Comments from London
COMMENT: Hi Martin, I think the London Evening Standard story is clearly an April Fools joke. The story would not make sense unless the editor felt the readers would “get it.” So think it is relevant, funny, and is a testimony to the impact you and the movie are making in the general public…press on….!
Thanks for the work–
JB
Marty; There are no coincidences. The online version has the correct photo but the print version of the Evening Standard did not. That is curious having worked in the industry. This subject of banker bonuses is a very hot topic in London.
Cheers
CK
REPLY: Hey, it goes with the territory. A lot of emails are coming in on this issue. So I suppose it reflects that we are making more of an impact than meets the eye.
Doom & Gloom or Reality
If I said I was going to punch you in the face, would you just wait for that to happen or would you move and perhaps defend yourself? It is not Doom & Gloom to pay attention and understand how things work. You will not be able to warn someone who does not want to listen until they see it for themselves. In Europe, they see it and live it everywhere. In the States – we ain’t there yet. Guess what! That is also why gold is not yet ready for prime time. This is not about what you “feel” or see yet, this is about what the MAJORITY sees and feels.
Capitol Hill is hopeless right now. This is the extreme of the cycle like Hillary destroying all the evidence that anyone else would be in prison for. That is CRIMINAL CONTEMPT of court and Congress. She knows she can get away with it and is above the law. Not even Richard Nixon destroyed the tapes. What Hillary has done shows just how bad everything has become. This is the same as a bubble in the stock market. Politicians are completely out of control and they exempt themselves from the law. This is the hallmark of total corruption. This is the mark of the extreme high and this is like going into the Japanese bubble for December 1989.
So cheer up and thank God you can at least see the punch coming. It is now up to you to dodge that punch to survive while others will collapse into financial ruin. When I was a kid, one of my father’s friend had money during the Great Depression. He bought up most of the commercial real estate for pennies because people had to sell. In 30 years, he was the real estate tycoon in town.
Knowing when to play and knowing when to fold is understanding the game. You cannot hide. It is far better to understand and survive than to end up with the majority who must always be wrong.
London Evening Standard
You know sometimes you just have to wonder what is going on and are there really stupid mistakes or is there something else going on here since this is timed with the London debut of the film. In the London Evening Standard online, there seems to be the right Martin Armstrong who is a head-hunter so to speak who says bankers are worth their bonus. In the print edition, they have my picture. I suppose this is a mistake, but it seems strange I admit. I have been getting emails like crazy from London on this one. It ain’t me!
The Solution DVD
It will take 4 to 6 weeks, but we will produce the full version for those who attended and a 90 minute condensed version that will be available soon on Amazon for $29.95.
Those who want to view the full version online may do so. I have been asked to do one tailored to Europe. We are considering this for the coming tour. However, this cannot be confirmed as yet. Instead, we will leave the full version online for now.
Rand Paul moves to Repeal FATCA
Senator Rand Paul this month introduced a bill to repeal FATCA. This Foreign Account Tax Compliance Act is by far the single worst act in history and it is primarily the cause of setting in motion a global depression of untold proportions. If we do face a Dark Age, this will be the very last nail to seal the coffin on the global economy. This is one primary reason that we are seeing a global downturn outside the USA for it has been forcing Americans to return and stay home. As American capital has been withdrawing from the world economy, we see massive deflation outside the USA and the capital flows pointing back in. FATCA is anti-civilization for it seeks to destroy the natural synergy that propells the economic growth all because these politicians are incapable of any possible fiscal management. They are destroying the world economy and there is no place to hide. We will all suffer because of this insane legislation.
The Euro – A Serious Confirmation
The Euro closing for March below 10765 being a Double Monthly Bearish Reversal is rather ominous for the long-term. This confirms we will see the Euro collapse to new lows. This may have more to do with just interest rates. The “feeling” in Europe is far more pessimistic than in the USA. I have a 6 week tour coming up and still I have more and more requests to appear all over the place in Europe.
In the USA, this is still DOOM & GLOOM that the majority doesn’t want to listen to. They want to live the dream and pretend nothing is wrong. It is that VERY ATTITUDE which mandates the crash and burn. Their complacency is why corruption festers because those in government know they never have to answer. Look at Hillary. Now her server was wiped clean. Not even Richard Nixon pulled that one. She knows she will take shit for a few weeks and then it will blow over. So why not destroy all the evidence. She will get away with it and anyone else would go to jail for that is a crime called OBSTRUCTION OF JUSTICE. Charge her and MSNBC will call it partisan and a Republican plot to stop her. She wins hands down. MSNBC is so anti-American and pro-Marxist they further the corruption.
This is why we just have to crash and burn. We need to flush the system so a fresh readjustment takes place and the sun can shine once again. The majority just never pays attention so we have to go through this trial by fire perpetually it seems.
INFLATION will begin with Higher Interest Rates
QUESTION:
Dear Martin,
First of all, thanks for making the sense of the world for all the readers. Without you, as you yourself know well, 99.99% of us are lost !!!
When you say-
That is when inflation will appear when this become obvious we have a runaway train and central banks can do NOTHING.
Are you saying that inflation will appear as interest rates rise !? I believe they raise interest rates to control inflation not realizing that they themselves are stoking inflation!
If this is correct , how can increase in government debt, increase inflation to a tangible extent ? (I mean- what about the lack of liquidity and poor money velocity- reasons for the deflation).
Once again, thanks for all the knowledge. Without you, the worlds looks like an unsolvable puzzle !
KG
ANSWER: All these theories of inflation are wrong for several aspects. We have run correlations with the money supply and inflation and they do NOT hold up. Just look at QE1-3 and the lack of inflation. Gold has dropped nearly by 50% despite all the hype. We either face the truth or watch our personal wealth evaporate into nonsense.
The key is CONFIDENCE. When the MAJORITY of people BELIEVE that government is out of control, then they will panic and rush to buy private assets. This is actually the same mechanism that is behind a hyperinflation. Even during debasement in Rome, the money supply shrank for people hoarded the old coinage. As that contraction unfolds, it becomes crazy for government cannot meet its expenses and then has to increase the debasement to create more coins to compensate for what has disappeared from the money supply.
This is why Roosevelt also confiscated gold to stop the hoarding. We see hundreds of cities issuing their own money because of hoarding. This creates the DEFLATION. The money supply collapses rapidly. So QE1-3 did not produce inflation BECAUSEthe contraction was greater than any increase and the dollar being the reserve currency was absorbed globally as $7 trillion in emerging market debt was issued post-2007.
Interest rates will rise when the DEFLATION flips into INFLATION and that will be driven by CONFIDENCE. What is opposite of all theories today is that government is the biggest borrower in the system Then you have countries by law commanding pension funds must have even 80% in government bonds. Today, a rate increase to try to STOP inflation will fuel inflation because it will increase the demand from government and as demand rises people will move in the other direction. That is when inflation in private assets will appear. Central Banks have lost control and areINCAPABLE of stopping inflation. If they raise rates here in the States to fight a capital inflow they will read as inflation, they will spark even more inflation from the government spending side, but we must be concerned for they will FIRST raise taxes dramatically. If a Democrat wins, look out. Tax increases wil become the agenda and even Republicans like Boehner will agree,
The increase in government debt will have to be monetized – bought by the central banks because of no bid (i.e. Mainz). This is already appearing on and off including in Germany. The maturity will also shorten increasing the velocity of the debt as they will be unable to sell long-term. The private assets will rise only when people loseCONFIDENCE in government’s fiscal management.
While most people reading this will say come on, who trusts them now? The answer is still the majority. The velocity of money will then flip as people try to buy private assets.
It is NOT the banks who will control interest rates in this environment, this is how the free market will respond. The Fed can control only short-term rates up to a point. QE1-3 was all about trying to influence the long-term buying in bonds etc. That failed and only made our debt more responsive to short-term changes in rates. So it will now escalate far more rapidly that before. The marketplace will set even the short-term rates and that will be the NO BID.
The US Has Previously Done a Debt for Equity Swap
QUESTION: Do you think Congress would accept a debt for equity swap? I am not sure even their chief of staffs would understand this one.
HD
ANSWER: There is precedent for a debt-equity swap. That is actually the Hamiltonian Model. Alexander Hamilton proposed that the States who funded the Revolution should have their debts consolidated into the Federal Debt. But, Hamilton went one step further. Those who did not want to wait for the Continental Currency redemption (which never took place) could swap their currency for 100:1.
The key to Hamilton’s plan was that Congress agreed to redeem Continental Currency at $100 to $1 new US dollar bonds with an indefinite maturity. This was an effort to give some value to the worthless Continental currency and avoid an economic depression by wiping out the value of the currency held by the people. Many did not redeem their currency thanks to the Act of 1790 that they read as an ultimate guarantee of 1:1.
We can see even John Adams’ wife Abigail Adams bought US Treasury bonds. The Debt-Equity Swap has a lot of precedent. You cannot just wipe out debt cancelling it at the Fed. There is so much of the world economy hinging on government debt we cannot act rash or insane. This has to be carried out with great care.
We either prepare for this solution or there will be nothing left. They are not inclined to just print into oblivion – open your eyes. They are hunting money everywhere. Even Britain is now seizing money if you have cash. I myself was pulled over the last time I went to London. They wanted to see where I bought my ticket – was I visiting or returning.