Armstrong Economics Blog/China
Re-Posted Jun 10, 2019 by Martin Armstrong
QUESTION: Martin, You said that China will become the financial capital of the world by 2032. Why do you think that what Trump is doing to China with tariffs and the trade war will not be able to stop China becoming the financial capital of the world?
RM
ANSWER: Trump’s tariffs are not intended to prevent China from rising. Rather, they are intended to open up China. The rise of China will come by turning inward to develop their own consumer market. The mercantilist model employed by Germany may have made Germany the biggest economy, but its people have not shared in that rise. This is the difference between an export model and a domestic model. The U.S. is the biggest economy and everyone wants to sell to America because it has the largest consumer market.
The Eighteen Year Real Estate Cycle
Trading Against the Reversals
Armstrong Economics Blog/Training Tools
Re-Posted May 20, 2019 by Martin Armstrong
COMMENT: So guess what. I’ve always played the gaps when one elects and it’s a decent size and it lines up with the arrays and technicals I’ll get in and sell at the touch of the next reversal after the gap. Easy. But last month for the first time I tried trading against the reversal and it worked out amazingly. There was a quadruple bullish reversal in Cisco and a direction change the week and month after and I shorted it a few cents away from that reversal and basically got the high in a very strong uptrend. AM even thought I was crazy shorting it. The very next day it started falling and fell straight to the last major weekly yesterday.
Maybe not “Marty” type amazing trade, but I saw it unfolding the way Socrates said and I thought Damn haha
First time against a reversal!!! And a quadruple at that. Wanted to share that with you.
REPLY: Excellent. That was a good trade. Notice the energy. It peaked well before, so as the market is making new highs and failing to get through the reversals, look at the energy. If you see divergence and the stochastic, the odds are in your favor.
The divergences in those two indicators with the Array and the Reversal System allows for low-risk trades. Always know where you are wrong on a trade. In that case, the other side of the Reversals you are selling against. The declining energy with a rising market warns that the rally is not sustainable.
Decline in Craftsmanship Between the 1st and 3rd Centuries
Armstrong Economics Blog/Understanding Cycles
Re-Posted May 17, 2019 by Martin Armstrong
COMMENT: I took the tour of the Vatican museum and the sculpture collection is unsurpassed. It was great that a pope told the people to bring statues to the Vatican rather than destroy them as some pagan god. The guide also pointed out how the best art was the first century and the quality diminished into the third and fourth century. I remember the mug from the WEC. It was interesting how the quality of art declined following your chart on the collapse of the monetary system.
I can get an extra mug?
KW
ANSWER: Yes, several people took that same tour. The quality of art declined with the collapse of the monetary system as well as the artistic quality of coins. Each die was hand engraved back then, so you can also see the decline in craftsmanship. Sculptures are the same. The details in the face, hair, and clothing during the 1st century is easily distinguishable from the 3rd century as we see in the coinage.
The quality of craftsmanship declines with the economy. Buildings constructed today are far cheaper in construction materials than you see even decades before. Most historians claim that Emperor Augustus’ right-hand man, Agrippa, built the first Pantheon in 27 BC. It burned in the great fire of 80 AD, was rebuilt by Emperor Domitian, and then was struck by lightning and burned again in 110 AD. The Pantheon as we know it today was built in 120 AD by Emperor Hadrian who was passionate about architecture and design. The inscription states that it was attributed to Marcus Agrippa. Nevertheless, this is a building that has stood almost 2,000 years.
As for the mugs, sorry, they are all gone. People have been making collections of them. Even I have only have one myself. I didn’t even have any leftover to give to Nigel.
A Strong US Dollar is the Only Way to Create Change
Armstrong Economics Blog/USD $
Re-Posted May 10, 2019 by Martin Armstrong
COMMENT: It is interesting how these people take your interviews and inject headlines like you say the dollar will collapse in April 2019 when you have said exactly the opposite. Just unbelievable how these people use your name to promote their BS.
JD
REPLY: I know. They keep preaching the dollar will collapse when it is exactly the opposite. They are trying to sell their biased view which is always based upon the idea of the quantity theory of money – the same exact philosophy used by the central banks in Quantitative Easing.
The ONLY way the monetary system will break is with a STRONG dollar – not a weak dollar.The monetary system has broke ONLY when the dollar rises as in 1934 and 1985. The US always wants a weak dollar to increase corporate profits and and create a trade surplus. It is really quite amazing how these people keep preaching the same nonsense for decades and have never been right for more than 30 years.
Cycles & Turning Points
Armstrong Economics Blog/Uncategorized
Re-Posted May 9, 2019 by Martin Armstrong
QUESTION:
Hello Mr. Armstrong;
Rome was fantastic!. I find it very interesting that you hold the conference on the dates when the markets hit their peak and I come back and Monday we start the decline that you cautioned us that we could see at the conference. Was this planned:)?
Cycles are amazing and now i have to live and invest only based on the cycles.
Thank you again for Rome and bringing Nigel!!
BB
ANSWER: Yes, I do time the conferences around the cycles. That gives us something to talk about. They are simply points where the human emotions shift. This pull back is necessary for we are treading water (i.e. time) until the consolidation is complete in order to produce the next phase.
Just for the record for those who did not attend the Rome WEC, Nigel came because, as he put it, we are the “alternative to Davos.” He was not paid a fee. He had agreed to come and wanted to attend the conference and be at our famous networking cocktail party.
As things turned out, Nigel started his new BREXIT Party after he agreed to come to the WEC. I was concerned he would be too busy to attend with the change in plans. Nevertheless, he flew in for a few hours to make his appearance and then sadly had to leave because of a rally back in the UK the next morning.
Centinel2012 