Monday, April 28, 2014

MARTIN ARMSTRONG'S LATEST BLOG POSTS

Russia using Chechnya Troops to Occupy Eastern Ukraine – This is Checkmate

In Slowjansk, Eastern Ukraine, we have our own direct sources that confirm with photographs that Russian troops have invaded and occupy the city. We have direct confirmation that these men in green are from the Russian forces, but mostly from Chechnya. The Web Cameras that use to broadcast all the time in Slowjansk have been turned off now for almost 4 weeks.
This is a picture one of our direct contacts took in Slowjansk. This is not found somewhere else on the web and it is real – not propaganda. We have confirmation from our people there in the East this Russian troops are indeed occupying the region. They all have the same uniforms with no markings. There is no way someone who is non-military would have had the money to create such uniforms in mass or provide military grade weapons.
Putin is now also going to control the whole Russian speaking Internet. The 1st victim is already vk.com – the Russian Facebook. The creator and CEO of vk.com was fired from his position. He himself says, they wanted him to give out all the personal dates of the activists of Maidan, he did not want to do it and had to go.
This is the real deal. This is not spin from one side or the other. We are looking at reality and the West does not want to formally address this issue for it would imply that ground troops are necessary that nobody wants to provide.
Victims Killed for Flag
What is also taking place is pro-Ukrainians are being tortured and murdered now in various cities – this includes your teenage boys. Here are two people fromGorlivka who were tortured to death for raising the Ukrainian flag. One hour ago, a third victim was discovered dumped in the same location. This is having a chilling effect on Ukrainians in the East who do not wish to be apart of Russia and seek freedom.
Someone has created the completely new flag declaring the Republic of Donetsk that never before existed. Clearly, this is not even a former Soviet Republic and it will never be recognized as an independent country. Therefore, the only way to deal with this vision is to join Russia. This is the flag that was taken down that resulted in at least two murders so far.
What was a peaceful demonstration of people who were pro-Ukrainian marching with the Ukrainian flag in Donetsk turned into an assault with pro-Russian beating those who wanted to remain part of Ukraine. The police just stood-by and did nothing to protect the people from the Russian “tourists”.
There is no level of sanction that will resolve this issue. The only possible solution is to split the country and allow those who want to remain as Ukrainian should be given aid to move. Property values in the East have collapsed to zero. Nobody can even sell their house to move. They are totally trapped with zero hope of surviving as independent individuals. They will be hunted and killed little by little and the sooner we realize there is no sanction that will protect these people, then and only then can innocent lives be protected. Russia is taking the East – that is a given. Help the people who want to leave – leave. That is the ONLY just solution at this point. They need aid to restart in the West for they must leave everything behind. This is checkmate. Nobody will defend these people so let’s just get real.

The Deflationary Aspect of the Dollar

Inflation-Deflation2
One of the most difficult concepts for people to grasp is the fact that a currency is the OPPOSITE of assets. When assets rise, like gold and stocks, this means that the currency MUST decline in purchasing power. This is the standard function of a currency regardless of what it might be. This is why I have stated that a gold standard will be a decline for gold – not a rally in a bull market. You cannot look at the currency as if it were a stock – up is good (deflation) and a drop is bad (inflation).
$1990-Dow-1927-37
Here is the Dow and the dollar during the Great Depression. The Dow bottomed in 1932 as the dollar peaked. Therefore, a normal rally in the dollar post-2015.75 reflects (1) deflation, and (2) capital concentration back into the USA. The rise in the Euro is not a reflection of a booming economy right now but a declining one.
Nik-Yen-1987-97-m
The yen rallied with the decline in the Nikkei as seen here (yen in dollar terms showing the decline in the dollar v yen). This is the standard patter that unfolds. The rise in a currency is BEARISH generally for assets.
FTSE-1900-2013-Y
HOWEVER, there are times when capital flees due to war. Under such circumstances, then and ONLY then, do we see both domestic assets rise and the currency value in an aggressive manner. A currency will rise in value with a strong capital inflow based upon foreign investment. In the case of Britain, when the pound fell to $1.03 in 1985, that sparked a breakout above the Projection Line on a Yearly Basis. That line has held ever since.
Therefore, a rise in the currency can take place with capital inflows that are external rather than a pure domestic capital concentration. This requires careful monitoring to determine the direction of the markets and currency and when will be get a flip in the driving force.
As with all aspects, the global economy is dynamic and that defies the establishment of a single rule in a once-dimensional world that does not exist.
This is why we have been warning that we may yet see a Cycle Inversion because of the impact of war. We can see from this chart in the London FTSE, that we should see a breakout to new highs in this index as well. Keep in mind, that tanks cannot drive across the channel with boats and this is distinctly different from Western Europe as a whole.

Capital Flows

Intl-Capital-Flows 2
Real Estate is the choice at this time to get capital off the grid. We are seeing Chinese still buying Australian Property for now and wealthy Russians are looking at Putin raising taxes and the rubble of the ruble as a justification to get capital out of banks and into property. Even the wealthy Ukrainians are trying to shift more cash into London property. London is seen as a bit safer than Europe and the eastern European oligarchs are right behind. This should help the euro press a bit higher and provide support for the pound near-term. The rates are collapsing in Europe as capital flows to the center fearing war. This trend should begin to shift again and the dollar will rise AFTER 2015.75 with the ECM as it has always done.
$1900-Forecast-Y
We can see the 13 year high following the 1995 low in 2008 that was precisely on target. This should turn back to new highs starting in 2016. You can see the pattern is by no means a Phase Transition or a spike high. The dollar rally into 2008 came way too close to the 1985 high that sparked the birth of the G5 at the Plaza Accord. This is warning that the ultimate spike high that will break the US economy appears off into 2021. This is where we expect to see a capital contraction into the USA from outside the country.

What the Hell Can we do To Hide from the Future?

QUESTION:
Hi Marty
I was at the trading class in PA though you did an excellent job I
have worked on Wall Street for about 25 years sales and trading on
equities desk at Lehman, First Boston I have learned more reading your
work and attending your conferences than anything over those 25 years
So here’s the question after reading your “Vortex of Debt and corruption ”
How should one begin financially to prepare for what’s about to come ?
Could you walk as through a thought process of how we should think and
steps to take
Your thoughts and time are greatly appreciated
JD
TSA Inspection
ANSWER: This is a difficult question that we are using Socrates to answer. We are gathering data on movable assets such as rare coins and stamps that were used extensively to move capital during World War II. Most people may not know it, but most of the German and other European rare stands and coins ended up in the USA by the conclusion of World War II. Thereafter, only as Europe began to rise from the ashes did these rarities gradually begin to make their way back to Europe starting in 1960s. We have probably the most extensive price history on ancient and US coin rarities, but we are completing this database with European and Asian. We need to complete this database because there is a tremendous problem emerging in the ability to even migrate with your money. Governments are confiscating cash and searching people’s bags using terrorism as the excuse, but if they happen to stumble upon bonds, cash, and gold, well gee – they must be funding some “domestic terrorism” or are outright criminal engaged in “money laundering” that is now defined as hiding money from government.
This is out absolute TOP priority. We will not publish that on the web, but will provide it only in a written report for security reasons. The steps on how to get off the grid are different for those in North America versus Europe and Japan. That is due to the threat of physical troop invasions.

Mexico Vigilantes disarm Police – The Backlash Against Corruption

Mexico-Disarm-Police
Mexican vigilantes disarm police who have been protecting the drug cartels. The people are starting to rise up in Mexico against the political corruption that has been so pervasive thanks to the tax-free drug market into the USA. Legalizing drugs will save countless lives and return governments in South America to the people. But that is unlikely to happen so more gun battles are likely north and south of the border.

Protecting Russian Speaking People in Eastern Europe is to Protect Russia Itself

Compatriots
The proposition in Russia is that they must defend Russian speaking people living in the Eastern European former Soviet States. This is the justification for international war and Russia is well aware that Europe will not defend this region for it is financially broke in any event. The proposition is that to protect the compatriots abroad is to protect Russia as well. The Press Center of the Russian Foreign Ministry held a presentation under the collective monograph of “International experience of support and protection of the rights of our compatriots abroad”, which was prepared and published by the International Council of Russian Compatriots (ICRC), with the assistance and support of the Fund for the protection of the rights of compatriots living abroad. (“International experience of support and protection of the rights of our compatriots”. Group of authors. International Council of Russian Compatriots.  M: second edition 2013. Page 312).

Is a Crash Inevitable? The Spiral Vortex of Debt and Corruption

QUESTION: Hi Marty
I am somewhat concerned about the events unfolding in Nevada, the encroaching tyranny and the future. Sometimes you say that everything will collapse in 2016. Does this mean that the government will collapse and thereby lose their ability to reign tyranny down on us, or indeed will it intensify as the government tries to hold on for dear life. I often wonder what is the correct course of action for me to take as an individual. When I see events unfold in Nevada, while I don’t necessarily see it as black and white I do see Cliven Bundy’s rights being trampled upon by big government and it will only get worse. My reaction is to do whatever I can, so complain to the BLM, ring the governor. ring Harry Reid’s office, because those are the things I can do in my power and to be honest if everyone made a call they would have to take action simply to stop people calling. I ask myself what is the point though. There seems to be a large amount of inevitability in your writings and if it is gong to happen anyway why waste the effort. Is it just better to bury our heads and wait for it all to pass.
All the best
A
SovTimeBomb
ANSWER: The economy will decline in the USA following 2015.75 and will have several important impacts that will shape our future. The Big Bang is inevitable – YES! The outcome is to be determined. This is why I do what I do. I too have a family and fear for their future. I am not 23, so my shelf time is expiring thank God so I do not have to live in this age of tyranny too long. Nevertheless, all I can do is try to educate as many people for if they understand how things work, then when it comes time for the rebuilding, perhaps we can choose freedom over more authoritarian-tyranny. I have not charged money to read this blog for fortunately I do not have to work for money. Nor have I restricted access forcing registration to keep this as open as possible. I do not even frustrate you with advertising. So my concerns are for our future – not to sell bullshit, gold coins, or investment products. This is far more important. Unfortunately, the primary impact will be.
  1. The USA is the only economy holding up the entire world right now. GDP Growth is collapsing everywhere from Europe, Russia, and into China. Once the USA turns down, the civil unrest will rise in the USA as well. The Occupy Wall Street was a dress rehearsal.
  2. Governments will find it increasingly harder to sell their debt. This trend has already hit both China and Russia. We will see it hit Europe, Japan and then the USA. This will drive the trend to raise taxes further as governments will assume that they need to restore confidence within their debt structures. As they do this, the global economy will turn downward into a spiral vortex.
  3. While governments claim to be mad at the NSA, behind the curtain there is legal swapping going on. Foreign nations are using the NSA to gather data for taxes on their own citizens while denying they spy on their own people yet get that info from the NSA. In return, the NSA allows the British to spy on Americans so the NSA can deny it is doing so domestically and then swaps the info. Germany and Switzerland also participate in this domestic spying for taxes.
  4. The G20 agreement to swap all financial info to hunt down international capital is all about getting tax revenue to sustain the debt structure. There is no long-term planning here and they cannot see that they are creating the nextMAJOR GREAT DEPRESSION to make all previous downturns loop like speed-bumps. I reported that even I could not wire $15,000 for expenses to Asia in advance. HSBC refused to accept the wire for they could not guarantee I had no ownership in the account the wire was directed. I had to write a check. You cannot even do business because these people are hunting all capital and PRESUME any transaction over $3,000 is to hide money – not for commerce.
  5. Government will not collapse. This early stage will be about fighting hard to sustain their power. War is part of that. International War takes place either to fill the treasury with the spoils of war and or power as was in the good old days (Putin’s ideas), or the more modern version to act as a distraction to deflect civil unrest (USA to come) and to unleash the dogs of war to settle old scores (China v Japan, North v South Korea, Russia v West).
french-revolution
 What you have to realize is that this trend is inevitable – YES. Why? Because there can be no change without pain. It is unrealistic to expect government to simply say OMG, you are right – let’s reform! Gee, here is the power we stole unconstitutionally – sorry! My bad! Political change does not take place without pain. This is what revolution is all about. Government has NEVER even once in recorded history simply said it was wrong and handed back power without anything causing such a change. This is just the way things function. This is Jefferson’s Tree of Liberty that must be fed with the blood of tyrants and patriots.
Time-Tracks
Therefore, predicting the trend of the MOB is simple and that is what cycles are all about. However, that does not mean we are hopelessly lost as individuals. We personally possess the free willto act like dumb sheep or to see the train coming down the track and move out of its way. This is why there are always two forces politically. People ask me what would happen if everyone used our models? Very simple – that would never happen. There is always people who will never believe simply because they cannot see things in a dynamic structure. They can only see the world in a linear fashion.
Occupy Wall Street 1
So yes – it is inevitable. I can rally a few hundred thousand people and we can all march on Washington. It will change nothing as was the case with the Occupy Wall Street gathering. Government simply arrested people under all sorts of pretense. Michael Bloomberg, who was Mayor of NYC at the time, was more concerned about people drinking soda than the freedom of speech. God forbid they protest against his bankers – never forget he came from Salomon Brothers.
Just as the pretend liberal Bloomberg sought to crush the freedom of speech yet cared so much about people drinking soda, we are hopelessly lost in a declining spiral vortex of debt and corruption that will only change with war and civil unrest.

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