Tuesday, November 26, 2013

MARTIN ARMSTRONG'S LATEST BLOG POST

2013 – The Year of Political Change

QUESTION: What do you see for Russia and China? Are they rising as it appears even militarily in addition to economically?
ANSWER: In truth, the year 2013 was the precise turning point for the USA and the exposure of the NSA has been right on target. Furthermore, the entire debt ceiling crisis has led to a profound realization Behind the Curtain that the USA lost its sovereignty because of its indebtedness. China announcing it will start to develop its internal economy and stop amassing dollar reserves is also right on point. This year was the target for a major change politically and this marks the beginning of the decline and fall.  Read the Special Report we did on the 224 Year Cycle of Political Change that covers USA, China, and Russia.
224 Yr Cycle Cover

Manipulating Markets

ECO-1895-MA
I get a lot of questions regarding to what extent can the Club manipulate markets? Ironically, the more open a market including futures, the less ability their ability to manipulate even for brief periods. Preventing or limiting markets from trading devolves a market into a corner where it can be controlled. There will always be some subtle influences that defeat 100% manipulations such as in diamonds. The smaller the market the more likely it can be controlled.
Paulson-1Just look at the 2008-2009 Crisis. Shorting financial stocks of Bear Stearns and Lehman was ok. However, as soon as the selling turned on Goldman Sachs, their stooge Hank Paulson acting as Treasury Secretary outlawed short-selling financials. He cut off the free market to save Goldman Sachs.
TankMan-060589When we look at the global economy, the Economic Confidence Model (ECM) proves that the global economy cannot be manipulated on a systemic basis indefinitely. Sure you can have a revolution and shut down the free markets as was the case with Communism. But even that failed no matter how many tanks they had.
SanFran1906EarthQuake
The ECM is all incorporating. It includes nature from weather to volcanoes and earthquakes. It was the San Francisco Earthquake of 1906 that set in motion changes to capital flows internally within the USA that sent cash from the East to the West and resulted in a cash shortage that led to the Panic of 1907. Other financial panics have been global like the Great Depression. Earthquakes have impacted Japan in the past and even up to the nuclear disaster of late.
The Club engages in market manipulations that are numerous touching many markets globally from Asia to Europe. But these are in-and-out deals. They are not some systemic plot to keep any individual market suppressed. This is all about – show me the money for their quarterly earnings and bonuses. Do you really think this people will work waiting for some profit 25 years from now?
GoldPush-1971
Volcker watched gold in the ’70s and raised interest rates looking at that market as a lead to the misconception that it was related to inflation. It was not. The rally in gold was due to Currency Inflation, which is the decline in a currency value that causes the entire sector to rise.This was pictured in the cartoon of that era.Demand Inflation is isolated. For example, the orange crop in Florida could be wiped out by a storm and this creates a shortage in oranges but apples are not effected. When the entire spectrum rises, this is typically Currency Inflationand not Demand Inflation.
Long-Term Capital Managment
The market manipulators are out for profits and what they think is the guaranteed trade because they are cheap bastards who worship money more than their reputation. They have no stomach for risk. They have ALWAYS, and without exception, BLOWN THEMSELVES up and run to government for bailouts. They have no pride. The Long-Term Capital Management (LTCM) crisis of 1998 took place because all the bribes in Christendom paid by the bankers could not prevent Russia from collapsing. The biggest banks were all involved in that trade. The Fed bailed out LTCM that was a hedge fund with no authority whatsoever. Why? Because it was really the banks who they owed so they did not want to expose the banks in the plot.
Bankers Testify

The Club desperately tried to get me to join their Russia manipulation under the theory if I said it would go up, then they would have me in their camp as a shill. When it collapsed, they blamed me as always for their sloppy trading if you can even call it trading. Paying bribes is not trading. That is rigging the game. When they rig the game, they pay no attention to trend and thus lose EVERY single time the same as the Gold Promoters who only say buy. If the banks were such great traders, they would not need bailouts. The fact that they blow up every time, demonstrates the markets CANNOT be systemically manipulated – they can only manipulate with the trend. There are no WHALE trades that management does not know about. Rogue Traders are scapegoats – management is keenly aware. Bear Stearns refused to participate in the LTCM bailout, and they were on the hit list also for not playing ball in the 2007 debacle.
WayOfFuture
When we stop the borrowing, end federal taxation, revise the world monetary system, and end banks trading with other people’s money, then and only then will we reduce the volatility and perhaps save our future, Thank God for mortality. For I surely do not want to live in the aftermath of a world these people blow up for good. They are playing with real economic weapons of mass destruction.

Special Report on Real Estate & Equities

The Shift in Institutional Investment
QUESTION:
Hi Mr Armstrong.
I’m very concerned that one of my sons here in Australia is deep into debt investing in domestic real-estate.  I’ve tried to caution him but it appears he may have to learn the hard way.  All I can do now is try to convince him to sell at least some of the houses as the markets peak in 2015/16.  So what is your expectation on Australian house prices at that time?  Will they be much higher than today despite the fact they are already too high compared to most other countries?  Or is he doomed in which case I might have to shelter him when the real-estate bubble here bursts?
Many thanks
ANSWER: We are preparing a special report on Real Estate and Equities. This is where the big money is going. This is a very important report for the future. This report should be ready hopefully by next week. Perhaps if he understands the full context of what is happening in real estate he will appreciate there are times to buy and times to sell.

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