The Fed Does Not Back Down

Armstrong Economics Blog/Interest Rates Re-Posted Mar 22, 2023 by Martin Armstrong

COMMENT: Marty, it’s refreshing to have Socrates that is totally unbiased. It projected continued rising rates into next year and the Fed just proved its point. It is not backing down.

Thank you. Socrates is very enlightening.


ANSWER: I know there were a lot of talks that surely the Fed had to lower rates and start QE all over again. Most of those sorts of comments have no real experience in markets. They just mouth a lot of hot air. Perhaps instead of putting masks on cows, we should do that on the shills. The Federal Reserve had no choice but to raise interest rates although it was just by a quarter point. Not to do so and the Fed would lose all credibility and the market would then not take them seriously.

You MUST understand that this crisis has unfolded because too many banks were wrapped up in WOKE culture and hired people who were UNQUALIFIED to run risk management. Some were more excited about cross-dressing as a woman and winning the Rainbow award in banking than actually protecting the bank from the risk of rising interest rates.

In a statement released at the conclusion of the meeting, Fed officials acknowledged that recent financial market turmoil is weighing on inflation and the economy, though they expressed confidence in the overall system. “The US banking system is sound and resilient.” They had no choice but to make this statement.

“Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation. The extent of these effects is uncertain.”

The Fed is saying that their rise in rates will in fact reduce inflation and economic activity. The banks have this yield curve risk and that is different from the 2007-2009 crisis where the debt was based on fraud. Here, the debt is US Treasuries so they are not going bankrupt from that aspect, but it is a liquidity crisis.

If these people who scream loudly but know nothing really about finance keep up the nonsense, they will only add to the uncertainly. This inflation is accelerating thanks to the war.

Interesting – Democratic Congressman Daniel Goldman of New York Holding $32+ Million in Cayman Island Bank Account…

Posted originally on the CTH on March 15, 2023 | Sundance 

Here’s a fun little bit of datamining by the folks at TrendingPolitics.  Apparently, former DOJ apparatchik and current New York Representative Daniel Goldman is holding $32+ million in a Cayman Island bank account.

Goldman was one of Los Tres Amigos conscripted from the DOJ who was enlisted by Mary McCord to run the public face of the House impeachment effort against President Trump.  More recently sketchy Goldman attempted to run defense for the Mueller-Weissmann team during testimony about the Twitter files. {Go Deep}

Considering his legal exposure to the multiple frauds he assisted and perpetrated, it seems part of his financial risk mitigation is to keep his bank accounts in the Cayman Islands.  Curiously interesting, because it’s always worth noting what ammunition the Fourth Branch carries to keep their toadies in line.

[Trending Politics] – Newly disclosed financial documents show that a House Democrat leading the charge against income inequality has stashed over $30 million in a tax-free international haven to support his nonprofit.

The Richard W. Goldman Foundation, which for a decade has provided charitable efforts on behalf of the disadvantaged, reported holding $32.2 million in investments harbored within the Cayman Islands, a renowned haven for wealthy individuals and corporations seeking to relieve tax burdens. The organization was founded in 2012 by Democratic Congressman Daniel Goldman of New York.

Documents filed with the Securities and Exchange Commission list Goldman as financial director for the Goldman Foundation, giving him control over where and how its assets are managed. Disclosures to House Ethics by the New York lawmaker show he has maintained a position on the foundation’s board of advisors through July 2022.

Rep. Goldman just last week issued a statement supporting President Joe Biden’s plan to raise taxes on corporations and wealthy Americans as part of his annual budget. (read more)

DOJ Tells Republican Congress Not to Expect Cooperation and Thank You

Posted originally on the CTH on January 20, 2023 | Sundance | 200 Comments

The U.S. Dept of Justice (DOJ) has sent a five-page letter to congress, copying Politico for the public distribution therein.  [SEE pdf HERE]

The snarky and passive aggressive Lawfare tone inside the letter is rather remarkable in its sanctimony and condescension.  Essentially, Main Justice is telling congressional oversight, specifically House Judiciary Chair Jim Jordan, not to expect any timely responses because there’s a lot going on.

Additionally, as the letter directly implies, Republican oversight is not in the favor of the current administration or DOJ and, well, in general terms, get over it – they aren’t complying.  However, feel free to initiate the formal negotiation process that will likely take several years.

From the letter to Jim Jordan, “Your January 17 requests—made now in your position as Chairman—initiate the constitutionally mandated accommodation process. Under this process, the Legislative and Executive Branches have a constitutional obligation to negotiate in good faith to meet the informational needs of Congress while protecting the institutional interests of the Executive Branch. We look forward to beginning this process in response to your January 17 letters.” (link)

(Via Politico) – […] The letter, addressed to Judiciary Committee Chair Jim Jordan (R-Ohio), acknowledges the GOP’s multiple requests for information during the last Congress but doesn’t divulge any new information. Instead, Uriarte outlines how he hopes DOJ could have a “productive relationship” with Republicans in the new Congress, as Jordan had in previous letters accused the DOJ of “stonewalling” their requests, raised the possibility of a subpoena and said the committee could resort to “compulsory practices” to obtain the requested information and documents.

It’s an early marker of DOJ’s position as Republicans pledge to probe President Joe Biden’s administration over a laundry list of issues, including with a select subpanel that has a broad mandate to investigate the federal government. Conservatives have hinted they would use that panel to try to look into certain ongoing law enforcement investigations. (read more)

I think at this point everyone outside the professional political class in the Legislative Branch knew this was going to happen.  However, the Republicans in Congress will likely pretend to be stunned by this development, Fox News Sean Hannity will be outraged by it, and then the RNC and RCCC will dispatch fundraising campaigns citing the refusal of the DOJ.   Win, win, win… wash – rinse – repeat.

Predicting this approach was exactly why CTH said the House Subcommittee on Weaponized Government should not waste time looking for assistance, documents and or internal support from the various DC silos.  Instead, the oversight committees need to go through the formal request process (blah, blah, blah) but focus their efforts at getting documents from the private sector collaborators outside the DC silo system.

If it seems like the Democrats always know how to use power more effectively than Republicans, you would be absolutely correct.  However, few people really understand the reason for it.  So, I will repeat.

The Republicans want money.  The Democrats want power.  The Republicans use power to get money. The Democrats use money to get power.  The ideology of the Democrats drives their donor funding.  The donor funding of the Republicans drives their ideology.

This core truism carries forward beyond electoral politics and into the realm of legislative battles and oversight conflicts.  Republicans want money as their primary objective.  If the Biden administration wants to get an ideological bill passed, the Democrats simply buy the votes of Republicans (especially Senators).

As an additional outcome, Republicans in congress have no core values, no core objectives, no goals to achieve.  After all, their structural goal is money.

Give Republicans power and they don’t know what to do with it, because the voters essentially boosted the dog to catch the car… now what?

What you see in the outcome of elections is that Republicans do not have any plan for power, because it’s not the issue that takes up their intellectual time.  That’s reserved for deep analytical thoughts about how to make money from (XXX).

The Democrats know this, they know the main mission of Republicans.  Ergo, the Lawfare DOJ pats the Republicans on the head and waits for the frustrated voters to get sick of the GOP doing nothing again, and the Democrats simply wait them out.

We have been in this repetitious abuse cycle for about two decades.

Battered Conservative Syndrome is a very real thing.

There are an enormous amount of codependent enabling voters in this process.  I call them Seagull Republicans because they are voters who will fly down and shit over anyone who complains about this reality – then they fly up to their high perches and look down their noses.

In case you missed it, the Seagull Republicans are currently aligned to support Harmeet Dhillon and Ron DeSantis.

One UniParty consisting of two wings, the RNC and the DNC.  One bird, two wings.

The GOPe priority around money is the one constant on the right wing.  But don’t worry, because the Seagulls are promising that Ron DeSantis will protect us from teh geys.

Tucker Carlson Asks Why Does Everyone in DC Want to Demonize, Attack and Eliminate the House Reform Group

Posted originally on the CTH on January 5, 2023 | Sundance

During his opening monologue tonight, Fox News host Tucker Carlson outlines the attacks against those opposing Kevin McCarthy for House Speaker.

Tucker Carlson asks why the visibility of democracy in action ends up with DC insiders claiming the American political structure is going to collapse just because Kevin McCarthy is not being anointed as House Speaker.   Those in opposition to McCarthy are deemed as Russian operatives, domestic terrorists and corrupt sketchy voices belonging to various shady patriotic movements that have threatened the domestic tranquility of the nation.   WATCH:


Interesting Timing – President Trump Outlines Plan to Destroy Drug Cartels

Posted originally on the CTH on January 5, 2023 | Sundance

Interesting timing here as the North American Summit is scheduled to take place in Mexico City, Mexico, on January 10th.  Joe Biden, Justin Trudeau and Mexican President Andres Manuel Lopez-Obrador (AMLO) are scheduled to have several meetings to discuss trade, economic and energy policies.

President Trump releases a video {Direct Rumble Link} and outline for a proposal to eliminate drug Cartels.

President Trump announces his plan to destroy drug cartels by using the full force of the military

Mar-a-Lago, FL – As Joe Biden prepares to make his first-ever trip to the southern border that he deliberately erased, President Trump announced that when he is president again, it will be the official policy of the United States to take down the drug cartels just as we took down ISIS.


• Restore all Trump border policies and fully secure border

• Deploy all necessary military assets, including the U.S. Navy, to impose a full naval embargo on the cartels, to ensure they cannot use our region’s waters to traffic illicit drugs to the U.S.

• Order the Department of Defense to make appropriate use of special forces, cyber warfare, and other covert and overt actions to inflict maximum damage on cartel leadership, infrastructure, and operations

• Designate the major drug cartels as foreign terrorist organizations

• Cut off the cartels’ access to the global financial system

• Get full cooperation of neighboring governments to dismantle the cartels, or else fully expose the bribes and corruption that protect these criminal networks

• Ask Congress to ensure drug smugglers and traffickers can receive the Death Penalty

BIDEN’S DEADLY DESTRUCTION OF OUR BORDER: Joe Biden has spent the last two years dismantling the southern border. Biden’s Open Borders policies are killing innocent Americans, ravaging American communities, enriching the cartels, and destabilizing large parts of Mexico and Latin America.

Since Joe Biden took office, an estimated 200,000+ Americans have died from drug overdoses.

Hundreds of thousands of pounds of ultra-lethal fentanyl, heroin, meth, cocaine, and other illicit narcotics are pouring across our wide-open border and into American communities. Federal officials estimate that they only seize up to 10% of these drugs.

Enough fentanyl was seized at the border last year to kill every single American.

Biden inherited the strongest border in U.S. history, and turned it into the greatest border disaster in the history of the world.

Biden stopped wall construction, gutted Remain in Mexico, ripped up asylum cooperation agreements, imposed catch-and-release across the entire southern border, slandered and attacked border agents, announced the cancelation of Title 42, and effectively abolished interior enforcement.

Drug cartels and human smugglers have seen their revenue skyrocket by an estimated 2,500%, netting $13 billion this year. Trafficking illegal alien migrants is now a major source of revenue for the drug cartels.

Fueled in major part by Biden’s border disaster, the number of Americans killed due to fentanyl increased by 94% since 2019, and fentanyl poisoning has become the leading cause of death for Americans between the ages of 18 and 45.


Reports of torture in Mexico have doubled, and reports of violence by criminal groups against authorities or large crowds rose 756% in the first half of 2022 compared to the previous year.

In Mexico, over 100,000 civilians are missing or murdered at the hands of the cartels, with an average of 25 Mexican citizens disappearing every day.

Cartels have destabilized Mexico by bribing officials at all levels of government, assassinating journalists and public servants, and mass murdering political candidates.

Biden’s actions are pushing vulnerable migrant women and children into the arms of the most vicious, violent, and predatory criminal networks on earth.

Arrests for human smuggling increased by 82% since 2014, and an estimated 60% of unaccompanied Latin American children who attempt to cross the border are captured by cartels and abused in child pornography or drug trafficking.

BOTTOM LINE: Biden has destroyed the border—President Trump will destroy the cartels. [Source LINK]

Nunes: Schiff pushed Twitter to ban journalist for exposing his fake Ukraine whistleblower

Devin Nunes Published originally on Rumble on January 4, 2023

The corruption just keeps pouring out of the DC Swamp, you wouldn’t think that much crap could exist in one spot, but it does!

the 1996 Tax Reform Proposals on Capitol Hill

Armstrong Economics Blog/The Hunt for Taxes Re-Posted Jan 4, 2023 by Martin Armstrong


For those who have asked for the original 1995/1996 Tax Proposal that was on Capitol Hill in a single file, here it is. For those who just want the sections in a more manageable manner, click on this like here.

House Republicans Remove Nancy Pelosi’s Metal Detectors and Other Optics Intended to Support J6 Extremism Narrative

Posted originally on the CTH on January 4, 2023 | Sundance 

In the aftermath of the 2020 election House democrats led by Nancy Pelosi directed a national pantomime from Washington DC that extremists were running amok and terrorizing congress.  The January 6 Committee was intended to further establish that narrative.

Pelosi called up the national guard, put fences and barbed wire around congress then installed metal detectors, all as part of the theater for manufacturing the domestic violent extremist narrative.  The media engineered the supportive narrative and the ridiculous pantomime continued throughout the past two years.   However, as congress now changes hands and republicans take control, the fences are taken down and the metal detectors are being removed.

Colorado Representative Lauren Boebert highlights the return of normalcy. {Direct Rumble LinkWATCH:

Rep. Boebert: “We’re turning Pelosi’s House back into the People’s House.”

However, against the backdrop of revelations from the Twitter Files where the intelligence apparatus, Dept of Homeland Security and FBI were part of the government operation to influence public opinion, the possibility of an FBI inspired and coordinated attack against the Capitol is now more likely than previous.

The Uni-Party of Capitol Hill

Armstrong Economics Blog/Politics Re-Posted Jan 3, 2023 by Martin Armstrong

This speech by Congressman Matt Gaetz is actually very important. Listen carefully to what he is saying – he and others will not vote for this “uni-party” candidate Kevin McCarthy from California. I cannot emphasize more that what he is talking about is what I have been writing about for a long time.

John McCain would have voted for Hillary before Trump because they are all the same – they protect the SWAMP. The battle is not as fierce between the Republicans and Democrats as it often appears. Both sides like things the way they are. Kevin McCarthy would simply be another Pelosi. There really would be no difference. This is why we must simply Crash & Burn. Politics is hopeless. The corruption has eaten away everything from the inside out. Gaetz is correct for they call it on the Hill the “uni-party” where it is not for the people, but for maintaining power.