The International Monetary Fund told Germany to raise taxes and is also talking about imposing a 10% tax on all money on deposit in banks throughout Europe. Although such a one-time “capital levy” occurred previously in Italy, it will probably NOT happen this time … however, it illustrates the thinking that emanates from bureaucrats in trouble. Politicians conceive means for taking YOUR money to cover their expenses and mistakes. Action you should consider taking to AVOID becoming their main course in the future should be obvious. (If it isn’t, ask us in an email to email@example.com.)
Depositors continue to bail on Canadian non-bank lender Home Capital Group, which has lost 94% of its funds over the past six weeks. Withdrawals began when information about the instability of its high-interest savings accounts—which are invested in marginal mortgages—went public… Not surprisingly, Home’s demise was aided by short sellers, one of whom is also a chicken-farmer. Which should reminde us that any weaknesses at your bank may also attract short-selling hedge funds–which will accelerate its problems.
Ransomware. A widespread computer virus attack known as “WannaCry” compromised computers with obsolete operating systems around the world. An unknown group of hackers utilized malicious software stolen from our National Security Agency and executed damaging cyber-attacks which spread like wildfire Friday, affecting servers still using Windows XP in 99 countries—including businesses, hospitals, mass transit, universities, even governments. Once a server’s data was encrypted, WannaCry ransomware held it “hostage” until a ransom was paid using bitcoin or Western Union.
This article includes a short video outlining some steps you can take to avoid being affected by a future cyber-attack.
Dismantle it. Ryan McMaken’s proposed solution to end the nonstop babbling about Comey’s termination is to shut down the Federal Bureau of Investigation. Seriously. Permanently. And he has some good reasons: it wastes our money, fails to stop major catastrophes (9/11 for example) and has led us on a wild goose chase of endless false flags. Individual states could do a better job of protecting us than the overreaching stasi agency. But before the FBI becomes toast, I nominate Energy and Education as the first Departments to receive walking papers.
Trump unfortunately handed detractors a controversy on a silver platter, which may not only allow tax-reduction and other more important issues to be slow-rolled, but also further reduce support from key influencers such as Ann Coulter… While Mainstream media fumed around the clock, some important stories went under-reported, including: (1) a Pentagon plan to increase boots-on-the-ground in Afghanistan; (2) a leak in the Dakota Access Pipeline (already); (3) continued NSA warrantless spying on millions of Americans; and (4) a lawsuit filed by a cop (and former Marine) who was fired for NOT shooting a suicidal man.
A border wall! Nope, not here, not yet. But Hungary has activated an electrified double-sided fence on the Hungarian-Serbian border. It features watch towers with armed guards and might be further fortified to include “night vision and thermal imaging cameras and motion detection systems.” Hungary has refused to accept any more of EU’s “migrants.”
Good for business. For the 13th consecutive year, Chief Executive Magazine named Texas the best state for business. Polled executives gave high marks for Texas’ airport and deep-water port systems, low business taxation and regulation, workforce quality and quality of life. Florida ranked second, while California remained in last place due to its “hostile business environment, heavy regulations and burdensome taxation.”
Speaking of California, Governor Jerry Brown has proposed another 42% gasoline tax increase to bailout the state employee pension fund—on top of the 50% increase enacted over the past decade. No discussion appears to be forthcoming on cutting government employees or their pensions.
Chembombs are replacing chemtrails as a method for “climate engineering,” according to this source. Chemtrail doubters will find great difficulty explaining the purpose of the aircraft configurations pictured in the article.
Five Minute University is a classic SNL treat, featuring “Father Guido Sarducci.” Enjoy!
MARKETS – for the week ending May 12
Real money bounced: gold $1 to $1227.70 and silver 13 cents to $16.40/oz.
US stocks retrenched: the Dow slipped from 21000 and settled 0.5% lower at 20897, while the S&P dropped 0.3% to 2391.
Mining stocks (the XAU Index) bounced a bunch: 5.8% to 84.97.
Crude oil (the WTIC Index) moved $1.60 higher to $47.84, even as U.S. crude production nears record highs, with the rig count up for the 17th straight week.
Commodities (GCC Index) rose 1.2% to 18.95. Iron ore prices in China crashed through key support to 6-month lows.
Currencies. The Federal Reserve Note (= dollar, via USD Index) gained 0.6% to 99.13.
US Treasury bonds rose slightly as 10-year and 30-year yields dropped 3 and 1 basis points to 2.33% and 2.98%.
This post can be found at FamilyBusinessOffice.net
About the Author
Wayne Peterson is an independent Registered Investment Advisor and principal of Family Business Office, a comprehensive financial planning and asset management firm he founded in 1991. He has been publisher of the Transformation Watch newsletter since 2005. A U.S. Air Force Academy graduate, Peterson spent five years with the U.S. Marine Corps as a fighter pilot, followed by 20 years in aerospace management. For free weekly receipt of these financial blogs, subscribe here.
Peterson’s book, “But What If I’m Right?”, outlines the factors contributing to the impending global financial transformation and provides readers with recommendations to safeguard their families and their assets.