McDonald’s shares rose in New York on Monday morning after the fast-food chain announced Sunday that Quarter Pounders are back on the menu, following a brief removal due to a widespread E. coli outbreak. 

“McDonald’s was informed that the Colorado Department of Agriculture has completed their testing, the results of which confirm that there was no detection of E. coli in the samples taken of Quarter Pounder beef patties from restaurants in this area. We’ve been informed there is no further testing planned for beef patties,” MCD wrote in a press release. 

Last week, out of an abundance of caution, MCD nuked Quarter-Pound beef patties across the western parts of the country due to the E. coli outbreak, which sickened 75 people in 13 states, including 22 hospitalizations and one death. 

MCD said the 900 restaurants that received slivered onions from Taylor Farms’ Colorado Springs facility will resume sales of Quarter Pounders without slivered onions. This includes restaurants in Colorado, Kansas, and Wyoming, as well as portions of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, Oklahoma, and Utah.

Bloomberg published a visual showing the outbreak. 

Negative press around MCD sent foot traffic to the chain sliding nearly 5% last Wednesday from a year earlier, according to Bloomberg, citing data from Gordon Haskett Research Advisors.

In markets, MCD closed down 7.5% last week, the worst five-day stretch since March 2020.

Shares rebounded early Monday, up more than 2%. 

“The FDA is continuing its investigation into Taylor Farms’ Colorado Springs facility,” MCD said. 

Perhaps it’s time for lawmakers on Capitol Hill to investigate the vulnerabilities of America’s food supply chain, given the invasion of millions of unvetted migrants by Biden-Harris over the past 3.5 years – many of these migrants were dumped into the factory farms and food processing plants. 

After being indoctrinated for almost a decade to believe that their political opponents are secret Nazis ready to install a fascist regime, it’s not surprising that Democrats are freaking out over recent polls indicating a potential Trump win in the November elections.  Convinced that America 2024 is going to be a repeat of Germany 1933, ignorant leftists are scrambling to determine whether or not to leave the US or “start a revolution.”  The anxiety is palpable.   

The New Yorker recently asserted in an arduous and rambling article spanning centuries of political history and every rhetorical cliche imaginable that, essentially, Trump is likely to win.

The outlet describes Kamala Harris as “virtuous” (which is laughable), but they suggest this trait is not respected enough within the American political sphere. They lament the undeniable shift of global politics to the conservative right while refusing to ask why it’s happening?  They simply default to the old low-IQ and low effort accusations of “racism” and “xenophobia”.  The New Yorker argues:

“Even when it is utterly self-destructive – as in Britain, where the xenophobia of Brexit cut the U.K. off from traditional allies while increasing immigration from the Global South—the apprehension that “we” are being flooded by frightening foreigners works its malign magic. 

It’s an old but persistent delusion that far-right nationalism is not rooted in the emotional needs of far-right nationalists but arises, instead, from the injustices of neoliberalism…”

The mass immigration from the third world continues in Britain because the same progressive elitists are still in charge despite the Brexit vote.  That’s why the country is spiraling into a pit of criminality, mass stabbings and a rape epidemic. It’s the reason why the British voted for Brexit in the first place. 

Brexit and the end of mass immigration is the will of the majority of the people, just as it’s the will of the majority of people in many parts if Europe and the US.  Yet, leftists who pontificate endlessly about the virtues of democracy dismiss the majority when it suits them.  It is this arrogance of the political left that has led directly to the rise of the right wing movement that so utterly terrifies them.  

The problem is, leftists never take responsibility because they see this as an expression of weakness, and also because their moral relativism allows them to rationalize any behavior as necessary “for the greater good.”  Their main character syndrome spurs them to believe they are the ultimate good in the world, and if they are the ultimate good then anyone who dares oppose them must be the ultimate evil. 

This is why they have a tendency to demonize their political opposition in extreme ways.  The New Yorker describes Trump as singularly dangerous, comparing him to mobsters, tyrants and even cancer:

“Trumpism is a cancerous phenomenon. Treated with surgery once, it now threatens to come back in a more aggressive form, subject neither to the radiation of “guardrails” nor to the chemo of “constraints.” It may well rage out of control and kill its host…”

And this kind of rhetoric is exactly why there have been at least two assassination attempts on Trump’s life; attempts which the leftist media then shamelessly blamed on Trump.  It’s also gaslighting, considering the level of tyranny Democrats have engaged in under Biden and the contempt they have displayed for American ideals over the past decade.  

The fantasy world of the left is rife with paranoia built on a foundation of emotional sand rather than evidence.  They see a new Trump term as the end of everything:

“Having lost the popular vote, as he surely will, he will not speak up to reconcile “all Americans.” He will insist that he won the popular vote, and by a landslide. He will pardon and then celebrate the January 6th insurrectionists, and thereby guarantee the existence of a paramilitary organization that’s capable of committing violence on his behalf without fear of consequences. He will, with an obedient Attorney General, begin prosecuting his political opponents…”

“When he begins to pressure CNN and ABC, and they, with all the vulnerabilities of large corporations, bend to his will, telling themselves that his is now the will of the people, what will we do to fend off the slow degradation of open debate?

Trump will certainly abandon Ukraine to Vladimir Putin and realign this country with dictatorships and against NATO and the democratic alliance of Europe. Above all, the spirit of vengeful reprisal is the totality of his beliefs—very much like the fascists of the twentieth century in being a man and a movement without any positive doctrine except revenge against his imagined enemies…”

The establishment media has imagined quite a reformation of American politics at the hands of Trump, and a lot of it actually sounds pretty good.  But as many conservatives have noted, if Trump had authoritarian intentions why didn’t he follow through on them during his first term? 

Some would argue that he did too little in the face of the city burning antics of BLM, and that he should have pushed harder to stop the legal railroading of the J6 protesters who did little in comparison to the race rioters.  Where is this uncompromising zealot that The New Yorker describes?  He doesn’t exist.

What is this really about?  It’s about the political left’s unspoken fear of a justified reckoning.  Deep down, they know they deserve punishment and they know most of the country has no interest in protecting them. 

They’ve spent years instigating civil unrest, they attempted an authoritarian takeover of the country using covid mandates as a foil, they lied incessantly about the threat of a stagflation crisis, they colluded to violate the 1st Amendment as the Biden White House and Big Tech platforms worked together to censor public discourse online, and they have targeted American children with sexualized gender ideology in public schools in an attempt to convert them permanently to the far-left cult.  They know what they have done and they know consequences are incoming.  

A lot of them are talking about leaving the country should Trump prevail in November, as the New York Times reports.  Their reasons vary, but worries of “fascism” top the list while others say they want to be able to trans their children (or abort their children) without interference.  The reality is that no one will miss these people and the US would be better off without them.  They would be doing the country a favor by running away.

Talk of “revolution” has been much less pronounced compared to 2016, and this suggests that leftists realize their grift is finally over.  They are some of the most hated people on the planet, and for good reason.  They spent the last several years burning every bridge and violating every principle that Americans hold dear in the pursuit of ultimate power.  They’re also losing popularity in Europe, it’s not just an American trend. 

Trump may or may not pursue an administration of “vengeance”.  It’s likely he will not act on most of the scenarios the New Yorker describes.  Democrats focus a lot on Trump as if he’s the source of their ills.

What they don’t understand is that it’s not really Trump they should be worried about – It’s the millions of people suffering under progressive governments and aggressive woke activism that present the biggest threat. 

You can’t simply engage in the wanton destruction of western culture, economics, freedom and morality and then pretend like you’re a victim when the torches and pitchforks come calling.              

Authored by Michael Snyder via The Economic Collapse blog,

One of the main reasons why Americans are in such a foul mood right now is because the economy is in really bad shape and it just keeps getting worse.  

This is very good news for the Trump campaign, because most Americans don’t want things to remain the same.  

A desire for change is in the air, but our economy is unraveling so rapidly that it won’t be easy for anyone to turn things around.  We have built up a tremendous amount of momentum in the wrong direction, and it appears that the months ahead are not going to be pleasant.

Just look at what is happening to home sales.

Last month, sales of previously existing homes fell to the lowest level that we have seen since October 2010.

Of course in October 2010 we were dealing with the aftermath of a global financial crisis.

Overall, we are on pace “for the worst year since 1995” for sales of previously existing homes…

Sales of existing homes in the U.S. are on track for the worst year since 1995—for the second year in a row.

Persistently high home prices and elevated mortgage rates are keeping potential home buyers on the sidelines. Sales of previously owned homes in the first nine months of the year were lower than the same period last year, the National Association of Realtors said Wednesday.

Existing-home sales in September fell 1% from the prior month to a seasonally adjusted annual rate of 3.84 million, NAR said, the lowest monthly rate since October 2010.

Let those numbers sink in for a moment.

We haven’t seen anything like this for a long time, and nobody can deny that the market for residential real estate is in a depressed state right now.

And it appears that this month could be even worse than last month, because the number of mortgage applications being submitted is absolutely plummeting…

Mortgage applications decreased 17% from one week earlier as mortgage rates surged, according to data from the Mortgage Bankers Association’s (MBA) weekly application survey for the week ending October 11, 2024.

The Market Composite Index, a measure of mortgage loan application volume, decreased 17% on both a seasonally adjusted and an unadjusted basis from one week earlier.

Meanwhile, our nationwide commercial real estate crisis just continues to intensify.

If you can believe it, an office building in Manhattan that sold for 332 million dollars in 2006 just sold for 8.5 million dollars…

The sale of a nearly 1 million-square-foot Manhattan office building listed on the online auction site Ten-X was completed Tuesday for only $8.5 million.

That’s 97 percent less than the $332.5 million that the seller, Swiss bank UBS, paid for the Midtown property in 2006. The loss on the building at 135 West 50th Street was minimally offset by a $6 million gain UBS realized by buying and selling the ground beneath it in the interim.

UBS and its brokers at JLL listed the 920,000-square-foot building for sale on the online platform. The two-day auction kicked off July 30 with a starting bid of $7.5 million. The sale ended the next day after Ten-X lowered the reserve price. The winning bidder, whose identity has yet to hit property records, closed about 70 days later.

That is insane!

Commercial real estate prices have been crashing all over America, and this crisis is not getting the attention that it deserves from the media.

The banking industry is headed for big trouble as well.  In fact, the government shut down another bank on Friday…

Friday, The First National Bank of Lindsay was closed by the Office of the Comptroller of the Currency (OCC), with the Federal Deposit Insurance Corporation (FDIC) appointed as receiver. The OCC acted after identifying false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital. The OCC also found that the bank was in an unsafe or unsound condition to transact business and that the bank’s assets were less than its obligations to its creditors and others.

The OCC is referring the matter to the United States Department of Justice, which has a wide variety of tools to hold individuals accountable for criminal acts and focuses on victims in all of its matters.

Some experts are projecting that hundreds of more banks will soon fail.

If that actually happens, it will be a complete and utter nightmare.

The “restaurant apocalypse” that I have written about so much also continues to roll on.

Sadly, we just learned that Denny’s has decided to shut down 150 locations…

Denny’s is closing 150 restaurants over the next year, and the 71-year-old diner chain is mulling a major change to its 24/7 operating hours.

Fifty locations are set to close by the end of 2024, while the remaining 100 will shutter in 2025, Denny’s announced in an earnings call Tuesday. That amounts to a tenth of its restaurants, leaving 1,375 locations once completed. A specific list of closing restaurants weren’t immediately announced.

Needless to say, lots of other chains are slimming down as well.

Right now, thousands upon thousands of restaurants are being permanently closed from coast to coast.

If the economy was heading in the right direction, this would not be happening.

Speaking of closures, another major retailer has announced that it will be closing all stores…

Buybuy Baby is shuttering all of its stores roughly a year after new owners tried to revive the brand.

The company announced on its website that it is transitioning to an online-only model after recognizing the need for a “a strategic reset.”

“With this shift, we’ve come to the difficult decision of closing our physical stores by the end of this year,” the company wrote. “We understand this may be disappointing news, and we want all our customers to know this wasn’t a choice we took lightly.”

Most retailers that are experiencing difficulties will try to hang on until at least the end of December.

But once we get into 2025, expect a huge wave of new store closures.

As I discussed the other day, U.S. consumers are really hurting at the moment.

You can’t get blood out of a stone, and a staggering percentage of U.S. cardholders have already maxed out at least one credit card…

Nearly 2 in 5 cardholders (37%) have maxed out a credit card or come close since the Fed started raising interest rates, Bankrate’s Credit Utilization Survey found. That includes 20% who have maxed out a credit card and 17% who have come close to maxing one out.

This is what an imploding economy looks like.

Bubbles are bursting all around us, and the outlook for 2025 and beyond is absolutely horrible.

Our leaders kept the game going for a long time by injecting trillions of dollars into the system and by going into unprecedented amounts of debt.

But despite all of their efforts, the economy is coming apart at the seams anyway, and so I hope that you are prepared for a very hard landing.

*  *  *

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Europe’s largest carmaker, expected to report dismal third-quarter results on Wednesday, has been crushed by the auto market downturn while competition intensifies from China. 

On Monday, Volkswagen’s top labor leader, works council chief Daniela Cavallo, who also sits on VW’s supervisory board, was quoted by Bloomberg as saying three factories are slated for closures. 

Cavallo warned that tens of thousands of jobs could be eliminated, and remaining workers could face 10% pay cuts and scaled-back hours.

“This means taking out even more products, quantities, shifts and entire assembly lines far beyond what we have already done so far,” Cavallo told factory workers earlier today, adding, “This is starvation, a weakening in installments.”

German VW plants. The orange icon are component plants, while blue icon are manufacturing ones. 

Cavallo said cost-cutting measures may threaten “tens of thousands” of jobs in Germany. She noted that Porsche has already canceled its production deal and future model planning at the Osnabrück factory. 

VW has ten plants and employs 300,000 workers across Germany, the economic powerhouse in the bloc. Potential job loss for VW workers comes amid numerous profit warnings in recent months and mounting union fights.

We’ve been extensively covering the dire situation unfolding at VW:

• Sept. 03: Volkswagen Considers First-Ever Germany Factory Closures As Economic Troubles Mount
• Sept. 10: Volkswagen Declares War On Unions, Scraps Three-Decade-Old Job Protections
• Sept. 27: Volkswagen Cuts Profit Forecast Again Amid Sliding Car Demand

VW’s restructuring would be historic and mark the first closure of German-based plants in the company’s 87-year history. This comes amid intensifying competition from China and slowing auto sales across the West. The transition to EV has proved nothing short of disastrous, leaving VW with little choice but to push itself into restructure mode. Maybe VW should’ve stuck with petrol-burning cars. 

Authored by Matt Margolis via PJMedia.com,

When Donald Trump’s campaign announced plans for a rally at Madison Square Garden, Democrats and their media allies knew they had a problem.

Trump was going to pack the house on their turf. So they wasted no time pushing the tired Hitler narrative and claimed that the choice of venue was an homage to a pro-Nazi rally held there in 1939.

NY Daily News vs NY Post: pic.twitter.com/dwF1gizwL9

— End Wokeness (@EndWokeness) October 28, 2024

It wasn’t just liberals in the media pushing this narrative, either. Hillary Clinton accused Trump of “actually re-enacting the Madison Square Garden rally in 1939.”

“President Franklin Roosevelt was appalled that neo-Nazis, fascists in America were lining up to essentially pledge their support for the kind of government that they were seeing in Germany. So I don’t think we can ignore it,” Hillary added.

Then she doubled down. “Now, it may be a leap for some people and a lot of others may think, ‘I don’t want to go there. I don’t want to say that.’ But please open your eyes to the danger that this man poses to our country, because I think it is clear and present for anybody paying attention.”

🚨 #BREAKING: Hillary Clinton just said President Trump is holding a rally at Madison Square Garden to re-enact the Nazi rally which occurred there in 1939

MORE inflammatory rhetoric to encourage someone to take Trump out.

These people are beyond evil. And the fact Kamala is… pic.twitter.com/ey3jGxx5iH

— Nick Sortor (@nicksortor) October 25, 2024

Even the Harris-Walz campaign joined in on the rhetoric.

“Donald Trump’s got this big rally going at Madison Square Garden,” Kamala’s running mate Tim Walz said at a campaign event in Henderson, Nevada. “There’s a direct parallel to a big rally that happened in the mid-1930s at Madison Square Garden.”

Walz added, “And don’t think that he doesn’t know for one second exactly what they’re doing there.”

Tim Walz repeats the disgusting smear that President Trump’s “big rally” at Madison Square Garden today is somehow akin to a 1939 Nazi rally.

He must’ve missed the ’76, ’80, and ’92 Democrat conventions, which were also held at MSG.

What a scumbag. pic.twitter.com/4zK1rCm9no

— Trump War Room (@TrumpWarRoom) October 27, 2024

Well, the rally took place Sunday night, and boy, talk about the worst Nazi rally ever! In addition to the diverse speakers at the event, a black woman sang the national anthem.

May be the first black woman I’ve ever seen singing the National Anthem at a Nazi rally! History being made people!!! pic.twitter.com/LwROkR9ne5

— Jennifer Galardi (@JennGalardi) October 27, 2024

And clearly, Jews didn’t get the memo that this was a “Nazi rally.”

Jews for Trump have arrived at the Madison Square Garden.

Are they still calling it a Nazi rally???? pic.twitter.com/sEnUqaMilk

— Brock Tarner (@brocktarner) October 27, 2024

MAGA SQUARE GARDEN!

Jews are flocking to the MAGA rally in the Garden – the one Crooked Hillary, the Border Czar their Pravda media are calling a “Nazi Rally.” pic.twitter.com/ZQUgglTto9

— JJ Murray (@therealJJMurray) October 27, 2024

Wrapping Tefilin at the Trump Rally in Madison Square Garden🔥🔥🔥 pic.twitter.com/bJSdk3tl3v

— Yossi Farro (@FarroYossi) October 27, 2024

WORST.NAZI.RALLY.EVER pic.twitter.com/k3o1dpUQH4

— Ari Hoffman 🎗 (@thehoffather) October 27, 2024

The only Nazi symbols you saw at all came courtesy of the Democrats.

Democrats are holding up Nazi swastika’s outside Madison Square Garden. pic.twitter.com/KSBRXUMusI

— Ryan Saavedra (@RealSaavedra) October 28, 2024

*  *  *

Matt Margolis is the author of Airborne: How The Liberal Media Weaponized The Coronavirus Against Donald Trump, the bestselling book The Worst President in History: The Legacy of Barack Obama, and The Scandalous Presidency of Barack Obama.

As we enter the most hectic two-week period of the year, futures are stronger following the S&P’s first weekly loss in 7 weeks; both Tech and Small-Caps are outperforming with the yield curve bear steepening and USD flat reversing an earlier spike as a splunge in the yen also reversed following a shock outcome to Japan’s election this weekend which saw the ruling LDP lose its parliamentary coalition majority for the first time since 2009. A sense of relief swept through markets after Israel’s retaliatory strikes against Iran was just as performative as back in April, and avoided oil and nuclear facilities, with crude tumbling 5%. As of 8:00am ET, S&P futures were up 0.5%, but well off session highs; Nasdaq futures gained 0.6% with Mag 7 and semi stocks higher premarket. Oil/Energy commodities plunge, WTI down 6%, as the latest Israeli attack was another “straight to DVD” production and avoided energy facilities in Iran. Base metals have a bid but the balance of the commodity complex is lower. It’s an extremely busy week, with payrolls on Friday and over 40% of the S&P reporting earnings, but today’s macro calendar is light with only Dallas Fed calendar but keep any eye on Japanese politics and any potential read-through for the US yield curve and Credit demand.

In premarket trading, airlines, whose fuel costs are linked to oil prices, were among the biggest gainers while energy stocks fell.  Exxon Mobil (XOM) declined 2%, falling with other energy stocks amid a drop in Brent crude. Occidental Petroleum (OXY) -2%, Schlumberger (SLB ) -2% and others were also down big. United Airlines (UAL) gained 2%, climbing with other airline stocks which are getting a boost as a drop in Brent crude prices signaled a potential impact on jet fuel costs. Boeing declined after launching $19 billion share sale to address liquidity needs. Here are some other notable premarket movers:

• ADT (ADT) slips 2% after holder Apollo Global Management offers 56 million shares.
• Procept BioRobotics (PRCT) rises 14% after the surgical robotics company boosted its year forecast.
• Sunrun Inc. (RUN) gains 5% as the company is in discussions with data center developers to supply distributed solar power generation for their facilities.
• Delta Air Lines (DAL) +2%, American Airlines (AAL) +3%

Oil slumped more than 6%, while gold also retreated after Israeli jets struck military targets across Iran on Saturday, delivering on a vow to retaliate for a missile barrage at the start of the month, but the attack was far more muted than most had expected. Israel’s shekel strengthened the most among about 150 currencies tracked by Bloomberg.

Iran said its oil industry was operating normally following Israel’s attacks on military targets. That eased geo-political tensions as markets prepare for a week packed with key economic data and corporate earnings. Among those are results for five of the “Magnificent Seven” big-tech behemoths, as well as eurozone and US economic-growth prints and a monthly payrolls report. And then comes the presidential election on Nov. 5, with markets increasingly pricing in a stocks-boosting victory for Donald Trump and the Republicans.

“Four factors are driving US equities higher right now: better macro data, solid third-quarter earnings, rising expectations of a Republican sweep and lower risk of an escalation in the Middle East,” said Wolf von Rotberg, an equity strategist at Bank J. Safra Sarasin. The Magnificent Seven earnings “are likely to provide another lift to S&P 500 earnings growth,” he said.

For the US bond market, already stung by the worst selloff in six months, the coming days will be crucial, as they feature the Treasury Department’s announcement on Wednesday on the scale of its debt sales. The 10-year Treasury yield rose about two basis points, while a gauge of the dollar was steady.

In Europe, the Stoxx Europe 600 erased an early gain, as heavy losses in oil-related shares offset gains in construction and media stocks which were the best performers. Energy majors Shell Plc, TotalEnergies SE and BP Plc weighed on the gauge. Royal Philips NV dropped 18% after the Dutch medical-technology firm cut its sales outlook. Porsche AG shares fell after the German carmaker reported earnings that fell short of analysts’ expectations. Here are some of the biggest movers on Monday:

• Sonova shares rise as much as 6.4%, most since May and to the highest level in over two years, as analysts flag plans by Costco to resume selling Sonova’s hearing aids.
• Trainline shares rise as much as 12%, hitting their highest level in more than six months, after the e-ticketing platform raised its guidance for the second time this year.
• Opmobility shares surge as much as 13%, the most since Nov. 2020, after the French auto parts maker outperformed analyst expectations in the third quarter.
• Eurofins shares climb as much as 1.9% in Paris after the laboratory-testing company said it will buy Synlab’s clinical diagnostics operations in Spain.
• Philips shares plunge as much as 18%, the most since September 1998, after the Dutch medical-technology firm reported third-quarter sales that missed expectations and lowered its comparable sales forecast for the full year.
• Porsche shares fall as much as 3.8% after the German firm reported results on Friday evening where automotive free cash flow was called a major miss by Bernstein.
• Wacker Chemie shares fall as much as 1.7% after the German chemicals company’s third quarter Ebitda and free cash flow missed consensus estimates.
• Traton shares fall as much as 3.5% as the German truckmaker reported what analysts called unsurprising results, with Warburg pointing out that unlike Volvo and Paccar, the firm has yet to provide a FY25 market outlook.
• Computacenter shares drop as much as 2.1%, hitting their lowest level in more than a year, after the company warned it experienced a softer end to the third quarter than hoped and that annual adjusted pretax profits will be modestly below the year before.
• KPN shares fall as much as 2.5% as the Dutch telecom operator reported weaker-than-expected sales at its consumer-facing arm.

Earlier in the session, Asian stocks edged higher, as gains in Japan offset losses in some other markets in the region. The MSCI Asia Pacific Index rose as much as 0.3%, snapping a five-day drop, with Japanese exporters including Toyota Motor among the biggest boosts to the index after the yen extended losses. Political risk put pressure on the currency as investors mulled the implications of the failure by Japan’s ruling coalition to win a majority in parliament. Stocks swung between gains and losses in mainland China after profits at industrial firms declined at a faster pace in September compared with a month earlier. Investors will also be watching for earnings from Chinese banks for clues on the impact of Beijing’s stimulus measures. Shares in Hong Kong traded higher.

“Despite the political noise, yen weakness, more spending and structural corporate reforms in Japan may keep Japanese equities attractive, especially amid potential supply chain shifts and Japan’s role as a stable regional player,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore.

In FX, the Bloomberg Dollar Spot Index is little changed, drifting slightly lower as traders awaited key data including non-farm payrolls later this week. The yen underperformed all other Group-of-10 currencies after Japan’s ruling coalition failed to win a majority in parliament for the first time since 2009, setting the country up for a period of instability.  USD/JPY rose as much as 1% to 153.88, the highest since July, as a gamble by Prime Minister Shigeru Ishiba to call an early election backfired. Dollar buy stops above the Oct. 23 high of 153.19 were triggered, some of which were momentum-related, according to an Asia-based FX trader. However, since its earlier gap lower, the yen pared declines and at last check the USD/JPY was up 0.2% at 152.60, down more than 100 pips from session highs. “Uncertainty around whether Ishiba can continue as Prime Minister and also the formation of the next government in Japan will likely keep some weakening pressure in JPY in the near-term,” MUFG analyst Michael Wan writes in note.

In rates,longer-dated Treasuries remain slightly cheaper on the day, with yields in retreat following an opening gap higher as oil slumps. 10-year yields rose 2bps to 4.26%, after rising as high as 4.29% earlier; Longer-dated yields are cheaper by 1bp-2bp with shorter maturities little changed, steepening 2s10s and 5s30s spreads by ~1bp; UK and German 10-year yields are now slightly lower with bunds and gilts in the sector outperforming by 2.5bp and 3bp on the day. US session includes auctions of 2- and 5-year notes, while Fed officials are in self-imposed quiet period ahead of Nov. 7 policy announcement. The final Treasury auction cycle of the August-to-October financing quarter begins with $69b 2-year note at 11:30am New York time, followed by $70b 5-year note at 1pm. Cycle concludes Tuesday with $44b 7-year notes

In commodities, oil prices gapped lower at the open and slid further during the European morning session, aiding a rebound in European government bonds. Brent was about 6% lower after the much-awaited Israeli attack on Iran steered clear of oil infrastructure

Looking at today’s US economic data calendar we only have the October Dallas Fed manufacturing activity at 10:30am; ahead this week are JOLTS job openings, consumer confidence, ADP employment change, PCE price indexes and jobs report. Tech giants slated to report quarterly results this week include Google, Meta, Microsoft, Apple and Amazon

Market Snapshot

• S&P 500 futures up 0.5% to 5,878.00
• STOXX Europe 600 up 0.3% to 520.60
• MXAP up 0.3% to 187.06
• MXAPJ little changed at 600.08
• Nikkei up 1.8% to 38,605.53
• Topix up 1.5% to 2,657.78
• Hang Seng Index little changed at 20,599.36
• Shanghai Composite up 0.7% to 3,322.20
• Sensex up 1.0% to 80,232.43
• Australia S&P/ASX 200 up 0.1% to 8,221.52
• Kospi up 1.1% to 2,612.43
• German 10Y yield little changed at 2.32%
• Euro up 0.1% to $1.0812
• Brent Futures down 4.6% to $72.57/bbl
• Gold spot down 0.4% to $2,736.26
• US Dollar Index little changed at 104.31

Top Overnight News

• Boeing Co. launched a nearly $19 billion share sale, one of the largest ever by a public company, to address the troubled planemaker’s liquidity needs and stave off a potential credit rating downgrade to junk. Goldman is lead underwriter: BBG
• Chinese industrial profits dive in Sept, raising anticipation even further for the upcoming NPC (11/4-8), at which Beijing is expected to unveil additional fiscal steps aimed at bolstering the economy. SCMP
• The yen slid to a three-month low after Japan’s ruling LDP coalition failed to win a majority in parliament, setting the stage for more political wrangling. Export-related companies led Nikkei 225 gains. BBG
• BOJ officials pledge to improve their communication with markets to avoid the type of turmoil sparked by its Aug rate hike. RTRS
• Israel’s assault on Iran early Saturday, coordinated with Washington and limited to missile and air defense sites, was more restrained than many expected and may help diplomatic efforts to return hostages and limit the combat in both Lebanon and Gaza. BBG
• France’s credit rating was placed on neg. watch by Moody’s due to the country’s rising fiscal challenges. BBG
• Economists increasingly worried about upside inflation risks after the election as Harris and Trump have both proposed policies that could push prices higher (although Trump’s agenda is much more inflationary than Harris’s platform). WSJ
• VW aims to close at least three German plants, the company’s top labor official said. The carmaker is also seeking a 10% salary cut for all employees, the works council said. BBG
• Russia is receiving top-end Dell servers, containing AI chips made by Nvidia or AMD, from an Indian pharma company, trade-tracking data show. The findings underscore the holes in US and EU attempts to shut off Moscow’s access to sensitive technology. BBG

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly positive as markets digested key events over the weekend including Israel’s strike on Iran which was aimed at military targets and not petroleum or nuclear facilities, while the election in Japan saw the ruling coalition lose its majority. ASX 200 traded indecisively as gains in tech and the mining sectors offset the weakness in real estate, utilities and energy. Nikkei 225 quickly shrugged off the initial post-election jitters and surged on the back of a weaker currency and prospects that the political uncertainty could delay the resumption of the BoJ’s rate normalisation. Hang Seng and Shanghai Comp swung between gains and losses but ultimately eked mild gains after the PBoC announced it is to utilise outright reverse repo operations today, which will be conducted on a monthly basis and is a new policy tool aimed at managing liquidity.

Top Asian News

• PBoC announced to conduct an outright reverse repo operation today and will conduct monthly outright reverse repo operations once a month with a tenor of less than one year which it will use to trade with primary dealers in the opening market. Chinese press noted that the PBoC’s new outright reverse repo will cover tenors including 3-month and six-month, while it will improve liquidity adjustments in the year ahead with the tool meant to counteract the maturing Medium-term Lending Facility loans towards year-end.
• CNOOC (883 HK) Q3 (CNY): Net 36.9bln, +9% Y/Y, Revenue 99.2bln (prev. 114.8bln Y/Y).
• Sinopec (386 HK) Q3 (CNY) IFRS Net 8.03bln, -55% Y/Y.

European bourses, Stoxx 600 (+0.4%) are almost entirely in the green (ex-AEX), with traders garnering optimism following the relatively moderate Israeli attack on Iran, which saw the former avoid hitting energy/nuclear facilities; indices have slipped off best levels in recent trade. European sectors hold a strong positive bias; Construction & Materials takes the top spot with Chemicals in second and Media in third. Energy is by far the clear underperformer, hampered by losses in the crude complex, following the aforementioned geopolitical updates. US Equity Futures (ES +0.4%, NQ +0.5%, RTY +0.4%) are entirely in the green, continuing the price action seen in Europe, which have ultimately benefited from the moderate Israeli attacks on Iran over the weekend.

Top European News

• UK PM Starmer said the Budget will include tough decisions and a long-term plan, with Chancellor Reeves due to announce tax hikes and extra borrowing, according to Bloomberg. The Times suggests that tax hikes could amount to GBP 35bln.
• UK Chancellor Reeves said the UK government is to announce GBP 500mln in aid from energy suppliers, while the announcement could be made in the upcoming budget.
• UK retail investors are “piling” into Gilts amid fears that the Labour government will raise the capital gains tax rate on shares in the budget this week, according to The Times.
• ECB’s Knot said he expects the Eurozone economy will strengthen and inflation risks have become more balanced, while he added it is too soon to declare victory over inflation and that it is important the ECB keeps all options on rates. Furthermore, Knot said need to see a bit more conviction that wages will fall as forecast and the labour market is tight, as well as noted that the market has brought forward the path for rate cuts and they will have to see in December if that was over-enthusiastic.
• ECB’s Nagel said they shouldn’t be too hasty in taking action on rates.
• Georgian President Zourabichvili said regarding the election results that they have been the victims of a Russian special operation and that Georgian authorities took away citizens’ right to choose, while she does not recognise the election results due to fraud and called for protests against the results. Furthermore, European Council President Michel said they call on Georgia’s central election committee and other authorities to swiftly, transparently and independently investigate and adjudicate electoral irregularities and allegations.
• Moody’s affirmed France at Aa2; Outlook revised to negative from stable.

Japanese Election

• Japan’s ruling coalition lost its parliamentary majority in Sunday’s election in which the LDP and its junior coalition partner won 209 seats with all but 20 of the 465 seats accounted for, which is short of the 233 needed for a majority although the ruling party may seek partners in an effort to form a government, according to reports citing Japanese press.
• Japanese PM Ishiba said the election results were very difficult, while he responded “That would be the case” when asked if he would continue in his current position despite the election results. Furthermore, Ishiba commented that they cannot allow any gaps in domestic politics amid very difficult security and economic conditions, while he added that they must go ahead with various measures including compiling an extra budget. Furthermore, Ishiba said he is not thinking at this moment specifically about a new coalition and will compile an economic stimulus package and extra budget taking into account various parties’ ideas.
• Japan’s gov’t & ruling bloc are to arrange to convene a special parliament session to vote on the PM on November 11th, via Kyodo.

FX

• USD is mixed vs. peers (softer vs. EUR, firmer vs. JPY) with DXY a touch lower but firmly on a 104 handle. Today’s docket is fairly thin, but picks up in the form of US ADP, GDP, PCE, NFP and ISM Manufacturing all due later in the week.
• EUR is firmer vs. the USD and the best performer across the majors in an attempt to claw back recent losses that dragged the pair as low as 1.0760 last week. EUR/USD has made its way back onto a 1.08 handle but is yet to threaten Friday’s 1.0839 peak.
• GBP is marginally firmer vs. the USD but with Cable unable to make its way above Friday’s high at 1.2999 and back onto a 1.30 handle. UK Budget will be in focus this week; Chancellor Reeves is expected include a series of tax hikes but ultimately be viewed as expansionary. For now, Cable is pivoting around its 100DMA at 1.2969.
• JPY is the laggard across the majors following the Japanese general election which has seen the ruling coalition lose its parliamentary majority. USD/JPY has made its way onto a 153 handle and is now at levels not seen since late July.
• Antipodeans are both flat vs. the USD. After printing a fresh multi-month low overnight, AUD/USD has pared losses and moved back above the 0.66 mark. NZD/USD remains stuck on a 59 handle.
• PBoC set USD/CNY mid-point at 7.1307 vs exp. 7.1311 (prev. 7.1090).

Fixed Income

• USTs are pressured by the removal of geopolitical risk premia though also find themselves off lows as the pullback in energy prices begins to weigh on yields and exert upward pressure on benchmarks; though, still very much in the red. US docket is front-loaded on account of the Fed, with 2yr & 5yr supply today serving as another bearish factor and likely explaining the relative. USTs are currently trading around 110-25 and off the lows of 110-18+.
• Bunds are on the back-foot given the aforementioned removal of geopolitical risk premia. Overnight pressure was also a function of ECB speakers, with Knot & Nagel both making relatively hawkish remarks; in recent trade, the complex has lifted off worst levels, given the continued pressure in oil prices; currently looking to test 133.00 to the upside.
• Gilts are softer in-fitting with the above but finding itself under slightly more pressure with the count down to the budget in its final stages. Gilts gapped lower by 71 ticks before slipping a handful further to a 95.52 trough.

Commodities

• The crude complex is under marked pressure after Israel’s retaliation against Iran targeted military targets and avoided petroleum or nuclear facilities. Attacks which caused crude to gap lower by around USD 3/bbl before slipping further to current troughs of USD 67.14/bbl and USD 71.00/bbl respectively for WTI & Brent.
• Spot gold is softer, as the metal is tarnished by the removal of some geopolitical premia from the market after Israel’s retaliation. Pressure which has taken gold to a USD 2724/oz base, still comfortably above the last two week’s troughs at USD 2717/oz and USD 2715/oz respectively.
• Base metals are under pressure despite the constructive risk tone. However, the pressure is relatively modest in nature with 3M LME Copper comfortably clear of USD 9.5k.
• China’s September YTD gold output fell 1.17% Y/Y to 268 metric tons and gold consumption fell 11.18% Y/Y to 741.7 metric tons, according to the Gold Association.

Geopolitics: Middle East

• Parties concerned (re. Israel) are looking into the possibility of resuming negotiations and meeting technical teams within days, via AJ Breaking.
• Israel conducted a military strike on targets in Iran early on Saturday and the military said the retaliatory strike has been completed with the objectives achieved, while targets included missile manufacturing facilities used by Iran in its attacks on Israel over the past year. Furthermore, a US official noted that Israel’s strikes were on military targets in Iran as opposed to oil infrastructure or nuclear sites, while Iran said the Israeli strike killed four people who all served in the country’s military air defence.
• Israeli PM Netanyahu said the Israeli air force hit hard Iran’s ability to defend itself and its ability to produce missiles, while he added Israel’s attack on Iran was strong, precise and achieved all of their objectives, according to Reuters.
• Israeli politicians inside and outside PM Netanyahu’s coalition lamented the strikes as not aggressive enough, according to The New York Times. It was also reported that estimates in Israel indicate Iran would need a year before it can rebuild its missile capabilities, according to Sky News Arabia.
• Israel’s Channel 13 quoted military officials that stated they do not rule out that the Air Force will have to carry out another military operation in Iran in which any further attack on Iran will focus on government targets and infrastructure, while they will not strike any Iranian nuclear targets in any new attack, according to Sky News Arabia.
• Israel expects that Iran would launch a counterattack against the Jewish state in response to its successful strike against Iranian military targets including missile production facilities, according to security sources cited by Jerusalem Post.
• Iran’s Supreme Leader Khamenei said Israel’s attack should neither be downplayed nor exaggerated and noted officials should determine how best to demonstrate Iran’s power to Israel, according to IRNA.
• Iran’s President said Iran is not seeking war but will respond appropriately to Israel’s attack, according to state media.
• Iran’s Foreign Minister said Iran has no limits in defending its territorial integrity, according to Tasnim. The minister also stated in a letter to the UN Secretary-General that Tehran reserves the right to respond to Israel’s criminal aggression.
• Iranian air defence said Israel attacked certain military centres in Tehran, Khuzestan and Ilam, while it successfully tracked and countered Israeli aggression although limited damage was caused to some locations, according to Reuters. It was also reported that Israel sent a message to Iran before the attack and warned it not to respond, according to Axios. Furthermore, Sky News Arabia quoted unanimous sources that stated Iran informed Israel through a foreign mediator that it will not respond to the strike.
• IRGC commander said the Israeli attack failed to achieve its goals and the failure confirms Israel’s miscalculation, while the commander added that bitter and unimaginable consequences await Israelis, according to Sky News Arabia.
• US President Biden said he hopes the Israeli strikes against Iran are the end and it looks like Israel didn’t hit anything except military targets. It was separately reported that a senior Biden official said the direct military exchange between Israel and Iran should be over and warned that there will be consequences for Iranian responses, according to Reuters.
• Israel conducted an airstrike that targeted some military sites in central and southern areas of Syria, according to Syrian state media.
• Hezbollah urged residents of more than two dozen Israeli settlements to immediately evacuate and said these settlements have become bases for the Israeli military and are now legitimate targets. Hezbollah also said it targeted Israel’s Tel Nof airbase south of Tel Aviv with drones, according to Reuters.
• Egyptian President Sisi said Egypt proposed a two-day ceasefire in Gaza to exchange four Israeli hostages with some Palestinian prisoners, while he added talks will take part within 10 days of implementing a temporary ceasefire to reach a permanent one. However, Israeli media later reported that two ministers rejected the proposal by Egypt regarding a Gaza ceasefire, according to Sky News Arabia.
• Iran’s Interior Ministry said ten Iranian border guards were killed in the attack in southeastern Iran in the latest clash with suspected Sunni Muslim militants.

Geopolitics: Other

• Russian President Putin said he hopes NATO heard his words about permitting Ukraine to fire Western long-range weapons at Russia and warned Russia will use a range of responses if Ukraine is permitted to strike into Russia with Western long-range weapons, according to TASS.
• Russian forces took control of the village of Izmailivka in Ukraine’s Donetsk region and captured Oleksandropil in eastern Ukraine, according to RIA.
• NATO said a high-level delegation from South Korea will brief the North Atlantic Council on Monday regarding North Korean troop deployment to Russia.
• Foreign and defence ministers from South Korea and the US will hold talks on October 31st.
• US State Department approved the potential sale of radar turnkey systems to Taiwan for an estimated cost of USD 828mln and the potential sale of advanced surface-to-air missiles system to Taiwan for an estimated cost of USD 1.19bln. It was also reported that China said it filed a diplomatic complaint with the US and reserved the right to retaliate after the weapons sales to Taiwan, according to Bloomberg.

US Event Calendar

• 10:30: Oct. Dallas Fed Manf. Activity, est. -9.2, prior -9.0

DB’s Peter SIdorov concludes the overnight wrap

For markets, the positive mood that dominated so far this autumn saw a mini-scare last week, as the S&P 500 fell for the first time in six weeks, while the bond sell-off continued apace. There’ll be plenty to test the market nerves with this week’s bumper set of data releases, including US payrolls on Friday, and earnings reports, with five of the Magnificent 7 reporting. Meanwhile, the tight US election campaign will enter its final stretch.

One market fear that has eased over the weekend is escalation risks in the Middle East. This comes as overnight into Saturday Israel carried out retaliatory strikes against Iran, but with these targeting military facilities and avoiding oil or nuclear installations. The targeted scope of the attack and the absence of an immediate retaliation signal have seen markets price out some of the geopolitical risk premium. Brent crude is down around -4.5% lower to below $73/bbl in Asia trading, reversing last week’s 4% rise. Gold is down -0.60% from Friday’s record high, while US equity futures are posting decent gains with those on S&P 500 and NASDAQ +0.50% and +0.65% higher, respectively.

Meanwhile, Treasuries are extending their recent decline. 10yr yields are +3.2bps higher to 4.27% as I type, their highest level since July, having now risen by 65bps from their September lows. This rise has come amid both rising term premia, partly driven by concerns about US fiscal deficits, and growing skepticism that the Fed will deliver rapid rate cuts given solid US data. Indeed, Fed funds futures for end-25 are up to 3.53% this morning, having priced out three 25bps cuts over the past six weeks.
With the Fed now in the blackout period ahead of next Thursday’s meeting, the data will be doing the talking this week, with the marquee release being the October payrolls report on Friday. Our US economists foresee a sizeable slowing in headline (+100k forecast vs. 254k previously) and private (+75k vs. 223k) payrolls. However, this envisages a nearly -70k drag due to striking workers (mostly Boeing) and the weather impact of Hurricane Milton. The weather effect may also push up average hourly earnings (+0.6% vs. +0.4%). DB expects unemployment to tick up a tenth to 4.2% amid rising labour force participation, but the risk is that it remains at 4.1%. Given the likely noise in the payrolls, the market may pay extra attention to Tuesday’s JOLTS report for September. Given the strong September payrolls, the hiring rate may pick up from the historically low 3.3% in August. The last JOLTS print also saw the quits rate, one of the best leading indicators of wage growth, fall to 2.1%, its weakest since 2015 if one excludes the first few months of Covid. Other labour market data will include the Q3 Employment Cost Index reading (DBe: +0.9% vs. +0.9%), which is the Fed’s preferred measure of wage growth.

In other US data, we will pay attention to the September personal income release on Thursday, which includes the Fed’s preferred core PCE inflation measure. DB expects core PCE inflation to rise by +0.29% (vs. +0.13% previously), its strongest since March. And Wednesday’s advance Q3 real GDP is expected to show continued solid growth (DBe +2.7% vs. +3.0% previously). On the fiscal side, we have the US Treasury refunding announcement, with borrowing estimates on Monday and the refunding policy statement on Wednesday. Our rates strategists’ preview can be found here.

Over in the euro area, the highlights will be the Q3 GDP print on Wednesday and the October flash inflation release on Thursday, with the latter preceded by the Spain and Germany CPI prints on Wednesday. Our European economists see headline euro area inflation rising from 1.7% to 1.9% but with core inflation slowing by a tenth to +2.6%, which would be its lowest level since January 2022. See our economists Inflation Chartbook here for more.

In the UK, the focus will be on the Autumn Budget on Wednesday. This will be the Labour Government’s first budget in almost 15 years and our UK economist previews it here. Over in Asia, we will have the latest BOJ decision on Thursday, where a hold is widely expected (see our Japan economist’s preview here). And in China, the official PMIs on Thursday and the Caixin manufacturing PMI on Friday will be closely watched to gauge the effectiveness of the stimulus measures outlined by Beijing over the past month.

It will be a bumper week for earnings, with more than 40% of the S&P 500 by market cap expected to report. Following on the blockbuster earnings report from Tesla last week, five more of the Magnificent 7 are reporting this week, including Alphabet (Tuesday), Microsoft and Meta (Wednesday), Apple and Amazon (Thursday). See the rest of the week’s earnings and data releases in the day-by-day calendar at the end.

Last but certainly not least, the US election campaign will enter its final weekahead of the next Tuesday’s vote. Over 40 million early votes have already been cast and the latest polls continue to show a very tight race. The FiveThirtyEight average gives Harris a 1.5pp lead in national polls, but with a 0.6pp lead for former President Trump on average across the seven swing states, all of which see leads of less than 2pp for either candidate. The RealClearPolitics betting average now has former President Trump with a 61% likelihood of victory. That’s the highest it’s been since President Biden dropped out of the race in July, though it has largely stabilised in the past week.

Sticking with politics, a key event over the weekend was Japan’s Lower House election on Sunday, which saw the LDP-led ruling coalition lose its majority for the first time since 2009, getting 215 out of 465 seats. With the main opposition CDP well short of a majority on 148 seats, this leaves a highly uncertain political situation. See our Japan economist’s reaction note here for a discussion of the key points to watch on how this uncertainty will be resolved.

Following on the vote, the Japanese yen is -0.77% lower against the dollar this morning, sliding past the 153 level and touching its lowest level since July. In response, Japanese stocks are rallying this morning with the Nikkei 225 and the Topix trading +1.72% and +1.38% higher, respectively, while 10yr JGB yields are 1.5bps higher at 0.95% as I type. Other Asian markets are showing mixed moves. Chinese markets are mostly lagging behind with the Hang Seng (-0.24%) and the CSI (-0.21%) trading in the red, though the Shanghai Composite is up +0.17%. Elsewhere, the KOSPI (+0.79%) is also trading decently higher whilst the S&P/ASX 200 struggling to find direction in early trading with key inflation data due later this week.

Staying on Asia, data over the weekend showed that industrial profits in China fell -27.1% in September from a year earlier, marking the largest decline this year.

Recapping last week now, markets finally slipped back after a relentless run higher over the preceding weeks, with the S&P 500 ending a run of 6 consecutive weekly gains. By the end of the week, the index was down -0.96% (-0.03% Friday). The Magnificent 7 outperformed, rising by +3.49% over the week (+1.27% Friday) led by Tesla’s +21.97% gain. By contrast, the small cap Russell 2000 fell -2.99% (-0.49% Friday), marking its biggest weekly underperformance versus the Mag-7 since early July. Outside the US, equities mostly struggled, with Europe’s STOXX 600 falling -1.18% (-0.03% Friday), and Japan’s Nikkei down -2.74% (-0.60% Friday).

Sovereign bonds also lost ground last week, and US Treasuries fell back in particular. By the end of the week, the 10yr Treasury yield was up +15.7bps (+2.8bps Friday) to 4.24%, while the 2yr yield was up +15.8bps (+2.6bps Friday). Friday’s move higher was supported by the University of Michigan’s final consumer sentiment index for October, which saw its highest reading in 6 months (70.5 vs. 69.0 expected). European sovereign bonds also lost ground, with yields on 10yr bunds up +10.8bps last week, whilst those on 10yr OATs were up +14.7bps.

Authored by Mike Shedlock via MishTalk.com,

Biden repeatedly acts like he is above the law. So who’s the threat to Democracy?

Biden Tries to Overrule Courts a Third Time

The Wall Street Journal reports Biden Snubs the Courts Again on Student Loan Forgiveness

‘That didn’t stop me,” President Biden declared after the Supreme Court blocked his $430 billion student loan write-off in 2023. It sure didn’t. After striking out in court with three debt forgiveness schemes, the Administration on Friday unveiled another. Take that, judges.

The Education Department says its proposed rule would authorize forgiveness for some eight million borrowers experiencing “hardship.” Under the rule, the department can discharge debt if it calculates a borrower has an 80% likelihood of defaulting on payments within the subsequent two years based on 17 factors such as income, debt balances and assets.

The rule would effectively let the department forgive debt of any borrower any time it wants. The administration says high child-care costs could qualify as a hardship. How about high auto loan or credit-card payments? Did someone say moral hazard?

In April the department released a plan that cancels accrued interest for 25 million borrowers and forgives debt of those who entered repayment over 20 years ago or who “enrolled in low-financial-value programs”—meaning, forprofit colleges. The plan also promised to waive debt for borrowers with a “hardship.”

A federal court last month blocked that plan, but the department says its new rule “would operate separately and distinctly.” Courts are playing whack-a-mole with the Administration’s debt write-offs that end-run Congress, which never authorized such broad-based debt forgiveness.

Such lawlessness is one reason so many Americans discount the left’s assertions that Donald Trump endangers democracy. Mr. Biden acts like he’s king, and Democrats and media voices cheering him on have no standing to object if Mr. Trump follows the Biden precedent.

Queen Harris

Please recall that when Harris was asked what she would have done differently than Biden, she could not come up with a single thing.

She supports Biden’s energy policy to ban gasoline engines, Biden’s immigration policy, the Inflation Reduction Act, Medicare for All, and student loan forgiveness.

She lied about supporting fracking, backed off that, and now the lie is back on again.

The NYT Has Another Great Poll for Trump

If you missed it, please see The NYT Has Another Great Poll for Trump, Tipping Point is Immigration

In yet another display of momentum for Trump, the New York Times has Trump tied nationally.

On October 21, I commented October 21: In California, Harris Is Down 21 Percentage Points With Latinos vs 2020

And while the The Immigrant Crime Spree is Real, Not Imaginary, Thank Harris and Biden that’s not really what the backlash against immigration is really about.

If people were not struggling with shelter, food, insurance, etc., they would not be so upset with immigration.

The backlash against immigration is really a backlash against inflation and the economy. That is what’s behind the shift towards Trump.

And it’s why this election is not the tossup everyone says it is.

Finally, Trump is Trump, but Harris is nothing but Biden with a very annoying laugh.

Today’s journalists, much like trial lawyers, have a habit of cross-examining their subjects with the intent to find weaknesses rather than find the actual truth of a matter.  They also often ask questions already knowing what kind of answer they’re going to get.  It’s not about getting the answer, it’s about planting seeds.

For example, every time the media presents a “question” regarding alleged collusion between Donald Trump and Vladimir Putin the goal is not to get an honest answer, but to repeat the conspiracy theory as often as possible so that the accusation remains embedded in the collective consciousness.  

This was once again the case at the recent BRICS Summit held in Kazan, Russia.  Asking tough questions is one thing – but presenting accusations without any evidence to back them is another.

The far-left media have been debunked at every turn when it comes to the Russiagate narrative.  Both Trump and Putin have denied any relationship and all the “evidence” that supposedly ties Trump to Putin has been exposed as fabricated.  After nearly a decade of intense scrutiny if there was any legitimate collusion between Trump and Russia it would have been found by now. 

Putin quickly pointed out that inquiries by US officials have found no collusion involving Trump and that the claims are nonsense.  That should be the end of it, but again, the western media is not interested in facts, they’re interested in narratives.

The establishment has also aimed its crosshairs at Elon Musk this week, with the Associated Press claiming an “anonymous source” confirmed to them that Musk has had regular phone calls with Vladimir Putin since 2022.  Again, none of this is supported by concrete evidence and the goal of the media is simply to plant the idea out there in the minds of the public as if it means something nefarious is afoot.

Musk is a private citizen, not a government official, and he has the right to talk to whoever he pleases.  It’s not surprising for an international businessman to have contact with world leaders for any number of reasons.  Not to mention, the US is not at war with Russia (officially), but the media is acting as if this is the case.

Putin talked extensively on the reasons for the Russian invasion of Ukraine, arguing that it was NATO involvement in sparking the Maidan Revolution in 2014 that led to Russia’s decision to go to war.  He also asserted that foreign military elements from NATO countries are heavily involved in Ukraine’s defensive efforts on the ground, stating that “we are aware” what’s really going on. 

The Russian leader seems to be suggesting here that if Ukraine can invite foreign assets into the war, then so can Russia.

As for the presence of North Korean troops in Russia, Putin doesn’t deny it.  Satellite images and some leaked video seem to show North Korean soldiers in training areas near the eastern coast of Russia, but this is thousands of miles away from the Ukrainian front.  There is no evidence that North Koreans are currently fighting in Ukraine.  If this ends up being the intent, then yes, it would be considered an escalation by NATO, but not necessarily a rationale for NATO troops to enter the war. 

Such a move would immediately trigger a world war; an outcome which the Ukrainians are certainly desperate for as their defensive lines collapse, but not an outcome which the majority of Americans and Europeans are willing to accept.     

Authored by Kane McGukin via BombThrower.com,

We’ve seen this movie before. This version is the battle of digital gold over power regimes past their prime.

In the early 1900’s, specifically in the 1920s, Benjamin Strong orchestrated deals around the world to have leaders send their gold to the United States for “safe harbor” and to balance capital flows for the “safety” of the system. In hindsight, this power play put the US at the center of an emerging fiat currency-based monetary system. One was built on the backs of US industrial capitalists, financed through international political friendships, and by way of war; conflicts in capital markets, and hand-to-hand combat. This intelligent move placed the US at the helm of our global monetary system.

As the chess board tilted, tensions rose and global wars broke out.

Some countries stood in the shadows funding by proxy, while others shot from the trenches in hopes of preserving their political views of how future power structures should look. As the web of relationships untangled global capital flows, it reordered the holders of power and money strewn across the monopoly board. Countries made calls to the US to have their gold returned. To appease, Team Strong made many overseas visits and promises to ensure their gold was in safe hands. However, the US rarely returned the base capital asset, leaving others in a jam.

Upon Strong’s death, no one knew the inner workings of his plan. Nor did they have his deep global political persuasion and ties to carry it on any longer. Without Strong’s skill as a puppeteer, world financial markets and its political players found themselves in a precarious situation. Leading to the greatest ravaging experienced in some time. The Great Depression was an event unlike any other. Leaving no stone unturned as it traveled across the globe. Only to finally end in one great global war (WWII). The ending of 31 years of financial, economic, and military might, shuffled the decks and set the table for a new monetary regime guided by a Bretton Woods system of currency pegs. All money movements now hinged on gold stashed in vaults within US borders, while opposing the views and warnings of Triffin’s Dilemma.

As anger subdued and tensions came down, the fix was in. Realignment was in order so that Bretton Woods could provide all parties access to money once again. The monopoly board was set for another round of play. New leaders, deals, and tiers of countries to shape a new level of understanding as to how the game would be played. The ground rules established how a new currency system would work.

An old story this is, though it sounds all too familiar when relating it to our current state of international and monetary affairs. Once again, finding ourselves at a societal inflection point.

Caught Between the Throws of Money and A Few Men’s Greed.

Reflecting on our past highlights the critical importance of understanding the value of sound money assets. These assets are essential for advancing to a digital monetary system that powers our modern lives—a transition that requires time and a complete shift in thinking.

The Kings and pawns alike are seeking access to new rules and a new monetary base that will provide power and control for the next 100 years. Citizens watch over streams of media as major political players battle behind closed doors. From X (formerly Twitter), to Meta (formerly Facebook), Tiktok and Nostr, pitches are crafted for the open airwaves of the internet. Each side casts memes and propaganda across every news and social media network intending to shape the minds of the next generation of leaders. What’s the goal? Just the same as it was in the early 1900s, the intention is to corner the free market of money and power.

“A man generally has two reasons for doing a thing. One that sounds good, and a real one.”

– JP Morgan

Over the span of the last 20 years our battles have become increasingly cyber in nature. As a result of these conflicts, we’ve seen Bitcoin move like gold of the past. We’ve watched Bitcoin Hashrate migrate from China to the US, where exchanges like Coinbase, Gemini, and Kraken have been constructed to power the future of money, rates, lending and barter across the bits and bytes of our internet pipes.

The Fix for the Next Round of Global World Order Is Almost In.

Big banks, technocrates, Wall Street, and political clout are all jostling for their version of how the future should be told. The difficulty adjustment continues to ratchet as the momentum of our new market places shift.

The transition from guns and army’s to a world of bots and DDOS attacks took time to run its course.

What started with credit cards and advanced technology research projects at the Defense Advanced Research Projects Agency (DARPA) in 1958, led us to the internet, protocols, and partial means of transferring digital money by consensus. With the rise of information and consumer technology, we found ourselves in a digital ecosystem with limited access or control of our money. This new revolution in the digital age gave way to industrial ideals and promoted a shift to a more connected and intelligent world.

As foundations for a new digital financial system have been laid, global relationships were infiltrated as new players emerged. Shifting from ideals of our past monetary fathers, Benjamin Strong (US), Montagu Norman (England), Hjalmar Schacht (Germany), Emile Moreau (France) to new forms of intelligence guided by The Five Eyes (US, UK, Canada, Australia, New Zealand).

When we crossed the chasm of the 21st Century, powers shifted. E-commerce and social platforms steered the attention of business and consumers in such a way that new tools for psychological research were necessary to keep up. From this state of need, the Intelligence Advanced Research Projects Activity (IARPA – 2007) was born to pick up where DARPA left off.

As populations warmed to the ideas of digital scarcity; Bitcoin has risen. Playing the role of the fastest horse for sending sound money over our internet rails. With the momentum of the race shifting, nations are back to warring again. Leading to citizenry shouts of spooks and kooks against anyone attempting to triangulate their location and affiliation.

At this juncture the board is set for players to make their move. A few critical questions should be asked. The answers will dictate the freedoms or draconian measures that follow.

• What Bitcoiner is playing the role of Ben Strong?

• What Bitcoin influencers are Norman, Schacht, and Moreau?

• Has the Digital Bretton Woods conference taken place? If not, then when and what parties will be invited to attend?

These are the private keys that will decide our future. The future of money, power, and control.

New terms and players will dictate the price of properties, utilities, and digital rails that will be traded so we can all transact in a civilized manner. This is a new story with new faces, technologies, and tools. However, it is the same story of money that spans across human history. One that repeats in unison with the 4th Turnings that dictate our times.

*  *  *

Get on the Bombthrower mailing list here and receive a free copy of The Crypto Capitalist Manifesto and The CBDC Survival Guide when it drops.   Subscribe to Kane McGukin’s Substack here.