Justin’s note: As you know, we don’t shy away from controversy or “politically incorrect” opinions here at Casey Research.
We’ve been telling you what you need to hear – the stuff not covered in the mainstream media – so you can prepare for (and profit from) what’s in store for America.
It’s all in preparation for this Wednesday’s landmark event, Totally Incorrect: LIVE, where our founder Doug Casey will sit down with Crisis Investing chief analyst Nick Giambruno to reveal his five biggest predictions for 2019 and beyond.
Today, we’re continuing this theme and passing the baton to Nick, who says Donald Trump is currently being set up to fail:
The Deep State is going to make sure Trump goes down as the worst president in U.S. history… by pinning the impending stock market collapse on him.
Read on to see why…
By Nick Giambruno, chief analyst, Crisis Investing
The Establishment is setting up Donald Trump…
The mainstream media hates him. Hollywood hates him. The “Intellectual Yet Idiot” academics hate him.
Most critically, the CIA hates him. So does the rest of the Deep State, or the permanently entrenched “national security” bureaucracy.
I think there’s a very simple reason for this: He’s threatening to take away its livelihood.
Trump wants to make nice with Putin and the Russians. But countering the so-called “Russian threat” is how many thousands of Deep State bureaucrats make a living.
These people feed off a $1 trillion-plus military/security budget. Playing nice with the Russians would kill their jobs.
Trump has said:
We will pursue a new foreign policy that finally learns from the mistakes of the past. We will stop looking to topple regimes and overthrow governments.
Toppling regimes is the CIA’s bread and butter. No wonder it hates him.
Though, the feeling is mutual.
Trump has used plenty of sharp words to describe the “intelligence community.” He’s also the first president since John F. Kennedy to openly take on the CIA.
Going forward, the Deep State has three main cards to play against Trump…
The delegitimization card
The Herbert Hoover card
The John F. Kennedy card
If one doesn’t work, it’ll escalate to the next.
Let’s start with the delegitimization card.
As you may know, the U.S. – specifically the CIA – has helped orchestrate multiple color-coded revolutions around the world over the past 20 years:
The Bulldozer Revolution in Serbia (2000)
The Rose Revolution in Georgia (2003)
The Orange and Euromaidan revolutions in Ukraine (2004 and 2014)
The Tulip Revolution in Kyrgyzstan (2005)
The Cedar Revolution in Lebanon (2005)
The Green Revolution in Iran (2009)… though that one didn’t work.
The Saffron Revolution in Myanmar (2007)
All of these AstroTurf revolutions have one thing in common. In each case, George Soros’ non-governmental organizations (NGOs) helped delegitimize the targeted government.
Here’s how it worked: Soros’ NGOs would help fund and organize “professional protesters.” Then they’d use specific color branding to help rally others to their cause.
The pattern was predictable. Now it’s playing out in the U.S.
It smells to me like the CIA and George Soros’ NGOs are trying to foment a “color revolution” in the U.S., just like they’ve done in numerous foreign countries.
The U.S. color revolution already has a color. It’s purple (the mix of red and blue, i.e., red and blue states).
Hillary Clinton has worn purple in almost every public appearance since Trump’s election. There’s a flood of social media postings about the color purple. So the branding is already done. And, of course, the professional protesters financed and organized by George Soros are already there.
Of course, there are legitimate complaints against Trump. But the usual suspects are using their normal tricks to remove a government they don’t like. It just so happens that, this time, the target government is in Washington D.C., instead of Eastern Europe or the Middle East.
Still, I don’t think the Deep State is going to win with the delegitimization card. In fact, it’s already moving on to the next option: the Herbert Hoover card.
History books remember Herbert Hoover as one of the worst American presidents…
Hoover, a Republican, was a rich and successful businessman with investments all over the world. He was also somewhat of an outsider, having never held elected office until he was inaugurated in March 1929.
Today, people associate him with massive infrastructure projects like the Hoover Dam, as well as the Mexican repatriation program, which deported over 500,000 illegal Mexican immigrants.
Hoover also placed tariffs on foreign products entering the U.S. and established other protectionist trade policies.
Of course, when people think of Hoover, they mostly think of the Great Depression.
Throughout the 1920s, the Federal Reserve’s easy money policies helped create an enormous stock market bubble.
In August 1929, the Fed raised interest rates and effectively ended the easy credit period.
Only a few months later, the bubble burst on Black Tuesday, in October 1929, barely seven months after Hoover took office. The Dow lost over 12% that day. It was the most devastating stock market crash in the U.S. up to that point. It also signaled the beginning of the Great Depression.
This happened on Hoover’s watch. And because of that, people pinned the blame squarely on him, regardless of where the fault lay.
Hoover was an easy target. The Democratic National Committee’s publicity chief coined the term “Hooverville” for the countless shantytowns that sprung up across the country.
The term was such a hit, they tried coming up with others.
Newspapers were “Hoover blankets.” The cardboard used in a worn-out shoe was “Hoover leather.” A “Hoover wagon” was a car with horses hitched to it because the owner couldn’t afford gas.
Blaming the Great Depression on Hoover was easy for Democrats. In the minds of many people, Great Depression = Herbert Hoover.
It was obvious a Democrat would win the next election, which is exactly what happened. It took Republicans another 20 years to take back the White House.
Now there’s a good chance Trump will go down as Herbert Hoover II…
Like Hoover, Trump is a rich businessman with investments around the world. He’s also an outsider who hasn’t held elected office before.
Like Hoover, Trump has a troubled relationship with Mexico. Hoover started the Mexican repatriation program. Trump has inflamed Mexicans with his rhetoric and plans to build a border wall.
Hoover implemented enormous infrastructure projects like the Hoover Dam. Trump wants to spend $1 trillion on infrastructure.
Hoover signed the Smoot-Hawley Tariff Act into law under pressure from struggling American workers. The law raised tariffs on thousands of imported goods to record levels. It also kicked off a trade war, reducing American exports by half. It was a crushing blow to the American economy.
Trump is the most protectionist president since Hoover. Just look at the massive tariffs he’s slapped on China. He’s even called himself “a Tariff Man.”
Then there’s the stock market bubble…
Hoover inherited a stock market bubble near its peak – fueled by the Fed’s easy money policies.
I think Trump has, too. And he knows it. He’s called the stock market a “big, fat, ugly bubble.”
There’s an excellent chance this bubble will burst on Trump’s watch. And Democrats will pin the blame on him, just as they did with Hoover.
Trump is the perfect scapegoat. If new shantytowns sprout up, they won’t be Hoovervilles – they’ll be “Trump Towers.”
Trump could go down as the worst president in U.S. history…
But it will not be his fault.
The Deep State’s next move is to pin the coming stock market collapse on Trump. When people think “Greater Depression,” they’ll think “Donald Trump.”
The economy has been on life support since the 2008 financial crisis. The Fed has pumped it up with unprecedented amounts of “stimulus.” This has created enormous distortions and misallocations of capital that need to be flushed.
Think of the trillions of dollars in money-printing programs – euphemistically called quantitative easing 1, 2, and 3.
Meanwhile, with zero and even negative interest rates in many countries, rates are the lowest they’ve been in 5,000 years of recorded human history.
The too-big-to-fail banks are even bigger than they were in 2008. They have more derivatives, and they’re much more dangerous.
If the Deep State wants to trigger a stock market collapse on par with 1929, it just has to pull the plug on the extraordinary life support measures it’s used since the last crisis – something it’s already started to do by hiking interest rates.
If that doesn’t work, its only option is the JFK card…
Chuck Schumer, a powerful Democratic senator and quintessential Deep State swamp creature, discussed the war between Trump and the intelligence community on TV.
Schumer said, “Let me tell you, you take on the intelligence community, they have six ways from Sunday at getting back at you.”
It doesn’t take much imagination to understand what he’s alluding to.
Of course, the Deep State could try to assassinate Trump. It’s obvious the possibility has crossed his mind. He’s taken the unusual step of supplementing his Secret Service protection with loyal private security.
This all points to a crisis ahead…
At minimum, I expect an epic stock market crash as the Deep State plays the Hoover card against Trump.
Remember, the Fed has warped the economy far more drastically than it did in the 1920s, during the dot-com or housing bubble, or during any other period in history. I expect the resulting stock market crash to be that much bigger.
Now, at this point, we’d understand if you were ready to panic.
There’s lots of doom and gloom ahead. But remember, a crisis brings both danger and opportunity.
The upside is, this will create enormous speculative opportunities that will bring life-changing wealth for the well-prepared.
As Doug Casey has said:
Opportunities like that don’t occur every week, or every month, not even every year. So you’ve got to be like a crocodile waiting perhaps for months, perhaps for a year, before the correct prey comes by.
Chief Analyst, Crisis Investing
Justin’s note: If you enjoyed today’s piece, you’ll want to sign up for this Wednesday’s big event at 8 p.m. ET…
That’s when Doug Casey will go on record with his five biggest predictions for 2019 and beyond. These are five of the most controversial calls of his entire career… and it’s imperative that you tune in to hear exactly what’s in store during our world premiere event – Totally Incorrect: LIVE.
During this landmark event, you’ll also get details on five new speculations that could deliver 1,000% or more in the next year.
Our mailbag is flooded with subscribers responding to our founder’s “Totally Incorrect” statements and predictions from the past week…
First, split feedback on the Democratic Party’s sweetheart, AOC…
Dear Casey, I am not a fan of AOC, but I do believe that Western Capitalism is broken. I am retired, and very few people I know can afford to risk putting any money into the stock market. There are so many variables that affect the performance of most stocks, and the average person has little if any control over these variables. I was in the Rolex factory in Switzerland on the day Nixon took the U.S. dollar off the gold standard.
What I witnessed that day left a lasting impression on how fragile an economy can be. At the Rolex facility bells started ringing, and we were all told that no U.S. cash or traveler’s cheques would be accepted until the value of the U.S. dollar could be accurately determined, now that it was no longer backed by gold. So now, people that live in countries using only fiat currencies can tell you any “fish story” they want, with the hope of selling shares or swampland in Florida. Since Trump has cut tax rates for American corporations and the wealthy, they are more at liberty to bring their money back to the U.S. and use it how they please.
It seems they are paying off corporate debt and paying dividends to shareholders. This will not help the middle- or lower-class people. These classes continue to have less and less disposable income, without using credit. How can our economy grow like that? One billionaire’s family can only buy enough commodities to satisfy themselves. But 10,000 families earning $100,000 will buy much more food, clothing, etc. Think about that.
I think she is fabulous. She really cares about humanity compared with the Republican representatives and senators whose only interest is their own reelection and bank account. Mitch McConnell is the worst, he is far more divisive and immoral than Trump. Anything good for the people of this country he blocks. Yeah, I think Ocasio-Cortez will be a great president in the future but meanwhile I am going with Elizabeth Warren. She is smart and has excellent plans for the people of this country. She cares, something that is absent from Mr. Trump.
So you should try on a little love and humility. It might look good on you.
She is NOT a socialist, but a progressive. Keep it straight please.
She may think she is the most important politician, but she is far from it! She will never become president! She currently is the most hated politician.
And readers respond to Tuesday’s Dispatch, “How America Becomes the Next Socialist Hellhole”…
Comparing the United States with Venezuela, a country run by a corrupt, immoral dictator, is fear mongering, like comparing socialism, to communism, which, of course, they are different, not the same. That is why these two forms of government have different names. In theory, a country with a government, “Of the people, for the people, by the people,” will prosper, as long as there is a consensus among the citizens, and the government functions honestly and morally, and follows the Constitution, then the likelihood of the United States of America turning into a country like Venezuela, is unlikely.
It is true, that this country has moved from the freedoms set forth by the writers of our Constitution, towards a more fascist form of government, because every new law, is a freedom lost, and we now have a president, who did not receive the majority of the citizens’ votes, and acts like a dictator, and can’t speak the truth. As for the citizens’ unhappiness with Capitalism, it is the result of the immorality of the Capitalistic way, putting profits before people. Yes, we have done away with slavery, but the wealth of the capitalists has resulted in great power, and greater corruption. From the FDA, to the IRS, the well-being of Americans is being trampled on, because of corruption, in the name of power, money, and profits.
Venezuela’s economy has been destroyed by U.S. military and trade actions against her and it is sadistic of U.S. citizens to crow about it. They have done no harm to you. Leave Venezuela to Venezuelans and mind your own business.
Why is it socialism when it suits you? Venezuela is a mess, but then just look at all the Northern European countries and how good they do economically, socially and globally. You are fanning the flames of fear and should be ashamed.
– Richard (or Muhammad if I disagree with you, apparently)
You, like many who discuss this topic fail to ask the bigger question of, “Why?”
Capitalism is destroying itself through greed and corruption. This is what Americans see when asked about their opinion of capitalism. Until those controlling capitalism realize that the greed and corruption will destroy it, Americans will favor an alternative. Capitalism is destroying itself.
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