Friday, June 13, 2014

MARTIN ARMSTRONG'S LATEST BLOG POSTS

Euro Under Pressure

IBEUUS-W 6-13-2014
The Euro is caving in after the elections. Those in the money know this is doomed. This will help to give a bid temporarily to gold and the dollar. For as people have been pitching that the dollar will decline and gold will rise is purely a domestic view point. The international view point is what happens if the currencies of other nations come under fire? That will lead to the dollar rally. We do not see gold actually reversing its downtrend just yet. Nevertheless, this is not a one-for-one relationship that dollar down gold up. That is a purely myopic US view point as if the rest of the world did not matter.
IBEUFOR-W 6-13-2014
The June turn we warned about at the World Economic Conference so far seems to be developing. The Euro appears to have ended it rally and we just could not reach the reversals. The old adage – what will not go up, only goes down. The directional Change came in nicely for this week, but we have a turning point next week. We should probably see a temp low form.
Even the Prime Minister Cameron pointed out that the EU Commission is just insane. They are digging in their heels and refusing to reform. Instead, they are simply trying to make a push hard to secure their own swath of power that so cheeky cut out of the political arena in Europe. Cameron decreed:
“We must focus on finding the best candidate for Commission President. Someone who can deliver reform, driving growth and creating jobs, and accepting that Europe’s needs may best be served by action at the national level. An honest and trusted broker able to re-engage Europe’s voters.”
Europe does not look very good in the least. Austria cannot even afford gasoline for its NATO troops. How bad does this crazy idea of socialism have to get before someone wakes up and realizes that centralized control kills the economy.

Invasion of Children

Alien-Children
The Department of Homeland Security dealing with more than 48,000 unaccompanied children crossing the border into Texas has created a real controversy. Aside from the humanitarian issues, we must consider what is causing this issue. That centers on immigration reform and the idea of giving amnesty to children. Quite frankly, if I was Mexican, I would have to say that this is a viable shot to secure their future.
So what can be done? The entire issue emerges from taxes. The income tax should be abolished and we should simply have a consumption tax period. Why? Because only American citizens and green-card holders pay income tax. Aliens even pay sales taxes. If we abolished the income tax that whoever is here then pays. The “rich” cannot take a lawyer to negotiate the sales tax on a car where that is done with income taxes.
Additionally, the aliens do jobs Americans do not want. In New Jersey, you are not allowed to pump your own gas. Yet, gasoline is no more expensive here than in California. We have eliminated jobs at parking garages and gas stations that the youth use to do to earn money during their school days. They use to be important for they were apprenticeships in a way teaching kids that they had to earn money etc, Now, the youth do not do those jobs and the immigrants do what American youth feel they are too good to do,

Swedish Real Estate Bubble – Peaking 2015?

swedish-parliament
The IMF warns against financial problems in the Swedish economy. The government needs to urgently curb private debt home buying warns the IMF. If the property prices fall, Sweden threaten economic turmoil.
The recent data indicate that household debt ratios are high across all income groups. However, indebtedness among the lower-income households are generally more vulnerable to income, interest rate, and house price shocks. Indeed, the real estate bubble in many of these places in Europe should peak next year and turn down rather hard into 2020.
The IMF trimmed its economic growth outlook for Sweden this year, and said it is likely to settle at 2.6%, down from its previous estimate of 2.8%. The institution raised its growth estimate for 2015 to 2.7% from 2.6%.
In light of growing household indebtedness, the IMF called for Swedish policy makers to introduce “a comprehensive set of macroprudential actions” to help steer mortgage credit demand “towards a sustainable path.” It suggested binding maximum amortization periods for new mortgages and a further reduction of Sweden’s loan-to-value cap, as possible measures.
Sweden’s economy has performed well relative to many other European economies since the financial crisis, the IMF said in its review. But it noted that unemployment has been higher than expected, especially among young people, the low-skilled and immigrants. This is the European systemic problem of socialism. The private sector just cannot create enough jobs when taxes are so high, people do not risk starting new companies from the ground up.

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