I do hate to disagree with Walter E. Williams but there is a problem with this argument which is since everything can be made cheaper in sweat shops overseas then it must follow that everything must be made overseas. The extension of that is that all work will be done somewhere else and all consumption will be done here; obviously that can not work; for there is no one working and and therefore there is no money to buy anything and the system collapse.
Tag Archives: Keynesian Economics
Larry Summers – Who Admits He Cannot Forecast – Forecasts Trump
Armstrong Economics Blog/Armstrong Economics 101
Re-Posted Jan 8, 2017 by Martin Armstrong
QUESTION: Marty; Did you see Larry Summer’s comments on Trump. Is this guy completely insane? He says Trump is proposing things off the planet. Wasn’t it Summers who came up with the negative interest rates and supported repealing Glass Steagal?
ANSWER: Larry Summers is a classic example of how a PHD means absolutely nothing compared to real life experience. He had the audacity to say, “The vast majority of the companies who have large overseas cash also have substantial amounts of domestic cash.” Obviously, Summers has never advised a real company. If Trump makes it a 10% tax, any company who does not bring their cash home would be a short. EBay had two companies it wanted to buy domestically. It backed out of the deal because it would have to bring in cash from overseas and pay too much tax to make it worthwhile. That’s how much Larry Summers knows about the world.
Summers went further, “The reality is that cash that is brought home will be used to pay dividends, to buy back shares, to engage in mergers and acquisitions, to rearrange the financial chessboard, not to invest in large amounts of new capital. It is a chimera to suppose that there will be large increases in capital investment as a consequence of that repatriation.”
First of all, paying dividends and buying back shares will put money DIRECTLY into the hands of investors who will redistribute the funds. Summers tries to “stimulate” by handing banks billions with no strings attached in hopes that they will lend the money to people who want to borrow. Then he wants to impose negative interest rates to punish people for not spending or investing.
Larry Summers has publicly admitted he is incapable of forecasting the economy, so where does he get off saying this nonsense? Quite frankly, those who are watching their pension funds go bankrupt should sue this guy for his non-conventional idea of negative interest rates to “stimulate” the economy. He gave us the 2007-2009 crisis by repealing Glass-Steagall and supporting the bankers, and he set the pension crisis in motion with negative interest rates. Thank God Hillary lost because this clown would be in charge of screwing up the economy even more.
Poll: Most Americans Oppose ‘Sanctuary Cities,’ Support Trump’s Travel Ban
Why should the tax payers be supporting the people that don’t even belong here.
Cartoon Sums Up Why The Media’s REALLY Freaking Out Over Trump
Trump is not allowed to talk directly to the American people, its the medias job to tell the people what Trumps says; or so that is what the media thinks but Trump isn’t buying that so their pissed.
*(WE ARE ALL LIMPOPO) – Unhinged Maxine Waters Calls Trump’s Cabinet a ‘Bunch of Scumbags’ and the ‘Kremlin Klan’
Maxine Waters does even know why she is saying what she is saying what a fool.
RUSH: ‘Not My Presidents Day’ An Abject FAILURE
The thousands they forecast ending up be less than a hundred in most cities so it was a loser for the left.
MSNBC anchor declares it the media’s job to ‘control exactly what people think’
Sadly way too many of the under 30 cohort have been brain watched in the public schools and are unable to think for themselves; so they get sucked into the black hole of the pop culture.
The Socialism Diet: 75% of Venezuelans Have Lost an Average of 19 lbs
At some point the weight loss will start killing people … 😦
Martin Schultz Wants to Give Refugees the Right to Vote in German Election
Armstrong Economics Blog/Germany
Re-Posted Feb 22, 2017 by Martin Armstrong
To win the election in Germany, the SPD & Greens want to move to change the law regarding voting rights. Essentially, they want to give the refugees a right to vote. They need not be an EU citizen nor do they need to pay taxes. The mere right to vote is you happen to be there at the time. Meanwhile, the SPD has now taken the lead in polls from Merkel. Martin Schulz, the German Social Democrats’ candidate for federal elections in September, is the very person who in the EU wants to federalize Europe and this scheme is intended to use anyone other than Germans to win the election.
The Social Democrats are 63.7% in favor of letting the refugees vote. The Alternative for Germany (AfD) poll shows 96.9% against Schulz’s idea. Can you imagine letting everyone from Mexico come into the USA and then vote if the United States should petition Mexico to join them? It seems the left is just totally insane. They will do absolutely anything to win and that means they will allow all of the Middle East to enter Germany and then outnumber the Germans in their own election?! Where is the logic here?
Spiegel, the German magazine reported: “In 1990, all of Germany celebrated the reunification of a country divided since World War II. But the optimism was naively misplaced. The real German division sees the North pitted against the South.” As Spiegel went on: “What happens when a blonde moves from Berlin to Bavaria? The collective IQs of both places go up — at least according to a favorite joke told in the German capital. And the Bavarians? They just call everybody not from their easy-going part of Germany Sau Preussen, or “pig Prussians.” In other words, not a lot of love is lost between the North and the South in Germany.”
Seven Weeks’ War, also called Austro-Prussian War, (1866), war between Prussia on the one side and Austria, Bavaria, Saxony, Hanover, and certain minor German states on the other. It ended in a Prussian victory, which meant the exclusion of Austria from Germany. This was the unification of Germany. Bismarck had maintained that he orchestrated the conflict in order to bring about the North German Confederation, the Franco-Prussian War and the ultimate unification of Germany.
Of course, the concept of Germany as a nation or distinct region within central Europe can be traced to Julius Caesar. It was Caesar who referred to the unconquered area east of the Rhine as Germania. Indeed, Germanicus was the name given to the great-nephew of Augustus, Caesar’s heir.
It was in 962 AD, when Otto I became the first emperor of the Holy Roman Empire, thereby establishing the medieval German state. Interestingly enough, if we square 31.4 we arrive at 985.96 years. Add that to 962 we come to 1947. Just on 51.6 year wave of the ECM thereafter brings us to the start of the Euro in 1999.
The likelihood of Germany dividing North v South is extremely high. This entire refugee issue was bad enough. For the SPD to try to give them votes to take control will set off an internal German civil war.
Norway Insane Property Boom or Capital Flight from Eurozone?
Armstrong Economics Blog/European Union
Re-Posted Feb 22, 2017 by Martin Armstrong
QUESTION: Hello Martin, I was wondering if you could write a piece on the Norwegian real estate market? The market has gone complete mad the last couple of years with salaries declining, and housing prices booming. Over 40% of Oslo is now owned by people not leaving there. A lot of apartments are empty because people don’t care to rent them out, it is just for speculation. Will this continue or will the Sovereign debt crises drag the market down with it? Love your blog, and hope you can spare some time for little Norway!
HG
ANSWER: Actually, I will be speaking there in Norway in a few weeks. Most of this “speculation” is really parking money. They are not trying to actually make a profit, which is why they are not renting these properties out. This is about parking money outside of the Eurozone. This has been a bet against Brussels and the collapse of the Euro. When we look at the share market, we see an outside reversal to the upside in 2016 as our model warmed with a Panic Cycle. This too is money trying to get off the grid.
The is a picture of the Krone expressed in US dollars since 1927. Here also, the dollar is positioned to rally against the Krone and we should see a new high above that of 1985, but at the very least a rally to retest that level for the third time.
In the case against the Euro, the Yearly Bullish Reversal stood at 87125 and we closed 2016 at 86450 after reaching intraday for the year 89940. To have exceeded the Yearly Bullish for the Euro intraday yet failed to close above it warns that the rally in the Euro against the Krone is most likely coming to an end.
Centinel2012 