A Real Fact Check on the Trump Tax Cuts


While the Democrats love to yell at the rich for always getting richer, in 2016, there were 541 US billionaires with wealth totaling about $2.4 trillion. In 2019, there were 607 US billionaires with wealth totaling about $3.1 trillion. Of course, this is based on stock market valuations and is not cash in the bank. There is no doubt that the wealthiest Americans have gotten wealthier under Trump, though others have also gained.

According to the Federal Reserve, the combined wealth of the top 1% of American households, which includes all members of Congress, increased 18% from the fourth quarter of 2016 to the third quarter of 2019 — from $29.18 to $34.53 trillion. However, the combined wealth of the bottom 50% of households actually increased 55% from $1.08 trillion to $1.67 trillion. In truth, there were far more people who have benefited from the Trump Tax Cuts than what the Democrats ever will admit.

That is a REAL Fact Check!

South America – Economically & Politically on Fire


South America has been intertwined with socialism and corruption. Political stability and economic recovery for South America have been a wish that has seemed to be always very elusive. But the hopes and dreams have never been fulfilled. In many countries, politicians with sole claim to power are pushing to power, heavily indebted countries are facing bankruptcy, the rich are getting richer, the poor are poorer, demonstrators and police are fighting bloody street battles. An entire continent is in turmoil — South America is on fire! There appears to be a political-economic crisis that is coming to a boil.

Today, South America appears to be unraveling economically and politically. It was only a decade ago when its future seemed bright and all we heard was about investing in emerging markets. Its economy was growing whereas poverty and income inequality were in decline. Yet, the economic boom came on the back of commodities. The abundance brought by high commodity prices even allowed counter-cyclical policies at the time of the US subprime crisis. As always, foolish investors pour in money without regard to historical problems with repaying debt.

As the economies implode and political chaos rises, commodity production will decline over the next two years and this may set things up for the commodity boom into 2024 based on a SHORTAGE OF SUPPLY rather than outright demand.

 

2022 & Repo Crisis


QUESTION:  Mr. Armstrong I Hope your health is holding up with all the viruses. My first question is Feb 13 the Fed printing money increased by 13 billion however it is buying short term debt as in 1-day debt how long can they keep this up it is a fake stimulative of the stock market right?

The second question Do you still see something happening to Trump in 2021 ?

Thank you

S

ANSWER: The year 2022 looks to be more of an issue for the president. I do hope Trump is there for 2021, because I fear a career politician will not understand the Repo and Monetary Crisis. They will do whatever the Deep State instructs them to do. The Repo Crisis is in no way similar to people’s understanding of the crisis. I am not concerned about the amount of money. They are going to be forced to be the market-maker in Repo permanently.


Locusts have plagued farmers for millennia. When we look at the plague of locust in Africa which is now spreading to China, it brings up visions of the Book of Exodus, which recounts around 1446 BC the Egyptians experienced an exceptional ravenous Plague of Locusts which was the eighth Biblical plague. As Exodus describes, “They covered the face of the whole land, so that the land was darkened, and they ate all the plants in the land and all the fruit of the trees that the hail had left. Not a green thing remained, neither tree nor plant of the field, through all the land of Egypt.”

Plagues of Locusts had been recorded in history since ancient times. Just where these plagues have taken place is interdependent with the weather. The insects can arrive quite unexpectedly when even the wind changes direction blowing them in from far distant lands. They also seem to swarm more aligned with cold weather and may reach plague levels during climate change. Besides the famous Biblical account as the eighth plague, the Ancient Egyptians also carved locusts on tombs in the period 2470 to 2220 BC about 1,000 years prior to the Biblical plague about 1446 BC. We even find mention of such plagues by Homer in his Iliad recording locusts taking to the wing to escape a fire. Looking at the Quran, we also find mention of locust plagues.  Pestilence in the northwestern provinces of China during 311 AD resulted in the death of 98% of the population. They blamed the crisis on locusts. There was a link also with the rise in the population of rats that spread disease since they devoured the locust carcasses. In the ninth century BC, the Chinese authorities even appointed anti-locust officers suggesting that the problem was serious.

Aristotle was interested in the problem and conducted studies into locusts to try to understand their breeding habits. The Roman historian, Livy, also mentions that there was a devastating plague in Capua in 203 BC. Livy associated human epidemics following locust plagues which were most likely caused by starvation. Livy, on the other hand, associated the rise in human disease with the stench from the putrifying corpses. Nevertheless, there were realizations taking hold that there was a clear link of human disease outbreaks to locust plagues.

From a cyclical perspective, using the data from China, there were 116 major outbreaks over a period of nearly 2000 years. The average plague event seemed to be 17.2 years which seems to align with Pi. Research has discovered that serotonin, the brain chemical involved in depression and anger in humans, turns out to have another surprising role transforming desert locusts from a solitary lifestyle into swarming voracious insects that can devour orchards and fields in a matter of hours. The findings were published in Science, which may point the way to new locust-control methods. They are a solitary insect that shuns other members of its species and flying only by night. However, cyclically, when their densities reach a certain threshold, locusts become gregarious. It is at this time when they seek out one another’s company and reproduce explosively. This is when massive swarms emerged and they then can move thousands of kilometers beyond their usual habitats. The behavior changes unfold with a complete physical makeover, taking several generations, during which the insects first turn pink and eventually black and bright yellow.

During the last two millennia, locust plagues continued to appear at irregular intervals with the main recorded outbreaks of the desert and migratory locusts occurring in Africa, the Middle East, and Europe. Other species of locusts caused havoc in North and South America, Asia, and Australasia. The Bombay locust (Nomadacris succincta) was a major pest in India and southeastern Asia in the 18th and 19th centuries but has seldom swarmed since the last plague in 1908. Such swarms can ravish crops, causing famine and consequent social unrest. The Chinese for more than 2,000 years have had officials recording details of the outbreaks with respect to their frequency and severity, the affected areas and the number of people who died of famine following infestations. A recent study shows that locust swarms in China align with periods of climate change turning colder. (see: Thousand-year-long Chinese time series reveals climatic forcing of decadal locust dynamics.)

The desert locusts which are swarming right now have a long history of devastation. Owing to the destructive habits of locusts, they have been a representation of famine in many Middle Eastern cultures. During the spring of 1747, desert locusts arrived outside Damascus eating the majority of the crops and vegetation of the surrounding countryside. Historical accounts described them like a black cloud that blocked the sun. They covered everything including the trees and the crops. There was also a major swarm in 1915, known as the Ottoman Syria locust infestation, which devastated Palestine, Mount Lebanon, and Syria. Right now, the 2019–2020 swarm has impacted East Africa infesting Ethiopia, Kenya, Eritrea, Djibouti, and Somalia with the desert locust. This is what has spread to Pakistan and appears headed to devastate China. The government in China is now facing a Locus Plague threatening the harvest. These are the desert variety and officials are now warning local authorities to prepare for the possible arrival of the voracious insects.

The desert locust (Schistocerca gregaria) which is now threatening China is particularly notorious. Found in Africa, the Middle East, and Asia, they inhabit some 60 countries and can cover one-fifth of Earth’s land surface. Desert locust plagues may threaten the economic livelihood of one-tenth of the world’s humans. Such a desert locust swarm can be 460 square miles in size and pack between 40 and 80 million locusts into less than half a square mile. Each locust can actually eat its weight in plants each and every day. Therefore, a swarm of such size would eat 423 million pounds of plants every single day.

The rise in such a Plague of Locusts is by far a serious event which strangely may they align with global cooling. They tend to result in major famines and disease. In the Horn of Africa, the situation remains extremely alarming, specifically KenyaEthiopia and Somalia where widespread breeding is in progress and new swarms are starting to form. This is representing an unprecedented threat to food security and livelihoods at the beginning of the upcoming cropping season. However, locust swarms can travel vast distances. In 1954, a swarm flew from northwest Africa traveled to Great Britain. In 1988, another made the lengthy trek from West Africa to the Caribbean across the Atlantic Ocean.

On June 12, 1873, farmers in southwestern Minnesota saw what looked like a snowstorm coming towards their fields from the west. Then they heard a roar of beating wings and saw that what seemed to be snowflakes were in fact locusts. In a matter of hours, knee-high fields of grass and wheat were eaten to the ground by hungry insects.

The Rocky Mountain locust’s dramatic descent was just the beginning. For five years, from 1873 to 1877, grasshoppers destroyed wheat, oat, corn, and barley fields in Minnesota and surrounding states. In 1876 alone, grasshoppers visited forty Minnesota counties and destroyed 500,000 acres of crops.

The extinction of the Rocky Mountain locust has been a source of puzzlement. It had swarmed throughout the west of the United States and parts of Canada in the 19th century. Albert’s swarm of 1875 was estimated to cover 198,000 square miles (an area greater than the area of California) with some 12.5 trillion insects. The last specimen was seen alive in Canada in 1902. Recent research suggests the breeding grounds of this insect in the valleys of the Rocky Mountains came under sustained agricultural development during the large influx of gold miners. It remains possible that the gold miner destroyed the underground eggs of the Rocky Mountain locust.

 

The European Bank Scandal Nobody Talks About


Last October, the European Union’s (EU) top court ruled in favor of Polish consumers who took out mortgages in Swiss Francs, allowing them to ask Polish courts to convert the loans into the local zloty currency in a blow for lenders. Back in October 2019, the Court of Justice of the European Union, based in Luxembourg, gave a judgment in favor of Polish victims of unfair mortgage agreements crafted by the banks. The bankers created mortgage loans in Swiss francs to be reimbursed in Polish zloty claiming that the currency was very stable and it was, therefore, a good deal. When the Swiss franc peg broke on January 15, 2015, mortgages throughout Europe were sent into turmoil for the bankers had been selling their mortgages linked to the Swiss franc.

The banks involved in crafting mortgages linked to the Swiss franc were Santander, BCP, BNP Paribas, and Commerzbank, as well as Poland’s biggest lenders PKO BP and Getin Noble Bank. Crafting such complex structures for the consumer is not something that will hold up very well in Europe moving forward.

Fed Cuts Rate on Schedule!


The Federal Reserve is in full panic mode. The Federal Reserve cut interest rates Tuesday in a rare emergency meeting, responding aggressively to the growing threat the coronavirus poses to the economy and markets. The Fed lowered its key federal fund rates by half a percentage point to a range of 1% to 1.25%, the central bank said in a statement.

We warned over the weekend that Socrates had pinpointed this week and then the week of March 23 for actions by the Fed. The Fed is between a rock and a hard place. It had to act in response to the collapse in economic data for the 1st quarter, but at the same time, rates are rising in the real world due to perceived credit risks. This means that the Repo Crisis will get worse and the Fed will have to become the permanent market-maker to maintain short-term rates at these levels.

The steep cut of 50 bp was an emergency half-percentage point rate cut on Tuesday in an effort to protect U.S. economic growth from the impact of the coronavirus outbreak. However, the production lines are already declining. The Fed is looking at how the press has whipped this up into a global panic. But as we can see, volatility will rise further at the end of the month and we should expect this to manifest in a serious escalation of the Repo Crisis as early as May/June

Federal Reserve Chair Jerome Powell Statement and Press Conference Following 50 Point Fed Drop…


Earlier this morning the Federal Reserve (Fed) announced a .50 drop in their lending rate in response to the potential for economic impacts from the coronavirus.  Following the rate cut Federal Reserve Chair Jerome Powell delivered a statement and held a press conference.  [Video Below]

Why Goldbugs Get Crushed


QUESTION: This is what infuriates those that like gold. All of the shorting. Why? No other sector looks like this. So how is it that gold miners are restricted but no other sector sees shorting to the extent that restrictions are in place??? Gold is $1600 and these stocks traded double this price in 2008 with gold at $800. You ask why “goldbugs” are so angry, this is your answer.

S

ANSWER: For decades, I have watched “The Club” rally the metals and then crash them because the goldbugs treat it as a religion rather than a market. Every rally is touted as, here we go, the world will crash and only gold will survive. The Club uses that sentiment against them all the time for they know it is easy money. When they step back and look at the metals as markets, then they will win. Many other markets have made long-term profits but they are always demonized by the goldbugs. Why? I believe that some of the people promoting gold are the very ones involved in selling it to them. Everything has a cycle. It goes up and goes down. These chants from the goldbugs are not realistic and they cost countless people their life savings as they get sucked in by people who act like used car salesmen.

Short sale restriction is a rule that came out in 2010 and it’s also referred to as the alternate uptick rule, which means that you can only short a stock on an uptick. You will note that there is no such thing as a long buy restriction where you can’t buy a stock as it’s going up.

Inevitably, the goldbugs blame shorts. That is NEVER the case in any crash. The real cause is that you have exhausted the buying. When you run out of buyers, that is when markets become vulnerable. The smart do not short, they sell to take profits. That starts the decline and the hated short-player is blamed but never found.

The short selling rule came in only because of shorting Lehman Brothers. When the shorts turned on Goldman Sachs, they pulled the strings. But those were shorts looking at reality, not speculative. There has NEVER been a discovered mythical short position that causes the entire market to collapse.

I have stated countless times that gold will rally ONLY when the general public perceives there is a crisis with the government. Forget deficits, quantitative easing, and fiat currency. They will never convince the average person to take gold seriously. When you begin to look at the market without emotions and trade them up and down, then you will see the light.

Carbon Tax Will Lead to Bloodshed & Revolution


New York Time Map of Carbon Taxes

In Germany, the excuse to help save the planet is always about adding more taxes to punish the people for just living. Already, there is a 7% value-added tax (VAT) on meat. German politicians are proposing to raise the tax on meat to 19%. Of course, this is to lower CO2 by decreasing the nation’s consumption of meat, which is being touted as a win for the environment. The New York Times chart of the world showing carbon taxes is interesting. This entire global warming is being embraced by countries only as an excuse to raise more taxes. They are going broke everywhere. There is no movement for reform or to provide any analysis as to where this trend leads at the end of the day.

The taxes raised do not go to anything that cleans the environment. The entire theory is PUNISHMENT for just living. Where this will end is simply bloodshed and revolution. Welcome to the major political change coming by 2032.