The Peak in Government – Big Bang – 2015.75
Above is the front page of The New York Times on June 9, 2015. They are starting to talk about the problem in government. This is a total mess. Indeed, we are going to have to restructure everything from top to bottom. Meanwhile, those in Washington are too preoccupied with playing king of the mountain to notice that the island is sinking like Atlantis.
The Rumor Mill
We have received a number of e-mails, asking if we cut a deal with Alibaba to dominate the Chinese financial marketplace. I do not know who starts these rumors, but it is not true. Yes, in 1999 we were going to provide economic forecasting for the Chinese government and over 1,000 of its agencies. Yes, I was invited by the central bank in 1997 during the Asian Currency Crisis. However, our expansion into China back then was shutdown by the U.S. government. We were expanding into China in 1999 – as we do follow our own forecasts – which predicted in 1999 that China would overtake the U.S. within 25 years.
We were setting up in China in a big way back then. The head of HSBC at the time retired and joined Princeton in our London operation to head up China. However, we have no partners at this time and what we do is entirely self-funded by myself. I have said before, the markets were always like an ATM machine for me, so I never needed money.
I promised our clients that we will go public and allow everyone to participate so that the company can continue beyond me. We will probably go public in Hong Kong. We have not cut any deals with anyone as of yet.
Gold & Reality Going Forward
COMMENT:
Martin,
It has been a long time since ….. has sent out a blog post, but I got one today.
When Mr. …. probably first started slamming you for calling the 2011 gold top, his …. was 7.82. It is now 28 cents, and he is still touting gold as the only real asset and debt as only and always a liability and never money. He fails to see (admit?) that while debt is, indeed a liability to the debtor, it is interest bearing money to the bondholder, since it can be used as collateral.
Of course, the Big Bang will change this, but in the meantime, sovereign debt is the “money” where most surplus capital parks.
Thanks for not being “married” to any position, especially gold these past 4 years.
-DB
REPLY: It is a shame how some people marry an idea and go down with the ship rather than admitting what goes up also goes down. Gold is NOT money. Money is WHATEVER people believe and say it is, for it must be a widely accepted MEDIUM OF EXCHANGE – nothing more. To some it is Bitcoin. To others it is euros, dollars, yen, or yuan, and to others it is their Google Wallet. Money is whatever makes someone comfortable: there is NO right or WRONG.
Right now, gold is being liquidated by the ton. It will complete the bear cycle as laid out in the International Precious Metals Report. We will be issuing the next edition soon in preparation for the change in trend.
This idea of gold seems to fall into a religion. It comes across as someone saying your religion is nonsense and only mine is real. Money has been many things to many people, but it has not always been gold. Some people confuse gold with money, assuming that is the only means to escape government. This is not true, for anything tangible survives a currency collapse. This distinction falls only between movable and non-movable assets. In times of war, the non-movable assets, like real estate, do not survive. If the system goes all the way to a Mad Max event, then the only thing that will retain value is food.
There is no situation where you can say anything is the exception and only that item will survive. That is historically just not true.
Socrates and Cyber War
QUESTION: I attend Abundance 360 hosted by Peter Diamandis each year and he states that only the Pentagon, Homeland Security and NASA have Quantum computing abilities and that they can hack into any program on the planet with those abilities. With that said will Socrates be based on a Quantum platform?
ANSWER: Preventing attacks has been one of our greatest concerns when trying to provide access to Socrates. The only SAFE way to accomplish this monumental problem has been to create time locks, so to speak, and by no means will Socrates be connected online through the services. Only the results will upload to our servers but there will be no path directly to Socrates in order to prevent hackers.
So far, we have had over 7,000 attempts to break-in this year. This is a major issue and the platform that Socrates resides on will have to remain a secret. Some will try to steal him and others will try to prevent the public from accessing such info. This is a cyber war I never thought I would find myself in.
It is very clear that there are forces who seek to prevent this site from functioning and they can only be driven by those who want to prevent the public from gaining access to something other than opinion based forecasting. We just have to accept that there are indeed simply evil people who could care less about the world we live in as long as they get their’s. These people are like cancer cells out to destroy the very host in which they survive bringing about their own demise as well. They are too stupid and greedy to realize if the host dies, so do they.
“The Forecaster” Playing on European International Flights to USA
QUESTION:
Dear Martin,
Today I went by plane from Vienna to New York with Austrian Airlines. Also Austrian Airlines are showing “The Forecaster“. This is even more interesting because the Austrian cinemas (like in Switzerland) are not showing the film, therefore I suppose also the possibility of the VOD screening in Austria.
I took the possibility to see the movie a second time after I went to Munich where I saw the movie for the first time and heard the discussion with you afterwards. Unfortunately the discussion in Munich was rather short and was ended early by the moderator. I think Munich is too rich in contrast to Dresden and Berlin where the economic pain is already felt, so the economic outlook is not such a burning issue over there.
Additionally I have one question, perhaps if your time allows, you will be able to answer it on your daily blog. Many people to who I am talking about the forthcoming sovereign debt crisis are arguing that it cannot come so badly because many institutions like insurance companies, banks, pension funds etc. are legally obliged to have bonds in their portfolio, so they cannot sell. In my opinion they will suffer the most. Although these institutions are obliged to hold bonds, the major part has to be sold to the public; i.e. the market makes the price and institutions who have to hold bonds will get in real troubles due to the depreciation. Am I right?
Thank you so much for your fantastic work! Your are like a lighthouse in these times of troubles who can be trusted!
Kind regards,
MH
ANSWER: You are correct. We are actually working on some solutions for companies obligated to have government bonds. We believe we can help them out of the crisis with some fancy footwork.
However, the rest will suffer catastrophic failure. Behind the curtain there are already discussions going on about this problem. The markets will discount their portfolios rendering insurance and pension funds seriously insolvent. One solution will be for the central banks to buy the bonds back from the distressed bondholder if they qualify as a pension fund or insurance company. This will be refocusing the quantitative easing, redirecting it to select holders.
I have heard that “The Forecaster” has also shown on Lufthansa. The more we can make the general public aware of who really has no clothes, the greater the chance we have of avoiding a new totalitarian economic state. Someone has to standup against the loss of all liberties. If we do not, we will lose everything, for those in power only function in accordance with their own self-interest.
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