If you ask in Europe are people happy with the Euro, you will generally get a response of about 80% in favor. Even if you ask are people happy to be part of the EU, the majority over 90% will say yes. The curious thing is they buy this propaganda that on the surface Europe is all one big happy family. However, when it comes to consolidating the debts of Europe, you barely get a 10% approval rating. So on the one hand, Europe is one big happy family, but they are not about to support the cousin or brother-in-law who they regard as a derelict spendthrift who always squanders his money on wine, women, and song. So yes, he is a family member, but you keep him at a distance and tolerate him at obligatory family weddings and funerals.
There it is – the Euro Crisis. The cultural disparity will never be overcome. The proposals being whispered behind the curtain now is for Brussels to issue Euro bonds and then distribute that money to the derelicts in the family. They have realized that the failure of one may bring the whole family down. Because there is this monumental resistance toward assuming the debts of the derelict brother-in-law, it is best to leave him with his debt and hand him charity so he does not starve.
QUESTION: Marty you recently said that “the entire problem of lowering interest rates to ‘stimulate’ the economy demonstrates that central banks cannot really manage anything.” Is this statement really true?
BG
ANSWER: Absolutely. There is a basic presumption in all human activity that somehow we possess the power to do anything be it end Global Warming or managing the economy. Yet neither has ever been accomplished. We assume that we MUST do something even if there is nothing we can actually do to reverse the trend. It is like what I just wrote about the Plunge Protection Team. Do you realize that every empire, nation, and city-state at some point realizes the end is near, yet they cannot prevent their own demise any more than we can prevent our own death.
“The Rediscovery of the Business Cycle – is a sign of the times. Not much more than a decade ago, in what now seems a more innocent age, the ‘New Economics’ had become orthodoxy. Its basic tenet, repeated in similar words in speech after speech, in article after article, was described by one of its leaders as ‘the conviction that business cycles were not inevitable, that government policy could and should keep the economy close to a path of steady real growth at a constant target rate of unemployment.’
Former Fed Chairman Paul Volcker in his Rediscovery of the Business Cycle clearly stated the theory of managing the economy with Keynesian tools failed. When he tried sending interest rates cascading higher into 1981, he really altered the economy forever. There was a capo on interest rates known as the Usury Laws. On April 1st, 1980, the Depository Institutions Deregulation and Monetary Control Act of 1980 became effective. This Act put in place federal usury law applicable to certain credit transactions and preempted any state usury laws that would apply to these credit transactions. In order to raise interest rates to fight inflation, the laws that protected people from excessive interest rates known as Usury limitations was repealed so the Fed could raise rates to 14%. As always, they never put back any changes to regulations. That is the reason why credit cards could charge even 25% rates of interest.
This is just one example of what I call the Paradox of Solution. Every time the government has impose a solution, they create the cause of the next crisis. When Volcker raised the interest rates to 14% in 1981, he nearly tripled the national debt over the next decade. Government is simply incapable of actually managing anything. Nevertheless, because they usurp power from the people, they believe that they are in control and MUST do something regardless of the consequences. The Quantitative Easing by the ECB has created a nightmare in Europe for now where Volcker caused the national debt to explode with excessively high interest rates, we face the opposite today where governments are addicted to excessively low interest rates and are unable to maintain this level of spending if rates even returned to 8%.
Even Larry Summers which was Secretary of the US Treasury that he was incapable of forecasting the future economic trends. If they cannot forecast the trend, then they act blindly in their attempt to manage the economy. It was Larry Summers who will not ever admit a mistake. He is the father of negative interest rates and now that this tactic has failed, he blames what he calls the ZERO boundary where people will take their money out of banks and hoard it at home in a safe. He next solution? Eliminate all paper money and move to cryptocurrency issued by the government to enforce negative interest rates.
Then we have the legislative branches who spend whatever they need and look to the central banks to manage the inflation they themselves create. They take no responsibility for their own actions. This places the central bank between a rock and a hard place. Trump was bashing the Fed over its rate hike while he fails to understand the crisis we are in thanks to Larry Summers. The Fed has to choose between Fiscal Policy and its own monetary policy or Fed Policy. It raises rates to deal with the crisis of excessively low interest rates and then the budget deficit increases as the cost to keep rolling the debt grows exponentially.
This is what I mean by my statement that central banks cannot really manage anything. They must pretend to be in control, but are simply sitting in the back seat of a taxi with a kangaroo driving
In October 2015 the DOJ announced it was dropping the investigation into the IRS, Lois Lerner, and the unlawful sharing of taxpayer data in the IRS targeting investigation surrounding True The Vote et al.
As a direct consequence of the DOJ decision, congressional inquiry into the IRS targeting matter seemingly dropped from the radar.
However, if you draw a line from the original intent of the entire enterprise, the post-2010 mid-term “shellacking”/”secret research project“, forward to the 2016 election cycle an interested observer might still be left asking:
“why did the IRS, through Lois Lerner, deliver the 1+ million pages of tax filings, to include the entire donor list of Tea Party and patriot groups, through 21 CD-ROMs and not by electronic data transfer. Information that was specifically sent to Eric Holder and the U.S. Department of Justice”?
This is an obvious question which, despite the numerous congressional hearings on the matter, was never asked – nor answered.
The entire scheme is riddled with complexity; almost too complex for the average person to understand, and seriously difficult to summarize. However, when you boil it down here’s the essential components that are no longer suspicion or supposition, but factually provable:
As a result of a trillion dollar stimulus filled with scheme and graft; and as a result of Obamacare being similarly schemed in backroom deals and late night votes; President Obama was “shellacked” in the November 2010 election.
The White House didn’t see the defeat a flawed policy issue; rather as the entrenched ideologues they are, they saw the SCOTUS case “citizens united” as the principle tool used by the White House opponents to organize and fund political movements, ie. the tea party.
The Obama Team response to the 2010 Shellacking was to use the Dept. of Justice (AG Eric Holder) to weaponize the IRS and go after groups -like Tea Party Groups- organized under the financial umbrella of 501(c)(4) donation structuring.
Years later, when the scheme was discovered – the White House denied knowledge (“not even a smidgen of corruption”), the DOJ feigned ignorance, and the IRS began working overtime trying to hide the construct of the prior communication, planning and strategy.
The head of IRS tax exempt division, Louis Lerner, pled the Fifth.
Obama’s Chief of Staff Jack Lew was made Treasury Secretary (IRS is sub division of Treasury Dept.) where he was/is able to continue hiding information.
And Eric Holder constructed a team of DOJ lawyers to isolate, hide and manipulate the trail of evidence within the DOJ.
Just before the IRS targeting scheme was fully discovered/comprehended, and seemingly overlooked by any curious media enterprise, in February 2013 representative Maxine Waters said:
“The President has put in place an organization with the kind of database that no one has ever seen before in life. That’s going to be very, very powerful. That database will have information about everything on every individual on ways that it’s never been done before and whoever runs for President on the Democratic ticket has to deal with that. They’re going to go down with that database and the concerns of those people because they can’t get around it. And he’s [President Obama] been very smart. It’s very powerful what he’s leaving in place.” (link)
Loose Lips Sink UniParty Scheme Ships
Against, the backdrop of new information which proves the UniParty, both dems and republicans, benefitted from the targeting of the Tea Party and oppositional forces; and with the full comprehension that Mitch McConnell and the republican leadership organized a post Citizens United strategy to work around their financial dependency on the electorate via Super-PACs; aren’t you just a little bit curious what the purpose was to assemble a data-base or “Secret Research Project“?
Lois Lerner’s and other IRS officials’ concerns about how to handle these donor lists came on the heels of an advisory from the Treasury Inspector General for Tax Administration (TIGTA) to her and other IRS officials in late March 2012 of “an audit we plan to conductof the IRS’s process for reviewing applications for tax exemption by potential section 501(c)(4), 501(c)(5), and 501(c)(6) organizations.”
March 2012 “audit we plan to conduct” was the IG notification for a pending investigation of IRS. Specifically of their handling of Conservative Groups filing applications and status.
We all know the result of that investigation was a finding the IRS was indeed targeting conservative groups – hence the IRS scandal erupted in the headlines.
However, far more troubling were later discoveries into the internal communications which suggested much more nefarious activity regarding the assembly of secret lists, the “Secret Research Project”.
An undertaking by both the Obama Administration and the DOJ together with the IRS began to surface.
The American Center for Law and Justice put it thusly: We know the IRS unconstitutionally targeted conservative groups. We know they illegally demanded, obtained, and held the donor lists of these conservative organizations. Now we learn that in 2012, the height of the targeting, the IRS was involved in a “secret research project” with this confidential, illegally obtained donor information.
That’s more than a big deal. It’s potentially criminal.
The very fact that the IRS was using the phrase “secret research project” should give every American pause. But the fact that this project was conducted as part of a well-orchestrated effort to target and silence conservative Americans is utterly disturbing.
Now, again, ask yourself: Why would Lois Lerner be delivering 21 CD-ROMs of data, lists of every American who joined arms with the Tea Party, to Eric Holder in the DOJ instead of just transferring that data over their internal computer systems?
WASHINGTON […] “After the Justice Department turned over the database to the Oversight Committee this month in response to a subpoena, the Justice Department says it was informed by IRS officials that it contains legally protected taxpayer information that should not have ever been sent to the FBI and it now plans to return the full database to the IRS,” a statement from the oversight committee said.
According to material obtained by the committee, the IRS sent the FBI “21 disksconstituting a 1.1 million page database of information from 501(c)(4) tax exempt organizations, to the Federal Bureau of Investigation.”
QUESTION: I read that the Heritage auction of the penny they said would bring $1.7 million was a flop. Any indication as to why? Or is it just the firm trying to pawn something for big bucks?
HK
ANSWER: I have no idea why Heritage would have claimed the coin would bring $1.7 million. It is not that rare. There are about 40 to 45 known 1943 copper cents from the Philadelphia Mint. The general assumption is that they were struck by accident when there were some copper blank planchets still remaining in the press hopper when production began on the new steel pennies.
Now as far as sales go, there was a 1943 copper cent which was first offered for sale back in 1958, which sold for more than $40,000, or so it was claimed. Subsequently, there was one sold for only $10,000 at an ANA convention in 1981. The highest amount ever paid for this error previously was $82,500 back in 1996.
There was only one copper 1943 penny known from the Denver Mint which did sell they claim for $1.7 million by Legend Numismatics of Lincroft, New Jersey. I would not guarantee that price personally. US coins tend to get really hyped. This unique coin, not publicly known to exist until 1979, was certified PCGS MS64BN. If Heritage was claiming their penny should bring $1.7 million which was from the far more common hoard of Philadelphia, I really question such expertise. The Heritage example sold for only $204,000, which is a modest advance over the last sale of $82,500 back in 1996.
The culture in American coins is strikingly different. American collectors seem to prize errors. A brockage is an error coin where one side is normal, but the other side instead of the reverse displays the obverse again, but incuse or in a negative mirror-like form. Brockage errors are caused when an already minted coin sticks to the coin die and impresses onto another blank pressing a mirror image of the other coin into the blank.
Brockage errors coins are rare. However, they do not bring significant premiums. A nice Augustus(27BC-14AD) denarius may bring $1,000+ whereas the Brokage will bring about $500 as illustrated above. Here is an extremely rare official Roman die of Emperor Tiberius(14-37AD) with precisely this problem of a silver denarius stuck to the reverse die.
This die of Tiberius is UNIQUE and was discarded because of the brokage error coins it would have produced which would have appeared like the Augustus denarius illustrated above. There are only about 12 official Roman dies that have survived.
Here is Another genuine Roman die of an extremely rare Emperor Gordian I (238AD) who reigned for only 21 days. Obviously, this die was discarded because he did not last in office very long.
There is a completely different culture outside of American coins. Such an error would never bring such premiums. In ancient coins, the premiums attained are for high quality.
QUESTION: Marty,
Back in 2015 when they closed the Chicago MERC after 167 years, you did a piece about how flashing screens do not provide the same “feel” as tape watching and floor trading. You also mentioned in that piece that “after Socrates, you will recreate something you always wanted to do” in relation to bringing “feel” back into trading.
My question is; given all the directions you are being pulled- is this still something you aspire to undertake?
I grew up tape watching, and despise blinking screens…it’s a lost art and would welcome anything you might undertake in this area.
Rw
ANSWER: Absolutely. We are getting ready for the first launch very soon. The intention is to expand the system to intraday. We are in negotiations with a data-provider to make the system live intraday with reversals and timing on an hourly basis. Trust me. It has been this initial launch that has been delayed by banks changing rules causing us to have to re-write the payment systems three times. Then we have completely different rules for outside North America so it required then setting up another whole new payment system. Then we have been having to set up yet a third for China. This has all been driven by this Hunt for Taxes.
It will be that intraday version that will be sound. Also in Phase-Two of our launch, we will be looking at providing a download version that will link back into our system so you can just talk to it and it will answer. We just cannot do that level of sophistication over the internet.
QUESTION: Dear Martin,
you are very right that govs intend to terminate high denomination euros. In Germany it has been impossible to pay cash with a €500 note for quite some time now – at least at most of the shops I usually go to on a weekly basis. At the end of last year they exchanged the ATMs in my house bank, so now €500 bills aren´t dispensed any more. It seems to me the gov is going to cancel these notes completely, i.e. withdraw them from circulation. What would you advise to people holding €500 notes at home?
Thank you very much in advance.
EZ
ANSWER: There will be a cancellation of the €500. That is the rumor behind the curtain. I would convert them as soon as possible to small bills and/or US dollars. There remains a distinct possibility that we will see Europe try to cancel its currency and take up the IMF’ proposal to move toward a cryptocurrency. They are desperate for taxes and they will raise taxes even further. As far as cash is concerned, as we move into 2020, it is time to make changes
COMMENT: Hi,
Hunt for taxes is running full scale in Scandinavia.
In Sweden, all vehicles including foreign registered vehicles, are obliged to pay congestion taxes in Stockholm and Gothenburg as well as infrastructure charges in Motala and Sundsvall.
Sometimes, the automatic camera system reads the license plate falsely and few people in Finland have gotten monthly invoices, even though they or their car never were in Sweden, including some fire trucks that never leave their home town.
TThepayment is usually a few euros but the overdue payment is 500 SEK. The most horrible thing is that, of course, the due date comes so fast that if you don’t want to pay the 500 SEK overdue payment you just pay the invoice and then it is your burden to prove you never were in Sweden.
BR
JP
REPLY: We are witnessing police being converted into tax agents. This is no longer about protecting the public. It is about exploiting the public to fund government pensions. For every person who moves to retirement, the state then hires their replacement. Consequently, the cost of government is growing exponentially on a global basis and this is the reason why we are undergoing a MAJOR Cycle Inversion in how the markets will react between now and 2032. In Australia, they have been handing out parking tickets in your own driveway. In Australia, there are people who have figured out how to beat all these automated cameras. They clone licenseplates so other people get the tickets. In the USA, there have been major class actions lawsuits against automated cameras. In Cherry Hill, New Jersey, if you stopped but were 6 inches over the white line, you were still being given a ticket for running a red light. Then people making a right turn on a red were being given tickets for “rolling” rather than coming to a complete halt for at least 5 seconds. Other states are photographing your plate and then send you a ticket for whatever they can find or make up. Failure to have insurance is a popular one even if you have it, they know it is often cheaper to just pay it than spend all day in court.
This is no longer about safety or protecting anyone. It is just about raised revenue any way they can pretend to justify it
The Yellow Vest movement is indeed spreading worldwide. In France, they are out destroying speed cameras. Most Americans are familiar only with the red light cameras that cities have been forced to take down for they are unconstitutional. That is why you did not get points for the violation, just penalties. In Europe, the speed cameras are outrageous. When I was living in Switzerland for a few months, boy did I get tickets galore. You suddenly find out that you get a ticket for just 1 km over the speed limit. In the States, a cop will not give you a ticket until you are more than 10 miles an hour over the limit. Your speedometer can be off as well as theirs. In Europe, there is no such recognition.
In Rome, just don’t bother even renting a car. All you will get are countless tickets as they change the speed limits at different times during the day and they will take a year to send you a ticket without any description of what the fine is even for. In Europe, these are just an excuse to impose more forms of taxes.
As government becomes ever increasingly desperate for money to pay their own pensions, we are headed into a clash that will be civil unrest on a global scale that will begin to rise much more dramatically after the turn in the ECN come January 2020. The polls show that the Yellow Vests Movement in France has 70% of the population behind them.
The New York Times now reports a second stealth attack by Progressives aimed at tarring former Judge Roy Moore during his 2017 Senate race. Bill Whittle wrestles with how to fight an opponent who fights dirty, and what Judge Moore should have done to combat the allegation. Bill Whittle Now is a production of the Bill Whittle network of Members who contribute their own money to ensure these conversations make a cultural impact. Become a Member today at http://BillWhittle.space/subscribe
COMMENT: Mr. Armstrong; Your ECM has been amazingly accurate. Not only did real estate peak, but it is now official, Germany is in a recession.
Great job
HW
REPLY: There is an accurate business cycle that unfolds but you must step back and observe it from a global perspective. The Economic Confidence Model has a long track record. The numbers are shocking. For 8 out of 12 months in 2018, German production has declined. On average, manufacturing declined 4.1% in November and energy production decline 3.1% in November. Even new construction has declined 1.7%.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
Then we have the legislative branches who spend whatever they need and look to the central banks to manage the inflation they themselves create. They take no responsibility for their own actions. This places the central bank between a rock and a hard place. Trump was bashing the Fed over its rate hike while he fails to understand the crisis we are in thanks to Larry Summers. The Fed has to choose between Fiscal Policy and its own monetary policy or Fed Policy. It raises rates to deal with the crisis of excessively low interest rates and then the budget deficit increases as the cost to keep rolling the debt grows exponentially.
Centinel2012 