This is a very real cycle and not just for money!


The 86-Year Cycle is All Around Us

Matrix

COMMENT: Marty, you have done a fantastic job in teaching us to look and observe. I noticed your post on the monetary reform of Trajan in 107AD. You mention he demonetized all coinage prior to Nero’s debasement in 64AD. Wow, that was 43 years or half your 86 year monetary crisis cycle. When you look, it is like the movie Matrix. Suddenly you see the code everywhere around you.

Amazing research. I can see why they wanted to silence you.

Thanks so much

JB

Romane Imperial Debasement

REPLY: Excellent. It is all around us if you just let go of the prejudice and see the world as it truly is. Cycles are how energy flows, from sound and light to the cycles in your heart, no less your brain waves. It is stunning how petty people are who try to find fault (typically in relation to gold) just so they can be right. They are so blind that they fail to grasp that this is about understanding our environment, not whether gold peaks one week or the next. They have no interest in comprehending anything. Others are married to political philosophies and are so entrenched they deserve what they get. For the rest of us, the pursuit of knowledge is a journey that never ends. As they say, when there is nothing left to learn, it is time to die.

Rome Collapse 86 Years

Gold and Oil now there is a volatile mix!


Gold/Oil Ratio – Is It Really Making Record Highs?

Gold Oil Ration Mining 1965-2015

QUESTION: Mr. Armstrong, Mining ran a chart of the gold/oil ratio pointing out that conventional wisdom has placed the two together on the theory that rising oil prices push up inflation increasing demand for gold as a hedge. You have stated gold is not a hedge against inflation and you appear to be correct with all the QE from US, ECB, and Japan, yet nothing has happened.

Mining says that the average ratio of gold to oil is around 15 reporting it is at record highs now which have not been seen since 1973. The same thing happened in 1980 when a record gold price in inflation adjusted terms again coincided with a sharp rise in the price of oil. The ratio hit 36 during the 1973 OPEC crisis.

So has gold or oil bottomed? Or have we entered a new era altogether? I know you will have an interesting assessment of this ratio. That’s what you are known for.

Thank you

HW

Gold-Oil Ration - Y

ANSWER: Nice chart. However, it is always a question a DATA! If you looked only at a chart of the stock market from 2011 until 2015, you would conclude the market always moves higher. Long-Term Capital Management collapsed with the best of minds (When Genius Failed) because the modeling did not go back beyond 1971

Here is the gold oil ratio back to 1900 and its beginning. The record high is neither 1980 nor the 1973 OPEC crisis. The record high was 1932 and the Great Depression. This is calculated simply using annual closings. On that basis, we have not reached the Great Depression high. If oil fell to the Reversal at $25, to test the Great Depression high on this ratio gold would still fall to $875. The average is about 23:1 – not 15:1. If gold were really to respond in a financial crisis to a collapse in money stock, then this ratio could hit the 52:1 area. That would be something to write about. We should exceed the 1932 high on this move.

We are looking at both many mining producing companies and oil producing companies going belly-up in this fish tank. These defaults will hurt banks who lent to them. This is just one slice of the pie we have to finish eating before we can leave the table. (DO NOT RUSH INTO MINING STOCKS – IT AIN’T OVER TIL THE FAT LADY SINGS as they say)

There is never enough money to satisfy the greed of the politicians!


What Happens to Cash When Governments Go Electronic?

euro-digital-electric

QUESTION: Mr. Armstrong; What happens to paper money when the government moves electronic? Is it just cancelled? Does cash then become worthless?

Thanks

RD

ANSWER: It appears that electronic currency will arrive first in Europe. The cash will be demonetized so yes, it becomes worthless. However, they will most likely give you a window in time to redeem cash for electronic money. Keep in mind this will produce a windfall for government. They are most likely going to tax anyone who cannot prove why they have the cash.

Trajan Restitution Gold Aureus - r

This is typical. It is also not a modern invention. The Roman Emperor Trajan (98-117AD) saw the treasury being depleted with the cost of his Dacian War. The brilliant idea was to DEMONETIZE all older coinage prior to Nero’s reform 64AD. What they were doing was declaring the old coinage to be invalid for paying taxes. As a result, you had to turn it in under the pretense it was worn. In truth, he reissued coins with 10% less silver content. So he was taking in the old, melting it down, and thereby increased the money supply by 10%. This was the Great Restitution Issue of Trajan. Politics never changes. The same responses can be cataloged into a book – perhaps I will do that in my next life since I already have a lot on my plate for this one.

United We Stand – ‘Merica


The analogy is reasonable but I do not think it applies completely here with Trump. First Scott Brown is not Donald Trump and 6 years have past and more citizens have woken up and the economy has gone nowhere in 7 years and Obama has given us the Muslim problem which also did not exist and lastly its obvious that there are many problems in the government itself. So I think that the support for Trump will not wain and we could actually come out of this mess battered but whole.

FBI Video Release of LaVoy Finicum Shooting – and Why CTH Is Reluctant to Engage…


The razors edge is right and you need to know how to pick your fights — some are not worth fighting and some are — knowing when is the secret!

This maybe the biggest crime the politicians have done to us!


Legal Reform – Learning From the Mistakes of the Past

Kings_Bench_(1808)

Typically, the first thing society addresses which sparks a revolution is the abuse of justice. Shakespeare’s famous quote about the first thing we do is kill all the lawyers is not actually about lawyers. You have to understand the context. Private individuals were not allowed to have lawyers in those days – only the king. It was not until the American Revolution that the Constitution gave you a right to counsel, which the Supreme Court has effectively taken away giving you court appointed counsel working for the court who have achieved a near perfect conviction rate of 99%. Court appointed lawyers are a joke to put it mildly. They are paid $90 and hour generally compared to $600-$1,000 for private lawyers. Shakespeare’s famous quote comes from a rebellion:

DICK: The first thing we do, let’s kill all the lawyers.

Cade: Nay, that I mean to do.

Henry The Sixth, Part 2 Act 4, scene 2, 71–78

Therefore, Shakespeare’s phase had nothing to do with killing general lawyers, it was the king’s PROSECUTORS who were corrupt. Jake Cade led the second Tax Revolt in England after the Black Death and the king’s “lawyers” (prosecutors) were the ones aggressively seizing homes and prosecuting people wrongly at that time. Hence, history repeats and all the Constitutional precautions have been eliminated by the Supreme Court.

Otis-James

The legal case which became the seminal beginning of the American Revolution was Entick v. Carrington and Three Other King’s Messengers, reported at length in 19 Howell’s State Trials 1029, was the start of the American Revolution also based upon abuse of the king’s agents. The action, dated November 1762, was for trespassing and interfering with the plaintiff’s dwelling by breaking open his desks and boxes and searching and examining his papers.

George III (b 1738; 1760-1820) became king in 1760. In February 1761 Parliament enacted the Writs of Assistance that were challenged in court in Boston, Massachusetts. These were writs that empowered, like the NSA today at their discretion, the kings agents to search anything they suspected. The defending lawyer James Otis (1725-1783) pronounced these writs were “the worst instrument of arbitrary power, the most destructive of English liberty, and the fundamental principles of law, that ever was found in an English law book.” Otis warned that the king placed discretion in the hands of every agent to act as he desired. Nothing has changed for government can do whatever it desires today and it is always the burden of the citizen to still prove he has any rights whatsoever.

Adams-JohnJohn Adams (1735–1826; 2nd President 1797–1801) was there in the audience at that hearing that day. Adams was so moved by the four hour speech of James Otis that he declared: “Then and there was the first scene of the first act of opposition to the arbitrary claims of Great Britain. Then and there, the child independence was born.”

I am sure the kings men also viewed their power as necessary as the NSA does today and Christie says while running for President because he was a former prosecutor. The abuse of the king’s agents was simply that they could enter someone’s home and search all your papers. If you wrote anything derogatory against the king, off you went to prison. This is what inspired the American Revolution and the Fourth Amendment that there had to be a reason to search not just arbitrary desire to want to know and lets see what we can find as the NSA and FBI do today. This is the very essence of LIBERTY. You cannot pretend to be the leader of the free world and then advocate that the government has a RIGHT to know everything everyone is doing or what wealth they have. This is incompatible with the term – “FREEDOM”.

Bastille-DAY

Necker JacquesBy the summer of 1789, France was moving quickly toward revolution. There were severe food shortages in France that year, and popular resentment against the rule of King Louis XVI was turning to fury. Jacques Necker, the finance minister of Swiss birth, who was sympathetic to the people, was dismissed on July 11th. The people of Paris responded and then stormed the Bastille, assuming that they and their representatives would be attacked by the royal army or by foreign regiments of mercenaries in the king’s service. The people stormed the Bastille seeking to gain ammunition and gunpowder for the general populace and to release political prisoners. The Bastille was a fortress-prison in Paris which had typically used to imprison people on the basis of lettres de cachet (literally “signet letters”), which were arbitrary royal indictments that could not be appealed precisely the same type of instruments used to imprison myself of “contempt of court”. These lettres de cachet did not indicate the reason for the imprisonment. This was precisely the same type of order used to hold me in contempt for 7 years as they stated openly in court that there was “no description” of any accusation. The Bastille held a large cache of ammunition and gunpowder, it was also known for holding political prisoners whose writings had displeased the royal government who were held without any charge.

As July 1789 unfolded, Parisian revolutionaries and mutinous troops storm and took the Bastille, which was the symbol of the tyranny of the Bourbon monarchs. There were seven inmates freed at the time. This profound action signaled the beginning of the French Revolution which erupted because of taxes and AUSTERITY mixed with the collapse of the rule of law. The debt default and hunting the rich (which destroyed the economy) was a revolutionary reaction. When nobody will do business, they hoard cash, and everything implodes deepening the deflationary downward-spiral.

Today, it is rare for a policeman to ever be prosecuted for killing a citizen no matter how outrageous the event. Today, the police are simply above the law and are rarely held accountable if ever. This was precisely the same complaint Thomas Jefferson included in the Declaration of Independence about protecting agents of the government for murder:

For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:

 

Taney Roger_B Chief Justice

Supreme Court Chief Justice Roger Brooke Taney (1777–1864) was the 5th Chief Justice in American History presiding from 1836 until his death in 1864. However, he was previous a prosecutor and the 11th United States Attorney General. He is certainly infamous for writing the majority opinion in Dred Scott v. Sandford (1857), which ruled that African-Americans were considered inferior at the time the Constitution was drafted and were not part of the original community of citizens regardless whether they had been free or slave. Taney held that they could not be considered citizens of the United States.

Taney was a Jacksonian Democrat when he became Chief Justice and has been a slave owner who did free his slaves. However, he was a staunch believer in states’ rights and simultaneously the Union of the states to form the United States of America. His decision in Dred Scott created a real outrage among abolitionists and the free states of the north and no doubt laid the foundation for the Civil War. He believed that power and liberty were extremely important and if power became too concentrated as in the Bank of the United States as did Jackson, then it posed a grave threat to individual liberty. The source of his decision lies politically, rather than as a racist, in this position of state rights opposing any attempt by the national government to regulate or control matters would restrict the rights of individuals in the states. It is unlikely, given Taney’s own personal freeing of his slaves, that his decision was based upon a personal belief. Instead, it was politically motivated for he was also trying to prevent a war knowing that if he ruled in favor of Dred Scott, the south would clearly separate for he would violate state rights.

2015.75 What Lies Ahead

This decision illustrates the great problem we have with judges. On the other side of collapse in government, which will come, our primary goal will be how to rebuild from the ashes. Beginning in 1776, once the revolution began, the newly independent states dismantled the colonial court systems which were under the control of royal governors established by the King.

During the middle ages, the king and his Curia Regis held judicial power. Judicial independence began only to emerge during the early modern period. It was not until the 15th century when the king’s role in this feature of government declined moderately. Kings could still influence courts and dismiss judges and this was a power that the Stuart dynasty in Britain exercised quite frequently in order to overpower the Parliament of England. It was after the overthrow of Charles I with the Glorious Revolution of 1688, that some began to advocate guarding against royal manipulation of the judiciary. They demanded that King William III approve the Act of Settlement 1701, which established tenure for judges unless Parliament removed them, which he conceded.

It had been the shocking events of the 1290s orchestrated by England’s Edward I and France’s Philip IV, which illustrated the arbitrary power of the state produced by the philosophy of the “Divine Right of Kings” that set the political tone and still plagues us to this day. The US Supreme Court of the United States still upholds this Medieval doctrine illustrating that the those in power still regard themselves as ABOVE the law which is applied to the rest of us as the great unwashed. Today it has simply been renamed “Sovereign Immunity” where citizens cannot sue the government without their permission. Judges and prosecutors have ABSOLUTE IMMUNITY and can and do KNOWINGLY prosecute the wrong people for personal or political gain. This is the essence of tyranny. This applied to the President (Nixon v. Fitzgerald, 457 U.S. 731 (1982). If the government threatens someone to commit even purgery against another, the Supreme Court has held that all witnesses for the government also have absolute immunity (BRISCOE ET AL. v. LAHUE ET AL., 460 U.S. 325 (1983). This doctrine of Absolute Immunity was created by the Supreme Court in 1976 fearing what might happen if a prosecutor would ever be sued for wrongful conduct (Imbler v. Pachtman). This doctrine is entirely created by judges and flies in the face of the American Revolution and has no possible validity to have survive that event.

walker

The same reasoning prevailed in my own case as written by Judge John Walker (Bush’s cousin). He actually wrote: “Thus, we have little difficulty concluding that the district court’s inherent power to order coercive civil confinement is of ancient and traditional origins.   Armstrong’s statutory arguments, however, present the question whether the district court still retains this power. ….  the exercise of the inherent power of lower federal courts can be limited by statute and rule … Nevertheless, the Supreme Court explained, “we do not lightly assume that Congress has intended to depart from established principles such as the scope of a court’s inherent power.” I got into the Supreme Court because Judge Sotomayor, now Supreme Court Justice, was on that panel and disagreed with Walker. Walker had the audacity to rule that there was no limit to the power of a federal judge to imprison anyone for life without a trial. Such people can only see the world through their own desire for absolute power. The decision in my case was no different from the lettres de cachet which sparked the French Revolution of the Writs of Assistance that inspired the American Revolution proving history repeats perpetually. Walker wrote:

Sotomayor JusticeWe believe that Judge Sotomayor advances a similarly mistaken argument in her concurring opinion by arguing that there is no practical difference between one who is “incapable of complying” and one who “simply chooses not to do so.”   According to Judge Sotomayor, in either case, “there is a limit to how long [that person] can be incarcerated.”   We disagree.

John Walker

Judge Walker then drove from the court, I believe drunk, and then killed a policeman directing traffic in the middle of the road. Most news stories have been erased from the internet. It seems they missed at least this on Wikipedia:

On the evening of October 17, 2006, while driving home, Judge Walker’s Ford Escape automobile struck a police officer, Daniel Picagli, who was directing traffic in a rainstorm at a road construction site for AT&T in New Haven, Connecticut.[21][22] There were no construction signs or traffic cones marking off the site.[23] Picagli died four days later on October 21, 2006. “He had been wearing a black raincoat and a reflective vest”.[24] Police Chief Francisco Ortiz said the “officers did not feel it was necessary to test Walker for drugs or alcohol”.[24] Walker stopped immediately, and New Haven police have said the cause was not related to drugs or alcohol.[25] A police investigation reported that Walker “was traveling at a slow speed through the dark and rainy construction site.”[26] The prosecutor declined to press charges, saying nothing indicated “intentional, negligent or reckless conduct” by Walker.

The police conceded they never tested him for being drunk just saying he appeared to be OK. A judge can even kill a policeman since he is higher on the political food chain.

Florence-Revolt-1343

With the bankers controlling the New York Federal Court so there will never be a criminal prosecution of anyone, only those who oppose them, is not even a modern development. The Revolt of 1343 in Florence was a political backlash to the attempt of the merchant-bankers to control government through the same process of owning judges. The control of the courts and the appointment of judges promised injustice and no doubt perhaps further manipulation of the law regarding bankruptcies exactly as the bankers succeeded in getting the Clintons to exclude students from bankruptcy today. Thus, the revolt is often painted as simply a class uprising due to the failure to obtain political reform. History repeats. It is amazing how the very same plot always emerges, just the names change. To this extent, it is scary.

During his trips to Scotland in 1759 and 1771, Benjamin Franklin became acquainted with most of the major figures of the Scottish Enlightenment, and he forged a personal friendship with Lord Kames. Franklin was a delegate to the Federal Convention and he brought Historical Law-Tracts and Principles of Equity with him when he returned to America in 1762. In a letter to Kames, Franklin wrote:

I am now reading with great pleasure and improvement your excellent work, The Principles of Equity. It will be of the greatest advantage to the judges in our colonies, not only in those which have Courts of Chancery, but also in those which, having no such courts, are obliged to mix equity with the common law. It will be of more service to the colony judges, as few of them have been bred to the law. I have sent a book to a particular friend, one of the Judges of the Supreme Court in Pennsylvania.

Unfortunately, American courts did accept Equity and Law, but they vested BOTH (Chancery & Law) in a single judge who was then appointed by politicians. The Equity has allowed judges to ignore the law and visit upon the country Judicial Tyranny. There is no law passed by the people awarding ABSOLUTE IMMUNITY, nor did the people ever consent to WORLDWIDE TAXATION of American citizens. These two tyrannical decisions are entirely judicially created and are thus UNDEMOCRATIC suppression of human rights.

Franklin had also proposed that judges should be nominated by lawyers, and not by government. That was simply not accepted. Understanding the error of our ways is essential, for when we fall off the cliff and try to pick ourselves up, we should learn from the mistakes of the past.

This will be interesting as the banks are only doing what their governments want!


Central Banks & Corporations to Sue Major Banks Over the Currency Manipulations

Deutsche_Bank_Frankfurt

An American law firm is planning a class action suit in Europe against the major banks involved in the currency manipulations. These banks have already paid billions in fines; now comes the lawsuits. If they stay out of New York City, they might get a real court to go after the bankers. The lawyers have said that they have corporations and central banks of countries lining up as clients as well.

The Dow is still in a danger zone!


Dow & The Immediate View

DJIND-D 1-27-2016

 

The Dow needs a closing above 16350 to stabilize for now temporarily. Otherwise, we are not out of the woods here until we pass March. To suggest that the major low has been made, the Dow would need to climb over 17750 level on a weekly closing basis. Keep in mind we are in a string of Directional Changes for the next 3 weeks. So expect this to remain vulnerable and choppy. The maximum on the downside if we elect a monthly bearish is to 12900 to 13000 zone. There, a closing below 16013 will be at least a warning of weakness for month-end.

Has oil really hit the bottom yet?


Crude – Is it Over? Or Just Another Fake-Out?

CRUDE-W 1-26-2016

Crude has made a slight bounce, but it need desperately to close above $32.35 today just to pause. There is no change of a real reversal in trend here. Crude would need to closing above the $38.35 area just to hint that the low might be in place. Our timing targets are still pointing to this week/New Week. If this turns out to be a reaction high, then a rout to the downside may yet be in the cards. We have a Monthly Bearish coming into play at $36.65, $35.13, $33.30 and a key one at $30.10 followed by $28.25. So we would have to close above $36.65 to avoid a sell signal.

Patriots United – Donald Trump’s Iowa Rally For American Veterans – 9:00pm Live Streams and Links…


Watch Trump tonight as a disabled Vet and former military officer I will support Trump to the very end!

In support of our obligations as free citizens of the United States of America to maintain our founding document the Constitution of the United States and all that it stands for, and with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.