Category China Digital Yuan
China & the Future
Armstrong Economics Blog/Armstrong Economics 101
Posted Dec 1, 2022 by Martin Armstrong
COMMENT: Hello Marty !!
It looks like the ” China as a parking lot for cash has already begun. FXI going to the moon of late in spite of Xi & Co. cutting off their own economic foot to hide behind their troubles and blame it on the darn protestors to the folly, by golly. One thing I’ve learned over the years from you is that when one (You) declares things are gonna get nuts (from a guy who has seen way more then his share), don’t blink when human events exceed the retardation level of insanity (NOW!)
Thank You for your take on reality and truth, it is setting many free, and these are those who will pick up the pieces once the warring factions beat each other silly and dead.
Very Best Martin, much respect!
REPLY: I know a lot of people do not like our forecast that post-2032 China will emerge as the Financial Capitol of the World replacing the United States. Some argue against me citing the protests and the form of government. Let me state as clearly as I possibly can. DO NOT assume that the current government in China will survive any more than the United States or Europe.
The last major political collapse was the birth of the United States, the French Revolution, and the surrender of the supreme power of the monarch in Britain and elsewhere. It was the fall of the monarchy and the world turned to a Republic.
I would like to see the world turn to reach democracy where We the People actually decide to go to war rather than these corrupt politicians who take bribes.
The fall of the United States is underway. The nation has become polarized and next will come separatist movements just as in the American Civil War which took place 86 years into the cycle (10 * 8.6) from 1775/6.
All of this talk of a One World Government will end war is absurd. The former President of France stood before the EU Parliament and stated that was the same idea that led to the creation of the EU. One European government would prevent European war. Now they are trying to accomplish this using the United Nations.
Obviously, these people lack any understanding of history. Yes, Rome was one government and it lasted overall for 1,000 years. However, it had many civil wars and it even split into three empires during the 3rd Century.
Perhaps you will recall after the assassination of Julius Caesar in 44BC, Mark Antony and Octavian (Augustus) were together and waged civil war against Brutus and others. Then they too split and waged yet another civil war with Mark Antony and Cleopatra v Octavian and his general Agrippa.
Augustus became the first emperor in 27BC and then the Julio Claudian Dynasty lasted until the death of Nero in 68AD. Then another civil war unfolded. The empire then survived until the assassination of Commodus in 192AD launching yet another civil war that lasted 4.4 years until the rise of Septimius Severus. The death of his son Caracalla in 217AD sparked another battle for the throne for 2 years.
Obviously, one government doe NOT guarantees peace. The utopian nonsense these people are talking about is all a thirst for raw power and even the end of a Republican form of government where we the people will have no right to vote at all. Schwab and his WEF make it sound this is all for your benefit rather than those like Schwab who just want to control everything and everyone.
So when I say China will become the next Financial Capital of the World, make no assumptions. What we think is the solid world of politics as it is today will be no more on a global scale.
Chinese Protestors Escape Facial Recognition with Lasers
Armstrong Economics Blog/China Re-Posted Aug 25, 2022 by Martin Armstrong
Welcome to the new world. Protestors in China have cleverly found a way to avoid police facial recognition software by pointing an array of lasers at the police. China has perhaps the most extensive facial recognition of any country. SenseNets, a facial recognitional company in Shenzhen, experienced an internal leak in early 2019. The database contained detailed information on over 2.5 million people, including their addresses, IDs, birthdays, and their movement around the country. Over 6.8 million locations were revealed during the leak, leaving everyone in the software completely exposed to hackers who could determine their exact location.
The government is not merely tracking the movement of criminals as everyone will eventually become part of a facial recognition database. China took measures a step further in 2020 by issuing each individual a social credit score that rates how well an individual adheres to the government. We are not free when the government can restrict our movements and assign us a score based on their personal criteria. Facial recognition software is extremely dangerous. Hackers made little effort to access SenseNets files, and in the wrong hands, anyone could be hunted down.
Although they’re less upfront about their plans, other countries plan to follow suit. Canada is rolling out its Digital Identification program, and the World Economic Forum has been advocating for advanced tracking measures. Expect additional tracking software to become commonplace throughout the modern world.
China Banking Crisis & the Unsuspecting World
Armstrong Economics Blog/Interest Rates Re-Posted Jul 22, 2022 by Martin Armstrong
While authorities have accused a private financial group of misleading members of the public with promises of high-return wealth management products, what is not being said publicly is the fact that the rise in the dollar is a significant factor undermining emerging markets in which China participated. The Chinese government warned the provinces and private companies NOT to borrow dollars. Despite the fact that the Chinese government is portrayed as COMMUNIST still in the West, there would be no banking crisis if they were.
Many operations borrowed in dollars made the same fatal mistake I have witnessed since the 1980s. They sell these loans in a foreign currency with the expectation of saving money on interest. But the FX can be 20% to 40% within a 2-year period and there is NEVER any foreign exchange consideration. In addition to this FX crisis, the inexperience of people who think it is easy to be a money manager has discovered the reality of being inexperienced. This is why you find the standard clause in the West – past performance is no guarantee of future success.
Japan is once again the largest holder of US debt. This is NOT because they have been buying more, it is because China is selling off debt gradually because the dollar is high and the risk of war with the United States is rising by the day. Biden has already destroyed the world economy. It is now impossible to repair even if you vote for all Republicans 100%. The destruction of SWIFT has divided the world and has terminated Globalism. China is liquidating US debt gradually and rightly so. Beware of 2023 ahead. The people writing the scripts for Biden are ONLY concerned with climate change and have ZERO experience in geopolitics.
Henry Kissinger has been a critic of Biden on his war effort against Russia and China, or should I say the real president who is writing the scripts. EVERY President since Nixon has invited Henry to the White House EXCEPT Biden. Henry is the best geopolitical analyst I know of. I myself was called by my local Congressman asking me to fly to a meeting. I declined. But I asked why was I being called? I was told there is a serious lack of experience in Washington. I was stunned, to say the least. I have no desire to step into what has become a hateful confrontation in Washington that resembles a high school food fight in the cafeteria.
If you do not have eyes in the back of your head, you better learn how to use a rear-view mirror. The purpose of this blog is to help you to see that we are all connected. The old saying about Chaos Theory was that the flapping of a butterfly’s wings in Thailand can alter the weather cycle in Europe. The slightest alteration can produce a starkly different outcome. This is why I am often a critic with a different view when it comes to governments. Those at the helm are often LINEAR thinkers who see only one cause and effect that produces the future.
It is people like Klaus Schwab who think they are so intelligent that they can actually alter and shape the future. His entire premise of the 4th Industrial Revolution is that he can direct it and control it when creativity cannot be controlled or put on some schedule. A good trader learns from his mistakes. If he never made a mistake, then he will end up in a real crisis for he will assume he is always right and then lose it all.
Life is a learning process. We advance only as we learn and the mother of all invention is our mistakes. Learn well from them, if you wish to survive and stop blaming other people. That is the #1 problem with the goldbugs. They do not seek to understand, but just blame the bankers for why gold has not reached $10,000. They cannot advance because they look at the market objectively. That is a critical factor we learn in this journey we call life.