Wednesday, February 12, 2014

MARTIN ARMSTRONG'S LATEST BLOG POSTS

White House Selling Debt to Americans – Bringing it Back Home

WhiteHouse
The idea that Obama is doing anything for the people because he cares is just claims that illustrate the sheer stupidity of those who argue such nonsense. They will believe whatever their political party has to say because they are effectively mindless drones and that applies to both camps. These people tend to be followers and shy away from actual independent free thinking. The new sales job to bring the national debt home is illustrated by the White House blog.

Bankers Forced to Swear Oaths in Netherlands

Netherlands-Central-Bank
In the Netherlands, they are making bankers swear an oath to God that they will do everything honorable to uphold the confidence in the financial system. I suppose there will be an awful lot of bankers going to prison in the Netherlands after 2015.75. They would have been better off passing a law that they cannot buy products offered by New York bankers.

Global Warming & Random Walk Theory Have a Lot in Common – They are Both Nuts

Gore-Hot Air
Global Warming is clearly a bunch of hot air. It seems to be a theory made up by a bunch of guys that got drunk one night and said – Hey man! It is warmer this season than last! Wow! We must have caused that man! Word! This is the coldest year day after day on a consistent basis I can remember in my life. Environmentalists and Democrats love to claim that there is a “97 percent” consensus among climate scientists about global warming. However, they choose to ignore the fact that 95 percent of those climate models predicting global temperature rises have been wrong.
This entire theory is nonsense and it arises from the same idiotic concept that fails to recognize that there is a cycle to everything from the way your thoughts are formed in your brain (brain waves), the beat of your heart, to the 4 seasons. This is up there on the list a really stupid ideas like the random walk hypothesis that was devised because the markets went up and down rather than in a straight line and people could not predict that.
The Random Walk Theory stating that stock market prices evolve according to a random walk like a drunk staggering down the street making them unpredictable was the theory to explain total failure to understand how the economy functions. The concept can be traced to French broker Jules Regnault who published a book in 1863, and then to French mathematician Louis Bachelier whose Ph.D. dissertation titled “The Theory of Speculation”(1900). These same ideas were later developed by MIT Sloan School of Management professor Paul Cootner in his 1964 book The Random Character of Stock Market Prices. The theory was then popularized by the 1973 book, A Random Walk Down Wall Street, by Burton Malkiel, who was a Professor of Economics at Princeton University. This was used earlier in Eugene Fama’s 1965 article “Random Walks In Stock Market Prices”, that was the foundation for his Ph.D. thesis. The theory that stock prices move randomly was earlier proposed by Maurice Kendall in his 1953 paper, The Analytics of Economic Time Series, Part 1: Prices
Both theories of Random Walk and Global Warming are failures to understand the cyclical nature of the universe and that we oscillate between two extremes in everything. We have even male and female. There are two opposites that make everything function right down to our concept of God and the Devil, good and evil, etc.. These crazy people actually proposed that the government spend money to create a machine to reverse global warming. Simply breathtakingly brilliant.

The Other Side of Uprisings – Religion

France-Gay-Rights
The issue of Russia’s anti-gay policies has been a hot topic for the Olympics. However, this masks the underlying issue. This is not some personal issue of Putin. There is also a rising tide against liberalism. The right-wing even in Ukraine want 7 years in prison for a girl who gets an abortion and the elimination of all gay rights. This is a rising trend behind the old Iron Curtain.
The other trend is the anti-Jewish trend to emerge once again and this is fueled by the image of Jewish bankers dominating Wall Street. This tends to create images of the entire Jewish race as being painted with the same brush.
What is very interesting is the same logic that led to the rise of Christianity is once again being hauled out and put to use in these hard economics times. Christianity soared as the economy turned down during the 3rd century as the popular saying was the economy turned down because the “gods” were angry at the Christians that led to the largest persecutions in history. The Christians argued than the economy turned down because of worshiping false gods.
We now have a rising argument that will pick up steam after 2015.75 that the economic decline is because of this liberalism. This will heat up during the decline when people are influenced by such ideas.

German High Court Rules Children Must Support Parents – End of the Social State

german-high-court
The German high court has ruled that children MUST take care of their parentseven if they have not spoken to them in 27 years. The entire social contract is collapsing. The historical norm of children taking care of their parents was displaced with the New Deal where government stepped in to provide the safety-net. Now the high court has ruled that it is the child’s responsibility. So what are all these taxes for? German politicians earn more than 4 times the average politician. Government costs money – it is not an entitlement to extract taxes from the people.

The Debt Ceiling – Non-Issue

IntRate-Manipulate
Behind the Curtain China and others warned the US that if it played games with the debt, it would be the last the US would be able to sell its debt to foreign lands. This is also why Obama announced tax-free long-term bonds for Americans to bring the debt home. This is why there is no fight this time over the debt ceiling. They have also been manipulating short-term rates to keep them so low, they have wiped out pensions and savers.
Glen Downs stated there would be no fight on this blog. Every source we had tells the tale of Behind the Curtain. The mainstream press will never report the truth. They comply and never dig too deep. In Russia, the government just shut down media that was reporting the truth in Ukraine. What goes on in the USA is simply voluntary compliance. It is also why Snowden had to go to London to report the truth. There is absolutely NO mainstream press in the United States that will ever tell the REAL story. Journalists are not the problem – it is their editors put in place by the owners.

ECB Structural Faults & Switzerland Bail-Out of Banks

Euro Symbol
QUESTION: I’m not clear about the purpose of the ECB. Each member country goes to the international capital market and gets a different cost for its bond issuance based on its credit worthiness and other factors. If the ECB’s role is to redistribute the debt loads of stressed countries by taking from the less stressed countries, they havent yet got a mandate for that. So, what else do they do?
Second, I have not yet read on your pages a clear comment on whether you think Switzerland will be part of a European bail-in. Can you please speculate on this point? It seems to me that the usual political pressure by Germany and France on Switzerland will be harder to impose this time round as a result of the double tax treaties signed in the last few years with pretty much all member states. IMO there is no reason for Switzerland to participate in a continent-wide bail in, unless any one of its big banks is in such dire straits that the Swiss govt could use a bail in directive as an excuse to recapitalize that bank.
In the event of a bail in – and my view is the EU will get one – which way are you leaning? The IMF’s 10% tax, or a Cyprus-like bail in? Is it, in your estimation, a bail in of cash deposits only, or of cash and financial investments together?
Thanks in advance for any thoughts on the above.
All the best
C
ANSWER: You are correct. The ECB is not really a central bank because there was no central debt. On top of that, they did not have the ability to create elastic funding. The ECB has limitations set by the politicians that must be increased like the US Debt Ceiling. Yet the EU Commission is trying to manage this looking at the same methods in the USA when they failed to create a national debt through the consolidation of member debts. That also then deprived the central bank of truly being able to maintain a single interest rate. The entire system structure is half-of-this matched with half-of-that and this is why it is collapsing – faulty design.
With respect to the Swiss, they have their own scheme. They should NOT be part of the EU scheme proposed by the IMF and negative interest rates put forth by Larry Summers. The Swiss have already enacted their own bailout scheme and it is similar.

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