If the status quo is so good why would we vote out the incumbents?


Almost everywhere we look, we’re told by the political class how good our lot is. Our blessed Aussie PM told us, “It has never been a better time to be an Australian.” Boosted asset prices, low unemployment and tepid inflation gives the illusion of real wealth for everyone. As an electorate, if all of that were true, why wouldn’t we be going out of our way to make sure the status quo gets voted back in with similar if not greater majorities? As it stands, more and more incumbent parties are hanging on by their finger nails, being forced to create alliances to stay in power rather than stick to the principles their parties were founded on. The irony is that these grand coalitions are formed on the tenets of ignorant ‘un-populism.’

The latest election cycle shows us that a growing number of people aren’t buying mediocrity. They’re sick of incumbent politicians ignoring them. The current crop of leaders seem to think that being less worse than the opposition is a virtue to be proud of. Yet poverty levels continue to rise and wealth is not trickling down to the masses. Even rising state entitlements have a finite life and the electorate knows it. Being married to the government is not seen as a desirable strategy long term. Deficits keep rising and look increasingly hard to pay down.

Searching through the St Louis Fed database, civilian employment under Obama managed to grow 2.5% on pre-crash levels. So the US loaded up on $9 trillion in short term debt to create 4 million net new jobs. That works out at $2.25 million per worker. Hardly an achievement. Yet despite that economic growth has dithered at the lowest post recession rates ever. As much as we might want to celebrate record low unemployment these are not proud statistics. The quality of jobs keeps going down. $8.4 trillion of this federal debt load needs to be refinanced inside 4 years. $12.3 trillion inside 10 years. While politicians can call the average voter stupid, the daily struggles of the average punter shows how out of touch the law makers are. This was the grand mistake made by Clinton. While she hung out with her elite mates at $1,000 plate dinners in Democrat strongholds in LA, NY and Chicago expecting a coronation, Trump hit the little people and had crowds flocking to see him.

While Trump’s trade tariffs seem daft on the face of it, it was done for the forgotten people who voted for him. He is not concerned about the consequences. That’s the point. So much of his platform appears abhorrent but he is the only politician in danger of being raked over coals for keeping his promises. That’s why he was elected. The status quo had failed to deliver over decades. 80% of the population didn’t benefit from the asset bubble post GFC. The 1% took 42% of those gains. The average Joe and Joanne see this. While they might not fully comprehend it they know enough to see their situation is not much better.

Take a look at Trudeau’s India debacle. Apart from the embarrassing wardrobe saga, the bigger problems came when he blamed the Indians for letting a known terrorist attend a state dinner. The Indians, unsurprisingly, were most unhappy at the accusation. Many look to Trudeau as the posterchild of the left, pushing peoplekind. Telling Canadians that he will convert returning ISIS fighters with haiku poetry, podcasts and comparing them to Italian migrants at the end of WW2 is utterly preposterous to his constituents. Telling his veterans they’re asking for too much flies in the face of love of one’s country. No wonder his popularity continues to dive. His speech to the UN – where he rattled off how Canada was ticking all the UN diversity boxes – was only a quarter full. Not even his own liberal mates rallied to show unity in numbers. It was telling that virtue signalling is all about appearing to do good rather than doing it.  Yet the day before Trudeau presented, Trump spoke of America First and the audience was packed. They might have hated every word that dripped from his tongue but they didn’t miss it for the world. It is hard talk. Not carefully prepared politically correct nonsense.

Take the recent European elections. Germany gave Merkel the worst ever performance of the CDU post WW2. The SPD was even worse. The anti-immigrant AfD stormed to 16%. Is it any wonder that when Merkel’s misguided altruism  showed up on Election Day even she finally conceded we have a problem with “no go zones”. Some may wish to look at the Merkel miracle of growth and low unemployment but the public service in Germany has exploded from 9% pre 2008 crash to 16% today. Not private sector growth but public sector.

The Italian election showed over 60% of the vote went to eurosceptic parties. While volatility has always been a feature of Italian politics, this results showed the discontent underbelly of Italy which has seen poverty jump 50% to one third of the population since Lehman collapsed. While M5S said it wouldn’t form a coalition, all bets are off if it tied up with League. There are plenty of overlaps on the party platforms but the M5S would have to insist on the PM role. The EU would go into a tailspin on such news.

Austria voted in a wunderkind who put the right wing anti immigrant FPO in charge of immigration. Holland saw Wilders claw more seats. Nationalist Marine LePen in France doubled the number of seats ever attained by the Front National. Even Macron is changing his spots looking to introduce national service and take a harder line against migrant crime.

Whether the real statistics of migrant crime are wholly accurate or not is beside the point. It is increasingly seen as an election issue and more EU countries have had enough. They feel their lot is getting worse and view forking out billions in aid for people to settle here is pennies out of their pocket. If the stats are as the government sugar coats them to be in terms of the prevailing prosperity surely the citizens would overwhelmingly back them. Sadly the opposite is true meaning politicians aren’t selling their “compassion” effectively. Too many examples of gagging the police and muzzling the press have surfaced.

That is the thing. If the economy was rosy and bullish and more people felt secure there is a likelihood they would look at the immigration debate in a more positive light. All they see now is millions flocking to Europe as poverty is on the rise and the economy is on the back foot at ground zero. European EU-28 GDP hasn’t grown since Q4 2015. Despite a quadrupling of ECB assets net jobs created post GFC numbers 4 million, labour force participation remains below the peak. However we should not forget that Romania and Bulgaria joined in Jan 2007 and Croatia in 2013 which would add (at a 50% employment ratio) c.20mn meaning that employment in the EU on a like for like basis as a whole is down 16mn jobs ceteris paribus. Even if only Croatia was included then net jobs creation in EU-28 would be a paltry 2mn, or a smidgen above 1%. Anemic.

Yet the political class still doesn’t seem to be learning, especially the EU. Poland and Hungary have formed a pact to reject proposed quotas on migrants. The EU has failed to address the most important question. The wishes of the migrants themselves. It is one thing for the EU to appeal to voters as saving asylum seekers from war torn lands (when 80% are economic migrants by the EU’s own numbers), it is another to forcibly send them to countries that flat out don’t want them. Ask for a show of hands of asylum seekers looking to stay in Germany or head off to Hungary to settle and the likelihood is 100:0. Trying to make Hungarians or Poles feel guilty for being incompassionate is a price they’re clearly willing to pay with losing EU membership. Would we take kindly to a neighbor telling us how to arrange our furniture in the living room or sign a petition to prevent us building extensions even though it is not even in their way? Of course not. Still wagging fingers in disapproval is only likely to steel their resolve.

Flip to the Southern Hemisphere and Australian politics is also exposing the sordid state of the swamp. 5 PMs in 10 years. Now the Deputy PM has had to resign to the back bench and in a last ditched effort to claim some sort of moral high ground with the staffer he was having an affair with. He claimed he would still look after her even though a paternity test might show the kid wasn’t his. What a grub and a slap in the face for his partner to imply she may have been promiscuous. Once again the popularity of the incumbent parties in Australia continues to sink to all time lows. The Labor Party looks to have the next election in the bag but even then the popularity of the opposition leader is woefully tiny.

While the world seems to be in this state of blissful tranquility on the outside, we needn’t probe too deep before seeing how bad things continue to be on the inside. The little people may not have any financial fire power but at the ballot box they have an equal opportunity to stuff those that aren’t listening. Once again Italy shows us it wants change. Call it populism if you must but it is truly a reflection of just how bad things really are and how little ammunition to deal with any future crises remains. The little people are raising their voices. Best heed their words. It is the same reason why as zero chance as Trump looks in 2020, don’t bet against another 4 years in the White House. If the Dems hope that celebrities that talk of #METOO and gun control (all the while they attend Oscars semi-naked and collect their millions doing action films full of explosions and automatic weapons fire) will sway them to a return to the swamp they’re sorely mistaken.

Playing down a mass suicide note


With the release of the Nunes memo, do top Democrats honestly believe that such collusion by the DNC with the nation’s judiciary and intelligence services doesn’t expose the hypocrisy of a party which proclaims its platform is all about equality and liberal ideals? Does it not expose that these politicians are only in it for themselves? Is it any wonder the Democrats are proclaiming this memo is ‘misleading’ or worse that Americans are too stupid to understand the memo? On reflection they probably had wished they’d stood and applauded during the SOTU address instead of childish frowns of bitterness and playing Candy Crush on their smartphones.

While many Americans probably suspected corruption (so brilliantly conveyed in ‘House of Cards’) for decades, they have had it transparently confirmed.  The DNC hope was that the illegal and doctored FISA application would sink Trump as a candidate and lock in a Clinton White House. By then the scam could be lost as easily as 33,000 emails. Power corrupts. Absolute power corrupts absolutely.

Who could forget Bill Clinton’s chance meeting on a Phoenix tarmac with Attorney General Loretta Lynch the day before her testimony on Hillary’s email scandal? Did anyone honestly believe they just talked about grand children? Lynch downplayed the severity of the private server as ‘careless’. Conservative watchdog Judicial Watch has found 30 pages related to the encounter at the FBI, after being caught for hiding them in another lawsuit.

Obama was front and centre of the Clinton campaign. Hillary caught the jump seat on Air Force One numerous times. Are we to believe that this dossier was never discussed on board? That Obama, so obsessed with protecting his legacy,was in no way complicit in making sure Trump wouldn’t get in the Oval Office?

If we go back to mid 2006, news broke that the NSA was tracking the calls and emails of tens of millions of Americans to create  the “largest and most comprehensive database ever assembled in the world.” In the summer of 2007, the Bush administration pushed FISA amendments known as the “Protect America Act” through Congress which authorized the surveillance of any phone call or email by any American suspected of ‘suspicious dealings’ with ‘foreigners’.

As a presidential candidate in the 2008 election, Senator Barack Obama pledged that there would be “no more illegal wiretapping of Americans”. Post the election win, Obama reversed his position and continued the Bush-era surveillance via FISA. Obama’s Department of Justice aggressively defended court challenges from anyone who suspected their phone calls or emails had been illegally traced.

In his last days as president, Obama authorized the NSA to share its volumous databank on Americans with other federal agencies, opening a can of worms for politicians to dig up dirt. Talk about muddying waters in an already dirty swamp. This seems like a move that could badly backfire if a cleaning house of the FBI and DOJ is undertaken. What option has the president but to do it? What better way to talk of transparency to the American people than lop heads of such duplicitous people.

Therein lies the problem. When the state’s own intelligence services are working so closely hand-in-hand with political parties to keep dynasties alive one has to question democracy. Despite Wasserman-Schulz stabbing Sanders in the back, a mainstream media overwhelmingly behind Clinton, a p*ssy grabbing opponent, we now learn that not even a dossier paid for by the DNC in cahoots with the FBI and DOJ to cheat FISA got Democrats across the line – what a hatchet job.

Even Turkish President Erdogan would blush at the level of ‘duplicity’ of this scandal. This is abuse of power on an industrial scale.  One wonders whether the often made claim that the ‘Obama administration was one without scandal’ maybe tarnished with one of the worst. We haven’t heard the last of this.

Gutter press or smutter press?


Gutter press. No other word for it. One would expect better from The NY Times. Still why not make a baseless claim for the heck of it should it help paint a narrative? Indeed the Stormy Daniels $130,000 shut-up money story would have legs if she produced the ‘deposit slip’ and the contract which any media outlet would  pay “any price” to insure against any litigation for her breach of it.

Think of the $100s of millions media outlets have spent on tying to take the President down. Whether Russiagate which CNN’s own Van Jones called a “nothing burger” for ratings or MSNBC’’s Rachel Maddow who made that  embarrassing “we got his tax returns!” gaffe. Every celebrity event (Grammy’s, Oscars or Golden Globes) has become more about blasting Trump than blowing wind up the back sides of their own Hollywood hypocrites who blatantly turned a blind eye to all of the sexual misconduct that has gone on for decades in their own industry. Where is the outrage over that? Even career feminist Germaine Greer said that if one opened their legs for a movie role they “consented”.

Indeed if Trump frolicked with Stormy Daniels it appears it was consensual on the basis of the rumours. It is not condoning it but look at all the petty behaviour of Clinton post the election still crying to her elitist buddies in sympathy for losing to a man, who less than a week after the grab p*ssygate scandal, stared down the barrel of a camera to 100s of millions of viewers in the second debate to say “no one respects women more than I do” If indeed it was an election issue, voters overlooked it to boot the establishment. Case closed

Still the one-eyed NY Times has to make baseless read acrosses on Melania’s actions being about her acting in a huff over her husband’s supposed infidelity. Make no mistake had she cheated on her husband the mainstream media would celebrate it and chalk it down for a win for their side. They’d get panels of feminists talking about how his behaviour brought it on and how he deserved it for being a chauvinist pig.

However we shouldn’t point fingers at just the NYT.

Last week The Guardian wrote of Melania Trump: “Seldom seen and even more seldom heard, the former model may not be as popular as her predecessor Michelle Obama, but she is far more popular than her husband. Unfortunately for his Republican administration, she seems to have little interest in using that popularity to do anything of substance with the post.

Well had Tbe Guardian bothered to check, the left has made it clear of how they see her in the public eye. When she went to donate Dr Seuss books for children’s education, the recipient librarian at Cambridgeport School refused to accept the gift, criticizing the Trump administration’s education policies further writing that Seuss’s illustrations are “steeped in racist propaganda, caricatures, and harmful stereotypes,” Never did I know as a child that reading about the Cat in a Hat was some conspiracy by my parents to turn me into a hateful bigot. Now it’s all so clear!

The Daily Mail had to settle a $2.9mn lawsuit and issue a full public apology for libel against the First Lady for suggesting she gave more than “modeling services.” What awful slander! Could it be that the press is hardly lining up to champion anything she might host which is of social good? Is trying to be a good mother by not dislocating her son’s education in the early days a crime?

All the jokes from the left thanking immigrants for marrying Trump because Americans wouldn’t do it flies in the face of the very stereotypes they get so easily triggered over. Indeed the racist president married a Slav. Never mind the contradiction.

While the press can speculate over what FLOTUS might be thinking perhaps they should give her advice on the ways they wish her to behave. Should we anticipate Melania Trump’s hashtags on social media championing flaccid and impotent US foreign policy to terrorist groups like Michelle Obama? Mrs Obama is indeed a highly educated person but that doesn’t automatically exclude Mrs Trump from serving the office gracefully and proudly. The Trumps are a power couple

Yes, her husband leaves much to be desired in the manner in which he serves his country. However the scoreboard suggests many of the things he is doing are working. Such is the bias in the press about how world leaders hate him, CBS painfully admitted almost everyone of them lined up for a selfie with POTUS at Davos.

If we look at the last State of the Union address he blew the left out of the water. Even Van Jones admitted he’s going to do 8 years with talk like that. Now he has far more achievements to crow about. So yes, Melania will be there looking a million bucks and her face will speak of how she feels about Stormy Daniels. Storm in a teacup mode like it.

Hillary only proves how unfit she was for President


Clinton’s appearance at the Grammy’s reading ‘Fire & Fury’ only shows she has learnt absolutely nothing. Out of touch liberal hanging with her millionaire mates. No humility and yet again shows how she can’t let go the fact that her coronation fell through. Her appearance would be funny only if it wasn’t so cringingly true. At least she can count on the champagne socialists at the Grammy’s buying a copy of her book so they can read about how one can absolve oneself from all responsibility.  Even better it’s discounted.

Usually a mutually exclusive headline in WaPo


Surprising to see such an opinion piece in WaPo. Usually mutually exclusive subject matter with such a title. Admittedly the author said she had incredibly low expectations.

Will 65.9mn voters buy a copy of Jorge Garcia’s book?


‪From Michael Moore –

“Here’s how MLK Day was celebrated in Detroit today…

‪”After living in the U.S. for THIRTY years, a 39-year-old immigrant, a resident of metro Detroit, was deported this morning to Mexico. Escorted by ICE agents, he said goodbye to wife and two children before forcibly placed on a flight to Mexico at Detroit Metro Airport. His name was Jorge Garcia. He was brought here to the US from Mexico in 1978 when he was 10-years old, thus making him too old in 2018 to qualify for DACA.”

So let’s be clear, my friends: They are able to do this to this father of an AMERICAN family because YOU AND I are not putting our bodies between the Racist Trump’s ICE thugs and the innocent victims of a country that was founded in genocide, built on the backs of slaves and then maintained by its oppression of women.‬ WHEN do WE end this American Nightmare? When do we start to redeem ourselves from the abhorrent behavior done in our name by a man who was teeing up on the third hole at Mar-a-Lago while Jorge Garcia was being kidnapped and deported this morning? In the name of Dr. King, can we pledge tonight, together with our own families and friends, to defeat these bastards on November 6th and end this madness? I do! Please say you will, too.”

On one level it is extremely sad to see families broken up period.  On the other where does one draw the line on an election promise? Trump was voted in on a ticket to clean up illegal immigration. If exceptions are granted for one person on compassionate grounds surely anyone that can pluck heartstrings would be eligible to remain. Then the law isn’t enforced.

Indeed Mr Garcia may have been a hard working model individual. Presumably he never tried to get mixed up with the law on revealing his true status. One would find it hard to believe that he never saw being deported as a risk in the years of being there, especially after Trump won.

To be  clear, the Deferred Action for Childhood Arrivals (DACA) was an American immigration policy that allowed some individuals entering the country as minors that either entered or remained in the country illegally, were eligible to receive a renewable two-year period of deferred action from deportation and to be eligible for a work.

Complain all one likes about the stupidity of kicking out a supposed upstanding member of the community on an age technicality but to censure the President for enforcing laws on which he won his ticket once again highlights the double standards of the left. Suppose Trump let Garcia stay? One could bet a lot of dollars that Democrats wouldn’t compliment his compassion one iota. Damned if you do. Damned if you don’t. So his decision (playing golf on  a National holiday) is completely rational.

One shouldn’t forget the shameful actions of Obama’s DOJ which blatantly lied to 26 State supreme courts over converting 5mn illegal immigrants to citizens. So egregious were the lies that one Supreme Court judge ordered 5 years compulsory ethics training for every attorney in the DOJ for the scandal. Are lies ok on compassionate grounds?

America is getting what it asked for. Indeed in 2020 they can vote him out but the reality is that a growing number of citizens are seeing fortunes improve and on that basis self preservation will trump compassion every time. Having said that Mr Garcia will likely get a book deal for $100,000s to tell his story. The question is will 65.9mn bleeding hearts buy a copy? One guesses no…when the next opportunity to rant against election promises comes along.

All the polls point to Trump losing control of the house in the mid-terms. Don’t bet on it. No rational person would vote out a formula that is working after a decade of financial destitution.  Once again if you’d believed the polls at election time and bet the house on a Clinton coronation you’d have lost your shirt.

Lock’em up – Prisons in America – The facts


The Nation reported that the number of privately run prisons is on the move under Trump. At the moment private prisons make up around 5% of the 2.3mn prison population at present. The US now spends $90bn every year to incarcerate these jailbirds or around $39,000 a head (similar to Japan). According to the Bureau of Economic Analysis we had a lull in expenditure on jails after the Lehman collapse. Indeed several states were releasing ‘lower’ risk criminals from prison in order to cut their deficits. This has driven the growth in private prisons.


According to The Nation, “18 states spend more on incarceration than on higher education, and one study found that the total cost of incarceration, including social costs, adds up to $1 trillion. One point seven million children in the United States have a parent in prison, more than 70 million Americans (about one in three) have a criminal record, and those enormous impacts are suffered unequally: While African Americans are about 13 percent of the US population, they make up 37 percent of the male prison population.

The Nation highlights also that “these private prisons are important to understand and discuss because, while only about 8 percent of the current state prison population is housed in for-profit facilities, about 18 percent of those behind bars in the federal system are in these prisons, and over 60 percent of immigration-detention beds are operated by these corporations” the newspaper is overstating the performance of the stocks. While indeed the largest company, CoreCivic (CXV0 rallied off the election it has none-the-less returned to earth.


Also earnings whether in revenue or profit terms actually peaked under Obama’s administration.


While the numbers are horrific in themselves, incarceration in the US costs the equivalent of the Slovak Republic’s GDP.

On public safety alone the US is now spending $375bn p.a or the equivalent of Austria or just over half what the country outlays on defence. So combined the US spends $1 trillion per annum on ‘protection.

The Nation also notes, “The Trump administration appears to be focused on expanding the number of undocumented individuals who are detained behind bars in this country. For one, his administration requested more than $1.2 billion [in reality a 1.3% increase] in the 2018 federal budget to expand detention capacity to more than 48,000 beds a day. To put this into perspective: According to ICE, the current daily capacity ranges from about 31,000 to 41,000. And in April, the administration handed GEO group a $110 million contract to build and run a 1,000-bed detention center in Conroe, Texas. And, most recently, ICE issued “requests to identify,” which are basically pre-requests for proposals, from contractors who can house immigrant detainees in South Texas as well as in the interior of the country in places like Chicago, Detroit, and Salt Lake City.

As a reference the border wall is priced at around $10bn.

As an investment, perhaps the US private jails look a bit oversold with the hype immediately  post the election behind us. At 13x P/E for CVX perhaps a turnaround in its earnings potential is ahead of us and a discount to the market with minimal downside risks make it a proper bricks and mortar investment. The above forecasts look reasonably conservative.

Who will do the bidding to accommodate Mrs Clinton? Perhaps a premium will be warranted.