Saturday, November 30, 2013

32 Privacy Destroying Technologies That Are Systematically Transforming America Into A Giant Prison

Wendell Berry on His Hopes for Humanity

In a rare television interview, this visionary author, environmentalist and farmer discusses a sensible, but no-compromise plan to save the Earth. 39 MINUTE VIDEO

London Gold Fix Calls Draw Scrutiny Amid Heavy Trading

Every business day in London, five banks meet to set the price of gold in a ritual that dates back to 1919. Now, dealers and economists say knowledge gleaned on those calls could give some traders an unfair advantage when buying and selling the precious metal.


The Share Market

QUESTION: Mr. Armstrong; First let me begin by thanking you for your dedication to try to help society. The vast majority are only out to hurt people and see everything as what is in it for them. You take so much abuse for actually trying to help people it is a wonder why you do not hide on some island. I was at your conference in Princeton the weekend of the 1987 Crash. You said there the S&P 500 would fall 10,000 basis points within two days. I was truly amazed when that happened. So when you said buy stocks and sell gold in 2011, I did. I may be the only person for nobody but you got that one right. From where I sit, everyone on the retail side of the market does not seem to be invested in the stock market. Is this why it will explode to the upside?
ANSWER: Thank you very much. Perhaps with age you look at what you can leave behind. You cannot take money with you when it is time to leave. I have personally advised some of the richest people in the world. Let me say this. Money does not make you happy. As long as you can do what you want when you want, that is the definition of being “rich”. Go beyond that, you will quickly discover that you become the salve of money and the target for everyone to attack. I am always astonished by people who cannot see that and live to hurt others and grab as much as they can for themselves. This leaves such people nasty, vindictive, hateful, and hollow inside for they lack character. They know nothing of the feeling of accomplishment because they lack the ability to accomplish anything but cheat people  for pleasure.
You are absolutely correct. The majority of individual investors are not in the market. Others are still clinging to gold waiting for it to be a hedge against something other than making money. The retail crowd listens to the gurus on TV. I spent Thanksgiving with family and friends. One is a stock broker retiring by year-end. He said also the retail clients are not in. But he also said, he just wanted out because He cannot go through another crash. He wants to just invest for himself without all the compliance nonsense for this bull market.
The bulk of the retail trade will get involved only when they become convinced by price movement. Consequently, they will buy the last 12 months and then the crash will come as always. There is just a fresh crop of people who enter the investment Labyrinth and must learn through experience. This is why the answer to the most common question I get – what would happen if everyone followed your model? The answer is simple, That will never happen,

Are Genetically Modified Foods a Gut-Wrenching Combination?



Friday, November 29, 2013

Santa Shames Thanksgiving ‘Parasite’ Shoppers Lined Up…Using a Megaphone!

FRIDAY, NOVEMBER 29, 2013 "Mall Brawl Thursday" - Has It Really Gotten This Bad?

Black Friday Thursday.  The entire term "holiday sales shopping" has been redefined.  And the word "Black" should now be replaced with "Mall Brawl."  Black Friday has become Mall Brawl Thursday.  In the most obvious sign of just how desperate everyone is to keep up with the euphemistic "Joneses," what used to be a nice family holiday shopping day has turned into something out of the movie "Mad Max."  Here's a nice sampling of actual videos:  Mall Brawl Thursday.

Mobs, Stampedes, Fights, Brawls, A Stabbing And Shooting: A Video Compilation Of Black Thursday 2013

Black Friday shopping marred by shooting, clashes and arrests (VIDEOS)

Wednesday, November 27, 2013


The Pope’s “Unfettered Capitalism” & His Complete Misunderstanding of the Economy

Pope Francis
Pope Francis has attacked unfettered capitalism as “a new tyranny”, urging global leaders to fight poverty and growing inequality in the first major work he has authored alone as pontiff max. This 84-page document, which is known as an apostolic exhortation, sadly amounts to an official platform for his papacy. While he is liberal in his views of abortion and same-sex marriages, his views on economics shows serious signs of a great misunderstanding from which communism sprang roots.
Pope Francis displays a stark misunderstanding that seriously needs to be address. He has criticized the economic system attacking the “idolatry of money” and beseeching politicians to guarantee all citizens “dignified work, education and healthcare”. He has further called upon rich people to share their wealth. Just as the commandment ‘Thou shalt not kill’ he states defines human rights, he claims today we also have to say ‘thou shalt not’ to an economy of exclusion and inequality.
“How can it be that it is not a news item when an elderly homeless person dies of exposure but it is news when the stock market loses two points?”
Pope Francis has overlooked the commandment that thou shalt not covet their neighbor’s goods. It is true that back in 2012, the top 1% of earners in the US collected 19.3% of the country’s total household income. There is a growing disparity between the rich and poor. However, how to address this is not by endorsing more Marxism. The entire structure should be reformed. It is the cost of government that has been rising and is sucking up all disposable income. The rich can hoard their capital, refuse to invest to create jobs, and move money offshore for safe-keeping. However, the age earner cannot hoard his labor and as President Cleveland recognized during the Panic of 1893, he is dependent upon contented capital. The more we attack capital, the great we will drive it away.
Deal directly with the issue. REGULATE the banks and stop their trading with other people’s money. Banks are supposed to lend to small business to create employment. That is not taking place and the youth even in the USA are being defrauded by irrelevant education. Forbes Magazine has reported that 65% of graduates cannot find employment in the field they studies in college.
Attacking capital will solve nothing. It will cause capital to withdraw and create even fewer jobs. The disparity will grow for taxes are rising exponentially and the social programs are collapsing. The Obamacare has proven to be a disaster because honestly career government workers have no idea of the real world.
It is not capitalism that is failing, but socialism that is centralized government planning. End taxation that is really no longer necessary and when the Bible talks about tithing your income, does it really mean giving a tenth of your income? How about (1) we stop coveting their neighbors’ goods, and (2) limit all taxation to no more than 10%. We are over 40% with the state taxes and this is far beyond the Biblical tithing. All politicians do is take other people’s money. Stopping some CEO from making a million does nothing for the homeless. Deal with the real problem – bloated government that consumes more than it benefits society. We have raised tax rates to insane levels and drove capital into hiding. This approach has never worked even once.
I was just there in Rome and listened to the Pope address the crowds. He was good and they loved him. He has been a true breath of fresh air when it comes to religion. However, he knows nothing about what he is saying in the field of economics. Sorry! How about we look at the real issue - “Unfettered Socialism” that is used as an excuse for political corruption. For the record, the Protestant Reformation was funded by men who wanted to get into banking where the Catholic Church prohibited the charging of interest as did the Arabs. Catholics were seen as second class because their standard of living was less for they could not borrow even for a mortgage. That idea of Saint Thomas Aquinas being the Sin of Usury dominated the Catholic Church after the fall of Rome and the Debt Crisis that produced that collapse. Now 70% of national debts on average is accumulated interest expenditure. Look well to the debt behind the headlines and you will see the same evils that the Church once stood against – forget the rich v poor disparity.
Deal with that issue of debt and political corruption and we will raise the real standard of living for everyone and capital will return to create even more jobs. Capitalism is the freedom of choice to do what you want and to be what you want. Under communism, the government took all the wealth from the people and they told you what to do. Is that what you really want to see? You cannot be a little-bit pregnant and you cannot be just a little bit socialistic when career politicians are in charge. Restore REAL democracy, not republics/oligarchies masquerading as democracies.
Ford-HenryBe careful about this area in economics. You may mean well, but God created man with equal rights – not equal abilities. Some are born athletes. Others are brilliant theoreticians. If someone invents an assembly line and reduces the cost of a car so the middle class can now afford it, why is his contribution worth less respect and should be subject to government confiscation because of his success when he created millions of jobs and a whole industry? There would be no suburbs without car transportation. There would be no roads. Food would not exist in this abundance without motorized tractors. It is sad to say that people like Henry Ford become demonized for their wealth when they have contributed greatly to the creation of national wealth and raising the living standards for all.
Capitalism v Socialism
I gave an example of the reality of this logic. What if a teacher adopted “social justice” and gave everyone the same grade. It will not work. We have equal rights, but not equal abilities. Paying me $1 million to play basketball will not be the same as paying Michael Jordon. Likewise, paying Michael a $1 million to explain market and economic movement will not work either. We all have our worth and it is based upon our comparative advantage. It may not be fair to some that they have more than another. It is also not fair that some people die at 30 and others live to 110. The bottom line – life is not fair and God designed this. Who is man to tell God this ain’t fair?
Russian Communist Revolution Anniversary
Go down this path VERY, VERY, VERY cautiously. This logic has killed millions of people with various revolutions in China and Russia that spread elsewhere and created the Cold War. Playing with these ideas of “social justice” have led to more wars and untold carnage than any other theory. This is not a subject that a Pope should be casually commenting on without a full understanding of how the economy really functions any more than I am qualified to speak about religious doctrine or every passage in the Bible. I will be glad to fly to Rome to explain the reality Behind the Curtain if anyone is really interested.

Downs on Negative Rates & the Fed

From Glen Downs on Capital Hill:


Just to reinforce your analysis regarding the Fed possibly ceasing to pay interest on excess reserves; I am hearing from friends with close ties to the Fed and from friends on the Hill that individuals representing the TBTF banks are taking that possibility seriously.  In fact, there is actually talk of banks reacting to that prospective change by paying negative interest rates to their depositors should the Fed turn off the excess reserve interest payment spigot.

The possibility of the banking industry (or a segment thereof) effectively actuallycharging depositors for loaning them money begs more than a few questions.  The Fed, having effectively re-liquefied the dealer banks, is trying to find ways to ‘push on a string’.  But the negative interest rate talk that I am hearing would seem to underline just how monumental a task that is.”





The $2.3 Trillion Nobody Mentions about Quantitative Easing

QUESTION: We didn’t see Quantitative Easing stimulate the economy? Was it all the money pouring out the cracks to overseas?
ANSWER: You have to look deeper than the headlines. Yes, it sounds like a lot of money $85 billion a month should have been inflationary in a closed system. But pick up the rug and you will see the real dirt. The previous Federal Reserve’s Open Market Committee minutes from October 29 had a gem buried in there that I have suggest should be carried out with direct regulation over banks. Buried deep in those minutes was the mention of a possible step to reduce the interest paid to banks on the excess reserves that they hold at the Fed.
Banks are obligated to hold what are called “required reserves” at the Fed that amounts to about 10% of deposits. Currently, the Fed holds about $77 billion in required reserves for which they pay the banks 0.25 percent interest. However, the banks can also choose to hold what’s called “excess reserves” at the Fed. This is where things get interesting. It was under Quantitative Easing, when the Fed bought bonds from banks and in return they gave them a reserve credit on the Fed’s balance sheet. This became the “excess reserves”, which have grown to $2.3 trillion. These “excess reserves” earn interest of 0.25 percent. The banks sold the bonds but used the cash really for trading and have not lent the money into the economy. So obviously, there was no inflation or stimulation by this stupid swap with no strings attached as always.
Those expecting inflation have not only overlooked the money that leaves the system as China has $3.6 trillion in reserves, but the banks have $2.3 trillion of completely safe assets earning 0.25% that are also these “excess reserves”.. This is not money lent into the economy so it has not created jobs. It has been more hot money as banks are liquid enough to trade with that money rather than lend it out. They are hoarding cash.
The Fed should not pay interest on these reserves and then you will see that they will begin to be employed. They need to restrict their usage and.prevent that money from being used for trading. The banks are there to lend to the economy. If they will not lend to small business, they should pay interest to the fed on“excess reserves” not employed in the economy as LOANS prohibiting their use for proprietary trading. The Fed needs to limit credit card interest to no more than 10%  or 3x rates paid on reserves (which is ever lower). The banks are gouging consumers sucking up disposable income by interest charges reducing the purchasing power of the consumer that further suppresses the economy, and then the government keep raising taxes. The consumer is getting squeezed from banks and government.
Banks will scream at what I am saying while they mull it over in Washington behind closed doors. However, food stores do not earn keystone (2x cost) as do clothing and jewelry stores. Banks should not be allowed to gouge consumers to increase their highest rates of returns. We use to have limits on interest rates until Volcker removed them so he could raise rates into 1981. The consumer has been screwed ever since and the national debt exploded that is bow driving up taxes.
Banks should not be hedge funds nor should they be earning 20% interest rates when reserve rates are 0.25%. The $2.3 trillion in “excess reserves” is simply outrageous and ultimately deflationary for it is indistinguishable from hoarding. So Larry Summers should target the real hoarders and not the people.

The Coming Cycle Inversion in Metals

QUESTION: Dear Martin,
I have followed your work for years and thank you very much for the public service you perform on a weekly basis. We have been forewarned on repeated occasions about major turns in the World due to your outstanding work on Cycles and the ECM. Here is my question. In early 2014 can you do a 10 year forecast based on your Cycles and ECM work that spans the years 2014 through 2024?During that time there will be two peaks in the ECM, one on October 1, 2015 which you have written extensively about and another one in early May 2024. It would be interesting to see if you believe that the May 2024 peak is as significant as the October 1, 2015 peak and by the way the last peak in February 2007 …
ANSWER: We are going into the last two 8.6 year waves of this Private Wave that peaks in 2032. Several things will happen. First, each turn in the 8.6 year wave builds in volatility and intensity. Therefore, each one will be stronger than the previous. In the upcoming Precious Metals Report for 2014, I am providing a focused discussion on the Cycle Inversion. Here you can see that the metals began producing highs on their unique cycle going into 1980. They inverted whereby the event flipped and on the very same turning point it now produced a low by 1982. This CONFIRMED a bear market.
We will be explaining all the issues and how the cycle should invert relative to the ECM. We will deal with the various issues concerning gold as a viable hedge against inflation that has been perhaps the biggest myth next to fiat. This is especially critical given the international attack on the gold trade to suppress itsUSE not PRICE in an underground economy and why coins may be the only viable way to hold gold.

Paper v Physical

QUESTION: Hi Mr. Armstrong,
Almost daily one reads from the gold media about the discrepancy between paper and physical gold. The gold bugs make their case by saying, that despite the weak price of paper gold, the demand for physical gold has never been better. To me it is just a bunch of hooey. If I have a Krugerrand in my pocket it is worth whatever the paper price is that day. So my question becomes: Has there ever been a period in history where the difference between the paper price of gold and the physical price of gold has resulted in a meaningful, practical difference?
Thanks as always,
P.S. How do we register for your upcoming conference?
ANSWER: This theory about paper v physical is just nonsense. The organized “paper” futures market makes gold viable and liquid. If there was no such market, it would be like diamonds and prices will vary based upon local demand. Futures contracts have existed since Babylonian times. Such markets make gold salable and thus a DEEPER market. This is just an excuse as always so they can pretend not to be wrong. Scream about paper all you want. But when it is time to buy or sell, that is the price that will govern. The fact that physical demand in Asia is strong is irrelevant.
A bull market REQUIRES any instrument to rise in terms of ALL currencies – not just one. During the 1980s, they were touting new highs after the 1985 low and gold would then surely reach $1,000. We published these charts showing that the rally was only in dollars and thus the foreign investors were not buying. So just because China is buying now means nothing when they are not buying in Europe, USA, and India is trying to shut gold down., A BULL MARKET requires whatever the instrument MUST be rising in all currencies, otherwise it is purely a Currency Inflation rather than Demand Inflation.
You can register for the conference at
 Registration -
2014 Seminars

Real Estate & Earthquakes

Japan Tohoku earthquake-tsunami
QUESTION: You wrote that real estate would rally into 2015.75. You also said that real estate is highly regional. So far here in Vegas, property is up about 25% since you wrote that. You are really amazing in your analytical skills. I understand why they came after you thinking that it was merely what you said rather than your analysis. You also said that everything is connected. I am beginning to see the world as you do. It is truly astonishing.
I too lived and worked in Tokyo for a while. I noticed myself about earthquakes and it seemed logical that if there was a plate, move one side and eventually there should be movement on the opposite side. The Rim of Fire is correlated between California, Japan and Taiwan down to New Zealand. A moron can see that much, After the 1989 San Francisco 6.9 magnitude earthquake, there was the 1994 Northridge 6.7 magnitude earthquake that struck  in the San Fernando Valley, followed by the 1995 Kobe, Japan 7.2 magnitude earthquake and 1999 Chi-Chi, Taiwan 7.3  magnitude earthquake, with the 7.1 back in California at Hector Mine Earthquake on October 16, 1999. I can see the connections you make. The dates of these events even correspond to your ECM. So nature is part of the cycle of the economy as well. I am correct?
ANSWER: Absolutely. Now we have the major Japan Tohoku earthquake that hit on March 11, 2011 which was at the bottom of the ECM. We should see more earthquakes hit in 2015. The timing between Japan and Taiwan is generally about 4-5 years or half the 8.6 year cycle.
As far as real estate is concerned, the data on the S&P Case-Shiller is out and that shows we are indeed in bull market into 2015.75 and where you live is up about 29% being the top end of appreciation. Yes, this is why I say gold is not being systemically manipulated. It is in a bearish trend and that is in line with the bullish trend in stocks and real estate. ABSOLUTELY everything is connected.

Best Trades Are Always Emotional

QUESTION: Hi Martin,
Two questions for you.
1.  I’ve read you say something to the effect of your best trades were the ones where you wondered why the heck you just did what you did.  I have also found all my best trades scared the pants off of me right after I made them.  Why do you think this is?
2.  Since Pi (and possibly other ratios) seem to continually pop up in nature and life, do you think our own lives have mini Pi cycles?  And the larger cycles are an amalgam of all human cycles combined?
If you also have a moment, do you think the universe has it’s own larger, massive Pi cycle which governs everything?
ANSWER: It seems that in order for major changes in trend, you simply must push it to the absolute extreme. Just like the Goldbugs are so convinced there is a giant all-powerful being/group who oppresses their market, the same theory has emerged with every stock market crash. Someone called Herbert Hoover in 1929 and said that the crash was caused by a conspiracy to ruin the Republican Party. Hoover launched the whole investigation from which the SEC was born based on that phone call for which he later apologized. NEVER has any investigation ever uncovered such a short position at the top that overpowered the market to create the crash.
Everyone is long. They get tired and there are no more buyers. Scare them and they become the biggest pool of sellers you ever saw. The market crashes because there is NO BID! It becomes a Spiral Panic sell off.
An elderly man bribed the hotel we were at for an institutional seminar. He apologized for crashing the session. He said he just had to talk to me. He had invested $50 million the very day of the high in the Nikkei. The market crashed hard in the first 3 months. He informed me it was the FIRST time he ever invested in shares. Now I was intrigued. I asked him why did he invest that day? He said brokers called him every year and said the Nikkei rallied 5% every January. He watched that happen for 7 years. He then bought the top looking only for the quick 5%. It fell 50%. When you suck in people like that, you got the very last buyer. You now run out of energy (new buyers) and crash. It is like holding your arm straight up in the air. Easily done. Now keep it there. It will become so heavy you cannot sustain it. You run out of energy. The markets function the same way.
So when it is a gut wrenching emotional decision and you are normally cold as ice, you are close to the turning point.
As far as Pi (∏) showing up in our lives, yes, you can even plot that as well. Interesting to say the least. As far as the Universe, the Precession of the Equinox is 25,800 years or (3 x 8.6) x 1000). It is the perfect cycle and circle just as 8,6 years contains 3.14159265359 days. It is always FRACTAL