Friday, February 28, 2014


Ukraine – Crimea Occuppied – Yanukovych Still Mentally in his Disneyland

Crimea has been severed and all roads into the region are now blocked. Pro-Russians seized the government and troops are pretending to be Ukrainian. Yanukovych made a press conference thanking Russia for his protection claiming he is still the President and any laws passed by the Ukrainian Parliament are not valid because he did not sign them. He claims he will remain the President for even the May elections are not valid. His argument seems to be Ukraine belongs to him and his sons to do as he likes.
Yanukovych also claims he did not order troops to shoot citizens from sniper positions. He claims Maidan is armed and aggressive when that was not true – they were unarmed and banned anyone from even drinking. If you were drunk, that was how they could tell you were from the other side trying to infiltrate their group.
Meanwhile, Switzerland has frozen about 20 accounts belonging to Yanukovych, his two sons, and other Ukrainian politicians. Poland has done the same as is the case in UK. There seems to be billions of dollars stolen by Yanukovych, far more than anyone could possible live on for his entire life. This is the example of corruption that is going on Behind the Curtain. Even in the USA, there is no real politician who leaves empty-handed, albeit perhaps not with billions.
Speaker Pelosi Holds Weekly News Conference
Nancy Pelosi goes for vacation in Hawaii using government jets and rents suites in excess of $10,000 a night. Head of IRS have acted extravagant with taxpayer’s money. This is a huge systemic problem and it is global.
Just for the record, this week I have a visitor from the Eastern side of Ukraine in the office to discuss their point of view. There are many political divisions there as well and it seems to be a consensus emerging that if you want to be Russian – leave. The Tartars have no desire to be Russian. They are more rural people and tourists typically buy goods from them acting like the Pennsylvania Amish. Crimea is strategically important for the Russian port and there are many Russians working there.
This old Cold War stuff is getting really old. The Wealth of a Nation is its productive capacity and Japan proved that by rising to the second largest economy and they has ZERO natural resources. Land accumulation is not it. Mind well the productive capacity of the population for that is the ONLY REAL wealth of a nation. Why the USA and Russia still have nukes pointed at each other is an open question. If we all live within our borders and abandon all Marxist ideas allowing the people to be free at last, then this war between kings and ministers is very old school. Who gains what? Does Russia really want to occupy the USA? Does the USA really want to occupy Russia? If the answer is no to both questions – then let’s get down to creating an economy that is free and stop the bullshit.

5 Hypocritical Justifications the 1% Use to Justify the America's Staggering Inequality

Chris Hedges: Edward Snowden’s Moral Courage

GLENN GREENWALD: Inside the Mind of James Clapper

The State's War Against Truth

 February 22nd was the 71stanniversary of the murder of Sophie and Hans Scholl and their friend Christopher Probst. They were young people, in their early twenties, who lived in Munich, Germany. They, along with other members of a peaceful, anti-war group known as White Rose, published leaflets informing fellow-Germans of the wrongs being engaged in by the Nazi regime. The three were caught with such leaflets, quickly tried for the crime of “high-treason” and immediately executed by guillotine.
At her trial, Sophie testified: “Somebody, after all, had to make a start.” Her final words were: “How can we expect righteousness to prevail when there is hardly anyone willing to give himself up individually to a righteous cause.” 

Yes, The Government is Spying on You Through Your Webcam – Another “Conspiracy Theory” Proven True

Britain’s surveillance agency GCHQ, with aid from the US National Security Agency, intercepted and stored the webcam images of millions of internet users not suspected of wrongdoing, secret documents reveal. GCHQ files dating between 2008 and 2010 explicitly state that a surveillance program codenamed Optic Nerve collected still images of Yahoo webcam chats in bulk and saved them to agency databases,regardless of whether individual users were an intelligence target or not. In one six-month period in 2008 alone, the agency collected webcam imagery – including substantial quantities of sexually explicit communications – from more than 1.8 million Yahoo user accounts globally. GCHQ does not have the technical means to make sure no images of UK or US citizens are collected and stored by the system, and there are no restrictions under UK law to prevent Americans’ images being accessed by British analysts without an individual warrant.

Supreme Court Rules Police May Search A Home Without Obtaining A Warrant

If the most disturbing, if underreported, news from yesterday, was Obama's "modification" of NSA capabilities, which contrary to his earlier promises, was just granted even greater powers as phone recording will now be stored for even longer than previously, then this latest development from the Supreme Court - one which some could argue just voided the Fourth amendment - is even more shocking. RT reports that the US Supreme Court has ruled that police may search a home without obtaining a warrant despite the objection of one occupant if that occupant has been removed from the premises. With its 6 to 3 decision in Fernandez v. California on Tuesday, the Court sided with law enforcement’s ability to conduct warrantless searches after restricting police powers with its 2006 decision on a similar case.


The Gold Question – Luck v Fate

QUESTION: Mr. Armstrong, I’m a long time reader and great admirer of your efforts.  I recently read an analysts opinion on inflation that I want to share with you.
This analyst maintains that the Fed’s actions to stimulate the economy has done nothing more than fill the pockets of the very bankers that caused the economic troubles in the form of excess reserves sitting at the Fed collecting 0.25%.
Once the economy gathers enough steam to make lending more profitable for the bankers, he thinks the release of those reserves, in excess of 3.5 trillion to date, will create unbridled bidding for goods and services driving prices higher, thus he wants to buy gold!
I don’t, but he does and I’m sure others will follow.  What I want to know is how you see those trillions of dollars effecting the economy as it comes online?
ANSWER: Sorry, just nonsense. The dollar is really the de facto currency of the world aside from the fact that it is also the reserve currency. As political unrest continues to rise, capital will flee to the US pushing the dollar even higher. This nonsense about hyperinflation and inflation is getting really old. The lowest rate of hyperinflation among the top 10 incidents is about 400% per month and the worse was Hungary in 1946 that reached over 13 quadrillion % per month.

These people who keep touting well this time inflation will soar so buy gold, have zero historical perspective and if you want to cite the hyperinflations in history, ALL tangible assets rose from art to real estate. In fact, the currency that replaced the inflated mark in Germany was backed by real estate in 1925.
So quite frankly, if you are talking about inflation and gold’s pretend special hedge against inflation, I honestly do not know what drugs these people are taking. There is ABSOLUTELY NO incident in history where gold has EVER provided such a hedge in any sole capacity – NONE WHATSOEVER!!! When a currency goes into hyperinflation, there is no coming out of it. Thus, ALL tangible assets become the hedge – not just gold.
I have stated countless times that gold is the HEDGE AGAINST GOVERNMENT, not the hedge against inflation. It has risen during such periods ONLY when there is uncertainty as to what currency will survive.
Claiming that the $3.5 trillion will rush out and cause ONLY gold to rise is absurd. The vast majority of such money will flock to shares and real estate as it always has. YES they traded stocks in Rome as well and the idea of a corporation comes from Rome.
In the US, $3.5 trillion is just about 20% of the outstanding federal bonds. Add in all the other debt, shares, and real estate, and we are less than 2%. Add in the world, and forget it. It would be like putting a drop of oil in the ocean.
Gold is going to rise WHEN capital realizes that we have a geopolitical problem and there is uncertainly on the horizon as to what monetary system emerges afterwards. This is the real issue – not inflation. Plain and simple, gold reach $875 in 1980 and the Dow 1,000. The Dow has reached almost 17,000 and gold at its peak below $2,000. From a plain numbers game, the Dow was a far better hedge against “inflation” than gold since 1980. Why these people keep saying the same thing over an over again and somehow expecting a different result (this time I will be right) is a mystery. This is about surviving – not promoting some scheme or sick distortion of history. Why keep preaching the same thing costing people their future with no remorse is irresponsible. That is not an analyst – it is a promoter.
It is equally important to understand WHY you lost money as it is when you make it. If you do not understand how things truly function, then your wins will be sheer luck and the losses will become fate.

Assassination – tool of Revolution – The Contagion of the 19th Century – Are We in for a New Contagion?

The_Assassination_of_President_Lincoln_-_Currier_and_Ives_Armstrong Economics
A number of people have asked what was this Marxist Anarchist movement inspired by Karl Marx (1818-1883) and are we seeing this rise again? The very idea of assassinating leaders such as President Lincoln and President McKinley were part of an international trend in the 19th century that was based upon the theory that some dramatic deed was necessary to spark a revolution. It was called the “Propaganda of or by the deed”, and it advocated physical violence in a dramatic provocative public act perpetrated against political enemies with the goal of inspiring others to act in a popular mass rebellion or revolution. This was a political philosophy that was part of the radical thought process that was emerging that surrounded Marxism, but it was not exactly advocated by Marx, who was generally a revolutionary.
Pisacane Carlo (1818-1857)
Perhaps the first to be associated with this new radical political-philosophy was born the same year as Marx. He was the Italian revolutionary Carlo Pisacane (1818–1857), who wrote in his“Political Testament” (1857) that “ideas spring from deeds and not the other way around.”
BakuninAnother anarchist of the period who was perhaps the most influential  figure of the anarchism movement and one of the principal founders of the “social anarchist” tradition, was Mikhail Bakunin (1814–1876). Bakunin gathered tremendous prestige during the period as an activist that made him one of the most famous ideologues throughout Europe. Bakunin gained substantial influence among radicals throughout Russia and Europe and in one of his surviving letters from 1870 to a Frenchman concerning what he labelled the “Present Crisis”, Bakunin clearly stated that “we must spread our principles, not with words but with deeds, for this is the most popular, the most potent, and the most irresistible form of propaganda”.
Bakunin’s words were popularized by the French socialist-anarchist Paul Brousse (1844–1912), who in 1877 cited as examples the 1871 Paris Commune and a workers’ demonstration in Berne provocatively using the socialist red flag. By the 1880s, the slogan had begun to be used to refer to bombings and tyrannicides. Reflecting this new understanding of the term, the Italian anarchist Errico Malatesta (1853–1932) years later in 1895 described“propaganda by the deed” as violent communal insurrections designed to ignite an imminent revolution.
Alexander II of Russia (1818-1881)
The anarchist movement that began in Russia in 1878 was known as Narodnaya Volya (Народная Воля in Russian; People’s Will in English). This was a revolutionary anarchist group inspired by Sergei Nechayev (1847–1882) and “propaganda by the deed”theorist Pisacane. The Russian group evolved with ideas that targeted killing of the “leaders of oppression” as indeed the correct path for all political movements where small non-state groups should employ violence. They advocated using modern technologies such as the invention of dynamite. This was the first anarchist group to employ such dynamite on a widespread basis. This was the origin of the Russian Revolution in 1917 and the blood-bath that followed. They assassinated on March 13th, 1881, Russia’s Tsar Alexander II (1818-1881) with a bomb that also killed the Tsar’s attacker. Alexander II was also born the same year of Marx – 1818. This assassination failed to inspire a revolution, but it was taking a step in that direction that eventually led to the Russian Revolution curiously 37 years later (8.6 x 4.3).
Individual Europeans also engaged in politically motivated violence during the 19th century. For example, in 1893, Auguste Vaillant (1861-1894), who was a French anarchist, bombed the French Chamber of Deputies on December 9th that year. The anarchist movement was expanding through a contagion process spreading from nation to nation even across seas.  Between 1894 and 1896 during the economic decline, the President of France Marie Francois Carnot, Prime Minister of Spain Antonio Cánovas del Castillo, and Austria-Hungary Empress Elisabeth of Bavaria were killed by anarchists. This was the backdrop to the assassination of President William McKinley in 1901 and why his wife fear for his life.
Clearly, we have a trend in motion that is against government corruption that first poked its head above the surface with theOccupy Wall Street movement. Now that we are in the Cycle of War uptrend staring in 2014, this movement will turn increasingly more violent. More and more people in many countries will rise up against corruption as we saw in Ukraine and this will be a trend that will eventually impact the USA after 2015.75. The worst of the anarchist movement ALWAYS came with the decline in the Economic Confidence Model. So beware 2015-2020.

Thursday, February 27, 2014


Rising Protests now in Azerbaijan Against Corruption

There have been rising protests once again protesting against government corruption in Azerbaijan. This is becoming a much more rising trend and it reminds one of the rising anarchist trend inspired by Marxism that inspired many assassinations in Europe and then President McKinley in the USA back in 1901. That rising trend of unrest turned violent and culminated in the assassination that sparked World War I. (See Panic of 1896 for the beginning of that trend).

CLUBORLOV: Shock over Ukraine

Paul Craig Roberts: Ukrainian Neo-Nazis Declare that Power Comes Out of the Barrels of their Guns


Russian Warships head for Ukraine & 150,000 Troops sent to the Border


Russian warships have now appeared on the coast of Ukraine and Putin has sent 150,000 troops for exercises at the border of Ukraine. The conflict between the USA and Russia is as always – one of distrust. Between the American people and the Russian people there is no real conflict. The issue is always between political leaders playing king of the mountain.
The free market is what took Russia down precisely as the Russian EconomistN.D. Kondratieff warned and was killed for by Stalin. The free markets also broke the back of the West’s Gold Standard established at Bretton Woods in the Panic of 1971. The central bank of Ukraine has no choice but to abandon the peg of its currency to the US dollar and allow it to freely float because of the pressure from the free markets.
ADAM-SMITHWith all of this political posturing, there is a bottom line here that people refuse to look at. Adam Smith has been absolutely correct. The Wealth of a Nation is not its natural resources or “tangible” wealth, but the total productivity of the nation be it brute force labor tilling the soil or intellectual. Ideas can be worth more than hard labor for they allow are the fuel of advancement and innovation. Invading countries and destroying everything not to mention killing millions of people is really no longer necessary.
The PROOF that Adam Smith was correct is simply the fact that Japan rose from the ashes to become the second largest economy in the world without any natural resources to speak of. It was the TOTAL PRODUCTIVITY of Japan – not its resources. China has been doing the same buying up resources. Europe has raised its taxes and regulation stifling the creation of new business reducing its productivity. War does not pay – it costs a nation its real ability to advance.

Events in Crimea – Yanukovych & His Sons Are in Russia

Now Crimean protesters stormed the building of the Crimean Supreme Council. It is here where we are seeing great conflict. There are pro-Russian activists and also Crimean Tatars whose number is a lot greater than the pro-Russians. In the square in front of the Supreme Council (Parliament) building there was about 2,000 Tatars and their number is increasing all the time. They are shouting: “Glory to Ukraine!” “Glory to the Heroes!” “Crimea is not Russia!” and are signing the National Anthem of Ukraine and applauding. The leader of the Crimean Tatars Refat Chubarov is also there. Many law enforcement officers are also there and they are lined up in two columns in between the rallies, apparently to avoid the violence. However, they are throwing stones and bottles at each other and this is getting very complicated.
There are a lot of Russians in Crimea because of the port. However, the Tatars go back hundreds of years and are a people who go back to Mongol times and simply just stayed. Therefore, we have Ukrainian, Tartars, and Russians all in Crimea yet political interests from Russia given the port. The Tartars are Muslim so we have another element entering the mix.

Yanukovych and his two sons fled and made it to Russia. This is a serious development for it will provide the excuse for Russia to install the “rightful” supreme ruler of Ukraine. This further demonstrates the criminal behavior of Yanukovych and his sons who started the extortion operation for why would they need to flee if there were no involved?