Armstrong Economics Blog/Q&A Re-Posted Feb 1, 2021 by Martin Armstrong
COMMENT #1: Nobody is suggesting that we should “destroy all capital”. Right wing nonsense. We all know that communism is unsustainable due to its inherent lack of economic motivation for anyone to be productive or creative. Similarly, pure capitalism ultimately self destructs without the balance of some collective investment in society (i.e. socialism), as all of the wealth eventually ends up in the hands of a selective few and the rest of the population sinks into poverty fighting over scraps. Your right wing dog-eat-dog, winner-takes-all economic philosophy is hurting the poor en masse, regardless of what you may have done for a handful of poor people in your lifetime.
REPLY: Republics die because of corruption. It is easy to point the finger at the rich which is standard, and my definition of the rich is really the upper-middle-class. The super-rich like the Gates, Soros, etc, I believe are very dangerous because in a republic they get to buy the government. This is what we are seeing with Biden. He is doing everything by executive order denying even a representative form of government that at least pretends those in Congress vote on our behalf.
The wealth ends up in the 1% as they say simply because that is measured by assets rather than wages. I worked on Capitol Hill trying to transform Social Security into a wealth fund. The Democrats would not support the idea of claiming stocks are “risky” and then claiming that when they took the majority they wanted to allocate to fund managers they picked. Just look at Calpers in California. The politicians directed them to invest in “green” projects for political purposes and they lost money.
I am against income taxes or property taxes and taxes are only necessary at the state and local level and they should be INDIRECT like a sales tax as the Framers laid out until the Marxists amended the Constitution in 1913. So now what began as a tax they swore was only for the rich, suddenly transformed into the payroll tax and today most people pay more in social security taxes than income taxes and they wait for their refund checks so as a nation, we are borrowing from the poor and never pay them interest, and then we force them to buy only government bonds denying them the very same right to become rich from investment which is the only way possible. And now the Democrats who profess such hatred for the rich want to eliminate capital gains so when the poor finally make money on selling their home, they want to make that normal income.
Always pointing the finger at the rich is very clever for it prevent people from looking at the real problem – the government.
QUESTION #2: Hi.
Do you think the bigtech supported Biden today and bought a lot of own equities to make positive indexes?
REPLY: The BigTech rallied mainly because this has been a global coup and they are very much a part of that. This is Schwab’s idea of the Fourth Industrial Revolution and the BigTech have allowed their importance to go to their heads. They have crossed the line and really should be broken up. They have become a danger to civilization and our freedom.
QUESTION #3: The main reason why people buy valuable collections is that they think
that money will lose all its value? Do you think that’s gonna happen?
ANSWER #3: Yes. We are in the final conclusion of this private wave into 2032. Politics is disintegrating. There will be no return to civility. Biden has embarked on absolute tyranny. Even the New York Times has come out criticizing the use of executive orders. It is the staff that writes these decrees and they give Biden an overview. This is your far-left going completely crazy. Besides overruling everything that Trump did just because it was Trump, they are implementing Klaus Schwab’s Great Reset at lightning speed. Tangible assets will be the only means of survival for this is outright political war by a sheer dictatorship. It is wrong! These issues should be presented to Congress and they should be debated on. There are even conservative Democrats who are expressing concern behind the curtain that they too are out of the loop.
COMMENT #4: Slovakia continues to do the de facto forced “testing” every few weeks. As before, those without a negative test certificate (or a vaccine certificate – this has now been added) cannot go to work or engage in any business activity, cannot go to shops or any other public places, cannot go out for a walk (even in the woods with no people), etc. They’ve been doing this since October. Seems obvious this is the model other countries will also use eventually.
REPLY #4: This brings to mind the old saying: The king is dead, long live the king! Because of the communist culture which prevailed behind the Iron Curtain, the leaders of today think that authoritarianism is normal. Hence, they become what they only claimed to despise. We have conquered the enemy. We occupy their hill. We have become the enemy!
QUESTION #5: Dear Martin. Greetings..
Seems like you are the Advisor the Chinese Authorities are talking about “They said that while supporting employment was key in the short run, reforms to help fatten ordinary people’s wallets were needed to boost domestic spending – a priority for President Xi Jinping’s “dual circulation” strategy to cut China’s reliance on overseas markets. The advisers are influential in Beijing, and their recommendations are likely to be considered. Calls for deepening reforms to spur domestic consumption have been rising since Xi unveiled the dual circulation strategy last year.”
Being from India, I hope, our Govt should start listening to you. But our Govt is more than happy to play a Yes Sir to Bill Gates & Co.
Wish you health & happiness.
ANSWER #5: I am by no means a fan of Gates. He thinks nothing beyond climate and population. He never understood history that the birthrate declines with economic progress. All agrarian societies need higher birth rates to survive. Then he fails to understand that war comes when people lose their economic means. World War III did not materialize as long as everyone was fat and happy. His lockdowns to reduce CO2 have undermined the world economy which increases the risk of war. He is an insane arrogant despot.
COMMENT #6: Regarding covid in the state of Jalisco Mexico posted in the Guadalajara reporter. Jan 16-22, 2021
FREE BURIALS, CREMATIONS, OXYGEN
In a virtual session held this week, the Jalisco State Congress approved the full reimbursement of burial and cremation costs for families who have lost relatives as a result of Covid-19 infection.
Word has it, families are agreeing to “death due to covid” signed on the death certificate so the funeral is paid for.
REPLY #6: Whenever you create a financial incentive, it will work. They will lie to get the free burial just as hospitals call it COVID because the government will then pay 100% of the bill.
COMMENT #7: You have gone toe-to-toe with the bankers. You should be the leader the Reddit generation needs.
REPLY #7: The time is not right. Like communism, the bankers will fall of their own self-interest. Nevertheless, the game is so corrupt you cannot imagine. The SEC and CFTC as well as the courts are all bought and paid for. Even the former SEC chair Mary Jo White who I know personally, did not deny that there is a revolving door at the SEC to the bankers. She claimed it led to better enforcement. Let me put it this way. My case was supposed to be $1 billion. When they realized the notes were in Japanese yen and if redeemed in full, that would have been about $600 million because the dollar rallied against the yen. To hide a $400 million loss, they handed the note to HSBC to redeem rather than force HSBC to return the money they stole. If the receivership worked according to law, the banks should have returned the money but then the receivership would have had a $400 million profit. So handing the notes to the bank transferred the profit to the banker.
You cannot win. The courts are too corrupt to ever actually do what the law says. Reddit crowd have false hopes. Nothing they have recommended was against the trend. This makes people think they have won. When the correct comes and they start to lose from every trade, they will blame the bankers instead of looking at what they are really doing.