Category World Economic Form

Jul 12 2016

2000 Refugees Sexually Assaulted 1200 German Girls on New Year’s Eve


Armstrong Economics Blog

Re-Posted Jul 12, 2016 by Martin Armstrong

Cologne Rapes 1-1-2016

dO nOT tOUCH mEThe refugee crisis in Europe is a real nightmare and the politicians are desperate to hide what is going on. The first incident of sexual assault that finally made the world news was in Cologne, Germany, on New Year’s Eve. Now, a leaked document has surfaced reporting that 2,000 men assaulted and raped 1,200 girls across Germany on New Year’s Eve. This illustrates how politicians would rather put 15-year-old girls at risk of rape than admit that they were seriously wrong.

Initially, there was dead silence from officials and the press was not reporting the truth after joining the cover-up conspiracy. Only after reports hit the internet (we even had clients contacting us) did the truth begin to surface. Then the police were told to remove the word “RAPE” from all reports on the Cologne attacks. Then, Police Chief Wolfgang Albers, age 60, was fired after criticism of the police’s lack of involvement during the incident.

Wolfgang_Schaeuble_1-15-2016German Finance Minister Schäuble is touted to replace Merkel. Like other politicians of his age, he too is just in a state of denial. Despite the fact that 2/3 of Germans are fed up with Merkel over the immigration issue, Schäuble is calling for more immigration into Europe. Otherwise, Europe will“degenerate into [an] inbred” continent.

Once a career politician has an idea in their head, they will defend it to the end. I suppose this is why they defend the refugees when they rape European girls.

Germany-How-2-Get-LuckyWell, when a politician refuses to admit  a mistake, what do you do? You go all the way. Believe it or not, Germany is creating flirting courses to help refugee men get lucky. Yes, taxpayer money is now being used to get the refugees lucky with German girls. So if you thought you have seen it all, well, the insanity never ends. There is always room for more when politicians are involved.

We are looking at a major crisis in Europe.

Jul 12 2016

Since When are Pakistani Boys Qualified Refugees from Syria?


Armstrong Economics Blog

Re-Posted Jul 12, 2016 by Martin Armstrong

Refugeee Welcome

The cover-up of refugees assaulting Swedish girls continues. Police are protecting politicians who refuse to admit what they have done. If you were of any other origin, you would be thrown in prison. Refugees are just ignored and the girls, some as young as 15, are blamed. Now, one girl who is just 17  has spoken out to expose that at least 35 teenage girls were attacked by a mob of ‘foreign youths’ at a Swedish music festival.

In Germany, at least 26 women reported being sexually harassed or assaulted at the Schlossgrabenfest music festival. The police said three “Pakistani” men aged 28 to 31, at least two of them asylum seekers, were arrested at that four-day, open-air event. Since when are Pakistani refugees from Syria? The politicians should be forced to suffer what they are exposing others to these days.

Jul 11 2016

Civil Unrest Explodes in Berlin Over 3500 People Riot Against Police


Armstrong Economics Blog

Re-Posted Jul 11, 2016 by Martin Armstrong

German Riots

Civil Unrest is exploding. The biggest and most violent protest in Germany erupted in Berlin over the weekend exactly with our models calling for an explosion in civil unrest. Some 1800 police were called in and at least 120 policemen were injured in what is becoming a street battle. This has been the most aggressive and violent protest in Germany for the past five years. Protesters were throwing bottles, cobblestones and fireworks, as well as they destroyed cars in addition to attacking police officers. It appears at least 3,500 rioters took part in the uprising and possibly more than 4,000.

The protest is against police operations and involved mostly young people who have risen up against the police operations in the Riga street area. Protesters wore black hoods carrying banners with slogans like “Riga defend 94” and “Housing solidarity against state terror.” The demonstration went on with the crowd chanting repeatedly: “Bullenschweine get out of Riga!” Demonstrators were throwing firecrackers and police fired back with tear gas. The police also called in air support using helicopters and they had to call in for reinforcements from Bavaria, Brandenburg, Lower Saxony, Saxony, Saxony-Anhalt, Thuringia and the Federal Police. Interior Senator Frank Henkel (CDU) announced that the police will also be present at night after the demonstration. So riots and arson attacks should be stopped.

Jul 11 2016

The Euro on the Brink of Disaster


Armstrong Economics Blog

Re-Posted Jul 11, 2016 by Martin Armstrong

Euro Sinking

 

Euro HangingWe are looking at the collapse of Europe unfold much faster than anyone suspected. I have been warning that the Continental EU banks are in serious trouble. The negative interest rates have devastated Europe. While trying to stimulate borrowers who are not interested without an opportunity to make money, the ECB has wiped out savers, pensions, and sent cash into hiding contracting the European economy – not stimulating it. I have also warned that it is the EURO which is in serious trouble and that BREXIT was the only way to save Britain from being dragged down under as the Euro sinks.

The Italian banks are collapsing and the crisis is now risking bringing down the Italian government. If they do not bailout the banks, the people will be in revolution. If they bailout the banks, they can only print Euros. The is starting to illustrate what I have been warning about. The EURO is in effect like a gold standard. When crisis hit, everyone had to suspend the gold standard for World Wars I and II and then upon the fall of Bretton Woods. The currencies were tied to gold which they could not increase its supply. This is the same crisis now with the EURO. Despite the EURO is really just electronic/paper, its quantity is still fixed by the EU membership. No single member state can just increase its supply unilaterally. That would be like trying to maintain a gold standard and one nation revalued its gold to three times that of what everyone else uses. That becomes impossible. The Silver Democrats nearly caused the bankruptcy of the USA for overvaluing silver relative to the world in the 19th century.

This is why the euro CANNOT SURVIVE. You have sovereign states with their own crisis and that demand measures separate and distinct from other members. This is how the euro system will break. It is extremely urgent that you understand the crisis ahead. This is what will send capital fleeing into the dollar. True, some will buy gold. That is generally retail investors. Pension funds and institutional investors will buy US government bonds, dollars and park them at the Fed, or jump in with both feet into the US stock market.

By the time this mess comes unraveled, we will see the world completely change. We are probably looking at a major world monetary reform come as early as 2018. The speed with which this is unfolding is rather incredible

Jul 9 2016

Just Shut up & Pay a TV Tax — So What if You Don’t Have One!


Armstrong Economics Blog

Re-Posted Jul 9, 2016 by Martin Armstrong

German Federal Supreme Court

Franklin-TaxesWhen it comes to taxes, just shut up and pay. It does not matter what the “intent” is — just pay. The German High Court upheld a broadcasting tax that requires everyone to pay for TV and radio. It seemed logical to question why someone should pay the tax if they do not own a TV or radio. Makes sense, but not to the German High Court. Everyone has to pay the tax even if you protest, do not own a TV or radio, and get everything from the internet. Hey, who ever said taxes were logical?

Of course, this brings to mind the words of Benjamin Franklin that the two things which are always certain are death and taxes.

Jul 7 2016

Governments Keep Their Fingers-Crossed


Armstrong Economics Blog

Re-Posted Jul 7, 2016 by Martin Armstrong

Fingers-Crossed-r

We must face the fact that we are in a slowing global economy and government simply have their fingers-crossed hoping thius nightmare just corrects itself. There is massive slowing of real income in Europe and the OECD has commented that this is creating a serious political problem for governments moving forward. Central Banks cannot stimulate because at the same time, we face a major crisis in government where their pensions are crowding out all private sector growth. The after-effects of BREXIT, then the USA Presidential election, and the elections in France and then Germany, are just the tip of the Iceberg so to speak because we face a future that is anything but stable. Interestingly, now six countries are looking at potential referendums in addition to the potential resurrection of Scottish Independence as well as Ireland. The response of Brussels has been to usher in revisions to cut off any right for other countries to hold referendums to leave the EU.

Jul 4 2016

Nigel Farage Resigns as Head of UKIP


Armstrong Economics Blog

Re-Posted Jul 4, 2016 by Martin Armstrong

Farage Vote to Leave

It is a shame, but Nigel Farage is standing down as leader of the UK Independence Party. Nigel came from the real world and never had a desire to be a career politician. He has stated that he had done his “bit” following the UK’s referendum vote to leave the EU. “The victory for the ‘Leave’ side in the referendum means that my political ambition has been achieved.” He said that leading the UKIP was “tough at times” but “all worth it.” He added that Britain now needs a “Brexit prime minister.” He continued: “I have never been, and I have never wanted to be, a career politician. My aim in being in politics was to get Britain out of the European Union.”  He added: “So I feel it’s right that I should now stand aside as leader of UKIP”.

Meanwhile, Tony Blair, the ultimate anti-democratic politician, keep saying that more than 1 million people have changed their minds and Britain should not go through with BREXIT. He would even surrender the Queen. He is living the Euro dream would would surrender the pound and all independence to enslave the British to a new government they could never have a right to vote in to ever change. People like him just assume to know what’s best that career politicians should rule and the people are too stupid to have any influence.

Nigel will be sorely missed. It is a personal battle, absolutely. But with people like Blair hanging around in the wings, the job may not be done to save Britain. It is the people who love telling every one else what they will be allowed to do who want power, and will never resign it. These career politicians are no different than any monarch who also abused the people – let them eat cake!

Jul 4 2016

Declining Pound Savior of Britain


Armstrong Economics Blog

Re-Posted Jul 4, 2016 by Martin Armstrong

IBBPVA-W 7-3-2016

QUESTION: Marty
It looks like Carney and Osborne are talking the pound down in order to frighten people.

Only one of their prophesies have come true – the lower value of sterling.
But it is unhelpful that they continue to be negative – even though they’ve proved to have been wrong on all the other things [cost of borrowing, asset prices, the UK deficit, cancellation of investments].

I fear [being a Brit] that too much unwarranted negativity from their position of power will take the pound down too far. Do you agree that can achieve that and that they, representing the establishment, are trying to win back some of the lost ground? I would say that is treason [not to carney as he’s a Canadian. I’d tell him to go home].

Thanks
JF, Manchester

ANSWER: The reason “value” investing and “fair value” theories fail is because markets ALWAYS over shoot and under shoot. Our next real zone for the pound is in the mid 120 level. However, ironically, European concepts of currency value is SERIOUSLY WRONG. Post-World War II, European politicians used the rise in their currencies as proof that they did a good job. That installed this concept that a strong currency was good for the economy which in fact if you are concerned about trade, you want a weak currency. The entire reason the Swiss put a peg on to the euro was because the rise in the franc was reducing exports and major companies threatened to leave.

Mother-MerkelThe decline in the pound will BOOST British exports and have exactly the opposite effect helping the British economy. The EU is doomed. Over taxes, over regulated and it has no meaningful democratic process. Worse still, just as Merkel by herself tried to help her negative image because of her harsh dealings with Greece wanted to appear reasonable, she invited the refugees in without any right of other countries to object. She made a decision as Germany, but it automatically impacts all of Europe. Under the EU, no such power should be allowed if all governments must suffer because of one leader.

The pound will drop to penetrate the $1 par level probably no later than 2018. With the political chaos of French and German elections next year, that decline can take place sooner than later. But this is what will force a monetary reform as early as 2018. The rise in the dollar will reduce US exports and that will put political pressure in the States for reform not to mention a debt crisis in emerging markets.

The peak in bonds appears to be in place. We are seeing the rates rise already in the peripheral markets. This will spread from the peripherals in toward the core. So Southern European rates will rise faster than German but when capital figures out the crisis is the EU, then German rates will rise. The Federal rates in the USA will be the LAST to rise because the initial shock will be foreign capital fleeing to the States.

The remarks of British politicians are to be seen in their context of this false perception that a strong currency is good. You hear Trump criticizing China as a “currency manipulator” implying they lower the value of their currency to increase trade. As the pound declines, this will save British jobs – it’s a good thing; not bad.

Jul 3 2016

BREXIT: INDEPENDENCE DAY


Published on Jul 3, 2016

In the latest Firewall, Bill Whittle shows us why the Brexit may be the most important event of the century, and an absolutely epic reminder of Independence on America’s birthday.

Jul 3 2016

Fate of the Euro


Armstrong Economics Blog

Re-Posted Jul 3, 2016 by Martin Armstrong

Euro Hanging

QUESTION: Dear Mr Armstrong.
I attended the Berlin conference and already enrolled for Orlando as well. I have a question regarding the EURO. It is obvious that the EU cannot be sustained as is. I think, so far, I do understand the decline of the EURO. We see it happen. But Germany and France are vigorously protecting their dream. However voices are louder for Italy to abandon the EURO, with probably more countries to follow and but with Germany and France clinging on. With weaker countries leaving, isn’t Euro starting to look more and more like a Deutsch Mark?
My question is; is the anticipated decline in the EURO to below par to the dollar the only scenario, or can the EURO recover once the weaker countries are out?
Thanks you for all you do.

FB

ANSWER: The Euro cannot become the Deutsche Mark for at the end of the day there are also conflicts between Germany and France. As I have stated before, the Federal Reserve was set up with each branch maintaining its own interest rate. That enabled a single currency to survive. The pressure was then contained in the interest rates. It was FDR who seized the Federal Reserve and imposed a single national interest rate. That was OK to work through World War II, but ever since, the pressures have not been offset in interest rates but in local economies. We always called it the New York/Texas arbitrage. The Fed would raise rate to fight speculation in stocks in NYC while putting farmers into bankruptcy. The original design was proper. What FDR created was merely copied by the EU. Hence, we see that the promises of the Euro creating one interest rates for all failed. The rates have been rising in the peripheral members.

The negative interest rates are undermining pensions throughout Europe. This will start to lead to failure in 2017. There is just no possible way these people even understand what they have done. For the Euro to survive, that would still mean the subordination of some economic conditions in one member for the benefit of another.