Behind the Curtain, there seems to be no government going completely nuts more so than Australia. They are doubling taxes on all foreigners who own property, which is a violation of international law, and then they made it a crime for a foreign to even buy a house undisclosed. On top of all of this insanity, that they are planning to strip consumers of their legal protections if they pay in cash and fail to get a receipt. If an Australian pays for anything in cash, they suspect he is hiding money.

This outrageous proposal is clearly exposing the Australian government as a leftist goose-stepping authoritarian regime going complete insane hunting Australians for taxes. They are even following children to school and then check the school as to how they are being paid. This is real Hitler stuff. That is why the Swiss created number accounts because he made it illegal for a German to have any account outside of Germany.

This anti-free society the Australian government is establishing is just off the charts. They set up a Black Economy Taskforce to hunt down their own citizens. This is becoming very dangerous. Can you imagine a government staking your children? This gestapo agency is indeed spying on its own citizens in every aspect just as did the NAZI government in Germany. They have put forth 35 recommendations contained in the interim report where they are arguing the need for “consumer-focused action” to crack down on cash payments.

The Black Economy Taskforce has turned its attention from the businesses to  consumers they now say are “part of the problem” adding that “[w]e intend to examine the merits of consumer focused sanctions, including the loss of consumer protections, warranties and legal rights for people who make cash payments without obtaining a valid receipt,” They are out to change the entire culture of Australia because the government refuses to see itself as the spendthrift causing the entire problem. They wrote: “This is not simply of matter of imposing new penalties, but part of a wider cultural change agenda.”

They are looking to impose penalties if a consumer pays cash and FAILS to get a receipt so they can end the underground economy. They are expecting to change the culture by forcing consumers to ask for a fiscal receipts when paying cash for anything.

Obviously, Australia is hunting its own people as if this were a fox hunt. Those who are looking to adopt children should consider adopting from Australia to save them from a government that is going down the path of a totalitarian regime

QUESTION: Mr. Armstrong; I attended the Paris conference of the BIS when you were the keynote speaker. You delivered a forecast that was probably too far ahead for its time. You said the euro would go through and it would first drop but then peak with deflation in 2008 after the markets crash from 2007. You elaborated saying currency rises during a crash when people run to cash. You also said the euro would then decline for 13 years into 2021 before a new system will emerge.

That stuck in my mind and I watched it fall then rally into 2008 and the crash of 2007 you forecast some 10 years in advance. My question is simply this. You said, if I remember correctly, that the dollar would soar thereafter and we would see another monetary crisis as we did in 1985. Is this your Monetary Crisis Cycle you will reveal in Orlando?

I, and a few others from that conference, have bought tickets. I hope to shake your hand this time for a job well done for they would not have tried to stop you forecasting if you were like everyone else who are usually wrong.

All the best

HJW

ANSWER: Oh yes. I remember that event. I sat at the head table with all the central banks of Europe and the French host was upset how the table began speaking English because it was the one language everyone knew. He was so pleased when I ordered my meal in French.

To answer your question, the Monetary Crisis Cycle has two phases. There is a short series and a long series. These are frequencies that result in major upheavals in the world monetary system but each results in a slightly different outcome and we are converging between the two. They have brought governments to their knees. This is the culmination of fiscal mismanagement since World War II as we prepare and go through the pains of labor before a new system emerges.

All of these things are connected. This is the most hated bull market in history. April 2017 was 97 months from the start which was the length of the bull market into 1929. After 97 months, the majority were bearish not bullish. Only now are retail investors starting to come back. I have warned that threshold was 23,000 on the Dow. We can see that happening right now.

Our forecast back in 1985 that the 2016 election in the States would be the first time a third party could rise was on point. Trump effectively pulled off a coup and took over the Republican Party. The elites didn’t get it and said all these people voting Republican for Trump were not “real” Republicans. They are too corrupt to see that they are indeed the problem and it is not Trump as a personality that won, it was part of the birthing process that we are in before a new system emerges. The old elites will be dead soon and a new age is dawning. Yet they will not go quietly into that light – they will rage against the coming of the light as they say. I have warned that the start of the Private Wave in 1985 meant that confidence would shift away from government and this would be one day seen as the Crisis in Democracy wave.

The US sanction voted on by Congress against Russia are outrageous and an act of War that history will write as this may have been the line in the sand crossed by the USA to punish Russia for Hillary’s loss. Clearly, the new sanctions have important implications for Europe because they target any company that contributes to the development, maintenance or modernization of Russia’s energy export pipelines. This sanction reeks of politics that is really a trade war disguised as national security and pride. We have to dig deeper to see who is getting paid by the American energy industry now and for the next election.

These sanction would surely affect a controversial pipeline project between Russia and Germany known as Nord Stream 2, which is owned by Gazprom but includes financial stakes from European companies. The project aims to carry Russian natural gas under the Baltic Sea, bypassing countries like Ukraine, Poland and the Baltic States. When US President Donald Trump visited Poland in July 2017, he said that the US would increase its liquefied petroleum gas supplies (LNG) to Europe, which was very enthusiastically supported by the Poles. This was obviously a statement that was a direct competition with Gazprom that would distort competition for the European energy market.

The entire Middle East Crisis is all about gas. It began with demanding to run a pipeline through Syria to compete with Russia in Europe. This has been the underlying nonsense from the start. Crimea was historically Russian territory and the Eastern Ukraine was settled by Russian who even speak Russian in the East. If Japan tried to kick the USA out of Okinawa, the USA would send troops. This is all about gas – let us not kid ourselves.

There are competing US and Russian gas suppliers in Europe. At first sight, Gazprom has an advantage: Russia has large gas reserves, low production costs and a developed energy infrastructure that supplies gas to Europe. The US producers, on the other hand, have to freeze the LNG gas, load it on ships and then ship it. LNG gas is more expensive than Russian gas and this is where the sanctions may be inspired.

This trade war disguised as sanctions will have a continued effect of fueling not merely Europe, but deflation. Russia must adapt itself to making decisions because of more competitors in the European. Russia must adjust to a price competition while defending the market position. The second alternative is that Russia is throttling its gas production in order to drive prices up. Yet that will open the door to American competition. So welcome to the trade war disguised as sanctions for helping Trump with something our computer projected would happen back in 1985.

The Finance Minister of Canada, Bill Morneau, has announced that the government is now targeting private corporations and fundamentally changing the way businesses are taxed. The Canadian government is focusing in on income sprinkling, earning passive investment income in a corporation, and converting a corporation’s ordinary income into tax-preferred capital gains. Effectively, the Canadian government is looking at itself first with no consideration whatsoever for the people or the economy. It is always about them just surviving. As for democratic processes, they rely upon tell the ignorant that they will get a free lunch if they tear those who create jobs into pieces.

In Canada, the “income sprinkling” is where small business owners “sprinkle” dividends and capital gains among adult relatives. In other words, you cannot give your children any money whatsoever unless they work. So under socialism, you are not allowed to be charitable with your own family. This is what the new hunt for taxes in Canada is all about. Take this with the other two proposals for tax increases and the combination will send taxation on small business to potentially as high as 93%. Government never really cares about the impact of their proposals. It is always just about them. The question we will be confronted with which we will examine at the Orlando World Economic Conference November 3rd & 4th, 2017, just how far can society be pushed in various regions until we hit the reset button?

Having watched the VIX break the psychological 10 level once again today, it looks comfortable in single digits having digested Fridays NFP’s report. YTD, it remains down around 25% but with volumes so low, we must ask the question – does this indicator still warrant such attention! As traded volumes decrease and market participants walk to the side, we watch a rally that still no-one has especially as we hit record high after record high. This has been the most hated bull market in history and still investors watch the DOW setting records daily.

One of the main reasons the fear cage is at such levels is precisely because people have missed this rally! If you don’t own it – why hedge? The velocity of money is also telling us that we are in a period of deflation and with the misunderstanding of QE only just distorting the picture. Yes, there are scary stories of geopolitical concerns but when the asset bubble is in the bond market, why fear the stock market.

So is the VIX the calm before the storm? We certainly need a good scare to get people convinced they were right all the time and its really a bear market that keeps going higher – you can’t fool them!

QUESTION: Marty; back in the 1980s you would show your proprietary index on the overvaluation of the broad share market filtered in currency and capital flows. You have mentioned it is by no means an overbought market. Can you post an update of that index? You haven’t shown it recently that recall.

I know you said this was your best revenge. They either try to steal your work or ignore you.

Nevertheless, hang in there.

Thank you really for all you do.

See you in Orlando

BP

ANSWER: Yes, here is the index on a monthly basis up to the close of July 2017. We are by no means overbought and we are a VERY VERY VERY VERY long way away still – no matter how nuts that seems to many. We are well below the 1929 highs still.

The historical low in this index took place in August 1981, one month prior to the low in the bonds and the shift from Public to Private investment following the 1929 high. It retested that low in August 1985, one month before the Plaza Accord and the Plateau move we were forecasting back then for the breakout in the US share market.

This index has been correlated to major shifts incredibly often one month leading events. It may be our best index ever created. It has been back tested starting in 1790. It is something I most certainly look at to see where we are historically. So while everyone has been screaming CRASH, this index has stood its ground just saying – sorry boys – just no way.

The historical high took place in December 1928 and then the retest came in August 1929 and failed one month before the major high.

This complex Index is being added to the Global Market Watch for it is time to begin paying attention to this on a daily level.

This year’s WEC (World Economic Conference) is time to address the beginning of the most important event perhaps in our lifetime that stands on the event horizon to begin in 2018. We have nearly reached our second target on the Dow Jones Industrial Index – 23,000. They laughed at our forecast back in 2011 that the Dow would make new highs.  As many people have noticed, if the mainstream media believed our forecast would be true back then, they would have naturally did a follow-up asking why we were right. Since 99% of the world was bearish, they thought our forecast was a joke and impossible.

Nevertheless, that is a very GOOD thing. I grant very few interviews because clients generally do not want to see our forecasts all over the front pages of mainstream media. That will never happen because they have their stable of people they promote and they are looking for people who like to call themselves a guru or prophet. If you have to call yourself that, it proves you are just selling hype to the next sucker. So no worries. The major mainstream media will NEVER report what we do. It goes against the grain.

We have been warning that we are nearing a Phase Transition lift-off. This year’s WEC will focus on what is about to unfold and how to trade this one – because it will be by no means a walk in the park. We are preparing a special report for those who attended Hong Kong & those attending Orlando – HOW TO TRADE A VERTICAL MARKET. You are going to need this one.

We have been moving ever closer to this major event of a Sovereign Debt Crisis which begins next year with the start of the Monetary Crisis Cycle. Governments are clueless as to what is about to unfold. The same is true about 99% of all analysts. Why? You cannot make such forecasts without extremely long databases. You have to see how everything comes together to make these major events in history unfold. That is why most models have at best been back-tested to only 1971. Within the course of history, that is like looking at the last 10 days in the Dow and basing a model only on that slice of time. The obvious conclusion of such a model is the Dow only goes up.

Historically, the majority MUST be wrong for that is the fuel behind the economy and the business cycle. Consequently, the booms and busts cannot be eliminated by government for they react and never prevent anything since they do not understand that they are ALWAYS, and without exception, the primary cause in making the worst economic disasters throughout history. Government will also ALWAYS bite the hand that has feeds it because the object is simply to control the people never properly run the economy for the benefit of all. It historically has ALWAYS come down to a confrontation between the government and the people. Throughout history, there has never been one benevolent government that has EVER surrendered power willingly for the good of the country. That has NEVER happened even once. Power has always had to be ripped from their grasp either by the people, an internal coup, or some foreign invader.

This year’s WEC will focus on the Monetary Crisis Cycle, for now the clock will begin ticking. We have reached almost 23,000 on the Dow – our second target. Will we now reach the third 38,000-42,000 before this is all over?

Seating is limited as always – Ticket Price is $2500

QUESTION:  On Aug. 2 in your blog that you stonily recommend that everyone keep 30 days worth of cash was that just for the Eu?

Thank You

S

ANSWER:  No. Even FDR closed the banks. While bailouts have ceased, the government will simply now expropriate depositors money to save the banks. Keep in mind that the banks sell the government debt call the primary dealers. So no matter what they say, they will protect the banks before the people. The risk is greater in the EU than in the USA. Long-term, keeping cash for expenses will be a wise decision to cover 30 days.