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Is A Financial Crisis Coming To Canada?

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“The pending credit cycle in Canada will be one for the ages.”

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– Marc Cohodes, May 3rd, 2017

Lately, the word “bubble” has been used more often to describe the overheated housing markets in Canadian cities like Toronto and Vancouver. Even Bank of Montreal’s Chief Economist didn’t hold back when he wrote in a report, “Let’s drop the pretense. The Toronto housing market — and the many cities surrounding it — are in a housing bubble”(1).

In March, house prices in Toronto rose a record 33.2% year-over-year and the city was ranked number 1 in the world with the fastest-growing house prices; Vancouver came in third on the list after Sydney, Australia (2).  It’s getting to be such a problem that Ontario’s premier has met with the mayors of Toronto and surrounding areas to discuss housing affordability, while the Prime Minister has admitted that the federal government is monitoring the housing market closely.

But what might have been the clearest sign yet that the housing market is in a bubble was the 2017 Real Estate Expo in Toronto where real estate agencies, developers, and banks paid celebrities like Tony Robins and Pitbull to encourage people to join in on the real estate buying frenzy. Real Estate agents on a stage told prospective buyers things like: “Toronto has become one of the last safe havens in the world,” “Fear will kill you,” and, “Just jump in!” (3)

Clearly, this message is getting around as statistics show an increasing portion of the population owning more than one residential home. This housing bubble, like all other financial bubbles, is the consequence of historically low interest rates, which is the beginning phase of a credit cycle that inflates the bubble. But eventually interest rates rise, and when they do the bubble pops, the cycle reverses, and prices fall.

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The question is, what happens when the cycle turns? If we take a close look at the situation in Canada, we can see instability across the board whether it’s in the economy, in the banking system, or in government finances, and due to this instability, we can reasonably assume that when this cycle turns, it will be pretty ugly for Canadians.

Home Capital Group

Home Capital Group is Canada’s largest non-bank mortgage lender focused primarily on the subprime market — mortgage applicants rejected by the banks — through its subsidiary Home Trust Company. On April 26th, the stock of Home Capital plunged 65% when news came out that the company secured an emergency loan worth C$2 billion to provide liquidity for the company after an overwhelming number of depositors withdrew their money from the high interest savings accounts Home Trust offers — money Home Capital uses to provide mortgages at a higher interest rate, profiting from the spread.

From April 24th to May 1st, Home Capital saw its deposits shrink from C$1.4 billion to C$391 million (4). The problems for Home Capital began back in 2014 when the company cut ties with 45 brokers who were creating mortgages with fraudulent income information that amounted to 10% of Home Trust’s total mortgage originations. Fast forward three years and the Ontario Securities Commission has now submitted formal allegations against the company and the three former and current executives, alleging they knowingly misled investors when discussing the impact of the fraudulent mortgages.

Meanwhile, Home Capital has seen their CFO retire, its Chief Risk Officier leave unannounced, several board members resign, its founder Gerald Soloway step down as CEO and remove himself from the board, his replacement CEO fired, and a total of 33 employees leave in 2016 alone. Representing only 1% of the total mortgage market, it’s too early to know whether Home Capital’s problems will spread, but already investors are losing what matters most in a highly leveraged business: confidence.

On April 26th, the day Home Capital lost 65% of its value, Equitable Group, First National Financial, and Street Capital Group saw their stocks fall 32%, 11%, and 10%, respectively. In the week proceeding, Equitable Group, a mortgage lender that mirrors Home Capital, saw C$75 million worth of deposits withdrawn as their stock fell 39% (5). Canada’s finance minister Bill Morneau has said there is no link between Home Capital and risks in the housing market and Bank of Canada governor Stephen Poloz has said that Home Capital’s problems are “idiosyncratic,” believing they won’t trigger a contagion effect.

Are these statements akin to when the chairman of the United States’ central bank, Ben Bernanke, said in 2007 that “the problems in the subprime market seems likely to be contained”(6)? Already we’ve seen actions being taken to safeguard contagion from spreading. The C$2 billion emergency loan that kept the lights on at Home Capital was provided by the Health Care of Ontario Pension Plan with very stringent terms. The loans have an effective interest rate of 22.5% and are secured against two pools of mortgages from Home Capital’s loan book.

In pool A, Home Capital can borrow C$0.50 of every dollar pledged and in pool B C$0.26 for every dollar pledged. These terms tell us what the HOOPP thinks about the quality of these mortgages being put up for collateral and of Home Capital’s ability to repay the loan. Meanwhile, as investors were dumping Home Capital’s stock en masse, two asset managing companies provided a floor for the stock. CIBC Asset Management increased its position from 2.46 million shares to 9.69 million, while Turtle Creek Asset Management, Home Capital’s biggest investor, was also a buyer (7). It is important to note that these two asset managers were not investing their own money, but were making “investments” on behalf of other people.

Home Capital has also raised money by selling C$1.5 billion in mortgage renewals to MCAP Corp., one of Canada’s largest independent mortgage financing companies that originates, securitizes, trades and services residential and commercial mortgages (8). Equitable Group, Home Capital’s mirror image who suffered its own bout of eroding investor confidence, has been given a C$2 billion funding backstop by a syndicate made up of the 6 major Canadian banks to provide support in case the lender should need it (9). All in all, the fear of contagion is clearly evident and the question that needs to be answered is whether the fraudulent mortgages in Home Capital loan book are limited to 10% or is it a much higher number? And, how many of these mortgages are insured by the Canadian taxpayer through the CMHC?

CMHC

The Canadian Mortgage and Housing Corporation is a government institution that has been a leading contributor to the inflating of the Canadian housing bubble. The institution is the largest provider of mortgage-insurance for homeowners unable to make a 20% down-payment, protecting lenders from default thus enabling them to make more risky loans.

The CMHC is similar to America’s Fannie Mae and Freddie Mac, two government institutions that were largely responsible for the collapse of the U.S. housing market. Like Fannie Mae and Freddie Mac, CMHC also buys and sells mortgage-backed securities, mortgages that are pooled together into a bond that became the popular financial instrument that sank the global financial system in 2008. The CMHC buying mortgages leads to more lenient lending standards as banks know they can make loans that they can later sell to the CMHC and not have to keep on their books.

All of this is backed by the Canadian government and thus the Canadian taxpayer. What’s really egregious about the CMHC is that while they provide banks with full insurance against losses, it’s the homeowner who pays the insurance premium and that taxpayer who pays the deductible, the banks pay nothing. Currently, the CMHC has about 9% equity against its liabilities outstanding (10). If there is a housing correction, the CMHC would need a taxpayer bailout of epic proportions.

Banks

It wasn’t too long ago that the Canadian banking system was considered the darling of the financial world. Back in 2008, a survey by the World Economic Forum listed Canada’s banking system as the world’s safest (11), a title also given to the country by the rating agency Moody’s in 2012 (12). But today the sentiment is much different as Moody’s has recently cut the credit rating of the 6 Canadian chartered-banks stating: “Continued growth in Canadian consumer debt and elevated housing prices leaves consumers, and Canadian banks, more vulnerable to downside risks facing the Canadian economy than in the past(13).

In March, the Bank of International Settlements (the Central Banks’ Central Bank) listed Canada as having the riskiest banking system of developed countries based on credit-to-GDP gap, property price gap, debt service ratio, and debt service ratio if interest rates rise (14). Residential mortgages make up about 52% of all Canadian bank loans so suffice it to say, the banking system is very vulnerable to a downturn in the housing market (15).

What makes matters worse are the leverage ratios of the Canadian banks. The leverage ratio is a capital adequacy figure that measures a bank’s ability to withstand negative shocks to its balance sheet. In a balance sheet, the difference between a company’s assets and liabilities is its equity so that if a company sells off its assets to pay its liabilities, the equity left over is returned to the owners. If a bank has $100 in assets and $90 in debt, then $10 is the difference and represents 10% equity or capital. The problem with assets is they can fall in value. If the capital ratio is at 10%, then that means assets can fall in value up to 10% before the bank is unable to pay its creditors. The leverage ratio is an international regulatory banking standard set up by the Basel Committee on Banking Supervision. The leverage ratio measures the core capital of a bank against its total assets.

As per their 2016 annual reports, the major Canadian banks leverage ratios are: RBC – 4.4%, TD – 4%, BMO – 4.2%, Scotia – 4.4%, CIBC – 4%, National Bank – 3.7% (16)(17)(18)(19)(20)(21). If the value of the assets of these banks fall in percentage more than these figures, then the banks become insolvent. And of course, in the banking industry, loans are considered assets and as stated earlier, 52% of the banks’ loan book is made up of residential mortgages. Compounding the situation is the report from credit agency Equifax that says they saw a 52% increase in suspicious mortgages between 2013 and 2016 (22).

This leads one to ask was Home Capital the only lender to partake in mortgage fraud? How secure are the uninsured mortgages on the banks’ loan book and what happens if these people lose their jobs and are unable to make mortgage payments? A recent survey suggests that over half of Canadians are $200 away from not being able to meet their financial obligations (23).

Canada’s Dependence on Housing

Since the decline of energy prices, Canada’s economy has become more reliant on the housing industry. In fact, without the growth in housing, Canada’s economy would be contracting. It is estimated that housing makes up 20% of Canada’s GDP with industries like real estate, construction, and financial services.

The number is significantly higher when you consider the indirect impact of a booming housing market. Lawyer fees, government revenues, and increased retail purchases due to the wealth effect of rising home equity values enabling households to spend more (24). Consumer spending as a share of GDP is around the highest since the 1960s (25).

Debt-to-disposable income was at a record high 167% in March (26), and while this ratio has little impact day-to-day as Canadians aren’t expected to pay off their debts tomorrow, it does highlight the vulnerability of Canadians to economic shocks. Another indicator, the debt-to-service ratio, which is the cost to carry debt relative to income, is at 14% and has remained there since 2008, but that’s because interest rates have been at historic lows since 2008. What happens if interest rates rise? A survey by Manulife Bank found that out of 2,098 people polled, 72% said they would have difficulty paying their mortgage if their payments rose by 10%. An increase of 10% in mortgage payments could take as little as a single percentage point increase in interest rates (27).

HELOCs = Home Equity Loans of Canadians

Government Debt

Moving on to the problems in the public sector, we’ve already seen the harm government can do with the CMHC distorting the housing market by guaranteeing mortgages and mortgage-backed securities, and blame should also be put on the central bank’s historic interest rate policy. But looking specifically at government finances, the debt held by provincial governments is alarming. Ontario has the largest debt held by any sub-sovereign in the world at over C$300 billion.

Quebec is at over C$180 billion in debt. Other provinces are currently running deficits with no end in sight. At the federal level, debt isn’t too bad at just over C$700 billion when you compare it to America’s $20 trillion, but that could change by the time the Trudeau administration is voted out of office. It is estimated that Canada could run deficits until 2050 (28) with the policies enacted by Prime Minister Trudeau and he’s on pace to break the all-time record for federal government spending per Canadian despite Canada not being in a recession or at war (29).

Excessive debt is future consumption denied while higher taxation ensured, both outcomes are destructive to an economy, as more of the country’s capital and resources are directed towards paying the interest on the debt rather than being used in the real economy. Moreover, as a country becomes addicted to government spending, it becomes more reliant on it and thus harder to cut. If the government is forced to cut spending, it will have negative ramifications throughout the country for many Canadians dependent on it.

Gold

A development that was largely ignored by the corporate media, but should concern Canadians, is that the Canadian government has almost no gold left in its reserves (30). Unlike America, Germany, Russia and China, countries with vast gold reserves, practically all of Canada’s reserves are pieces of paper. This is foolish and short-sighted as gold has proved to be the ultimate form of money that will retain its value during a crisis, while paper assets can easily evaporate in value during a crisis of confidence and a deterioration in confidence is exactly what could ignite a financial crisis in Canada.

The Loonie

The Canadian loonie has been under pressure in the wake of the Home Capital debacle, dipping below 0.73 to the U.S. dollar. In 5 years, the loonie has gone from being at par with the U.S. dollar to falling under 0.70 at the end of 2015, when oil prices were at its lowest. This weakness in the loonie creates price inflation for Canadians as prices are a reflection of the value of money. I believe this 0.70 mark is an important psychological level for the Bank of Canada because when the loonie falls below this level people start to feel it more at the grocery store and financial commentators start to make noise about it.

The bank has two means of supporting the loonie: raising interest rates or using their reserves to buy it in the currency markets. If we explore scenario one it’s not a pretty picture. The current rate at the Bank of Canada is 0.5% and people have been calling for them to begin raising it for a while, especially now that the U.S. central bank has begun raising its rates putting further pressure on the loonie/dollar exchange. A rise in interest rates will in all likelihood pop the housing bubble as debt becomes more expensive, decreasing demand for mortgages.

When house prices fall, reflecting the decrease in demand, that’s when delinquency rates rise as homeowners, especially in the subprime market, go underwater as their mortgages become more expensive than the value of the home. As delinquencies rise, houses are foreclosed and put on the market increasing supply, putting more downward pressure on prices. The CMHC (taxpayer) then needs to cover all the mortgages and securities it insured, while at the same time the value of their assets are falling. With only 9% equity, the CMHC would need a massive government bailout. If the banks’ assets fall below their leverage ratios, then they too become insolvent, needing either a bail-in or bailout. At this point, a full-blown crisis emerges, leading to further erosion of confidence in Canada and the loonie. Rising inflation is countered with higher interest rates, and the higher cost of debt cripples the economy as highly indebted individuals, businesses and governments all have to cut back on their spending leading to higher unemployment.

It’s clear why the Bank of Canada has been so reluctant to raise interest rates. Scenario two, using reserves to prop up the loonie, will likely be futile as the market is more powerful than governments. It may work at the beginning and buy time, but as the Bank of Canada bleeds through its reserves, this in itself will erode confidence leaving them in the same position they found themselves in at the beginning, only this time without any bullets left in the barrel. A third scenario is to just let the loonie crater and let price inflation run rampant. This might be feasible to start, but as consumer prices explode Canadians will be squeezed as their cost of living outpaces their income leading to lower living standards and social unrest.

Final Remarks

Using the 2008 financial crisis in America as a model, it wasn’t until September 2008 when the government nationalized Fannie Mae and Freddie Mac – which backed $6.2 trillion worth of mortgages – making it clear to everyone that a major crisis was unfolding, but there were many signs leading up to that moment that indicated something bad was brewing in the housing market, including in April 2007 when America’s largest subprime lender, New Century Financial, declared bankruptcy.

In Canada, already the Toronto developer Urbancorp has filed for bankruptcy and Home Capital would have done the same if not for the rescue loan and it’s still highly probable that Home Capital will file for bankruptcy in the weeks or months to come. Are we in the early innings of a financial crisis in Canada? What will happen to the loonie if the markets and its speculators lose confidence in Canada? And how will the Bank of Canada respond to a falling loonie? So far in 2017, the loonie has been the worst-performing major currency in the world. I’m not predicting that a major storm is a certainty, but there’s no denying that there are dark clouds forming above Canada.

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Chilling “Before And After” Photos Of Libya Go Viral

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In Brief

  • The Facts:

    A man takes pictures of Libya before and after post Hillary Clinton-NATO “liberation” of Libya. The reality is chilling.

  • Reflect On:

    What was the real reason Gadaffi was removed from power? Why was Hillary Clinton so proud of killing this man only to leave the country in devastation? Are we doing the right thing by supporting these politicians?

In the year 2000, a Libyan man took several photos of himself situated at various spots across the city of Benghazi, Libya. 18 years later, he recently revisited the exact same locations to take photos of the spectacular, beautiful human trafficking laden, NATO liberated mess of modern day Libya under the rule of the United Nation’s backed regime.

When we think about how western nations have gone into countries and destructed what they had, took over and ‘rebuilt’ as it’s often called, we have this image of something being done that is ‘right.’ What we don’t consider is all of the innocent people who are killed, the REAL reasons why western countries are looking to take over others, why they create, fund and aggressively push the idea of terrorism and so forth.

“Utter devastation” is how Libya is described today, after a coalition of over 19 countries and NATO took out the regime, in an incredible show of force that seems to resemble what they want to do to Syria or Iran today if you observe the pattern.

The man’s before and after photos have gone viral, with 50,000 retweets at least after being posted to an account that tends to feature other historical images of Libya while it was under the rule of the enemy of both Al Qaeda and the West, Gaddafi, between 1969 and 2011.

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Via Zerohedge…

It appears people do still care about Libya even if the political elites in Paris, London, and Washington who destroyed the country have moved on. Though we should recall that British foreign secretary Boris Johnson was caught on tape in a private meeting last year saying Libya was ripe for UK investment, but only after Libyans “clear the dead bodies away.”

We previously detailed in Libya’s Slave Auctions And African Genocide: What Hillary Knew how Libya went from being a stable, modernizing secular state to a hellhole of roving jihadist militias, warring rival governments, and open-air slave auctions of captured migrants.

Yet what the viral photos confirm is that Libya was once a place of sprawling hotels, wide and clean city streets, functioning infrastructure, and lively neighborhoods. But these very places are now bullet-ridden ruins rotting amidst the political backdrop of the ‘Mad Max’ style chaos unleashed immediately after US-NATO’s bombing the country into regime change.

Hillary still says that she has no regrets even after Obama timidly voiced a half-hearted and too-little-too-late Libya mea culpa of sorts in 2016.

Though Hillary’s beloved Libyan Al Qaeda …”rebels” — legitimized and empowered through broad support from the West — are now among the very militias hosting slave auctions and fueling the European refugee crisis, she’s never so much as hinted that regime change in Libya left the country and much of the region in shambles. Instead, she simply chose to conclude her role in the tragic story of Libya with her crazed and gleeful declaration of “we came, we saw, he died.”

Regime change enthusiasts everywhere please take note of what your blind jingoism has wrought.

A year before the NATO bombing of Libya the UN Development Programme (UNDP) assigned a Human Development Index (HDI) ranking of 53 to Libya (out of 169 countries ranked, Libya ranked highest on the African continent).

Right up until the eve of NATO’s air campaign against the Libyan state, international media outlets understood and acknowledged the country’s high human development rankings, though it later became inconvenient to present the empirical data. A February 2011 BBC report is a case in point.

The 2011 war and aftermath created a failed state with a once economically independent population now turned largely dependent on foreign aid and relief.

Currently considered to be at “emergency levels” of need, prior to NATO intervention Libya was not even on the World Food Program’s radar, yet is now considered a dire humanitarian disaster zone.

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Should Government Be ‘Protecting’ Gender Identity/Expression?

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In Brief

  • The Facts:

    Ontario's Bill 89 expanded the province's child welfare laws to include protection of a child's "gender identity and gender expression."

  • Reflect On:

    Is the ability of individuals in a society to respect and manage differences amongst one another something that is best fostered by mandated government oversight?

With any new legislation that increases the power of government over people–and what new legislation can you think of in recent history that does otherwise?—there is reason for concern and vigilance.

For example, a year ago the Ontario government passed Bill 89 into law. It was called the ‘Supporting Children, Youth and Families Act’ and was an update to the province’s child welfare laws, including child protective services, foster care, and adoption.

New ‘Protections’ For Gender Identity And Gender Expression

Of note was an update to the criteria for analyzing the wellbeing of a child to match the human rights code. These include “a child’s or young person’s race, ancestry, place of origin, colour, ethnic origin, citizenship, family diversity, disability, creed, sex, sexual orientation, gender identity and gender expression.”

Yes, that’s right. The ‘protection’ of a child’s gender identity and gender expression is now in the hands of our ‘benevolent expert’ on everything under the sun—our government.

Foreboding Statement

The man who introduced the bill last year was Michael Coteau, Minister of Child and Family Services. His statements about the new protections for gender identity and expression certainly seems to challenge parents’ autonomy in making choices on behalf of their children:

“I would consider that a form of abuse, when a child identifies one way and a caregiver is saying no, you need to do this differently. If it’s abuse, and if it’s within the definition, a child can be removed from that environment and placed into protection where the abuse stops.”—MP Michael Coteau

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Bill 89 retains the provision in current law that a child who is suffering or “at risk of suffering” mental or emotional harm and whose parents do not provide “treatment or access to treatment” is in need of protection under the law.

Disturbing Hypotheticals

This information can lead to the contemplation of some disturbing possibilities. Let us say that your doctor, or teacher, believes that your 10-year old child is experiencing what the American Psychiatric Association has coined ‘Gender Dysphoria’, which they define as follows:

Gender dysphoria involves a conflict between a person’s physical or assigned gender and the gender with which he/she/they identify. People with gender dysphoria may be very uncomfortable with the gender they were assigned, sometimes described as being uncomfortable with their body (particularly developments during puberty) or being uncomfortable with the expected roles of their assigned gender.

People with gender dysphoria may often experience significant distress and/or problems functioning associated with this conflict between the way they feel and think of themselves (referred to as experienced or expressed gender) and their physical or assigned gender.

If the Ministry of Child and Family Services is made aware of signs of  ‘gender dysphoria’ on the part of your child, they have the right to ensure that a parent is taking what the ministry would consider ‘treatment or access to treatment’  that would mitigate the risk of suffering mental or emotional harm.

So then if individual human beings in the ministry, in their ever-expanding role of all-seeing and all-knowing authority on all things ‘children’, have decided to side with the notion held by some in the medical establishment that ‘puberty blockers’—pharmaceutical drugs designed to temporarily delay the onset of puberty—is appropriate ‘treatment’ for reducing the risk of the child suffering mental or emotional harm as a result of their ‘gender dysphoria,’ then, hypothetically, the ministry would have the power to take your 10-year old away from you unless you submit them to this drug ‘treatment’ program.

Big Leap

Certainly, this is a big hypothetical leap. There have been no cases resembling this in Ontario since the law was passed. Comments made by Akihito Tse from the Ontario Child’s Advocate Office made in this article appear to bring us back from the edge of the cliff:

Mere disagreement with a child about their gender identity or gender expression is not enough to bring the child into care. Instead, it has to be part of “a pattern of abuse, neglect or serious emotional harm” before removing the child can be considered, according to Akihito Tse, a spokesperson for the advocate’s office.

The reasons a child may require protection are laid out in section 74(2) of Bill 89. There is no specific reference to gender identity or gender expression, but if a child is suffering sexual, physical, or emotional abuse, including “serious” psychological effects, child welfare agencies may intervene.

As Tse noted, there is a high threshold for ever removing a child from their family, and the decision to take a young person into care cannot be made by government bureaucrats and child aid workers alone. “There is a clear process through which the final decision is made by a judge,” Tse said.

Stuck In The Left/Right Dichotomy

Perhaps, from a moderate and balanced perspective, there is no need for urgent and immediate concern. I say perhaps. In trying to examine the information on this subject on the internet, the moderate seeker is struck by an inescapable phenomena: the whole discussion (read: contentious battle) about the implications of government becoming the protector of a child’s gender rights is cast as the struggle between Far-Right Religious Conservatives fighting for their rights to raise their children in accordance with their dogmatic religious beliefs on gender, and Far-Left Liberals fighting for the radical breakdown of traditional societal order through the government-sponsored promotion of gender confusion and ambiguity–depending, of course, on which side you’re on.

In this landscape, it appears that there is no room for moderates—you know, those of us who don’t really care to identify with one of the polarities—to be part of the discussion. And that’s exactly the way our authority wants it. And by authority I don’t mean the government, I mean those who control the government.

To say that government overreach is at play here is not making a statement in favor of extreme right-wing agendas over extreme left-wing agendas. It is an observation that those powerful forces that control the government constantly fuel the fires of this polarity to exert more and more control over citizens. If we look back in history, it matters not which side of the spectrum is used to advance their agenda of control, as long as the battle between the polarities rages on to hide the influence of their hidden hand. And I do indeed believe that our authority has to some extent promoted and sponsored gender confusion in our society, doing so with absolute and complete disregard for the health and well-being of people who are transgender as well as an underlying disrespect for all individuals that make up our society.

A Moderate Perspective

I believe a moderate perspective on the matter of gender identity and expression focuses on the following points:

  • Physiologically there are 2 human genders: male and female
  • There are people who exist in our society that are not comfortable with their gender as denoted by their physiology
  • Some of these people identify with the gender opposite to the gender denoted by their physiology
  • Individuals have the right to choose to submit to treatments that modify or change aspects of their physiology when they reach a sufficient level of maturity to make informed decisions

As individuals, as a society, how should we deal with these facts? Through open dialogue and communication in search of truth; through a desire to share and to learn from each other as kindred souls; and with respect for differences between us and compassion about the impact of these differences in how we live together.

It is in bringing consciousness to bear in our personal lives and in the way we deal with others in our society that these matters are best handled. One important step is to join the growing number of people who have decided to dis-identify with either side of this fabricated extreme left/right polarity and promote open-minded and open-hearted discourse.

Related CE Podcast: Why We Get So Offended

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Your life path number can tell you A LOT about you.

With the ancient science of Numerology you can find out accurate and revealing information just from your name and birth date.

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Important Details To Consider As North Korea Commits To Denuclearization

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In Brief

  • The Facts:

    Historic meetings between Trump & Kim Jong Un move towards peace talks between the two nations. What's really going on here is about disrupting the old elite regime.

  • Reflect On:

    Who really holds the power in our world? Are we getting a true picture of what is going on with events like this from the mainstream media? Is the hate for Trump a result of his level of disruption of elite plans?

The first thing we should all consider, and something that should be downright obvious by now, is the fact that our perceptions of events and people are purely programmed into us by the machine that is mainstream media.

When it comes to Donald Trump, historian Richard Dolan put it quite well, saying that: “It is important to understand why Trump was demonized. Sure, his character can make it easy. There is no shortage of narcissistic, sexist, or otherwise intense statements in his repertoire. But I have never, and will never believe, this is why he was demonized. Ultimately, Trump is a disruptor, and his disruption falls squarely against the two key pillars of the American ruling elite’s ideology: neoliberalism and neoconservatism.”

I often wondered how it was possible for so many people to support Obama & Hillary when the same geopolitical agenda continues unchanged for decades, I compare it to a global holocaust, in the Middle East and within many other parts of the world. A powerful group of people, using politics as their tools & politicians as their puppets, is and has been imposing their will on other countries by creating events and then proposing a solution, all to justify back home reasons for “infiltration.” Patriotism is heavily used, especially to hold up the perspective that our militaries are actually used to defend a country and bring democracy to other nations. In some cases yes, in most cases, no, unfortunately, they’ve been used by old men for unthinkable purposes.

There are so many examples to choose, from 9/11 to the recent supposed chemical gas attacks in Syria by Assad.

The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic societyThose who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are moulded, our tastes formed, our ideas suggested, largely by men we have never heard of.” – Edward Bernays (“the father of public relations”), Propaganda, 1928 (note that Bernays’ book, Propaganda, begins with the above quote).

Yes, when another politician speaks upon these facts, like Vladimir Putin outlining the ‘magical and mythical’ threats the global elite use to impose their will on other countries, it’s labelled as propaganda by mainstream media.

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So, it makes absolutely no sense to really think anything of Trump, except as an outsider, one who was not “controlled” by the corporations, and the big banks like the Clinton’s, and Obama’s, and many presidents before them. Trump represents a difference in that sense, a change, but also has numerous suspicious ties and associations that are similar to the likes of Deep State puppets as well.

Again, genocides have occurred under presidents past, yet they are viewed as heroes and celebrities…News reports of Hillary Clinton covering up a massive pedophile ring in the state departments, and strange WikiLeaks documents, have also simply been brushed off as ‘propaganda.’

Things are certainly strange within the realm of politics, to say the least.


For a deeper look into our perspective on Trump, you can refer to this article: You Asked For Our Stane On Trump, So Here It Is


Trump is a great example, and one of many who has said and acted different in their campaign, but then all of a sudden change when their presidency takes place. It seems they become aware of things they were not once aware of, and greater powers begin to influence their decisions. Perhaps they are ‘checkmated’ by the national security community?

The Real ‘Powers’

The bottom line is, when it comes to politics, there are powers greater than the presidency calling the shots, and we can never really know what’s going on. All we get are the puppets, some of which may attempt in some ways, to oppose various groups within the Deep State or those who rank among the worlds ‘elite.’ They are simply used for us to point our fingers at, or idolize and worship as Gods while people behind the curtain pull the strings.

This is why the whole idea of voting is completely useless, it simply continues a cycle and system that clearly doesn’t work.

You never change things by fighting the existing reality.
To change something, build a new model that makes the existing model obsolete. – Buckminister Fuller

Another thing to really consider is the fact that, as retired Professor (Emeritus) of Sociology at Binghamton University and adjunct professor at Saint Mary’s University, Halifax, Nova Scotia, Canada, James Petras recently wrote,

The world is riven with class conflicts in Latin America, political conflicts between the Anglo-Americans and Russians, and economic conflicts between Washington against Europe and Asia. The conflicts have called into question the capacity of ruling elites to promote growth, to secure international stability and to foster global as co-operation.

All this comes, simply because of the fact that there is a secret government in control of politics, and what we are presented with, we never really know the details and what is really going on. Presidents throughout history have called awareness to this entity, and there are several great examples where they’ve voiced their concern of, in some cases, what they had become apart of.

Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people. To destroy this invisible government, to befoul the unholy alliance between corrupt business and corrupt politics is the first task of the statesmanship of today. – Roosevelt

North Korea & Nuclear Weapons

Another important fact to consider is that the entire world is making nuclear weapons. Just look at the nuclear deals happening between Israel and Saudi Arabia, how come nobody is talking about that? What about America and their inventory of nuclear weapons? The fact that nuclear weapons even exist is troublesome, and what’s even worse are findings like the one Dr. Helen Caldecott, a researcher and anti-nuclear advocate describes:

In 2015, ninety-two American missile officers were suspended because they had been cheating, taking drugs, or sleeping in the missile silos. These men are employed to guard and to operate 150 nuclear missiles at F.E. Warren Air Force Base in Wyoming which constitutes one-third of the 400 Minuteman 3 missiles that stand “on hair trigger alert” 24 hours a day in silos which are scattered across the northern Great Plains…

During the investigation, fourteen airmen had allegedly been using cocaine. Other drugs involved were ecstasy, cocaine, LSD and  marijuana.  All in all roughly one hundred officers were involved in the cheating scandal in 2015 and 2016.

After that, she goes on to describe more shocking “episodes of gross malfeasance,” stating that it’s amazing to her that  “we are still here having not been incinerated in a global nuclear holocaust. Suffice it to say, we are in the hands of fallible men armed to the teeth with missiles and hydrogen bombs.”

This is why I don’t even want to get into North Korea & Trump because our geopolitical world is completely out of control. I don’t know what’s going on, but I do know that the powers that be and the countries that they control have been imposing their will on the world for a very, very long time, and have used us, the human race, and our own consciousness, our own perceptions, to justify this behaviour.

The statesmen will invent cheap lies, putting the blame upon the nation that is attacked, and every man will be glad of those conscience-soothing falsities, and will diligently study them, and refuse to examine any refutations of them; and thus he will by and by convince himself the war is just, and will thank God for the better sleep he enjoys after this process of grotesque self-deception –  Mark Twain (source)

There is always some sort of problem in another country, and North Korea is a great example, that gives the Deep State an upper hand with regards to intervening, but thankfully the world is beginning to see through this. Even US Generals, like Ex-Supreme Allied Commander General Wesley Cark, have outlined the fact that this plan, to basically take over the world, has been in the works for years.

Again, let’s use Syria as an example.

The CIA began its active meddling in Syria in 1949—barely a year after the agency’s creation. Syrian patriots had declared war on the Nazis, expelled their Vichy French colonial rulers and crafted a fragile secularist democracy based on the American model. But in March of 1949, Syria’s democratically elected president, Shukri-al-Kuwaiti, hesitated to approve the Trans Arabian Pipeline, an American project intended to connect the oil fields of Saudi Arabia to the ports of Lebanon via Syria. In his book, Legacy of Ashes, CIA historian Tim Weiner recounts that in retaliation, the CIA engineered a coup, replacing al-Kuwaiti with the CIA’s handpicked dictator, a convicted swindler named Husni al-Za’im. Al-Za’im barely had time to dissolve parliament and approve the American pipeline before his countrymen deposed him, 14 weeks into his regime. – Robert F. Kennedy

One thing that is encouraging, however, is the denuclearization of any region by any country. The fact remains, the US has always wanted to emphasize the nuclear programs other other countries who do not currently have a central bank, and countries whose resources that the US and their allies could use. Is this agreement between Trump and the North Korean president something that only a president who opposes the Deep State could do? Because it’s hard to imagine any other president doing so.

This is the first time a president has been able to sit down with the leader of North Korea, and have come to some sort of peaceful resolution. That being said, most of these things are done with political, greedy and elitist goals in mind. Not peace…

The North Korean president referred to the meeting as a “historic turning point.”

In western mainstream media, Trump is praised by some outlets, like fox news, and others, like CNN, you will get a completely different perspective. It’s best to just not really through any negativity, fear, and judgment into what you are watching, and understand that you don’t really have any piece of the story unless you turn off your T.V. and spend a considerable time doing some independent research.

Related CE Article: Why Are We Systematically Being Trained To Be Offended By Everything? 

Trump Is Challenging Us To Reflect & See

If you haven’t read our stance on Trump, check it out. The amount of anger, emotions, and frustration we collectively have had about Trump being president is incredible. While I believe this shows how much we collectively need to shift our perspectives on things in general, I also believe that in many ways our emotional outcries are where things start. We have to observe our emotions and what they telling us about our beliefs and perspectives in order to see how we can move beyond them. We are massively limiting our world and reality by holding on so rigidly to what we believe. To be clear, we cannot change things from a state of anger or aggression, we must first move past this. This is a lesson humanity is learning big time right now.

“The real menace of our Republic is the invisible government, which like a giant octopus sprawls its slimy legs over our cities, states and nation . . . The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes. They practically control both parties . . . [and] control the majority of the newspapers and magazines in this country.”   John F. Hylan was Mayor of New York City from 1918-1925 (source)(source)


 Related CE Articles:

Strong Evidence Suggests Extraterrestrials Have Been Shutting Down Nuclear Missiles Worldwide For Decades, But Why? 

The United States Tried To Detonate A Nuclear Weapon On The Moon: But Somebody Responded When we Did

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