Tag Archives: Marxism

Jun 12 2023

The True Story of Hyperinflation


Amstrong Economics Blog/Cryptocurrency Re-Posted Jun 12, 2023 by Martin Armstrong

QUESTION: Dear Mr. Armstrong,
could you please explain what happens in technical terms from a capital flow perspective, when confidence is lost and hyperinflation starts to begin?
For example Turkey. When Erdogan was elected i think you wrote that ever since the lira started dropping. So confidence in politics is key. Do you think one day we will see hyperinflation in Turkey?
And another example, is Yugoslavia: what caused the hyperinflation (in technical terms/capital flow perspective)? Are foreign investors getting rid of the dinars? Too many dinars than suddenly rushed back into Yugoslavia causing hyperinflation?
Regards,
Magdalena Š.

ANSWER: The misnomer about hyperinflation is that it is caused by printing money. It is a RESPONSE to the collapse in the confidence of the government.  If we look at the 3rd century, this is where we find the greatest number of hoards of ancient coins. What began this was the capture of Valerian I by the Persians in 260AD.

Valerian was the first Roman Emperor to be captured and Rome was unable to recuse him. That shook the confidence of the Roman people, but it also was a signal to the barbarian tribes in the North that if the Persians could do it, they could as well. Within 10 years, Emperor Aurelian constructed the great wall around Rome. Never before did Romans have such a defensive wall. That had a powerful army.

There was a trend toward debasing the silver coinage which began with Nero to try to fund the rebuilding of Rome after the Great Fire. But that did not undermine the confidence in the Roman Monetary System any more than our perpetual deficit spending since World War II.

However, a spark is ignited and suddenly that trend turns into what I have called a Waterfall event in the purchasing power of the currency. Such an event has taken various forms. However, the end result is the collapse in the confidence of the government and as a result, that is when you get that waterfall event.

In the case of Germany, Yugoslavia, Hungary, etc, there was a 1918 Revolution where communists seized power and the emperor of Germany lost power. In that case, they actually asked Russia to take Germany after their revolution in 1917. This was the beginning of the Weimar Republic.

Germany was saddled with reparation payments demanded by France. First, you had a communist revolution and people with capital began to flee to other places in Europe or certainly move their money out of German banks. It was this drain of wealth that forced the Weimar Republic to print money to try to make their reparation payments. Then in December 1922, they seized 10% of everyone’s assets and handed them a bond.

Here you can see that after that December 1922 confiscation, hyperinflation simply took over. It was NOT the printing of money that caused the hyperinflation it was the collapse of confidence FIRST which then compels the government to expand the money supply lacking taxation revenues etc.

I suspect the spark this time may be the Digital Currency and the proposed cancellation of paper currency. This is why people are moving to anything tangible from real estate, gold, silver, ancient coins, and even equities. With DIGITAL CURRENCY they will have capital controls and prevent you from even moving money outside of your country.

The precise day of the ECM was the announcement of the IMF Digital Currency which they intend to replace the US dollar as the reserve currency. This may be timed with the turning point in 2024. It is unlikely that they would cancel paper currencies before the 2024 election. This is all being

Jun 12 2023

Biden Vetos Plan to Scrap Student Debt Redistribution


Armstrong Economics Blog/Politics Re-Posted Jun 12, 2023 by Martin Armstrong

Canceling student loan debt was a lofty promise Biden made during his presidential bid. Three years later, he has made no progress. This was one of those single-issue items that caused many to vote for Biden, and he can’t risk reducing his dwindling support. “I’m not going to back down on my efforts to help tens of millions of working- and middle-class families,” Biden said. “That’s why I’m going to veto this bill.”

Per usual, Dem policies that claim to help the middle class only cause more financial pain. What about the working-class families who chose not to attend college due to costs? What about the families who worked hard to pay off their loans? Universities can continue charging massive fees with no end in sight and his administration has done nothing to curtail the costs of college. So there is no plan to fix the real issue that has caused so many Americans to be saddled with student debt that is nondischargeable in bankruptcy due to the repeal of Glass-Steagall by the Clintons. As a reminder, the debt will not vanish in thin air. Taxpayers will be responsible for this burden.

Instead of “relief,” we should call it what it really is intended to be – payment redistribution. The Senate had agreed to undo the damage in a 52-46 vote before Biden shot it down. Even some Democrats disagree with Biden’s plan to pass on the debt to taxpayers. Senator Joe Manchin said the “reckless” plan “forces hard-working taxpayers who already paid off their loans or did not go to college to shoulder the cost.” Democratic Senator Jon Tester and Independent Senator Krysten Sinema agree.

Extremists like Elizabeth Warren said that it’s “shameful” that Republicans want to “claw back relief from public servants.” They are undermining our intelligence. The hated rich use tax loopholes to avoid payments. The burden will fall on the middle and working class, which is entirely unconstitutional. “ The executive branch cannot spend money that has not been appropriated by Congress,” 31 USC 1301 et seq (Antideficiency Act (P.L. 97-258)) and Article I, Section 7, Clause 7 of the U.S. Constitution.

Jun 12 2023

Europeans Do Not Want to Support the US in a War Against China


Armstrong Economics Blog/War Re-Posted Jun 12, 2023 by Martin Armstrong

America seems to have lost all true allies. Once the world police, the US has been expected to “save” democracies worldwide since the First World War. The US pledges more to NATO than any other member and has gifted Ukraine endless supplies to protect Europe from “Russian aggression.” Yet, a new poll states that Europeans would not want to back America in a war against China.

Six thousand people were surveyed from Austria, Bulgaria, Denmark, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, and Sweden. Only a quarter of respondents said they’d “like their country, or Europe, to take America’s side,” while 62% would like to remain neutral. Around 43% said China is a “necessary partner” to the EU, and they must “strategically cooperate” with Beijing. Bulgarians were the most likely to side an alliance with China (8%) and/or consider the nation a “necessary partner” (58%). Swedes were the most willing to support the US, with 26% calling China an adversary. About 31% of Poles also said they would side with America if they were to go to war with China.

What will happen to America’s allies when China becomes the more strategic trading partner? American politicians have destabilized our economy and are attempting to steer away from capitalism. Countries will be lining up to sell to China, and not the US.

In the end, it does not matter. The people are never permitted to vote on whether or not we go to war. Most of us, regardless of nationality, simply want peace. We all want to have enough to live comfortably, which is not an option during wars. They ask us to sacrifice, but for what? Our politicians create conflict and send the people, who never had a say in the first place, into battle to die.

If China enters Taiwan, the world will erupt into chaos. The neocons have been waiting for that very moment to justify a new war. Every NATO member nation would be required to fight China. A Gallup poll from February showed that 65% of Americans wanted to support Ukraine against Russia, but they likely do not realize what it entails. We are not merely giving Ukraine supplies; we are preparing for a worldwide battle. In the end, the people are merely cannon fodder and I hesitate to show any support to a politician who believes war is the only option for conflict resolution.

Jun 11 2023

Hypocrisy of our Time


Armstrong Economics Blog/ECM Re-Posted Jun 11, 2023 by Martin Armstrong

COMMENT: Mr. Armstrong, Your economic confidence model is too good for the corrupt Noble Prize. I have been following you since 1983. Your research into the shift in confidence between the people and government is so in your face today, I can see why you said the dollar may not last beyond 2029. It is hard to see how the US can stand even until 2032.

Keep up your amazing work. We will need you to start all over again.

BA

REPLY: Good to hear from you. Yes, the old days when I use to hand draw the ECM charts.

Jun 11 2023

Ukraine – Beware


Armstrong Economics Blog/Ukraine Re-Posted Jun 11, 2023 by Martin Armstrong

Jun 11 2023

What If Canada do to Quebec What Zelensky is Doing to Donbas?


Armstrong Economics Blog/Ukraine Re-Posted Jun 10, 2023 by Martin Armstrong

COMMENT: Imagine Canadians bombing Quebec and outlawing the French language and French-speaking people.

My guess is Quebec will eventually use this opportunity to separate from Canada!

The propaganda is so thick!!

Thanks from the Great White North for being a voice of Reason and Truth!!

Jim M

REPLY: Both of my Ukrainian employees have fled to Berlin. Over 8.2 million refugees have fled Ukraine all across Europe. In addition, an estimated 8 million others had been displaced all because Zelensky refuses to negotiate.  I get emails from the refugees and they blame all of this on Zelensky. They fear they will never return and his dreams of bringing Blackrock are just insane. To rebuild Ukraine will take more than a decade. He has robbed these people of peace all for the Donbas which is occupied by Russians for centuries who he/Lindsey Grahm hates.

He can always wear the same army T-Shirt for his propaganda war and put on a helmet to pretend he is a soldier. At the end of this, history will remember him in the same choir as Hitler and Stalin, and Mao.

STOP ALL AID TO UKRAINE

Jun 10 2023

Trump’s Indictment Upends Decades of Lax Classified Docs Precedent—Hillary, Biden, & More Let Off for Similar “Crimes” | SYSTEM UPDATE #96


By Glenn Greenwald Posted originally on Rumble on: Jun 9, 7:00 pm EDT

Jun 10 2023

Everyone Knows – Ukraine Blew Up the Dam


Armstrong Economics Blog/Ukraine Re-Posted Jun 10, 2023 by Martin Armstrong

Ukraine is so dishonest a government and it is always seeking unlimited money from the West, we really need to overthrow all Western leaders who support Ukraine. There are so many who KNOW that Ukraine blew up the Kakhovka hydroelectric dam because it would cut off the water supply for Crimea. Just like Nord Stream, when that was blown up, they claimed Russia did it, when in fact all Russia had to do was turn off the valve.

Every single source I have said the same thing – UKRAINE did it! There is nobody in that government that will EVER tell the truth. Now Turkey is proposing an international investigation into the action. Of course, Ukraine rejects any investigation into anything including where the money is going or the fact that American weapons are all over the place in the black market.

All my sources have said from inside Ukraine that the Ukrainian losses have exceeded 200,000 troops. Biden finally admits that Ukrainian forces have suffered “significant” casualties as they battle to break through Russia’s defensive lines.

Ukraine has launched a land grab and pretending that the Donbas should be theirs when they hate Russians, and outlaw their language and their religion, is just shocking. Everything East of the Dnieper River was the old Russian Empire of the Tzars. That is why there are Russians living there for centuries. This would be like Mexico invading Texas and ordering everyone to speak only Spanish. The border was simply drawn by Khruschev for administrative purposes during the Soviet Union. It was NEVER Ukrainian people in that region. They never had their own country.

This entire nonsense is a proxy war against Russia and the Russian people. This will only end in World War III and as I have said, ALL of the neighbors of Ukraine do not trust Ukrainians who have always been a ethnic group of pure-blood elitists.

The West is using this as a cover because the monetary system is collapsing. They borrow year after year and have ZERO intention of ever paying off the debt. They are deliberately creating WWIII so they can all default, and shift to this one-world digital currency by the IMF which was announced on the precise day of the Economic Confidence Model confirming that is a major agenda.

Jun 10 2023

Jeff Clark Gives Solid Take on DOJ Trump Indictment Scheme


Posted originally on the CTH on June 9, 2023 | Sundance 

Rather than write 10,000 highly specific and legally granular words to deconstruct the Trump indictment, I will share the opinion of others with supporting analysis and add some substance to the issues. Later I will compile all the various points of analysis into one very granular article.

First, it is important to always remember why this indictment is taking place.  The DOJ, specifically Lisa Monaco, are continuing the offensive against Trump in large part to cover for the actions of the Obama administration in the originating targeting of their political opposition.  Originating Spygate operations (’15-’16), Russiagate (’16-’17), Mueller (’17-’19), Impeachment #1 (’19-’20), Durham (’19-’23) and Jack Smith ’22-present, are all part of one long continuum of weaponized DOJ and FBI operations.  The entirety of the effort is to protect the actions taken by the Obama administration. [Note to congress: Questioning Durham this month is defense key #1]

In this interview {Direct Rumble Link} Jeff Clark gives his opinion of the statutory weaknesses that exist in the case as outlined in the indictment.  The first two defense approaches will likely be: (1) the Presidential Records Act supersedes the issues of document holding as noted in the use of the Espionage Act. (2) However, if the Espionage Act [Statute 793(e)] has to be defended, the originating issue of “unauthorized possession” will be the second approach heading to the 11th Circuit Court of Appeals.  WATCH:

Granular note, putting aside the fact that classification is irrelevant to the statute being used, within the indictment please notice how the DOJ states 102 classified documents [pg 27], some that were never marked classified as noted in the indictment [count 11, page 30] but defined as classified after DOJ review, were discovered after the Trump affirmation of compliance in July 2022.  This is the predicate for the FBI raid.  Again, a total of 102 documents were identified as classified by the FBI/DOJ.

They were unable to use classification status as a legal mechanism to attack President Trump; instead, they use the non-production as an evidence enhancement to the ridiculous claim that Trump lied to them (sec 1001); but notice how there are only 31 documents [31 counts] outlined as national defense security issues.  This would mean approximately 70 classified documents are memory holed by this special counsel.

70 defined “classified” documents retrieved, no description provided, those documents not a part of any legal contention – they just disappear.   I suspect we know what those sets of documents pertained to, and they have everything to do with DOJ and FBI conduct in Russiagate.

CTH has a years-long research library on all of these Trump-Russia investigative issues, including the in-real-time background stories that encompass them, and that library is massive.

If you have a specific question, ask me in the comments section and I will do my earnest best to review and answer.

Tell me what questions you have, and I will do my best.

Be of good cheer, I really don’t think this indictment will past the first defense challenge, The Presidential Records Act.

Jun 10 2023

Marjorie Taylor Greene Outlines the FBI Document She Reviewed Highlighting Bribes to Joe Biden and Family – Video and Transcript


Posted originally on the CTH on June 9, 2023 | Sundance 

Amid all the furor of the corrupt and political indictment against President Trump, Congress was permitted to read the witness statement from a Confidential Human Source who outlined allegations of bribery in testimony to FBI agents.

The FD-1023 report was written by FBI investigators in July of 2020.  It became an issue after the FBI seemingly took no action, and then recently claimed to be “investigating” the claims of the “highly credible” FBI source.  Marjorie Taylor Greene (R-GA) reviewed the report and then gave her impression to the media.  Video and Transcript below. WATCH:

Transcript: Reading this form (FBI’s FD-1023) today shows the pure distinction.

This information this source that came forward. It’s a paid informant by the FBI. This has nothing to do with Giuliani. This has nothing to do with the information that he brought forward in 2020. It’s totally separate and it’s extremely incredible because he’s a paid informant.

I made some notes after I left the skiff based on the information and I’ll share that with you guys right now.

Basically, what was happening there is back in 2015 2016 Burisma was looking to buy a US based oil and gas company, and this came from being advised by Hunter Biden and his partners.

(Joe) Biden said Shokan was corrupt. That was around the time of this meeting was when Joe Biden was Vice President had said that the prosecutor Shogun was correct.
They hired Hunter on the board to make the problems go away. That’s what they specifically said.

Hunter advised that they can raise more money if they bought a US company.

So the informant was trying to do the right thing and trying to advise Burisma that they shouldn’t go this route but they should hire an attorney to work out their problems that they were being investigated for because they were having other legal problems. And that’s why they were being investigated by this prosecutor Shokin that it was advising them don’t go this route.

Why would you buy another US company while you’re under investigation? That’s not a good idea. So he’s trying to tell him to do the right thing.

The owner of Burisma said that Hunter was stupid and that his other business partner was smart.

He also said that he paid $5 million to one Biden and he paid $5 million to another Biden and it was all a bribery to get Shokin fired and end the investigation into Burisma.

He also told the informant This is common practice in Russia in Ukraine, common practice, it’s part of business there are other cultural works, that they will pay bribery money in order to get business deals done. And then many businesses, they take that into account they put in their budget, basically, when they’re preparing to buy another company or start another company, that that’s just normal.

And so over in Ukraine, for them to consider hiring Hunter Biden on the board in order to make their problems go away, which was the prosecutor Shokin, who was investigating Burisma for corruption and legal problems.

This was definitely illegal for a vice president of the United States and their family members.

The informant had asked the owner of Burisma if he was happy that Trump won and he said no he was not happy. Remember, he had invested a lot of money into the Biden’s to make these problems go away. But he did say that it would take 10 years for all of us to find out about the payments that were made to the Bidens. Because of how many bank accounts there were.

He said at the time, there were no direct payments made to big guy but at the meeting later, after he had become more upset as things are unfolding, he told that informant that he has two pieces of evidence showing proof of payment to Hunter and specifically Joe Biden.

You see, I think what everyone needs to understand is their business. Whether they perform their business in a legal manner or correct manner, they always keep records of their business payments, accounts and receivables that’s how it’s done and this owner and Burisma pepper record, especially at the bribes and if you’re in an industry where you have to pay bribes to get your business deals done.

You always want to keep a record and keep proof of your brides because that’s how you make sure you get people to follow through on whether it was done.
What I read today is again shocking just as what I read in the treasury department with all the SARS is shocking. But we are going to continue following this investigation.

We’re going to continue to look into every single thing that we can uncover.

We need the FBI to keep cooperating with us that’s extremely important. And I have very high expectations of Christopher Wray that will do the right thing and continue showing us the information that we’re asking for.

What I’m upset about though the FBI doesn’t think the American people are worthy of this unclassified information. I certainly do. I think the American people deserve to know every single bit of it and that’s why when I left the skiff, I’ve made this paper here so that I could explain everything to the American people. (End Transcript)