The real Nazis in America.

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SJW everywhere are depicting Donald Trump as the Antichrist. It’s no wonder that most of them are entitled Millennials who think that Socialism is a good idea – who wouldn’t want free shit right? But most of us – normal hard working people don’t feel right when we get something, that we don’t think we have earned. What happened to hard work, discipline and dedication? When I was a kid those were the values that my parents shared. Today all these nurtured and professionally raised spoiled toddlers are a disgrace to the their grandfathers who built this country and made America THE GREATEST NATION in the world.

Make no mistake, the west is the BEST. In most of the other parts of the world (except western Europe) these entitled brats would have been made a mockery out of and no one would have taken them seriously. The ideas that they are preaching and trying to physically impose on people (and they call us Nazzis?!) have already proven not to work in the real world – where the grown ups live. It’s no wonder that these people hate successful entrepreneurs. After all almost all are supporters of Bernie Sanders who’s whole narrative was “rich people are bad, poor people are good”. That’s the level of arguments that these people can produce. They are literally toddlers, who are in their twenties.

No wonder that none of them can form any real arguments – with facts aka grown up talk. No wonder that to them Trump is a monster because he is a rich white male, while Hilary is a hero because she is a woman. That’s how dumb they are. There is no gray area for them, it’s either BAD or GOOD. And we only have their parents to blame. All the feminists, fake liberals of the 1990ies that after all were responsible for raising these dummies. Does the country have some major issues we have to address? Yes of course, we have already mentioned those: the crumbling infrastructurethe next financial meltdownwar in Syriapotential war with North Koreathe seemingly endless war in Afghanistanthe ever growing influence of the military industrial complex. All real issues that our future depends on, but racism in 21st century? Really, this is the best you got? I am not impressed. Does Donald Trump have some major issues worth addressing? Of course. Do they include that he is a misogynistic white male? Of course, not. Grow up, mommy will not always be there to hold your hand, get a grip.

 

Is the end near for big banks ?

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In order to answer this question we clarify why we are even asking it. At the heart of every crisis lies a credit bubble. But why do bubbles form?

If you look at a chart of the S&P 500 historical values, you will certainly notice a trend that every 10 years there is a financial crisis. Bubbles should not occur if capital markets function the way they are described to function in textbooks, since prices of assets should always reflect true risk and rational expectations. After every bubble bursts, the first question always is why did everyone not realise there was a bubble? Perhaps too many people have a vested interest in the continuation of a bubble and therefore choose to ignore the signs. So there is definitely a cyclical feel to all of this. However, we can’t ignore how the banking sector has changed in the past 20 years and must also consider this into account. In the crash of 2008, big banks proved that they can’t be seen a growth sector any more.

Where do we go from here?

This only goes to prove furthermore that banks should probably be seen as a highly regulated public utility business. Many would argue that banks should return to their origins – acting as intermediaries – converting checking and saving deposits to consumer and commercial loans. That is a crucial public service – vital for keeping the economy healthy. That is the historic and fundamental role of banks. After securitization proved that moral hazard is a real risk for our economy, maybe it’s time that big banks return to their original role. The idea is definitely resurfacing, as the regulations serve as proof of this. However, we should also consider that if banks are to become “public utilities”, a term which is often synonymous with “natural monopoly”, there is a risk that big banks will cement their “too big to fail” narrative.

Are there any other alternatives?

Even if big banks don’t become “Public utilities”, they would still definitely have to change their business models to adapt to the new social, economic, regulatory and technological environment. This is where FinTech comes into the conversation. Financial Technology as it is called, represents the emerging financial services sector of the 21st century. Most big banks still use mainframe computers, which are reliable, but slow. That’s why in the U.S. transactions sometime take 3 days to process. Recently however, there have been a number of startup companies that have emerged on the market, that provide operational transactions at a very low cost. Other lending innovators enable users to bypass traditional intermediaries (banks) with a peer-to-peer lending platforms. Companies that offer financial planning and portfolio management have emerged as popular alternatives to traditional wealth managers – big part of the global banking conglomerates (like Citigroup for example) balance sheet. New financial startup companies are extracting the most profitable portions of the baking models, leaving banks struck with less profitable activities.

In order for big banks to survive, they must change their business model. Of course they are not doomed and the end of big banks is a bit exaggerated. They could still use their superior resources to buy up FinTech companies. FinTech companies have manage to acquire little over $12 billion dollars in venture capitalism for 2016, while 5 of the biggest banks in the world control assets of $15 trillion. FinTech companies look like peanuts compared to them. So the FinTech sector is still hardly making a dent. The bigger threat comes from companies like Amazon, Facebook and Ali Express, who have large databases of their clients. In order to price risk appropriately, banks should know their customers- how likely are they to default. This is where the information data bases that these relatively new big companies possess come into play. However, big banks still have the advantage, as they already have banking licences and can use depositor’s money to give out loans.

Nevertheless, new FinTech startups could serve as a wakeup call for big banks. The rise of this kind of companies gives big banks a very clear path to follow: Fewer physical branches, fewer staff, introducement of new technologies, which will result in easier transactions, integration of cloud computing and data storage into the system.

Does it really matter who the president is?

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Couple of  months ago was election time in the US and everyone had to choose the team they would support. I’ve always found elections in general really interesting. How people, friends, family members just choose sides and could argue for hours which side is best. What if there is no best side? I followed the elections very closely and I found it fascinating how much of a popularity contest the whole elections and political process really is.

We, as people are generally not interested in certain policies, simply in the persona of the candidate. Donald Trump presented himself as not a part of the establishment – an outsider. This certainly won him a lot of supporters, that were fed up with the current system, that has done nothing for them. For most people it’s almost impossible to find any real differences between democrats and republicans. They all make deals behind closed doors, while we argue which side is best. When they are giving interviews on politically correct mainstream media shows, they pretend to be against each other, but in truth they serve the same masters.

How much does it cost to get in office?

Running a political campaign ain’t an easy thing, nor cheap. You gotta have a lot of sponsors and influential people behind you if you want to win. Do you really think that all those people won’t come for favours when a certain candidate wins an election?

In the last 18 years big companies have spent in total over $6,000,000,000 dollars in lobbying fees. Over $6,000,000,000 have entered the pockets of our “representative”. But the question is who do they really represent? Because it is certainly not us – the people. It is mostly big business corporations and certain influential groups.

The message I want to send is not one of apathy – the apathy comes from the politicians. They don’t care about us, they only care about their own interest. This is not a free market system. The bigger government you have, the bigger the corruption. We should not let ourselves be fooled by populists and liars that only want more for themselves and less for everybody else. And this is all in front of us – we just have to read the data.

The average American believes that the richest fifth own 59% of the wealth and the bottom 40% own 9%. The reality is strikingly different. The top 20% of US households own more than 84% of the wealth, and the bottom 40% combine for a paltry of 0,3%. The Economic Inequality is far worse than we think. Unless we do something now, it will only get worse from here and I don’t believe that the current system that we have in place is capable of dealing with this problem. It is only us – the people that can really make a difference.

America’s crumbling infrastructure

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On Tuesday it was reported that Hanford Nuclear Reservation tunnel collapsed, which triggered all alerts. Thousands of workers were warned to take cover as the collapse began. The tunnel was full of contaminated particles, as it was previously used for building nuclear weapons.  This is only the most recent accident with crumbling infrastructure in the U.S. The American Society of Civil Engineers (ASCE) gave our infrastructure a D+ grade. We are not even C students now… They have estimated that the problems with our infrastructure is costing U.S. tax payer around $3,8 trillion every year.

What happened?

Every 4th bridge is in dire condition and in need of repairs. Every year approximately 15,000 people die, because of the poor state of the highways. Most of you like me are probably wondering how we ended up here? Well, it really simple – not enough money are going to infrastructure. In 2017 Congress decided to delegate $300 billion to rebuilding our infrastructure, which many believe is not enough. In comparison the U.S. military budget is double that – $600 billion. The military industrial complex tentacles are all over our government as they have long gone bought all of the politicians. Over 30% of the country is on social welfare – highest number ever in U.S. history… The intelligence agencies budget is close to $500 billion and as we now know thanks to whistleblowers like Edward Snowden it’s mostly used to spy on hard working American people – not Islamic terrorists. This is what the government of former president Obama brought to the U.S. – socialism in it’s worse form…

Is Obama the worst president in the US history?

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Obama left the White House the same way he got into it – lying to his teeth. He came with a promise of change, but all he offered was the Status Quo. He came into office in a time, when the country was in ashes and he didn’t leave it in a better place.

After 8 years of being in office he expressed how happy he was that he would leave this administration without a major scandal. But is this really the case?

In the beginning of his campaign he opposed the Patriot Act, which made spying on American citizens legal. However, after he entered the White House he increased NSA’s budget and under his leadership the organisation created dozens of new programs to spy on people. It was all exposed by whistleblowers like Edward Snowden. The increase in the capabilities of the NSA were of course accepted in the name of fighting terrorism. That’s what all dictators do. They hide behind fear tactics.

Moreover this is the slowest recovery from a financial crisis in US history, since the Great Depression. This is mainly because Obama’s administration got the Dodd-Frank Act passed, which made getting credit for the small business owners almost impossible.

Let’s talk about former president Obama’s foreign policy, after all he is a Nobel Peace Prize winner. Yes, you heard correctly – the man that helped in the creation of ISIS is a Nobel Peace Prize winner. He bombed and destabilized 7 countries in total – Libya, Syria, Iraq, Afghanistan, Yemen, Somalia and Pakistan. The former secretary of state – Hilary Clinton, who was appointed by president Obama, was caught saying in an interview for CBS about Muamar Kadafi’s death: “We came, we saw, he died”. This pretty much sums up the foreign policy of Obama.

Don’t you think it’s time to wake up from this dream already? Isn’t time to stop believing politicians, that would say and do anything just to get in office so they could spend OUR money. During Barak Obama’s presidency a whopping 35,4% of the US citizens were on welfare. That’s over 100,000,000 people. That’s the legacy of Obama – one of ashes.

Trump to break up big banks

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On Monday in an interview for Bloomberg President Donald Trump announced that he and his team are considering reviving the famous Glass-Steagall act. This move will effectively break up commercial from investment banks and will bring stability back to the sector.

What is the Glass-Steagall act?

In the past commercial and investment banks were separated entities. The key feature which distinguishes commercial banks from any other type of financial institution is that a commercial bank must have a banking license. This permits them to accept deposits from the public. The price of being allowed to accept deposits is that banks must subject themselves to stricter regulations.

Today however, after the Gramm-Leach-Bliley act was passed in 1999, by then President Clinton (The Clinton clan fucking up the country since the 90s) commercial and investment banks have mostly merged and formed “complex financial institutions”, as they’re known by the regulators.

What went wrong?

This has enables securitization process and banks have change their business models. 30 years ago if you wanted to obtain a mortgage for your house, the lender expected you to pay them back. Since the development of securitization however, people who make the loan are no longer in danger if there is a risk it to be repaid. In the old system, when a homeowner paid their mortgage every month, the money went to the local lender. So the lenders were very careful who they gave money to. In the new system lenders sold the mortgages to investment banks, who then packaged them into what’s called a CDO(collateralized debt obligation) with other loans (credit card debt, car loans etc.) and sold them to investors. So now, when the person who obtained the loan paid his monthly instalments, the money didn’t go to the bank that gave them the loan in the first place – they went to investors from all over the world. Therefore, now, the person who gave the loan, didn’t bare the risk of that transaction. It’s not surprising how moral hazard can occur out of this situation. And that is exactly what happened, the banks gave mortgage loans to virtually anybody, these people later defaulted on their loans and the bubble burst. So it’s understandable how the public lost confidence in the financial institutions.

Necessary change.

It comes as no surprise that Donald Trump wants to break up big banks, really. They are the main cause for the last financial crisis and the bubble that is being formed right now (hyperlink here). If Trump goes to proceed with this he will definitely make a step in the right direction in Making America Great Again. Not to mention how many people already want to impeach him and if he is to survive he must make sure that the next recession hits after his term ends. He already knows that there are massive bubbles in 5 or 6 different sectors and it’s only a matter of time before these bubbles burst.

Another major blow for the U.S.

 

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It has just been announced there will be four de-escalation zones in Syria, mainly in territories controlled by the “moderate” rebels. The guarantors of the ceasefire will be Iran, Turkey and Russia. Notice who is missing?

Who is to gain the most?

RUSSIA

This is a massive win for Russia as Syrian troops can now concentrate their efforts in liberating the east of the country from ISIS. Why is this a win for Russia? Well it cements Putin’s influence in the region and after Gazprom (Russia’s biggest oil company) signed a contract to control of the oil in the country (estimated to produce over 400,000 barrels a day) after the Syrian army liberates the east of the country they could start extracting the oil. Russian government deficits have been growing thanks to the cheap oil and low production. Now that can change as they practically take over Syrian oil and gas.

SYRIA

By Syria I mean the legitimate government of the country. If they manage to drive ISIS out of the country they would have practically won the war. Over 80% of the population is under Bashar Assad rule that means that he is collecting all of the tax money. After they liberate the oil and gas rich and around the banks of the Euphrates River – where the other largest part of the population lives the rebels would be left with almost nothing. The ceasefire is set to be in place for 6 months – enough of a time to liberate most of the central and eastern parts of the country as troops will be freed up from the western fronts and with all of the aviation help of Russia it seems reasonable.

IRAN and HEZBOLLAH

Obviously every win for the Syrian government is also a win for Iran. The Islamic Republic grip will be even stronger now as many of the militias fighting in Syria are Shiite. This of course is a massive loss for Israel as they have been fighting Hezbollah for years now and it sure seems like this won’t be the last war in the Middle East. When the war ends they will go to reap the benefits of being the victor in a war, have no doubt about that.

TURKEY

Turkey has been supporting the rebels since day one – providing them with ammunition and sophisticated weaponry. That’s not a cheap thing to do especially now when the country is on the brink of economic collapse. So they could now reallocate these resources in their fight against the Kurds.

The Syrian people

By far the biggest winners are the Syrian people as they have suffered the consequences of war for over 6 years now. The sooner this bloody war comes to an end the better for them.

Who are the biggest losers?

Well that’s pretty easy to answer – America. The Russian MOD has already come out with an announcement that U.S. planes won’t be able to fly freely over Syria anymore. Admittedly, they have said this in the past, as well and have not followed their threats through. However, this time this is supported by Turkey – a close ally to the U.S. Iran’s growing influence in Syria is not good news neither, as they are deemed the biggest threat to the Western world by the U.S. The fact that the U.S. wasn’t even invited to the talks in Astana says it all – the U.S. influence in the Middle East is slowly but surely coming to an end.

The delusional Left

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Growing up I used to think that I leaned more to the left. I strongly believe in free speech, equal rights for everyone – gays, lesbians, minorities doesn’t matter. West is the best thanks to these values. So I find it a bit shocking how feminists and other SJW groups hate on the West, which is the best place to live in the world. No westerner is rushing to any Arab country to live there. That tells you all you need to know. There is no Saudi Arabian dream. There is only the American dream.

The hypocrisy of the left

Feminists are always first to criticize the western society, presenting it as a misogynistic patriarchy, in which you can only succeed if you are a white, Christian man. Well, if you are a lazy looser that doesn’t gives his all you probably won’t succeed of course. And if by any chance you happened to be Black, Hispanic or Muslim does that change the fact that you didn’t try hard enough? America is the land of the free and a land of opportunity, so when I see those entitled spoiled toddlers a.k.a. SJW, with degrees in Sociology and Women studies (whatever the fuck that means) praising communism and basically wanting free shit, because they decided to form their career around ideas that we have already achieved. Activism isn’t a job, guys. Yes, some feminists have turned it into a successful business, but that just goes to show you that all this talk is just bullshit.
 The Left on Muslims

How the left views the Muslim world is beyond me, honestly. For people who should be fighting for equal rights for women and gays they sure seem to focus on only what’s happening in the West, where in most countries gays and women already have equal rights. Do you know what they do to gays in the Muslim world? They throw them from the rooftops of buildings. I don’t see any SJW fighting for gay rights in Syria or Iraq. Do you know what happens to women in Muslim countries? Have you heard of female genital mutilation? Well this is basically a “ritual” in which men cut off girl’s external genitalia, so that they can’t get enjoyment out of sex. UNICEF estimated that in 2016 more than 200,000,000 million women living in 30 countries (majority Muslim most of them) have undergone this procedures.

This is a barbaric religion that doesn’t have any place in the Western world. It’s about time we admit this. These are not peaceful people. Mohammed wasn’t a peaceful man. He was essentially a warlord that wanted to unite all of the Arab people and conquer the rest of the world. I haven’t heard of any Buddhist terrorist attacks recently. You just have to see what Muslims do to minorities in their midst. They often refer to them as infidels. And infidels according to the Quran should be dealt appropriately. Reference: the Yazidis in Iraq, Syria and Turkey. They have been literally enslaved by the majority Sunni in these countries. Is this your peaceful religion?

Yes, of course not all Muslims are that radical. But let’s see what type of Muslim we consider moderate. Those living in the West. Those who share our values generally. So the West has essentially showed them the fruits of our civilization – the most advance the world has ever seen in modern history.

 

Who is taking over the Middle East?

 

Oil-drilling

Middle Eastern counties possess 47% of the world’s proven oil reserves. For Saudi Arabia the oil industry accounts for 87% of budget revenues. And the picture is almost the same with other Middle Eastern countries. So it’s not really a surprise that whoever controls the oil will effectively control the Middle East. However Saudis are beginning to lose market share and since 2015 they’ve experienced huge deficits. This has only increased the issue of debt and the Kingdom had to draw from reserves. This is very bad timing for the country, as Saudi Arabia biggest oil company – Aramco is preparing for an IPO next year. They are slowly losing market share to Iran and Iraq.

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How is the market changing?

U.S. companies like Exxon Mobil have been the dominant players on the ground for many years, but that is starting to change now. Since Russia entered the geopolitical clusterfuck around Iraq and Syria, Gazprom (Russia’s biggest oil and gas company) signed a deal to monopolize the whole Syrian oil industry, which is estimated to produce over 400,000 barrels a day. Shortly after that the SAA (Syrian Arab Army) with the huge help of the Russian Airforce and Russian Special Forces on the ground started liberating all the gas and oil fields around Palmyra.

This comes only after months of negotiation between Gazprom and the Syrian government, which only goes to show you that there is no free lunch in this world – especially when it comes to the Russians. Moreover, this is one more win for the Russian’s in Syria – they seem to be the biggest beneficiaries of the war.

Who is the biggest winner from the war in Syria?

With only a handful of planes they managed to revive the Assad regime, take over the oil industry and cement there foreign gun export industry in the region. Do you think that they are giving all these tanks, rockets, air defense system and ammunition for free? When we draw the line and this bloody conflict is finally over, it would seem that Russia’s profits from the war would have skyrocketed after their involvement in 2015.

Russian companies are also cooperating with Kurds on the ground and are exploring this option as well – as Iraqi Kurdistan oil industry is estimated that it can produce over 600,000 barrels a day.

So will there be a new hegemon in the Middle East?

In a word – NO. United States arch enemy – Iran has also taken over Iraq. This is bad news for the U.S., that’s why we have seen a shift in the U.S.’s policy recently. They have changed their support from Iraq’s central government to the Kurds in the north and east parts of the country. After all, they control 50% of the oil in the country and have been very effective on the ground against ISIS. The U.S. is also still a close Ally to Saudi Arabia, Qatar and UAE, so to say that the U.S. is losing its grip on the whole situation is over exaggerated. However, there’re emerging new players on the ground that currently are controlling a small portion of the market, but are growing ever faster and there is certainly a trend to be noticed here.

How to retire wealthy

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Who wants to live his last years on a pension that will never really be enough? Today I have prepared a couple of advice from wealthy people like Warren Buffet, Jeff Bezos and Mark Cuban. You don’t need to be the next Steve Jobs or Elon Musk in order to retire with a couple of millions in the bank. I strongly believe that if you follow a couple of simple rules you can amass wealth and preserve it successfully.

2 key personal traits

According to Warren Buffet and Jeff Bezos the 2 most important personal traits that you have to acquire in order to retire with a smile on your face are patience and discipline. When I say patience I mean that feeling you have inside you when the new Iphone is finally out and you just want to have it. You have to resist that feeling, no matter how dope the Iphone 8 will look. It is recommended that you save up to 15% of your paycheck each month. With the rest of it you can pay your bills and invest. And what you got left are your spending money or fun money. Most people do exactly the opposite, they spend their money on fun things, pay their bills after and invest what they have left, which is usually nothing. And when they get to 65, they’re wondering what happened with all their hard earned money.

After you have the discipline to save up some money, comes the patience part in play. You won’t get rich overnight by investing 15% of your paycheck. The road to retiring wealthy is a long, gradual one. You don’t have to lose the best years of your life, planning your retirement. For many retired people nowadays the financial worries are a big problem. But if you follow these simple rules your life after retirement will probably be one without any care.

Soon I will also write a piece on how and where exactly you can invest your money. Subscribe and stay #kinformed.