Tuesday, March 31, 2015

Alison Weir - The Hidden History of How the U.S. Was Used to Create Israel


FACEBOOK: Another Profound Violation Of Privacy


Facebook accused of tracking all users even
if they delete accounts, ask never to be followed

KARL DENNINGER: The Market Ticker Ceases Publication



Massive News-Suppression That’s Become History-Suppression


A World Without The Welfare State


We live in an era in which few can even conceive of a world without the welfare state. Who would care for the old? How would people provide for their medical needs? What would happen to the disadvantaged and needy that fell upon hard times? In fact, there were free market solutions and non-government answers to these questions long before the modern Big Government Welfare State. Unfortunately, after nearly a century of increasing political and cultural collectivism,the historical memory of the pre-welfare state era has all but been lost. The Welfare State makes us all poorer in character and independence. Confiscation of freedom through abridgements of individuals’ rights to their life, liberty and honestly acquired property, also brings with it a less humane and civil society.

Pennsylvania's Top Lawyer Fights for Clearly Illegal Law Silencing Prisoners and Journalists Who Cover Them



How Are the Coupons Redeemed in a Debt-Equity Swap

QUESTION: sure enjoyed your conference via livestream and thank you for your blog site as it is very informative.
I understand the swap of federal debt for equity in the form of coupons. then the coupons will be redeemed as cash from the treasury. what method of funding the coupons will the treasury use? I assume print the money?

ANSWER: That is the very crux of the issue. Debt is the same as money except that this pays interest. There is NO distinction between borrowing and printing if the debt is collateral for anything. There use to be a difference when you could not BORROWusing government debt. Under those conditions, the money supply did not increase. When that changed, hello, where is the difference between printing and borrowing from a money supply perspective?

So honestly, this type of swap would REDUCE liabilities of interest and would therefore reduce the money supply for they would swap the coupons for the debtELIMINATING interest payments. This would contribute to the needed creation of money to fund government without taxation at the federal level. There is no alternative for as long as government THINKS it needs tax revenue it will continue to destroy the economy and create a crater of deflation until we have a revolution.

This proposal will not prevent the business cycle, but it may simply help to temper the swings like Joseph and the Pharaoh.

OTC Derivatives

OTC Derivatives
QUESTION: Hi Martin,
Enjoyed the Solutions conference and am looking forward to the October conference.  There was no mention of the over the counter derivatives market.  Would a debt to equity swap trigger the swaps creating a much larger problem then the current outstanding debt?  Didn’t they try doing a voluntary default with Greek debt before hoping that it wouldn’t trigger the default swaps but it was later ruled that it would technically be a default so they canned that idea?

Is the $700 trillion or so of OTC derivatives a big problem or not?

Thank you,


ANSWER: That portion related to sovereign debt will most likely be closed out at the market. Keep in mind that they wiggled out the Greek liabilities arguing that they covered only a 100% default, not partial haircuts.

The problem with the OTC derivatives is the declining liquidity. That is the real crisis we face – the flash crash the other side of 2015.75. That may force political change. But I do not think politicians will be able to shoulder the banks this time. Tucked in the December bill was language that authorizes bail-ins. The political heat may be way too hot to bail out the banks again with a trillions dollars.

Many people tout this as if the entire market is some single unfunded liability. The bulk of this is hedging – insurance. It is offset against something else. The problem is not that the entire market collapses. this reflects leverage true, but this merely will increase volatility tremendously as things are offset and market-makers are not willing to make markets.

From Greece

COMMENT: Mr. Armstrong, Your solution is unbelievable. Greece’s debt is selling at a huge discount from face just like Mexico in 1986. If we follow your model, this would reverse everything. I agree opening this up for all holders of debt rather than exclusively domestic as they did in Eastern Europe would entice major new investment. My bet China would be buying up Greek debt if it converts to hard assets. That is from the dealing desk view. It would then put political pressure back on Europe and that will force change in the USA. You are correct. It becomes a contagion for the better.
Your friends
REPLY: Absolutely. Even the German hyperinflation ended how? When a new currency was issued backed by tangible assets being real estate! Bahamas was the last group of islands to expand the tourist trade because they had a law that you needed a domestic partner. If there was nobody there with money, nobody could build a hotel. We must respect international capital flows.
Those in the industry see this instantly. Our problem is opening the eyes of the rest of the world as to how things really function. The politicians will be the last to respond. But they will respond quickly when you crash and burn.

Breakdown of Debt

Debt-US Holdings 2014
Mr. Armstrong, I have been eagerly awaiting your Solution and am trying to wrap my head around it. Can you explain more about the debt to equity swaps? What exactly would the debt be swapped for? PS: In your latest blog, you mentioned repealing the “13th” amendment. That gave me quite a shock until I realized you meant the “16th”!!
ANSWER: Well yes I meant the 16th, but ironically we are all economic slaves from their view anyway so it would abolish our slavery as well under the 13th.
A debt-equity swap is what you do to make a transition. In the case of Mexico, it was a swap of debt types. In Eastern Europe, it was a swap for state owned assets. Poland implemented an extensive privatization program in 1990 and had privatized half of all state-owned enterprises by the end of 1994.Debt-equity swaps were introduced into the Polish process in 1994, primarily for use by Polish banks in converting their non-performing loans into equity stakes in the debtor companies. Foreign debt was not eligible for use in these Polish debt-equity swaps.
In this case, we would swap out the federal debt of $18 trillion into coupons that are redeemable for the purchase of private equity. You would then take the coupons and invest in stock. Since large corps are buying back their shares now, they do not need the money. This will go to entrepreneurship starting up businesses or expanding small business. It would provide a stake in the nation for all for the lower class would actually become investors. The “rich” make money from investment, not wages.
Of course there will be people who criticize this idea. They have no practical solution for there is no other choice. You reach the point of no return. Governments are causing DEFLATION and destroying everything as they hunt money. That will collapse the world economy and they are TOO STUPID to comprehend what they are doing until it is too late. The hard money guys have already sent nasty emails, but their world is precisely what Germany is imposing in Europe. They are handing the people over to the bankers for go ahead, back bonds with gold and how do you pay your mortgage.
There is no practical solution and EVERY debt crisis has involved either a DEFAULTor some sort of haircut. Any way we slice it, the next downturn will present solutions that hand more money to the bankers and you will see revolution next time. We either seriously look at how to end this cycle of perpetual borrowing, or go build a cabin in the woods far from everything. We are rapidly reaching the point of no return.
The city of Mainz was where the Gutenberg Press was invented. That created a economic boom like the internet today. The politicians spend wildly assuming taxes would never end. So they borrowed heavily against expected future revenue. As taxes rose, people left town. Their debt kept rolling as new issues were sold to pay off the last one. When nobody showed up for the next issue, they could not pay. They collapsed and eventually the creditors sacked the city and burned it to the ground. I sup[pose that is a solution.


MONTH END Closing Below 10765 in Euro & Market Recap

IBEUUS-M 3-31-2015

We have a DOUBLE Monthly Bearish Reversal coming into play today for the Euro at 107.65. This seems to confirm we will see a drop to par. This is still placing pressure on the dollar and a rising dollar remains the confirmation of a deflationary trend in motion. Europe can lower the Euro, but this does not appear to be poised to “stimulate” the European economy. The contraction is far more than the proposed increase in money supply.
Here is a comment from Europe:
Hi Marty,
For the past two months now, from across Europe including UK more and more bad news are coming in from friends (good people) who are either loosing their job and not finding something adequate or new at all, or (so far) successful entrepreneurs struggling now in their sector, or others who have been trying to sell their company but not getting this done, and so forth. Just the big corps seem still doing fine.
And these are the better months before 2015.75 arrives; that’s a rather grim outlook I can tell you..

GCNYNF-M 3-31-2015

In gold we have technical support at the 1163 level and we are trading at 1183 at this moment. A break back below this level will signal a revisit of the lows. Now most technical traders will start to look at the Uptrend Line in the mid $700 zone as a target. This remains to be seen, for it is a question of TIME and PRICE.
DJIND-M 3-31-2015

The Dow still has support in the 16500 level. As long as that area holds on a monthly closing basis, then we do not yet see a major end to the uptrend. A short-term correct will be possible later on, but this may still prove to be a buying opportunity.

Trying to Manipulate Reviews – NY Boys are Amazing

COMMENT: Hi there – I saw the movie last night having booked my ticket well in advance. When I got there there were several people enquiring about tickets but the Box office lady told them it was already sold out. They were shocked. All age groups at the viewing as well. Everyone knows the charges against you were just bogus.
Best, Sam

REPLY: It is very interesting that so far the film has a 7.8 review but when you look, they have Americans entering a rating of 1 and Europeans 10. It is clear that the NY boys are desperately still trying to get people not to see this film. If it was bullshit, they would not care. The fact that to put out such a film they even had to have Error & Omission insurance so all the facts had to be reviewed by independent lawyers. They approved the insurance for all the facts in a documentary must be proven or else they could sue. So they refused to be interviewed for the film so all they can do is try to create rumors and influence ratings.

No matter what they say, I stood up and objected to them taking all the tapes that would have exposed the illegal market manipulation by the banks back in 1999. This was a giant cover-up to protect the banks. Then the very receiver who demands all these tapes, Alan Cohen, amazingly becomes a board member of Goldman Sacks but continues to be the receiver running Princeton Economics. You cannot make up this stuff.

Here are the transcripts about the computer self-destructing, the fact that after the bank plead guilty they refused to release me and held me in contempt without any charges or allegations. Cohen admits there is no description of anything to hold me. Just take him away and we will figure it out later.

The NY banks control government as they just paid to have Dodd-Frank repealed, and they own the NY judges who would never even bother to read the contracts and would have seen we bought portfolios, we were not managing money. This is the REAL face of the legal system in NYC and of course they will NEVER investigate or prosecute their own.

The Constitution is a scrap of paper. It means absolutely nothing. I had no 5th Amendment right because they said I was a corporate officer and corporations are not people (Braswell v. United States, 487 U.S. 99 (1988)).  Yet in 2010, the Supreme Court rules corporations are people for the First Amendment and can spend money for political elections, see Citizens United v. Federal Election Commission, 558 US 310 (2010).
You are whatever they need you to be to achieve the immediate goal. There is no rule of law left in the United States. It is just a joke.
TR02072000 Tapes
Cohen Seizes Evidence on all Bank Manipulations
Owen Changing Transcripts TR01072002 - No Criminal DescriptionTR01072002 - HSBC Criminal Plea

NSA Proves it Cannot Protect Even Itself no less the Country


The NSA incident proves that they are bullshitting everyone for since they grab every text, email, and phone call, why did they not know they were going to be attacked? They claim they could have prevented 911. Nice claim. It is all nonsense. They are tracking us for money.
They are making a film about Snowden also coming from Europe because no American would dare do such a film. They are trying to stop that movie as well. So this is all about creating a file on every individual precisely as the East German secret police. All they have to do is type in your name and everything comes up. They could not prevent even this attack nor the Boston bombing. They cannot protect even themselves no less the country.
Europe is doing the very same thing. This is all about taxes. They keep thinking the more they can get they will solve their problem but they are incapable of fiscal management. It will never end nicely.

London Has been Sold Out

COMMENT: Martin Just been to see The Forecaster in London, it was a full house. F**king fantastic film! The audience were captivated. Thanks for sharing your story.
It was an amazing story, this film needs to be seen by the masses. It strengthened my belief that bankers own government.
Thank you, I wish you and your family all the best for the future.
REPLY: Interesting that Europeans are giving this a 10 out of 10 while desperate NY bankers are trying to rate it 1 out of ten. There is no no middle ground. This is by itself showing just how desperate they are in NYC to stop this movie. Wait until Congress is forced to hold hearings on all their manipulations. If we can get rid of the federal debt, they lose that control over government and are on their own at last the way it should be.