QUESTION: Interest on savings instruments (i.e. CD) for 1 yr terms is non-existent at <= 1.0%. Why would interest rates increase in a digital currency system/world?
IS
ANSWER: The only reason rates would rise is by simultaneously converting the debt to perpetual. They have to end Keynesian Economics. They cannot raise rates as long as they have to buy the debt as in Europe. Therefore, we see most countries preparing for the real BIG BANG which is the default on dent by converting outstanding debt to perpetual, then they no longer need to artificially suppress interest rates they cannot raise if the debt is still issued.
I tend to get called in because they know I will say the truth. I do not take funds from any group and we pride ourselves on independence. It is a club because unless you have been called in by one government you will not get into others. Very interesting criteria. Nevertheless, I believe you will see this simultaneously. A digital currency swap will allow then the perfect excuse to change the debt structure and then they do not have to outright default.
Big Bang began in 2015.75 within about one year of them moving to negative interest rates in 2014. The next crack is due 2021 and the big break post-2024. We are now entering the next phase and we are running out of time. That is what these lockdowns are really about. They know civil unrest will rise when the public realizes that the old financial systems are collapsing.Categories:Bonds
October 13, 2020 was “a black day for human rights,” said Hillel Neuer, executive director of UN Watch, the Geneva-based non-governmental human rights organization. Mr. Neuer was lamenting the fact that the United Nations General Assembly was preparing to vote to elect some of the world’s worst serial human rights abusing regimes to membership on the UN Human Rights Council. The regimes elected included China, Russia and Cuba. A Joint NGO Report issued by UN Watch, Human Rights Foundation and the Raoul Wallenberg Centre for Human Rights on October 5, 2020 branded these regimes “unqualified.” The Joint NGO Report reached its conclusion based on the criteria that the UN General Assembly itself set, which required that “members elected to the Council shall uphold the highest standards in the promotion and protection of human rights.”
The Chinese Communist regime is a wellspring of gross human rights abuses
The UN General Assembly’s vote to grant China membership in the Human Rights Council illustrates how the United Nations has made a complete mockery of the human rights protections it professes to uphold. The Chinese Communist regime is a wellspring of gross human rights abuses. The regime routinely crushes dissent, extending its authoritarian methods to Hong Kong. It tortures and arbitrary imprisons its citizens who do not toe the official party line. The regime is a surveillance state that negates any individual privacy rights, and it censors the press and online social media. Journalists who dare to stray into politically sensitive areas that the regime considers forbidden territory are regularly forced out of their jobs or jailed. The regime also engages in persecution of people of faith, including Christians, Buddhists and Muslims.
In these respects, the Chinese regime is in sync with the human rights abuses of other authoritarian regimes. However, what places China in a class by itself today when it comes to human rights abuses are the internment camps the regime has established to arbitrarily detain more than one million Uighurs and other Muslims. The Joint NGO Report referenced the horrific conditions to which these detainees have been subjected, including political indoctrination, systematic torture, and the forced sterilization and abortions of female prisoners. The Uighurs and other Muslims who are not presently detained still live under repressive conditions. They are subjected to constant surveillance, the suppression of the use of their own language, and the banning of their cultural and religious practices.
Here is how the U.S. State Department described this unique example of ethnic cleansing in the 21st century, which the Chinese regime has justified to “contain and eradicate extremism”:
“The broad definition of extremism resulted in the reported detention since 2017 of more than one million Uighurs, ethnic Kazakhs, Kyrgyz, and other Muslims in ‘transformation through education’ centers, or detention centers, designed to instill patriotism and erase their religious and ethnic identities. This included many of those ordered to return to China from studying or working abroad. International media reported security officials in the centers abused, tortured, and killed some detainees.”
“Outside the internment camps, the government implemented severe restrictions on expressions of minorities’ culture, language, and religious identity, including regulations prohibiting behaviors the government considered signs of ‘extremism’ such as growing ‘abnormal’ beards, wearing of veils in public places, and suddenly stopping smoking and drinking alcohol, among other behaviors. The regulations banned the use of some Islamic names when naming children and set punishments for the teaching of religion to children. Authorities conducted ‘household surveys’ and ‘home stays’ in which officials or volunteers forcibly lived in Uighurs’ homes and monitored families for signs of ‘extremism.’”
“Authorities searched cell phones at checkpoints and during random inspections of Uighur households, and persons in possession of alleged terrorist material, including pictures of general religious or cultural importance, could be arrested and charged with crimes.”
The Chinese regime is also unique in another respect from a human rights perspective, which is particularly relevant during this year of the coronavirus pandemic. The Chinese Communist regime deliberately withheld key information about the coronavirus, which originated in China, when it first became aware that the virus was highly contagious through human-to-human transmission. Chinese authorities cracked down on whistle blowers such as Dr Li Wenliang who wanted to warn the public about the emerging coronavirus threat before it could spread completely out of control. Authorities censored any negative stories in the media or on the Internet about how the Chinese government was handling the coronavirus outbreak. The World Health Organization accepted at face value the inaccurate information it received from China during the early weeks of the outbreak, when the virus’s spread could have been much more easily contained.
The Chinese Communist regime was in a position to come clean about the virulent virus that was first detected in Wuhan, China in late 2019, before the virus escaped China’s borders and set off a global pandemic. Chinese authorities decided not to do so. Instead, the Chinese regime put its own image first, willing to sacrifice the basic human right to life and well-being of people all over the world. Over a million people have since died from the coronavirus to date. Many of these peoples’ lives might well have been saved if Chinese authorities had been more forthright at the outset. The regime’s abysmal behavior in this regard falls far short of the supposed standard for membership on the UN Human Rights Council – to “uphold the highest standards in the promotion and protection of human rights.” Yet China was rewarded with a seat on the Human Rights Council anyway – a perfect example of the hypocrisy rampant at the United Nations
QUESTION: Marty, you mentioned several times now, that the ECB MUST convert to a digital Euro. I have done speeches about that based on a paper from the IMF (Christine Lagarde) last year, in which they too discuss how to do it. But I have a serious question regarding timing.
I live in Germany and I would say that WE (the country) are not ready for such a move yet. Let alone many people. I have people in my family who still don’t have smartphones (just plain mobile).
I am completely with you that this move is coming (I am also part of a crypto community but as a critical member (I am the party spoiler there)).
But how can they move to a digital Euro to prevent bank runs, when I can’t see the infrastructure in place to do so.
Especially in such a short amount of time rg. the date you mentioned. They can eliminate cash withdrawals, yes, but paying with my smartphone reguires technology .. ?
Thanks a lot,
A
ANSWER: We are talking about bureaucrats. They only think in concepts much like Klaus Schwab’s Great Reset. The practical application of what they are doing is not there. They lack even the infrastructure, as in California, to force all cars to be electric. They do not have the power grid to support that.
I was in meetings where they actually told me with a straight face that they had to take trading the Euro away from Britain. I asked if they were going to take it away from the USA, Japan, Hong Kong, Singapore, etc? They looked at me puzzled, and said no! Just Britain. I asked if they really wanted to control the Euro just convert it into the old Soviet Union ruble. No free market at all.
Then there was all the rage that in London the big banks all threatened that they would move their trading to Frankfurt if BREXIT took place. But again, neither Frankfurt nor Paris has the telecommunication capacity of London. They could not possibly set up shop in Europe. There is no infrastructure to match London.
The problem that is the hidden crisis is that they have DESTROYED their own bond market. The ECB cannot even allow its balance sheet to shrink as debt matures. The Federal Reserve was not rolling over the debt they bought back in the 2007-2009 crisis. As it matured, they cashed it in.
The ECB is trapped. It cannot shrink its balance sheet for there is no market for the debt. They have finally agreed to fund this Coronavirus destruction they organized by creating combined Euro Debt for the first time. That is because nation-states cannot raise the capital.
They lack the infrastructure on every front. That does not mean they will not try. They have run out of opinions. They are desperately trying to revive their debt market, but they have wiped it out with negative interest rates since 2014.
This is what I keep warning about. INFLATION has nothing to do with the money supply any longer. Those are an old idea from the time of Gresham’s Law in advising Queen Elizabeth not to debase the currency as her father did.
We must understand that the exchange value between the various currencies back then was the metal content. Therefore, inflation was a factor of the exchange rate rather than the money supply. The more the coinage was debased, the more people hoarded the old currency. Hence, Gresham’s Law became that bad money drives out good. As this process takes place, the money supply DECLINES because of hoarding. This forces the state to debase even more to create money to pay its expenses. Roosevelt confiscated gold in 1934 for the same reason – people were hoarding gold. The German hyperinflation was the result of the 1918 Communist Revolution which scared people and they converted their money to foreign currencies and hoarded precious metals. The greater the hoarding, the more the money supply shrank, which in turn forced the government to print more.
We find hoards of Roman coins during the 3rd century in particular after Valerian I (253-260AD) was captured by the Persians. That broke the confidence of the Roman people and other barbarian tribes in the north saw the weakness and began to invade.
The coinage collapsed in metal content in just 8,6 years. We find hoards of even the debased coinage because people lost confidence in the government. We see the very same patterns in human behavior over and over again.
This is a hoard of Arab gold dinars. We see always the same pattern of hoarding when there is a decline in the confidence of the government in power at that time.
The ECB can cut rates to try to stimulate and that failed. People are hoarding cash in Europe and that creates deflation. There is NO AMOUNT of money that can be created to offset the DEFLATION when people lack any confidence in the future. Then they are imposing this “New Norm” of lockdowns and destroying jobs and they actually expect to sell debt and keep interest rates at negative and somehow this will stimulate the economy they have worked so hard at destroying? The increase in the money supply of all these central banks is still less than 20% of the economic contraction globally.
QUESTION: Hi, Mr. Armstrong I noticed that the national news agency in my country had an article about a local digital currency in Maricá, Brazil. It is called Mumbuca. What I read about Mumbuca sounds good and all that, but I am curious if the news is just conditioning people to a new age of digital currency. Do you have any comments about Mumbuca? Thank you for your time and what you stand for. Best Regards AA
ANSWER: It is important to highlight that Mumbuca is a local digital currency whose name is a reference to the main river and to one of the native peoples of the city. A unit of Mumbuca is equivalent to R$ 1.00 (US$ 0.19). What is interesting is that this is a local city currency much like the Depression Scrip of the 1930s. This is really an experiment of guaranteed basic income. Increasingly, customers in the city don’t pay with cash but with this digital currency. They receive it as part of the town’s basic income program. They pay with a quick scan of a QR code, using their phones. So far, just over 42,000 inhabitants can pay local merchants with Mumbuca.
This is Brazil’s first big experiment with digital currency. Those without smartphones can pay using a card, which has a scannable barcode. They are way ahead of the game and, actually, it is being followed closely internationally.
This year’s World Economic Conference, which Nigel Farage called “the alternative to Davos,” will be held in Orlando on December 4 & 5. We had to cancel Shanghai and Frankfurt this year, but our arrangements with the hotel here in Orlando and politics have opened doors. We will not be able to accommodate the usual 1,000 attendees. This will be a limited in-person session, but it will be more intimate.
Since so many people from overseas may not be able to fly in this year, we have made arrangements to have a virtual conference option for everyone to participate globally. We still have to limit that to a max of 20,000 attendees simply as a matter of technology (sorry, we cannot handle more than that).
From the outset, I have explained that not only did Socrates begin to pick up what has turned into this COVID scam in August 2019, but our HIGHLY RELIABLE inside sources were also already warning that strategic players were selling as early as December of last year, and telling people a “virus was coming.” There are clear warnings within the global economy that we are facing serious upticks in civil unrest in Europe. However, we now have ANTIFA overturning statues of even Abraham Lincoln. Obviously, this has migrated from toppling statues of racists to just pulling down statues of any president which is anarchy.
(Click on Image to see World Markets)
The WEC has been the only truly international conference held since 1985. To see the future of any country requires us to look at the world. As you can see, not every market has been making new highs. Capital flows are ABSOLUTELY critical. We have the ONLY such model gathering the global information of ebbs and flows from all countries and Socrates is writing reports on over 1,000 instruments around the world. This is not about my personal opinion or gut feelings. We have to look at the world objectively and call the shots as the data requires.
o truly see the future this cannot be done on a gut feeling. Nobody is going to be consistent on this one. Our only shot is to see this through the lens of Socrates. What will be critical here is looking at this from a global perspective. Those attending in-person will receive their mug and their autographed copy of “The Cycle of War and the Coronavirus.” Virtual attendees will receive all the digital copies of reports being provided and videos. We have countless separatist movements brewing in Europe, Canada, the USA, and even Australia.
This is going to be obviously an important WEC. We have so much from rising civil unrest, international tensions, governments trying to lock people down, and they are already proposing this as the “new norm,” for lockdowns may be necessary to stop climate change, which has been the real agenda from the start. They think we are stupid. Granted, there are a lot of fools out there who just follow whatever they are told. We have billionaires trying to change the system to socialism to prevent people from ever making what they did to cut off any competition.
Even Schwab’s movie launched in 2019 was skewed to climate change as he was preparing this agenda for the Great Reset. This has been a grand plan.
We are fighting against the fools who think this is just something like a ship that will pass in the middle of the night. The global markets are revealing the trend. It is time for us to listen to the whole and not just one market.
QUESTION: I thought big police forces are malinvestment just like big government. doesn’t returning to hard money reduce malinvestments?
BF
ANSWER: These people can no longer fund themselves by borrowing. I have been advising in Europe that the Euro could never become a major reserve currency without a single debt. They are now looking at that option and the European Commission is expected to sell consolidated debt into the bond market this month for the first time on a large scale to fund its coronavirus-relief programs. Meanwhile, the European Central Bank on Friday took a step closer to issuing a digital version of the euro. Even Goldman Sachs admits that Biden’s tax plan will hurt the economy. We already have the IRS being investigated for using your location data to tack you for possible hidden assets. Do you really think these people would EVER return to hard money that they cannot spend whatever they want? Socialism would have to end under hard money. This is not a rational expectation from people embracing MMT because they are running out of other people’s money to spend.
We have run out of other people’s money. They are hunting money like a starving animal. They see Modern Monetary Theory as the answer – create money at will under the new theory that there will never be inflation.
Armstrong Economics Blog/Civil Unrest Posted Oct 4, 2020 by Martin Armstrong
Historically, this is why the police are the first to be killed in a revolution. They support tyranny and when they do, the choose the side against the people. Here they are arresting people in Piccadilly Circus for protesting the arrest of Assange on behalf of the United States. Freedom of speech has been around since Magna Carta. They should realize that this is against human rights as well as the English Bill of Rights from 1689.
QUESTION: What do you have to say about Trump’s taxes?
GS
ANSWER: Let me explain something. Let’s take one of the richest men in the world — Bill Gates. He achieved that station by co-founding and then leading Microsoft. Most of his wealth came not from his salary, but from the Microsoft stock that he owns, which was equal to about 10% of the company’s outstanding shares. Wealth gained from stock price appreciation is NOT taxable until you sell the shares. By holding most of his shares since the company’s founding, Mr. Gates DELAYED paying any tax on those capital gains. Then by donating the shares to the Bill and Melinda Gates Foundation, that wealth was NEVER taxed!
Why do you think all these people create foundations from the Clintons, Gates, to John McCain. You get to play with the money tax-free while you are espousing economic equality. There should be NO income taxes. It should be a consumption tax (retail sales tax). Donating money to a foundation that you control should be illegal, but its not.
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 dothprotest 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.
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This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
October 13, 2020 was “a black day for human rights,” said Hillel Neuer, executive director of UN Watch, the Geneva-based non-governmental human rights organization. Mr. Neuer was lamenting the fact that the United Nations General Assembly was preparing to vote to elect some of the world’s worst serial human rights abusing regimes to membership on the UN Human Rights Council. The regimes elected included China, Russia and Cuba. A Joint NGO Report issued by UN Watch, Human Rights Foundation and the Raoul Wallenberg Centre for Human Rights on October 5, 2020 branded these regimes “unqualified.” The Joint NGO Report reached its conclusion based on the criteria that the UN General Assembly itself set, which required that “members elected to the Council shall uphold the highest standards in the promotion and protection of human rights.”
Centinel2012 