The U.S. Is A Complete Financial And Political Fraud

Perhaps most emblematic of this complete fraud and corruption that has engulfed our system is the spectacle of Hillary Clinton’s candidacy for President.  She is clearly the front-running candidate for the Democrats and likely would win a head-to-head against any of the Republicans.   How is this sanely possible?

Anyone who bothered to pick up a newspaper just a few times per year since 1991, when Bill was first running for President, knows that Hillary is probably the most corrupt attorney and politician in the history of the country.  Whitewater and her “successful” foray in cattle futures (anyone remember those?) don’t even garner scrutiny anymore because her list of dirty laundry is so long and filthy.   Needless to say, Hillary Clinton should be in front of a firing squad – not in front of Congress justifying her role in Benghazi and the likely next President of the U.S.

Anyone who supports her candidacy is either woefully ignorant, mildly retrarded or insanely naive.   I just did quick glance at AMZN’s latest earnings report.  The stock is up 10% to an all-time high on what is exceptionally misleading “headline” earnings numbers.  Yes, it “beat” its EPS and revenue “bogeys” but the entire stock market seems to be giving Amazon a mulligan on the truth.

One again the Company’s business operations failed to generate cash flow.  Directly from its 10-Q’s state of cash flows, the only reason AMZN’s operations produced a positive cash inflow is due to the fact that the Company significantly stretched out its payables – this is despite the fact that its receivables declined – and the Company took in $1.7 billion in Prime and gift card deposits.  We know Bezos ran two separate heavy Prime promotions during Q3, including one that incorporated a big discount to the “membership” fee.  AMZN has admitted that it loses at least $2 billion per year on Prime.

Furthermore, included in AMZN’s numbers is only about half of the amount that it pays out stock-based salary compensation.   I discuss this aspect in-depth in my report.  If AMZN were forced to expense up front for GAAP purposes the entire cost of its stock-based salary payments, it would wipe out completely AMZN’s reported operating income of $409 million and turn the GAAP-based “good” news into a loss.

Amazon’s stock “aura” is the stock market equivalent of Hillary Clinton’s Presidency:   Complete unfettered fraud and deception.  By the way, insiders took advantage of the price of the stock and literally dumped shares during Q3, mostly during August.

The September existing home sales report:   I’ll have more to say on this soon, but the National Association of Realtors statistical Houdini’s managed to convert a steep 6% “unadjusted” drop in monthly home sales from August to September into a “magical” seasonally adjusted 5% annualized rate increase.

On average and in general, this is almost impossible because going back to 2005, existing home sales have declined from August to September every single year except 2013.   The NAR refuses to disclose its seasonal adjustment calculations as I have emailed them several times asking for clarification.   It can therefore only be considered a completely corrupted metric.

The stock market appears to headed for all-time highs again, this is despite that the fact that just about every single non-Government produced macro economic indicator which shows that the economy is already in a recession.   The Government debt limit is about to be raised close to $20 trillion.  Based on Gallup surveys,  the average consumer has a negative outlook for the economy and plans on reducing their monthly household discretionary spending.

McDonald’s stock has bounced 17% since September 1st, despite the fact that its revenues are in terminal decline and the franchisees have expressed a gloomy prediction for the fast food chain’s future:   LINK.    The Company reported a “beat” of the expected earnings but this was achieved through stock buybacks  and a 42-cent charge for tax reserves taken in Q3 2014, both factors of which presented the illusion that MCD had earnings growth this quarter.   But its revenues, like every other big American company, are declining.   Without the GAAP gimmicks, MCD’s EPS would have dropped 15%.  Yet, the stock is at an all-time high.

The U.S. financial system is the biggest, most fraudulent Ponzi scheme in history.  When you peel back the layers of lies, deception and fraud, the U.S. is a crumbling empire.   Go back and rewatch some of the footage of Hillary Clinton’s facial expressions while she’s being “grilled” by Congress.   It’s hard for me to even look at the modern Madusa’s face without turning away – all I can see are venous snakes coming out of her skull in place of what should be hair.  Hillary Clinton is pure evil incarnate.

For me Hillary Clinton represents just how far down the road to doom the United States has traveled.

22 thoughts on “The U.S. Is A Complete Financial And Political Fraud

  1. whats amazing is on the McDonalds data, anybody can read it in 3 minutes at the website press release.

    Its completely ignored in the market yet McDonalds does refer to in in the notes.

    Part of the reason for MCD decline is my kids will not let their young kids near MCD-an others.

    Perhaps as big a surprise was CMG which used to have huge growth but now its growing only nicely at I think a 12% rate–but the market expects 30% for CMG.

    Amazon grew sales by 5 billion. Amazon for the most part takes revenues from Walmart and others like best buy and best bath and beyond, Target etc

    and Amazon is using low prices and cheap shipping to get that. In old terms, almost everything AMZN does is a loss leader.

    Microsoft reported higher earnings on lower revenues.Business model is to charge an annual fee for its products and upgrades. Means people like me might be forced to pay up annually rather than still using office pro 2003 forever.

    GOOG–no problem, It consistent reports , err does not report 1.5 billion of non recurring expenses, never reports those expenses, not even a timing difference.Facebook also does a lot of that.

    What ever happened to the DCF method of valuing proposed investments. Amazon woudl be valued at $50 a share if you take away the perpetual hockey stick.

    1. Hasn’t it been a BS Sham since the “dollar” was based on Nothing? Since promissory Notes was the creation of “money”… since derivatives.. or fractional reserve banking… Nixon.. FDR….Wilson…….. Its been BS (babylonian [debt] slavery) for 4300 years ….

  2. Listening to clips of the Benghazi testimony, you’d think Elijah Cummings is a real fiscal conservative for all the lip service he gave to taking care of taxpayer money. I don’t think I’d ever heard so much concern for the $4.7 million dollars spent on the investigation. I’m sure he’ll put just as much diligence into whatever spending resolution finally passes and will surely vote against a debt ceiling increase.

  3. The problem regarding AMZN is that all the idiots applaud “the fine numbers”
    It doesn´t matter if guys like you do a first class audit of their numbers because all the rest don´t care about manipulation or fraudelent accounting as long as the stock price goes up.

    It seems to me like in America it doesn´t matter how you got hold of your money, maffia, robberies, accounting fraud as long as you are rich and wealthy we don´t ask any questions because “we are so fucking impressed” and as a billonaire you are a holy man.

    And that´s why the fucking disgusting scumbag Bezos is getting a free ride without any questions asked even though his company is in line with Enron.

    1. This is the truth. The problem goes much deeper than the elite. The public goes along with it cause everyone loves a “winner”. In the religion of consumerism those with the most cash are the clergy, adored by the flock no matter how many alter boys they go through.

  4. Dave, I hate to say it , but none of this surrealism will finally sink in until enough people (that being a good portion) finally realize that just about everything of value has been stolen by TPTB. The theft is well underway and has been since the early seventies, although the plans were in place long before then. Don’t think for a moment that the power brokers didn’t know the final consequences of a debt based monetary system. They knew it in spades. That’s why there is a petro dollar, that’s why there is a European union, that’s why there are derivatives, that’s why there is the Central Bank System headquartered in Basel Switzerland, that’s why the west has transferred it’s gold east or into the hands of power brokers, that’s why ZIRP and QE and soon likely some sort of ban on cash, that’s why every head of state is connected by religious affiliation and training to certain kinds of institutions (check it out-start with the Clintons and Georgetown University), that’s why the rule changes of FASB and Dodd-Frank, that’s why the NSA and I guess I could go on, but you get my drift.
    The capper for me was your excellent article on the aberration regarding reverse repos and Titus’s excellent video on the Fed and it’s surplus reserves alchemy. I’ve been grinding on that since I saw it and cobbling together other pieces of the puzzle which I’ll leave out for brevity’s sake. As long as you can post collateral, where’s this liquidity problem so many commentators harp on about? Suffice it to say, and in lieu of the fact that the US is apparently now going to be bailing out Puerto Rico, I rest my case. Here’s my take on what’s occurring.
    The Fed is NOT TRAPPED as most commentators suggest. We’re trapped because at the end of the day, they will own EVERYTHING regardless of it’s value. For Christ sake they bought it for nothing (QE). Their current ZIRP and NIRP , PM manipulation and PPT antics are just other tactics to achieve the same end. Eventually, assuming no revolution, they own everything and they got it for nothing. The Clintons, this new shill in Canada Trudeau (btw, his father was the criminal that took away the Bank of Canada’s role of money creation and turned it over to the private banks) this new Australian PM, Merkel, pick your poison, are simply put in place to obfuscate the greatest crime in recorded history.
    Finally, in progress will be the evisceration of pension plans, asset values, currencies, investment accounts and the like, but remember, one person’s loss is another’s gain and those gains will end up on the balance sheets of the money masters. That’s likely when we’ll finally see the reset which of course will be backed by the resources the TPTB own.

  5. Every time I see that biyatch H. Clinton I have to throw up!

    …the Company significantly stretched out its payables…
    Just the normal financial engineering that has become the new normal fraud.

    1. Exactly! This is an honest reflection of the collective American psyche. Whether via obtuse or apathetic minds, aiding and abetting a psychopath is clearly seen as a definition of insanity.

  6. Thanks Dave. Sometimes I just can’t believe what I’m witnessing. I have noticed that the companies that actually make a real product have declining revenues and you can now add IBM to that list. Yet the companies who sell “technology” seen to do much better. It is such a joke that it would be hilarious if not so tragic. However, we have to continue to wait or the day it finally reconciles.

  7. An honest reflection of the collective American psyche.
    Whether from obtuse or apathetic minds, aiding and abetting a psychopath is clearly seen as a definition of insanity.

  8. Whoever is able to do it, pack up your bags and move to Switzerland or Singapore. There will be very narrow time left to leave this dishonest, decrepit cesspool. Seek to get out of town. Right now, they’re shutting off public water in Detroit, but in coming years that will be the case for the entire US.

  9. Following today’s actions in the world’s stock markets …. It is now evident that the FED and all major central Banks are major buyers of stocks in the world major stock markets and that these same stock markets will not be allowed to suffer any serious declines over the next few years or the The Financials systems of all of these countries will immediately collapse …… That will mean that as long as these banks provide support to these stock markets ….. It’s ok to go swimming ! But God help us when the Party is over because the eventual correction will be a real doozy based on the mis-pricing of all assets …..

  10. So let me get this shit straight, more terrible macro economic data. Stocks go up.
    Fake ass earnings reports from tech bubble companies using non-gapp

  11. Interesting…when you consider it’s an etf and others are probably copying portfolio allocations…

    The Fastest-Growing New ETF Costs More Than a Mutual Fund
    Advisers are pouring money into this momentum strategy.

    Out of more than 500 exchange-traded funds launched in the past three years, the one that has taken in the most cash charges an annual fee of 0.94 percent.

    Wait, what?

    That’s not a typo. The First Trust Dorsey Wright Focus 5 ETF (FV) has accumulated $4.2 billion in assets in a little more than a year and a half, taking in money every month. That’s despite having a fee that is far higher than even the asset-weighted average mutual fund fee of 0.66 percent.

    So why are they flocking to FV?

    One word: convenience. FV has essentially ETF-ized a popular sector rotation strategy from Dorsey, Wright & Associates, an investment firm with long expertise in technical analysis. Sector rotation strategies aim to ride the coattails of hot sectors. FV ‘s strategy is to select five of First Trust’s sector and industry index ETFs based on their relative price momentum and to weight them equally.

    Many advisers were already following Dorsey Wright’s sector rotation model—they had corporate subscriptions to Dorsey Wright’s guided model portfolios—but apparently like the convenience of an ETF that does the work for them.

    FV allows advisers to offer aggressive clients its sector rotation strategy in a tax-efficient, rules-based index ETF. The appeal of this to advisers explains the steady flows into the ETF. Advisers tend to invest money on a regular basis, despite market conditions, while institutional investors tend to jump in and out of ETFs, depending on what’s hot.

    This too will pass…and crash…

  12. Spoofing trial to shine light on secret world of high-frequency trading

    In less time than it takes you to read this sentence, Michael Coscia could make more money than most Americans earn in an 8-hour day.

    If you blinked, you miss it.

    But if you slowed down time, sliced a second into a thousand tiny parts, and looked at a span of just 65 milliseconds — about as long as it takes a hummingbird to flap its wings once — you’d see the unmistakable evidence of a sophisticated criminal at work, the feds say.

    That’s because Coscia, 53, was allegedly a “spoofer,” a high-frequency trader who used computer algorithms to rip off rivals in markets where business is conducted at the speed of light.

    His scam using huge spoof orders for commodities futures contracts to goose prices on the Chicago Mercantile Exchange netted him $1.6 million in just three months, according to a federal indictment, helping fund an anonymous but comfortable lifestyle that included a waterfront New Jersey mansion.

    Coscia, of Rumson, N.J., is due to find himself thrust into the public eye Monday when he becomes the first criminal defendant tried under anti-spoofing legislation included in the 2010 Dodd-Frank Act.

    Expected to be closely watched on both Wall Street and LaSalle Street, the weeklong trial scheduled to start in federal court in Chicago is an important test of that law, which was also used to charge Navinder Sarao, the alleged spoofer authorities say is to blame for 2010’s “flash crash.” That episode temporarily wiped nearly $1 trillion off the value of U.S. equities in a matter of minutes.

    Coscia’s trial comes at a time of increased public scrutiny of high-frequency traders. Democratic presidential front-runner Hillary Clinton’s campaign earlier this month said some traders are engaged in a “harmful” practice that threatens the wider economy and should be subjected to additional taxes.

    The case also promises to shine a light on a secret world, one that accounts for about 50 percent of all trading volume and has helped mint the fortunes of some of Chicago’s wealthiest and most generous political campaign donors.

    Among the purported victims expected to testify against Coscia is a representative of Citadel, the giant hedge fund founded by Illinois’ richest person, Ken Griffin.

    Mayor Rahm Emanuel has also made it a priority to protect high-frequency traders on the CME, a group he has described as vital to Chicago’s economy.

    Earlier this year, the Tribune documented how he flew to Washington, D.C., in 2011 to lobby the Commodity Futures Trading Commission against rule changes affecting high-frequency traders, including three trading firms that also attended the meeting and were major donors to his campaign fund.

  13. They are getting ready for the fraud negro Muslim to be declared president for life. His numbers must look good for that to ease the pain.

    Now, I know this won’t get printed because I said the negro was a Muslim. (He is).

  14. To Bill’s reply. What if the basis for deciding which companies would be charged for excess cash assets by the TBTF banks, were the same companies who were being targeted by the banking/hedge fund cabal, for board room control, as they strengthen their positions before buyback shrinkage. Clearly, this is a relatively stealth assault, most don’t see, as the insider Lucifer led cabal take over the world with their monopoly money scam.
    I don’t see the bible quoted much, but how about this one: ” For what is a man profited, if he shall gain the whole world, and lose his own soul?” Wisdom is knowing which of those is most important—and one is fleeting (trans-humanism not withstanding), while the other is for ever–and ever–and ever. Unfortunately, a lot of people have chosen to ignore truth, and follow the false light bearer, as Lucifer is making his age ending push for control.

    That will be a relatively short lived endeavor, until the wrath of the Lamb/Jesus smashes him and his dupes for the mess he is making, with his NWO minions. It will be done by means of the Lord’s solar system bodies, which will re-contour this planet. Now you know why governments are spending fortunes going underground, but as Amos 9:2 would tell them—it will be to no avail there or anywhere.

  15. What is hard to believe is that Hillary’s supporters think that she ‘won’. This despite the e-mails that show conclusively that she lied to the public about the true nature of the Benghazi attack. I expect to see the DNC take out Sanders similar to what the Republicans did to Ron Paul in 2012.

    1. Hillary supporters are mentally retarded. They’d vote for a monkey if the monkey promised free rim jobs for everyone who voted for it.

  16. You may be right in your financial analysis. You may also be wrong. I dont know. But one thing I know for sure, your characterization of Hillary Clinton makes me think your are a foolish person and probably the devil incarnate himself! I can’t trust you as it’s not reasonable for one human to talk about another normal human being like that.

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