Tag Archives: GREXIT

Dec 17 2019

Central Banks Buying More Equities than Gold? Why?


Armstrong Economics Blog/Gold

Re-Posted Dec 17, 2019 by Martin Armstrong

QUESTION: Marty; It seems when Goldman Sachs makes a recommendation, it tends to be the kiss of death. They came out and said the stock market was going to crash at the end of 2017 just before it broke out. Now they are pitching gold but they have been the ones who controlled the warehouses. They are claiming the central banks are the buyers so that is an indication of a bull market. Any comments on Goldman’s analysis?

HC

ANSWER: Yes, it often seems to be the old trick that was played by the Salomon Brothers. Their analysts would be quoted widely touting to buy some bond and they were inevitably the sellers. Goldman said cash was king in November 2018, not stocks. Five of the top investors in 2018 all said the stock market would crash as reported in Money Magazine. Goldman was bearish if Trump won, as reported by the New York Times on October 31, 2016. Even Goldman Sachs told everyone to sell in 2019. This is the problem when you put out forecasts based upon fundamentals. They are just sophistry, for you can spin them any way you like. How many times have we heard a stock declines on positive news and the excuse is that the street was looking for better numbers.

Goldman Sachs’ new claim saying “gold’s strategic case still strong” pointing to central bank buying is highly questionable. It is a statement that seems to be a half-truth. Because the euro is paying a negative interest rate, the only way for central banks to diversify has been to buy gold and equities. Otherwise, all they have are dollars. There are people on the board at the European Central Bank proposing that they too begin to buy equities in Europe.

The amount of gold added to central bank portfolios was tiny in comparison to equities. They bought more than $1 trillion of equities in 2018. The central banks bought only about $57 billion of gold in the past 3 years. This story is very misleading. It makes it sound like gold is being bought because the banks know the dollar will crash. The truth is so far from the implications.

If you are going to pretend to make a forecast based upon fundamentals, then tell the FULL story and do not leave out the other parts

Dec 14 2019

Antifa Leftists Riot in London Following Massive Election Loss…


Re-Posted from The Conservative Tree House on December 13, 2019 by 

Following a major election victory for conservatives in the U.K. the Antifa-left start rioting in the streets again.  Proving once more that socialists do not accept election outcomes.

The vitriolic response from the British socialists resembles an almost identical response following the 2016 election victory of President Trump.  Same groups, same political ideology, same behavior, same violence, rage and expressed anger.

The inability of the progressive left to accept the outcome of an election is identical in both the U.K and the U.S.  Calling Boris Johnson a racist and attempting to delegitimize the election outcome has a ring of familiarity for Americans.

The decades of their united globalist efforts to tear at the very fabric of nationalism is being eliminated. The radical socialists have nothing to lose; the media is sympathetic to their objectives; their desperate need for a collectivist society is visible within their apoplexy.  They are afraid of the individual accountability that comes with freedom, and they’re damn sure displaying it.

Do not look away.

Andy Ngo

✔@MrAndyNgo

Antifa are rioting in London in response to the election results giving Conservatives a huge electoral win. It’s like what I saw in Portland in November 2016.

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Dec 13 2019

The British Election – Socialists Lose Big Time


Armstrong Economics Blog/BRITAIN

Re-Posted Dec 13, 2019 by Martin Armstrong

Conservatives are now in full control of Parliament, and Britain took one major step closer to leaving the European Union. The socialist Jeremy Corbyn said he would not lead the Labour Party in another election. All the hype about socialism and how they have been so vocal has resulted in what our computer has been projecting – not this time. There has been a shift extremely left in many elections including those in the United States. But for all the noise, yelling, and screaming, socialism is dying.

The British election was called because the opponents of BREXIT did everything in their power to obstruct the democratic result of the referendum to leave the EU. They had the audacity to claim the people were too stupid and did not understand what they were voting for because the politicians have continued to want to surrender British sovereignty to Brussels while for some they would lose their pensions.

While the election began as a second referendum on BREXIT when the polls showed that the Conservative Party of Prime Minister Boris Johnson was well ahead of Labour, the Labour Party did what politicians are great at – tried to change the subject. The Labour Party, led by Jeremy Corbyn, turned the election away from BREXIT, which he knew he would lose, and transformed it to the claim that the Conservatives would sell Britain’s National Health Service to Americans. That was really absurd since the U.S. government cannot deal with Obamacare yet they were going to take over Britain’s failing health system?

The significance of this election is demonstrating the rising frustration with governments. As they say, it is better to deal with the devil you know and in that case, it is British Parliament. The British people have no right whatsoever to vote on the policies coming from Brussels. The British government loses every time in any dispute with Brussels. It has been simply a relationship that has never enjoyed mutual respect.

 

Dec 13 2019

Wakey Wakey – Exit Polls Show Landslide Conservative Boris Johnson Win in U.K. Elections – Open Discussion Thread….


Re-Posted from The Conservative Tree House on December 12, 2019 by 

A “landslide”, a complete “wipe-out”, a “massive victory” appears looming for Boris Johnson and the conservative party in the U.K. if exit polls are accurate.

These blowout results guarantee a faster Brexit from the European Union and the leftist labor party in the U.K. has been crushed.  Conservatives look to have picked up 50 seats and Labor has lost 71 seats; the Scottish National Party (SNP) has picked up 20.

The “Remainers” in the U.K. have been decimated, and the voters who want to “Leave” the EU have fueled a massive victory for Boris Johnson.  Liberal heads are blown-out, bigly.

(Via Daily Mail) Boris Johnson hailed his new blue-collar Tory army tonight as it emerged he is on track to secure a staggering landslide in the election battle – with Labour’s ‘red wall’ of Brexit-backing strongholds imploding.

A dramatic exit poll shows voters handing the Tories a massive 368 seats, with Labour languishing on 191 – down 71 on 2017 and the worst performance in modern history.

The bombshell numbers would give a huge Commons majority of 86, the biggest since Margaret Thatcher’s triumph in 1987, and are equivalent to a 10-point lead in the popular vote. (more)

This result also has massive ramifications for a U.S-U.K trade deal; and subsequently major leverage for the U.S. (independently) and a U.S. – U.K. alliance in future trade negotiations against the European Union.

Dec 11 2019

Guyana & the Future


Armstrong Economics Blog/Latin America

Re-Posted Dec 11, 2019 by Martin Armstrong

QUESTION: Hi Martin, thanks for including little Guyana in your blog today. I was born in Canada, but my parents emigrated from Guyana decades ago. I haven’t been back yet. Nevertheless, I am eager to see great things become of the country, have been tracking the oil industry developments there, and am invested in it as well. I want to see this country elevate out of poverty as a result of all of this but I am concerned about lack of strong and moral leadership and corruption. If you don’t mind me asking, what makes you so confident that democracy will rule out? Growth is growth, but all we have to do is look across the pond to Africa to see the mix of growth and corruption!
Thanks as always sir – your teachings and insights have reshaped me many times over.
Regards, D

ANSWER: I am not certain that Guyana will be the perfect democracy. South America has historically had a problem with corruption in government. The US sanctions against Venezuela are really stupid. The economy was turning down dramatically and the government has done everything possible against the people. The US sanctions merely give people an excuse to point to the US as the cause of the economic decline despite the fact that the sanctions were put on in response to the events and not before them. I am opposed to sanctions anyhow because they never seem to work. They boosted the support for Putin instead of causing the people to blame Putin. This is really brain dead.

Nevertheless, simply because you can invest in Guyana is a major difference in comparison to Venezuela. There will be corruption. That seems to be systemic in South/Latin America, but it is also a rising problem globally. Hopefully, they will still keep the free market as long as they get their fair share under the table unlike Venezuela. We have added the currency to Socrates.

Dec 11 2019

Manipulating the World Economy – COMING SOON


Armstrong Economics Blog/Reports and DVDs

Re-Posted Dec 10, 2019 by Martin Armstrong

“Manipulating the World Economy” has been printed and shipped to Amazon. We are hoping to have the links up for Christmas. I have tried to make this an interesting textbook on the world economy and how it functions. Every page of this hardcover book is printed in full color. I have illustrated everything I could get my hands on, including old newspaper articles from contemporary events, so you can read what I read. This illustrates the problems we have with governments and how they have lost control of events going forward.

  

I have tried to cover all the important subjects such as economic theories, Philips’ curve, supply & demand, random walks, defining what is really money, banks and their role in the creation of money, capital flows that overpower domestic policy objectives, taxation, a history of contagions, Modern Monetary Theory, and class warfare – among many more subjects.

These hardbound, full color books will make great Christmas gifts. They will be priced under $100.

(Click on any image above to enlarge)

We will let everyone know the moment they go on sale in Amazon.

Dec 10 2019

Brexit & Generations


Armstrong Economics Blog/BRITAIN

Posted Dec 10, 2019 by Martin Armstrong

QUESTION:

Hi Martin

I live in the UK and I’m thinking

“Is there anyone out there that thinks the same way as I do about Brexit..??? Because no one on TV or in the media look at the Brexit situation like I do…??

However. Every single person I speak to. “Do actually agree with what I say..!!”
Here is my thinking….!!!!

1:- Why did I and many people vote for Brexit???
Answer:- Because we want to be “Free of control” from the EU….!!!
(While it was just a trading agreement it was OK.)
But when it (the EU) took control over our Laws, Jurisdiction, Parliament & or very existence without the ordinary guy in the street having any say about it.
It became something of a dictatorship.

2:- What situation do we find ourselves in now….???
Answer:- we are still under the control of the EU But in addition, we are now under the control of our own Government….!!!!

The ordinary guy in the street still has not got what he asked for…… “To Exit the EU…!!” To my mind “It’s plain and simple….!!”. This type of so-called democracy. “DOES NOT WORK…!!!”. In fact, I don’t think You can call it “Democracy” in the true sense of the word….!!!!

I would like to know what other people feel about not only Brexit. But all other “So-called” Democracies……????.
And with all the riots going on around the world now, are we heading towards a worldwide revolution by the peoples of the world…….??????
Because that’s what it seems like to me.

Kind Regards
JC in Central England

ANSWER: You are correct. The EU has deliberately rejected democracy because the elite believes that one European government will eliminate war. They have tried to create a single government, but have simultaneously refused to have consolidated the debts. Had they done that and Britain had joined, then it would be next to impossible to exit because of the debt.

We are witnessing a worldwide revolution indeed. People are rising up against governments in general because it is obvious that corruption has become standard. Additionally, we have the third generation from World War II, which means their values have completely changed from the 1st generation. This has a host of differences from what they consider to be viable to ethics. This is one reason why the younger generations do not look at silver or gold as the first generation.

Dec 10 2019

The Mother of all Financial Crises


Armstrong Economics Blog/Reports and DVDs

Re-Posted Dec 9, 2019 by Martin Armstrong

COMMENT: Sir,

While taking a break from reading the Repo Report, I came across these words written by Albert Einstein before he passed away

“Not one statesman in a position of responsibility has dared to pursue the only course that holds out any promise of peace…” he wrote. “For a statesman to follow such a course would be tantamount to political suicide. Political passions, once they have been fanned into flame, exact their victims.”

I fear we are going to crash and burn as you have said

Keep up the good work

DK

REPLY: That is a very good quote. It is so true. All the disinformation circulating around about this Repo Crisis one must question can they really be that stupid? This is really the Mother of all Financial Crises which will impact everything it touches. This will make the 2007-2009 financial crisis look like a trial run.There is no politician who will stand up and talk about this crisis nor will they dare to even ask pertinent questions for fear what will be revealed.

This is why this report does not end with this report alone. We will update it next year as everything unfolds. So it is more like a subscription to this catastrophe.

Categories: Reports and DVDs
Dec 9 2019

FREXIT – Is France Hurling toward Exiting the EU?


Armstrong Economics Blog/France

Re-Posted Dec 9, 2019 by Martin Armstrong

France is by no means calming down. There is a major underlying problem in France which is rising to the surface in direct confrontation with the government and Macron’s ambition to lead Europe. Macron’s confrontation with Trump over NATO is a reflection of a historical posture of the French government that has resented both Germany and the United States. Macron had said, “The Atlantic alliance can only be restored in one way, through restoring the unity of Europe.” The twelve founding members set up a headquarters together for the first time in London in 1950.

NATO Headquarters was located at 13, Belgrave Square. The last meeting to be held in London before the move to Paris was on April 1, 1952, which coincided with NATO’s third anniversary.  NATO was forced to move its headquarters from Porte Dauphine in Paris, France (the A building for Alliance) following the French withdrawal from NATO, which then moved to Brussels, Belgium in 1967.

Macron did not advocate that France should pull out of NATO as was the case under  President de Gaulle. Indeed, de Gaulle did withdraw France from NATO’s military structure in 1966, yet it remained an Ally. Macron has been also pushing for a European Army. Clearly, Macron’s agenda has been to federalize Europe and that is clashing with the people. He is NOT a proponent in having the USA a major part of NATO according to reliable sources.

Macron has been pushing economic reforms to curtail the social benefits in France in his effort to federalize Europe. In protest of his planned reforms in the pension system, the unions have organized several general strikes, which are now being joined by the yellow vests. This has resulted in bringing in hundreds of thousands of protesters to the streets. The problem which Macron faces is that France’s economic performance can no longer finance the generous welfare state which is far beyond international standards.

Everything points to a major political crisis brewing i9n France and there is talk that perhaps France should also now move to exit the EU – FREXIT. According to Harris Interactive poll taken 26–28 of November 2019,  Macron has a favorable rating of only 39% and a disproval rating of 61%. His push to federalize Europe may be his undoing. Macron admitted in January 2018 that if the French people were given a right to vote of FREXIT, a simple yes / no response to such a complex question, the French would “probably” have voted for FREXIT.

There is no question that there remains a serious risk that FREXIT can also be on the horizon for the driving force is the collapsing economic structure of socialism. American politicians will one day face the very same crisis. All the promises of benefits are coming to an end

Dec 8 2019

The Opium War