Tag Archives: Keynesian Economics

Nov 13 2019

British Labour Party – The Greatest Threat to Britain


Armstrong Economics Blog/BRITAIN

Re-Posted Nov 13, 2019 by Martin Armstrong

There is absolutely no question that Jeremy Corbyn and the Labour Party poses a greatest threat to Britain than Brexit. Corbyn said, “Nurses, teachers, shop workers, builders, just about everyone is finding it harder to get by, while Morgan Stanley’s CEO paid himself £21.5m last year and UK banks paid out £15bn in bonuses.” What he fails to consider is that the solution is not to raise taxes on CEOs, the solution is to reduce government. Even if they seized 100% of CEO salaries, it would not pay the expenses for a single day. But they love to point to some individual rich person and make it sound like all will be well if they just seize his money.

Socialism is dead. Before income taxes pre-World War II, the wife could stay home and raise the children. Today, that is not a possibility for most people. It takes two salaries to pay for the very same living standard pre-World War II. The more government pretends to do something, the greater the cost of government becomes. Every time they introduce some new tax, they hire more people and create more regulations for that specific tax. It is simply an endless process where now about 40% of the civil workforce is dependent upon government, which means they do not produce anything that contributes to the GDP of a nation.

Corbyn has boasted that the Labour Party is a threat to the rich. All he will do is send a massive migration from Britain. We have already been getting questions about moving companies and their domicile to the USA, as has been taking place even with major public companies in Canada

Nov 12 2019

Gold Standard & the Never-Ending Fantasy


Armstrong Economics Blog/Gold

Re-Posted Nov 12, 2019 by Martin Armstrong

QUESTION: Do you think it is remotely possible for any return to a gold standard? I believe these arguments are not realistic.

DR

ANSWER: The fringe fantasy of a return to the gold standard just never dies. If we did not have vast unfunded liabilities and rising socialism to contend with, then such a possibility of a partial backing is possible. But to back the currency by gold, even say 1%, the restraints upon government would be unbelievable. First and foremost, politicians could not run with all sorts of promises. Bernie and Warren would be outlawed. We are so far away from any possible fixed exchange rate it is laughable.

There is so much that would have to change politically and economically for any form of a fixed exchange rate system, no less one backed by gold or anything that would be limited. You simply have to comprehend that even attempts to fix the currencies have blown up like the pound in the ERM crisis and the Swiss-euro peg. There is just so much more to this than some fictional return to a gold standard. Bretton Woods collapsed because they fixed the dollar to gold. You cannot fix even gold and silver to an unchanging ratio.

Categories: Gold
Nov 11 2019

FEDERAL RESERVE THANKSGIVING!


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The stock market melt-up continues. Oh sure, it may be going down today, but that would indicate another buying opportunity. Buy the dip! That has worked for the past 10 years. Recessions are a thing of the past. Unemployment is low. The economy is doing great! Buy stocks! BUY BUY BUY! The stock market will not go down through 2020. Trump has ordered the Fed to make it so. We should be glad our president has such influence, but it’s more complicated than that.

I support Trump, but he’s wrong about the stock market has an indicator of economic health. The stock market is in a ridiculous bubble. That’s what the Federal Reserve does—it creates bubbles. The valuations of stocks are way out of whack with what the companies earn.

Too many Americans can’t afford to buy such sky-high stocks anyway. Most Americans are in debt and living paycheck to paycheck. For the first time, the 1 percent now has more money than the entire middle class combined. Not by means of capitalism, but by fascism. They’ve rigged the game in their favor. They have hijacked our government to make sure they will get more. Always more. The middle class is in decline. Real wages are not rising, but they’re paying more in terms of taxes and the hidden tax known as inflation. The millennials can’t pay off their college debt, let alone buy a house and start a family. The corrupt, millionaire politicians made sure those with college debt can’t declare bankruptcy. Housing prices are prohibitively expensive. That means rent goes up, too. One third of the millennials are forced to move back in with their parents. Meanwhile, 84 percent of the stock market is owned by the wealthiest top 10 percent of Americans. The 1 percent owns 38 percent of the stock market.

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The ‘too big to fail’ banks have no worries. While most Americans fret about paying bills, the banks get free money from their Federal Reserve, which is there to bail them out to the tune of $150 billion per day if needed. Quantitative easing never ended. The Plunge Protection Team that is the Fed always ensures the market is propped up. It’s a perma-Thanksgiving feast for the central banks. These banker turkeys love to gobble up money. They are stuffed with money. A lot of that money goes into ‘their’ stock market. Martin Armstrong predicted the Dow will hit 40,000 in a few years. Why? Because all that free money has nowhere else to go, so they use it to make the stocks they already own go up even more. The banks aren’t going to give it to us, that’s for sure. We do get stuck with the bill, however. We pay for it via inflation and taxes and the national debt has now exceeded $24 trillion.

The Illuminati won’t spend that money on rebuilding infrastructure such as roads and bridges, but they will use it to buy up utilities and then make sure the electricity gets turned off to make their serfs suffer even more as they usher in their climate change-based ‘globalism.’

Conniving, evil men were allowed to inflict the vile Federal Reserve debt money system upon We The People. Congress unconstitutionally abandoned their mandate to handle our currency. They illegally turned over that power to international bankers. The Illuminati have always been about globalism and control and they’re achieving their goal by controlling our money supply. By this means they buy out everything—the mass media, the politicians, the courts—everything.

It’s time to wake up and END THE FED!

—Ben Garrison

Nov 11 2019

The Solution


Armstrong Economics Blog/Economics

Re-Posted Nov 11, 2019 by Martin Armstrong

QUESTION:

Hi Marty:

Congratulations on a fantastic WEC 2019.

I have reviewed your Solution video. Could the government ease into such a solution in stages? For example, the government could place a moratorium on issuing debt and pay the year’s budget which included a reduction in principle on outstanding bond debt, and meeting current interest expense, by printing actual currency.

Dan

ANSWER: Yes. I believe we would have to do this in three stages. The point of the exercise is that markets trade on ANTICIPATION. Once it is realized that we are actually making a fundamental change, the markets will begin to move to reflect the long-term expectations.

Categories
Nov 7 2019

China Moving to Create a Digital Currency


Armstrong Economics Blog/Cryptocurrency

Re-Posted Nov 7, 2019 by Martin Armstrong

China’s National People’s Congress has passed a new law to create a digital yuan. Back on December 5, 2013, the People’s Bank of China (PBOC) took its first step in regulating Bitcoin by prohibiting financial institutions from handling Bitcoin transactions. They were using Bitcoin to get money out of China in a modern money laundering scheme. Cryptocurrency exchanges or trading platforms were banned by regulation back in September 2017. They closed 173 platforms by July 2018. As I have warned, governments will NEVER allow Bitcoin to replace a national currency. They have used it for study, but it only takes a pen to kill Bitcoin.

Therefore, cryptocurrencies will not be allowed to compete in China against the government. This will be the same worldwide. Countries will move toward digital currency to enforce laws and taxation.

Categories: Cryptocurrency
Nov 7 2019

Trying to Overthrow the Dollar


Armstrong Economics Blog/USD $

Re-Posted Nov 7, 2019 by Martin Armstrong

QUESTION: Marty, you said at the conference the efforts to overthrow the dollar as the reserve currency have failed and it will take the Monetary Crisis Cycle to accomplish that. Now that Lagarde is in the ECB, will she aid that overthrow to be replaced by the IMF’s SDR?

It was a fantastic conference this year.

FG

ANSWER: The US has abused the role of the dollar in world commerce by imposing sanctions on places like Iran. These sanctions are supported by enforcement using the dollar. The US has weaponized the dollar in this respect. About 90% of international debt is denominated in dollars. Foreign countries issue their debt in dollars to eliminate FOREX risk in order to sell it globally. Both Putin and Xi want to find an alternative to the dollar. It has been the role of the dollar that drives Putin to dethrone the dollar.

There is NO ALTERNATIVE to the dollar — PERIOD!!!!! The stupid Negative Interest Rates on the euro undermined the euro as a possible reserve currency. It has been dumped internationally, which nobody wants to talk about. In discussions with major central banks and key international banks, nobody wants the euro. Negative Interest Rateshave killed the euro as a viable currency for exchange purposes. The EU President Juncker has said that it is “absurd” that Europe has to pay for its energy imports in dollars. He has failed to understand that it is their own fault, for the structurally defective euro lacks a central national debt and forces everyone to look at each member state independently in the same manner that applies to state debt in the USA. That lack of a national debt where capital can park has been the fatal flaw behind the euro. Then add the stupidity of Negative Interest Rates and you get a currency that dressed up for Halloween, but is by no means a real reserve currency.

China has given up on trying to fight the dollar. They realize that all the yelling and screaming is pointless. The yuan accounts for only 4% of international transactions. The key for China is to use the yuan in loans to build its road of trade globally. Their greatest hope will be for the Monetary Crisis Cycle to undermine the dollar in the year ahead. That combined with the neo-cons trying to weaponize the dollar will be the ultimate means to dethrone the dollar

Nov 6 2019

Nine American Women and Children Massacred by Mexican Drug Cartel, President Trump Offers U.S. Military Assistance to Mexican Government….


Re-Posted from The Conservative Tree House on November 5, 2019 by 

Last month the Mexican government backed-down from a drug cartel in Culiacan, releasing the two sons of drug lord El Chappo after the cartel overwhelmed the Mexican military during an attempted arrest.  The cartel defeated the Mexican military.

Today, three American mothers and six children (4 boys, 2 girls) were brutally murdered in northern Mexico by drug cartels prompting President Trump to offer military assistance to Mexican President Lopez-Obrador in the ongoing struggle against cartel violence.

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MEXICO CITY (Reuters) – Gunmen killed nine women and children in the bloodiest attack on Americans in Mexico for years, prompting U.S. President Donald Trump to offer to help the neighboring country wipe out drug cartels believed to be behind the ambush.

All nine people killed in Monday’s daytime attack at the border of Chihuahua and Sonora belonged to the Mexican-American LeBaron family, members of a breakaway Mormon community that settled in northern Mexico’s hills and plains decades ago.

A video posted on social media showed the charred and smoking remains of a vehicle riddled with bullet holes that was apparently carrying the victims on a dirt road when the attack occurred.

[…] A relative, Julian LeBaron, called the incident a massacre and said some family members were burned alive.

In a text message to Reuters he wrote that four boys, two girls and three women were killed. Several children who fled the attack were lost for hours in the countryside before being found, he said. He said it was unclear who carried out the attack.

[…] Trump tweeted that he would await a call from Lopez Obrador, urging him to accept U.S. assistance.

Lopez Obrador said he would call Trump on Tuesday about ways to cooperate on security but rejected what he called any foreign government intervention.

“I’ll speak with President Trump to thank him for his support, and to see if in cooperation agreements there’s the possibility of getting help,” he told a news conference. “I don’t think we need the intervention of a foreign government to deal with these cases,” he added.

[…] “War is irrational. We believe in peace,” said Lopez Obrador, a leftist who took office last December. (read more)

It’s starting to look like President Lopez-Obrador is a cartel manager.

Build the wall.