Pelosi Visits Taiwan


Armstrong Economics Blog/Politics Re-Posted Aug 3, 2022 by Martin Armstrong

Speaker Nancy Pelosi landed in Taiwan on Tuesday night despite warnings from both Washing and Beijing. The nature of her trip was so secretive that it was not on her official itinerary. Now, the true nature of her visit is coming to light. “We take this trip at a time when the world faces a choice between autocracy and democracy,” Pelosi said. “We cannot stand by as the CCP proceeds to threaten Taiwan — and democracy itself,” Pelosi said in a statement. “Our congressional delegation’s visit should be seen as an unequivocal statement that America stands with Taiwan, our democratic partner, as it defends itself and its freedom.”

Her statements blatantly disregard the One China policy and all but confirmed that the US would support Taiwan if China invaded. In fact, her tone was so forceful it seemed as if she may be pressuring Taiwan to break away from China. China did not shoot down her plane as some Chinese commenters speculated, but they did flex their military muscles by conducting military exercises near the Taiwan Strait before Pelosi arrived. China does not want a war – but will they be pushed into one?

The nature of Pelosi’s visit has finally been disclosed. She will meet with President Tsai Ing-wen on Wednesday, and some news outlets are reporting that she plans to meet with activists who are outspoken about China’s human rights violations. Pelosi seems to be pushing the nation to liberate itself from the One China policy. One must wonder if Washington expressed dismay publicly while secretly endorsing Pelosi’s monumental trip. China has already punished Taiwan by banning it from exporting 100 food items, which will certainly hurt Taiwan’s fishermen and farmers. They are likely calculating their next move against the US. Expect tensions between the US and China to reach new heights, all due to Nancy Pelosi.

Klaus Schwab – How to Rule the World – Maybe!


Armstrong Economics Blog/Civil Unrest Re-Posted Aug 3, 2022 by Martin Armstrong

Klaus Schwab does not understand human nature or how the world economy functions. He preaches Stakeholder Economics which failed and was instituted during the Depression BECAUSE there were no government programs. The theory then was that companies should contribute to saving society. It failed because there was no coordination, for every company was independent, and they would contribute to what they saw or had a bias toward.  His “Stakeholder Economics” is not his own idea. He took it from Berle and Means.

Milton Friedman, back in 1970, exposed how Stakeholder Economics was inefficient and stupid. He laid out that such a role was that of government, not corporations, whose #1 fiduciary obligation was to its shareholder. Under Schwab, I could say, “OK I will go public; everyone sends in money. I will give you shares in return and then say — OMG, there are people starving in Africa!” So, I decide to give 50% of all the profits to them and not my investors. This is Stakeholder Economics.

The history of the Volkswagen brand began with the “Käfer”; development work on this Nazi prestige project began in 1934. On May 28, 1937, it was formally established. The name was changed to “Volkswagenwerk GmbH” in 1938. With the outbreak of war, it became the arms industry. But it was produced under the direction of Hitler was called the Volkswagen (“people’s car”). This is the Stakeholder Economics of Schwab today. I can tell you that, personally, Schwab is a control freak. He runs the WEF with an Iron Fist. Errors are not tolerated.

Schwab is actually advocating fascism where he wants to control the future by controlling the production of all corporations. His dream of world domination is much deeper than simply communism, where his hero remains Lenin.

Lenin nationalized all manufacturing and industry throughout Soviet Russia. This is what Schwab is advocating to get them to “voluntarily” surrender their fiduciary duty to his one-world government to end the potential war as was structured in the EU. Schwab pushed for that and his bedfellows, George Soros, poured money into Britain to try to storm BREXIT.

The one-world government of the Roman Empire did not prevent civil war and uprisings. Julius Caesar said men believe what they want to believe. That certainly applies to Schwab and Soros. They only look at what they want to hear from the dead economic theories.

Lenin failed to understand human nature. He requisitioned surplus grain from peasant farmers to feed his Red Army in addition to nationalizing all manufacturing. These measures proved disastrous. Under the new state-owned economy, both industrial and agricultural output completely plummeted. The very people who understood how to run their companies or when to plant crops were capitalists who were typically killed or imprisoned. This policy led to an estimated five million Russians who died of famine in 1921 alone. The living standards across Russia plunged into abject poverty. This is the hero worshiped by Schwab!

There began a massive uprising, as we see in Sir Lanka. The civil unrest threatened the very existence of Lenin’s Soviet government. Lenin used the secret police (Cheka) to silence all political opposition. This was a rein of terror targeting both his opponents and challengers within his own political party. Schwab sees this as a necessary tool, and thus this is why he wants total digital ID to restrict movement using pandemics that will most likely be created for control. What they did with COVID may not have established a precedent. It may have hurt so many people that the attempt to initiate a repeat performance itself is more likely to erupt in civil unrest next year on a major scale.

Indeed, there was an attempted assassination on Lenin by Fanya Kaplan, who shot him in the shoulder and neck as he was leaving a Moscow factory in August 1918. Lenin was badly injured. This unleashed the Red Terror carried out by his secret police. They unleashed a campaign of mass executions against supporters of anyone who supported the czar. Russia’s upper classes and any Socialists who weren’t loyal to Lenin’s Communist Party found themselves on the target list.

Augustus (27 BC-14 AD) established the Praetorian Guard to protect the emperor. When Caligula was assassinated on January 24, 41 AD, the Praetorian Guard made Claudius Emperor, who had always been a Republican and played the role of the fool. He did not want to take the throne. He was advised by his Jewish friend Herod Agrippa to take it or he would be killed, for there were those in the Senate who would love to be emperor. So here you see a gold aureus of Claudius with the reverse showing the Praetorian camp. For you see, without an emperor, they were unemployed. They made Claudius emperor, and neither he nor the Senate had any choice.

Consequently, once Lenin created his Secret Police (Cheka), they were not about to let Russia slip back into a monarchy or a democracy, for that would have ended their power, as was the case with the Praetorian Guard upon the assassination of Caligula. The Cheka (Secret Police) is believed to have executed at least 100,000 so-called “class enemies” during the Red Terror between September and October 1918 following the assassination attempt of Lenin.

As a result, Lenin was forced to back down from his authoritarian government, instituting his New Economic Policy, which was a temporary retreat from complete nationalization. The New Economic Policy created a more market-oriented economic system, “a free market and capitalism, both subject to state control.” Lenin’s Red Army eventually won Russia’s civil war, and then in 1922, he formed the USSR with a treaty between Russia, Ukraine, Belarus, and the Transcaucasus (now Georgia, Armenia and Azerbaijan). Lenin thus became the first head of the USSR.

Between 1922 and his death in 1924, Lenin suffered a series of strokes that impacted his ability to speak, and it had been his charismatic delivery of speeches that gave him power, as was the case for Adolf Hitler. Both spoke with a passion that moved the crowds. This opened the door for Joseph Stalin, who was the Communist Party’s new General Secretary, and he quickly began to consolidate his power. Lenin resented Stalin’s growing political power and saw his ascendency as a threat to the USSR. Lenin’s Treaty for the USSR was one built upon mutual respect, whereas Stalin saw it all as one nation with all power at his fingertips.

Lenin died on January 21, 1924, at the age of 53. Knowledge of his death came after Stalin had already come to power. It was Stalin who stole all the food from Ukraine, killing some seven million, and he unleashed the Great Purge of 1936-38. He strengthened the Cheka (Secret Police) to firmly retain power in the same fashion that the Roman Praetorian Guard supported the emperor to retain their jobs.

Beware, this is the same power being crafted by Klaus Schwab. The digital ID for everyone and to create a “social” index of people is the exact way to instill control as well as fear.

FBI Training Materials Designate Gadsden Flag and Historic American Symbols as Evidence of Militia Violent Extremists


Posted originally on the conservative tree house on August 2, 2022

Project Veritas has obtained whistleblower materials from official FBI training and instruction, highlighting images that are defined as evidence of Militia Violent Extremists or MVE’s.  Among the material now identified by the FBI as extreme are pictures of the Gadsden flag, Betsy Ross flag, Patriot symbols, Molon Labe and a host of other historic images that are now defined as evidence of Militia Violent Extremism.

[WASHINGTON, D.C. – Aug. 2, 2022] Project Veritas released a newly leaked document today provided by an FBI whistleblower, which shows how the Bureau classifies American citizens it deems to be potential “Militia Violent Extremists” [MVEs].

In the document, the FBI cites symbols, images, phrases, events, and individuals that agents should look out for when identifying alleged domestic terrorists.

The “Unclassified/Law Enforcement Sensitive” document says it is for “FBI Internal Use Only.”

Of note, under the “Symbols” section, is a prominent citation of the Second Amendment, where it explains that “MVEs justify their existence with the Second Amendment, due to the mention of a ‘well regulated Militia,’ as well as the right to bear arms.”

Right below that, under the “Commonly Referenced Historical Imagery and Quotes” section, Revolutionary War images such as the Gadsden Flag and the Betsy Ross Flag are listed. Each flag displayed in the document comes with a brief description of what it means.

Under the “Common Phrases and References” section of the leaked document, Ashli Babbitt is cited as a person that MVEs consider to be a Martyr.

The same document also refers to Ruby Ridge, Waco, and even Timothy McVeigh, tying in traditional American ideas and symbols with radical and/or violent events in the past. (see and read more)

FBI Director Chris Wray is scheduled to appear before the Senate Judiciary Committee on Thursday [SEE HERE], perhaps someone will ask him about this.

It would appear, if we are to accept the narrative from the FBI, patriotic Americans are all dissidents now.

Foreboding Data, Second Quarter Credit Card Balances Jump 13 Percent, Largest Increase in Twenty Years


It’s not just the scale of the increase that is surprising; it’s the history of how long it has been since this scale of debt increase happened in a single quarter.

(CNBC) – […] Although average hourly earnings are up 5.1% from a year ago, prices have been rising much faster. The Consumer Price Index, which measures the average change in prices for consumer goods and services, jumped a higher-than-expected 9.1% in June, the fastest pace in over four decades.

To bridge the gap, more consumers are relying on credit cards to get by, which has helped propel total credit card debt to $890 billion.

Overall, credit card balances rose 13% in the second quarter of 2022, notching the largest year-over-year increase in more than 20 years, according to a report from the Federal Reserve Bank of New York. (read more)

This doesn’t sound like a good economic omen.

Posted originally on the conservative tree house on August 2, 2022 | sundance

Smooth Operator, Senator Joe Manchin Answers Questions About His Energy Deal with Senator Chuck Schumer


Posted originally on the conservative tree house on August 2, 2022 | sundance |

Democrat Senator Joe Manchin wears the purple tie today as he answers questions from the DC legislative narrative engineers.  There are two videos below.  The first is a general presser with multiple members of the DC media (print journos) about the Green New Deal energy bill he negotiated with Senator Chuck Schumer. The second video is an interview between Manchin and Fox News host Harris Faulkner.

Unfortunately, in both the presser and the direct interview no one pins Manchin down on where “expanded energy production” of the bill is located.  Manchin claims there is legislative language in the deal that supports the fast domestic production of oil, coal and natural gas to meet the immediate issue of skyrocketing energy prices.  However, Manchin is a smooth operator, and he states confidence that rapid and expanded development of oil, coal and gas is part of the deal.  WATCH:

Here’s the segment with Harris Faulkner trying to pin him down on tax increases, energy production, inflation and the 2024 election.

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Job Openings in June Decreased 605,000, Retail Sector Dropped 343,000


Posted originally on the conservative tree house on August 2, 2022

The Bureau of Labor Statistics (BLS) produces a monthly report of available job openings.  The Job Openings and Labor Turnover Summary (JOLTS report) shows the number of available jobs at a captured moment in time.  This JOLTS report [DATA HERE] is a summary of the last day in June.

As you can see within modified Table-1, the number of available jobs dropped by 605,000 in this report.

Hires and separations were little changed, so too was the number of people who quit their jobs.  The big change in this JOLTS survey was the removal of available jobs.  Employers cancelling job openings.

BLS – “On the last business day of June, the number and rate of job openings decreased to 10.7 million (-605,000) and 6.6 percent, respectively. The largest decreases in job openings were in retail trade (-343,000), wholesale trade (-82,000), and in state and local government education (-62,000).”

If we monitor the JOLTS report as an indicator of employment strength reflecting the general pattern of consumers, we can see a pullback in both the goods and service sector.

Retail job openings dropping 343,000 as consumer spending tightens even more due to inflation, and now we see the service side with leisure and hospitality dropping 91,000 openings.

Nancy Pelosi Lands in Taiwan After Kirby Reaffirms “we do not support Taiwan independence”


Posted originally on the conservative tree house on August 2, 2022 | sundance 

There was a lot of back-and-forth hostility between the government of China and the administration of Joe Biden in advance of Nancy Pelosi’s trip to Taiwan.  Some Chinese state media even suggested a possibility that Pelosi’s plane could be shot down.  However, none of the threats materialized.

Yesterday it was obvious the White House was attempting to diffuse the aggressive grievances of Beijing when spokesperson John Kirby, technically the NSC Coordinator for Strategic Communications, made a specific statement:

The world has seen the United States government be very clear that nothing has changed — nothing has changed — about our One China policy, which is of course guided by the Taiwan Relations Act, the Three Joint U.S.-PRC Communiqués, and the Six Assurances.  We have said — and we have repeatedly said — that we oppose any unilateral changes to the status quo from either side.  We have said that we do not support Taiwan independence.  And we have said that we expect cross-Strait differences to be resolved by peaceful means.”

Those six words, “we do not support Taiwan independence,” was a very deliberate and public assurance to China.  Essentially, the United States will not do anything to support the independence of Taiwan, do whatever you want.  Joe Biden took a knee to Chairman Xi.  As a result, Beijing dropped back their tone to traditional rhetoric saying in a statement Tuesday morning, the visit “seriously infringes upon China’s sovereignty and territorial integrity.”

Arriving late last night, Speaker Pelosi released the following statement“Our visit is one of several Congressional delegations to Taiwan – and it in no way contradicts longstanding United States policy, guided by the Taiwan Relations Act of 1979, U.S.-China Joint Communiques and the Six Assurances.  The United States continues to oppose unilateral efforts to change the status quo.”

The Biden administration then sought to overwhelm the media coverage of the Pelosi controversy by promoting the killing of al-Qaeda leader Ayman Al Zawahiri.

…And that’s the way that went.

US National Debt to Surpass 185% of GDP


Armstrong Economics Blog/Sovereign Debt Crisis Re-Posted Aug 2, 2022 by Martin Armstrong

The Congressional Budget Office warned that US federal debt is expected to rise 185% within the next 30 years. Total debt holdings could double the size of US GDP by 2051. No politician or spender of this debt cares as they have no intention of paying it off. The Congressional Budget Office is calling this an optimistic forecast, given the previous estimate of debt soaring to 202% of GDP by 2051. The fact of the matter is that no one can foresee how much money politicians will continue to spend. Servicing the debt will become more expensive over time, expected to reach 10% of GDP by 2051, 7.4% in 2042, and 5.1% in 2032.

Most do not realize that the national debt is already at monumental levels. US gross federal debt to GDP reached 100% by 2012. The ratio remained somewhat stagnant until capitalism became sick with COVID in 2020, and the GDP to debt ratio rose to 128.1%. The figure stood at 137.2% by December of 2021 and has continued to increase.

China no longer wants US debt and has begun to sell off its holdings. As other currencies decline relative to the dollar, US debt, and all government debt in general, no longer seems like a smart investment. We have reached a point where Congress can continue to pass bills and bribe voters with socialistic promises from their latest puppets because no one cares about the future of America. The US will be the last to fold but expect the inevitable as countries, city-states, and governments are all temporary in the eyes of father time.

Pelosi Provokes War with China


Armstrong Economics Blog/War Re-Posted Aug 2, 2022 by Martin Armstrong

Speaker Nancy Pelosi is expected to visit Taiwan during her tour of Asia, despite China’s harsh warnings that doing so could lead to war. Pelosi will be the first US House speaker to visit Taiwan in a quarter of a century, yet she has not fully explained her reason for visiting. The US military and every intelligence agency have urged Pelosi not to go, but Biden said she may do so if she pleases.

The Department of Defense will be forced to escort Pelosi to Taiwan, and China has blatantly said that this would be considered an aggressive act of war. “If US fighter jets escort Pelosi’s plane into Taiwan, it is invasion,” Hu Xijin of Global Times wrote on Twitter. “The [Chinese military] has the right to forcibly dispel Pelosi’s plane and the US fighter jets, including firing warning shots and making tactical movement of obstruction. If ineffective, then shoot them down.”

China has repeatedly warned the US not to interfere with its relationship with Taiwan over the years. It is the main hot-button topic that China has said is off-limits. Pelosi is putting the entire nation in danger by visiting, and her comments are further provoking China.

“It’s important for us to show support for Taiwan,” Pelosi said. “None of us have ever said we’re for independence when it comes to Taiwan. That’s up to Taiwan to decide.” Chinese Foreign Ministry spokesperson Wang Wenbin said that a visit would lead to “forceful measures” by the Chinese. Absolutely nothing positive could come out of this trip.

It’s a Matter of Confidence


Armstrong Economics Blog/Gov’t Incompetence Re-Posted Aug 2, 2022 by Martin Armstrong

COMMENT: Marty; I really do not think people give you enough credit whilst they all pretend to claim they called it correctly just a couple of months ago. I was at your 2011 WEC in Philadelphia. A friend bought the ticket and dragged me there. I have to say, aside from your prediction that war would turn up in 2014 which coincided with Ukraine, the underlying theme was that everything rested upon the confidence in the government. The more I have watched in horror how all our countries have fallen apart so rapidly, the more I understand your research.

My hat is off to you. I wish everyone would stop and acknowledge for once you are the source of fantastic information.

EH

REPLY: Thank you. But as they say, I have to die first before anyone really acknowledges this work. It was the fact that I bought my first Roman coin for $10 when I was about 13 years old, and I was amazed that one could even collect ancient coins. That truly opened a door for research I never knew was possible.

History has been confirmed from the coinage. Imperial Rome pretended that the emperor was still elected as consul every year as if the Republic still existed. Just as we think we live in a democracy but find out the president can issue an executive order that is never submitted to Congress, no less presented to the people for a vote. In that sense, we still live in a dictatorship, just like the Romans. That said, this allows the Roman coins to be dated to every year they were struck.

That established, I realized that the coinage would answer a vital question being a trader – How did Rome fall? Was it like a 747 coming for a landing? Or was it in some sort of panic meltdown? It turned out to be the latter.

I know of NO OTHER WAY that question could have been answered and how VITAL that is to our present-day events.

To everyone’s surprise, other than a trader, bull markets are long drawn out affairs, but bear markets accomplish 90% of the decline in just two to three years. You are witnessing history. The United States is being destroyed rapidly, and unfortunately, even a 100% Republican victory in November will not stop the decline. It will merely present a short-term bounce in confidence. What takes centuries to build vanishes from history faster.