Published on Jan 21, 2019
Armstrong Economics Blog/The Hunt for Taxes
Re-Posted Jan 22, 2019 by Martin Armstrong
QUESTION: Happy New Year;
Am I correct in noticing a global connection in the money supply, M1 & M2? You directed us to this long ago.
The global banks have found the turning point so this affects everything no? Even the US consumer is sliding to the cautious side of spending – fewer mortgages, cars, etc. The coffee shops are now worried about a market melt-down.
Martin, you’re starting to make my brain hurt. But it’s a good hurt.
ANSWER: Yes, but there is another influence — rising taxes. The economy declines when taxes rise for the simple reason that when politicians raise taxes, they are reducing the net disposable income. Simply put, if I give you $100 and then demand you give $90 back, but the year before I gave you $80, you can point to the fact that your income rose. However, you can only spend what you have left in your pocket. Women may have won the independence they were protesting for in the 1960s, but now they have lost the right to stay home and raise the kids. What use to take one income to support a family BEFORE the payroll tax now requires two. Once the government began income taxes (DIRECT TAXATION) economic growth rates gradually declined. We have been in a protracted decline since World War II. Tax revenue in France is 46% of GDP as people leave to invest elsewhere.
Armstrong Economics Blog/Foreign Exchange
Re-Posted Jan 22, 2019 by Martin Armstrong
While the dollar haters are constantly calling for its demise, when we look at the stats, we see a very different picture. Since 2005, the euro’s share of bank loans has collapsed from 30% of the world market to just 20%, while the Greenback has soared from 60% to now 70% of world debt transactions. I have warned that the Fed is being lobbied from every angle to stop raising rates because the number of dollar loans outside the USA is staggering.
The Greenback remains the number one currency in foreign exchange transactions. The euro has collapsed from 38% of the transactions back in 2001 to about 30%, and is about to break that level in 2019. The British pound is rising in market share, reaching 13%, running fourth behind the Japanese yen with the Swiss franc in 5th place
Armstrong Economics Blog/The Hunt for Taxes
Re-Posted Jan 22, 2019 by Martin Armstrong
QUESTION: Mr. Armstrong; So if I am correct, you have no problem with the inequality of wealth because you have it. Correct?
ANSWER: Let us look seriously at this issue. All of these people who talk about the disparity or inequality of wealth, claiming it is evil, completely fail to even understand the subject. The wealth of someone like Bill Gates and others who created companies like Henry Ford have been looked at or regarded as the super rich and thus evil. The problem boils down to assets v income. Pretend you bought a house in a modest area, say Atlantic City, and then the state passed a law that allowed casinos. Suddenly, your house goes from $100,000 to millions. So you are now “rich.” Since the land value rose, does that mean you should now pay more income taxes every year that may exceed your salary since you own a house that is worth more than average?
Those who talk about the “rich” look at their total asset values and not actual income. The value of someone is based upon their stock holding in a company they created. That is NOT cash. So should they be compelled to surrender that holding? If so, to whom? The government? So now Microsoft is seized by the government. If they sell it in small packages to the average person, the company will not be worth what it once was when the creator is driven out. Apple had to bring back Steve Jobs.
The “super rich” will pay taxes on their income every year but not on their assets, which fluctuate up and down. You may be surprised that most billionaires do not even have $1 million in a checking account. If we tax assets, then you will wipe out all small business that creates 70% of employment. How many farmers died and their heir had to sell off chunks of land to pay death taxes instead of continuing the family business?
You will hear about some billionaire who paid little taxes. That is simply the difference between asset values they did not sell and income. If you bought IBM in 2009, should you be taxed every year on its value that you held but did not sell? So you paid taxes one year when the market peaked, and the next year it is down 50%. You could have paid more in taxes in a bull market than the stock is worth when you sell it. That is the problem with real estate. Add up all the taxes and interest you pay and see if you really made any money bottom line. Most people lose in purchasing power terms.
House Intelligence Committee ranking member Devin Nunes appears on Fox News and focuses attention to the primary point most overlook. The Buzzfeed narrative on Michael Cohen is directly connected to the political endeavors of Democrats in congress.
Buzzfeed pushes a false conspiracy involving President Trump and Michael Cohen, HPSCI Chairman Adam Schiff then outlines his intent to “investigate” that claim through the use of the committee. Again, not meaning to be too repetitious, but this is coordinated. Nothing is happenstance. Resistance allies within congress are working in concert with resistance allies in media and Lawfare to create the baseline for the ‘impeachment’ agenda.
Speaker Pelosi publishes new rules for Democrat committees. The new rules tell Elijah Cummings to target the White House. The Thursday after the Superbowl, February 7th, Michael Cohen will testify publicly to Cummings’ House Oversight Committee. The script for the questions have already been written. The goal of the hearing will be to create the baseline for HPSCI (Schiff) and Judiciary (Nadler) to move to the next phase: a subpoena for Donald Trump Jr.
Everything is pre-planned, pre-scripted, and building to a specific focus point.
This is why Buzzfeed must hold the position *NOT* to retract their claim. The Pelosi, Cummings, Schiff and Nadler plan requires their media allies to stick to the script; there can be no modification.
Everything is planned.
Everything is sequential.
After the Cohen testimony; while Schiff begins to target DJT-Jr; Robert Mueller will move in with an interim report on the Russian investigation. Mid-February will be reserved for Schiff to target DJT-Jr; then, the timing for Rod Rosenstein/Robert Mueller is likely late February to expand…
The ultimate ‘impeachment’ ball will be handed to Judiciary Chairman Jerry Nadler after April 15th, 2019, per Pelosi rules and schedule.
The wild card is AG nominee William Barr.
Unlike Rod Rosenstein, Robert Mueller, Chris Wray and David Bowdich, William Barr doesn’t appear to be part of the compliant organization.
Specifically because Barr is not participating in the team agenda (doesn’t seem like it so far) he becomes a risk they may need to isolate and marginalize.
“If they go down the presidential harassment track, if they want go and harass the president and the administration, I think that would be the best thing that would happen to me. I’m a counter-puncher and I will hit them so hard they’d never been hit like that,” he said during a 36-minute Oval Office sitdown.
The commander-in-chief said he could declassify FISA warrant applications and other documents from Robert Mueller’s probe — and predicted the disclosure would expose the FBI, the Justice Department and the Clinton campaign as being in cahoots to set him up.
“I think that would help my campaign. If they want to play tough, I will do it. They will see how devastating those pages are.”
But Trump told The Post he wanted to save the documents until they were needed.
“It’s much more powerful if I do it then,” Trump said, “because if we had done it already, it would already be yesterday’s news.”
Trump revealed his playbook just as Democrats are set to take over House committees in January where they are poised to investigate his potential business conflicts of interests, tax returns, Russia dealings and more. (read more)
During his opening monologue today Tucker Carlson brilliantly outlined the madness that took over media surrounding a completely manufactured falsehood.
It was not a ‘rush-to-judgement’ decision by the media; it was not a mistake by media; it was an intentional and purposeful decision by the media to isolate, ridicule and marginalize their opposition.
The mainstream media are the enemy of We The People.
There is a generation of people new to the nuance of politics. There is also a generation of people familiar to things political, but new to the severe constructs within the industry.
All major events, even those that seem oddly organic (George Stephanopoulos asking Romney about constitutionality of birth control ’12), are highly scripted – while various elements within allied media await the triggering moments.
Like a political iceberg, two-thirds of the activity is below the surface; only one-third is visible. If we focus on the surface events, and not on the constructs under the surface, its easy to get caught up in the latest shiny thing.
Professional leftists plan everything.
This is all they do; this is all they know to do. From birth to maturity, within the machine, every moment of the day is spent planning optimum utilization. Every event is sequential.
This is not to say there are no grassroots elements within leftist designs. However, grassroots leftists (former Bernie Sanders supporters) are so blindly connected to the indoctrination that creates them, they cannot see the machinery.
Some people became completely awakened; others were just shocked.
Everyone watched as the republican machinery was exposed by Donald Trump playing the role of Toto.
However, on the leftist side of the UniParty, that awakening has not happened.
This is a key point to remember.
Despite candidate Bernie Sanders having the opportunity to reveal the left-side of the machine…. he didn’t.
Sanders acquiesced, took measure of benefit, ran the financial calculations and backed down. The smart Sanders supporters saw it all, jaw agape, and became a wandering tribe. The media will never admit it, but many awakened Democrats supported Donald Trump.
Remember, RULE #1: Everything the institutional left does is by design.
The DNC nominee [there could be two (think Rubio/Jeb)] for 2020 has been fully briefed; and that person knows not to step into the political thunderdome until after Nancy Pelosi executes the triggering event.
Any Democrat candidate who announces a run for the presidency prior to Adam Schiff, Elijah Cummings and Jerry Nadler’s plan, begins after April 15, 2019, is merely cannon-fodder. [Encouraged to run, but not part of the machine.]
Big money donors control the DNC machinery. The DNC planned candidate will announce their run after Jerry Nadler begins executing the ‘impeachment’ strategy. Any Democrat who announces prior to April 15th, is not going to be supported by the machine.
This UniParty approach is identical. The RNC (2015) and the DNC (2019), are two versions of the same Big Club instruction book.
A farce in sequence:
This was manufactured.
The manufacturing was/is also specifically purposeful.
Why the focus on religion with Second Lady, Karen Pence?
Why the focus on “Catholic” disparagement in the Covington fiasco?
1. “Power is not only what you have, but what the enemy thinks you have.” Power is derived from 2 main sources – money and people. “Have-Nots” must build power from flesh and blood.
2. “Never go outside the expertise of your people.” It results in confusion, fear and retreat. Feeling secure adds to the backbone of anyone.
3. “Whenever possible, go outside the expertise of the enemy.” Look for ways to increase insecurity, anxiety and uncertainty.
4. “Make the enemy live up to its own book of rules.” If the rule is that every letter gets a reply, send 30,000 letters. You can kill them with this because no one can possibly obey all of their own rules.
5. “Ridicule is man’s most potent weapon.” There is no defense. It’s irrational. It’s infuriating. It also works as a key pressure point to force the enemy into concessions.
6. “A good tactic is one your people enjoy.” They’ll keep doing it without urging and come back to do more. They’re doing their thing, and will even suggest better ones.
7. “A tactic that drags on too long becomes a drag.” Don’t become old news.
8. “Keep the pressure on. Never let up.” Keep trying new things to keep the opposition off balance. As the opposition masters one approach, hit them from the flank with something new.
9. “The threat is usually more terrifying than the thing itself.” Imagination and ego can dream up many more consequences than any activist.
10. “The major premise for tactics is the development of operations that will maintain a constant pressure upon the opposition.” It is this unceasing pressure that results in the reactions from the opposition that are essential for the success of the campaign.
11. “If you push a negative hard enough, it will push through and become a positive.” Violence from the other side can win the public to your side because the public sympathizes with the underdog.
12. “The price of a successful attack is a constructive alternative.” Never let the enemy score points because you’re caught without a solution to the problem.
13. “Pick the target, freeze it, personalize it, and polarize it.” Cut off the support network and isolate the target from sympathy. Go after people and not institutions; people hurt faster than institutions.
Earlier today President Donald Trump and Vice President Mike Pence visit the Martin Luther King Jr. memorial in Washington DC on the holiday honoring the civil rights leader.
[Proclamation] One hundred years after President Abraham Lincoln issued the Emancipation Proclamation, the great Reverend Dr. Martin Luther King, Jr., took to the steps of the Lincoln Memorial and shared his vision of an America lifted from the “quicksands of racial injustice to the solid rock of brotherhood.”
His extraordinary message that momentous day in August of 1963 stirred to action Americans of every race and creed, and it continues to reverberate in the hearts and minds of patriotic citizens across our great land. Today, as we pause to mark the life and legacy of Dr. Martin Luther King, Jr., we recommit ourselves to the advancement of equality and justice for all Americans, and to the full realization of his worthy dream.
In the United States of America, every citizen should have the opportunity to build a better and brighter future, and, as President, I am committed to expanding opportunity for all Americans. We have added more than 5 million new jobs to the economy over the past 2 years and unemployment rates for African Americans, Hispanic Americans, Asian Americans, and Americans without a high school degree have reached record lows.
Importantly, we have also worked tirelessly to reform our Nation’s criminal justice system, so that those who have been incarcerated and paid their debt to society are given a second chance at life. Last year, I was proud to sign into law the First Step Act, which will prepare inmates to successfully rejoin society and effect commonsense reforms to make our justice system fairer for all Americans. Through recidivism reduction programs that provide vocational training, education, and mental healthcare, non-violent offenders can have a chance at redemption and an opportunity to fulfill a better destiny.
We have also made great strides as a Nation, but we acknowledge that more work must be done for, in the words of Dr. King, “justice to roll down like waters and righteousness like a mighty stream.” United as one American family, we will not rest — and we will never be satisfied — until the promise of this great Nation is accessible to each American in each new generation. More than half a century after Dr. King’s March on Washington for Jobs and Freedom, our Nation is mindful of its past, and we look forward to the future with unwavering optimism, inspired by the legacy of Dr. King and informed by his wisdom and vision. May the memory of Dr. Martin Luther King, Jr., and the efforts we have made to fully effectuate his dream, remind us that faith and love unite us together as one great American family.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 21, 2019, as the Martin Luther King, Jr., Federal Holiday. On this day, I encourage all Americans to recommit themselves to Dr. King’s dream by engaging in acts of service to others, to their community, and to our Nation.
IN WITNESS WHEREOF, I have hereunto set my hand this eighteenth day of January, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.
Appearing on Good Morning America, the first term junior senator from California, Kamala Harris, announced her intention to run for President of the United States in 2020. (video here)
“I am running for president of the United States,” she said. “And I’m very excited about it.”
I’m sure she is.
Due to her cognitive incapacity to contrast reality against the manufactured media nonsense, Senator Harris will almost certainly be the left-wing media’s initial favorite. However, as noted within the Kavanaugh nomination hearings, Harris will push any media narrative regardless of how false and ridiculous it appears. She will most certainly do a big embarrassing stupid thing which will eliminate her from the race.
The 54-year-old senator has no original thoughts; has spent no time actually thinking about deeper policy issues; has zero substantive accomplishments within her background; and relies upon a wide circle of influence and branding agents to tell her which direction is best to achieve political gains. In short, she is a purposeful/useful idiot within a uniparty wing so structurally Machievellian she will be an easy mark to set-up by the machine.
As the AP notes: “[Harris] abandoned the formality of launching an exploratory committee, instead going all in on a presidential bid.” “She plans a formal campaign launch in Oakland on Jan. 27. The campaign will be based in Baltimore, with a second office in Oakland.”
Knowing it’s likely the ♦UniParty DNC is following a similar ♦UniParty RNC strategy, we can start to put the personal characteristics and political traits together and contrast them against 2016. Here’s the way it looks so far:
- Senator Ted Cruz was to 2016…. as Senator Elizabeth Warren is to 2020
- ♦Governor Jeb Bush was to 2016 as….
- Senator Marco Rubio was to 2016 as….
- Governor John Kasich was to 2016 as….
- Senator Lindsey Graham was to 2016 as….
- Governor Mike Huckabee was to 2016 as….
- Senator Rand Paul was to 2016…. as Congresswoman Tulsi Gabbard is to 2020
- Dr. Ben Carson was to 2016 as…
- Governor Chris Christie was to 2016 as…
- Governor Scott Walker was to 2016 as…
- Senator Rick Santorum was to 2016…. as Senator Sherrod Brown is to 2020
- Governor George Pataki was to 2016 as….
- Governor Rick Perry was to 2016…. as Senator Kamala Harris is to 2020
- Governor Bobby Jindal was to 2016…. as Julian Castro is to 2020
- Carly Fiorina was to 2016 as….
- Governor Jim Gilmore was to 2016 as Senator Kirsten Gillibrand is to 2020
Once we get a few more names on the DNC side, we can start to have fun with the celebrity squares graphics.