Armstrong Economics Blog/Economics Re-Posted Jan 7, 2021 by Martin Armstrong
The word from DC is that they will do their best now to prevent Trump from ever running again and they will look to try to bring some criminal charge against him to disqualify him. Twitter has blocked his account and he has acknowledged he will leave the office. Pence, as expected, defended the swamp as did the courts by refusing to ever allow any evidence of fraud to be reviewed. That was in itself a confirmation that there was significant fraud or they would have heard the case and then declare it was frivolous. (see the latest evidence)
The sad part about this is the lack of mirrors in Washington. I have warned that the Republicans may split because they failed to understand this what they see as “Trumpism” existed long before Trump. He was just at the right place at the right time. Pence was a former member of Congress and there was no way anyone on the Hill would stab the Congress in the back. The Republicans think this will now be back to normal and they will also surrender the rights of the people as long as their personal pockets are filled. What we have watched was not the end of Trump, but the end of the Republic and this anti-swamp will now only grow as people begin to see the agenda that they had no idea was being decided in this election.
In a very strange way, these events have shown that Socrates was right. This week was the major event not the inauguration on the 20th. The politicians see this as the defeat of Trump and have ignored the fact that 80 million people voted for Trump and they can claim the fraud claims are baseless while refusing to answer anything. They have displayed to the entire world that there is no Due Process of Law – they pronounced Trump guilty and refused to allow a trial. This was a serious mistake for the question should have been decided and then the civil unrest would have been settled. Refusing to allow any court to review the claims and dismissing everything on procedure has doomed the country to the festering image of corruption which will inevitably lead to revolution. In that respect, they have just confirmed the forecast of Socrates and the West will yield to Asia post 2032.
Now we get back to markets at least until the rest of this political chaos unfolds from Europe. We must review all the markets to see how and where capital will move given these dramatic events in the US election. We will be moving toward digital currency and the rest of the West will now expect that Biden show cancels the currency to prevent people from hoarding dollars which is how they have been circumventing the European regulations. We will have to review the markets for they alone will map out the future for us. Will the capital flows flee to Asia? With the Dow still rise as a place capital will park for safety? Will banks be abandoned by the repudiation of debt which is why the politicians have been in league with Twitter, Google, and Facebook – the new digital banks going forward? (See IMF Blog).
There were people cheering the removal of Trump for they now expect that Biden will kill fossil fuels and renewable will be a new bull market. Of course, they are speaking out of their own positions and are clueless as to how you really end fossil fuels which are so integrated into everything. The taxes they will impose on the use of fossil fuels will help to ensure the further contraction of the economy into 2022. There is even talk that The Democrats will impose a $1,000 tax on every home and apartment for using heat and air condition.
What we are to expect will be revealed by the computer. There is a move to tax worldwide income forming in Europe and in the United States, we will see the drive to add a wealth tax which will be a property tax on everything you own on a global basis. If the politicians really represented the people, even Keynes had said to lower taxes to stimulate the economy and Trump’s cut in taxes produced the lowest unemployment ever post-Great Depression. But the political powers that be are really only interested in control and punishment.
So now it is time for Socrates to laid out the future. This is not a time for personal opinion and “I think” analysis. Einstein said he did not believe that God played dice with the Universe – i.e. nothing is random. It was interesting that Socrates picked this week rather than the inauguration. All we can do is try to apply the fundamentals to its forecast. The only way to approach the future from here is dispassionately and follow the capital flows.