1.8 Million Protest in Spain Demanding Separation Like Scotland
This was the largest demonstration in the history of Barcelona with 1,8 million people showing up exceeding all previous records. Demonstrators were waving independence flags and wearing yellow-and-red shirts with the phrase “Now is the time” shouting“Independencia!” as they swarmed into the semiautonomous area in northeastern Spain that hails Barcelona as its capital. What is clear, we are seeing the beginning stages of what we have warned about – the rise of civil unrest that leaded to nations dividing or being overthrown in revolutions. What has taken place in Scotland is by no means going unnoticed.
“Independence, independence”, has been the new cry of the people today in Spain in the center of the Catalan capital. Two main roads that converge at a place filled over a distance of seven miles with people. Here, a “V” for “Victoria” (Victory) was formed. The amount of protesters is very impressive and the police have been gearing up for this because they know what is coming.
Catalonia has 7.6 million inhabitants and this is a very important region for Spain. Despite the economic crisis and an unemployment rate of more than 22 percent, Catalonia is around one fifth of total gross domestic product of the Southern European country is generated. Proponents of secession from Spain think an independent Catalonia would achieve a higher standard of living.
Queen Isabella I of Castile and King Ferdinand II of Aragon formed Spain for they were married on October 19th, 1469 when Isabella was eighteen years old and Ferdinand a year younger. Their marriage united both crowns under the same family since they were cousins and this marriage formally created one kingdom – Spain. Our timing models showed the beginning of tension in 2010.8 and these demand will start to really rise 2015.1. So far, everything is on point. Spain appears to be divide by 2036.
Ripples through Time
QUESTION: Marty, I believe I understand why you say everything is connected. Your call on Scotland links into your call for the Sterling to retest the par level. Then you look at your call on the Euro. Both of these currencies look like waterfall events as you have described. It is interesting how Obama’s former economist is worried about a strong dollar. Everything is really connected on a global scale. Truly brilliant work. That is why you were named hedge fund managed of the year and economist of the decade. The banks said you manipulated the world economy because they could not see that their manipulations have failed every time. Are you going to do a currency report as well as a world share market update? I for one could really use it right now.
See you at your next conference. When?
JE
ANSWER: Yes. If only we could get government to comprehend how everything is connected. Ironically, it is like the movie Matrix. Once you can see patterns, suddenly everything is revealed and the connections jump out at you. Personal opinions mean nothing since the MAJORITY must always be wrong for that is what makes the markets move. We have the US share market at record highs yet retail participation is at a historic low. The problem is standard analysis hate my guts because it reveals opinion is meaningless and politicians really cannot say vote for me and I will alter this or that. Everything is connected. The sanctions against Russia bankrupt farmers in Europe and alter the capacity to produce food long-term. Every action has a reaction that ripples through the system.
Yes, we are also preparing a Gold Stock, Currency, and World Share Market Report. Now that I have more staff to help and I have made the decision to proceed with going public etc, then it is time to take one step forward. I was hesitant for I was not sure what I wanted to do personally. I was torn between retiring or moving forward. So many people have offered to help because this technology will be extremely important for the future. I respect that position. This is not just about trading, this is about preserving our future as well.
My fear has been that war is coming and the economics of the system are so bad they cannot be sustained much longer, that there may be no place for my family going forward unless we make an effort to be there when it counts.
Political Intelligence or Lack There-Of – You Can’t Make Up This Stuff
There is a funny post on Facebook showing the real quality of politicians running around on Capital Hill. His concern, the island of Guam might tip-over if the US has too many people there. Where has all the intelligent people gone?
Should the US Give Up The Dollar as a Reserve Currency?
For the first time the position of the dollar as world reserve currency in the United States has come under criticism by Obama’s former chief economist, Jared Bernstein (2009-2011). Bernstein argues that the accumulation of dollar reserves abroad make the US currency too strong. This destroys jobs in the United States and weakens the economy. Retaining the dollar as the reserve currency is something the US can no longer afford is Bernstein’s argument.
Yet Bernstein’s argument falls flat for this is not even a decision that the US could create unilaterally. The dollar is the reserve currency not by decree, but by the sheer fact there is no alternative among nations. This is one problem that is causing the shift among central banks to enter into private sector investments as reserve status to diversify.
The ONLY way to replace the dollar as the reserve currency requires the establishment of a new world currency that will most likely take the form of an electronic currency among nations. My bet, the administrator will turn out to be the corrupt organization of the IMF. That would be a total disaster in my OPINION.
Nevertheless, even that step will not dethrone the dollar. The ONLY way to actually accomplish replacing the dollar is to adopt our SOLUTION. The debt must be eliminated for as long as we borrow, then that debt is what becomes the reserve, which just so happens to be denominated in dollars. So even if you created a single world reserve currency, you still would have the dollar as the de facto reserve currency as long as US debt exists. Under the current monetary system we need a place to park money – reserves.
Those who keep preaching the demise of the dollar based upon antiquated theories that money must be tangible are living in the old world where the Earth is still flat. The economy is far more dynamic and has long evolved beyond those primitive ideas. They cannot grasp that since the dollar is the reserve currency, the demand is global – not exclusively domestic. The Fed pumped a ton of new money into the system buying back 30 year bonds, but it failed to have an immediate impact because it was absorbed internationally where the deflation was the worst and still is in Europe with this deflationary trend hitting China and Russia. These notions and arguments of hyperinflation ignore the entire world and focus only on crude parochial concepts that died with the 19th century.
It is true that there are several faces to inflation. There can be a cost-push inflation sparked by shortages as we see in Palladium right now or food, but the type of inflation they tout as hyperinflation must arise out of currency-inflation where prices rise equally across the board due to the increase in the supply of money. However, this has unfoldedONLY when there is a collapse in the trust of government. Such incidents have taken place in German, Zimbabwe, and even Japan. In each instance, the people turn and use the currency of OTHER nations. There is no such alternative for the dollar – it is the core of the economy of the world that everyone needs to prosper from Europe to China.
The rise in the dollar will reduce economic activity and on that score Bernstein is correct. That is part of the cycle. However, the dollar MUST rise dramatically for you will not reach the point of no return until the pain threshold rises. The dollar will not simply be replaced with nothing happening.
This is part of the rise in the US share market. We have fools swearing the market is only pumped up by QE3 and as soon as the Fed ends the buying the market will crash. This again is a purely domestic view that illustrates the total lack of understanding of the global economy.
We may NOT get a correction in the US share market and could just blast out to the upside in a Phase Transition that sends panic running down the streets. The retail investor is not even in this market in size so where is the crash coming from?
Yet there is another aspect that Bernstein is not talking about – that is sovereignty that may be the real issue. Obama learned with Syria that China played Russia’s side and that put Obama in checkmate. Because of China’s dollar reserve, he lost control of politics just like a corporation must deal with a large voting block of stock. Immediately thereafter, Obama introduced the Fed tax-free bonds he pretended were to help pensioners, but in truth were to bring the debt home to regain sovereignty.
Things have changed. The future is in the hands of the past. But we are starting to hear the faint rumblings that are on the way to our conclusion forecast – a one world electronic currency is in the making. As Larry Summers floated the negative interest rates, Bernstein is floating the idea of removing the reserve status of the dollar paving the way for a one world currency.
Will the USA Also Break-up Into Regions?
Hadrian’s Wall Divides Scotland from England Since Roman Times
QUESTION: Mr. Armstrong; A friend of mine attended one of your Edinburgh conferences here in the nineties where he said they introduced you as a 7th generation Scotsman not as an American. He said you answered the question in 1997 and said that Scotland would seek independence from the UK starting in 2011. You also said the USA would eventually split because of the cultural differences between the regions and the driving force there would also be the social program burden. I assume this is still on schedule for 2032 and Scottish Independence will help break the pound. The SNP maintains they are pro EU and taxes for social programs. Will that also collapse in 2016?
Thanks for everything what you do. You are proving to us with each forecast there is a better way to run government if we stop trying to manipulate everything for political purposes.
RF
ANSWER: Yes, the forecasts I delivered there in Edinburgh remain unchanged. Keep in mind that whatever the SNP says today to win is not necessarily the final outcome. The split will not come until 2016 and then the world economy will be turning down. Without the USA holding the world up right now, there is not much politicians can do but muck up the entire world economy. The EU will turn against its citizens quite violently. What is at stake now is the jobs in Brussels. Kill the Euro and the justification for those jobs vanishes. They will defend those positions with your blood as historically thus has always been the choice. There was only one goal – federalize Europe. In the final straw, I do not think Scotland will surrender its sovereignty to Brussels when the economy turns down very hard.
As for the break-up of the USA, the computer has been warning for decades now that the 2016 election will see a sharp rise in third-party activity. The Republican Party may split again. We see the internal civil war with the Tea Party people. This is the core of the break-up for what lies behind that is culture and religion. Once the economy turns down, this will accelerate.
It appears that Hillary will be the Democratic candidate and that will merely solidify the Republic split. By 2032, the other side of this 51.6 year wave looks to be a starkly different world. The USA will split and China will become the Financial Capital of the World.