What I have found totally shocking is that the British government under Prime Minister Theresa May is this need to surrender all rights just to remain in the customs union. She has not figured out that the UK has been at the top of the list of the European Union’s ‘Big Four’ economies in terms of economic growth ever since it has voted for BREXIT. The third-quarter Gross Domestic Product (GDP) growth grew by o.6%, while Germany’s economy shrunk by -0.2% and France came in at 0.4%, according to estimates published by Eurostat. Italy saw ZERO growth.

It is really astonishing how Britain cannot negotiate to save its very life. Under May, the negotiations are tieing the UK to a sinking ship and there is really nothing any rational person seems capable of doing. Meanwhile, Brussels is so desperate to punish Britain to set an example in hopes of deterring others from leaving. The UK is the BIGGEST market for German autos in Europe. We are looking at the economic decline of Europe into 2020 which may even be a rather hard landing.

QUESTION: I could not attend the WEC. Cannot wait for the video and materials. I understand you said the US share market was poised to retest the underlying support into 2019. Can you elaborate?

Thank you so much

PY

ANSWER: The target and timing will be on the Private Blog. But generally yes. We will retest support before reacting to European events coming up near-term.

COMMENT: Mr. Armstrong; I just wanted to write to say thank you. You saved my marriage. My wife insisted I listen to you because you were right and got me out of gold. You also got me out of Bitcoin and I cannot thank you enough. These crazy people were touting a new age of knowledge and Bitcoin was going to kill the dollar and become the new reserve currency. Then one real nut said it was going to $250,000. You are right. When something spikes up like that, it grabs the emotions and you lose everything.

PF

ANSWER: There was no possible way governments would EVER hand over such power to Bitcoin. These people have no clue about the age of knowledge, for they are trapped in the age of stupidity. A monthly closing below 2950 will confirm the long-term trend is turning down. A year-end closing below 4150 will point to a drop back to 775 area. It was a trading vehicle – not an investment class for the long-term. With the IMF telling all central banks to create their own cryptocurrency and the introduction of Blockchain in experimenting with tax collection, we face a very different future due to technology. However, it will not be a world of free-market cryptos that bring governments to their knees.

The real curious thing is that the Abu Dhabi sovereign wealth fund filed a lawsuit against Goldman Sachs precisely on the Pi Target Wednesday (Nov 21) for allegedly conspiring against the Middle Eastern fund to further a criminal scheme by Malaysia’s scandal-plagued 1MDB. So here we have the suit filed precisely on the Pi Target and precisely at the top of the ECM back in 2007, that is when Goldman Sachs sold ABACUS2007-ACI which was a $2 Billion Synthetic CDO. The SEC charged Goldman Sachs with fraud back in 2007 for that transaction, but of course, did nothing criminal because Goldman Sachs controls the SEC. Now the top adviser in the SEC is Alan Cohen who was head of Global Compliance and would have signed off on the Malaysian deal.

Them, on the Pi Target from the previous 8.6-year wave, April 16th, 2010, that is when the SEC charged Goldman Sachs with fraud with regard to the ABACUS2007 product. Here we now have Abu Dhabi filing suit for criminal fraud against Goldman Sachs precisely on the Pi Target of November 21, 2018.

We may FINALLY be witnessing the decline and fall of Goldman Sachs. Will do a more detailed report tomorrow – Black Friday

The politicians in Illinois after destroying the state economically, want to now impose an EXIT tax for anyone who dares to think about leaving the state. This is the problem we face. They will never look at the long-term impact of their decisions. Such a tax may make others decide NOT to move to the state and then watch property values really crash.

All they think about is just to survive to the next election. There are those in the ranks who want to impose taxes on every trade in Chicago. Talk about no taxation without representation. So anyone trading on a Chicago exchange from around the world has to be taxed by Illinois without a right to vote?

QUESTION: Mr. Armstrong, you said that next year, interest expenditure will most likely exceed military. Is this how the monetary crisis begins to unfold?

WR

ANSWER: The entire problem with this Quantitative Easing has been the plain fact that the government is the biggest debtor. This is the same model around the world. Lowering interest rates to encourage people to borrow is absurd when the greatest impact will be upon the government. Europe is now on life support thanks to the ECB. Even if we look at the United States, every 1% rise in interest rates adds $220 billion annually to America’s deficit.  Since we have exceeded the Bullish Reversal on Fed Rates on an annual basis, reaching the 5% level means the annual interest expenditures will be rise by about $1 trillion per year! This is just not a system that has much life expectancy before we enter a major Monetary Crisis that is off the charts

QUESTION: Mr. Armstrong,

I remember you mentioning US is the only country to tax world wide income, it seems that China is moving to modify their IIT effective Oct 1, 2018, to include anyone staying in China for more than 183 days. Is this the same as the US? Can you comment/share with us your opinion?

Thanks,
J

ANSWER: No, the US and Japan tax worldwide income. That means that their citizens owe taxes even if they no longer live there. The application of taxes to anyone staying in China 183 days is similar to most countries, but its time limit is rather generous. An American living in Britain would need to pay British Taxes plus American Taxes. A foreign working in the USA would pay taxes to the government. Taxes are applied on a residency basis but worldwide income is applied as if you are the property of the government. Of course, the Socialists want to argue that the “rich” do not pay their “fair share” but how they define that is as a slave. If you do not use any services because you live overseas, that why is it fair that you should pay any tax for services you never use?