Saturday, May 4, 2013

MARTIN ARMSTRONG'S BLOG POSTS TODAY


Model Forecasts – We are Getting There

YEARLY201320142015201620172018
TURNING POINTT-TT-T
DIR CHANGE---D--
PANIC CYCLE------
PATTERNDUUUUD
The computer models will be accessible very soon in time for the craziness this fall. This is an example of a brief table showing turning points, directional changes, panic cycles, and pattern recognition. You can see the computer was looking for a decline (D) in 2013 for gold with a reversal in trend in 2014 moving back up (U).
Of course the gold supporters who hate my guts as always whenever gold declines will love me when it turns back up. They seem to think if you close your eyes, do not look at your statements, then there is no loss. I suppose they believe that if a tree falls in the forest there is obviously no sound if nobody was there to hear it.

Socialism & Islamic Radicalism Are The Same Theory

Iran Revolution
The whole idea of “socialism” is based upon the same theory that led to the overthrow of the Shah and the birth of Islamic Radicalism in 1979. What is the connection? Both hold that the private sector cannot be trusted and that the state should manage the economy. In Iran, it became the religious clerics that should lead the government to create social justice confiscating the assets of the rich and nationalizing all resources.
In the West, government also maintains it should control the economy, intervene, manipulate, and lie to the public to eliminate the Business Cycle for the good of the people.  They advocate the same theory of confiscating the assets of the rich under the pretense of taxation and are now hunting down everyone they can while making it a virtual crime for others not to spy on their citizens and report what they have outside their economy.
Both forms of government are fascist in nature much like Hitler who tried to pretend you still own your property unlike Communism, but the state will tell you what to do with it. Both Islamic Radicalism and Socialism distrust the free markets and both were determined to seek “social justice” by the state taking control of the economy.
The collapse of Socialism in the West will take unfortunately until 2061 to fully complete while its destruction will be 90% complete by 2032. Even with the fall of Paganism and the rise of Christianity under Constantine I The Great, his sole reign began in 324AD with the fall of Licinius I (308-324AD). It was precisely 37 years later when Julian II the Apostate (361-364AD) attempted to restore Paganism cyclically right on schedule.
The peak in Marxism took place in 1989 when Communism began to fall. This was phase I. and that then led to the start of phase II,  17.2 years later beginning in 2007 – yes the extreme on bailing out New York. The crisis in 2008 was also 31.4 years from the start of the Islamic Revolution. Everything always links together.
The Iranian Islamic Revolution began in 1977 with the first protests coming in with the bottom of the Economic Confidence Model 1977.05 at that time. By the top of that model, the Revolution was complete starting in 1979. It took 2.15 years. So change does come faster than most suspect.  The first setback came 17.2 years later with the Iran and Libya Sanctions Act of 1996. The first major crisis in this movement will come in 2016 where we may see a major political crisis involving Iran.
Dominoes
So 2016 is also shaping up to be geopolitical as the war cycle turns up in 2014. Everything is a set of dominoes. One leads to the next with nothing ever as a singleton. Each becomes a cause that creates the next reaction. In this manner, history becomes the guide to the future for indeed Machiavelli was correct – history repeats because the passions of man never change. It matters not the form of government. They all act the same way – they only are interested in furthering their own survival. They are entities and will act like a cornered animal always and without exception.
Thrasymachus Quote

Why We Moved to Switzerland

German-Parliament
We firmly believe in privacy and liberty. Ideas even like Bitcoin count on the simple fact that there is some RULE OF LAW that will be respected. There is none. As the Sovereign Debt Crisis unfolds, they are really hunting down everything they can possibly get their hands on. Canada is now taking the position that transactions on Bitcoin are taxable. No matter what you do to comply with the LAW, if they think there is some spare change to get their hands on, forget the LAW. They didn’t mean it.
The USA is not alone in surpassing even Hitler’s pursuit for money by outlawing German citizens having any bank account outside the Germany. Well, Germany is also taking that position and you would think the Nazi’s have returned. This time instead of targeting the Jews who controlled the banks and shops to seize their money, this time it is everyone regardless of race, creed, or where you live.
Venetian-MouthOfTruth - Copy
The German parliament just passed with blinding speed a new law where the federal police can simply demand from any internet provider the name, address, passwords, and PIN codes of their clients as well as internet protocol addresses. There is no RULE OF LAW. You do not have to do anything. This is back to the days of Venice and its Mouth of TruthSuspicion is enough even from anonymous sources.
Leroy Neeman Fox Hunt
It is not just the USA but the EU and Britain are all hunting their own citizens. We moved our site, server, and models all to Switzerland to provide security for our clients worldwide. All these governments in the West are joining the fox hunt for every scrap of wealth they can confiscate to pay the bankers. There is no concept of where this leads. They are rapidly destroying everything that made us a free society and life worth living. Itestified before Congress in 1996 explaining that it was the RULE OF LAWthat made commerce and civilization viable. Lady Margaret Thatcher also saw that the British Empire succeeded BECAUSE it spread the RULE OF LAW and thereby civilized the world and that fostered her rise to the Financial Capital of the World. It was the RULE OF LAW that enabled the Roman Empire to expand extending citizenship to the nations it conquered. This is the most important cornerstone that they are destroying. Attacking that is the straw that breaks the back of every empire. You own your house – ONLY because there is a RULE OF LAW. Eliminate that, and you own nothing!!! Property ownership becomes mere possession.
Glass-Seagall
Why do you think after Salomon Brothers got caught manipulating the US Treasury auctions, Robert Rubin set out to takeover government and put the regulators in the back pocket of the NY Investment Banks? The entire scheme was to ELIMINATE the RULE OF LAW including Glass-Steagall, so they could manipulate markets and make money and in the process caused the national debts to soar with their bailouts, and set in motion the destruction of the entire financial system. The NY Investment banks were the key to the destruction of everything. There is no appetite on Capitol Hill to prosecute these guys BECAUSE they count on them for funding. Without term limits and eliminating private donation for political elections, there will be no hope of a soft landing. There is an old saying that reflects the corruption of New York and why your future came to an end:
He who controls the gold makes the rules
Commodus-Hercules
Edward Gibbon wrote of the Emperor Commodus (180-192AD) who also was desperate for money in his 1776 Decline and Fall of the Roman Empire. Commodus made many technical laws and each established a
distinction of every kind soon became criminal. The possession of wealth stimulated the diligence of the informers; rigid virtue implied a tacit censure of the irregularities of Commodus; important services implied a dangerous superiority of merit; and the friendship of the father always insured the aversion of the son. Suspicion was equivalent to proof; trial to condemnation. The execution of a considerable senator was attended with the death of all who might lament or revenge his fate; and when Commodus had once tasted human blood, he became incapable of pity or remorse
(Book 1, Chapter 4).

Paul Craig Roberts: You Are The Hope

http://www.paulcraigroberts.org/


Friday, May 3, 2013

Elliott's Singer On Bernanke Destroying "The Value Of Money" And "Uprooting The Basic Stability Of Society"

http://www.zerohedge.com/news/2013-05-03/elliotts-singer-bernanke-destroying-value-money-and-uprooting-basic-stability-societ

"We believe that the global central bankers, led by the Fed as “thought leader,” have no idea how much pain the world’s economy may endure when they begin the still-undetermined and never-before attempted process of ending this gigantic experimental policy. If they follow the paths of the worst central banks in history, they will adopt the “tiger by the tail” approach (keep printing even as inflation accelerates) and ultimately destroy the value of money and savings while uprooting the basic stability of their societies....  At some stage, central banks inevitably realize, regardless of whether they admit the catastrophic nature of their own failings, that the cessation of money-printing will cause an instant depression. Even though at that point the cessation of money-printing may be the only action capable of saving society, that becomes a secondary consideration compared to the desire to avoid immediate pain and blame."

The Monarchs Of Money

http://www.zerohedge.com/news/2013-05-03/monarchs-money

The world's central banks have printed unimaginable amounts of money in recent years - "these guys are really more powerful than the government." Neil Macdonald explores what this means for the global economy and for your financial well-being - "can you imagine if the American public knew there was this 'club' that met secretly in Switzerland and made decisions that dramatically affected their lives, but we're not going to tell you about it because it's too complicated." This brief documentary should open a few eyes to the reality behind the world's most powerful (and real) cabal.

MARTIN ARMSTRONG'S LATEST BLOG POSTS


Rising Third Party & How It is All Connected

PRESELEC-3
Back in 1997, we warned that our computer model was forecasting that by 2016, we would see a tremendous rise in third party activity. This was our forecast back then and most said what is your computer drinking over there? The blue line in this chart showed the historical 3rd party movement and how it correlates to economic crisis. But this was not limited to the USA. I stood up in Tokyo in 1998 and warned the LDP would lose, which was shocking since they never lost post-World War II. When they lost –  our Japanese clients were in awe.
Lady Margaret Thatcher came and spoke at our conference in Princeton in 1996, which was in reality an tremendous endorsement of our cyclical methodology. I named the piece “It’s Just Time” after her response when she predicted that the conservatives would lose long before Tony Blair emerged. She had an instinctive sense of cycles as did Winston Churchill. The politicians who were good, had a “feel” for the trend and understood the cycles of politics. When I was moving back and forth between Dick Army and Bill Archer in Washington over Tax Reform trying to create a compromise between the Flat Tax and the Retail Sales Tax camps, Dick Army said to me with his boots up on the desk and smoking in his office, when the Democrats got back in, they would install both an income and sales taxa. Indeed, Obama is now trying to do just that. Dick also understood the cycles of change.
The rising 3rd Party movement is global. In Europe they are protesting against Brussels they are characterizing as the “king”. In Cyprus there is a rising 3rd party movement. But in Britain, there has been a huge upset. A rising 3rd Party has gained 25% of the council seats today. This is showing that as we head into the eye of the storm, this is going to be anything but politics as usual. This was a HUGE day for Nigel Farage.
PALM-VAL
Some people are just so desperate that we will be wrong on gold they remain blind to how everything fits together and pretend our computer somehow is prone to “human” error. The global economy is like a delicate forest with billions of species of plants and animals all interlinked and working together. Remove one, and you set off a chain reaction because there is another species whose entire survival depended upon it, In turn, other lifeforms will be affected down the food chain. The question presented:
“Your most recent blog post you stated “opinion is prone to human error” as humans are prone to error in general.  That being the case, isn’t the programming of any computer (program) prone to possible error, i.e. Y2K was going to end the world the “experts” told us, and it never did.  I’m not suggesting your computer program is flawed with error, quite the contrary, your computers track record speaks for itself.  But how would you answer those critics of yours that suggest your program could be “prone to human error?”
Y2K was not human error – it was human hype as always. No expert that I know of contemplated any such end of the world nonsense. You simply changed the clock in your computer and you could see it would not fail. This was like the Maya event that they twisted into amazing fabrication. Human error is emerges from biased opinion. The entire object of creating a fully functioning Artificial Intelligence system that no one has been able to come even close to yet is to remain human error. I designed the system with NO HUMAN RULES, assumptions, or biases just how to analyze never what. It created its own experience and knowledge base teaching me by correlating absolutely everything and that included war as well as politics. It has surpassed anything any human can possible do.
Humans try to forecast a single market in total isolation. That is wrong, absurd, and cannot be done. For gold to rally for 13 years as the computer also projected, it incorporated the rise in 3rd Party Movement as well. We came out in 1997 and forecast that oil would rise from $10 to $100 going into 2007. That forecast was covered by Mark Pitman at Bloomberg News. Forecasting that the US share market would make new highs again starting after 2011 as covered by Barrons, was also part of the same forecast. All of these things and much more, including our warnings on the future collapse of the Euro in 1997 before it hit the ground running, are all connected. Like the example of the forest, they are interlinked and one will not take place without the other.
So sorry. To have been wrong on gold meant there would be no future bull market because there would be no sovereign debt crisis, collapse in the economic structure of Europe, and the Dow would not have made new highs because of capital inflows. It is all connected. We live in a dynamic would – not linear! There is a TIME and PLACE for everything!

What Do Central Bankers Really Look AT

QUESTION: Can you please comment on the following. I hear incessant talk about the market being supported by Bernanke.  The Fed gets the credit for the market going up.  (And when it goes down for not doing enough).    How much truth is there in this mantra?   How much is the Fed actually affecting stock prices by what they’re doing?    It is very confusing to hear day after day CNBC commentators point to the fed as the cause for seemingly everything good and bad in the markets and economy.
ANSWER: Absolute nonsense! The Fed is worried about the rise in the stock market for they are as confused as the talking heads. The talking head’s problem is this constant myopic view of the domestic economy as if everything begins and ends here. We are working urgently to get a new book on the globalization of the economy out ASAP that illustrates this problem that plagues not just the TV comments, but the economics taught in schools. The reason why increasing money supply by the Fed FAILED to produce inflation is the complete failure to comprehend the global economy. It is the global capital flows involving debt and capital investment that drives all world share markets and currency values. The Fed does NOTeven control the money supply! International capital does!!!!
1927-BankersMeeting1927 Central Bank Secret Meeting
There were secret meetings between central banks as early as 1927 that tried to deflect the capital flows pouring into the USA back to Europe. The central bankers of the day are pictured here and their efforts to manipulate the world economy utterly failed and caused capital to then really shift to the USA creating the bubble in 1929. They are not in charge of anything – they aggravate the capital flows. This is the same problem right now and the talking heads are clueless about capital flows and their importance.
ft-1998

It was our seminar in London where the London Financial Times got in and reported on the front page that we warned Russia was about to collapse because we saw $100 billion in capital inflows with $150 billion in outflows. That forecast was correct and that sparked the collapse of Long-Term Capital Management in September 1998. They say if God did not exist man would create him just so he could sleep at night. We definitely view Washington the same – nobody knows what they are doing, but someone down there must, so the talking heads attribute everything to them. Sorry – the economy is on autopilot and this is just gibberish. Follow the money!
If two Americans are involved and one sells Rockefeller Center to the other for $3 billion, there is no impact upon the domestic money supply assuming both were dealing in cash or the debt was the same. However, if the Japanese buy Rockefeller Center, they have to import cash into the domestic economy and that expands the money supply. The Fed had nothing to do with it.
The US share market rises when there is a geopolitical or economic risk in Europe. In 1914, they shut the US share market for 4 months on fear there would be a massive selling panic on the outbreak of war in Europe. When the market opened, it rallied to the shock of the pundits. WHY? With Europe going to war, don’t you think you might want to move your wealth out of that place?
GC-HOLDS - Copy (2)
The USA was broke in 1896. J.P. Morgan had to lend the US Treasury gold because it was near collapse. By the end of World War I, the US was the financial capital of the world. By the end of World War II, the US had 76% of the world gold reserves. Capital all flowed to the USA for fear of Europe concentrating in the dollar, which is why it became the reserve currency. The press did not understand the globalization back then either and never will. They are journalists – not analysts. It is simply above their heads. What I have learned comes from our clients – not books and theory. You certainly would not go to a 5 year old for driving lessons in a car. If you have NOexperience, forget it. Only live experience opens your mind to see the subtleties that are the key. It is the same with trading. Someone who has never traded has no clue about the craft.
Everyone knew we advised the the majority of central banks after the 1987 Crash. A friend who did the intervention for the Bank of Canada came to my seminar in Toronto and brought about 15 members. Institutions began to ask me what the central banks were looking at. I would give the answer, and they would turn to see their reaction. When I was finished I said to my friend Pete from the central bank I hope I did not say anything that offended them. He said it was best speech he ever heard and wished he could speak like that to tell these people they did not look at half the nonsense they talk about. The central banks actually had phone lines connecting them. When I was there one day the phone rang. They refused to answer because they did not want to intervene. It just is not anything like what people think. When I would write to whomever, they responded because they knew we were serious.

Tiny Device Will Detect Domestic Drones

http://www.usnews.com/news/articles/2013/05/01/tiny-device-will-detect-domestic-drones

Worried about an unmanned plane looking into your window? This small detector could alert you when robot planes buzz past

Middle-Aged Suicide Rate Surges

http://www.zerohedge.com/news/2013-05-03/middle-aged-suicide-rate-surges

The suicide rate among middle-aged Americans climbed a startling 28% in the last decade as the rates in younger and older people held steady. This period dominated by two stock market crashes, a real-estate crash, and a hyper-repressive Fed saw a stunning 40% surge in the suicide rate among 35-64 year old white men and women (with non-Caucasian rates steady). 39 out of 50 states registered a statistically significant increase in suicide rates among the middle-aged.

Thursday, May 2, 2013

JPMorgan Warned Over ‘Manipulative Schemes’ in Energy Markets

The New York Times BREAKING NEWS ALERTNYTimes.com | Video
EXCLUSIVE Thursday, May 2, 2013 10:01 PM EDT
Government investigators have found that JPMorgan Chase devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” and that one of its most senior executives gave “false and misleading statements” under oath.
The findings appear in a confidential government document, reviewed by The New York Times, that was sent to the bank in March, warning of a potential crackdown by the regulator of the nation’s energy markets.
The possible action comes amid showdowns with other agencies. One of the bank’s chief regulators, the Office of the Comptroller of the Currency, is weighing new enforcement actions against JPMorgan over the way the bank collected credit card debt and its possible failure to alert authorities to suspicions about Bernard L. Madoff, according to people who were not authorized to discuss the cases publicly.

READ MORE »

http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/?emc=na