Posted origially on May 13, 2024 By Martin Armstrong
The United States has surpassed China to become Germany’s largest trading partner. Trade between the US and Germany came in at $68 billion (63 billion euros) during Q1, compared to about 60 billion euros between China and Germany.
If we look at these figures, they pale in comparison to the aid packages we are sending foreign nations. It is appropriate to put these numbers into perspective to understand the true economic unruliness of these proxy wars.
Now, the United States has not become more competitive, and there is a known lag in manufacturing. Biden promised to add an additional one million manufacturing jobs to the US but has failed to attract new business. The issue here is that Germany has stated they would like to reduce their reliance on Chinese goods, as does America. Concurrently, Chinese manufacturing has strengthened to where they do not need to export as many goods from Germany.
The IFO, a German economic research institute, found that only 37% of companies stated they were dependent on China in February 2024 compared to 46% in the year prior. The research center noted that the outbreak of Russia’s war with Ukraine was the catalyst for the West decreasing trade with China. “The proportion of German companies that rely on important inputs or goods from China has declined in both industry and trade and is now just under 40% in each case,” the study states.
It is undeniable that Chinese goods come at a lower cost to the consumer. However, smart business does not conduct trade with an adversary, and the West was the first to label China due to its ties to Russia and the West’s desire to dismantle the One China policy with Taiwan. China is also hesitant to conduct business in the West, as they have seen numerous businesses sanctioned or dismantled. People are praising the US and Germany for reducing trade with China, one of the bad guys. They do not realize that this will lead to a higher cost of goods for everyone.
Washington’s reckless spending comes with a cost to US taxpayers. While the fed may simply roll over their debt and issue new debt to pay off the old, the American public is on the hook for immediate liquidity every single year via taxation. The misconception that Biden would only target the wealthy needs to be dispelled as a recent study reveals that 63% of new audits targeted Americans earning under $200,000.
Now, Biden initially claimed he would send his troop of IRS agents to target Americans earning double that amount. The billionaire class was not targeted, as 80% of all audits were on filers earning under $1 million. Yes, there are far more taxpayers in the middle and lower brackets. However, the IRS merely claimed they would prioritize hunting higher earners; they never explicitly said they wouldn’t come after ALL Americans.
The entire hunt for taxation has been a war on the middle class, who is unable to file massive write-offs and cannot afford to continue paying Uncle Sam on every incoming and outgoing transaction, plus savings, income, and everything else from birth to death. Washington effectively lowered our purchasing power by fueling inflation through absurd fiscal and social policies, and now they are asking people to give them even more of whatever money that remains. Washington continues to spend taxpayer funds on initiatives that the people have never once voted on, and ahead of election season, Biden is going on yet another spending spree with your money to buy off voters.
The highest earners know how to avoid taxes. Trump famously told Hillary during a debate prior to the 2016 US Presidential Election that he obviously used the loopholes in the tax system, as do all financially savvy businessmen. “Her donors took massive tax write offs… and other things that Hillary as a Senator allowed,” Trump stated during the debate. “So do Warren Buffett, so does George Soros, and so do other people Hillary is supported by,” he added. Note that the Democrats in control have never repealed restrictions on these tax loopholes that only help their wealthy donors.
Every new war, aid package, climate change package, social program, and migrant who crosses the border is now the responsibility of the US taxpayer. They wrongly believe that our money belongs to the federal government, with the state also taking out their share. Then, they create new taxes, such as targeting capital gains, to ensure that every American is stretched thin. Did anyone vote for this nonsense? We do not live in a Democracy and anyone who says otherwise is either misinformed or lying.
It will become far easier for governments to extort the people when they introduce CBDC in January 2025. Uncle Sam will think you have hidden any cash on hand from him, cash that belongs to him, once they force us to digitize our dollars. Inflation will continue to rise above GDP and we will enter a period of stagflation. This is why I have warned countless times that private and tangible assets are a safer bet compared to cash as we move into 2028.
The problem with people’s attitudes toward the national debt is that everyone has forgotten why we borrowed in the first place. The theory was that if you borrowed rather than printed money, you were NOT increasing the existing money supply, and therefore, in theory, it would not be inflationary.
However, the Democrats forgot how to run for government without their Marxist agenda of bribing the people to vote for them. This led to always creating deficits. Add to this the NEOCONS who have done nothing but wage wars ever since World War II to defeat Communism and have spent money lavishly on trying to conquer the world.
During the Presidential Third Debate of 1960, the question about the outflow of gold from the USA reserves arose. This sparked a Gold Panic in the London gold market, whereby gold rallied to $40 for the first time, showing that the Bretton Woods System was beginning to collapse. The United States’ outflow of gold was not really from a trade deficit but from the fact that the USA was defending the world with its military establishing bases everywhere. That meant capital was leaving. Gold rallied again to $40 in the late 1960s, and finally, it forced the collapse of the convertibility of gold under the Bretton Woods System in 1971. Kennedy’s words were:
“Now, on the question of gold. The difficulty, of course, is that we do have heavy obligations abroad, that we therefore have to maintain not only a favorable balance of trade but also send a good deal of our dollars overseas to pay our troops, maintain our bases, and sustain other economies. In other words, if we’re going to continue to maintain our position in the sixties, we have to maintain a sound monetary and fiscal policy. We have to have control over inflation, and we also have to have a favorable balance of trade. We have to be able to compete in the world market.”
The dollars were being spent not to benefit our economy but to fulfill the dreams of the Neocons; when Communism fell, they refused to accept any real change.
Rome takes care of widows and orphans.
We borrow, which is worse than printing because we have to pay interest on constantly rolling the debt. This year, we will spend about $1 trillion on interest, the total national debt when Reagan took office in 1981. At times, 70% of the national debt is accumulative interest. That means it went nowhere to improve society or care for widows and orphans, at least as the Romans did. Had we printed the money instead of borrowing, it would have been less inflationary and the capital would have created more jobs instead of investing in government debt which has only funded the Neocons’ wildest dreams.
Posted originally on May 7, 2024 By Martin Armstrong
COMMENT: I was on the Swarthmore campus this afternoon and couldn’t help but notice the same green tents as I’ve seen in some of the other Gaza protest pics. More evidence perhaps of a coordinated effort.
CF
REPLY: Columbia University is canceling its large university-wide commencement ceremony amid ongoing pro-Palestinian protests. This is a major effort to bring back anti-semitism that will no doubt spread to the hatred of all Jews as was the case in Germany. There, it began with protests against the Jewish bankers. Then it was the Jewish shopkeepers; Then it was – what the hell – get all the Jews. Once this old hatred has been unleashed from the bottle, it may not be stuffed back in. Throw in the LEFT vs. RIGHT, rigged elections, and we are staring into the eyes of some very serious civil unrest that is scheduled for violence centered on the election. Those funders behind this movement will be enlisted to turn against the MAGA Republicans. The trick was to get them together first – and then expand the protests.
These Green Tents come with instructions confirming that this is a DELIBERATE effort to create civil unrest that will be used for the 2024 election as well. Despite all the new craze of fake fact-checkers have been defending Soros, Rockefeller, and Gates Foundations, claiming they are not funding all these Green Tents and major anti-semitism in the United States, the two of the organizers supporting the protests at Columbia University and on other campuses are Jewish Voice for Peace and IfNotNow. Both are supported by the Tides Foundation, which was seeded by Democratic megadonor George Soros and previously funded by the Bill and Melinda Gates Foundation. It, in turn, supports numerous small nonprofits that work for social change and are involved in creating civil unrest in the United States.
00:11
These protests against Israel in favor of “Palestine” are the oldest trick in the book on how to wage war and demonize your enemy for support—the terrorists our info states that 40% of the invading Hamas force were not even Palestinian. You deliberately want the opposing force to kill civilians, so who can say they are horrible people and need to be eradicated – every last one. Just look at the stats from World War I. There were 40 million who died, and at best, only 23 million were military. An estimated total of 70–85 million people died in World War II, but the military deaths were less than 25 million.
It is the act of war itself that is the crime against humanity. The people are merely pawns on the chessboard, and nobody cares if you actually live or die. As Field Marshall Hermann Goring said at the Nuremberg Trials, it is always easy to drag the people into war.
The US was secretly shipping arms to Britain on passenger ships, deliberately hoping the Germans would kill civilians and they could use that as an excuse to get into the war. The Germans even took out advertisements warning people not to sail on that ship for they would sink it. Finally, it took 67 years for the USA to admit the Germans were correct, and there were armaments on that ship.
Zelensky knew when the Russians would invade, and he refused to tell the civilians so the Russians would kill as many as possible so he could get support from the West. When he admitted he knew to the Washington Post, he said if he warned people, he would have lost $7 billion.
The Wall Street Journal has reported that some people are being paid to create anti-Israeli protests. It has been alleged that the Gates Foundation funded part of the protests
along with the Rockefeller Foundation and, of course, the man who thinks there is no God, so he must assume that role – George Soros.
College students always think they know something when they know nothing of the world. In Vietnam, at least, they were being drafted and sent to die. Here, they live in comfort even in their green tents bought and paid for by the very people using them as the next generation of pawns.
Knowledge comes only gradually after you get your first paycheck. Until then, the youth are merely playdough for those looking to create political movements. Bill Murry had the best answer: how to teach your kids about the real government.
Posted originally on May 6, 2024 By Martin Armstrong
Eleven states may face capital gain taxes to comply with theBiden Administration’s 2025 budget, in which the government must hunt the people for taxes to pay for a fraction of their spending. The concept of capital gains was not within the original Constitution. The Founding Fathers established a completely new nation in an attempt to flee government tyranny, but yet again, Democracy has fallen into a Republic where the people have no say.
Capital gains were introduced in 1913, The 16th Amendment granted US Congress the power to levy income via taxation, which remained at around 7% until 1921. Congress quickly determined that they needed to extort citizens for more money and created two brackets. The 7% tax became a standard for income tax, but investors who held for over two years, an insignificant amount of time, were punished for saving and forced to pay 12.5% to Washington. Fast forward to 2025, and we are looking at the top marginal rate rising to up to 57.9%! The current capital extortion rate is around a quarter of one’s capital.
This idea of hunting down the rich is utter nonsense as it becomes an excuse to eliminate the middle class. The big money can take the risk, but the average investor cannot. This will deter small business investment and entrepreneurs who greatly contribute to innovation as they bring creativity and imagination to business.
Naturally, the 11 states are primarily blue. Californians really destroyed their state by voting for Gavin Newsom, and now they may face a top tax of 57.9% to cover the state’s excessive spending and growing deficit. New York and New Jersey, two states that should have stayed red, will face the second-highest capital gain taxation at a rate of 55.5%. These states already pay astronomical taxes on things such as property. Minnesota is looking at a tax of 55.45%, Oregon 54.5%, and Maine 51.75%, with the remaining states (Iowa, Kansas, Nebraska, Georgia, and Idaho) all facing capital gain extortion rates above 50%.
Why on Earth would anyone want to conduct business in these states? If Biden remains in power, it will be a wonder if major corporations continue to choose to do business in the United States at all. Businesses could go literally almost anywhere else and face lower rates of taxation. Additionally, the American consumer has been stretched so thin through dollar devaluation, inflation, and taxation that they are not spending the way they once did. Capitalism is under attack; success is a punishable offense.
America’s consumer economy will continue to decline while places like China see their middle class grow and the consumer economy rise. China is not creating worthless spending packages on climate change. Remember, they told us clear as day that the goal is to destroy America’s standing as the world’s leading superpower. Klaus Schwab has been aiming for 2030, but the computer has been honing in on 2032 before Schwab released plans for Agenda 2030. Unfortunately, this is all precisely on schedule as America enjoys its final time in the spotlight as the world’s financial capital.
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