Why I Look at the Dow First


Armstrong Economics Blog/Economics Re-Posted Nov 28, 2022 by Martin Armstrong

COMMENT: Why do you focus on the Dow over the S&P 500 and others?

ANSWER: New analysts claim that the S&P 500 provides a better picture of the markets compared to the Dow. Although the S&P 500 obviously has a larger catalog, the Dow is a direct reflection of international capital flows. Look toward the Dow to see where big money is moving.

The S&P 500 is domestic-oriented, and fund managers and institutions tend to focus on this index. The NASDAQ typically reflects retail, often tech-heavy, and usually does not peak at the same time. Each index offers a completely different perspective. The Dow Jones Industrials is the big money. You will notice that this index leads the way. It is the first out of a key low because it is typically the foreign capital based on currency. You will also notice the Dow tends to top out first because the big money tends to pull out first also due to currency.

Capital is flowing like never before, and the smart money is on the move. Socrates users have access to our capital flow heat map that shows where money is moving in real time. The USD remains the last safe haven, and money is pouring into the US. Look to the Dow for the best international perspective.

Meloni Set to Abolish Italy’s Welfare State


Armstrong Economics Blog/Italy Re-Posted Nov 25, 2022 by Martin Armstrong

Italy’s new PM Giorgia Meloni revealed her first economic initiatives with a budget of 21 billion euros. The Italian government will no longer provide free handouts to those who simply refuse to work. This should not be controversial.

For starters, anyone eligible for welfare must actually reside in Italy. Those capable of working will have eight months to find employment before their free paycheck runs out. Alternatively, if someone refuses a job, they will be excluded from receiving welfare. The 5-Star’s citizens’ wage will be abolished by next year as the system has been abused by many who simply do not want to work. They are reviewing the pension system as well, but it’s too late to save the pension funds.

Italy’s first female PM is also encouraging couples to start families amid a birth rate crisis. Women may take a sixth month of maternity leave and still receive 80% of their salary. Meloni cut taxes on goods for newborns and feminine hygiene. Couples will receive a 50% increase in the “baby bonus,” and families with over three children will receive more incentives. Italy needs future taxpayers.

Everyone cheered when America appointed its first female vice president, but Kamala Harris has done nothing for women who still pay the pink tax and do not have access to maternity leave. It is astonishing how controversial this move has become with the papers calling Meloni a Fascist dictator for preventing working taxpayers from paying for those unemployed by choice.

Former AG Bill Barr: Battered Conservative Voters Must Return to The Era of Compliant Victim Status and Dump President Trump


Posted originally on the conservative tree house on November 23, 2022 | Sundance 

In an op-ed from the New York Post today, former Attorney General Bill Barr joins the not coincidentally timed call from Republican Club officer Paul Ryan to dump Donald Trump.  New York Post and Fox News owner Rupert Murdoch smiles gleefully, but the organized effort is transparent.

According to the diatribe from Bill Barr, things were much better for the leaders of the ‘acceptable Republican Party‘ when the unwashed masses of the unrepresented middle-class were compliant in their role as victims to the GOP.  Battered conservatives are so much easier to manage if they just listen to the high-minded pontifications of the professional political class, pull lever and get pellet.

The tone of Barr’s screed is condescending in the extreme, as if he is delivering his prose to the RNC corporate boardroom at cocktail hour.  With a backdrop buffet of crustless triangle cucumber sandwiches and a masked waitstaff hurrying to provide the gentle ladies with white wine spritzer refills, you can visualize the words “hear, hear” coming from atop the crystal glasses.

As customary amid these conversations, titles are left unattributed for the unapproved.  “Trump brought his wrecking-ball style to the task of governing the nation. He did not temper his disruptiveness and penchant for chaos,” says Barr, pausing intentionally to afford his eloquence time to settle amid the less intellectually capable.

It took his senior staff and cabinet secretaries an ungodly amount of maneuvering to keep him on track,” Barr continued.  Murmured noises and well-toned grunts from the assembly communicated their seriousness in understanding and agreement.  Barr’s tenure was obviously a time of unimaginable horror.

Sympathy, shock and sadness afforded for Barr’s recounting of his survival.  Moments later, furrowed brows from the audience.

Yes, this vulgarian uprising has finally become too much for the shouldered cashmere sweater crowd to continue accepting.

All of this noise about good paying jobs, sound money, respect for a class of workers that will never sit in Corinthian leather, it’s all just too much.

Mitch leans forward, speaking in the familiar tones without lips moving, we must act now, or we may lose control.

The weight of the moment stills the room.

A younger voice from the Murdoch clan seeks to support the former attorney general by pointing out, “They don’t even drive cars – they use trucks.”  Almost immediately a reply, “Yes, and use gasoline,” from the affirming Perino, as widening eyes start to imagine it.

No longer content with patting heads and playing corporate pretenses to the base voters, now it is finally time for the well-educated to bring in the hired muscle and take control, even if forced evictions are needed.  It’s all just too much, too much.

Collectively they turn back toward Barr as he continues: “The threat is simple,” he says.

The time for toleration is over says Bill Barr, Paul Ryan and the billionaires who really matter.  The elite-minded self-appointed sovereigns have had enough.

Unless the rest of the party goes along with him, he will burn the whole house down by leading “his people” out of the GOP,” shouts Barr.  The open hand slammed upon the lectern, while seriousness of the statement catches even the waitstaff off guard as the entire room turns to hear.

Trump’s willingness to destroy the party if he does not get his way is not based on principle, but on his own supreme narcissism,” Barr continues.  “His egoism makes him unable to think of a political party as anything but an extension of himself — a cult of personality.”

Caught up in the lust of the moment a loud shout comes quickly from the back of the room, “REMOVE HIM!” is decried.

And just like that, the entire audience stares toward a stunned Ronna McDaniel, who was caught returning quietly to the buffet for another sandwich.  Embarrassed and unable to turn around with full cheeks, she gives the room a thumbs up over her shoulder….

Read the Op-Ed Here.