Category Economic Subjects

May 20 2021

IMF Cryptocurrency is Coming to Dominate the World


Armstrong Economics Blog/Politics Re-Posted May 19, 2021 by Martin Armstrong

The general talk has been that the end of the fiat monetary system is imminent. Central bank digital currencies allegedly threaten the US dollar, according to some very shallow reasoning and a total lack of understanding about why the dollar is even the reserve currency. Beyond that delusion, these people are claiming that cryptocurrency will end fiat currency. But even private cryptocurrency is not backed by anything either.

Then there is serious talk behind the curtain in addition to the United Nations trying to become the one-world government that will be a dictatorship with no democratic process whatsoever. There is some argument that the central banks’ digital currencies will not displace the dollar and that title will go to the digital “IMF Coin” that will become the new reserve currency.

The dollar is the reserve currency, just as was the Roman silver denarius because it was not just the financial capital of the world. Still, they both represented the major economy, and everyone was trying to sell to the core. Rome conquered most of the Western World at that time, and most found it beneficial to be part of Rome. They often received capital investment into emerging markets, and they produced local goods to be sold to Rome. For example, Egypt was a major supplier of wheat to Rome.

Most transactions today are digital, so converting paper dollars to cryptocurrency will not dramatically alter the economy. The UN and IMF are simply trying to take over the world for a power play. They do not have armies, nor do they possess economies to qualify for the world’s financial capital. They are drunk with this delusion of power that by sheer decree, they can rule the world. From the very beginning, the elite saw in their vision that they would dominate the world and end democracy. Huxley was against the United States and believed that “unrestricted individualism” was equally wrong as a total dictatorship as in communism.

This is what Kalus Schwab is saying in his 8 points for 2030 — end the threat of “populism,” as was the case in electing Trump, by eliminating any right of the people to be heard. What Schwab, the UN, and IMF see is retaining some basic human rights but removing our right to even say what kind of government we want. In their world, only the elite know what is best — not the people.

This is the real agenda behind cryptocurrencies to lay the foundation for the ultimate power being handed to the UN and the IMF. This folly will not succeed. For such entities are like men and even corporations — they are never immortal. I will celebrate the day the flags of the UN are lowered forever. It has always been a very dangerous and lustful entity drooling for supreme power.

May 17 2021

Turning Out the Light When the Bankers Leave Town


Armstrong Economics Blog/Banking Crisis Re-Posted May 17, 2021 by Martin Armstrong

I have written before how a friend of mine who is very senior at one of the investment banks in New York called to see if I would go to dinner. I thought he was here in Florida to catch a breath of fresh air and relax outside of what use to be called the Big Apple, but is now only called the Arm-Pit of the World thanks to COVID.

I can attest that the major banks, despite what they are saying, are abandoning both New York and London. In Europe, the long-standing hatred between France and England spans countless generations. France is seeking to punish the English by denying them access to EU markets. This has led bankers to start to shift their top talent to the EU because once the nut-case Boris Johnson decided to destroy Britain to Build Back Better, taking instructions from Gates and Schwab, there is now no going back. I have stated at conferences there were meetings I had in the EU where I was not allowed to bring a Brit because it was assumed they are just biased.

The Financial Capital of the World is moving. It will eventually end up in China post-2032. We have the worst possible politicians systematically destroying the West all for this Great Reset.

May 13 2021

Inflation Nation


Posted originally on GrrrGraphics.com MAY 12, 2021 AT 10:08 AM

A trillion dollars here and a trillion dollars there and pretty soon such spending adds up to serious money.

In America we have a national debt well over $20 trillion. By 2030 it will be nearly $90 trillion. Our current unfunded liabilities tops $149 trillion. Biden has distributed trillions of dollars to compensate for lost jobs when small businesses were destroyed during the lockdowns. Congress routinely spends trillions of dollars on pork and they won’t tighten belts any time soon.

The Fed’s solution is always the same. Print more dollars. A problem occurs with that. It’s not like printing Weimar or Zimbabwe money backed by nothing. We have not a fiat dollar, but a debt-based dollar. That means it must be paid back with interest. That’s impossible because the public is not allowed to have a printing press. Counterfeiting is against the law. Only the private central bankers can print and the more they print the more debt is owed to them and those who buy government bonds. Workers pay taxes on their labor to pay interest on the debt, but the principle can never be paid back. We’ve long passed the point of no return on that possibility.

Essentially we have become tax slaves to the entities who have indebted us. People slave away for a rotten, immoral system of money for nearly a third of the year while the ultra rich have tax shelters. Global corporations pay little or no taxes. It’s always the little guy who gets punished. It’s a rich man’s game and they’ve shackled our country with debt money.

Inflation is getting worse. Food prices are skyrocketing along with home and rent prices. Gas prices are rising. Big government won’t halt their profligate spending, but the little guy will be forced cut back. No wonder many aren’t returning to low-paying jobs. Wages are not keeping up with inflation and if one has a choice between making money from a government dole or working for the same amount, they will choose idleness every time. Biden doesn’t seem to understand this.

We won’t see people pushing wheelbarrows full of money about any time soon. Weimar Germany had a law that stated wages needed to remain commensurate with the inflation rate, which soon rose exponentially. In America the debt dollar will prevent wheelbarrow cash, but people will get poorer regardless. It’s a good idea to have some precious metal as well as long-term storable food at this time.

Frederick Bastiat once said, “Government is the great fiction, through which everybody endeavors to live at the expense of everybody else.” People need to give up the notion of government redistribution of wealth. That socialist road leads to a dead end. Human beings are not equal and can’t be made equal without absolute totalitarianism. Forced equality by means of socialism always leads to ghastly suffering. It’s time to end our dependency on government. It’s time to end the Federal Reserve and return to sound money based on precious metal.

—Ben Garrison

May 13 2021

Data Shows Massive Inflation Starting to Bite Middle-Class Hard, Unleaded Regular Gasoline Up 52 Percent, Fresh Fruits and Vegetables Rising Fast


Posted originally on the conservative tree house May 12, 2021 | Sundance | 206 Comments

As expected the high-turn consumable goods are starting to rise in price rapidly.  The Bureau of Labor and Statistics (BLS) has released the consumer price analysis from April (remember there’s a big lag) [Top Line Data Here – Detailed Sector Data Here]  The trend is rapid inflation continuing with no end in sight.  CORE inflation just jumped the most since 1982.

Overall prices are up 4.2 percent year-over-year, which is three times the rate of inflation under Joe Biden than under President Trump.  Inflation hurts the lower and middle economic class much harder; and the specific inflation sectors show massive increases on the goods and services that blue collar workers use most.

It is specifically the Biden economic policies that are to blame for the scale of these increased prices.  Inflation of this scale is an outcome of policy.

Biden is focused on helping multinationals and Wall Street; President Trump was focused on helping small businesses and Main Street.  We are now seeing the impact from these two differing economic priorities.

Regular unleaded gasoline is up a whooping 51.9 percent from last year [Table 7].  Higher gas prices directly hit the middle class the hardest and also increases the cost of transporting all goods.  Keep in mind this is a snapshot of prices approximately six weeks ago and gasoline prices have been rising even more rapidly recently.  Not good news.

The status of the economy, the employment picture and the stimulus money shows up in the cost of used vehicles rising over 22% last month and 21% compared to last year.  People are holding on to their vehicles and when able purchasing newer used vehicles, reflected in the lower inflation on new cars and trucks (2%).  Paycheck and wage security is becoming an issue again, especially with the cost of gasoline and food.

The inflation data in the food at home (grocery prices) doesn’t look too dramatic until you drill down into the faster turn fresh fruits and vegetables.  Citrus products up 7.8% (lemons, limes and oranges are very expensive) with fresh fruits overall increasing by 6.2%.  The less perishable food products, longer shelf life items, reflect slower inflation due to warehouse and shelf inventory (a natural lag).  However, the fresh fruits and vegetables carry the immediate price of higher energy and transportation costs.  Lettuce up 5.1% year over year. [TABLE 7 has the details]

The rapid increases in price for food and gasoline are hitting the middle-class hard.  This will have a downstream effect on more luxury items and durable goods.  Spend more on food/gas and you might not be able to purchase that new table you wanted.  Durable good inventories increase and layoffs in those sectors begin.

It will be very interesting to watch how the housing market responds over the next few months.  If the trendline continues we should see a considerable softening in home sales, again depending on region, as the inflation hits the working class – and the FED might respond by raising interest rates.

PRESIDENT TRUMP – “If there were long and horrible gas lines like this under President Trump, the Fake News would make it a national outrage! Did Joe Biden put Hunter in charge of our energy, with all of his Burisma experience? Even Energy Secretary Jennifer Granholm is lost!” (LINK)

May 10 2021

April Jobs Report Shows JoeBama Creating Successful Socialist Utopia – Jobs Gains Stunningly Below Expectations, With Downward Revisions for Feb, March


Posted originally on the conservative tree house on May 7, 2021 | Sundance | 134 Comments

Economic forecasters had predicted one million job gains in April.  The actual results are “stunningly” and “unexpectedly” far below the expectations.  The Bureau of Labor Statistics [SEE HERE] reveals only 266,000 jobs gained in April and downward revisions of March by -146,000.  There are almost 7.4 million jobs available; however, despite the available jobs, no-one is going back to work.

Yes, JoeBama’s “free government money” has created the socialist utopia.

The politically correct economic analysts are shocked that minorities (blacks and latinos) are not going back to work; while ignoring the disincentive that government handouts have created in the JoeBama economy.  The entire dynamic is ridiculous when you consider we should be entering a phase of the jobs economy where vaccination and COVID mitigation should be leading to massive reopenings of the economy overall.

Inside the numbers, the economic sectors showing the worst jobs recovery are directly related to the blue state shut-downs.  Worse yet, there is an underlying scenario showing the economy is not growing despite the ability of businesses to re-open overall.  That spells even more trouble.

(CNBC) – “Today’s report was an enormous surprise and shows the labor market hit a hidden pothole in April,” Glassdoor senior economist Daniel Zhao tells CNBC Make It. “Clearly, the labor market has decelerated quite a bit.”

The 6.1% unemployment rate and 9.8 million people unemployed remained steady in April compared with the months prior. (more)

There is no level of spin that can change the reality of this situation.  JoeBama’s economic policies are exactly the wrong thing to be doing.  Everything, and I do mean every single policy objective, delivered by this administration is AMERICA LAST!

Hiring was a huge letdown in April, with nonfarm payrolls increasing by a much less than expected 266,000 and the unemployment rate rose to 6.1%. Dow Jones estimates had been for 1 million new jobs and an unemployment rate of 5.8%. CNBC’s Jim Cramer discusses what he thinks led to the surprising report.

May 6 2021

Shortage of Chickens


Armstrong Economics Blog/Agriculture Re-Posted May 5, 2021 by Martin Armstrong

The orchestrated COVID pandemic to change the economy for the BUILD BACK BETTER Great Reset has set in motion food shortages that are now emerging. Farmers have had to plow their crops under, and one had to kill over 30,000 chickens because they simply could not get them to market. Sales of produced collapsed as much as 75% in 2020 compared to 2019 in some areas. Even in Europe, the cold weather has destroyed crops. As I have said, these morons look at the world only in a single dimension. They had no idea that locking people down to lower CO2 meant that they were also cutting off the supply chain in technology to food.

There is a shortage now of chickens, and don’t worry, it will move to beef as well. Add their scheme for a cyber attack, and the future looks really crazy because nobody will lock these people up, no less dare to investigate them. So be warned. This will get far worse post-2024. We should all send a thank you note to Klaus Schwab and Bill Gates for starters.

May 5 2021

Fake News Knows What It is Doing


Armstrong Economics Blog/Press Re-Posted May 5, 2021 by Martin Armstrong

COMMENT: I wrote to the ________ news and pointed out that you had a computer model that beat all the models that Gates-funded to use to create these lockdowns. They never responded.

HJ

ANSWER: Oh it is worse than that. One of the top five newspapers in the world wanted to write a story about Socrates and its forecasts with respect to COVID. We spoke, and then two weeks later, the powers from above said NO!

It is not a question of them not being aware. They know precisely about Socrates, yet the powers that be give directions not to cover Socrates, for it goes against the narrative. Perhaps if enough people wrote to Fox or the Hill, they might report something. But they too are afraid of stepping into this mess, for they might drown in a swamp filled with quicksand.