of buying cigarettes with a counterfeit $20 bill. Seventeen minutes after the first squad car arrived at the scene, Mr. Floyd was unconscious and pinned beneath three police officers, showing no signs of life.
The death of George Floyd at the hands of Minneapolis police has re-energized a national debate over misconduct by law enforcement officials that the Supreme Court may be poised to enter. Both the left and the right finally agree on one thing – qualified immunity for government officials is unsupported by the Constitution and was even one of the express complaints in the Declaration of Independence:
We are primarily funded by readers. Please subscribe and donate to support us!
For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:
There can be no equal protect of the law as long as an government employee is above the law. Both prosecutors and police should be held to the same standards as any citizen. Until that happens, then the Supreme Court has placed the nation is jeopardy of civil war. There are plenty of good police, but they will be gunned down because of the abuses of the bad ones. Protecting bad prosecutors and police puts at risk others in the same field and the nation itself.
To understand Shakespeare’s famous line “the first thing we do let’s kill all the lawyers” must be understood in its context. Private citizens were not allowed to hire lawyers – only the king. So this saying comes from a tax rebellion where the “lawyers” were the king’s prosecutors who were seizing people’s property (farms and houses) because they were unable to pay his taxes. Prosecutors are by no means trustworthy simply because they hold that position. They are human just like police and have knowing prosecuted people wrongfully for political purposes.
If the Supreme Court does not ABOLISH all immunity for prosecutors and police, they will lead the country into civil war just as the Dread Scott decisions did in 1860 holding black were not covered by the Constitution in a stupid attempt to defuse the rising tension between North and South.
While looting is wrong, if the underlying legality is not changed, this is going to get far worse.


investmentwatchblog--2020-06-02--APPLE STORE LOOTERS CAN’T USE STOLEN GADGETS … Safeguards Already In Place

Folks who looted the Apple Store at The Grove are in for a rude awakening … they won ’ t @ @ @ @ @ pawn the stolen gadgets , thanks to some tech foresight and amateur thievery .
Here @ @ @ @ @ while looters probably thought they were getting away with grabbing an expensive toy off the @ @ @ @ @ Store , they basically ended up with paperweights .
Our sources tell us … the @ @ @ @ @ the Apple Store are demos , and they come equipped with special programs that prevent @ @ @ @ @ to factory settings , rendering them almost useless .

Folks who looted the Apple Store at The Grove are in for a rude awakening … they won’t be able to use or pawn the stolen gadgets, thanks to some tech foresight and amateur thievery.
Here’s the deal … while looters probably thought they were getting away with grabbing an expensive toy off the showroom shelves at the Apple Store, they basically ended up with paperweights.
We are primarily funded by readers. Please subscribe and donate to support us!
Our sources tell us … the phones and laptops stolen from the Apple Store are demos, and they come equipped with special programs that prevent the products from being reset to factory settings, rendering them almost useless.
www.tmz.com/2020/06/02/apple-store-looters-cant-use-pawn-stolen-gadgets-safeguards-the-grove-los-angeles/


investmentwatchblog--2020-06-02--Tucker Carlson’s Best & Most Important Monologue Ever!

People will not forgive weakness .
That ’ s not a partisan point , it ’ s human nature .
@ @ @ @

People will not forgive weakness. That’s not a partisan point, it’s human nature. #FoxNews #Tucker
We are primarily funded by readers. Please subscribe and donate to support us!


investmentwatchblog--2020-06-02--The Legacy Media is Partly to Blame for the Riots

IT ’ S UNDERSTANDABLE THAT ANDREA MITCHELL IS PROTECTIVE OF MSNBC ’ S CORE AUDIENCE .
MSNBC ’ s Mitchell @ @ @ @ @ Picking ’ Trump Just Going After His ‘ Political Enemies.
’ Related : Antifa , @ @ @ @ @ Forces to Push the “ Right Wing Extremists Are Behind the Riots ” False Flag @ @ @

Don Lemon just said the President "declared war on Americans" and we're "teetering on a dictatorship."
CNN is trying to incite violence, hoping people storm the White House.
CNN is enemy propaganda.
CNN sides with the Antifa terrorists.
— Mark Dice (@MarkDice) June 1, 2020


investmentwatchblog--2020-06-02--June 2nd Black Out Tuesday Aka Hillary Goes To Court…. Obamagate Hearings Start This Week. Total coi

June 2nd Black Out Tuesday Aka Hillary Goes To Court…. Obamagate Hearings Start This Week. Total coincidence…

Judiciary Chairman Lindsey Graham , R-S.C. , also plans to begin hearings this week regarding the FBI probe into links @ @ @ @ @ officials , or as the president calls it , “ Obamagate.
” I read Obama @ @ @ @ @ while he did say , “ let ’ s not excuse violence , or rationalize @ @ @ @ @ it , ” at no point did he actually condemn it .

by NPCNN
Obamagate hearings start this week. Total coincidence….
Judiciary Chairman Lindsey Graham, R-S.C., also plans to begin hearings this week regarding the FBI probe into links between Trump associates and Russian officials, or as the president calls it, “Obamagate.”
We are primarily funded by readers. Please subscribe and donate to support us!
REUTERS: Former U.S. President Obama praises protests, condemns violence.
I read Obama’s essay, and while he did say, “let’s not excuse violence, or rationalize it, or participate in it,” at no point did he actually condemn it.


investmentwatchblog--2020-06-02--The Economic Insanity Will Only Get Crazier…?!?

George Gammon interviewed by Jason Burack of Wall St For Main St During this 120+ minute interview , Jason and @ @ @ @ @ the Fed has created and how any type of deflation , especially in asset prices @ @ @ @ @ be allowed .
George has some very interesting insights he shares about the global macro @ @ @ @ @ Fed and gold .
To wrap up the interview , Jason asks George what lessons @ @ @ @ @ so many successful investors , George ’ s insights into the upcoming problems in the @ @ @ @ @ market and George even has some good advice for current or potential entrepreneurs .
Commit @ @ @ @ @ our hard work creating high level , thought provoking content that includes interviews with top @ @ @ @ @ videos about investing and the economy www.patreon.com/wallstformainst

George Gammon interviewed by Jason Burack of Wall St For Main St
During this 120+ minute interview, Jason and George discuss the moral hazard the Fed has created and how any type of deflation, especially in asset prices, seems to no longer be allowed.
George has some very interesting insights he shares about the global macro situation, inflation, the Fed and gold.
We are primarily funded by readers. Please subscribe and donate to support us!
To wrap up the interview, Jason asks George what lessons he has learned from interviewing so many successful investors, George’s insights into the upcoming problems in the commercial and residential real estate market and George even has some good advice for current or potential entrepreneurs.
Commit to tipping us monthly for our hard work creating high level, thought provoking content that includes interviews with top experts, analysis and short videos about investing and the economy www.patreon.com/wallstformainst


investmentwatchblog--2020-06-02--Technically Speaking: Too Fast, Too Furious As Fed Liquidity Slows

Too fast , too furious .
That describes the April/May advance following the fastest 30 % decline in history .
The reason was not an improvement in fundamentals , but a generation of investors front running Fed liquidity flows .
Such should not be surprising as this is what was intended by the Federal Reserve from the outset .
The Fed delved into “ classical conditioning ” to specifically obtain the outcome they wanted .
Classical conditioning ( also known as Pavlovian or respondent conditioning ) refers to the learning procedure where a potent stimulus ( e.g.
, food ) @ @ @ @ @ @ @ ( e.g .
a bell ) .
Pavlov discovered that when introducing a neutral stimulus , the dogs would begin to salivate in anticipation of the potent stimulus , even though it was not currently present .
This learning process results from the psychological “ pairing ” of the stimuli .
As noted in yesterday ’ s post , in 2010 , then-Fed Chairman Ben Bernanke introduced the “ neutral stimulus.
” By adding a “ third mandate ” to the Fed ’ s responsibilities , the creation of the “ wealth effect @ @ @ @ @ @ @ .
Importantly , for conditioning to work , the “ neutral stimulus , ” when introduced , must be followed by the “ potent stimulus , ” to complete the “ pairing.
” For investors , the introduction of each round of “ Quantitative Easing , “ the “ neutral stimulus , ” the rise of the stock market was the “ potent stimulus.
” Given the massive interventions into markets by the Federal Reserve , as Bernanke noted , “ investors anticipated the additional action ” and jumped back into the stock @ @ @ @ @ @ @ fostering a massive lift to equity prices and a corresponding lift in consumers ’ confidence .
Unfortunately , there was relatively little translation into wages , full-time employment , or corporate profits after tax , which ultimately triggered very little economic growth .
Given that asset prices should be a reflection of economic and revenue growth , the deviation is evidence of a more systemic problem .
It also suggests monetary policy may be much less effective in stimulating economic growth going forward .
If such is the case , investors may be @ @ @ @ @ @ @ to materialize .
For now , however , we are still in a bull market .
However , this was the most important point .
On a technical basis , the market remains in a bull market .
However , the supports of the bull market over the last decade , and the last 2-months , continue to erode .
While the Fed ’ s liquidity interventions did lure investors back into the market , those flows are quietly fading .
As noted recently by Zerohedge : Retail investors may not have caught @ @ @ @ @ @ @ , given the depth of the current economic crisis , reversions in earnings , and the reality there will not be a “ V-shaped ” recovery , the risk of a market failure has risen .
Such is particularly the case as the market rally to date has been defined by the five largest stocks in the index .
Via Goldman Sachs : Such also becomes problematic when corporations are issuing debt at a record pace to supplant liquidity needs to offset the economic crisis rather than repurchasing shares .
It ’ s @ @ @ @ @ @ @ , buybacks have accounted for almost 100 % of net stock buying .
Besides the supportive underpinnings , the technical backdrop is also conducive for corrective action in the short-term .
As discussed this past weekend : Such doesn ’ t mean a “ bear market ” is about to start .
It does suggest , at a minimum , a correction back to support is likely .
Lastly , investors remain overly optimistic that corporate earnings and profits , will catch up with elevated asset prices .
Historically , such has never @ @ @ @ @ @ @ ultimately “ caught down ” to fundamental realities .
There is more than a casual relationship between the cumulative growth of the financial market to corporate profits .
While deviations can last for a while , eventually , those gaps are filled .
As my colleague Victor Adair at Polar Trading : I agree , and while such may be the case for the moment , markets like this have a nasty habit of delivering unpleasant surprises .
Currently , our portfolios are long-biased , meaning we have more equity-risk in our allocation @ @ @ @ @ @ @ the market ’ s advance , and the data points set out above , we only have three choices in how we manage our client portfolios currently : • Do Nothing – if the markets correct , we lose some of our gains and have to wait for the portfolio to recover .
• Take Profits – as we have done with extremely overvalued assets in the past .
We can take profits , raise cash , and reduce our equity exposure in advance of a correction .
Such actions mitigate the damage @ @ @ @ @ @ @ to repurchase positions , or add new ones , to resize the portfolio in the future .
• Hedge – adding a position to the portfolio that is the “ inverse ” of the market .
( the position goes up in value as the market declines . )
This action allows us to keep our existing positions intact , and by “ shorting against the portfolio , ” allows us to effectively reduce our equity risk ( and related capital destruction ) during a market correction .
Which Do We Choose Option @ @ @ @ @ @ @ option .
Riding the market up and down , and spending time “ getting back to even , ” doesn ’ t make much sense .
Option 2 – is something that we took advantage of twice this year already .
We took profits at the peak of the market in January and February before both the decline .
We also added new exposures in April as the market recovered .
So , taking profits again in some positions would lead to a gross underweighting in certain portfolio allocation areas .
Option 3 @ @ @ @ @ @ @ of the rally .
With the Fed engaged in pumping liquidity into the markets , the most opportunistic method to hedge risk is “ short the market ” against our long positions .
As noted this weekend , the risk/reward ranges are apparent at this point .
• -2.8 % to the 200-dma vs. +1.7 % to the March peak .
Negative • -9.2 % to the 50-dma vs. 5.6 % to February gap down .
Negative • -10.5 % to the consolidation support vs. +10.1 % to all-time highs .
Neutral • @ @ @ @ @ @ @ +10.1 % to all-time highs .
Negative • -27 % to March 23rd lows vs. +10.1 % to all-time highs .
Negative When we discuss hedging against risk , invariably readers mistakenly think we have sold the entirety of our portfolio and are betting on a “ market crash.
” Never is this the case .
By taking prudent actions in the portfolio management process , we can reduce capital risk , and potentially add some incremental “ alpha ” to portfolios if a correction occurs .
That is how we manage risk @ @ @ @ @ @ @ manage risk or ignore it .
The only problem is that ignoring risk has a long history of not working out very well .

by Lance Roberts
Too fast, too furious. That describes the April/May advance following the fastest 30% decline in history. The reason was not an improvement in fundamentals, but a generation of investors front running Fed liquidity flows.
Such should not be surprising as this is what was intended by the Federal Reserve from the outset. The Fed delved into “classical conditioning” to specifically obtain the outcome they wanted.
Classical conditioning (also known as Pavlovian or respondent conditioning) refers to the learning procedure where a potent stimulus (e.g., food) is paired with a previously neutral stimulus (e.g. a bell). Pavlov discovered that when introducing a neutral stimulus, the dogs would begin to salivate in anticipation of the potent stimulus, even though it was not currently present. This learning process results from the psychological “pairing” of the stimuli.
As noted in yesterday’s post, in 2010, then-Fed Chairman Ben Bernanke introduced the “neutral stimulus.” By adding a “third mandate” to the Fed’s responsibilities, the creation of the “wealth effect,” the neutral stimulus was achieved.
“This approach eased financial conditions in the past and, so far, looks to be effective again. Stock prices rose, and long-term interest rates fell when investors began to anticipate this additional action.” – Ben Bernanke, Washington Post Op-Ed, November 2010.
Importantly, for conditioning to work, the “neutral stimulus,” when introduced, must be followed by the “potent stimulus,” to complete the “pairing.” For investors, the introduction of each round of “Quantitative Easing,“ the “neutral stimulus,” the rise of the stock market was the “potent stimulus.”
Fed Liquidity Didn’t Work As Intended
Given the massive interventions into markets by the Federal Reserve, as Bernanke noted, “investors anticipated the additional action” and jumped back into the stock market.
Ring the bell. Investors salivate with anticipation.
The Fed was successful in fostering a massive lift to equity prices and a corresponding lift in consumers’ confidence. Unfortunately, there was relatively little translation into wages, full-time employment, or corporate profits after tax, which ultimately triggered very little economic growth.
Given that asset prices should be a reflection of economic and revenue growth, the deviation is evidence of a more systemic problem.
It also suggests monetary policy may be much less effective in stimulating economic growth going forward. If such is the case, investors may be betting on a future outcome that fails to materialize.
For now, however, we are still in a bull market.
Still A Bull Market
Let’s review “Was March A Bear Market?”
“Such brings up an interesting question. After a decade-long bull market, which stretched prices to extremes above long-term trends, is the 20% measure still valid? To answer that question, let’s clarify the premise. A bull market is when the price of the market is trending higher over a long-term period.
is when the price of the market is trending higher over a A bear market is when the previous advance breaks, and prices begin to trend lower.
“This distinction is important. “Corrections” generally occur over very short time frames, do not break the prevailing trend in prices, and are quickly resolved by markets reversing to new highs.
“Bear Markets” tend to be long-term affairs where prices grind sideways or lower over several months as valuations are reverted.
However, this was the most important point.
I have noted the market may be in the process of a topping pattern. The 2018 and 2020 peaks are currently forming the “left shoulder” and “head” of the topping process. Such would also suggest the “neckline” is the running bull trend from the 2009 lows. A market peak without setting a new high that violates the bull trend line would define a “bear market.”
Fed Liquidity Is Slowing
On a technical basis, the market remains in a bull market. However, the supports of the bull market over the last decade, and the last 2-months, continue to erode.
While the Fed’s liquidity interventions did lure investors back into the market, those flows are quietly fading. As noted recently by Zerohedge:
“From an initial $75 billion per day when the Fed announced the launch of Unlimited QE in mid-March, the US central bank first reduced its daily buying to $60 billion per day, then announced a series of consecutive ‘tapers.’ After again shrinking the average daily POMO to $5 billion last week, in its latest just published schedule, the Fed unveiled that in the coming week it would purchase ‘only’ $4.5BN per day, or a total of $22.5BN for the week.”
Retail investors may not have caught onto this fact just yet.
However, given the depth of the current economic crisis, reversions in earnings, and the reality there will not be a “V-shaped” recovery, the risk of a market failure has risen.
Market Support Deterioration
Such is particularly the case as the market rally to date has been defined by the five largest stocks in the index. Via Goldman Sachs:
“Broader participation in the rally will be needed for the aggregate S&P 500 index to climb meaningfully higher. The modest upside for the largest stocks means the remaining 495 constituents will need to rally to lift the aggregate index.”
Such also becomes problematic when corporations are issuing debt at a record pace to supplant liquidity needs to offset the economic crisis rather than repurchasing shares. It’s worth remembering that over the last decade, buybacks have accounted for almost 100% of net stock buying.
We are primarily funded by readers. Please subscribe and donate to support us!
Overbought & Extended
Besides the supportive underpinnings, the technical backdrop is also conducive for corrective action in the short-term. As discussed this past weekend:
“The number of stocks above the 50-dma is pushing record levels. Historically, whenever all of the overbought/sold indicators have aligned, along with the vast majority of stocks being above the 50-dma, corrections were close.”
Such doesn’t mean a “bear market” is about to start. It does suggest, at a minimum, a correction back to support is likely.
Overly Optimistic
Lastly, investors remain overly optimistic that corporate earnings and profits, will catch up with elevated asset prices. Historically, such has never been the case, and prices have ultimately “caught down” to fundamental realities.
There is more than a casual relationship between the cumulative growth of the financial market to corporate profits. While deviations can last for a while, eventually, those gaps are filled.
As my colleague Victor Adair at Polar Trading:
“The growing divergence between the ‘stock market’ and the economy the past couple of months might be a warning flag that Mr. Market is too exuberant. The Presidential election is just over 5-months away with polls showing that Biden may be the next President. The U.S./China tensions have been escalating, and the virus’s first wave continues to spread around the globe. However, the ‘stock market’ continues to be pulled higher by a handful of ‘Megacaps.’ The late Friday rally after Trump’s ‘punish China’ speech shows ‘animal spirits’ are alive and well!”
I agree, and while such may be the case for the moment, markets like this have a nasty habit of delivering unpleasant surprises.
Why We Hedge
This is why we hedge. Currently, our portfolios are long-biased, meaning we have more equity-risk in our allocation than fixed income and cash. Given the market’s advance, and the data points set out above, we only have three choices in how we manage our client portfolios currently: Do Nothing – if the markets correct, we lose some of our gains and have to wait for the portfolio to recover. Take Profits – as we have done with extremely overvalued assets in the past. We can take profits, raise cash, and reduce our equity exposure in advance of a correction. Such actions mitigate the damage of the decline. We will have to repurchase positions, or add new ones, to resize the portfolio in the future. Hedge – adding a position to the portfolio that is the “inverse” of the market. (the position goes up in value as the market declines.) This action allows us to keep our existing positions intact, and by “shorting against the portfolio,” allows us to effectively reduce our equity risk (and related capital destruction) during a market correction. Which Do We Choose Option 1 – is never really a good option. Riding the market up and down, and spending time “getting back to even,” doesn’t make much sense. Option 2 – is something that we took advantage of twice this year already. We took profits at the peak of the market in January and February before both the decline. We also added new exposures in April as the market recovered. So, taking profits again in some positions would lead to a gross underweighting in certain portfolio allocation areas. Option 3 is the most optimal at this stage of the rally. With the Fed engaged in pumping liquidity into the markets, the most opportunistic method to hedge risk is “short the market” against our long positions. As noted this weekend, the risk/reward ranges are apparent at this point. -2.8% to the 200-dma vs. +1.7% to the March peak. Negative
-9.2% to the 50-dma vs. 5.6% to February gap down. Negative
-10.5% to the consolidation support vs. +10.1% to all-time highs. Neutral
-19.7% to April 1st lows vs. +10.1% to all-time highs. Negative
-27% to March 23rd lows vs. +10.1% to all-time highs. Negative
When we discuss hedging against risk, invariably readers mistakenly think we have sold the entirety of our portfolio and are betting on a “market crash.”
Never is this the case.
By taking prudent actions in the portfolio management process, we can reduce capital risk, and potentially add some incremental “alpha” to portfolios if a correction occurs.
That is how we manage risk.
You have a choice to either manage risk or ignore it.
The only problem is that ignoring risk has a long history of not working out very well.