Hillary, Biden, Trump, and Boehner
Behind the curtain, more and more Democrats are urging Joe Biden to run for president, since the Inspector General suggests that Hillary be criminally investigated for deleting emails and taking hundreds of millions of dollars for her pretend charity from foreign governments while acting as Secretary of State. Our computer model warns that the Democrats will lose 2016. However, we also saw the potential for a split in the Republicans forming a Third party.
Trump is doing amazingly well because he is effectively anti-politician and that is the rise of the discontent we have seen for 2016. If he stays within the Republican camp, the machine will try to rig the game against him. This is Rand Paul’s fatal mistake. He is trying to stay within the fold. You will never achieve political reform from within. It has never occurred. Even Teddy Roosevelt split for his Progressive Party, embracing Marxist socialism all because he failed to understand how the economy was evolving.
While the news claims that 50% of the Republican Party is against Trump, that represents only the diehard professionals for they want to keep things as they are. If Trump actually stayed within the Republican Party, and becomes their candidate, he would win. The trouble is getting to that position of candidacy because Boehner will do whatever it takes to ensure that Trump does not get that position. Boehner is clearly the worse enemy of the Republican Party itself. Boehner has sided with Obama against his own party to keep Washington as Washington – the country club for the rulers of the world.
Gold: How High is High?
QUESTION:
Mr. Armstrong;
Your timing has been incredible. It is becoming clear that your forecasts are time and price which are separate. You have opened my eyes to a whole new way to observing the world. Do you think gold will still reach $5,000 after 2016?
Thanks so much
RB
ANSWER: Yes, but as I have stated before, $5,000 is the extreme maximum target – not the minimum. I do not see any possibility of $30,000 or some other outrageous forecast. Even reaching $5,000 will not be easy, and we have to be concerned that they could simply declare gold illegal as they did in 1934. Government would not necessarily travel door to door to confiscate gold. Instead, they would are likely to employ the same tactic as used the past – outlawing transactions in gold to avoid taxes, which might even include Bitcoin. That would set the stage for the confiscation of any asset that avoids taxation, a crime they now call money laundering with a sentence of up to 20 years in prison. This is all about them – not you. They will never print their way out for their benefactors would not lend them money under that scenario. Hedge funds demand Draconian measures that a deflationary, as they are doing to Puerto Rico and Argentina. They do not care that society will not function under austerity because they want their profits.
Such schemes against tax avoidance would not be merely a target against gold alone. It would be against anything taking place in a tax-exempt atmosphere. This posture would have the effect of shutting down gold futures, which would really screw the mines for they would be unable to hedge. Not to mention, if gold were illegal, who will buy the gold? So making gold illegal would result in a lot of problems. That does not put it past these people who may be trying some sort of scheme. However, this reflects the problems we face as government acts irrationally while trying to maintain control and power, rather than reform. This is the meltdown phase of governments for they cannot look at the long-term. There is no way out of this mess without a full-blown restructure, but that is a loss of power and they will never willingly do such a thing. They will kick and scream all the way.
Gold should test the $2300 level, which is about the 1980 high adjusted for inflation. That target would appear to be the minimum. That requires, of course, maintaining a free market. We will not have the precise target for a high until we achieve the final low and see the Reversals generated from that low. So anything else is speculation rather than a forecast. We still expect the low to form on the Benchmarks as of now.
Of course, the gold promoters will try to convince people that demand for physical gold will rise and that somehow will save the day. This is more of a sign that the low is not yet in place. What causes the rally from the low is its short-covering, NOT a rise in demand. Likewise, at the top, it is running out of fresh buyers who produce the high. You must exhaust the buyers to create the high and exhaust the shorts to create the low.
I still recommend REAL gold coins – not bullion bars or restrikes. Keep away from rare dates and stay with common grade U.S. $20 gold pieces or $10 and $5. You want coins that can at least be considered a collector’s item. Stay far away from high grade and rare dates. Also, be careful that the premium for newly minted gold coins, as well as silver, will rise as the price declines. This is people trying to make up for losses. Those premiums will decline at the top in prices and widen as prices decline.
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