Armstrong Economics Blog/BRITAIN
Re-Posted Oct 17, 2018 by Martin Armstrong
QUESTION: Is Tony Blair just a traitor to the British People to help his fellow politicians in Europe?
ANSWER: Yes. Tony Blair is out there pitching for another Brexit referendum as Prime Minister Theresa May, who also did not want to exit the EU, will be unable to secure a parliamentary majority and this seems to be an intentional plot to overturn BREXIT. Even the propaganda they use with regard to trade is misrepresenting the entire scheme. Britain is FAR BETTER off under BREXIT than remaining within the EU. Any trade deal is subject to the veto of any one of 28 member states. Britain CANNOT reach an independent trade deal for its own people for the French have always vetoed Britain. Let’s face the facts. Britain loses EVERY major case in the European court. This is all about protecting governments – not about what is best for the people. Britain will collapse with the EU if it does not break the chains which bind it.
Armstrong Economics Blog/European Union
Re-Posted Oct 16, 2018 by Martin Armstrong
The new data protection legislation in Europe known as GDPR. has resulted in simply overwhelming the government with complaints and inquiries from small businesses who do not understand the regs. In Germany, the various agencies are reporting a 500% increase in complaints. Even in Bavaria, 2,974 consultations took place in 2017, and so far this year it has reached 7,000 by October 1st. This legislation was really all about being able to prevent mass email campaigns that were political. They really did not care if people received junk emails. However, creating a law and pretending it is to protect consumers requires broad language to hide the fact it was to prevent political solicitation. They have created a nightmare all to prevent email campaigns that took place in the 2016 US presidential elections.
Armstrong Economics Blog/European Union
Re-Posted Oct 15, 2018 by Martin Armstrong
It is really mindblowing how politicians simply refuse to admit a mistake with the refugees and reverse course. Merkel has dug in her heels in over this issue and it is just not going to get better. From the outset, I warned that in an economic decline, the last thing you do is accept immigrants. This is not my opinion – it is just patterns from the past. That similar event of immigrants coming in during an economic decline led to street battles in the USA when it was just the Irish during the 1840 Great Depression and Sovereign Debt Crisis. History repeats for the same stupid decisions time and again. Merkel has set the stage for violence in Europe and political discontent that threatens to undermine the entire EU projected.
In a further erosion of Germany’s political mainstream is clearly underway. The Bavarian conservative party, the CSU, has lost its absolute majority. Meanwhile, the Greens have become the second-largest political force in southern Germany. Additionally, the Eurozone sovereign debt crisis continues to brew. European officials are back in the spotlight recently as the debt crisis in Italy has cast Europe directly in the eye of the storm. The loss of the CSU in Germany is undermining the survivability of Merkel. With her demise, we will also see the collapse of the Euro.
Armstrong Economics Blog/The Hunt for Taxes
Re-Posted Oct 15, 2018 by Martin Armstrong
The greed of governments in their pursuit of money is the single greatest threat to creating a Dark Age. With New Zealand imposing a $5,000 fine for just landing there and you refuse to hand over your pen and passwords to your phone for them to search, now we have Australia going really nuts to the point that they risk tech companies simply banning the sale of their products in the country. The Assistance and Access Bill 2018 in Australia will force Google, Apple, Facebook, and other technology groups to help Australian authorities decode certain forms of encrypted communications on their systems, or face fines of up to AU$10 million. The government says the legislation will help protect against terrorism, fraud and child abuse crimes, claiming it aims to ensure criminals “have no place to hide.”
The problem that arises that failure to pay taxes they also call criminal. Hence, the hunt for money is greatly aided by this type of legislation far more than any other pretend criminal activity. While the government has stopped short of demanding backdoor access to tech companies’ systems that would allow the government to tap into end-to-end encryption services such as WhatsApp, it does demand access to data at “points where it is not encrypted.”
Apple, FOR INSTANCE, would not be made to create a backdoor for their iMessage where every user’s encryption key is different. But the government could request access to the single encryption key for its iCloud services. When you send a message to a friend, it’s encrypted as it travels between the two devices, and when it arrives, it’s decrypted for your friend to read, which is when the government should get to read it. The Australian government is cleverly demanding not a backdoor, but a “side door” to gain access to whatever people are sending.
Naturally, the cybersecurity minister claims this will only be allowed under strict guidelines, with companies subject to three levels of escalation: an interception agency requesting the company voluntarily assist; a “Technical Assistance Notice” whereby the companies are instructed to help; and a “Technical Capability Notice”, which can only be issued by the attorney-general and basically means “comply or face a fine.” However, such promises from governments are really worthless. They always go beyond their claims of restraint.
Apple has filed a complaint stating that the Australian government previously stated that they would not to weaken encryption or compel providers to build systemic weaknesses into their products for that would undermine the entire internet and bring commerce to a halt. Apple has made it clear that this legislation poses serious risks:
- Overly broad powers that could weaken cybersecurity and encryption
- A lack of appropriate independent judicial oversight
- Technical requirements based only on the government’s subjective view of reasonableness and practicability
- Unprecedented interception requirements
- Unnecessarily stifling secrecy mandates
- Extraterritoriality and global impact
Governments are in serious trouble and they will be raising taxes dramatically before they ever dare try to reform. In 2016, Apple fought back when the FBI attempted to compel Apple to unlock the San Bernardino shooter’s iPhone. Creating backdoors means that sophisticated hackers will discover them and exploit them faster than you can blink an eye. There is a profound risk of bringing down the entire digital e-commerce world and you are looking at the destruction of the entire world economy. Apple has come out and stated that this bill is still unfit for today’s world. Governments around the world have to realize that their greed can topple our very way of life
In yet another example of voters rejecting the mass-immigration and suicidal pro-jihad policies of German Chancellor Angela Merkel, Bavarian voters delivered the most crushing defeat to her aligned political allies since 1950.
The Christian Socialist Union (CSU) lost more than 10% of their previous support; and their closest allies, the Socialist Democrats (SPD) also lost 10% of their base. The Alternative for Germany (AfD), a party focused on stopping the pro-jihad policies of Merkel, gained a strong foothold; and the Green Party became a landing place for those ‘tweeners’ who do not wish to be argumentative, yet disagree with Merkel’s political allies who accept a few Bavarian deaths as necessary to advance multicultural sensibilities.
[ie. Green Party gains = those who no longer support Germany’s rush to self destructive jihad, but also don’t want to run the gauntlet of being called racist within the AfD.]
BERLIN/MUNICH (Reuters) – Chancellor Angela Merkel’s Bavarian allies suffered their worst election result since 1950 on Sunday, bleeding votes to the far-right and the ecologist Greens in a setback that raised tensions within Germany’s crisis-prone national government.
The Christian Social Union (CSU) won 37.3 percent of the vote, preliminary results showed, losing its absolute majority for only the second time since 1962 – an outcome sure to stoke infighting in the conservative party, already a difficult partner for Merkel in Berlin.
“Of course today is not an easy day for the CSU. We did not achieve a good result,” Bavarian premier Markus Soeder told a gathering of his party. “We accept the result with humility,” he said, adding that the CSU nonetheless wanted to form a stable government as soon as possible.
The result, which saw the pro-immigration Greens come second and the far-right Alternative for Germany (AfD) enter the state assembly for the first time, means the CSU will need to form a coalition – a humiliation for a party used to ruling alone. (read more)
Armstrong Economics Blog/Climate
RE-Posted Oct 12, 2018 by Martin Armstrong
An independent audit of the key temperature dataset that is being used by climate models has exposed more than 70 problems with the data which render it “unfit for global studies.” Problems include zero degree temperatures in the Caribbean, 82 degree C temperatures in Colombia and ship-based recordings taken 100km inland. The audit has concluded that the studies are deliberately exaggerating temperatures to support a theory of global warming utilizing global averages that are far less certain than what is being forecast.
The audit has revealed that “that climate models have been tuned to match incorrect data, which would render incorrect their predictions of future temperatures and estimates of the human influence of temperatures.” Furthermore, the Paris Climate Agreement adopted 1850-1899 averages as “indicative” of pre-industrial temperatures is “fatally flawed.” The entire Paris Climate Agreement has an agenda to eliminate effectively the advancement of society and attempt to reset the clock to the pre-Industrial Revolution. This entire theory that before the Industrial Revolution, our planet’s atmosphere was somehow pristine and uncontaminated by human-made pollutants has been also proven to be completely bogus. Bubbles trapped in Greenland’s ice has revealed that we began emitting greenhouse gases at least 2,000 years ago. The Romans even constructed the first aqueduct was built in 312 BC because there was a serious problem with water pollution. Seneca (c 4BC-65AD), the adviser to Nero, wrote in 61AD: “No sooner had I left behind the oppressive atmosphere of the city [Rome] and that reek of smoking cookers which pour out, along with clouds of ashes, all the poisonous fumes they’ve accumulated in their interiors whenever they’re started up, than I noticed the change in my condition.”
This new audit argues even the most simple basic quality checks had not been done on the HadCRUT4 data which is managed by the UK Met Office Hadley Centre and the Climate Research Unit at the University of East Anglia. The audit exposed that estimates were made of the uncertainties arising from thermometer accuracy, homogenization, sampling grid boxes with a finite number of measurements available, large-scale biases such as urbanization and estimation of regional averages with non-complete global measurement coverage.
The audit has exposed the dishonesty in this entire scheme and it appears to be directed at the goal of reducing the population. Anomalies it has identified include at St Kitts in the Caribbean, the average temperature for December 1981 was zero degrees, normally it’s 26C. For three months in 1978, one place in Colombia reported an 82 degrees Celsius average – hotter than the hottest day on Earth. Then in Romania, one September the average temperature was reported as minus 46°C, which has never happened. The data showed that supposedly ships would report ocean temperatures from places up to 100km inland. The paper also points out that the most serious flaws identified was the shortage of data. For the first two years, from 1850 onwards, the only land-based reporting station in the Southern Hemisphere was in Indonesia. Then there were ship observations at the time but Australian records had not started until 1855 in Melbourne, behind Auckland which started in 1853. This data appears to have been just made up.
According to the HadCRUT4 calculation of coverage, it was almost 1950 before there was data from even half of the Southern Hemisphere was available. Yet they claim global warming has taken hold for 100 years prior. Then the Paris Climate Agreement takes the HadCRUT4 average from 1850 to 1899 as an “indicative” temperature or pre-Industrial Revolution. There is absolutely no possible way the data set being used to support all this Global Warming is even valid for any forecast.
Armstrong Economics Blog/Climate
Re-Posted Oct 11, 2018 by Martin Armstrong
In the Netherlands, the high court has now ordered the Dutch Government to cut greenhouse gases by 25% before end 2020. The court called it a Violation of the duty of care pursuant to articles 2 and 8 ECHR. The state must now further reduce greenhouse gases. Then we have the UN’s Intergovernmental Panel on Climate Change that now says coal-fired electricity must end by 2050 if we are to limit global warming rises to 1.5C. They have NEVER heard of cycles and they simply project whatever trend is in motion will stay in motion. They never take nature into account and ignore everything else in the entire world not to mention volcanoes.
Rather than actually outlaw anything, the governments prefer to PUNISH people, which is far more profitable, by raising taxes dramatically. Now a Harvard study shows that large-scale Wind Farms also raise the temperature.
The way you do research is you test EVERY connection – you do not start with a presumption and then go off and try to prove something. On top of that, there are cycles to absolutely everything. There is nothing void of a cyclical nature.
Indeed, the 20th century will be remembered for four scientific revolutions–Relativity, Quantum Mechanics, Chaos and Fractal Geometry. The Father of Chaos Theory is Edward Norton Lorenz (1917–2008) who was an American mathematician and meteorologist. Lorenz was certainly THE pioneer in Chaos Theory. A professor at MIT, Lorenz was the first to recognize what is now called chaotic behavior in the mathematical modeling of weather systems.
During the 1950s, Lorenz observed that there was a cyclical non-linear nature to weather yet the field relied upon linear statistical models in meteorology to do weather forecasting. It was like trying to measure the circumference of a circle with a straight edge ruler. His work on the topic culminated in the publication of his 1963 paper Deterministic Non-periodic Flow in the Journal of the Atmospheric Sciences, and with it, the foundation of chaos theory. During the early 1960s, Lorenz had access to early computers. He was running what he thought would be random numbers and began to observe there was a duality of a hidden repetitive nature. He graphed the numbers that were derived from his study of convection rolls in the atmosphere. What emerged has been perhaps one of the most important discoveries in modern time.
This illustration of the Lorenz Strange Attractor is incredibly important and was first reported in 1963. Lorenz’s discovery of a strange attractor was made during an attempt to create a model of weather patterns. The actual experiment was an attempt to model the atmospheric dynamics of the planet. It involved a truncated model of the Navier-Stokes equations. It is a visual example of a non-linear dynamic system corresponding to the long-term behavior in a cyclical manner revealing a hidden order we cannot otherwise observe. The Lorenz Strange Attractor is a 3-dimensional dynamical system that exhibits chaotic flow, noted for its interesting shape revolving around two invisible strange points in space-time we call Strange Attractors. The map shows how the state of a dynamical system with three variables of a three-dimensional system evolves over the fourth dimension time in a complex, yet non-repeating pattern. In other words, here is a visualization of duality – what appears to be randomness (chaos) yet simultaneously there is a broader clear pattern of order. The same identical structure appears in the light where it is both a waveform and particle, as we see in the economy where we retain our individuality yet at the same time we are part of a broader collective pattern. This is the very essence of the Invisible Hand – or in Lorenz terms, a Strange Attractor.
Lorenz also discovered in 1969, that very minor differences in a dynamic nonlinear system, which would include the economy, could trigger vast and often unsuspected drastic results. These observations ultimately led him to formulate what became known as the term Butterfly Effect in 1969 regarding this fascinating discovery. Very tiny changes in what might appear to be minor data at the outset had a ripple effect throughout the entire system creating a substantially different outcome. This term grew out of an academic paper he presented in 1972 entitled: “Predictability: Does the Flap of a Butterfly’s Wings in Brazil Set Off a Tornado in Texas?”
Chaos theory was thus born. The Butterfly Effect is the sensitive dependence on initial conditions whereby a very small change at one place in a nonlinear system can result in large differences to a later state. The effect derives its name from the theoretical example of a hurricane’s formation being contingent on whether or not a distant butterfly had flapped its wings several weeks before. Lorenz’s early insights marked the beginning of a new field of study that impacted not just the field of mathematics but virtually every branch of science–biological, physical and social. In meteorology, these discoveries have led some to presume that it may be fundamentally impossible to predict weather beyond two or three weeks with a reasonable degree of accuracy. However, such assumptions ignore the duality structure and the true importance of the Strange Attractor.
Lorenz demonstrated the profound realization that may be far more important than Einstein’s Relativity or even the discovery of Quantum Mechanics is matched only by Fractal Geometry. Lorenz demonstrated that the very idea of a deterministic system with formal predictability limitations does not actually exist; in other words, the Cartesian universe. I believe that Lorenz’s discoveries have overshadowed both relativity and quantum mechanics for they have truly opened the door to the Grand Unified Theory or the Theory of Everything if someone is willing to take that first step through the door.
Cyclical Analysis is the key to understanding the universe for it is the very essence of how all energy moves. It is the wave in light, but it is the attempt to predict where the particle will appear in the wave formation. If we look at the atomic structure it is the same design structure we see at the planetary level. The structural design and integrity are the same on all levels. In other words, it is fractal in composition. The same pattern repeated over and over again.
It is really pathetic how these charlatans ignore science on every level to produce a forecast that only puts money in their pockets. NOBDOY will fund anything to the contrary because governments are not interested unless it puts money in their pockets.
Armstrong Economics Blog/Sovereign Debt Crisis
Re-Posted Oct 8, 2018 by Martin Armstrong
QUESTION: Do you concur with the IMF WARNING?
ANSWER: The IMF said: “No financial regulatory framework can or should aim to reduce the probability of crisis to zero, so regulators should remain humble.” What the IMF is warning about is the risk of interest rates rising and countries who have borrowed in dollars are presenting a major Emerging Market Debt Crisis. Then we have the two-fold risk is the currency and the interest rates. Many others have borrowed but with floating rates. Our model is warning that rates are going to more than DOUBLE. In the face of that probability, we are looking at a very distinct and unique type of debt crisis.
Armstrong Economics Blog/Understanding Cycles
Re-Posted Oct 8, 2018 by Martin Armstrong
COMMENT: I love when you educate us about the weather, especially the cycles. the NAPOLEON story killed me !!! I’m a french and believe me, nobody talked in school about the weather cycles when he tried to fight Russia and lost everything. I read 3 times your chart which plots the temperatures and the cycle initiated by the volcano a few years ago. you are enough smart to guess that French teachers NEVER talk this story under this angle of cooling temperatures…
REPLY: When you correlate everything you see the patterns. Sure, at Waterloo, the French used CANNONS while the British used CANISTERS. On the day of the battle, it rained a lot. The ground was very muddy, soft and wet mud. In that weather and ground conditions, cannons were not as effective. It was more than just the weapons. In those weather conditions, Napoleon delayed and that cost him the battle. But had the weather been dry, things may have been different. The cold clearly beat Napoleon on his attempted invasion of Russia.
There is also the Human Excitability Study where war was correlated to sunspot activity. The sunspot cycle is roughly every eleven years. However, this time it’s different. The sun is headed for a very rare, super-cooling period that threatens to topple civilization itself as it has throughout history roughly following a 300-year cycle.
For most of its history, science believed the sun’s output was constant. They finally realized that a thermal dynamic cycle beats like your heart so the sun could not exist if it was a steady outflow of energy. One degree less and it would blow itself out. Hence, it is cyclical rising and falling in intensity.
The eleven-year cycle in sunspots itself builds in intensity like the Economic Confidence Model (ECM) reaching “grand maxima” and “grand minima” over the course of 300 years. The last grand maximum peaked circa 1958, after which the sun has been steadily quieting down. Today, the drop in activity is at its steepest in 9,300 years, which is being ignored by the Global Warming propaganda.
The last Maunder Minimum, during which the sun languished for seventy years, took place from 1645 to 1715 when the sun’s brightness declined and the number of sunspots collapsed to almost zero. We are seeing almost zero so far in 2018.
Alexander Leonidovich Tchijevsky (1897-1964) did a study on sunspot and human activity. He found that humans responded even creating wars with the swings in sunspot activity. He may be most notable for his use of historical research (historiometry) techniques to link the 11-year solar cycle, Earth’s climate and the mass activity of peoples. Just after World War I, Tchijevsky published a book on cycle theory. Perhaps the title was not destined to make the book a smash hit, but it might take a big breath away before you finish reading the last word. The title was: “Investigation of the Relationship Between the Sunspot Activity and the Course of the Universal Historical Process from the V Century B.C. to the Present Day.”
The title is a bit of a long-winded oddity suggesting that human nature becomes more excited during the increased periods of sunspot activity. Whether or not Tchijevsky proved his theory that we are all driven by sunspots, much in the same manner as the moon drives the tides of the seas is another subject which I am not too certain about. Tchijevsky’s work is an interesting collection of knowledge that does illustrate a pattern within human activity.
Tchijevsky did prove that man became more excited every 11 years which did correspond to the know 11-year cycle of sunspot activity. He gathered data from 72 nations from 500 B.C. to 1922. Throughout the 2,422 years, he included such factors of human excitability as war, riots, revolutions, expeditions, and migrations. He took into consideration the magnitude of the event, the size of the area affected, and the number of people involved. The charts that are reproduced here give a very interesting cyclical view of man’s activity which you can call emotion or excitability.
The Tchijevsky cycle clearly indicates that every 11 year cycle period can be broken down into four distinct periods. Period #1 has a duration of three years which is marked by peace, passiveness, and general rule by minorities. Period #2 has a duration of two years in which general excitability grows from political unrest. New ideas or concepts emerge which tend to challenge the party in controL These ideas become popular answers to present day problems but there is a definite lack of a uniting force. Period #3 again has a duration of three years. Under this period the public’s voice is heard. Under a dictatorship, this has been the strongest period of mass riots and revolutions in which major problems are solved. At times, anarchy does prevail but generally democratic reforms are gained. Period #4 has a duration again of about three years. The general excitability declines, and the people go along contented in a state of apathetic moods. Peace movements usually are generated during this period. The masses prosper and go about their normal course of life awaiting the sun to set and the new light of dawn which brings the beginning of a new cycle.
Reflect for a moment about these four distinct periods. Looking at our own recent political history, we see a similarity between this cycle and our preference towards political parties. For example. we had a cycle of peace and passiveness following World War II culminating in the peak of period #3 during the Johnson term. We entered period #4 bringing in President Nixon as everyone went about their business. Gradually we entered period #1 which brought about the Watergate affair resulting in the Ford administration and period #2 which has a duration of 2 years. Jimmy Carter arrived in town ushering in period #3 which is the peak on the 11-year cycle that normally contains revolution of political unrest. This brought about period #4 when we revolted against the Inflationary policies of the Democrats by voting in President Reagan with a sense of returning back to passiveness and old standards and goals.
Who knows if these events indeed were caused by sunspot activity? Perhaps the sunspots do affect our emotions in much the same manner as the moon can move the ocean from side to side. But the fact that remains is this: a cycle does exist. You can find no century on this chart that was ever lacking such human excitability. We are indeed “only human” to capture a saying normally invoked for human error. We have all heard that history repeats itself. Perhaps it is not history that repeats so much as human error. We are not immortal. We have not lived constantly throughout time. We die and are replaced by new generations. Each generation tends to believe that they are smarter than the last, failing to accurately study the errors made by previous generations; they will make the same mistakes.
Perhaps the events might differ but the result is always the same. Just as the Crusaders charged off to the Middle East to free the holy land from pagan Arabs, as they viewed it, we charged off into Europe to set the world free from the madness of Hitler; both resulted in worldwide wars so the events may have been different but the motives, passions, and outcomes were the same.
Tchijevsky’s attempt to relate man’s excitability to sunspot activity did accomplish one thing significant. His life’s work may not have proved or disproved his sunspot theory, however, it did provide us with evidence that man’s excitability, or emotions as I prefer to call it, moves within a cyclical pattern that can be identified