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In Memoriam of Bobby Black

Rest in Peace Yesterday at 10:50 a.m. Central Time, Bobby Black passed away after a rapid, devastating bout with cancer. From feeling fine just two months ago until diagnosis just last week, he lost over 50 pounds in just a few weeks, decimating his body leaving him as you see in the photo above, until he finally was called home to heaven to be with his late son who he had lost just a few cruel years ago. For those of you who did not know Bobby, let me fill you…

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Today the Democrats Went Full Retard

by John Galt September 24, 2019 20:30 ET Nancy Pelosi and that group of lunatics known as the Democratic Party made the number one mistake in politics today. Here’s the video exemplifying their ignorance of history, with a lesson from Robert Downey, Jr.: Never go full retard. But they did. By attempting to impeach President Trump they have all but guaranteed that Biden will drop out of the race because his son’s extortion, er, overpaid for doing nothing racket will be exposed. Warren might also which means some radical of the…


And so it Begins: USDA Staff Withdrawn After Unidentified Threats During Farm Tour

by John Galt August 21, 2019 20:00 ET The next downturn will NOT be a repeat of 2007 to 2009. That is a guarantee. While the U.S. experienced isolated incidents of people being served eviction or foreclosure notices offering up armed resistance to law enforcement, such as what happened in Missouri last week, it has been all quiet on the agricultural front until today. From the Grand Folks Herald this afternoon: Farm tensions escalate as USDA staffer is threatened in Midwest The so-called strong rural supporters of President Trump may have…


First Ghost Cities in China, Now Ghost Trains to the EU

by John Galt August 20, 2019 22:30 ET The first articles and recent ones about the infamous Chinese ghost cities appeared to support conjecture about China building cities just for the sake of building them to keep people employed with their excess foreign reserves. Interestingly enough in tonight’s edition of the South China Morning Post appears this story: China’s belt and road cargo to Europe under scrutiny as operator admits to moving empty containers Within the article the report discusses that one in six rail containers are shipped empty from Chinese…


The 2007 Style Credit Downgrades Have Begun

by John Galt August 18, 2019 22:30 ET The nightmare has returned. Despite the fact that it is “different this time” as housing is not the central reason for our economic issues, the story sounds eerily familiar. First and foremost this story from the Nikkei Asian Review which dropped earlier today: Credit downgrades accelerate on all sides in US-China trade war How bad is it per the article? Here is a brutal excerpt: Credit rating agencies have downgraded listed companies worldwide at rarely seen levels this year, underscoring the risks to the…


Trump’s August Stock Market Fake Out Bounce

by John Galt August 18, 2019 22:00 ET President Donald Regalus Postulus Magnanimous Renaldo Trumpus hereby declares that while the Congress is in recess, the American Stock Markets shall no longer be allowed wild swings or dramatic declines until after September 5, 2019. Or something like that. As one of my favorite economists said this past Friday: The White House is now delaying the tariffs and removing some items. Did some acronym called the SPX cause someone to blink?— David Rosenberg (@EconguyRosie) August 13, 2019 Ummm, yeah!!!!! So what has happened…


A Veiled Threat by China to Blockade Taiwan

by John Galt August 18, 2019 21:35 ET Just when one thinks are beginning to calm down between the United States and China, the U.S. decides to sell upgraded F-16 fighter planes to Taiwan. This brings back memories of something the Chinese military leadership hinted at and although it does take a bit of searching but fortunately RT has not been totally eradicated from the internet yet: Then today in The Global Times, an organ of the Chinese Communist Party, this beauty of an article appears: US F-16 sale to Taiwan…


Kudlow’s Ominous Interviews on Today’s Sunday Shows

by John Galt August 18, 2019 13:15 ET In what can only be called a weird twist of irony, Larry Kudlow, who just happens to be President Trump’s Director of the National Economic Council in the White House said this on December 6, 2007 (From the National Review): There ain’t no recession. Sadly for Mr. Kudlow, the NBER disagreed with home some 24 months later and pegged the start of the “Great Recession” as starting in December of 2007. Many of us proclaimed it started in October of 2007, but that’s…


Xi Zaps Trump Rally Today

by John Galt August 15, 2019 05:25 ET All it took was one headline: China Says U.S. Violates Xi-Trump Consensus With New 10% Tariff And boom. There goes the 150 point rally the DJIA was set to have this morning: Even though this was set up as a reflex rally on over sold conditions, in a bear market beginning over sold can become more over sold before it bounces. The other action was in the credit markets where in an amazing move, the 30 year US Treasury which broke the 2.00%…


U.S. 30 Year Treasury Hits All Time Record Low Yield

by John Galt August 14, 2019 06:30 ET Via INVESTING.com Today the talking heads will say this is “bullish” because mortgage rates will become more affordable, even though they are based on the 10 year US Treasury. Then the rest of the lefty financial talking heads will blame Trump. The reality is that today is a historic marker: The end of the modern United States business cycle. Next up: Japanification


What to Expect when 2Y/10Y US Treasury Yields Invert

by John Galt August 14, 2019 06:00 ET Doom. Death. Locusts. Fire from the sky. Global warming. Global cooling. CNBC anchors crying. Fox Business hosts blaming Democrats. Bloomberg hosts blaming the US 2nd Amendment. Is that the kind of pure hot holy hell we can expect when the 2 year US Treasury and 10 year US Treasury rates invert soon (possibly today)? Chart from CNBC.com Actually no. But the algorithms which power 80+% of all Wall Street activity will notice the uptick in mentions of the words “inversion” and “recession” and…


PBOC Sets Morning Fix Above 7 Tonight

by John Galt August 7, 2019 21:20 ET Watching CNBC-Asia coverage tonight (Bloomberg was getting boring) and for the first time in my memory, they People’s Bank of China just set the domestic Yuan’s morning fix at 7.0039. This was not as weak as market projections but it does demonstrate that the PBOC will not only poke Trump in the eye, but shove a stick up Jay Powell’s tuckus in retribution for not stemming Trump’s trade war before it accelerated. Someone in China must have U.S. equities to sell still because…


Someone, Somewhere Said “Sell it All” Today

by John Galt August 7, 2019 21:00 ET For those who never saw the movie “Margin Call” here is why what I am about to say is so important: The key phrase? Sell it all. Why is this important today? In an era where liquidity appears to be tightening on a global scale and a potential dollar shortage is on the horizon, someone around 4 a.m. EDT liquidated a ton of futures contracts and apparently bought gold, silver, 10 year U.S. Treasuries, Yen, and God knows what else in the safety…


08.05 BREAKING NEWS: U.S. Treasury Designates China as a Currency Manipulator

by John Galt August 5, 2019 17:56 ET Flash headline on CNBC, more details to follow shortly. This is not going to be a good night in the currency, bond, or equity markets, IMHO! Updated with more 18:02 ET via ForexLive: Mnuchin says China is a currency manipulator Excerpted: US Treasury Secretary Mnuchin has said China is a currency manipulator. Via an official Treasury statement.  Mnuchin adds: will engage with the IMF to eliminate unfair competitive advantage by China’s actionssays China’s actions are a violation of China’s G20 commitments to refrain…


The Deadly Fork in the Road in 12 Terrifying Outcomes

by John Galt August 5, 2019 05:00 ET To be quite honest, I like President Donald J. Trump’s approach to the Presidency in many ways. However, I fear some of his tactics and personality traits are putting us on the road to disaster. His history of “getting going” when the going gets tough is not an attribute I would rate as a premium optimal outcome for our society. After all, there is this as evidence, among a lot more: Thus as I discussed in a previous article about the fork in…


BREAKING NEWS: China Retaliates, Orders all Entities to CEASE buying U.S. Agricultural Products

by John Galt August 4, 2019 22:28 ET Breaking news live on Bloomberg Asia coverage. The Chinese government has ordered all state entities inside the People’s Republic of China to cease buying United States Agricultural products. More to follow once PRC websites update…. First link via FX Street reporting from Bloomberg also.




The Trump Stock Market Crash of 2019

by John Galt August 4, 2019 19:00 ET Ugh, not this garbage once again. The truth is that Bill Maher sadly may get his wish only because President Trump is not playing this game of political-economy very well. One can not treat this as a one on one negotiation nor an “Art of the Deal” type winner take all scenario. The economy is made up of billions of individuals who make billions of decisions along with now, computer algorithms which make billions of decisions per second. First however, let me be…


Coming Soon? Trump’s Wall for an Assault Weapons Ban

by John Galt August 4, 2019 16:30 ET The new, most recent tragedies in El Paso, TX and Dayton, OH are bringing the gun control debate back to the forefront at a time when President Trump needs this distraction at the least. Internationally the drums of war are starting to beat louder with Iran, North Korea, China, and even Russia starting to stir up trouble in their own back yards and in some cases our allies front lines. As the media and Democrat hysteria reach a fever pitch, there is a…


Back to the Future of 1972

by John Galt August 2, 2019 05:00 ET The future of America has hit a major fork in the road, but to buy our economic future more time, we may have to revisit the past. The odds of a 1972 type Republican landslide are distant if not impossible due to leftist voter fraud and the divisions which now sharpen the true divide we are living in as a society. 1972 Nixon-McGovern Electoral Map The slaughter was total and complete for Nixon during that era. His campaign was replete with dirty tricks,…


America’s 2019 Fork in The Road

by John Galt August 1, 2019 20:17 ET As I return to the keyboard in my own home after travels throughout my state and up to the north, I must state that a realization after talking to customers, vendors, and listening to the locals has hit me like a ton of bricks: We’re forking here. At the proverbial historic fork in the road. Ignore the political circus in Washington, D.C. at your own peril my friends because once the political-economy becomes your personal enemy, the recovery and survival of a long…


The Official John Galt Democrat Debate Drinking Game

by John Galt July 30, 2019 19:15 ET This official game applies for both nights of the debate as there is no doubt, it these two nights are going to be “wowsers”. The Rules are as follows: Every time a Democrat Candidates says either the words “Racist” or “Racism” drink. One hour later you will be sleeping well or stone cold passed out. My choice tonight is Luksusowa Potato Vodka as it is smooth as water, tasty as vodka should be, and lets me sleep better knowing my liver went for…


Comparative Relativism is Failing Modern Day Market Analysis

by John Galt July 10, 2019 20:50 ET For many months now, I have, along with numerous market skeptics have fallen into the “me too” trap set by using historical market analysis and the theories purported to apply to current market conditions. Thus I have to ask the following questions: Since when have we had a bull market last this long without massive, major market corrections? In addition to that, when have geopolitical current events, both foreign and domestic, ever been applied in a logical or mathematical methodology which works for…


AOC is Batshit Crazy but Right About DHS

by John Galt July 20, 2019 19:50 ET Every now and then an insane Marxist says something that is right but for the wrong reasons. Alexandria Ocasio-Cortez said it but not for the reasons she thinks: Ocasio-Cortez tells The New Yorker Radio that she wants to eliminate the entire Department of Homeland Security (DHS)Question: “Would you get rid of Homeland Security too?” Ocasio-Cortez responds: “I think so”DHS was created to protect America in response to 9/11 pic.twitter.com/A8i05visFi— Ryan Saavedra (@RealSaavedra) July 10, 2019 I like Ryan Saavedra at The Daily Wire…


A Knitting Website Actually has their Knitters in a Wad over Trump

by John Galt 23.06.19 19:30 ET Yeah, seriously. I thought this was a joke at first, but no, these weirdos actually stated the following: We are banning support of Donald Trump and his administration on Ravelry.This includes support in the form of forum posts, projects, patterns, profiles, and all other content. Note that your project data will never be deleted. We will never delete your Ravelry project data for any reason and if a project needs to be removed from the site, we will make sure that you have access to…


Meet the Man who Probably Stopped Trump’s Iran Attack

by John Galt 23.06.19 17:00 ET Imagine being President Donald Trump sitting in the situation room 20 minutes before a massive airstrike was to be launched against Iranian Revolutionary Guard targets, when suddenly one of the generals puts a phone call on hold and says “Mr. President, I think you should take this call immediately.” Does this sound insane? Because it is not, and while the phone call may or may not have happened on Thursday night just before the attack on Iran was to begin, it does highlight that something…


Goodbye to my Old Friend

by John Galt June 2, 2019 10:00 ET Isabella was a dear friend of mine who sat by my side as I penned many articles over the last decade. Yesterday she suddenly died from coronary failure in my living room. Please folks, keep adopting pets from shelters as we do because shelter pets are the best. My old friend was a victim of the housing crash of 2008 and her family had to leave all their pets at the Humane Society when they lost their home. Goodbye sweetheart, you were my…


And So it Begins: First U.S. Bank Failure in 17 Months

by John Galt May 31, 2019 21:30 ET If the credit markets are not received as an omen, the failure and subsequent panic in China after a major bank failure there, and bizarre equity market action recently, then perhaps tonight’s surprise FDIC takeover of Enloe State Bank of Cooper, TX might just be the first fat canary to fall in the coal mine. From the FDIC website: The Enloe State Bank, Cooper, Texas, was closed today by the Texas Department of Banking, which then appointed the Federal Deposit Insurance Corporation (FDIC)…



05.05.19 DEATHslider Alert (sort of)

by John Galt May 5, 2019 23:10 ET We are all going to die! Well, maybe not tonight or tomorrow, but hell, this action does not justify a full blown DEATHBURGER alert…. It is time to panic a tad bit, not much, just a wee bit, if you have not already. No, John Galt is not dead, I just smell like slathered up tanning lotion and cheap tequila. However, the market smells worse! Why? Chiner, Chiner, Chiner, as El Presidente Trumpo likes to say: OMGOMGOMGOMG!(Thank you Finviz.com) So what is really…



Korea Summit Fails, Trump Walks Away From Talks

by John Galt February 28, 2019 05:30 ET This morning the news is grim as the North Korea’s intransigence and desire to remain a permanent nuclear power resulted in the Hanoi summit breaking up and President Trump walking away from the negotiations with Kim Jong-Un. What this means is that instability and the threat of war will increase dramatically in the months ahead. Kim Jong-Un will view this collapse as an opportunity to tighten his ties with communist China and Iran to spread and enhance his nuclear weapons capability. Sadly, the…


Donald Trump Became a One Term President Today

By John Galt February 15, 2019 19:40 ET In less than one week, President Donald J. Trump went from being as Cool as Coolidge to as Wimpy as W. The blind “Trumptards” as I referred to them during the primary season will live in denial and follow their cult, along with the United States, into their own political grave. President Troover however, our current leader, took actions today which are those of a swamp creature, the very political elites of which he criticized for years and promised to eradicate. Yet his…


What to Expect from Tonight’s State of the Union

by John Galt February 5, 2019 20:40 ET Another year of drama, another State of the Union address to our nation by President Trump. What makes this one different? For one, I refuse to sponsor a drinking game tonight because I for one and intoxicated from all this winning. On the President’s slate tonight, expect the following: Bragging on the economy, and justifiably so.Bragging about ISIS being almost totally eliminated if one doesn’t count the ISIS embeds in France.Bragging about Gorsuch and Kavanaugh bringing “balance” to the SCOTUS.Bragging about his wife…


AAPLgeddon Approaches

by John GaltFebruary 3, 2019 22:30 ET The bad news from Apple earlier this month impacted the global markets hard since 6 p.m. Eastern Wednesday night on January 2nd of this year with everything from a flash crash in FX (USD/JPY): To the impact on futures which as of the following morning were down over 300 points on the DJIA. So why could one stock be the great harbinger that every bear has been hibernating on? A quick review of Apple’s history without five thousand words about how many central banks…


With This Story, I can Say it: Now I’m done

by John GaltJanuary 24, 2019 22:15 ET Just WTF. What kind of story would cause me to say this? From the front page of the DrudgeReport.com tonight, an AP story that just makes one shake their head and say “WTF”!?!?! Man says emotional support alligator helps his depression I’m sure this guy is a nice guy. I believe he has issues with emotional depression, hell, that’s tough at his age. But his doctor? Saying “yep, it’s okie dokey to have a five foot alligator with you, even to snuggle, to keep…


President Origami Folds Again

by John GaltJanuary 24, 2019 18:50 ET Sigh. Just when you think he’s going to man up, go to the mat, and fight to the finish, President Trump folds more than a Tokyo Origami Competition: As the Shutdown was going on, Nancy Pelosi asked me to give the State of the Union Address. I agreed. She then changed her mind because of the Shutdown, suggesting a later date. This is her prerogative – I will do the Address when the Shutdown is over. I am not looking for an….— Donald J….


Alexandria Ocasio-Cortez Hates Billionaires Loves their Money

Another Democrat superstar trying to copy Obama, another liar. How can I state this better than to use AOC’s own words (courtesy of FoxNews): If billionaires are so immoral, she sure has a strange way of showing her disdain for them. For example, the one obvious case I could find after digging through Ocasio-Cortez’s FEC filings was this donation from Tom Steyer in California, who gave the maximum: Of course, if I really wanted to find out if she received a lot more money from the PAC’s and other billionaire outlets,…


2018 Was the First Year with no Bank Failures since 2006

by John Galt January 15, 2019 20:35 ET For the first time in thirteen years, the Federal Deposit Insurance Corporation record any bank seizures. This marks the first time since 2006 that the United States did not have a bank failure, but in the bigger economic scheme of things, what does this mean? First and foremost, the lack of action by the FDIC and statements published regarding the health of our banking system indicates that a real economic recovery was underway in 2018. This does not mean all is well throughout…


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