Australia and India Form an Alliance to Lessen Reliance on China


rmstrong Economics Blog/World Trade Re-Posted May 5, 2022 by Martin Armstrong

Trade tension between China and Australia has hit a new peak, with Australia now seeking to limit trade with China entirely. Former Australian Prime Minister Tony Abbott said that India will replace China in trade. “For economic reasons, we’re gonna [sic] have to replace China in supply chains and frankly, there is no better substitute for China and so many of their supply chains than India, given India’s very sophisticated manufacturing base,” Abbott stated.

Abbott accused China of “weaponizing trade” and “bribing or bullying other countries around the region.” Australia is now aiming for a $100 billion bilateral trade deal with India. India and Australia entered a free trade agreement in April entitled the “Australia-India Economic Cooperation and Trade Agreement” (ECTA) after over a decade of negotiations. The deal will increase trade between the nations from $27.5 billion in 2021 to $45 billion over the next five years. The agreement also seeks to increase duty-free imports on Indian products and eliminate over 85% of tariffs on Australian goods to India.

China blocked Australian imports during COVID after politicians requested an independent review of the Wuhan virus leak. China later allowed Australian goods to enter the country but increased tariffs significantly. The two nations withdrew from major projects shortly after, such as China’s Belt and Road Initiative.

China recently shut down its largest port and has been contributing to the supply chain crisis. They have had notoriously difficult trade negotiations with most of their largest trading partners. Although the models indicate China will eventually become the financial capital of the world, the road there will be a long one.

A Realist Analysis of Global Temperature


And Carbon Dioxide, CO2 Levels

Way too much effort has been put into a non-issue in regards to extreme climate change; because the planet’s climate has never been constant since the planet was formed. In general, the temperatures have run from 12 degree C to 22 degrees C with the average around 17 degrees C. Since we are now around 15 degrees C, which is on the cold side of the average, it’s hard for me to see where the problem is. Especially, since more people die from the cold weather then the hot weather and current temperatures are below normal and therefore not a threat.

Then we have CO2 which has run from a high of around 7,000 ppm around 500 million years ago to 420 ppm today, again historically very, very low. And there does not seem to be any correlation between the two. In fact, if you look at the last 65 million years the CO2 dropped from around 800 ppm to below 200 ppm and temperature dropped form 22 degrees C to around 12 degree C around 1650.  But then CO2 had been dropping for over 100 million year so where is the correlation?

So now, let’s look at the more current climate. But before we can do that, we must look at where all our information comes from. CO2 started to be actually tracked by NOAA in 1958. Their website is https://gml.noaa.gov/ccgg/trends/ and the CO2 levels are published monthly. There is an annual cycle to the CO2 levels, as in the summer, in the northern hemisphere the CO2 levels go down as the vegetation uses the CO2 as food. Then in the winter, we burn lots of carbon based fuels for heating and the levels go back up. Local temperatures have been recorded since the time of the U. S. civil war but they have only been turned into a global temperature going back to 1880 recently with modern computers by NASA. The estimated global temperatures can be found at https://data.giss.nasa.gov/gistemp/  in their table Land Ocean Temperature Index (LOTI) in text or CSV format. However, they are not published as a temperature but as an anomaly from the average temperature from 1950 to 1980 estimated to be 14 Degrees C. which is odd since it’s in the middle of the range that we are looking at which is not a good practice statistically. The reason I say this is that the calculated global temperatures are re-calculated every month as adjustments are made to the software. The process used in called Homogenization by NASA. 

To get the anomaly, you would take the current temperature, say 14.8 degrees C and subtract 14 degrees C leaving .8 degrees C and then multiple that by 100 to give you an anomaly of 80. The NASA LOTI table shows that value for every month from the current back to January 1880. I don’t understand why this is done like that nor why they don’t use kelvin like everyone else would use doing research on the quantity of heat in a subject material. I guess it’s because the temperature changes are so small that it’s hard to show a change relevant to the subject as 80 looks a lot bigger than .8 but we have to work with what we are given. For example, 14.8 degrees C divided by 14.0 degrees C equals 5.7% and 287.95 degrees K divided by 286.15 degrees K = 1.0%. A Note, Kelvin or K is used when making these kinds of calculation is science and engineering.

I have all these values in an Excel spreadsheet in column format by month from the current year back to September 2012, Sadly I didn’t keep the ones back to when I started in 2007 since I didn’t realize, back then, that the values in the table were not fixed and there were changes in them as NASA modified the process used to calculated all the values. There are presently 1,707 values in the LOTI table.

We use the NOAA Co2 value starting in 1958, as is, then use the NASA anomalies from 1958 with an adjustment to determine if there is a reasonable correlation between the two over time. The method used was to create a monthly percent increase for each since 1958 the NOAA data is useable as published. The NASA anomalies need to be adjusted as they don’t represent the actual heat in the atmosphere. The base has to be absolute zero 273.15 K (Kelvin) so we can determine the actual increase in thermal energy in the atmosphere. That is a straight forward calculation which needs no description. Once we have the monthly temperature in degree kelvin, we then calculate the increase in thermal energy from 1958 to the present.

The comparison is then very simple. The first plot shown below as the black plot is the monthly CO2 level in the atmosphere as a percentage increase from 1958. The annual cycle is clearly shown in the Chart. The blue plot is the trend line with a excellent fit with a geometric increase that shows there has been no slowdown in the increase. The equation for the trend is shown in red. The second plot shown below in red (hard to see here) is the monthly heat value of the atmosphere in Kelvin and as percentage increase from 1958 just like CO2. The yellow heat content plot is the trend line with a reasonable fit and the equation for it is shown red at the bottom of the chart. The scales on the chart axes are the same for both plots 95%5 to 150%, so the relationships are correct.

Now since it’s kind of hard to see the temperature changes on Chart 8a as they are so small let’s change the scale on the chart and make a new chart. The new Chart is Chart 8 and the scale on the right side is from 95% 105% the scale on the left side is the same at 95% to 150%. With that change, we can see some movement as shown in Chart 8 on the next page. When you compare the two Charts, you can also see how easy it is to make something look like it is something else.

 This chart shows that if nothing changes from what it is now, by 2038 CO2 will have gone up by 145% and the heat in the atmosphere only .5% and that’s both from the base of 1958. Since we are told that the base is 14 degrees C which is actually 387.15 degrees Kelvin, 100.5% will only be 288.6 degrees Kelvin or around 15.5 degrees C. That is still nowhere near the historic average of 17.0 degree s C.

There is however, scientific evidence that this is probably relatively close to what the physics is predicting as what is shown in a paper written by W. A. Wijngaarden and W. Happer and published on June 8 2020 titled Dependence id Earth’s Thermal Radiation on Five Most Abundant Greenhouse Gases. It’s a 38 page work with significant ramifications to the validity of the IPCC climate change narrative. The bottom line to this scientific study is that there is NO DANGER to additional CO2 in the earth’s atmosphere. Any warming that might be caused by CO2 has for the most part already been accounted for.  Page 13 from that paper, shown on the next page, clearly shows that the sun’s radiation absorption bands for CO2 are now saturated and there will be no additional effect. The green line is no CO2, the black line is the correct level of CO2, and the red line is double the current level of CO2. As can be clearly seen the black and red lines are virtually identical. In other words, the absorption bands of water in the atmosphere are saturated by the CO2 level around 400 ppm so that even if CO2 goes to 800 ppm it will have little to no effect on global temperature.

In summary, we have shown using two methods that CO2 is not a danger but we will be in great danger if we really try to get rid of Fossil fuels. There are three reasons for this assessment that a realistic engineering assessment of switching from fossil fuels to Solar PV and Wind power is just not realistic.

First, the Green power generation required to replace the existing fossil fuel power generating capacity exceeds the “scarce” raw materials available on the planet to make and maintain them. As shown in the next, three reasons.

Second, the life spans of solar PV and wind power devices are “significantly” less than conventional power plants. So they will need to be replaced constantly.  

Third, Solar PV and Wind are both intermittent sources and are not suitable for base load power at the levels required for an advanced technology based economy. The amount of batteries required to smooth the load are also of a relatively short life and would be to be replaced constantly.

Four, The locations for solar PV and Wind generation are generally not were the needs are and they are all in different time zones the Transmission grid will need to be significantly  increased to allow for the high voltage flows over long distances.

Then there is the fact that CO2 levels are now below optimum for plant life to use photosynthesis efficiently; the chemical process of converting sun light and CO2 into sugars to make the food they need to grow. CO2 levels above 1,000 ppm would be desirable and anything below 300 ppm CO2 is risky as planets need a minimum of 180/200 ppm CO2 or they die. 

Joe Biden, “This MAGA crowd is really the most extreme political organization that’s existed in American history”


Posted originally on the conservative tree house on May 4, 2022 

The democrat narrative for 2022 is from the exact same playbook used against the Tea Party in 2011/2012.  Weaponizing the J6 committee to frame the construct this year, democrats are back to the playbook of calling their opposition “extremists.”

After resounding MAGA candidates won all the contested primary elections yesterday, Joe Biden takes to the microphones today and says:

…”this MAGA crowd is really the most extreme political organization that’s existed in American history.”

WATCH (prompted):

[Transcript of Remarks]

Sweden – Manipulation or Enhancing a Move?


Armstrong Economics Blog/Basic Concepts Re-Posted May 3, 2022 by Martin Armstrong

QUESTION: Marty, Socrates correctly projected the claimed Citibank manipulation of Monday in Sweden. It wrote: “The strongest target in the Daily array is Mon. 2nd for a turning point ahead, at least on a closing basis. There are 4 Daily Directional Change targets starting from Mon. 2nd to Fri. 6th suggesting a choppy coiling period for 3 Days. I”

How did Socrates project this and then showed it would bounce with another Directional Change? Was it really a manipulation? Citigroup did confirm that it played a role in yesterday’s flash crash. They released a statement: “This morning one of our traders made an error when inputting a transaction. Within minutes, we identified the error and corrected it.” The exchange refused to cancel the trades. This is confusing for it was not beyond the parameters that Socrates laid out including the technical analysis.

Any clarification would be interesting.

All the best

JM

ANSWER: I understand that the common definition of manipulation is simply a big move. To me, this was NOT a manipulation. My definition is moving a market COUNTER-TREND which this was not. Yes, Socrates projected that Monday the 2nd would be a low and that the Directional Changes back to back suggested it would be more of a knee-jerk reaction rather than a change in trend. The array showed the biggest target would be Monday, May 2nd.

There had been low volume. Thus, if it was a mistake, a smaller amount of selling could have a greater impact. However, it still did not move beyond the parameters of the trend as pre-defined by Socrates. Even the technical analysis that the computer does itself showed that this was NOT outside the norm. I appreciate that everyone will jump on this as a “manipulation” but that is just not the case. Manipulation is something that MUST simply be COUNTER-TREND. Making a market move in the direction of the trend in a spike manner is NOT a manipulation. At best, this is ENHANCING a move within its trend. But it is not a manipulation.

Why is CASH King in Times of War?


Armstrong Economics Blog/USD $ Re-Posted May 3, 2022 by Martin Armstrong

COMMENT: Dear Martin,

So refreshing to see some theory regarding silver other than crazy goldbugs claiming JP Morgan artificially putting down t silver prices for XX years. Still what I find interesting is the weakness of the US stock market. Bonds getting dumped, Precious Metals getting dumped, EM’s getting dumped so everyone is just holding USD as cash? Take care.

Best,
Sant

ANSWER: In times of war, UNCERTAINTY is always dominant. It is interesting that the Romans’ Temple of Janus had two doors, and in times of war they were left open, symbolizing that the future was uncertain. Hence, the winds of war could pass freely through the temple, warning they could also lose. During times of peace, the doors were closed, symbolizing security. This is why CASH becomes king in times of war. Even the ancient coin hoards are typically stashed during times of war.

While some think that the Cuban Missile Crisis was when Kennedy took the nuclear deterrent to direct confrontation with Russia rather than attacking Cuba, I suggest that they look at the film the “Courier.” Kennedy did not reject the advice of his advisors to bomb Cuba, there was information flowing from a Russian dissenter who was concerned about nuclear war and the ideology of Khrushchev that communism would conquer the world. This is a totally different time. Putin is not a Communist, and he has no desire to conquer the world with an economic theory. Kennedy was following the advice of his advisers, who were NOT advocating to bomb Cuba. They knew they were fighting against an economic theory to conquer the world, which ironically is the objective of the World Economic Forum and Klaus Schwab.

Freezing assets as Biden has done to all Russians is unproductive. Nobody seems to have ever asked, “Have sanctions ever worked?” On July 24, 1941, Tokyo decided to strengthen its position in terms of its invasion of China by moving through Southeast Asia. On July 26, 1941, President Franklin Roosevelt seized all Japanese assets in the United States in retaliation for the Japanese occupation of French Indo-China. That was followed by Pearl Harbor less than five months later. It seems that our leaders are deliberately pushing the world into war. They need to justify the collapse in their fiscal mismanagement of the global economic system.

The dollar rose during World War I and during the Great Depression when most of Europe defaulted on its debt in 1931. The dollar spiked higher in 1940, but then the US government imposed controls during World War II. They even instructed the Fed to buy US debt at par which they finally rejected in 1951. Note that once the controls were lifted, the dollar soared again post-war.

The dollar on a CASH basis has been the safe haven during war, mainly when the rest of the world is collapsing. This war will NOT be a rerun of the last two. Moving to digital currencies will be the kiss of death and render the financial system completely vulnerable to cyber attacks. The last time, there was counterfeiting of an opponent’s currency to undermine its ability to fund its defense. Even the British were counterfeiting the Continental Currency during the American Revolution.

Boris Johnson’s Stupidity – Who is the Only Statesman Standing?


Armstrong Economics Blog/Russia Re-Posted May 2, 2022 by Martin Armstrong

Russia TV called out Borris Johnson for threatening to launch nuclear weapons against Russia. As they aptly warned that Borris has simply lost his mind that the UK is a very small island and one long-range nuclear weapon will wipe out the UK from the face of the planet. They also point out that they can simply detonate one offshore that would create a tsunami that would also wipe out the UK.

As one reader pointed out, strategic nukes and tactical nukes are different in classical terms of “strategy” and “tactics”. The long-range strategic nukes are long-range (ICBMs, SLBMs, BTW launched, etc.) and generally used for a large-scale assault, whereas tactical nukes are short-range (smaller artillery-launched) and less powerful (relatively speaking, of course). Russia could use a tactical nuke and wipe out Kyiv without destroying the entire country. That would at least shut up Zelensky and he will never get to spend the $850 million he has already allegedly stolen post-war with the blood of his own people to keep the money flowing which he is stuffing offshore in the traditional fashion of Ukrainian politicians. In the US, they go in broke and leave as millionaires. In Ukraine, they strive to leave as billionaires.

Russia is correct that just one nuke would wipe out Britain and Scotland. Just what the hell is going on here with these braindead leaders in the West is unimaginable. I spoke with a Congressman this morning and the sad state of affairs was that I was told that there is little expertise on Capitol Hill for the cold war generation seems to have retired. That is not helped when we have a senile President who seems to be rambling and will simply sign whatever they stick in front of him and needs the Easter Bunny to direct him and turns to shake hands with people who are not there.

Nobody wants to discuss the fact that Kyiv sent its army to begin the Civil War against Donbas on April 15th, 2014. It was called the “Anti-terrorist operation.” I have stated that I have personally known people on both sides from Kyiv and Donestk. I have listened to the sheer hatred of Russians that stems from the days of Stalin who killed 7 million Ukrainians by starvation (see the film Mr. Jones). It is understandable that Ukrainians would hate Russians and that includes those in the Donbas. Likewise, the ethnic Russians in the Donbas feel oppressed and hated based entirely on their ethnicity. Bute the Western Neocons just hate Russians so their story of Donbas is never told in the Western press.

As I have pointed out, the Russian scholars have been debating this issue for decades trying to answer the questions (1) who is Russian and (2) what is the territory of Russia. Stalin was not Russia – he was Georgian. Lenin wanted to maintain the USSR and the Russian Empire which each state retaining its sovereignty. Stalin disagreed and demanded USSR be one country and terminated Lenin’s idea of a quasi-United States of Russia.

Putin has cancer and he is undergoing surgery. His number 2 is Nikolai Patrushev who is much more hard-right than Putin. I am deeply concerned that Putin may not make it to 2024 and if that is the case, these insults the West keeps hurling at Russia have not only severed all relations, and the direct phone line set up after the Cuban Missile Crisis t was to ensure that the leaders could always communicate to avoid war. Biden has virtually thrown the phone out the window.

Despite all the propaganda that demonizes Putin, those behind him are FAR WORSE for they are no different than the Neocons in America who just cannot sleep at night as long as Americans are still breathing. Our war cycle post-2024 appears to be the worse period. I fear that Putin will no longer be in charge and then we will see the real rage of Russia and how it has been treated by Biden and Europe. Russia will celebrate defeating the German Nazis on May 9th.

As Glen Greenwald pointed out on Twitter, “Noam Chomsky, in an interview this week, says “fortunately” there is “one Western statesman of stature” who is pushing for a diplomatic solution to the war in Ukraine rather than looking for ways to fuel and prolong it. “His name is Donald J. Trump,” Chomsky says. ” Indeed, in my discussions, ironically there seems to be ONLY one statement still standing and that is Donald Trump. All we have a war-mongers cheering on World War III. Not a single world leader is interested whatsoever in world peace. They have all deliberately lied about what the Ukrainians have been doing against the ethnic Russians for they have killed over 6,000 civilians in this relentless war. Nobody can now stand up and even acknowledge that Putin was not lying or that he was even the slightest bit correct. Nobody will talk about Zelensky and how he has now polarized the Middle East as well as fueled the old hatred against the Jews. If you have not noticed, the countries surrounding Israel are aligning with Russia, not the USA and the EU.

Trudeau Admits He Does Not Understand Basic Math


Armstrong Economics Blog/Canada Re-Posted Apr 27, 2022 by Martin Armstrong

In an old video that has resurfaced from Justin Trudeau’s days as a West Point Great Academy teacher, the now prime minister admitted that he struggles with basic math. “I have a slight learning disability…that was never addressed,” the 29-year-old teacher stated. “I am dysnumeric,” Trudeau said after self-diagnosing why he cannot understand small math problems. Trudeau said that his learning disability did not prevent him from later teaching children mathematics. “Dysnumeric” is not a medical term, although there are learning disorders involving numbers.

Trudeau admitted he could not remember phone numbers. He said that he was still unsure of his multiplication tables.

Ironically, Trudeau says, “Questioning as a skill is not taught anymore.” Perhaps it is so that tyrants like Trudeau can invoke martial law over a peaceful protest and shriek at people to stay inside and trust the ever-changing “science.” Feasibly his revelation explains why he thought only a “fringe minority” of Canadians wanted to escape his COVID restrictions. He goes on to say that he also does not understand computers, but that his skill is teaching the youth how to think. “It’s not about teaching facts anymore,” he admitted years ago. It is about manipulating the people to trust what government claims is factual and implementing penalties for anyone who questions the status quo. It is no wonder that Schwab scooped Trudeau up to be one of his Young Leaders.

Major Riots Against Macron Throughout France Over Questionable Election


Armstrong Economics Blog/France Re-Posted Apr 25, 2022 by Martin Armstrong

There are major riots in just about every city in France over the validity of the election.  Police are breaking up protests by using teargas on civilians. The youth especially are protesting for Macron wants to create an EU army and that will inevitably lead to drafts.

Macron Won – One Giant Step toward World War III


Armstrong Economics Blog/France Re-Posted Apr 24, 2022 by Martin Armstrong

Of course, Macron won amid allegations of vote tampering. If a ballot was torn in any way, which seems to have been those of Le Pen, they were just discarded. There was NO POSSIBLE WAY that the EU would have allowed Le Pen to win for she would have upset the EU and gone against this madness of creating a war with Russia to cover up the collapse in the monetary system thanks to 8+ years of negative interest rates.

The Die is Cast. Europe is headed into self-destruction. Meanwhile, the UK press is looking at putting on sanctions against Germany because they are still relying on Russian gas. We have the most braindead crop of world leaders in human history. Not a single one will bother to understand how world peace is actually accomplished.

While Rome conquered the known world, they quickly saw the benefits of being part of the Roman Empire – free trade! The conquered lands all began to sell local products to Rome and Romans were quick to invest in the newly conquered regions. It was economics that made Rome great. That is precisely what is being torn apart here dividing the world and in the process raising the threat of war.

This coin of Augustus (27BC-14AD) shows a conquered barbarian handing a child representing their nation to Augustus symbolizing their subservient posture to the Roman Empire. Cutting off Russia and hinting about sanctions against China and now against Germany for buying Russian energy is the precise way to create a world war. When there is no benefit in working together, then there is no reason for peaceful relations.

NEVER in my life have I ever witnessed such stupidity among world leaders. And just for the record, Putin is by far the ONLY rational leader. Those behind him think he has been too “SOFT” on Ukraine and he should have nuked Kyiv and then pound his chest asking who is next? There are those who would not hesitate to win for they already view this as a war with NATO and the United States using Ukrainians to try to weaken Russia for the kill. Hillary has even said so much.

The Dnieper River was the border of Ukraine as well as Belarus. It never included the east that was always Russia going back to the Russian Empire. Merely because the USSR assigned that region to Kyiv for administration did not transform ethnic Russians into Ukrainians. Naturally, some people just want to blame Russia and say they invaded without any discussion of the antics of the West or Zelensky which have deliberately provoked this war. The financial system was collapsing thanks to negative interest rates that have wiped out the European bond markets. They NEED this war to hide their decades of fiscal mismanagement.

This is a war simply intended to defeat Russia. Zelensky not only was elected under false pretenses promising peace and the end of corruption, but he has even waged war on the Russian religion like Henry VIII trying to seize all churches and eliminate Moscow and the Patriarch appointing all authority to Ukraine.

For this, those writing the scripts for Biden to deliver have destroyed the world economy and reversed all the world peace efforts since Kennedy and Nixon’s effort to divide China and Russia. All for what exactly? Climate Change or the real issue – the collapse of Keynesian Economics?

It is a shame that far too many Ukrainians are being used as pawns in this war. The more killed, the better. When the history of this period is written, we will see that the media has been creating this war just as they created the Spanish American War. The father of yellow journalism, Joseph Pulitzer (1847-1911), made his fortune by creating a fake war to sell more newspapers.

Perhaps the press is desperate for the same motive. CNN+ was a disaster and is being shut down. They had less viewership than even this blog. Perhaps CNN desperately needs war with blood in the streets to regain their viewership from the days of the Gulf War?

Pulitzer made his money by spilling the blood and guts of young Americans. Perhaps he felt guilty and left his estate to create the Pulitzer Prize for honest journalism – what a joke,

I was on the water over the weekend and the number of houses flying the Ukrainian flag warns that there will be support for World War III for these people have no clue that they have been manipulated into a position to support the real agenda.

French Presidential Election Today, Emmanuel Macron vs Marine Le Pen


Posted originally on the conservative tree house on April 24, 2022 | Sundance 

The biggest election with global significance is taking place today in France as Marine Le Pen (economic nationalist) challenges current President Emmanuel Macron (economic globalist).  The world is watching this one, because if Le Pen can win it would be seismic in political consequence.

Current voter turnout is recorded as moderate (63% range) with rural areas running higher turnout than urban areas.  Forecasters were predicting around 71% voter turnout.   GBNews is on the ground with a report:

Marine Le Pen is a long shot.  If she wins it would be massive.

We will not know the early results for a few more hours, around 4pm ET.  Some other data below…..

P