Tag Archives: Depression

Sep 30 2020

Why Alberta Better Exit Canada & Fast!


Armstrong Economics Blog/Canada

Re-Posted Sep 30, 2020 by Martin Armstrong

COMMENT:  Dear Martin,
I have followed your work for years now I want to thank you for your tireless efforts to provide insightful information, the world needs you and your information more than ever.
I am writing to you because of the concern specific to Alberta, and Canada. If you want an example of a country that is being run by the United Nations look no further than Canada. We have Justin Trudeau that claims he is the First Post Nationalist Leader and that Canada is the First Post-National State.

Basically, he seems to be taking his orders from the un-elected United Nations. Trudeau has given the Finance Minister position to Chrystia Freeland, journalist Reporter turned politician, carrying out the mandate of the World Economic Forum where she is a member of the Board of Trustees along with the United Nations and the WHO.

Every day our media outlets in Canada are getting a constant diet of COVID case tallies, telling us we are all racist and that we are killing the planet with human activities and if you question this narrative you are canceled or shamed. The same ideology outlined the World Economic Forum for Canada under their Strategic Intelligence page.

Any insights you can provide us the direction of Alberta would be greatly appreciated.

MG

ANSWER: Trudeau is about as corrupt as they come. It is curious how the claimed left, who is so concerned about getting the rich back and being fair, is always the most corrupt. It reminds me of that famous line, “The lady doth protest too much, methinks,” from the play Hamlet by William Shakespeare. Trudeau suspended Parliament when it was investigating the ethics controversy where countless millions went to his family of deals. While this is seen as a coverup, there is far more at stake here. Can you imagine if Trump even tried to suspend Congress? The Democrats paint Trump as a tyrant when the real tyrant is north of the border.

Indeed, it was just last year when Trudeau told the New York Times that Canada was becoming a new kind of country, not defined by our history or European national origins, but by a “pan-cultural heritage” and actually said: “There is no core identity, no mainstream in Canada.” Trudeau concluded that Canada is “the first post-national state.” Even the New York Times remarked that Trudeau was being very “radical.”

In truth, people who think the United Nations is not really threatening their future better open their eyes. Greta Thunberg, the Swedish climate activist, was flown into Alberta, Canada, just before the Canadian elections. Who paid for that? Gates, Schwab, World Economic Forum & the United Nations who want to seize control of Canada to cut off oil production. Trudeau is as corrupt as they come. He is selling out Canada to the United Nations and had the audacity to suspend Parliament. That is a dictatorship. His “first post-national state,” means subservient to the United Nations.

The real question is whether Alberta can extricate itself from this madness. I would expect  Trudeau to at least attempt to send in federal troops to suppress and attempt to withdraw. That that is the line that needs to be crossed to save the future of Canada. On July 1, 1867, with the passage of the British North America Act, the Dominion of Canada was officially established as a self-governing entity within the British Empire. A separatist movement may come to a head in 2021 in Canada. The Candian press has laid down all independence, and press conferences held by Trudeau are orchestrated to the point that nobody is allowed to ask any questions without pre-approval. We have a Panic Cycle next year in the C$. There remains the risk of me historic lows against the Greenback.

Sep 29 2020

Boris Johnson & Bill Gates


Armstrong Economics Blog/BRITAIN

Re-Posted Sep 28, 2020 by Martin Armstrong

There are rising concerns that Boris Johnson fought for BREXIT so he could run into the arms of Bill Gates and the UN consortium including Klaus Schwab and the World Economic Forum pushing for this Globalist Agenda with even George Soros. Some are deeply concerned has Boris been bought by Gates? If someone demands an investigation, will Boris suspend Parliament as Trudeau did in Canada?

Sep 26 2020

New Political Party Launched in Britain


Armstrong Economics Blog/BRITAIN

Re-Posted Sep 26, 2020 by Martin Armstrong

Categories: BRITAIN, Politics
Sep 13 2020

Milton Friedman on Real Economics


Armstrong Economics Blog/Economics

Re-Posted Sep 13, 2020 by Martin Armstrong
Sep 13 2020

Paris Erupts into Protests Against Macron & Lockdowns


Armstrong Economics Blog/Civil Unrest

Re-Posted Sep 12, 2020 by Martin Armstrong

Today in Paris, many thousands of “yellow vests” took to the streets to demonstrate against French President Emmanuel Macron and the French government over its draconian lockdowns and CORONA restrictions. This was a massive riot where police not only used tear gas and batons, they were firing both rubber bullets and live ammunition. These lockdowns are by no means about taking care of people. This is raw tyranny and we will see if they even stand for election in 2021/2022.

The next French Presidential election will begin Friday, April 8, 2022. What is interesting is when we look at the Quarterly Array on the French CAC-40, it is clearly showing the first quarter will be very volatile. This is clearly the impact of the French elections and there is a deep concern that Macron will even suspend the elections under the pretense of a national emergency as we saw in New Zealand. The protests of the “yellow vests” against Macron began back in November 2018. They were initially triggered by rising fuel prices and a pension reform plan. We are looking at sheer political chaos in France as the elections will come 43 months from the beginning of these protests (50% of 86).

Sep 9 2020

ECB Thinking of Buying Bank Stocks


Armstrong Economics Blog/Central Banks

Re-Posted Sep 9, 2020 by Martin Armstrong

QUESTION: Buongiorno signor martin anche se mi piacerebbe chiamarla professore, è la Bce sta comprando azioni delle banche europee grz

AP

ANSWER: The ECB is looking into buying bank stocks because nobody else will. It is the only way to pretend they are meeting their capitalization. They are floating the idea of buying stocks, but they are not expressly saying bank stocks. It is another attempt to desperately try to hold on to this fiction. It will not succeed. They are buying stocks rather than doing bailouts. It amounts to the same thing, but they can claim it is not a bailout politically.

Sep 3 2020

Australian Tyranny – Is Revolution Coming?


Armstrong Economics Blog/Australia & Oceania

Posted Sep 2, 2020 by Martin Armstrong

This video shows the tyranny in Australia as they arrested a pregnant woman for posting about a protest against the lockdowns. We have warned that the War Cycle, which includes Civil Unrest, turned up in 2014 and will build into intensity by 2022. This is not a forecast that has ever given me any pleasure. The two components are international war and civil unrest which leads to revolution. The worst seems to be on schedule for the Pi Target after 2024 and the peak of this 8.6-year business cycle wave of the Economic Confidence Model.

On January 1, 1901, the six colonies joined together forming the Commonwealth of Australia. The Revolutionary Cycle in Australia turned up in 2013, just slightly before the global War Cycle which turned up in 2014. The actions of the Australian government have completely turned toward an absolute authoritarian reign. Here you see that they are indeed monitoring all social media arresting a pregnant woman for merely posting on Facebook that a protest would take place. Even the German high court ruled that the government could not stop the protest on August 29th, 2020. Here in Australia, you see that the government has rejected every principle of a free society. Typically, the West would impose sanctions against Australia blocking all trade for they are treating their people no different than Russia invading Crimea as the West alleges, Syria, or Iran. Don’t forget the allegations against Iraq that it was a dictatorship.

The Australian Civil Unrest Cycle should begin to pop next year in 2021 and build into intensity by 2026. These politicians will be voted out of office so there will most likely be claims that in the middle of such a crisis, elections will be suspended. These politicians cannot now allow a free election for anyone who would then side with the people would be moved to arrest these politicians and prosecute them. Therefore, as long as Australian police act like the ones in this video, there will eventually be blood in the streets.

 

After the previous turning point of August 7th, 1964 which picked the Gulf of Tonkin Resolution incident to the day, there were massive protests against the Vietnam War. This is also the era when the Beatles wrote the song Revolution. Today, they would probably be thrown in prison for daring to even sing it. In Britain, the BBC is banning a song Rule Britania because it says they will never be slaves.

Never in my wildest imagination did I ever expect such a wholesale coup against our freedoms. This is what the rest of us face from 2021 on. Politicians no longer represent the people. They have simply gone mad. There are elections coming in 2021 around many places globally. I would expect them to be rigged, or even suspended for those in power doing this sort of oppression will surely not be re-elected. This is a global coup because the socialistic systems are failures which include the pensions for government workers.

Aug 31 2020

Fundamentals & Confidence – Which is More Important in Markets?


Armstrong Economics Blog/Basic Concepts

Re-Posted Aug 30, 2020 by Martin Armstrong

QUESTION: Mr. Armstrong, You have said that fundamentals really mean nothing because the market runs on confidence. What about the fundamentals during the 2008 crash? Didn’t the bankruptcy of Lehman Brothers send the market down and then it was supported by TARP and the central banks?

Thank you;

GD

ANSWER: The entire economy is built upon CONFIDENCE and then that moves in ANTICIPATION of events which often may never even take place. Here is a chart of the Crash of 2008. You can easily see that the bankruptcy of Lehman was not really that devastating. Then you look at when the government passed TARP on October 3rd, 2008. The Dow fell from over 10,000 to mid 7000 levels in 5 days after TARP.  It consolidated briefly but continued lower into the week 0of March 2nd, 2009. Obviously, the market continued to collapse as CONFIDENCE declined and there was NO INDICATION that the government intervention ever worked including the monetization by the Fed.

I have made it very clear that LOWERING interest rates has NEVER saved the day. The $700 billion they handed banks saved the banks, but they NEVER lent the money out. They lacked the CONFIDENCE that the crisis would end soon so they would not lend money and simultaneously people are NOT going to borrow to “stimulate” the economy when they too fear the future is just unknown. These theories are made up by academics who have NEVER traded in their lives. It is impossible to understand these concepts without hands-on experience.

This is what Socrates writes for each day during the crash. You have to approach this objectively. There are more than 70 independent models correlating together to produce these results. Then everything must be looked at also from an international perspective. Internationally, Lehman had more of a bearish impact whereas TARP was seen as more positive internationally. What a difference currency makes.

Friday October 3, 2008

The Dow Jones Industrials made a new low penetrating the previous session’s low and then closed below that level plunging significantly again by 4.75% which strongly suggests we are entering a potential crash mode position. A break of today’s low of 1031025 during the next trading session will warn of a potentially serious decline ahead especially if it closes below today’s low again. The last important high was formed on Monday August 11th at trading days ago. Our projected support for tomorrow lies at 1018098 and a break of that level can set in motion a panic to the downside. Hence, pay close attention at this time.

We did close above the previous session’s Intraday Crash Mode technical support indicator which was 997310 settling at 1048285. The current crash mode support for this session was 999652 which we still closed above implying the market is holding for now. The Intraday Crash indicator for the next session will be 1002412. Now we have been holding above this indicator in the current trading session, and it resides lower for the next session. If the market opens above this number and holds above it intraday, then we are consolidating. Prevailing above this session’s low will be important to indicate the market is in fact holding. The Secondary Intraday Crash Mode technical support lies at 943412 which we are trading above at this time. A breach of this level with a closing below will signal a sharp decline is possible.

Intraday Projected Crash Mode Points

Today……            999652

Previous…          997310

Tomorrow…       1002412

This market has declined for 2 trading days which has been a sharp decline of 5.25%. However, we have not elected any bearish Reversals to date from the high of Wed. 1st.

The Uptrend Line from the last low created at 1036545 tied to the secondary low made on 10/02 remains as resistance standing at 1046421. Only getting above this level on a sustained closing basis will signal a rally to the upside.

Currently, the market remains quite bearish below all our system support indicators with resistance starting at 1037142. The broader cyclical system indicators are also in a bearish position while the long-term trend and cyclical strength are bearish. This market has technically been trading beneath our projected envelope of support at 1050088 warning this decline has been rather reasonable down 10% from the high made 09/19. We have elected all four Bearish Reversals from that high showing weakness.

 

Monday October 6, 2008

The Dow Jones Industrials made a new low penetrating the previous session’s low and then closed below that level collapsing substantially again by 11% warning this market is entering a Panic Sell-Off. Penetrating today’s low 952532 and closing beneath it will tend to confirm that warning. The projected support for the next session lies at 907292. Penetrating this level intraday would warn of a panic to the downside becomes possible which strongly suggests we are entering a potential crash mode position. A break of today’s low of 952532 during the next trading session will warn of a potentially serious decline ahead especially if it closes below today’s low again. The last important high was formed on Monday August 11th at trading days ago.

Our projected support for tomorrow lies at 935730 and a break of that level can set in motion a panic to the downside. Hence, pay close attention at this time.

We did close above the previous session’s Intraday Crash Mode technical support indicator which was 999652 settling at 1032538. The current crash mode support for this session was 1002412 which we penetrated intraday and closed below warning this market is in a panic type sell-off. The Intraday Crash indicator for the next session will be 907292. Normally, when you open back above this pivot number or closed back above it then the sell-off is subsiding. So, watch this number which is dynamic for it changes with each session.

Intraday Projected Crash Mode Points

Today……            1002412

Previous…          999652

Tomorrow…       907292

This market has declined for 3 trading days which has been a sharp decline of 12%. However, the overall decline has been more pronounced falling for 11 trading days. In the process, we have elected all four Daily Bearish Reversals from the high of 09/19.

Our projected pivot point remains as resistance standing at 1029645. Only getting above this level on a sustained closing basis will signal a rally to the upside.

As of now, the market remains quite bearish below all our system support indicators with resistance starting at 1036545. The broader cyclical system indicators are also in a bearish position while the long-term trend and cyclical strength are bearish. This market has technically been trading beneath our projected envelope of support at 1045207 warning this decline has been rather a spectacular crash down where emotions run high 17% from the high made 09/19. We have elected all four Bearish Reversals from that high showing weakness.

 

Tuesday October 7, 2008

The Dow Jones Industrials made a new low penetrating the previous session’s low and then closed below that level plunging significantly again by 8.58% which strongly suggests we are entering a potential crash mode position. A break of today’s low of 943667 during the next trading session will warn of a potentially serious decline ahead especially if it closes below today’s low again. The last important high was formed on Monday August 11th at 1186711 which was 41 trading days ago. Our projected support for tomorrow lies at 928188 and a break of that level can set in motion a continued panic to the downside where extreme support lies at 907521. Hence, pay close attention at this time.

We did close below the previous session’s Intraday Crash Mode technical support indicator at 1002412 settling at 995550 which alerted us to a further decline was likely going into the instant session. The immediate crash mode support for this current session was 907292 which we have now closed back above suggesting the crash is subsiding. The Intraday Crash indicator for the next session will be 907521. Now since we closed back above this indicator in the current trading session, then holding above this indicator for the next session will imply the decline is subsiding. The Secondary Intraday Crash Mode technical support lies at 906159 which we are trading above at this time. A breach of this level with a closing below will signal a sharp decline is possible.

Intraday Projected Crash Mode Points

Today……            907292

Previous…          1002412

Tomorrow…       907521

 

This market has declined for 4 trading days since the last high established at 1088252 from which we have witnessed a decline of 13%. However, the overall decline has been more pronounced falling for 12 trading days which has been a decline of 17%.

Granted, this decline has penetrated the previous key cycle low established at 1045944 and it is sharply lower by 18% from the last high made 09/19. Most importantly, this market entered Crash Mode 3 days ago. This type of pattern warns we are in the throes of a near-term correction which is rather serious at this moment.

Interestingly, this market has fallen down for 5 days from highest close closed below the previous low warning that the market is still vulnerable. The next projected target support lies at 990658 and we have already broken below two extreme projected technical support levels. Naturally, any short position should include a protective intraday stop above the previous high for now.

 

Wednesday October 8, 2008

The Dow Jones Industrials made a new low penetrating the previous session’s low and then closed below that level plunging significantly in panic mode for the fifth consecutive time by 9.17%. This does warn that this market is in crash mode position right now. A break of today’s low of 919478 during the next trading session will warn of a potentially serious decline ahead especially if it closes below today’s low again. The last important high was formed on Monday August 11th at 1186711 which was 42 trading days ago. Our projected support for tomorrow lies at 902755 and a break of that level can set in motion a continued panic to the downside where extreme support lies at 885724. Hence, pay close attention at this time.

We did close above the previous session’s Intraday Crash Mode technical support indicator which was 907292 settling at 944711. The current Crash Mode support for this session was 907521 which we closed above at this time. The Intraday Crash indicator for the next session will be 885724. Up to now, the market has been holding above this Crash Mode indicator in the current trading session, but it is still declining sharply. Granted, it is also moving lower for the next session. A consolidation would only be suggested by opening above this target, and holding this session’s low of 919478 intraday. However, a break of this session’s low followed by a closing below this level as well will warn that a continued sharp decline is still in motion.

Intraday Projected Crash Mode Points

Today……            907521

Previous…          907292

Tomorrow…       885724

This market has declined for 5 trading days since the last high established at 1088252 from which we have witnessed a decline of 15% qualifying this as a correction. However, the overall decline has been more pronounced falling for 13 trading days which has been a decline of 19%.

Granted, this decline has penetrated the previous key cycle low established at 1045944 and it is sharply lower by 20% from the last high made 09/19. Most importantly, this market entered Crash Mode 4 days ago. This type of pattern warns we are in the throes of a near-term correction which is rather serious at this moment.

Interestingly, this market has fallen down for 6 days from highest close closed below the previous low warning that the market is still vulnerable. The next projected target support lies at 966672 and we have already broken below one extreme projected technical support level. Naturally, any short position should include a protective intraday stop above the previous high for now.

Factually, the market remains quite bearish below all our system support indicators with resistance starting at 1031025. The broader cyclical system indicators are also in a bearish position while the long-term trend and cyclical strength are bearish. This market is also trading mostly below the bank of eight moving average indicators suggesting it remains in a mixed posture for now.

This market has technically been trading beneath our projected envelope of support at 1017578 warning this decline has been rather a spectacular crash down where emotions run high 19% from the high made 09/19. We have elected all four Bearish Reversals from that high showing weakness.

 

Thursday October 9, 2008

The Dow Jones Industrials made a new low penetrating the previous session’s low and then closed below that level collapsing substantially for the sixth consecutive time by 10% warning this market remains in a Panic Sell-Off. Penetrating today’s low 857919 and closing beneath it will tend to confirm that warning. Our extreme projected underlying support for tomorrow lies at 799800. This market has immediately declined for 6 trading days. This does warn that this market is in crash mode position right now. A break of today’s low of 857919 during the next trading session will warn of a potentially serious decline ahead especially if it closes below today’s low again. The last important high was formed on Monday August 11th at 1186711 which was 43 trading days ago.

Our projected support for tomorrow lies at 835591 and a break of that level can set in motion a continued panic to the downside where extreme support lies at 819531. Hence, pay close attention at this time.

We did close above the previous session’s Intraday Crash Mode technical support indicator which was 907521 settling at 925810. The current Crash Mode support for this session was 885724 which we penetrated intraday and closed below warning this market is in a panic type sell-off. The Intraday Crash indicator for the next session will be 819531. Normally, when you open back above this pivot number or closed back above it then the sell-off is subsiding. So, watch this number which is dynamic for it changes with each session.

Intraday Projected Crash Mode Points

Today……            885724

Previous…          907521

Tomorrow…       819531

This market has declined for 6 trading days since the last high established at 1088252 from which we have witnessed a decline of 21% qualifying this as a correction. However, the overall decline has been more pronounced falling for 14 trading days which has been a decline of 25%.

Granted, this decline has penetrated the previous key cycle low established at 1045944 and it is sharply lower by 26% from the last high made 09/19. This type of pattern warns we are in the throes of a near-term correction which is rather serious at this moment.

Interestingly, this market has dropped for several days and closed below the previous low warning that the market is still vulnerable. The projected extreme target support for tomorrow lies at 799800 which needs to hold on a closing basis to imply a bounce can form thereafter.

Up to now, the market remains quite bearish below all our system support indicators with resistance starting at 952532. The broader cyclical system indicators are also in a bearish position while the long-term trend and cyclical strength are bearish. This market is also trading mostly below the bank of eight moving average indicators suggesting it remains in a mixed posture for now.

This market has technically been trading beneath our projected envelope of support at 999397 warning this decline has been rather a spectacular crash down where emotions run high 25% from the high made 09/19. We have elected all four Bearish Reversals from that high showing weakness.

 

Friday October 10, 2008

The Dow Jones Industrials made a new low penetrating the previous session’s low after opening below it and then closed below that level collapsing substantially for the seventh consecutive time by 27% warning this market has been in a Panic Sell-Off after 7 days down. It is possible that we may have a temporary low forming. The extreme projected underlying support for today was 799800 which today’s action did penetrate intraday but we closed above that at the end of the session. Our extreme projected underlying support for tomorrow lies at 713534.

Indeed, this market has declined sharply bringing to bear the full scope of emotions in such declines. We need a higher open and a break above today’s high of 890128 while holding today’s low of 788251 to suggest a bounce is in order.

The Projected Breakout Resistance indicator resides at 865254 which we are already exceeded intraday but the market closed below it as of this session’s closing at 845119 Still, this typically implies that this market will rally to test overhead resistance if we exceed that level again intraday.

Intraday Projected Breakout Resistance

Today……            923667

Previous…          941209

Tomorrow…       865254

Clearly, this market has been in crash mode position up to now. A break of today’s low of 788251 during the next trading session will warn of a potentially serious decline ahead especially if it closes below today’s low again. The last important high was formed on Monday August 11th at 1186711 which was 44 trading days ago.

Our projected support for tomorrow lies at 760663 and a break of that level can set in motion a continued panic to the downside where extreme support lies at 745394. Hence, pay close attention at this time.

We did close below the previous session’s Intraday Crash Mode technical support indicator at 885724 settling at 857919 which alerted us to a further decline was likely going into the instant session. The immediate Crash Mode support for this current session was 819531 which we have now closed back above suggesting the crash is subsiding. The Intraday Crash indicator for the next session will be 745394. Now since we closed back above this indicator in the current trading session, then holding above this indicator for the next session will imply the decline is subsiding.

Intraday Projected Crash Mode Points

Today……            819531

Previous…          885724

Tomorrow…       745394

 

This market has declined for 7 trading days since the last high established at 1088252 from which we have witnessed a decline of 27% qualifying this as a correction. However, the overall decline has been more pronounced falling for 15 trading days which has been a decline of 31%.

Granted, this decline has penetrated the previous key cycle low established at 1045944 and it is sharply lower by 32% from the last high made 09/19. This type of pattern warns we are in the throes of a near-term correction which is rather serious at this moment.

Interestingly, this market has dropped for several days and closed below the previous low warning that the market is still vulnerable. The projected extreme target support for tomorrow lies at 713534 which needs to hold on a closing basis to imply a bounce can form thereafter.

Presently, the market remains quite bearish below all our system support indicators with resistance starting at 943667. The broader cyclical system indicators are also in a bearish position while the long-term trend and cyclical strength are bearish. This market is also trading mostly below the bank of eight moving average indicators suggesting it remains in a mixed posture for now.

This market has technically been trading beneath our projected envelope of support at 981467 warning this decline has been rather a spectacular crash down 31% from the high made 09/19. We have elected all four Bearish Reversals from that high showing weakness. We have not elected any Bullish Reversals from this low today.

Aug 26 2020

Belarus & the Covert Civil Unrest


Armstrong Economics Blog/Civil Unrest

Re-Posted Aug 26, 2020 by Martin Armstrong

QUESTION: Dear Mr. Armstrong, I am writing from Lithuania, next to Belarus, which is is undergoing some serious civil unrest. It is anyone’s guess whether the presidential election outcome was faked/real, but the fact is that President Lukashenko is under serious pressure aimed at him being ousted. A question arises if the concerted effort to remove him was precipitated by his skeptical attitude towards all things covid19. I have to admit that I am no big fan of any dictator including Lukashenko, but the timing seems odd, as TPTB cannot care less for human rights abuse- Saudi Arabia is ok to them.

MY QUESTION IS IF BILL GATES IS PULLING THE STRINGS, as Lukashenko made a mockery of the corona affair? There were some obviously staged events in Lithuania to support the uprising in Belarus. And what worries me most, is the fact that participants were joining gloved hands and had masks on, sort of voluntary slaves. Ironically, the Belarus dictator let his people live their normal lives, including football games, when my Lithuania was under lockdown, and my 9 yo daughter has some anxiety issues since. Sort of Stockholm syndrome.

Keep up your great work.

PS

ANSWER: President Lukashenko is often called the accidental last dictator of Europe. There is no question that the Belarusian government has been against the climate change movement. Only in January 2020 did it announce an action plan to phase out polymer packaging. However, Lukashenko also rejected COVID-19 and did not lockdown his economy.

The rumor is that the opposition is being funded by Soros. Lukashenko accused the West of fomenting unrest as he sought to consolidate his grip on power amid widening protests. But it may not be governments, but clandestine activists on a global scale. Lukashenko spoke as the European Union rejected the official results of the vote. The EU naturally expressed its solidarity with protesters. The EU said it’s preparing sanctions against Belarusian officials responsible for the brutal post-election police actions. Lukashenko is also keeping in close contact with Putin in Russia.

Aug 21 2020

Solution – Legal Battle Against Socialism


Armstrong Economics Blog/The Hunt for Taxes

Re-Posted Aug 21, 2020 by Martin Armstrong

We are in need of a qualified lawyer prepared to file a lawsuit against Progressive Taxation as a denial of Due Process and Equal Protection of the law. For centuries, people have debated whether the wealthy should pay more taxes than everyone else and what even constitutes the wealthy. The definition of the rich has constantly changed. It has now fallen to not just an individual, but to household income. that can easily be expanded to your children if they still live at home because they cannot afford rent or to buy a house thanks to non-dischargeable school loans for worthless degrees. We have unsettled questions as to who is the rich a person or a family, and then just how much more they should pay on a percentage basis compared to everyone else.

These issues have never been resolved despite the fact that the government has been shifting the definitions and presidential elections constantly push class warfare. This notion of “progressive” taxation has escalated into demand to end all freedoms and even confiscate the wealth of the so-called rich which comes down to the top income tax bracket which was $250,000 was expanded to 37% for $518,401 or more. This issue even sparked one of the early battles over tax distribution. Supporters of progressive taxation favored a graduated tax structure, where the tax rate
would increase with the taxpayer’s income. Opponents of progressive taxation believed that a person should not pay a higher tax rate just because he or she earned a higher income for this denies equal protection of the law and creates class warfare which began with Karl Marx.

Thanks to Marx, the debate over progressive taxation began to intensify at the turn of the 20th century with the passage of the Sixteenth Amendment, which permitted a federal income tax whereby the founders prohibited any direct form of taxation. During the colonial days, a tax they created was a “faculty tax” which did not tax income, but your ability to earn income. Then in 1913, Congress passed its first “lawful” income tax which was progressive because this was the attitude that even dominated the Supreme Court at that time.

Before the creation of the United States, taxes were paid to the United Kingdom by the Colonies who also imposed local taxes. The Articles of Confederation did not give the federal government any power to tax leaving that to the States. In England, the king needed the consent of the people to be taxed which is why he would call Parliament who represented the people. To this day, it is Congress that pretends to have the “consent” of the people to be taxed. Then in 1787, the US Constitution became law and it did give the federal government that power to tax indirectly which was primarily tariffs, and a portion of those taxes had to be given back to the states based on population. The Supreme Court ruled in 1797 what was meant by Direct Taxation (see Hylton v. United States, 3 U.S. (3 Dall.) 171 (1797))

Interestingly, it took one 51.6-year wave of the Economic Confidence Model where the fiscal mismanagement of the states began to put pressure on further taxation. From 1837, some states began to add income and property taxes. The Civil War led to the Revenue Act of 1861 which allowed a federal income tax which was to expire with the Civil War. This was direct taxation which was then found unconstitutional later in Pollock v. Farmers’ Loan & Trust Co., 157 U.S. 429 (1895). It was finally in 1911 when Wisconsin became the first state to adopt an individual and corporate tax. This was upheld with respect to corporations in Flint v. Stone Tracy Company, 220 U.S. 107 (1911).

It wasn’t until the 16th Amendment in 1913, that the federal government was granted the power to levy income tax on both property and labor and included corporate and individual income tax. This went to the Supreme Court which held that the income tax was then constitution under the 16th Amendment (see: BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)). The income tax debate did not begin until it was no longer the rich being taxed, but it was applied under socialism and Roosevelt with the birth of the payroll tax to affect the pocketbooks of an entire nation with World, people began to pay more attention.

There is no question that many scholars expressed deep concerns about progressive taxations. They criticized progressive taxation on the basis that it was “unfair” to pay greater than one’s proportionate share. Any such proposition that one’s ability to pay is discrimination indistinguishable from race, gender, or religion. The courts just held that it is unconstitutional to draft into the military only boys and not girls. Under these same principles, it is unconstitutional to tax one person at a higher percentage because of his ability to pay. This is the very essence of Marxism which not only violates the Ten Commandments, but it clear divides society creating class warfare.

In 1952, the publishing of “The Uneasy Case for Progressive Taxation,” by Professors Blum and Kalven, did we come to a systematic and very scholarly analysis of progressive taxation. They criticized progressive taxation primarily on economic grounds but conceded its constitutionality. Later in 1985, another book was published: “Takings: Private Property and the Power of Eminent
Domain” authored by Professor Richard Epstein. Here Epstein argued that progressive taxation was not constitutional suggesting that the Fifth Amendment Takings Clause prohibited such progressive taxation.

No person shall be … deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

The Supreme Court has never definitively upheld progressive taxation. You cannot have liberty and your right to property which turns on your class any more than on your race, gender, religion, or your sexual preference. The Supreme Court should, in fact, find progressive taxation totally unconstitutional. We may need to challenge this now in order to block the Socialist Agenda about to destroy the very freedoms of the United States.

What we need is a real law firm ready and willing to bring a class action lawsuit to start the only effort we have to prevent Socialism destroying our nation like Venezuela or the old Communist Regimes. You do not create prosperity by stealing from one person and handing it to another. If it is illegal to do so if an individual robs another, then the same principle applies if politicians exonerate themselves for committing the very same act. Equal Protection means we must all be equal under the eyes of the law.