Obama’s stumping in... Texas? Glenn chats with Gov. Rick Perry

On radio this morning, Glenn interviewed Governor Rick Perry (R-TX) about President Obama’s impending trip to Texas to kick off his job creation tour. You might be asking yourself, why in the world would the President go to a state that basically proves his economic theories don’t work?

Well, according to CEOs polled by Chief Executive magazine, Texas is the most business-friendly state in the U.S. based on a criteria of taxes and regulations, workforce quality, and living environment. Considering President Obama can use all the job creation advice he can get, Texas is probably a good place to start his tour.

Glenn and Gov. Perry talked about the policies that have allowed Texas to become a hub for new business and entrepreneurship, in what is still a very difficult economy. You can read the full transcript of the interview below:

GLENN: The president is going to meet with our own governor here in Texas, the governor of the great State of Texas, Governor Perry. I believe the last time that he was in town, the president got a letter from Governor Perry, and didn't he reject it or he just kind of brushed it off, I believe? We have Rick Perry on the phone now. Hello, Governor, how are you, sir?

GOVERNOR PERRY: Glenn Beck, good morning. It's a beautiful day in Texas. Thank you, sir. Of course, you already know that.

GLENN: Tell me, wasn't it the last time that you saw the president, didn't you give him the letter on the tarmac?

GOVERNOR PERRY: Actually the last time I saw the president, he was in Waco for the West Memorial for the EMTs and the firefighters that we lost there with the tragic explosion.

GLENN: Who was

GOVERNOR PERRY: The president was very civil and very appropriately gracious, but the time that we met on the tarmac in Austin, yes, I handed him the letter asking him to take a look at the issue of our border and how to secure the border, and we never heard back from the president directly. Now, one of his staff persons wrote a letter but, you know, you the key is the president's coming to Texas hopefully in good faith to learn how to create jobs and have a better place in America for a training ground for the president to learn how to do it right.

GLENN: Well, if he wants to learn how to create jobs or if America wants to learn how to create jobs, it's really quite simple: We just stop electing or hiring to put in the cabinet Marxists.

GOVERNOR PERRY: Well, in Texas we've got that figured out.

GLENN: We do? Okay, good. I didn't know. It seems to be a disease that is spreading all over the country. I didn't know.

GOVERNOR PERRY: You know, if you really want to be honest, and don't, you know, try to make some political statement, if results are, I mean just a really scientific look at the states and allow the states to be the laboratories of innovation and say that there are these 50 laboratories out there, Glenn, then who is it that's actually doing this right? So if the result is the creation of jobs which allow people freedom to live their lives as they see fit.

Now, certainly freedom to fail at an effort, but freedom to be unlimited in what you can what you can achieve and that's, to me, what America's really all about. And so if you look at it, from a just cold, scientific standpoint, where is the place that's created the most jobs both, you know, percentage wise and numbers in jobs in the last five years? Texas added almost 500,000 private sector jobs while this country, this entire country lost over 2 million private sector jobs. That's from March of '08 through March of 2013. 6.4%.

GLENN: Here's the problem. And Rick, you know I love you and I moved here because of the freedom, but we're having these companies move in and I'm glad to see them move in we have these companies move in and they are bringing all their voters from California and everywhere else and I'm afraid Texas is going to turn into Colorado. We need to have a big sign here someplace that says it's the freedom that creates jobs.

GOVERNOR PERRY: Yeah, that's an interesting observation, but I will suggest to you an erroneous observation for a couple of reasons. Number one, Colorado was never this hard red state to begin with. Colorado always had some liberal tendencies, and frankly had there not been an error made in Colorado with the gubernatorial candidate Scott McInnis back two, three years ago, he would have been elected and you would not have seen Colorado doing some of the things that they're doing today that tend to be substantially blue. But the key is the people that we're bringing to the State of Texas, they're givers. I mean, these the takers are staying in Colorado, Colorado or, you know, California or Illinois. They know not to come here and expect government handouts to be the answer. There are people that are coming here, want to be free from overtaxation, overregulation, overlitigation and expect to find a skilled workforce so that they can fill the jobs.

GLENN: Right, right. I'm not wait. You're misunderstanding me. I'm not saying that the companies are. I'm saying that the people who are moving here for those jobs, they're coming from California saying, "Something's wrong with California. It's all screwed up." And then they are coming into our communities and they are like, "I love, Texas. Of course, I'd like it to be a little more like home in California." And I'm afraid they will start voting for the same things that they were voting for in California. I mean, we need some sort of campaign that, you know, is going through the State of Texas that people understand when they move here, what makes it great is the freedom that we have. Because I know the companies understand because the companies, I moved my company down here and everybody knows we're moving here for the freedom, and my company gets it and my employees get it. But I'm afraid that there's, you know, people that come in with a lot of employees and they'll just move them all from California and the employees are just like, "I like California. Of course, it was all screwed up, but my company moved." We don't want we want to change their hearts and their minds on how to vote, and I'm not talking about Republican/Democrat. I'm talking about small government.

GOVERNOR PERRY: Freedom. We're talking about freedom.

GLENN: Right.

GOVERNOR PERRY: And I totally agree with you from the standpoint of it is our responsibility to teach people. We start teaching Texas history at a minimum in the seventh grade. Generally when you hit the ground here, you start learning about this state, the history of this state, the freedom, believing and fighting people that helped develop this state. But I think people come here and they are open to that message of freedom and they are fleeing places that are oppression from a tax and a regulatory and a legal standpoint. So I think they are open and I think you make a good point, but it's our responsibility as citizens and our responsibility as Texans to educate people every opportunity. I hope here in the next couple of hours, I have the opportunity to educate the president of the United States about freedom and about how powerful it is in the State of Texas and if people reflect that in this great state.

GLENN: (Laughing.) I'm sorry. I just can't get past that.

GOVERNOR PERRY: There's a little

GLENN: I just can't get past, I'd love to teach the president a little bit about freedom. Oh, I wish you the best today. I don't know how you do it, but I wish you the best, Governor. Thank you so much.

GOVERNOR PERRY: Hey, listen. You take care of yourself. By the way, great job down in Houston this last weekend. It was an incredibly successful convention for the National Rifle Association and a good weekend for the Second Amendment.

GLENN: It was. It was. Thank you very much, Governor. I appreciate it.

GOVERNOR PERRY: God bless you.

GLENN: Governor Rick Perry of Texas.

Glenn created "The Senate Fails to Condemn INFANTICIDE" in response to the Senate not passing Nebraska Senator Ben Sasses' bill banning infanticide early this year. In an effort to help support pro-life charities, Glenn first posted this for sale on eBay before being banned multiple times before we finally had enough and put it up for sale on bidpal.net.

At the time of this post, the bid was up to $4,700 — but we can do better than that. Please help us raise money for a good cause, you don't even have to display it anywhere in your home, you can just keep it in storage or something! If you want this priceless piece created by one of the most influential people in the world of art, place your bids here.

Can you remember the economic crisis of 2008 and how you felt when the news broke that Lehman Brothers had collapsed? I have found an economic threat that everyone needs to be aware of, so you can prepare yourself in case we see another 2008 type collapse. I am going to present the evidence to you and I urge you to verify everything and to form your own opinion.

What is that threat?

It is a bank called Deutsche Bank. They are by far the most dominant bank in Germany which is the world's fourth-largest economy. In 2018 they had €2.08 Trillion worth of assets and the second-placed bank (DZ Bank) had €506 Billion worth of assets. To show you how dominant this bank is, they have more assets than the 2nd, 3rd, 4th, 5th and 6th sized banks combined.
When we review a business there are three key parts to analysis:

  • Market sentiment
  • Business numbers
  • Technical Analysis

Market Sentiment

Deutsche Bank has a long history of potential scandals including going all the way back to World War 2 and dealing in Nazi gold. Below are five recent stories which have increased the negative sentiment around Deutsche Bank.

  1. In 2007, they purchased a portfolio of loans worth $7.8 billion and purchased insurance from Warren Buffets Company. It was discovered they did not set aside enough capital to cover any potential losses. Over the course of the ten years, they lost $1.6 billion, and when they sold the loan they did not update their financial statements to include the big loss
  2. The Panama Papers are an ongoing investigation looking for many things including offshore tax havens. These investigations have resulted in several heads of state resigning including in Iceland and Pakistan. Last November, 170 police raided 6 different offices in Frankfurt looking for evidence of money laundering.
  3. Estonia is a small country in Eastern Europe. It has a population of 1.3 million people and a GDP of €26 billion. In January, it was discovered Deutsche Bank got involved with a Danish bank called Danke Bank and processed over $230 billion worth of cross country payments (including from Soviet Russia) through one bank in Estonia.
  4. There have been rumors of issues with Deutsche for a while now and one of the solutions put forth was a merger with a bank called CommerzBank. The leaders of both companies met and they even got support from politicians. In April, news broke that the merger talks had failed because over worries the risks and costs would be too great.
  5. Last week in France, Investment banking boss Garth Ritchie and others were arrested in France over illicit tax transactions.

Business Numbers

Deutsche Bank is already struggling as they are losing staff, losing market share, and bonuses are expected to be down at least 10% and further rounds of cost-cutting to come. Now imagine the impact if business costs start going up.

The banking industry works in a very simple way. They raise funds through large bonds at low-interest rates and then sell those funds to business and individuals thru products like loans and credit cards at a higher interest rate which results in a potential profit.

Earlier this year, Deutsche Bank tried raising money through several bonds. They paid 180bp (basis points) on a two-year bond and 230bp on a seven-year bond. Let me put this in context for you. There is a small bank in Spain called Caixabank which paid 225bp on a five-year bond and one of the larger banks in Spain, BBVA paid 130bp on a five-year bond.

  • How and why is a small bank in Spain getting a better deal on bonds than a huge bank in Germany?
  • Why is a large bank in Spain getting a bond 100bp cheaper than a German bank?
  • What does the market know that we do not?

Stock Price

Deutsche is also missing revenue projections which further hurt the business ability to survive and prosper. As you can imagine all of this news has a deep and lasting impact on its stock price which is in deep trouble. Before I share the stock price, I need to put this into the context of the market and the industry compared to the big economic crash of 2008. Below you will see a chart of some banking stocks from around the world with their peak price prior to the 2008 crash, the low of the 2008 recession and the price today:

As you can see from the above chart the banks in America have recovered from the 2008 recession by anywhere up 375% and JP Morgan has not only recovered its price in full but is constantly setting new high's. Ireland went bankrupt and had to be bailed out by the EU/IMF following the 2008 crash and even our national bank has more than doubled its price since 2008. The worst performing bank I could find was Societe Generale which has issues but is still hovering around its 2008 low price levels.

Now let's put that into the context of Deutsche Bank. Not only has the stock not rebounded but it is over 65% below its 2008 low at $6.75.

Technical Analysis

When you are dealing with the stock market, you also have people who study pricing through technical analysis. Experts look at things like FIB sequences, trend lines, and support levels. Support levels are a key metric for a stock failing because are looking to find where it will find support and potentially bounce higher.

We are very close to a key support level ($6.40) and if the price goes below this level, there is no saying exactly how low the price could go. At least one company expects Deutsche to fall below this support level, as several weeks ago UBS downgraded the stock to a sell order. This news was compounded last Friday when rating agency Fitch, downgraded their credit rating to BBB or two levels above JUNK status.

Other Information

I know you are likely reading this and thinking "this bank must have smart people in charge and surely they have a plan, right?" I am sure there is a plan and while they have kept their cards close to their chest, they have spoken in the past about the areas they foresee having growth for the company – they include business in Saudi Arabia, UAE, and Egypt. Do they strike you as countries which are stable and will offer steady and reliable growth? Do you have to think really hard to imagine how this could go potentially very wrong?

Questions

I believe there is at least a solid case Deutsche is in a LOT of trouble. So what are possible scenarios for the future? I will lay out the key questions below but I must stress that it's impossible to say for sure what exactly will happen. One of the key numbers to remember here is they have roughly €50 billion worth of derivatives.

  • How likely is it that the bank can turn things around and survive?
  • How likely is it the bank continues to run into trouble, its stock price fails and eventually fails?
  • If you think it is likely it will fail, the question becomes what will the fallout be? Who will be affected?
  • Will they be bailed out?
  • If so, by whom? The German government, ECB, IMF, the Federal Reserve?
  • What will the German government think? Some members recently spoke out saying they would block public money for the proposed merger? Will they block funds if it failed?
  • Will other banks be exposed and affected? Will they have to take losses?
  • Will those losses be spread around or will one or more bank be mainly affect?
  • Will this affect the sentiment of the banking sector and cause a panic?
  • If there are issues and it starts affecting the stock prices, what will be the impact on other industries?

Last Question

The last question revolves solely around the banks and the regulators? How secure are the other banks? We all hear about how banks are now put through "stress tests" but how much trust do you put in those results? How much trust do you have in the regulators?

I know this may make me sound like a conspiracy theorist to some but it's an honest question. The Fed is on public record saying they want to keep this economy strong as long as possible. If a bank did not perform strongly in a stress test or even barely failed one, do you think they would report it?

Can you imagine the pressure that body would come under to stay silent? Can you imagine the rhetoric they would face with questions like, "Are you really going to fail one bank? Do you know how many people will lose their jobs if you do that?" Am I saying this is happening? No, but can you really rule it out 100% as a possibility?

I urge you to ponder on these questions, do your own research and find YOUR answers.

Update: The most freaquently asked question I have received from this column / show is how much time do we have to prepare. This is an impossible question to answer, as it could fail tomorrow, next week or might be next year. However I want to provide you a potential date for your diary – July 24th. That is when Deutsche will release their next earnings report and if it comes in below expectations, it could cause a further drop in price casting more doubt over the future viability of the bank.

Please support Jonathon's weekly podcast which is exclusive to the Blaze Media and available for FREE. He offers a unique perspective by promoting America's Founding Principles and brings every issue back to a set of core principles which are always based around the laws of nature. You can find links to his show by clicking here or by searching for Freedoms Disciple on your favorite audio platform.

Survey: Where do you stand on these conspiracy theories?

Thought Catalog / Unsplash

Have you seen this survey on the most-believed conspiracy theories in America?

It's no surprise the survey has been getting so much attention. The results are actually a pretty disturbing.

Infographic: Belief in Conspiracy Theories in the United States | Statista

I decided to put together a quick survey of my own, with slightly different wording.

Up-vote the ones you agree with and down-vote the ones you disagree with.

I believe Lee Harvey Oswald killed JFK alone. However, I would not be surprised to find out the government sealed evidence that others were involved.

If by "deep state" you mean long-time Washington power brokers who are used to calling the shots and now feel threatened by Donald Trump not listening to their advice or council — yes, I do believe that many people like that are working against him and his administration.

Whether alien bodies are in Area 51 or not, I do believe the government knows more about UFOs than they have told us.

I do not believe the U.S. government was involved in 9/11, but as we know, NSA advisor Sandy Berger was caught destroying documents from the national archives related to both Bush and Clinton. All U.S. administrations have been to close to the Saudis, and the Saudis were involved in 9/11 at some level.

I believe the climate is always changing — it's natural. I would be willing to accept that man MAY play a role in this. But I do not believe in the solutions currently being discussed, nor do I believe the intention of most political activists are pure.

Any talk of the Illuminati provides the true dangers to man's freedom — like very powerful NGOS and men like George Soros — a perfect cover.

The U.S. government has done some horrible experiments on people and land — I also suspect they will do more things in the future. But I do not believe in the systematic spraying of chemicals using chemtrails.

The moon landing was real, but I see a time coming when people will not be able to trust their eyes due to deep fakes.

What do you think?

Let me know in the comments section below.