Monthly Archives: July 2016

Jul 22 2016

French Parliament – Nullified – Get Ready for More Civil Unrest


Armstrong Economics Blog

Re-Posted Jul 22, 2016 by Martin Armstrong

Valls_Toulouse PM

After months of controversy over the labor market reform that was designed to end excessive socialism in France, the French Government has bypassed the final vote in Parliament altogether. Given the resistance in his own camp, Hollande and the Prime Minister Manuel Valls in the National Assembly are using a special rule that allows them to effectively circumvent the democratic process. This trick is to simply assume that the law is considered adopted unless a motion of censure against the government is provided and successful. That is considered extremely unlikely. Therefore, this is providing cover for the politicians who can say they never voted for such a reform of labor laws.

This labor reform should loosen labor laws and give companies more flexibility, and in this manner, they are hoping companies can easily create new jobs. The classic opponents fear for workers’ rights will vanish and several unions have repeatedly protested. They cannot see that their one-sided labor monopoly is destroying jobs and economic growth. This is part of the crash and burn. Still, the labor unions will fight for themselves and refuse to see that they themselves are causing the economic decline.

The French unions are notorious for their communistic ways. They themselves chase companies out of France. For decades, when we advised clients looking to establish plants inside the Eurozone prior to 1998, we always warned them against France. After being threatened with closure back in 2014, workers at a French Goodyear Tire factory outright kidnapped two company executives and held them hostage; promising to hold them until “enormous amounts of money” were paid to them. You cannot imagine why anyone would even want to be assigned to run a foreign company in France these days.

Labor reform is desperately needed in France, but the unions are effectively communistic organizations who will generally act only in their self-interest, even if it is against the interests of the people. So, this will only fuel our models for civil unrest moving forward.

Jul 21 2016

Trump Effect: The EU, Turkey, NATO and Now Clinton Democrats Demand War…


We have been protecting the EU and Asia for the past 71 years since the end of WW II and paid the price in money and lives; and that was fine before we became broke with almost $20.0 Trillion in debt now. So what Trump is really saying is the once we are protecting need to pay for it and by that we mean 100% or we will need to pull out to save money that we no longer have.Would it be better if we had troops station all over, of course but where does the money come from to pay for it after Obama bankrupted the country?

Jul 21 2016

First Principles – by Treeper Cetera


It is actually very simple you live by the Golden Rule or you live like an animal thinking only of yourself; the choice is yours to make no one can make it for you.

Jul 21 2016

Party Politics – Insanity


Armstrong Economics Blog

Re-Posted Jul 21, 2016 by Martin Armstrong

Party Politics

QUESTION: Marty; I see these people ranting about Trump and how outraged they are. They seem to have no problem with the outrageous amount of lies Hillary has carried out or the fact that the bankers only donated to Hillary. They seem to be mindless and beyond rational claiming he is proposing that we build a wall along the “Mexican border and then has the audacity to suggest that Mexico will pay for it.” They they claim he advocates targeting family members of terrorists to combat ISIS, denigrates women, and is a “threat to American values” dismantling our social contract. They will never address Hillary’s lies or the fact the bankers donate to her not Trump. I am 35 and you are right. Those of us under 45 do not seem to be brainwashed as the older crowd. Is this what you mean by saying we are at a generational shift?

Thank you so much for your rational explanations.

Bob

ANSWER: Yes. There is a stark different in the thinking process where that line appears to be drawn at about 45. Of course, there are those of us over 45 (like myself) who have always been independent thinkers and reject the brainwashing that comes from party politics be it Republican or Democrat / Conservative/Labour.

People who espouse such one-sided nonsense are why we are in this state of crisis. Hillary is the poster-child for corrupt politicians. Even as First Lady, she was always lying and under some rock. The list of her lies are abundant. While Trump is infinitely the better choice on that score, the real question will be can Trump remain independent enough to make a difference? I serious doubt that he can actually reverse the damage that has been inflicted upon the American society for so many decades. The risk will be great that he will be assassinated for he stands against career politicians and the New York Bankers. So with that many enemies, it may be hard to survive.

Will Trump stay the course and hold Congress’ feet to the fire? Or will Trump just agree and sign whatever is put in front of him? We will be headed into a Great Monetary Crisis as early as 2018. I do think it would be better to have someone with some private sector understanding at the negotiation table on that one.

The only hope Trump offers is someone to stand up against politics as usual. Under Hillary, everything will be sold to the highest bidder and you can bet the New York bankers will rule the day. So I suppose it may end up as a choice between a softer landing with Trump and a very hard landing with Hillary.

Keep in mind that it will be the 2018 election where we may see more of a clean sweep of Congress, That is really what is necessary to turn things against. I would not expect that electing Trump would right all wrongs and it is not likely to prevent the crash and burn. If Hillary were to win, 2018 would be a major political revolution. If Trump were to win, perhaps his clash with the establishment send people to clean out Congress.

Jul 21 2016

Front-Running Now a Crime?


Armstrong Economics Blog

Re-Posted Jul 21, 2016 by Martin Armstrong

DOJ

The US Department of Justice has arrested Mark Johnson who was the global head of foreign exchange trading at HSBC as well as a former colleague, Stuart Scott. The two traders are accused by the US government of using inside information to profit from a $3.5bn currency deal. Of course, inside trading only is a crime in stocks – not commodities, futures, or currency. The US Department of Justice (DoJ) accuses these traders of “front-running” and opens Pandora’s Box..

The implication of this new aggressive tactic means in reality, Goldman Sachs can be shut down entirely with probably every other cash market maker in New York City. Anyone who now looks at a client’s position and adjusts the prices or trades ahead of an order in anticipation, is committing a crime according to this latest case allegations. This would easily be applied to any analyst who has positions in something and then tells people it will rise. Is that now front-running? Buying before you put out a recommendation? It may no longer be simply to say you have positions in that instrument. This too, under this new interpretation, would constitute “front running” which they are calling a criminal act. Obviously, if you want to tell the world what to do, you better not have a trading account. These interpretations can change a lot.

Meanwhile, the U.S. Department of Justice also filed lawsuits seeking to seize dozens of properties tied to Malaysian state fund 1Malaysia Development Berhad (1MDB), saying that over $3.5 billion was misappropriated from the institution. The lawsuits, filed in Los Angeles, seek to seize assets “involved in and traceable to an international conspiracy to launder money misappropriated from 1MDB”. The alleged offences were committed over a four-year period and involved multiple individuals, including Malaysian officials and their associates, who conspired to fraudulently divert billions of dollars from 1MDB.

The Malaysian lawsuits did not name the  Prime Minister Najib Razak, but they did name his step-son Riza Aziz. They also named Malaysian financier Low Taek Jho and the Abu Dhabi government officials Khadem al-Qubaisi and Mohamed Ahmed Badawy Al-Husseiny.

The DOJ probably has no clue that Goldman Sachs is deeply involved in this fund. They will not like where the breadcrumbs might lead.

In both of these cases, there is a great departure of business as usual. You can bet that the NY bankers will be pouring money into Hillary’s campaign at this point and may even start going to church on Sundays.

Jul 21 2016

Chris Christie Succinctly Explains What Just Happened To Ted Cruz…


Ted blew it he will never hold a national elected office after that performance, for everyone saw the real Ted. This is what happens when you have too much intellect and can’t control it.

Jul 20 2016

That Moment When Ted Cruz Doused Himself With Gasoline and Lit the Match On Stage (video)…


I did watch the entire convention tonight and Ted did embarrass himself; Trump gave him one last chance and he blew it.

Jul 20 2016

Nigel Farage Interview at the Republican National Convention (video)…


Nigel Farage fought for the BREXIT and knows what is happening in the EU so he is worth listening to. We need to follow the UK and abandon the EU so it doesn’t bring us down.

Jul 20 2016

Report: As President, Trump Would Purge Government of Obama Appointees…


The real work will come after Trump takes office as Ryan, if he is there as speaker, will block as much as he can to save the Uni-party.

Jul 20 2016

The Stop Trump Faction Republicans Try to Sabotage Trump Handing His Wife Bad Speech to Read


Armstrong Economic Blog

Re-Posted Jul 19, 2016 by Martin Armstrong

Melania - Michelle

Everyone knows these people are to just read from the teleprompter whatever they are “handed” and in a control setting. Trump himself has been more of a rouge when it comes to that. It seems that the Republicans took their shot and tried to make his wife look really bad and handed her a script that was obviously crafted to demonstrate she was reading it for the crowd and plagiarized the speech writer for Michelle Obama. Neither one spoke about anything personal. These speeches are written for them and they just read them. This was obviously a plot by the “establishment” to ensure Hillary wins to maintain the status quo. One has to wonder how low these people will really go. I am sure Mit Romey is enjoying himself. These career politicians in all parties around the world are desperate to shut the people down. They are losing their rich playground and everyone can “feel” it.