“If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment.” ~ Marcus Aurelius
Part I includes our stories for our first two categories: economy & financial markets and geopolitics.
ECONOMY & FINANCIAL MARKETS
Story #1: Secret Books and FASAB 56: U.S. Securities Markets Go Dark
FASAB 56 represents the single greatest increase in “the swamp’s” power since the ‘47 and ‘49 Acts that launched the CIA and the black budget. In effect, the policy turns the U.S. Treasury over to fund criminal enterprises and gives them permission to do whatever they want—in secret. It is essential to understand what FASAB 56 means. (Read Part One of Solari’s 2018 Annual Wrap Up on The Real Game of Missing Money, which brings together the critical documentation on FASAB 56 and the missing $21 trillion that citizens and investors need to do due diligence on Treasury securities.) FASAB 56 has the power to convert U.S. and U.S. citizens’ and pension funds’ cash investments in Treasury securities into taxpayer liabilities and introduces the prospect of an increasingly privatized military with Blackwater-style mercenary armies. These entities’ sphere of operations will potentially be on both domestic and foreign fronts, with U.S. states and other jurisdictions able to hire mercenaries to enforce the status quo—a scary end run around Posse Comitatus law. It is potentially an open season for false flags, covert operations, and the use of force—including weather warfare and other forms of disaster capitalism—to create fake realities and engage in asset-stripping. You must depend on yourself and those you trust to do this due diligence.
- FASAB Statement 56: Understanding new government financial accounting loopholes
- Full Committee Hearing: The Department of Defense’s Financial Improvement and Audit Remediation Plan: The Path Forward
- Former SEARS company sues ex-CEO Lampert, Treasury’s Steven Mnuchin over “asset stripping”
(Mnuchin knows how to asset strip—is that why he created FASAB 56? Will FASAB 56 create the mother of all asset strips?) - California turns to U.S. Defense Department technology to battle wildfires
- The self-destruction of American power
Story #2: U.S. Debt Spiral and Reserve Currency Pains
FASAB 56’s elimination of U.S. federal government financial accountability puts the dollar under strain. U.S. buyers of Treasury securities—the Fed, the federal government, and pension funds—are keeping Treasuries afloat while foreigners continue to sell. What happens next year if and when Social Security goes cash flow negative and becomes a seller of Treasuries? If the Fed picks up the slack, it will push the U.S. economy toward even greater currency debasement and price inflation. Meanwhile, accelerated asset-stripping is underway. We cannot allow Mitch McConnell to recast the beneficiary-funded Social Security Trust Fund as an “entitlement” so as to lay the groundwork for cuts and more outright theft. For everyone who still does not view the missing $21 trillion as real or personally relevant, Mitch McConnell’s statement should be a wake-up call. There is also cause for concern about pension funds—they were fully funded at the time of 9/11 but now are only 70% funded, and falling. It is time to hold the players involved accountable, get our money back, and make federal accounts transparent. There are several possible strategies—including common law offset, liens on assets, and holding the banks and contractors that run the accounts liable, not to mention more that are possible if state and local governments and courts will participate. We have the facts to offset their spin. We need to use the facts to create political leverage. We need to insist on a place at the table and must be willing to say, “Wait a minute, what about the $21 trillion?”
- We have 3 years before the national debt “death spiral”
- Endgame: Starting in 2024, all US debt issuance will be used to pay for interest on debt
- U.S. officials meet in secret over junk-loan frenzy as recession alarms flash
- Article taken down: Mnuchin secretly convenes Financial Stability Oversight Council
- White House economic advisor Kevin Hassett says his departure is not because of tariffs
- Kevin Hassett, Chairman of Council of Economic Advisers, to leave post
- The Fed dusts off “whatever it takes”
- Prosecutors ask for delays in civil cases against JP Morgan as criminal probe into metals market manipulation continues
- QE may be over, but the Fed’s U.S. debt hoard is about to soar
- Interest on the national debt
- Social Security hits a negative mark in its finances next year
- Social Security won’t go bankrupt—It will just cut your benefits!
- Mitch McConnell calls to cut Social Security, Medicare
- Trends in U.S. Social Security actuarial status
- House passes bill making big changes to U.S. retirement system
- Texas lawmakers approve $1.1 billion from state savings to fix teacher pension fund
- China warns traders of “huge loss” if they short the yuan
- Dollar dump? Russia & China agree to bilateral trade in national currencies during Putin-Xi meeting
- Swiss ditch Libor as rate reference
- Dollar beware: Serbia & Philippines join global gold hunt
- Malaysia’s Mahathir proposes common East Asia currency pegged to gold
- Here’s what Facebook’s new cryptocurrency Libra will look like and how it will work
- Facebook’s new cryptocurrency, Libra, gets big backers
- Special Solari Report: How the U.S. Federal Government Handles Taxation for Cryptocurrency (Including Bitcoin)
Story #3: Slowbalization: Recession Looms, Equity Markets Correct; Interest Rates Fall
The Economist has declared the “golden age” of globalization to be over—now we’re in “slowbalization.” Friction in the day-to-day economy is at an all-time high, and technocracy is wasting everyone’s time and draining productivity. There is no way that an economy can grow under such circumstances. Indeed, the rates of growth in government debt are greater than the underlying economic growth rates—a clear symptom that real growth is debatable.
A Confederacy of Quitters—The Plunge Protection Team Leaders Resign
The Plunge Protection Team (PPT) is the nickname given to the New York Fed-based Working Group on Financial Markets, which advises the President during market upheavals and relies heavily on the management of gold and other market prices. The PPT is chaired by the Treasury Secretary and also includes top officials from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). On May 28, two weeks after the prosecution of a JP Morgan vice president involved in gold manipulation was delayed (likely due to the VP cooperating with the prosecutors), the number one and number two members of the Plunge Protection Team announced their resignation. Two days after that, Treasury Secretary Mnuchin held an emergency meeting of Treasury’s Financial Stability Oversight Council, and late that same day, the financial press reported the resignation of the SEC’s Chief Accountant, followed the next day by the resignation of the President’s top economic advisor. Remember that when the SEC—which is responsible for transparency in the securities market—commented on FASAB 56, they raised no objections. However, if I was the Chief Accountant, I would not wish to stay or would be raising objections that could cause me to be shown the door.
- The head of the Plunge Protection Team is quitting
- U.S. officials meet in secret over junk-loan frenzy as recession alarms flash
- Article taken down: Mnuchin secretly convenes Financial Stability Oversight Council
- Trump’s swaps watchdog bows out leaving tough enforcement legacy
- Chief accountant Wesley Bricker to leave SEC
- Stocks close sharply higher as Fed hints at possible rate cut
- Holding rates steady, Fed plays down worries on low inflation
- Dollar hovers near seven-week low as Fed officials open door for rate cut
Story #4: Technocracy, Farmegeddon, and the Reengineering of Land and Real Estate
The post-FASAB 56 world is starting to look like a kind of outer-space IG Farben, with the U.S. devolving into an all-liabilities-and-no-assets subsidiary of its parent holding company (whose governance is a mystery). The holding company is shielding all of the stolen money and assets from taxes and regulations—for all we know, it is now held digitally on the suborbital platform. The adoption of FASAB 56 coincides with what appears to be an escalation of weather warfare, both domestically and overseas, with steered hurricanes and tornadoes that may be engineered to ensure more central control over U.S. farmland and food. The average age of American farmers is high, with most family farms unable to afford significant losses.
Opportunity Zones—a tax shelter created by the 2017 Tax Cuts and Jobs Act—are another strategy that is facilitating the transfer of real estate and land while helping to bring technocracy into the last mile.
In Europe, FASAB 56 may spur the creation of a much more independent continent. Did the masterminds of FASAB 56 consider the international repercussions of showing their hand so openly? Why would anyone want to trade with a FASAB 56 country? Bretton Woods is devolving, and it is only a matter of time before countries that have “had it” with Brussels start creating their own internal trading currency or unit of accounting. Recent events—such as the European elections—also signal a growing revolt against technocracy, which is rightly viewed as an attack on national culture and productivity. Both working men and wealthy businessmen are angry because, while they are still trying to function in a market economy, technocracy is destroying productivity, draining out hope and innovation, and killing the economy with shadow work. The technocrats do not care about the powerful role that a shared cultural intelligence plays in building healthy economies.
- Facebook plans to launch its cryptocurrency in 2020
- Rockefeller Foundation aims to make Trump tax perk work for poor
- The Rockefeller Foundation launches $5.5 million Opportunity Zone community capacity building initiative for select U.S. cities; Newark, N.J. is first city selected, with co-funding from Prudential Financial
- U.S. farms are facing their worst crisis in a generation—And now here comes another monster storm
- Low prices, floods and trade wars plague American farmers, putting their survival at risk
- Boon times for auction houses as American farmers go bankrupt
- REITs bet big on the mortgage market
- AM Best: Most homes in Midwest states uninsured for flooding
Story #5: Trade Wars: The Superpowers Bare Their Teeth Over Sea Lanes, Borders, Back Doors, and AI
The spat between China and the U.S. is nothing new, but what is new is that the Siamese twins are taking serious steps toward separation. Alibaba filed a major IPO in Hong Kong, and other IPOs are happening there as well. China’s largest chip maker withdrew from the New York Stock Exchange. Both China and Russia have made it clear that they want an alternative to the U.S. system for every aspect of their financial systems.
- China rare earth prices soar on their potential role in trade war
- Trade war pushing Asia closer together
- Tanker attacks near UAE expose weaknesses in Gulf Arab security
- China’s biggest chip maker, SMIC, to withdraw from New York Stock Exchange as trade spat with US spills over to technology sector
- Democrats debate the repeal of Section 1325—what you need to know about the immigration law that criminalizes unauthorized border crossings
- Judge bars Trump from using $2.5B to build border wall
- U.S. federal wall funding of US$1.57B yields 1.7 miles of fence
- Federal judge blocks Trump’s border-wall plans
- Hundreds of African migrants protest for entry at Texas border bridge
- A new industrial base is taking shape. Call it the military-AI complex
- As Germany floats the idea of encryption backdoors, Facebook may already be planning to undermine its own encryption
- Swarms of drones, piloted by artificial intelligence, may soon patrol Europe’s borders
- Could Facebook’s edge AI message scanning save encryption?
GEOPOLITICS
Story #6: Elections Signal a Rise of Nationalism and Citizen Frustration
The growing opposition to technocracy is also opposition to transhumanism. People recognize that transhumanism is embedded in the technocracy agenda—which is trying to shift us from a model that recognizes divine authority and individual rights to a slavery-plus-technology model where humans are just another natural resource to be chipped and tampered with. People’s objections to technocracy and transhumanism are expressed as “nationalism” in an effort to protect their individual culture and productivity. However, when viewed as a whole, their concerns actually cross national and class boundaries.
England: May resignation, rise of hard Brexit risk
Two symbols of the growing revolt against technocracy came out of Great Britain. First, Nigel Farage’s Brexit Party is clearly anti-technocrat. It remade the political landscape in a matter of weeks—something that would have been unthinkable in the days of Thatcher. Second, Prince Andrew got on the BBC to announce that Brexit “makes no difference” to entrepreneurs. In other words, the royal family is putting its stamp of approval on a particular political direction. Clearly, anti-technocracy slices through all demographics.
- Theresa May announces she will resign on 7 June
- UK businesses can be successful after Brexit, says Prince Andrew
- Brexit—Irish PM says no backstop as bad for Ireland as no deal
- 4 takeaways from the European Parliament election results
- Socialist Party wins the European elections in Spain
- Europe-wide vote fragments center as far right, Greens gain
India: Modi leading the rise of Hindu nationalism
Modi is a technocrat and has caused a lot of pain for ordinary Indians in pushing the adoption of technology, yet he is popular. With his promotion of Hinduism, he represents an interesting combination of technocracy plus religion.
France: Le Pen performs, and Notre Dame burns
It appears that the French also assume that the Notre Dame fire was arson. The French handling of the arson is a tribute to how much they love and appreciate their culture. President Macron, however, is the epitome of a technocrat. This is the man who declared that “there is no such thing as French culture” on the Verdun battlefield where thousands of Frenchmen died defending their culture. As Dr. Farrell says, Macron is a perfect example of what CS Lewis called “men without chests”—stuck in his head to such an extent that he can’t feel.
- Far-right wins French vote in EU election, but Macron limits damage
- Massive fire at historic Notre Dame cathedral in Paris
Australia: Conservatives Are Back!
The conservatives won in a shock election. It may have been rigged, but everybody in Australia is happy that it was!
Israel: Netanyahu wins; coalition collapses; new elections
Although Netanyahu won, he couldn’t put together a coalition. Someone appears to be fighting against Netanyahu’s Iran war agenda.
- Israel to hold new elections after Netanyahu coalition talks fail
- Volodymyr Zelenskiy, a popular television comedian with no political experience, won a runoff presidential election against Poroshenko
Story #7: Technocracy and the Rise of the Global Truman Show
Technology’s invasiveness gets worse every day. Perhaps we can derive hope from the fact that technocrats and their systems have no integrity—faced with zero integrity, people will have no choice but to push back.
- Opportunity Zones: A technocrat deception to plunder America
- Tracking phones, Google is a dragnet for the police
- Amazon’s facial-recognition technology is supercharging local police
Story #8: It’s a Mad, Mad World: Censorship, Disinformation, Entrainment, and the Weaponization of Populations
Disinformation, fear porn, and hope porn are purely entertainment—and entertainment is different from news or actionable intelligence. Solari’s business is actionable intelligence. Get smart about avoiding the disinformation and hope/fear porn—they are clever vehicles for shakedowns (think Madoff) and keep people passive so they won’t act (think QAnon). Also stop engaging with untrustworthy entities like JP Morgan Chase because remaining engaged means that, energetically, you are supporting them. Imagine what might have been possible if just 10% of JP Morgan Chase’s and the other large New York Fed member bank clients had stopped banking there after the financial crisis—it could have changed everything.
- Trump continues Obama’s war on whistleblowers, arrests another alleged Intercept source
- The normalization and institutionalization of fraud
- JPMorgan Chase accused of purging accounts of conservative activists
- “Dystopian approach”: SEC blesses MasterCard’s idea of cutting off customers with right-wing views
- Media blackout as Israel’s largest banks fined for US tax evasion schemes
- As China blames US, Hong Kong on a precarious edge
- How and why The Intercept is reporting on a vast trove of materials about Brazil’s Operation Car Wash and Justice Minister Sergio Moro
Mueller Report: Trump’s deal with Bushes and the Queen—Did the swamp win?
The Brits were undoubtedly behind the Steele dossier, but it could well have been MI5 or MI6, acting under their own steam. Whoever it was, Trump’s successful state visit with the Queen appears to represent a burying of the hatchet while also symbolizing the royal family’s reassertion of its behind-the-scenes power and the Queen’s risk management role for the Commonwealth. After the state visit, a number of people who appear to be connected to the Wiener laptop and related corruption were killed or died under suspicious circumstances—a brokered deal rather than a draining of the swamp?
- The real Muellergate scandal 59
- Why Queen Elizabeth is all smiles about Trump’s royal visit
- Video: President Trump and First Lady Melania attend state dinner at Buckingham Palace…
- Donald Trump’s state visit—Your armchair guide
- Trump’s UK visit was a glowing success
Assange slow kill
The British and Pompeo seem to be intent on a slow kill of Assange. Are they afraid of Assange because he has more information than he has released? Does he have a dead man’s switch that is slowing things down? Seth Rich’s murder may have something to do with the situation.
- Assange’s request to postpone alleged rape hearing due to bad health denied
- US crusade against Assange a “blueprint” for criminalizing journalism – Greenwald
- U.S. charges WikiLeaks founder Julian Assange with espionage
Story #9: Oil Wars, Trade Wars, Economic Sanctions, and the Silk Road
Trump may be trying to pivot to North America, but he is also working to keep the unipolar model going (or make it look like it’s going). U.S.-sponsored sanctions and trade wars are making life difficult for many, with the possible exception of Russia, which is benefiting from higher oil prices. Do the increasing news stories about hydrogen-fueled cars, Lockheed’s fusion energy breakthroughs, and renewable energy mean that technology to wipe out the oil and gas industry is on the horizon? Is the current energy system going to be gone within the span of a decade or two? Does technocrats’ confidence come from their ability to control cheap energy? Changes in the energy system inevitably imply changes in the financial system; if both types of changes happen, Europe may be able to project much more power on the global stage, particularly since it has a consumer market advantage as well as a cultural advantage. Will London, rather than Berlin, start calling the shots? Looking at the Silk Road, at its best it represents a juggernaut in terms of human and intellectual capital—hope, not hope porn—but China’s hardliners are rolling out technocracy at lightning speed, and it is not clear how things will evolve.
In the U.S., the escalation of weather warfare has made the Trump administration the most anti-farmer administration in the world. Farmageddon is putting farmers out of business, but Trump and his rollout of farm aid have got farmers believing that he is on their side. It looks like Trump is doing a great job for the deep state!
- Trump allows U.S. sales to Huawei as trade talks resume
- Trump’s trade attack pushes India to negotiating table
- US forces blow up three oil tankers in Syria enforcing oil embargo
- Hong Kong dismisses Washington warning on oil tanker violating US sanctions on Iran
- U.S.imports from Russia of crude oil and other petroleum products – Chart
- Alibaba files for a Hong Kong mega-listing
- Saudi oil exports to China see spectacular jump
- Demystifying Belt and Road
- Trump to unleash hell on Europe: EU announces channel to circumvent SWIFT and Iran sanctions is now operational
- China rebuffs US penalties threat for allowing ship with Iranian oil to enter Hong Kong
- China’s biggest chip maker, SMIC, to withdraw from New York Stock Exchange as trade spat with US spills over to technology sector
- Exclusive: China backtracked on almost all aspects of U.S. trade deal – sources
- Trump administration rolls out $16 billion farm-aid program
- Multinationals, offshoring and the decline of U.S. manufacturing
Story #10: The Push for War—Secret Money for Secret Armies and War
Does Trump genuinely want war with Iran, or is he reading a script? Or are we looking at a Bay of Pigs situation where the deep state is trying to force Trump’s hand? No one—not the U.S., Israel, or the Saudis—can invade Iran and win. Right after Trump’s state visit with the Queen of England, we saw what looked like clumsy false flags against Norwegian and Japanese oil tankers. What kind of narrative says that Iran would attack a Japanese tanker while the Japanese Prime Minister was visiting Iran? Iran promptly declared a false flag, and the Japanese openly indicated that they were not buying the narrative. The CEO of the company that owned the Japanese tanker even reported that something flew into the ship rather than exploding below the water line. Merkel obediently endorsed the American intelligence opinion that Iran was behind the tanker incidents—but only after being filmed looking like she was under physical attack—perhaps from electromagnetic weapons?
There may be an antiquities aspect to what is going on in the Middle East, although this is not on most people’s radar. Iran knows more about where we come from than anybody in the world—does the push to invade Iran represent an effort to get our hands on their antiquities? Every country under assault in the Middle East in recent history—Egypt, Libya, Syria, Iraq, and now Iran—has an antiquities connection. The Chinese are fanatical about guarding their antiquities. Is the agenda oil, currencies, and control of the Silk Road, or do the technocrats and transhumanists also want to wipe out our history?
- Trump claims he canceled an airstrike against Iran at the very last minute
- Russia won’t leave Iran to the wolves! New bilateral cooperation measures approved by Kremlin!
- How Iran was swindled out of $3.2 trillion
- Japan demands more proof from U.S. that Iran attacked tankers
- Iran urges US, allies to stop false flag ops in Mideast after Gulf of Oman tanker sabotage
- Pompeo says U.S. does not want war with Iran; pushes for international response
- Pompeo says Iran is responsible for attacks on oil tankers in the Gulf of Oman
- Trump invokes emergency arms sales authority to counter Iran
- Iran quadruples production of low-enriched uranium amid tensions with the Trump administration
- Nasrallah: “In Iran war, all US forces/interests to be eradicated, Israel/Saudi to pay price”
- Team Obama tells Iran: Don’t escalate, don’t take Trump’s bait
- Dissecting the unfathomable American-Iranian war
- Tomgram: Hartung and Smithberger, a dollar-by-dollar tour of the national security state