Glenn Beck: Fed up


Congressman Culberson of Texas

GLENN: Let's go to Congressman Culberson. He is from Texas and he has the information on the election being stolen and also I want to talk to him a little bit about, you know, the spending in Washington. Congressman, how are you, sir?

CONGRESSMAN CULBERSON: Good morning, Glenn, it's great to be with you.

GLENN: Can I -- I want to get to the ACORN thing here and what congress and Nancy Pelosi said she was going to do and have more stimulus packages. I have to ask you, sir, what in the name of God are we doing with our currency? We are spending money like there's no tomorrow.

CONGRESSMAN CULBERSON: Glenn, it is terrifying. We in this bailout bill which I voted against twice, my core conservative instincts have never failed me, we've created -- literally we've given the secretary of the treasury the power of the king and King Henry is now free to just essentially do whatever he wants. He's got $700 billion between King Henry and the Federal Reserve prompting vast amounts of cash into the banking system which as far as I can tell the banks are burying the money in the backyard. You are right. They are loading up our kids' future generations are --

GLENN: Congressman, congressman, I talked to a guy -- in fact, I talked to several people this weekend. One of the guys is -- I referred to as my deep throat. He has been in the room with Bernanke and Paulson and everybody else and he has seen all of this stuff. He talked to me over the weekend and he said, "Glenn, everybody I know is reading about the Weimar Republic. He said, the money that is being pumped in is staggering and I don't know how we'll ever pull that money back." He said, we're all reading the Weimar Republic. That's frightening, Congressman.

CONGRESSMAN CULBERSON: It is. And when I first learned about David Walker, the comptroller, the auditor of the U.S. began talking about this years ago, Glenn, on the danger to the country of running up the $60 trillion-plus of unfunded liability, I began carrying around in my wallet, and I have it here now and we need to be sure to get you one as you're one of my heroes, a $50 billion bank note from Zimbabwe, like the Weimar Republic, absolutely.

GLENN: Yeah. And Congressman, I mean, please go to Washington today and talk to them about, again the Treasury is talking about buying into these banks for what is rumored to be at this point a rumor, at $1.8 trillion, to go in and bail these banks out and buy into these banks. This is, A, socialism; and B, where are we getting the $1.8 trillion.

CONGRESSMAN CULBERSON: By selling debt on the international bond market, selling T-bills most of which are bought by the Chinese or Middle Eastern sovereign wealth funds and because the bill says we can bail out foreign banks, that is true statement that we are borrowing -- excuse me. The taxpayers are borrowing money from Chinese and Middle Eastern banks to bail out Chinese and Middle Eastern banks and we are nationalizing, socializing the banking system following the French and British model. And then also don't forget, Glenn, that the bill, the entire thrust of this debate which was dropped on us with no notice and he admits he's known about it for a year. The entire debate, Glenn, was that the purpose of the bill was to buy up the toxic debt.

Now, the bill -- he can do whatever he wants under the bill, but the focus was, hey, guys, you've got to vote for this because we have to buy up this toxic debt.

GLENN: Is it true --

CONGRESSMAN CULBERSON: Nationalize --

GLENN: I'm sorry. Is it true that people were told in your position that there would be martial law if, as one of the consequences if this didn't happen?

CONGRESSMAN CULBERSON: I don't remember that but we were told it was a disaster. We were told it was epic, we're at the cliff and we have to buy up these toxic assets. So all these guys that voted for the bill -- and again I voted against it twice, two of the best no votes I ever cast. But these guys were told this has to be done, it's an emergency, we're going to buy up the toxic debt. It was not -- may have discussed somewhere, somehow, but they were not told that they were going to nationalize the banks. This is literally switching, pivoting off of -- you know, after "Give me the $700 billion, we're going to buy up toxic debt," this weekend Paulson says, no, no, we're not going to do that; we're going to do something else. So all these guys that walked the plank, these Republicans that voted for the bill and other folks that voted for the bill are now being told, you know, your vote didn't leave me anything, we're just going to do something totally different.

GLENN: Unbelievable. So now let's talk about ACORN. What is happening in Houston? There has been a couple of arrests in Houston and this is happening all across the country. Is there -- can we even trust this election, that there won't be massive voter fraud?

CONGRESSMAN CULBERSON: There is going to be voter fraud. We don't know how massive it is but no question, ACORN and other organizations like them are going to be a big part of it because they have pled guilty. I mean, ACORN has literally pled guilty to false -- to fraudulent voter registration. And in Houston we discovered there's about 4,000 dead people on the voter rolls here. It's going on around the country. We're the only nation I think on the face of the Earth that doesn't have a citizenship list, a citizenship roll that you can just check the database against voter rolls, and ACORN has a long history of this, Glenn. And, you know, that's particularly outrageous is that the mortgage bailout, the Freddie and Fannie Mae bailout bill which was done this August which I also voted against because that nationalized the mortgage industry, that bill, Barney Frank voted language in that bill this summer which hard wires $420 of a $100,000 mortgage to ACORN, La Raza and other organizations like --

GLENN: That's an outrage. Why didn't the American people know? That's an absolute outrage.

CONGRESSMAN CULBERSON: And it is forever. It bypass -- I'm on the appropriations committee. It bypasses appropriations, bypasses the congress, it's in your closing documents. This from day forward we will all be paying 4.2% basis fee of $420 for every $100,000 mortgage in your closing paper will have papers. You'll have a new little line in there, a new fee that we're going to all pay to go straight to these affordable housing funds which the states then hard wire to La Raza, ACORN, groups like that.

GLENN: Congressman, what the hell has happened to our country? All of a sudden we are a -- we are marching towards Marxism. We are marching to a place that this -- congressman, you know it and I know it. You are from Texas. This ain't gonna hold. This is not going to last.

CONGRESSMAN CULBERSON: No, it's very scary and I've had a lot of fellow Texans tell me maybe we didn't make such a good decision back in 1845, you know? Maybe we should have stuck it out as the Republic of Texas and it's very scary. It's very scary and it has happened so rapidly, it just takes your breath away that we not only are marching, we are already socialized the mortgage industry. We've already nationalized the banking system. We are becoming France and in Texas we done want to be France.

GLENN: So what does the average person do, Congressman? We have spoken out. You I'm sure you saw it with John McCain over the weekend. People are pissed off. They are saying, I want my country back!

CONGRESSMAN CULBERSON: All of us need to not only register, turn out and vote, demand that candidates, quite frankly we need to adhere I think as Republicans, tuned demand that your election people are going to stick to the Constitution, they are going to essentially follow -- I call myself a Jeffersonian Republican. If we just stick to the core principles, they have always worked. Mr. Jefferson, Glenn -- and remember this is so true. Jefferson always said if we follow core Republican principles, the knot will always untie itself. We've got all the tools we need to solve this and every other problem we've got. It's in the Constitution. You stick to the Tenth Amendment. You get this out of the hands of Washington. Trust individual Americans to make the right decisions for the right reasons and trust their good sense and their good hearts and shut down whole sectors of the government. We need frankly a revolution at the ballot box in electing frankly -- and what's the best term for it? Libertarian Republicans. We need people that are going to believe and be committed to individual liberty and the Constitution because if we don't, you know, the country, it's very frightening, the debt, the deficit, the Weimar Republic days may not be too far away with this debt that we are inheriting, the $13 trillion. We just ran out of digits on the national debt clock. I'm sure you saw that.

GLENN: I did.

CONGRESSMAN CULBERSON: But remember this is the greatest country, we live in the greatest country in the history of the world, the infinite resourcefulness of this country. No matter how bleak it gets, we've got to remember we've pulled out of worse problems before and we can do this. Remember we have a revolution every two years. It's this November 4th. We've got to every single one of us that cares about this get out and vote.

GLENN: Thank you very much, Congressman. We'll talk again.

CONGRESSMAN CULBERSON: Thank you.

GLENN: Boy, coming from a libertarian Republican. That's what you need to be voting for. Boy, you could say that again. It's time for the libertarians to really start taking a hold, choking the bat snot out of those votes in congress.

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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.

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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.