The Myth of Fair Value

Armstrong Economics Blog/Understanding Cycles Re-Posted Mar 13, 2023 by Martin Armstrong

QUESTION: If the metals are not trading at a fair value relative to everything else, then does that not prove they are manipulated?


ANSWER: Your problem is the assumption that everything must be trading at some fair value. That is up there with the theory of random walks.  ALL markets trade for periods where they remain well below fair value. That was the entire takeover boom of the 1980s which they also blamed on me because I was advising many of the takeover players. I simply showed these charts back then which show in terms of book value, the Dow Jones bottomed in 1977. The market was grossly undervalued because you could buy a company, sell all its tangible assets, and double or triple your money. Michael Douglas’ famous speech in that movie about “greed” would not even be possible if everything always trade like some mythical robot at fair value. Everything overshoots and undershoots.

The metals are NO DIFFERENT. Every market swings between grossly UNDERVALUED and then grossly OVERVALUED. This is part of the business cycle. If there were no periods of gross undervaluations, there would not be a sudden boom either.

This is what you have to come to grips with. There is such a thing and the business cycle. Our cyclical analysis would not be possible if everything was trading at a flat line of fair value. This nonsense in metals is made up of people who have been wrong, and need to blame someone else. It is like blaming climate cycles on CO2. This notion of fair value is rooted, I hate to tell you, in Marxism, because he too did not understand  the business cycle.

Ship of Fools

Armstrong Economics Blog/Cryptocurrency Re-Posted Feb 28, 2023 by Martin Armstrong

QUESTION: Do you think that this entire scam with cryptocurrencies that the government will be able to track, do they realize that in war you take down the power grid and all digital currency fails? If the backup system is destroyed, all your digital currency will vanish. Are they this stupid? Is this why they have shills saying you are wrong?


ANSWER: Yes. I have spoken to people involved in creating this insanity. First, they do not think there will ever be a nuclear war. Second, they really do think that they will create regime change in Russia at the expense of probably every Ukrainian alive today who are fools being led to the slaughter. When I have brought up the subject – WHAT IF YOU ARE WRONG! They dismiss it and do not even entertain plan B. The whole digital currency is all about tracking every dime. I have said many times, this is all about the new world order which is Schwab’s Great Rest and he knows that is our 2032 forecast. They all believe that forecast and are preparing to redesign the world this time to achieve their totalitarian dreams.

When I asked – Did you authorize Bitcoin? They just do not reply. Silence is golden. The launch of Bitcoin was just too damn convenient. That was standard operational political tactics – you float a balloon and see how the people accept it.

If you have ever been to Nuremberg, Germany, they have a bronze statue there – the Ship of Fools. The sculpture named Ship of Fools by Jurgen Weber is based on the satirical allegory by Sebastian Brant. This is now a reality.

Russia Shuts Down Nord Stream 1 Gas Pipeline, Gasprom Sends out Eerie Video ‘Winter is Coming’

Posted originally on the conservative tree house on September 6, 2022 | Sundance 

Well, it looks like it’s official now. After several days of sporadic reporting on Russia’s decision to shut down the Nord Stream 1 natural gas pipeline into western Europe, it looks like the valves have been shut down until EU sanctions against Russia are removed.

Strategically the Nord Stream 1 pipeline is the major gas supply route into Germany, Europe’s largest economy. As noted by Reuters, “European gas prices, as measured by the benchmark Dutch TTF October gas contract, rose by as much as 30% on Sept. 5, amid growing fears of a total shutdown of Russian pipeline imports ahead of the European winter.”

Europe was already going into a deep economic recession due to inflation created by pre-existing green energy policy.  The Nord Stream shutdown will make things exponentially worse as energy prices skyrocket.  The Russian owned energy company Gasprom sent out a video that can be best described as psychological warfare.  WATCH:


BRICS Ministers of Finance Hold a Meeting – It Is Time to Replace Western Financial Trade Mechanisms and Remove The Dollar

Posted originally on the conservative tree house April 9, 2022 

This is not some grand conspiracy, ‘out there‘ deep geopolitical possibility, or foreboding likelihood as an outcome of short-sighted western emotion.  No, this is just a predictable outcome from western created events that pushed specific countries to a natural conclusion based on their best interests.

You can debate the motives of the western leaders who structured the sanctions against Russia, and whether they knew the outcome would happen as a consequence of their effort, but the outcome was never really in doubt.  Personally, I believe this outcome is what the west intended. The people inside the World Economic Forum are not stupid – ideological, yes, but not stupid. They knew this would happen.

[Left to Right] Xi Jinping (China), Vladimir Putin (Russia), Jair Bolsonaro (Brazil), Narendra Modi (India) and Cyril Ramaphosa (South Africa), the BRICS group.

The finance ministers of the BRICS alliance (Brazil, Russia, India, China and South Africa) have decided to create their own financial mechanisms to continue trade between nations of similar disposition.  Once the internal issues inside the BRICS alliance are resolved, and once the mechanisms are created, then other nations will be able to decide to join or not.  The great global cleaving will commence.

(Reuters) – Russia, hit by Western sanctions, has called on the BRICS group of emerging economies to extend the use of national currencies and integrate payment systems, the finance ministry said on Saturday.

[…] On Friday, Finance Minister Anton Siluanov told a ministerial meeting with BRICS, which consists of Brazil, Russia, India, China and South Africa, that the global economic situation had worsened substantially due to the sanctions, the ministry’s statement said.

The new sanctions also destroy the foundation of the existing international monetary and financial system based on the U.S. dollar, Siluanov said.

“This pushes us to the need to speed up work in the following areas: the use of national currencies for export-import operations, the integration of payment systems and cards, our own financial messaging system and the creation of an independent BRICS rating agency,” Siluanov said.

International payment cards Visa and MasterCard suspended operations in Russia in early March and Russia’s biggest banks have lost access to the SWIFT global banking messaging system.

Russia set up its own banking messaging system, known as SPFS, as an alternative to SWIFT. Its own card payment system MIR began operating in 2015.

[…] They were part of Moscow’s efforts to develop homegrown financial tools to mirror Western ones, to protect the country in case penalties against Moscow were broadened.

The finance ministry said BRICS ministers have confirmed the importance of cooperation in efforts to stabilise the current economic situation.

“The current crisis is man-made, and the BRICS countries have all necessary tools to mitigate its consequences for their economies and the global economy as a whole,” Siluanov said. (link)

For a deep dive on BRICS, as predicted by CTH, {SEE HERE}.  The bottom line is – the 2022 punitive economic and financial sanctions by the western nations’ alliance against Russia was exactly the reason why BRICS assembled in the first place.

The multinational corporate control of government is exactly what the BRICS assembly foresaw when they first assembled during the Obama administration.  When multinational corporations run the policy of western government, there is going to be a problem.

In the bigger picture, the BRICS assembly are essentially leaders who do not want corporations and multinational banks running their government. BRICS leaders want their government running their government; and yes, that means whatever form of government that exists in their nation, even if it is communist.

BRICS leaders are aligned as anti-corporatist.  That doesn’t necessarily make those government leaders better stewards, it simply means they want to make the decisions, and they do not want corporations to become more powerful than they are.  As a result, if you really boil it down to the common denominator, what you find is the BRICS group are the opposing element to the World Economic Forum assembly.

The countries run by multinational corporations are in Yellow, the countries who have not yet chosen a side are in GREY:

The BRICS team intend to create an alternative option for all the other nations. An alternative to the current western trade and financial platforms operated on the use of the dollar as a currency.  Perhaps many nations will use both financial mechanisms depending on their need.

The objective of the BRICS group is simply to present an alternative trade mechanism that permits them to conduct business regardless of the opinion of the multinational corporations in the ‘western alliance.’

Should we Cheer for Putin to Lose?

Armstrong Economics Blog/Russia Re-Posted Mar 24, 2022 by Martin Armstrong

While the Neocon strategy of DEMONIZING an adversary as they have done to Putin, the very same strategy was used to get people to absolutely hate Donald Trump. The more someone hates Trump still, the more susceptible they are to simple techniques of mind manipulation. This has led many to cheer for the Ukrainians to defeat Russians and we have the White House calling Putin a War Criminal when you could say the same thing about the US leaders that started the endless saga of wars on false pretenses or took out civils with drones when they wrongly thought they were terrorists.

The White House appears to be under the influence of the Neocons who just always advocate war. Make no mistake about it, these Neocons are not confined to just the Democrats or Republicans. They share a love for war and the hatred of everyone they perceive to be an enemy. It’s tempting to think that Putin will suffer a defeat and democracy could revive in Russia, but a more likely scenario is total world chaos. Russia is also comprised of Muslims who number about 14 million or roughly 10% of the total population. Then there are different cultures and you will see internal chaos and separatist movements armed with nukes.

Putin is not a fool and he is actually honoring his word. He is not trying to conquer Ukraine. His column of tanks had stopped as a show of force and intimidation. He has not ordered just total annihilation. The US strategy is we go in and flatten everything targeting water and power grid. Put took the power station but did not turn off the power. The West portrays this as Putin is stalled and the Ukrainians could defeat the Russians. But this seems to be propaganda all designed to wear down the moral of the Russian troops and sway public opinion for Ukraine.

While the press also portrays that Putin’s nation has now been subjected to an isolation greater than any nation has ever experienced by any major power in history, it was US sanctions to cut off the fuel to Japan that caused them to attack Pearl Harbor. There were later even Congressional investigations into FDR and did he deliberately try to create a situation to get the USA into World War II. Congress simply said the allegations were inconclusive.

Since late February, Russia has been hit with punishing economic, trade and financial sanctions. Putin struck back and said all energy sales to unfriendly nations will now be in Rubles. Saudi Arabia also agreed with China to sell oil in Yuan. These are historically critical events that have torn the world economy asunder. There will NEVER BE A RETURN TO NORMAL.

So while the Western Press cheers and reports that Russia is careering toward a debt default, they forget that the default will be on the West. A very rapid technological decoupling is also underway dividing the world economy and that will threaten free trade and the end of economic growth. Indeed, US GDP Growth rate peaked in real terms.

The mass withdrawal of American firms from Russia will have a profoundly negative impact moving forward and the world economy is shrinking rapidly. Russia isn’t some weak power like Iraq. Russia is a major power whose population was, until recently, deeply connected to its larger global environment. The White House thinks that Russians will blame Putin rather than Biden. Eastern European states like Serbia and in the Middle East are looking at the United States as the problem being arrogant and interfering in everyone else’s affairs. It is without question that the United States has declare war on Russia. This is how World War II began with countries attacking one another in the financial markets.

So while the Neocons lick their lips at the thought of overturning Putin and controlling Russia before they turn on China, they are clearly not looking long-term. They took out Saddam Hussein who kept the religious zealots in their place. Once he was removed, the Middle East saw the rise of ISIS. The US has been covertly funding the Ukrainian Nazis to keep up their fight against Donbass.

Let us may no mistake here. The Neocons pushed and funded through the CIS the Taliban for then they were the anti-Soviet resistance. The CIA Special Activities Division sent paramilitary officers to equip the Mujihadeen forces against the Soviet Army. The US therefore funded Taliban mainly to assist in ending the Soviet’s occupation in Afghanistan. However, the Neocons can never think past the end of their nose. They have no long-term strategies, only win what is immediately in front of them. The taliban benefited from expanded foreign military support from the United States. They then used that training against US troops who were in search of terrorists from 911.

The foolish view among the Neocons is they think bringing Democracy to the Middle East or now to Russia and China will somehow make them friends or stable is an absolute joke. The idea of creating a “Moscow Spring” by punishing the Russian people until they do what the CIS and Neocons demand does not make the costs of conflict lead worth it. Marx brought his ideas and it cost over 200 million lives to install communism. America is hated for its interference by the Neocons in many circles.

Both China and Russia have American arrogance as a common enemy and the Russian or Chinese people will not send them flowers and Xmas cards thanking them for destroy everything they have built since 1989. However, RELIABLE sources in the Middle East, the UAE, Egypt and even Israel are angry over Biden’s sanctions. Yet the Neocons claim that total isolation forced regime change in South Africa. However, they also had no military power to fight back. That is like claiming a fight is fair with one kid has a rubber band and the other a baseball bat.

Somebody in Washington needs to start thinking strategically and realistically about this endeavor to isolate Russia for all that is unfolding at a rapid rate is the disintegration of the world economy. In 1989, then President George H.W. Bush understood there were serious risks with the collapse of the Soviet Union and Communism. Russia is big and powerful enough that its role in the world economy is vital to the overall health of the international order . The US NEEDS Russia as an economic friend not and adversary for nobody will win with that result.

The Western propaganda is that Russia and China represent authoritarian rule. However, Western governments are no better. Sure, we have elections but then the candidate arrives in Washington and they are told they will vote according to the Party Agenda rendering the image of free elections only just that. In Europe, the people do not vote for the Commission which makes the laws nor for the head of state. We do not live in a Democracy for the people never are allowed to vote on an issue like war or peace.

The likelihood of Putin being overthrown and Democracy is sudden born has less than a zero change of ever being correct.

Putin puts Biden’s King in Check

Armstrong Economics Blog/Euro € Re-Posted Mar 23, 2022 by Martin Armstrong

The absolute stupidity of those in the Biden Administration will go down in history as probably the dumbest ever in the history of the world, not just the United States. Besides disrupting energy supplies, and subjecting the world to a shortage of wheat when Russia and Ukraine represent 30% of the world exports, Biden’s sheer stupidity in just reading what his staff of climate zealots tell him is beyond belief. There is a crisis unfolding even in base metals like nickel.

Removing Russian banks from SWIFT but leaving the energy intact so Europe has power, was so brilliant they obviously never played chess. Putin just put Biden’s king in check by ordering Europe to pay for gas now in Rubles. That will provide support for the Ruble, and undermine Europe and its Euro as well as the dollar in the long run.

First of all, when Biden freezes all of Russia’s reserves, why would you continue to get paid in dollars that Biden could freeze? That makes no sense. This is why I warned that using SWIFT as a political tool would destroy the world economy. There is no putting this back together again. The foundation of TRUST has been lost.

What I would do if I were Putin is to create a two-tier monetary system like South Africa once had with the Financial Rand and Domestic Rand. What I would do to put Biden in Checkmate would be to back ONLY the domestic Ruble with gold to restore confidence among the Russian people, but leave the Ruble float for international transactions – the opposite of what FDR did in 1934.

Biden has destroyed the world economy. This is so devastating going forward, that what comes post-2032 when the world economy finally crashes and burns because of these idiots, there will be a whole new regime change on a global scale.

Trudeau Cuts Backroom Deal to Stay in Power Until at Least 2025

Armstrong Economics Blog/Canada Re-Posted Mar 23, 2022 by Martin Armstrong

One long-term Canadian client just wrote to me saying:

“Never thought that its was possible that Alberta would actually split from Canada but with this new coalition in place to 2025, it is now possible. Guaranty of Green mandate, free pharma, basic income and tax the banks … why no get the banks to reduce fees to help retail … really have to consider leaving now.”

The Liberal government and the NDP have reached an informal deal that will allow Trudeau to remain in power at least until 2025. The deal involves a pledge to act on dental care, pharmacare and other key issues advocated by New Democrats. This is what is wrong with a Parliamentary system that those in power can create deals to retain power that the people are never given the chance to vote on. Not that the American way is without fault. A Republic is up there in a race to the top of the list for the worst form of government ever. You vote for a Congressman, they get to Washington, and they are told how to vote on party lines. They NEVER actually represent the people who voted for them.

This picture is flying around because Both Singh and Trudeau are anointed by Klaus Schwab as Young Global Leaders. Perhaps Alberta and rural BC can join with center America, and East Canada can merge with California and we just redesign North America into the MARXIST utopia against the Land of the Freed & the Home of the Brave.

It is actually quite hard to see Canada remaining intact through this centralized focus of sacrificing domestic policy objectives for international ones set by Agenda 2030 coming from the World Economic Forum. The Biden Administration killed the Keystone Pipeline. The developer of the Keystone XL pipeline announced it was pulling the plug in June of 2021 on the controversial project after the Biden administration revoked its permit in January 2021 while Trudeau cheered. That was a very big deal for Alberta.

Cutting off pipelines was the first thing out the door for Biden. Make no mistake about it, Ukraine is being used for cannon fodder to ensure that the pipelines from Russia to Europe are also cut off. This is an agenda that is being carried out by Climate Change Zealots. Trudeau is clearly following Agenda 2030 and if anyone can divide Canada, it will be Trudeau.

Zelensky Keeps Trying to Create WWIII

Armstrong Economics Blog/Ukraine Re-Posted Mar 23, 2022 by Martin Armstrong

QUESTION #1: When I read today that while addressing the Italian Parliament, Zelensky reported that the Russians were “capturing and torturing children” my propaganda antenna went up and the BS detector went off. If true, that is atrocious and a war crime. Putin is crazy but that seems hard to fathom. It would seem like good propaganda for Zelensky to use to prompt NATO to get involved (which as you have noted repeatedly would surely start WW III). Maybe it is Zelensky’s Hail Mary pass?

Anyway, what were your thoughts when this was reported and what do you hear from your Ukrainian sources on this topic? Is this true?


QUESTION #2: Marty, I find it amazing that your computer pinpoint Ukraine back in 2013. But you also said when this started that it would not be a quick in and out event. Then you said it was Zelensky who would create World War III. OK. I watched Zelensky address the Italian Parliament. He said Russian were torturing children. He is trying to paint Russians as animals. Zelensky keeps saying a lot of shit and it is all to send the world into war that will be nuclear. This man is pure evil. Do you have any timeline worked out yet?


QUESTION #3: How can the West support Ukraine when you have doctors ordering that Russian soldiers who are prisoners of war should be castrated? I’m sorry. But I see this as the pot calling the kettle black.


COMMENT #4: Zelensky Says He Wants Talks With Putin, Failure Means ‘Third World War’My Comment: No, it doesn’t Zelensky.
What it means is a Third World War of Words and Pictures equal to failure-failure. It’s a ‘Vietnam’ of no win-win for both.I watched the CNN GPS Zelensky interview too and was aghast at the war commercial produced by Zelensky’s ‘Dogs of War’ to romanticize and legitimize his demagoguery. It reminded me of the 1984 Apple commercial. Zelensky’s commercial is embellished with platitudes that reveal the naïve approach he’s taken with Ukraine and the lives of innocent Ukrainians. The mind behind the “The Third World War” scapegoat.There won’t be any last man standing to credit with victory. There will only be repentance and regret that you Zelensky broke faith with established agreements. Anyone who encourages Zelensky in this kind behaviour encourages a man who believes he’s more than what he is.….

I read the Toronto Star’s Saturday March 19, 2022 Edition, Front Page article ‘What drove them” by Justin Ling.

My Comment: Referring to ‘Klaus Schwab/WEF’ as a conspiracy theory brings into question the rest of what has been written in the article including Justin Ling’s ability to understand what he is writing about. ‘Klaus Schwab/WEF’ is not a conspiracy. It’s a fact. To use a newsie phrase from the past “READ ALL ABOUT IT!” It’s all there in plain sight to read and understand.

COMMENT #5: The madman is not Putin, it is Zelensky. Why should this man sacrifice my family here in Ohio for his hatred of Russians? If anyone should be assassinated, it is Zelensky to save the world.


COMMENT #6: I could never fully understand why Americans hated Russia so much. In 1991, when I was 17 years old, a senior in high school, I traveled to Russia with a group of classmates in my economics class just as the USSR fell. I actually saw them change the flag from USSR to Russia. I remembered thinking this must be an important moment to witness in history.I never felt threatened while there. And I was very intrigued by the Russian winter swimmers called “walruses” who would swim in the ice cold water. They would practice all year in ice-cold baths, and I thought to myself wow, that really takes a lot of discipline to do that.

The Hermitage museum was absolutely gorgeous with the malachite columns and gold-leafed crown molding. We visited many major tourist destinations such as St Basil Cathedral, the Hermitage Museum, Moscow, saw Swan Lake, and ate at restaurants.  We stayed through New Years and because Russia at that time did not have an age-limit for drinking that served us copious amounts of vodka that my classmates happily drank and got drunk. I stayed sober…was not interested in getting drunk or drinking vodka, but it was interesting to see this American teenagers celebrating New Years in Russia.

Even though I think we saw probably the best parts of Russia, I felt Russia was a poor country when we visited. A few young children ran up to us begging for money, and there was just a lack of variety of foods to eat and things to buy at the shopping malls. Remnants of a communist country. Moscow was so bland and stark. And it was very cold, but I bought a Russian wool hat, which I loved wearing around. It was so warm!

Ever since then I followed Russia on and off, and with the fall of communism there it was very interesting to see their change and development in the arts and culture. I liked Maria Sharapova, tennis player, and I befriended a Korean-Russian while I lived in Korea during 1998. She was a Russian-born Korean and only spoke Russian and Korean. Fascinating to meet someone like that.

I thought it was always the idea of communism versus capitalism that Americans were at odds with, that Americans were in favor of freedom and democracy. I understand you, it is tragic to see what is happening in America. Americans really are no longer to good guys today with the election fraud. When Joe Biden took office, I literally cried (shed tears).

But you know, the sun comes up every day and when the sun shines, I feel happy. I try to do my part and not hate Russians. I find the country interesting. It is hard to see the other side when there is so much propaganda. Thank you for sharing your knowledge and insights on what is going on in the world. You do so much good. Your thoughts are very much needed in today’s world.

Thank you.

COMMENT #7: Now Biden is out saying the US must lead the new world order. Someone had better arrest the people writing these words he is reading.


ANSWER: I am sorry, but Zelensky is an actor who even played a president. He was hired to bring the world to war and has done NOTHING that he promised to get elected. The audacity to claim he should get the Noble Peace Prize is just propaganda when he has put not just Ukraine at risk, but the world for insisting on joining NATO in violation of the Belgrade Agreement, and then refusing to allow Donbass to hold elections while claiming Putin is against democracy is the ultimate hypocrisy.

Claiming Russians are torturing children is just over the top. Nobody, even Hitler, Napoleon, Stalin, or the Genghis Khan has ever tortured little children. Then for the Ukrainian doctor to order Russian prisoners should be castrated is a violation of every convention on war and confirm the hatred of Ukrainian Nazis to just exterminate Russians is alive and well.

It is this hatred that Zelensky is pouring out to the whole world that they are now even removing Yuri Gagarin’s (1934 – 1968)  name from history as the first man in space because he was Russian? He died in 1968. This is the real evil – raw hatred being created by this actor. When the final chapter is written, it is Zelensky who has torn the world apart deliberately. He keeps threatening World War III because of his hatred of all Russians which is why he refuses to allow the Donbass to separate.

Zelensky has sacrificed his own people for his hatred of Russian people and this deliberate absurd position of joining NATO and refusing to allow the Donbass to become an independent republic. Ukraine was merely a border drawn during the Soviet Union. This is not even about the sovereignty of a nation. Neither Crimea nor Donbass are occupied by Ukrainians – they have always been ethnically Russian.

Many in Ukraine feel Zelensky is a puppet of the CIA, WEF, or the Ukrainian Nazis depending upon who you talk to. What is clear, he has done nothing to prevent war and does appear to exaggerate everything constantly threatening World War III to create it. He wants to engulf the entire world because of his hatred of Russians – not Putin alone.

Those who support Zelensky should take a look at their children. Are you prepared to see them killed and their future destroyed for this actor in high heels pretending to be a world leader?

European MP Calls Justin Trudeau a Dictator During Public Speech in Front of the Canadian Prime Minister

Posted originally on the conservative tree house on March 23, 2022 

This is just epic and well deserved.  EU Parliament Member Mislav Kolakusic delivered a humiliating speech directly to Justin Trudeau as the Canadian Prime Minister visited the EU members. [h/t to CounterSignal for transcript] This is quite likely the first time Trudeau has ever been publicly called out in such a grand fashion.

MP Mislav Kolakusic lived in Croatia under soviet rule.  Kolakusic saw the recent behavior of Trudeau as familiar to him from former soviet dictators. He took the opportunity of Trudeau appearing in the European Parliament to eviscerate him publicly. {Direct Rumble LinkWATCH:

[Transcript] – “Freedom, the right to choose, the right to life, the right to health, the right to work for many of us are fundamental human rights for which millions of citizens of Europe and the world have laid down their lives,” Kolakusic began.

“…. Canada, once a symbol of the modern world, has become a symbol of civil rights violations under your quasi-liberal boot in recent months. We watched how you trample women with horses, how you block the bank accounts of single parents so that they can’t even pay their children’s education and medicine, that they can’t pay utilities, mortgages for their homes.”

“To you,” he continues, speaking to Trudeau, “these may be liberal methods; for many citizens of the world, it is a dictatorship of the worst kind. Rest assured that the citizens of the world, united, can stop any regime that wants to destroy the freedom of citizens, either by bombs or harmful pharmaceutical products.”

The Destination of the Handbasket

Posted originally on the conservative tree house on March 23, 2022

promoted video from the BlackRock investment group delivers a single point amid a multitude of points that may help clarify exactly where this handbasket is heading.

Notice, the key phrase right at the beginning of this promotional video, “many prize experiences above possessions.”  Compare that statement to, “you will own nothing and be happy.”  Notice the similarity?

BlackRock and the ever-mysterious Vanguard are the largest financial institutions in the world, with investment assets under management that far exceed the GDP of every country.  They are, quite frankly, the vault behind the World Economic Forum, and combined they hold sway in almost everything that happens in the geopolitical world.

As we look at the speed of our increasingly changing world, it is important to remember two key phrases CTH often repeats. First, ‘there are trillions at stake’, and second, ‘everything that happens is about the economics.’

If we stand back and look at the activity, not the expressed ideological framework, but the actual reality of what BlackRock is doing – amid a world where they are purchasing physical assets at an astonishing rate – something does become clearer.

While BlackRock is espousing a world where people “prize experiences above possessions”, and they position themselves as an investment group to finance and profit from that worldview, at the same time BlackRock itself is purchasing physical assets (lots of real estate) for themselves.

Stand back and look at the biggest of the big pictures.

A Build Back Better society, or “great reset”, is factually underway as triggered by the gateway of SARS-CoV-2 and the massive spending by western nations to subsidize the lockdowns, shut-downs, economic closures and forced unemployment.

Global inflation is being driven not only by the American spending spree, but also by the massive government spending programs of the EU, U.K, New Zealand, Australia, Canada and many western nations.

The bills for those subsidies and bailouts are due.  The labor of the citizens is going to have to pay those bills, while simultaneously we deal with inflation and massive debt balances on all nations’ balance sheets.

Into this mix comes the very real possibility of a declining U.S. trade dollar, as a result of geopolitical conflict between the west and Russia, China, Iran and OPEC in the geography of Ukraine.   The financial sanctions by NATO and western allies have factually created a rift in currency exchange valuations.

As the proverbial west hammers those sanctions even harder and more deliberately, what they are doing is creating a stronger and greater likelihood that the dollar will be removed as the global trade currency, and we will enter a phase where two sets of nations exist:

One set of nations will run their economy on oil, gas and fossil fuels.  The other set of nations will be focused on running their economic engine on the premise of sustainability, or renewable energy.

The sanctions toward Russia actually help to drive this chasm even wider.

To me, this looks entirely purposeful – done by specific intent and design.

Two world groupings.  One group, oil-based energy (traditional) – let’s label them the RED GROUP; and one group GREEN energy (the build back better plan).  It is not accidental these two groups hold similar internal geopolitical views and perspectives.

♦ The important part to see is… there are going to be two sets of nations with two structurally different economies. A red group and a green group.

These two groups are going to end up in competition with each other.  It is as inevitable as sunrise, if you can see this cleaving I am talking about.

Now, think about the economic system of trade that exists between the Red and Green groups.  There has to be a way for them to exchange value if they are going to purchase from and sell to each other.

Additionally, and this is *key*, the Red group is going to have a strong strategic advantage in production costs.  The Red group is going to be using oil, coal and gas (fossil fuels), which are abundant, cheap and the infrastructure is already in place.

The Green group is going to be at a strong disadvantage, at least for a generation or two, as the costs associated with the production of goods and systems is going to be much more expensive to operate, as the transition into Build Back Better sustainable or renewable energy takes place.

In the macro view, stuff from the Red group is going to be cheap.  The exact same stuff from the Green group is going to be more expensive.

If you are still with me, hopefully, you can see how this is all coming together.

♦ The western debt incurred during COVID-19 is a problem.  However, this debt diminishes with inflation.  A $20 trillion debt is not as big a problem when bread costs $100/loaf and people are earning $50,000 a month.   The Green group is entering into this position.  In this position, the BlackRock approach of physical ownership of real estate and physical stuff is way more important than holding money or dollars which will immediately lose value.  Physical ownership of stuff is important.

♦ It is likely, based on the economic alignment, the Green group will be forced to assemble under one currency (set of financial valuations), and the Red group will then assemble under their own currency (set of financial valuations).  My hunch is the western group (green) will use a digital currency.

Once both sets of currencies are established, then trade between the Red group and Green group can be determined based on a central valuation done by, say, The World Bank.   In the Red group, a 20″ tire is worth 100 red bucks.  In the Green group, a 20″ tire is worth 150 digital green bucks.  Two vaults and two exchanges.

In order for all of this to come together, the population needs to be shifted in their perspective of money and material value.   That takes us back to where this conversation started: “owning nothing and being happy” is akin to “prizing experiences over possessions.”

The Western (green) financial mega-system operators are going to own the physical assets, and the people will live under that ownership.  In the Red group, that system -essentially- already exists.