Month: June 2017

Try being an agent of change not a victim of it

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It is hard to feel sympathy for these news organizations that forget the golden rules of commerce – if you stop adding value your audience will consume elsewhere, Someone told me the other week that NYT subscriptions had soared. If indeed that was the case then why is the paper looking to junk half its editorial staff? Running the idea that free media is hurting advertising revenues and that shame on the paper for having to make rational business decisions. Free media might be part of the equation but had the NY Times stopped congratulating its self appraised excellence in bus shelters and billboards  realized that its journalism was the problem perhaps they might be expanding the kind of readership its advertisers would pay up for. Has the NYT not realized that the exposure of media outlets like CNN droning endlessly on about Russia-gate being a total fabrication for ratings is why trust in mainstream media is lower that the President?

The actions of the NY Times staff smacks of the same stupidity of the Sydney Morning Herald which has had to take two massive rounds of lay-offs inside a year because the product isn’t reaching. The SMH staff took a vote to strike at their evil overlords who put profit ahead of people. Welcome to the free market. When one journalist at the SMH became a scab (because he admitted the problem) he was vilified by his fellow workers. Biased in and biased out. Think of Channel 10 in Australia which is now under administration. Could it be the product that is not reaching? Could it be a lack of creativity or diversity in content (as opposed to diversity of background).

The NY Times does deserve credit though for trying to introduce balance to its columns with the introduction of a ‘climate sceptic’ (Bret Stevens) whose first article created such ructions that social media lit up like a Christmas tree – calling for his sacking and how the NY Times betrayed its loyal readers. Instead of praising the NY Times for trying to bring balance and diversity of thought into the mix, the group thinkers could only try to shut him down. It is exactly that type of reaction that will precipitate the demise of the paper. To be honest, when you read articles, journals, books or watch TV don’t you wish to learn other perspectives. Or do you want to listen to the same noise reverberating inside your own echo chamber?

It is natural to feel fear in the face of difficult times but staging protests only has the reverse effect. It is doubtful that management relishes having to retrench so many. However these people should live in the knowledge that management’s failure to turn around this wayward ship will result in their bosses’ necks. Instead of solutions, proposals and most importantly recognition of a failing product, they’ve chosen to be victims not agents.  Ironically at the moment NYT’s shareholders are behind management with the stock price up 50% YTD.

From Sesame to Elm Street

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ETF markets continue to surge in popularity. With low fees and basic packaging of the ETF product even Big Bird can understand what The Count is going on about. No wonder investors are snapping up these products faster than the Cookie Monster. However there is something chilling about the ETF market. In the lead up to and eventual crash of Lehmans et al CDOs, CDSs and other synthetic products were seen as the root of all evil. They were so complex that even Fields Medal winners in mathematics couldn’t make head nor tail of them. The ETF became the opposite – being too simplistic – and with that the product has brought huge complacency. To that end Sesame Street could well switch to Elm Street.

Today assets invested in ETF/Ps comprise over $3 trillion globally. Put simply the new funds flowing into ETFs vs. traditional mutual funds is at a 100:1 ratio and in terms of AUM is on par with total hedge fund assets which have been in existence for 3 times as long.

However ETFs, despite increasing levels of sophistication, have brought about higher levels of market volatility. Studies have shown that a one standard deviation move of S&P500 ETF ownership carries 21% excess intraday volatility. Regulators are also realising that limit up/down rules are exacerbating risk pricing and are seeking to revise as early as October 2015. In less liquid markets excess volatility has proved to be 54% higher with ETFs than the actual underlying indices. A full report can be seen here.

With the continuation of asset bubbles in a TINA (there is no alternative) world, ETFs in my view will lead to massive disappointments down the line. Their downfall could well invite the revival of the research driven fund manager model again as robots show they’re not as infallible as first thought in managing the volatility. Don’t forget humans designed the algorithms.

There is also the added risk of whether some ETFs actually hold the physical of the indices or commodities they mimic. A gold ETF is a wonderfully good way to store wealth without resorting to one’s own bank vault but how many ETF owners have inspected the subterranean cage that supposedly holds the physical the ETF is backed by? Has it been lent out? Does it own a fraction of stated holdings? It could be any other commodity too. Of course the ETF providers bang on about the safety of the products but how many times have we gasped when fraud reared it’s ugly head right in front of us. Bernie Maddoff ring any bells?

Given the implied volatility on the downside we need to bear in mind the actions of central banks. The Bank of Japan (BoJ) is the proud owner of 60% of the ¥20 trillion+ domestic ETF market. While the BoJ says it isn’t finished expanding its world’s largest central bank balance sheet (now 100% of GDP), the US Fed is looking to reduce its balance sheet by over 40% in order to normalize. While one can applaud some level of common sense pervading sadly the consequences of defusing the timer on the bomb they created at a period when the US economy is showing signs of recession will only be an overhang on asset markets. Should the US market be put through the grinder, global markets will follow.

It is one thing for the Fed to be prudent. It is another for it to be trying to cover its tracks through higher interest rates in a market that looks optically pretty but hides serious life threatening illnesses. The Fed isn’t ahead of the curve at all. It is so far behind the 8-ball that its actions are more likely to accelerate rather than alleviate a crisis. Point to low unemployment or household asset appreciation as reasons to talk of a robust economy but things couldn’t be further from the truth. Wage growth is not the stuff of dreams and the faltering signs in auto, consumer and residential markets should give reason for concern.

Since GFC we have witnessed the worst global economic revival in history. The weakest growth despite record pump priming and balance sheet expansion. Money velocity is continually falling and the day Greenspan dispensed with M3 reporting one knew that things were bad and “nothing to see here” was the order of the day.

Record levels of debt (just shy of $220 trillion or 300% of GDP when adding private, corporate and government), slow growth, paltry interest rates and coordinated asset buying have not done anything other than blown more air into a bubble that should have been burst. GFC didn’t hit the reset button. Central banks just hit print to avoid the pain. We’ve doubled up on stupidity, forgot the idea of prudent and sensible growth through savings and just partied on. Ask any of your friends in finance what they “really” think and I can assure you that after a few drinks they’ll tell you they’re waiting for the exit trade. They know Armageddon is coming but just don’t know when

Whether we like it or not, the reset button will be hit. I often argue people should not worry about the return ON their money but the return OF it. Global markets can’t be bailed out again with massive cash infusion. That has been a recipe for disaster, only widening the gap between haves and have nots. Debt must be allowed to go bad, banks must be allowed to go bust and free markets must be freed from the shackles of state sponsored manipulation to set prices. It will be ugly but more of the same can kicking won’t work.

ETFs are a sign of the times. They represent the slapdash approach to life these days. Time saving apps if you will. However nothing beats hard nosed analysis to understand what awaits us. Poor old Big Bird will be the canary in the coal mine and Sesame Street will be renamed Elm Street as the Kruger’s move in to give us nightmares Janet Yellen assures us aren’t possible.

Perhaps that is the ultimate question. As you go to work each day do you honestly feel that things are peachy as the management town hall meetings would have you believe? Are your friends or colleagues all bulled up about the future? Perhaps that is easier to answer than an ETF.

Yellen’s Fedtime stories

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US Fed Chair Janet Yellen uttered perhaps some of the most bizarre words to come out of a central banker. So much so that Alan Greenspan’s “I know you think you understand what you thought I said but I’m not sure you realize that what you heard is not what I meant.” seems almost comprehensible by comparison. Yellen told an audience that she believes we won’t see another severe financial crisis in our lifetimes. Either Ms Yellen is not long for the world or denial is running deep within her veins. One of her own FOMC board members (James Bullard) wrote a piece on why the Fed needs to trim its balance sheet from $4.47tn to around $2.5 trillion) so they can prepare for the next horror that awaits.  Even Minnesota Fed Reserve Bank President Neel Kashkari said the likelihood of another financial crisis is 2/3rds. We have a world with debt up to its eyeballs and global interest rate policies that have only led to the slowest post slowdown growth in history. The signs of a global slowdown are becoming ever more obvious even in the US. Slowing auto sales and rising delinquencies are but one signal. The imminent collapse of so many public pension funds another.

Had she not seen the European Commission’s decision to let Italy spend up to 17 billion euros to clean up the mess left by two failed banks? The news is not only another whack for Italian taxpayers but a setback for the euro zone’s banking union, and a backflip for the EU’s stance on non-standard bailouts. The Italian government wound down Banca Popolare di Vicenza and Veneto Banca, two regional lenders struggling under the weight of non-performing loans which averages 20% across the nation and up to 50% in the south. Intesa Sanpaolo bought the banks’ good assets for one euro, and was promised another 4.8 billion euros in state aid to deal with restructuring costs and bolster its capital ratio. Italy’s taxpayers get to keep the bad loans, which could end up costing them another 12 billion euros. Even the Single Resolution Board — whose purpose is to take the politically difficult decision of whether to close a bank out of the hands of governments — chose not to intervene.

Last year four Italian banks were rescued and it seems that since Lehman collapsed in 2008 non performing loans (NPLs) have soared from 6% to almost 20%. Monte Dei Paschi De Siena, a bank steeped in 540 years of history has 31% NPLs and its shares are 99.9% below the peak in 2007. Even Portugal and Spain have lower levels of NPLs. The IMF suggested that in southern parts of Italy NPLs for corporates is closer to 50%!

Italy is the 3rd largest economy in Europe and 30% of corporate debt is held by SMEs who can’t even make enough money to repay the interest. The banks have been slow to write off loans on the basis it will eat up the banks’ dwindling capital. It feels so zombie lending a la Japan in the early 1990s but on an even worse scale.

Not to worry, the Italian Treasury tells us the ECB will buy this toxic stuff! But wait, the ECB is not allowed to buy ‘at risk’ stuff. So it will bundle all this near as makes no difference defaulted garbage (think CDO) in a bag and stamp it with a bogus credit rating such that the ECB can buy it. In full knowledge that most of the debt will never be repaid, the ECB still violates its own rules which state clearly that any debt they buy ‘cannot be in dispute’.

The Bank of Japan has no plans to cut back on the world’s largest central bank balance sheet. It continues to Hoover up 60% of new ETF issues at such an alarming pace it is the largest shareholder of over 100 corporates. Then there is the suggestion of buying all $10 trillion of outstanding JGBs and convert them into zero-rate (+miniscule annual service fee) perpetuals.

Australia’s banks are now the most loaded with mortgage debt globally at 60% of the total loan book.  Second is daylight and third Norway at 40%. Private sector debt to GDP is 185%. We have a government who can’t tighten its belt basing its budget on rosy scenarios that will be improbable. Aussie banks have been slapped with a new tax and with the backdrop of a rising US rate environment, the 40% wholesale funded Aussie banks will be forced to accept higher cost of funds. That will be passed straight onto consumers that are already being crushed under the weight of mortgages. One bank survey by ME Bank in Australia said that 1/3rd would struggle to pay a month’s mortgage if they lost their jobs.

Had Ms Yellen forgot to read the St Louis Fed’s survey which revealed that 45% of Americans can’t raise $400 in an emergency without selling something? USA Today reported that 7 out of 10 Americans have less than $1,000 in savings to their name.

“Last year, GoBankingRates surveyed more than 5,000 Americans only to uncover that 62% of them had less than $1,000 in savings. Last month GoBankingRates again posed the question to Americans of how much they had in their savings account, only this time it asked 7,052 people. The result? Nearly seven in 10 Americans (69%) had less than $1,000 in their savings account…Breaking the survey data down a bit further, we find that 34% of Americans don’t have a dime in their savings account, while another 35% have less than $1,000. Of the remaining survey-takers, 11% have between $1,000 and $4,999, 4% have between $5,000 and $9,999, and 15% have more than $10,000.”

So Chair Yellen, we are not sure what dreamland you are living but to suggest that we won’t see another financial crisis in our lifetime almost guarantees it will happen. The Titanic was thought unsinkable until history proved otherwise. Money velocity is not rising and every dollar printed is having less and less impact. I thought it nigh on impossible to surpass the stupidity of Greenspan but alas you have managed it.

Record setting pensioner

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You have to hand it to Valentino ‘The Doctor’ Rossi, the 38-yo pensioner scrapping it with kids almost half his age. I’m an unashamed fan as I have been since 1996 when he was in the 125cc class. He managed to win the Dutch GP in Assen today in a typical strategic race, weighing up and wearing down his competition. 9-time world champ, 115 wins and the only rider to win races across a 20-year career. It is no wonder he’s paid €20mn per annum given the fact he hasn’t lost his edge. Sure he isn’t winning with the ease of his youth but he’s still majorly competitive. He is still in the hunt for a 10th championship. Forza Vale

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The Wallabies literally need to “pull their socks up”

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The problem with the Wallabies rugby team is obvious. Look at the picture above. Where is the discipline? At the start of a match you’d hope that  the players had real pride representing their nation. To be in view of an entire nation. To wear the green and gold with purpose. 3 players have their socks down around their ankles. Trivial? Perhaps but these players don’t share discipline and that is driven by the head coach Michael Chelka. If I was a coach I would expect the players to show the uniform more respect and would see such sloppiness as an unacceptable standard. Let’s see how the NZ All Blacks present themselves as a team. Yes they look like a team. Performing the haka is all about precision and teamwork.

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Perhaps we need look at the 1991 World Cup side

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and 1999

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Two teams that won thanks to their discipline from head to toe.

Why Chelka hasn’t been dumped is beyond me.  Look at how Eddie Jones transformed England after the 2015 World Cup. After watching Japan play Ireland a TV show interviewed players to discuss life under Eddie Jones as a Japanese representative. Two players said he was very strict when it came to alcohol and food. No booze and no fried foods. If he spotted a fried thing on their  plate he’d give them the death stare

All the Wallabies look like now is a collection of prima donnas with self entitlement as a prerequisite. Perhaps the ARU should hire Bobby Knight to install discipline!?

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The Red Pill vindicated in the land of the Rising Sun

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For all the drama surrounding the Red Pill movie and the idea that men can be victims, former LDP politician Mayuko Toyoda made the case for defenseless males. She totally lost the plot at her driver/secretary hurling expletives and insults at his baldness and physically attacking him. Japan has had consecutive episodes of politicians making fools of themselves- is there any wonder the population has lost faith in the ability to operate government. Here are a few reminders.

Nakagawa at the G8. After years of failed policy to weaken the yen his drunk press interview sunk the yen more rapidly than any rational policy before it.

Nonomura hearing over falsified travel claims. He burst into tears at his presser.

Then again we shouldn’t overlook the pathetic level politicians hit on a regular basis overseas-

Aussie PM Turnbull on Trump

Justin Trudeau’s cardboard cut outs of himself

Trump love in with his cabinet who all betrothed their adoration for him

Is this what great leaders are made of?

Edward Scissorbrains

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Johnny Depp joins the list of out of touch celebrities to suggest harm to the sitting president. Instead of accepting a democratic voting process he openly suggests assassination by an actor has happened in the past ( John Wilkes-Booth assassinated Lincoln). Is the word of an alleged wife-beating drunkard who ignored quarantine law to smuggle his dogs into Australia because he thought the rules didn’t apply to him (their video apology was so pathetic) worth listening to? The Secret Service should honestly take actors who threaten the president’s murder (jokingly or otherwise) into custody for thorough interrogation. Hollywood celebrities aren’t above the law. Hypocrites who were sadly ignored again in the recent Georgia election. Nobody cares what celebrities  think! Never a more out of touch bunch.

Illinois Police Pension can’t protect or serve – it is going bust

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Sadly the Illinois Police Pension is rapidly approaching the point of being unable to service its pension members and a taxpayer bailout looks unlikely given the State of Illinois’ mulling bankruptcy. Local Government Information Services (LGIS) writes, “At the end of 2020, LGIS estimates that the Policemen’s Annuity and Benefit Fund of Chicago will have less than $150 million in assets to pay $928 million promised to 14,133 retirees the following year…Fund assets will fall from $3.2 billion at the end of 2015 to $1.4 billion at the end of 2018, $751 million at the end of 2019, and $143 million at the end of 2020, according to LGIS…LGIS analyzed 12 years of the fund’s mandated financial filings with the Illinois Department of Insurance (DOI), which regulates public pension funds. It found that– without taxpayer subsidies and the ability to use active employee contributions to pay current retirees, a practice that is illegal in the private sector– the fund would have already run completely dry, in 2015…The Chicago police pension fund held $3.2 billion in assets in 2003. It shelled out $3.8 billion more in benefits to retired police officers than it generated in investment returns between 2003 and 2015…Over that span, the fund paid out $6.9 billion and earned $3.0 billion, paying an additional $134 million in fees to investment managers.”

The public pension black hole in America is an alarming issue.  In the piece, “The Public Pension Black Hole” it was plain to see the problems of unfunded state pensions is rife across America. Take California- “The US Federal Reserve (Fed) reported in 2013 that the State of California had an official unfunded pension liability status equivalent to 43% of state revenue. However, if marked-to- market with realistic discount rates we estimate that it is equivalent to 300% of state revenue or 7x greater. Going back to 2000, California had an unfunded liability less than 11% of tax collections. As a percent of GDP it has grown from 2% to 9.7% based on official figures. If our estimate is correct, the mark-to market reality is that California’s unfunded state pension (i.e. for public servants only) is around 18% of state GDP!”

The problem for Illinois is that a taxpayer funded bailout is all but impossible. The State of Illinois ranked worst in the Fed study on unfunded liabilities.  The unfunded pension liability is around 24% of state GDP. In 2000 the unfunded gap to state revenue was 30% and in 2013 was 124% in 2013. Chicago City Wire adds that the police fund isn’t the only one in trouble.

“Chicago’s Teachers Union Pension Fund is $10.1 billion in debt. Its two municipal worker funds owe $11.2 billion and its fire department fund owes $3.5 billion…All will require taxpayer bailouts if they are going to pay retirees going into the next decade…Put in perspective, the City of Chicago’s property tax levy was $1.36 billion in 2017…Paying for retirees “as we go,” which will prove the only option once funds run dry, will require almost quadrupling city property tax bills…Last year, it would have required more than $4 billion in revenue– including $1 billion for City of Chicago workers, $1.5 billion for teachers, and $1.5 billion for retired police officers and fire fighters.”

This problem is going to get catastrophically worse with the state of bloated asset markets with puny returns. Looking at how it has been handled in the past Detroit, Michigan gives some flavor. It declared bankruptcy around this time three years ago. Its pension and healthcare obligations total north of US$10bn or 4x its annual budget. Accumulated deficits are 7x larger than collections. Dr. Wayne Winegarden of George Mason University wrote that in 2011 half of those occupying the city’s 305,000 properties didn’t pay tax. Almost 80,000 were unoccupied meaning no revenue in the door. Over the three years post the GFC Detroit’s population plunged from 1.8mn to 700,000 putting even more pressure on the shrinking tax base.

In order for states and local municipalities to overcome such gaps, they must reorganise the terms. It could be a simple task of telling retiree John Smith that his $75,000 annuity promised decades ago is now $25,000 as the alternative could be even worse if the terms are not accepted. Think of all the consumption knock on effects of this. I doubt many Americans will accept that hands down, leading to class actions and even more turmoil.

 

Egyptian TV host defends the West’s attitudes toward Islamic terror

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Not many will have seen this video because the mainstream media is loathe to publish anything remotely balanced these days. Egyptian TV host Youssef Al-Husseini launched a scathing attack on Islamic terrorism post the Finsbury Park mosque attack and said “The terror attack that unfortunately took place [in London] was a vehicular attack. This time, it was near a mosque, if you follow the news. How can anyone decide to carry out a terror attack near a place of worship – near a mosque, a church, or any temple where God is worshipped? In all the previous vehicular attacks, at least in 2016 and 2017, the “heroes” were, unfortunately, Muslims. And then people wonder why they hate us. Why do they hate us?! If they didn’t, there would be something mentally wrong with them. [We] use weapons all the time, slaughter people all the time, flay people all the time, burn people alive all the time, run people over all the time, and plant explosive devices and car bombs all the time. Why do you still expect them to love you?”

As written on the day of the London mosque attack, it was an unquestionably despicable act. This tit-for-tat terrorism serves no purpose other than to trigger further escalation on both sides. No sooner had a white terrorist run down a group of worshippers outside a mosque than another depraved individual tried to detonate a suicide vest in Brussels’ Central Station supposedly yelling “Allahu Akbar“. The sad aspect of terrorism in the West today is that it is happening on such a regular basis that many people are becoming numbed to it.

However the mosque attack was the such a bad turning point. The UK government is ill equipped to deal with it now. Should they mobilize the full compliment of 80,000 British Army soldiers and 27,000 reservists to guard the 2,000-odd mosques in the UK? Is putting barricades on footpaths a real solution? Do Brits want to see tanks parked outside Westminster or Trafalgar Square? Should x-ray machines be installed at every train or bus station? Is that a sustainable solution to the problem giving birth to vigilantes? People want action, not politically correct hand-wringing. They are sick of being told to suck it up and embrace ‘stronger together’ and ‘diversity is our strength’ or ‘terrorism is a fact of any big city’ style pandering. The majority of people are tolerant but there is a tipping point of common sense where they stop believing we win acceptance from jihadis by denying our own identities. Governments prefer to take the soft approach which only offers a safe haven to the activities that end up devastating even more innocent lives.

The idea peddled by limp wristed governments that Muslims need special protection only makes it worse. ALL citizens of any denomination, race or background deserve to feel safe. Yes, everyone knows it is a radical minority that is causing the problems. There is a paramount need to work with the Muslim community to root out those that only bring more distrust. No, it isn’t a license to condone bigotry either. However unless they feel we are ‘truly’ standing behind them rather than virtue signaling from the safety of a smartphone nothing will get better. That is an absolute. The further governments repress  the freedom of people to openly express their feelings the worse it will get.

We are taught from the earliest age that two wrongs don’t make a right. The rise of vigilantism is a natural reaction to governments that stick to the politically correct dialogue and skirt around the issues by trying to gag people whether by law (Canada’s M-103) or threat. Politicians cannot win the will of the people by shutting them up. They have to listen. Because the government isn’t listening militia will spawn and do what they deem necessary for the public interest, The last thing government needs is the widespread growth of people taking the law into their own hands. There are two things that ran through the mind of truck attacker Darren Osborne – he’d either be killed or be locked up for a long time after committing his terror. That is a pretty big price to pay but one he obviously thought worth paying.

To quote Al-Husseini again,

What have the Muslims shown [the West] other than the bombing of their capital cities? What have the Muslims shown them other than vehicular attacks? What have the Muslims shown them other than shooting at them? What have the Muslims shown them other than burning them alive in cages? They burn other Muslims alive as well. They all claim to have a monopoly over Islam. What have the Muslims shown [the Westerners] to make them love them, and welcome them in their countries?…

…The Muslims are constantly whining, lamenting, and wailing: The West is conspiring against us. Fine, let’s assume that the West is conspiring against you and only sees your negative image. Where is your positive image? The Muslims of the Abbasid state presented a positive image. They exported scientific research through the so-called “Muslim” scholars, most of whom, by the way, were not from the Arabian Peninsula. None of them were from the Arabian Peninsula. They were all from North Africa, and from what are now called the former Soviet Islamic republics of central Asia…

…What have the Arab countries contributed to the world? Nothing. What have the Islamic countries contributed to the world? Nothing. What have they contributed in the field of scientific research? Two, three, four, or ten scientists in the course of 1,435 years? C’mon, man! Let’s forget about 435 years and keep just one millennium. Ten important scientists in 1,000 years?! Who invented the airplane? The missile? The space shuttle? Centrifuges? Quantum mechanics? The Theory of Relativity? Who? Where did the most important philosophers come from? Not from here. And you still expect them to love us?! And then you say: “Terror-sponsoring countries like Britain deserve…” Nonsense! People do not deserve to be killed, slaughtered, or run over by a car.”

Al-Husseini makes some very valid points yet why does the media not choose to highlight his stance? The irony of those who have seen his video clip is the social media comment section. Even those who take quite a strong stance on diversity and tolerance joked along the lines of  “is he still alive?” Doesn’t that sort of truly reveal the inner feelings of people rather than the public perception they seek to portray openly for fear of recrimination? We should applaud Al-Husseini’s bravery to speak out like this. His comments are exactly the type of bold response that throws the West’s constant rolling over into the dustbin. We can be sure Al-Husseini’s comments are heartfelt and a wish for all to climb out from behind the protection of identity politics and embrace ‘reality’.

Since Osborne’s truck attack, Tommy Robinson’s book ‘Enemy of the State’ is now the number one selling book on Kindle and paperback. So UK government, are you sure you understand the mood of the nation? They are more than likely to back Mr Al-Husseini’s views than yours.

Trump thump in 2018 Mid-terms?

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In what was largely seen as a referendum on the first months of Trump’s presidency, voters dispelled the myth that Democrats would make much easier work in coming elections due to his constant outbursts, tweets and negative media coverage. As the glum faces of the CNN panel show, the Democrats need to wake up to the fact that Trump’s poll ratings aren’t causing the desired effect at the voting booth as Republican Karen Handel won. Director of the University of Virginia’s Center for Politics Larry Sabato stated,

For Democrats, obviously, it’s pretty depressing. … I think, if Democrats learn a lesson from this election, it’s that the euphoria that they’ve felt for the last several months as Donald Trump has fallen in the polls and they began to believe that this would be — not easy, but doable to take over the House of Representatives and eventually replace Donald Trump, that euphoria is gone, and it’s replaced with reality. And the reality is, it’s going to be a long, twilight struggle, day in and day out, if they’re going to be able to re-take the House and eventually defeat Donald Trump. It won’t be easy. It may not be possible.”

Once again the mainstream media conveniently forgets its ‘trust’ rating is lower than the Donald’s. That’s not a badge of honour for either. Objectively his style is far from statesmanlike. Yet other world leaders do not exactly treat the leader of the world’s largest economy and military with the cordiality due. Two events spring to mind – Australian Prime Minister Turnbull’s Midwinter ball speech mocking a wounded ally and Macron’s snub at the G-7 followed by his arrogant invite for conditional US citizens to leave America for France. Of course such discourse was lapped up by the liberal mainstream media.

Instead of convincing Trump to come to reason, they kick him out of the geopolitical sandpit and then cry foul when he acts out in his own interest. Don’t expect all the 2018 mid-terms to be a complete pushover for the Democrats. The Hillary Clinton campaign imploded on this very strategy. Theresa May fell for the same negligent attitude which cost her so dearly two weeks ago. Voters want to be heard, not taken for mugs. Once again, celebrities who bent over backwards to help Democrat candidate Jon Ossoff, had the same effect on voters – NONE