Monday, December 28, 2015

MARTIN ARMSTRONG'S LATEST BLOG POSTS

The Only Hope to Save Britain?

London
Landlords are joining together to challenge the Conservative’s (Tory) tax hike filing a suit in the high court against their tax increase on “buy-to-let” investment properties. One of the reason I have stated that Maggie Thatcher herself would have by now broke with the Conservatives and started her own third party is demonstrated by this abusive tax on property investment. The Conservatives are acting more like communists in London these days for this tax the Government introduced plans to prevent landlords offsetting mortgage interest costs against rental profits before calculating tax. So in other words, they are preventing the leverage in real estate which means this can only create a one-sided complete collapse.
Thatcher-Federal Europe
David Cameron is perhaps the WORST Conservative in British History. He is doing everything possible to remain in league with Brussels. Cameron’s comment after rigging the Scottish vote to ensure Scotland could not leave the UK was shocking. He said the vote settled the question for “for a generation” revealing his pro-government posture and anti-Democratic undertone. This posture goes all the way to agree with Brussels, and Cameron’s arrogance (video of his speech) was just stunning. His promise for a referendum to leave the EU was a bullshit ploy he never expected would actually stand a chance to win.
Now Cameron is scared to death and has the bankers trying to frighten everyone if they in fact left the EU Britain would collapse, which is insane since the bankers themselves will fall if they remain inside the EU with what is on the horizon. Cameron called on the bankers to claim is Scotland left the UK the bankers would all move to London, which was propaganda as well. EVERYTHING Maggie Warned about has come true under her own party. Thatcher was always clear that asingle currency was all about the federalization of Europe through the back door. Cameron should what the debate back in 1990 on this issue,
Cameron-Merkel
These tax changes supported by Cameron on property in London demonstrate he is no Conservative. The “buy-to-let” tax on property eliminates interest expenditures in the property business unlike all other businesses, this is retroactive not limited in its application to just future sales but to ALL existing investment properties as well as. This demonstrates how Cameron is not qualified to head any economy for he is creating the S&L Crisis for Britain. As soon as you create a one-sided market, prices implode. He is creating a situation where there will be NO BIDfor such properties.
London-Destroyed

corbyn JeremyFarage-Nigel-1We will see Britain facing a tremendous political upheaval as we approach 2017. We have warned that a year-end closing for the pound below 147 will warn the currency is preparing to crash. We have additional year-end sell signals at 146.15 and 140.50. The ONLY POSSIBLE HOPE TO SAVE BRITAIN will be Nigel Farage. Both Labour and Conservatives have simply lost their minds.

Pi & Major Changes in the Monetary System

British Monetary System
QUESTION: Mr. Armstrong, you have said that the Pi cycle shows up everywhere in finance. I have looked at the charts you posted in the Roman Empire. Has this had a major impact in modern times aside from your Economic Confidence Model?
1964-demonetization
IBJYVS-M 1995 LowANSWER: Of course. Just look at Roosevelt’s 1934 confiscation of gold. Add 31.4 years and you get 1964, the last year silver appeared in the coinage. Add another 31.4 years and you come to 1995. That was the historic low in the dollar against the Japanese yen for example. Britain abandoned the gold standard in 1925. That was the last year they minted gold sovereigns. They resumed 31.4 years later – 1957.
IBEUUS-Y FOR 2014
This is but one derivative of time. There are over 40 tests the computer runs just on Pi alone with this forming just one model. This is why the Forecasting Arrays cannot be reversed engineered because there are 72 models all independent and this is the sum of all time models with numerous sub-models within each. The top row is the composite and is the most important reflecting turning points with the highest and lowest bars. The color changes to indicate direction blue rising pink declining. Panic Cycles are outside reversals or big moves in one direction (breakout/collapses) where as volatility is measure in three primary manners, internal (diff between high/ow of trading session), overnight (previous close to open), and general volatility (close to close).

UBER Court Battle shows how Drivers are Destroying their own Jobs

UBERThe fascinating aspect of the UBER case in the Ninth Circuit (California) is how driver’s greed cannot see that they are altering the entire basis of UBER and putting the company out of business. Drivers who sued UBER contend they areemployees and should be reimbursed for expenses, including gas and vehicle maintenance. The judge is allow them to actually alter the contract. Just unbelievable. The drivers currently pay those costs themselves and altering their status to be an employee has huge problems.
Once the court rules in the driver’s favor, as more-likely-than-not, UBER is finished and should just close its doors. Next will come benefits and if the court rules they are employees, guess what. In will come the Justice Department  and prosecute them for violating Obamacare for any company that has more than 25 “employees” owes huge taxes. Plus, if they are employees, UBER would have to match all their social security payments. Drivers themselves will be targeted by the IRS.
I would simply announce that UBER is closing down and the drivers are out of a job. If the court rules they are employees, the company will not even be able to declare bankruptcy on taxes. They will be royally screwed and the lawyers will most likey destroy another innovation. The lawyers are cleverly taking the idea of a part-time fill-in job to make extra money and using judges to declare they are effectively full time employees. This undermines the entire concept of UBER, but what the hell, the lawyers will get rich putting the company out of business and the drivers out of a job. Total insanity.

Stock Market v Currency Inflation

DAX - Currency Inflation
QUESTION:
Hello Marty
Great conference!
If the EM Debt implodes wouldnt the stock markets of those counties rise??
If the stocks from the EM markets did rise would they rise faster than the decline in their currency to the USD??
Thanks
CW
ANSWER: Yes. Normally we experience “currency inflation which is the rise in assets in proportion to the decline in the currency. If we look at the DAX on a yearly basis from the US Dollar perspective, you begin to see the impact of currency. Most people think that the DAX has outperformed everything, but that is purely in nominal terms for the DAX has risen in proportion nearly to the decline in the Euro.
The “international value” perspective of the DAX clearly shows that the major high was in 2000 with the Euro peak against the dollar. We see a major crash into 2003 and foreign investors fled Europe. As the Euro Crisis materialized, capital migrated to Germany from all over Europe as the hedge against the collapse of the Euro.
The DAX is rising because of the currency primarily, not because of a rosy future outlook for the European economy as a whole.
We will be issuing a worldwide Stock Market forecast after we get the year-end closings. We will also issue the forecast for currencies and the prospects for the dollar after the New Year. Conference Attendee get these reports as part of the seat price.

Clinton’s Gift to Bankers Made Student Loans the ONLY exception to Bankruptcy along side taxes

Bill-Hillary-shutterstock_13713790
QUESTION:  Dear Mr. Armstrong,
Since watching ‘The Forecaster’ I read your blog daily: thank you for all you have done to make sense out of the current phase of the economic cycle we are in.  Some call it the fourth turning or winter and it helps to see the bigger picture.
About the loans: how do we go about reversing this “…standard consumer fraud since Hillary is the one who supported the bankers in making student loans non-dischargeable in bankruptcy.”  How do we undo this new ruling?  Will we have to wait until the economy stops functioning, or is there a legal process to undo it.
Respectfully,
Laura
ANSWER: Excluding student loans from bankruptcy was the Clinton gift to the bankers. It was very detrimental for it encourages education to expand prices dramatically knowing there was now no practical check and balance. so it made education far worse.
The end-result will be a default, but it is unlikely that politicians will rise up in favor of students. The bankers pay for their elections so do not count on government for or by the people. That does not exist.
History says this will end very badly. We will see a rise in civil unrest and this can be the seed to a major political revolution down the road. The bankers converted student loans into debtor’s prison, which was outlawed because it was so abusive. There is no reasonable way out of this mess because the bankers bought Washington and if Clinton were to get in, forget it. She will NEVER admit the Clintons ever did anything wrong.

Hedge Funds Get It Wrong with Sovereign Loans & Puerto Rico

Carpetbaggers
The seriousness that is emerging in the hedge fund community is their tendency to become VULTURE FUNDS who look to lend money to sovereigns at excessively high rates of return that become no different than the carpetbaggers who sought to exploit the South following the Civil War. As an investor, you should stay away from hedge funds who think they can exploit various governments rather than invest. If they do not know how to invest to expand the economy, then they have no business handling anybody’s money to ruin the reputation of the industry. They will turn investors into the hated carpetbaggers and they risk turning society into the arms of authoritarian government justified in defaulting on such funds.
The hedge fund industry really began in 1985. The biggest hedge fund back then was $100 million. Unfortunately, too many hedge funds have lost their way and are becoming VULTURE FUNDS that risk the entire industry. We have to realize that 1985 was the start of the movement to create hedge funds for that was the year when everyone (myself included) returned all money to U.S. citizens and moved offshore. A normal pi cycle brings us to 2017, a year that is starting to look very bad. Hedge funds who have become VULTURE FUNDS will be defaulted upon by their clever antics of lending to governments. They falsely believe they have courts to back them up as they did in Argentina. What they fail to see is that they are playing with fire while running with scissors.
Puerto Rico is yet another example of hedge funds out of control. The cash-starved island managed to persuade some of the country’s biggest hedge funds to lend them more than $3 billion to keep the government afloat. They assumed they would get a great deal since they would be earning, in effect, a 20% return. Relying on the island’s Constitution, Puerto Rico was required to pay back its debt BEFORE almost any other bills, whether it was for employee salaries or retirees’ health care benefits. They assumed the law would be on their side and they could crush the island to extract a 20% annual return.
This sort of deal would have been criminal before 1980 when usury was capped below 10%; that was removed so Volcker could raise interest rates to stop an inflation he did not understand. Within just months of making this deal with the devil in the form of hedge funds, Puerto Rico ran out of money. The deal they cut with the hedge funds began to fall apart and has now set the stage for what is becoming an extraordinary political and financial fight over Puerto Rico’s future.
The question arising is whether Puerto Rico should be granted bankruptcy protection in a battle with VULTURE FUNDS who have done far more damage to further the image of the hated rich by supporting a return toward Marxism. Some of the people involved are the very people who lend money to Hillary and Bush, assuming they are buying the politicians as security for their exploits. The hedge funds have banned together and hired lobbyists to try to create laws to screw Puerto Rico for their gain. This is the very method they used against Argentina and Greece to exploit high-yielding returns in billions from the hardships they impose upon the people of those countries.
I highly advise anyone investing in these type of hedge funds to exit. This model will fail for the sovereign debt crisis will expand rapidly over the next two years and these funds will lose a fortune. They probably would love to see Donald Trump assassinated for his election would spell disaster for this business model when they cannot buy him.

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