Tuesday, December 31, 2013

MARTIN ARMSTRONG'S LATEST BLOG POSTS

Year End Closing Numbers


2013
Year-End 2013 Number

The Year 2013 has been a great year for equities and a rough year for commodities. Gold has put in its worst performance since 1981 while the Nikkei has put in its best performance since 1972. As we look ahead, 2014 will begin the rise in Civil Unrest that will also begin to turn more violent. There remains a serious risk of World War III as the economy turns down after 2015.75. Even when we look at Syria, the US Administration only tries to support Saudi Arabia who remains funding the rebels. They foolishly believe that they can control these religious zealots and the consequences of that failure can be catastrophic.

Meanwhile, the hardline Republicans do not want to deal with Iran and cannot see their nose in front of their own face even with a mirror. The youth elected the President of Iran who is trying to stand up against the hardliners there. The Republicans are more likely to create a war than peace. The Obama Administration is only trying to help Saudi Arabia gets its pipeline through Syria and is not interested in any negotiations to try to stop the conflict in Syria when they know it has been their allies feeding the rebels. The crisis that can easily erupt in the Middle East this time is substantially different because of the economic vulnerabilities in the West and the regrouping of economic strength in Russia.

The closing indicators for 2013 are as follows:

Market                                 Long-term Bearish           Bearish                 Bullish

Spot Gold . . . . . . . . . . . . . .           660.20                   1232.80                 1445.85

Spot Silver . . . . . . . . . . . . .              8.023                     14.550                  31.780

Dow Jones Industrials . . . .             9965.5                   13128.5                  16681.5

S&P 500 Cash . . . . . . . . . . .           1135.1                   1425.9                   1855.5

Toronto Composite . . . . . .             7644.1                   10970.4                 14330.0

Nikkei 225 Cash . . . . . . . . .            7012.0                   10770.0                 17583.0

German DAX Cash . . . . . . .            4155.5                   5423.0                   11802.0

Wheat (Chicago) . . . . . . . .              2550                       5650                       8935

Crude Oil (NY) . . . . . . . . . .              3218                       6418                     11502

Crude Oil Brent . . . . . . . . .              2775                       9150                     13330

Euro/US Cash . . . . . . . . . .              11875                   12865                     15203

It is all Connected – US Population Growth Collapsing & That Fits In Nicely with the Economic Collapse

InterConnectivity
Everything is connected. The correlations are complex yet predictable. I have stated numerous times that the more affluent a society becomes, the slower the growth rate. Then add uncertainty and it gets much worse. The population of Rome collapsed and this defeats the Ponzi scheme of how governments assume they will always have a rising tax base. The population of the United States is now growing slower than it has since the Great Depression years of 1932-1937. The latest population estimatesreleased Monday by the Census Bureau indicates that the population of the USA added only about 2.2 million residents in 2013. Government programs are doomed and taxes will rise as the gut of the elderly increase the burden on a shrinking youth population. The U.S. population will now just surpass 317 million people.
Then you add the lower interest rates to bailout the banks and reduce government deficits, the net result is wiping out pensions and the elderly as well as the tax base and technology advancement shrinks jobs for the youth. The California City of Desert Hot Springs with a population of 27,000 will be sent into bankruptcy because of police pensions. The system that has been designed by government is effectively no different that the idea of creating fancy derivative models that counted on the current trend staying in motion – that is when Genius Fails.
Dollar Vortex
As we look ahead into 2014 and into 2020, we are headed into the eye of the economic storm. It honestly will require no conspiracy of all-powerful groups to collapse the economy. The Senate investigations of the 1930s from which the SEC was born, NEVER discovered any of the rich moguls short. They all lost huge money and were found to be long at the top as well from Rockefeller on down.
The “super rich” will be going down the same drain because the underlying system was constructed on bogus assumptions that whatever trend was in motion will remain in motion. They need not try to collapse the economy – it is doing it all on its own and they could not conspire to prevent it.
Sorry – that is not how everything works. It is a shame we have to be put through this nonsense for our families. The finger-pointing will always lead to some group in the private sector the government will promise to hunt down. But the hunters are the problem – not the prey. Pointing the finger at the “super rich” as Joe Biden called the, will lead to state control of everything. Do you want Communism and the New World Order or Freedom? Your choice. It is government designed by morons that has created this mess – not Bill Gates.
Hoover-Quote
This is WHY Strategic Trading is so vital to our survival – NOT Day Trading. This is NOT about making 10 cents on the dollar and 90 cents for the brokerage house. Sometimes LESS is far more. Hoover said it best. Capital ran from one currency to the next so fast, they could not figure out what was even the problem. Unfortunately, we are in the same boat. It is absolutely critical to understand what is coming or you will be fooled and dead broke.

HAPPY NEW YEAR

Roman As

The Roman god Janus is who January is named after. He is pictured with one face looking backwards and the other forward in time. He was the tradition of New Years Eve looking at the past and being optimistic of the new year to come. In that sense, he was all about cycles and learning from past events for the future.
Nero=SesJanus

The Temple of Janus was interesting. In time of peace, the doors at both ends remained closed. When Rome was at war, both doors remained open. This was the symbol and respect that the future outcome was always presenting a possibility for change.
These are concepts that endure today, even though there is no actual god Janus. The Romans created gods as did the Greeks representing particular things. In this sense, the doors are open right now and political change is in the wind as civil unrest rises.
If you understand the workings of things, the divine scheme upon which everything is constructed, then you will move with the business cycle instead of fighting it. It is truly an amazing force all on its own.
2014

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