Armstrong Economics Blog/Economics
Re-Posted Apr 10, 2019 by Martin Armstrong
QUESTION: Dear Mr. Armstrong,
I have a question that might interest not just me but also other blog Readers:
In your blog Posts you write that you expect that we will have a hard landing going into 2020.
My question is: What does that mean for the Dow? Do you expect the dow to correct into 2020 more that 20%.
Thank you for your work and best Regards,
A
ANSWER: The hard landing is economic and will have its greatest impact outside the USA. While central banks have sold US Treasuries in an attempt to keep the dollar down, the private sector has been pouring assets into the USA and particularly the Dow. Our capital flows have tracked a significant shift in global capital flows into the USA especially from Europe. That should come as no surprise given the chaos in BREXIT as well as the May elections.
We still do not see a major correction in the Dow. We have been undergoing a shift from public to private assets on a global scale. Therefore, the hard landing will be more economically based and central banks will try to do something, as in lowering rates, but they have run out of bullets. The Fed has tried to back off on rates after buying into the problem of a hard landing outside the USA. The ECB has been on its hands and knees, pleading with the Fed not to raise rates when they will have to continue their QE programs or face sovereign debt defaults.
Trump’s Agenda is Officially Dead
Armstrong Economics Blog/Politics
Re-Posted Apr 10, 2019 by Martin Armstrong
We should not expect Trump to get any of his agenda items through Congress. Trump’s promises to replace the Affordable Care Act, invest in infrastructure, and cut middle class taxes have been essentially shelved. The Democrats refuse to cooperate on anything in hopes of using that against him in 2020. What this really means illustrates my concerns. Government has simply ceased to exist and all we have is a couple deadlocked in a bitter divorce.
This reminds me of the best scene on this subject from “When Harry met Sally” and how bitter a divorce can be. This is what politics has degenerated to and it is in line with our computer’s forecasts that this is the end-game for Western civilization. There is just no going back. Government is now a battle to see which side can destroy civilization first. Websters’ defines civilization as “refinement of thought, manners, or taste,” none of which we can see in Washington anymore.
The entire purpose of civilization is everyone coming together because the sum is greater than the individuals. Today, we have reverted back to the individuals and there is no longer any cohesive sum that is greater. We have devolved backwards and it will take the crash and burn of government before we can rise from the political ashes with hope of a new government structure that once again respects the liberty of the individual.
While the Democrats have officially killed the Trump agenda, what they fail to understand is that this is also the destruction of their agenda as well. There will no longer be a government of ALL the people, it is now a government of us v them. That is how civilization dies. It defeats the entire purpose of forming societies. Politics has become a confrontation to impose tyranny upon your opponent. The very core of socialism is to deny individual freedom. The state comes first – the individual second. Everything the American Revolution stood for is now completely overturned.
Creepy Smallville Actress Allison Mack Pleads Guilty to Being Sex Slave Mistress in NXIVM Case…
April 8, 2019
Creepy is too soft a description for the behaviors Ms. Allison Mack attested to in court today. According to her guilty plea Ms. Mack plead to a racketeering conspiracy and direct racketeering. However, her action within the ‘racketeering conspiracy‘ is far worse than the disingenuous legal terminology.
Ms. Mack recruited people into a sex cult, then helped organize blackmail material that forced her recruits to engage in sex cult behavior with Keith Raniere which included the branding of victims as sex slaves. Everything about this is cult activity is deviant in the most extreme.
Ridiculous apologetic phrases like: “I now realize I was wrong“, sound absurd when contrast with this sick and demented behavior.
As if there was ever a possibility at the beginning of an evil collaboration to NOT REALIZE blackmail, sex trafficking, occult branding and forced manipulation of people was wrong. Whiskey-Tango-Foxtrot… this type of sociopathic disconnect is really alarming.
NEW YORK – A teary Allison Mack pleaded guilty to two federal counts Monday in the NXIVM sex-cult case.
“I have come to the conclusion that I must take full responsibility for my conduct and that’s why I am pleading guilty today,” said a choked up Mack, who admitted to one count of racketeering conspiracy and one count of racketeering.
Mack attended court in dark relaxed-fit pants and a creamy mock-neck sweater. She kept her hair in a bun and sported leopard sneakers, as she had at her last court proceeding.
At the beginning of her allocution, Mack explained in part what drew her to NXIVM. Many of the members were “wonderful people and some of whom, I now realize, were not.”
“I joined NXIVM … to find purpose,” she said of the group, which was headed by co-defendant Keith Raniere. “I truly believed I found a group of individuals who believed as I did.”
“I believed Keith Raniere’s intentions were to help people,” she said. “I was wrong.”
Prosecutors allege that NXIVM, an Albany-area organization that offered costly self-help classes, contained a secretive sect called DOS that “operated with levels of women ‘slaves’ headed by ‘masters.” (read more)
This stuff is evil. Almost beyond comprehension.
The New Brexit Party in Britain May Be Underestimated
Armstrong Economics Blog/BRITAIN
Re-Posted Apr 9, 2019 by Martin Armstrong
Nigel Farage led the Ukip party to victory in the last EU elections in 2014. They won 24 MEPs and brough BREXIT to the forefront, however, Nigel split from Ukip when it turned a hard right. Seven MPs have followed Nigel and switched to the newly-formed Brexit Party after PM Theresa May refused to listen and turned to the Labour Party to try to keep her deal on the table. This new party was just formed in April and it is seeking to simply exit the EU as the people previously voted.
The Brexit Party is a Eurosceptic, pro-Brexit, political party in the UK. As of April 2019, the party’s representation consists of nine members of the European Parliament, all of whom were originally elected as UK Independence Party (UKIP) candidates. Nigel Farage has announced he would stand as a candidate for the party in any future European Parliament elections in the event the UK has not already left the European Union. The last straw was simply when Prime Minister Theresa May asked Labour leader Jeremy Corbyn for Brexit talks in a bid to reach a compromise on her deal to trump her own party.
The French President Emmanuel Macron is looking to humiliate Britain by demanding that any extension result in Britain forfeiting all rights to vote in the EU. He has also come out and declared that BREXIT could damage Anglo-French relations for years if he forces Britain out of the European Union against the wishes of Parliament.
The political chaos in Europe is just off the charts as we head into May. This is seriously altering the capital flows by sending capital fleeing the EU by the billions. We have shown this chart before. This was compiled using the British government’s own statistics. Britain entered a protracted economic decline after it joined the EU. It makes no economic sense to remain.
America’s Public Schools are a National Disgrace Teachers Unions & Democrats Being the Main Culprit
“AOC” Dancing Socialism into the Hearts and Minds of Young People Everywhere
Austria Moves to Tax Online Companies
Armstrong Economics Blog/The Hunt for Taxes
Re-Posted Apr 8, 2019 by Martin Armstrong
The EU has been unable to agree on taxing the internet. As a result, Austria went ahead and passed its own digital tax this week on revenues earned by online companies in their country. The entire problem with this type of taxation is the burden of accounting. This means that the online world will be forced to file taxes in every country with a matrix of tax rates and specifications. Small business will be the ones impacted the most and they will more likely just ban their products for sale in various countries.
Governments are going broke. They will never stop to look at the ramifications their actions have caused within the global economy.




