COMMENT: Marty; the Fed quietly published the banks it was funding in the Repo Crisis. I just wanted to say, you are always right. The press claimed it was tax time, but you said it was the crisis in European banks. Your sources are always spot on. Thanks for the light of truth.
REPLY: Yes, that story that the liquidity crisis occurred because US corporations withdrew large amounts from the banks in order to make quarterly tax payments was the most absurd propaganda I ever heard. Why then do we not see the same liquidity crisis event during tax season?
The bulk of the loans covered foreign banks, as well as Goldman Sachs and JPMorgan Securities. It was all driven by the simple fact that Merkel said there would be no bailout for Deutsche Bank, which was the major derivatives counterparty problem involving Wall Street. Deutsche Bank had a major derivatives book, and if it failed, it would have taken down US banks. Deutsche Bank was in crisis and then it was too big to merge with Commerzbank. They had to lay off nearly 20,000 staff and a major effort was undertake to try to isolate its toxic assets.
That is why the Fed had to step in as the market maker to bail out Europe for US banks all backed off. I really do not know who makes up these stories to try to hide the truth. But they always do in hopes of preventing panics. This time, the game is up.
COMMENT: All these increased demands for my product is great, but it comes with quite a wholesale flower prices have also increased significantly making the cost of the arrangements much higher. Wholesale rose prices have jumped 56%. Last year I could buy a pack of 25 roses for $18, where today they cost $28. I have to pass these costs onto my customers, but even with the increased cost people are still buying more flowers this year than the same time last year.
REPLY: Thank you for this info. It is hard to find any industry that is not suffering from a shortage of supply.
The Bureau of Labor Statistics (BLS) has released the September jobs report [DATA HERE] showing a dismal 194,000 jobs added against a financial media and Wall Street expectation of 500,000 jobs. [CNBC Apoplectic] The labor participation rate in the worker economy overall has not moved since Biden’s inauguration, and stands at 61.6%.
Digging into the numbers, what is happening is exactly what we ¹should expect. Outside the immediacy of private sector durable goods retailers seeing a pull back in consumer purchasing due to inflation (which we continue to point out is the critical issue); the local economies impacted by a declining tax base are key early indicators of contracting economic activity. Wage gains are not keeping up with inflation.
Inside the data, you will note [Table B-1] a significant decline in Local Government Education of -144,000 jobs. Obviously the collapse of in-school teaching leads to less jobs in this sector overall. However, the drop happened at the exact same time students were returning to a new school year, and this drop is also reflected year-over-year. Schools were impacted by COVID in Sept 2020 more than schools are impacted by COVID in Sept 2021, yet this year the jobs are completely gone. Something bigger is happening in this sector.
Additionally, healthcare services show a major drop in employment (-37k) specifically as it relates to elderly care and nursing homes. All the sub-sectors of elder care are significantly lower in employment.
Retail was essentially flat (+56k) considering the scale of the sector; and durable goods within the retail sector show declines in employment. Again this would indicate less consumer spending on durable goods, as food and energy inflation are prioritizing spending habits. Leisure and Hospitality (+74k) with hotels and restaurants doing the majority of the hiring as the rebound in this sector continues.
[¹Here it is important to note a slow cascade effect that will take time and we are not near the peak of the trouble yet. As a historic reminder, the epicenter of the peak financial crisis (housing) was triggered in Nov/December 2005. However, the trouble was not visible on a national scale until 2007. Economic data shows the current triggering event took place in May/June of this year. Make of that what you will]
(CNBC) […] The U.S. economy created jobs at a much slower-than-expected pace in September, a pessimistic sign about the state of the economy though the total was held back substantially by a sharp drop in government employment.
Nonfarm payrolls rose by just 194,000 in the month, compared with the Dow Jones estimate of 500,000, the Labor Department reported Friday. The unemployment rate fell to 4.8%, better than the expectation for 5.1% and the lowest since February 2020.
[…] “This is quite a deflating report,” said Nick Bunker, economic research director at job placement site Indeed. “This year has been one of false dawns for the labor market. Demand for workers is strong and millions of people want to return to work, but employment growth has yet to find its footing.” (read more)
[INFLATION] is terrible for wage earners in the U.S. who are now seeing no wage growth and higher prices. Real wages are decreasing by the fastest rate in decades. We are now in a downward spiral where your paycheck buys less. As a result, consumer middle-class spending contracts. Eventually, this means housing prices drop because people cannot afford higher mortgage payments.
Gasoline costs more (+50%), food costs more (+10% at a minimum) and as a result, real wages drop; disposable income is lost. Ultimately this is the cause of Stagflation. A stagnant economy and inflation. None of this is caused by COVID-19. All of this is caused by economic policy and monetary policy sold under the guise of COVID-19.
The Democrats are simply insane. Every study on taxation has shown that the lower the tax rates, the greater the economic growth. The Reagan tax cuts resulted in people paying more in taxes because they earned more. The new tax hiked will push NYC to 61.5%. Anyone who lives there has got to be insane to stay. The Super-Rich set up trusts, foundations, and every sort of vehicle that skirts the high taxes. The Democrats always allow those because they themselves use the same tricks. Obama had little when he entered the office and now has a multimillion beach house when he was claiming the oceans were rising.
The one thing everybody better do is call your accountant. The Democrats CANNOT be this stupid. Raising taxes of this magnitude, going after businesses, and trying to end inheritance which is what they REALLY want to do – make it all now normal income, can set in motion the worse liquidation in modern history.
This is AOC wearing a dress to celebrate the occasion of trying to destroy society. She fails to understand that it takes money to start a business and to hire people. Under their plans from reliable sources, they really want to tear the country apart. They see nothing but hatred in capitalism for everything to them is just money. If you love what you do, you will be successful in life. If it’s just a job, then that is all it will ever be.
Twenty years ago if you bought a house you could just put your kid’s names on it as well – no big deal. Today, if you try that, they have to declare it as income and pay taxes on it which is not even cash. This is the new world order. You may have to sell assets this year and buy them back for selling next year of an accumulated profit may be devastating.
The Democrats want the banks to turn over ALL information on everyone to the IRS. You no longer need to have an audit. They are simply adopting the idea of guilty until proven innocent when it comes to money they want to get their hands on. This is stage one, and as they move to replace paper money and cryptocurrency with their own version, NOTHING you do will ever be private. The only way to pay the 13-year-old girl next door for babysitting will be by barter.
The Bank of England tells Parliament they need to intervene on digital currency “programming” — “Digital cash could be programmed to ensure it is only spent on essentials or goods which an employer or Government deems to be sensible.” This is a completely totalitarian state — not one of freedom and human rights. The Federal Reserve has been moving for instant payments in order to eliminate paper money. The Federal Reserve has been secretly trying to accommodate Big Tech to directly deposit with the Fed and bypass banks. “The proposed guidelines are in part a reflection of the ongoing efforts by Big Tech and FinTech firms to engage in banking activities without being subject to bank regulation and supervision.”(see the report of Bank Policy Institute).
The end game here is simple:
You will not be allowed to BUY or SELL anything without government approval!
In the USA, they are doing this in a very sneaky way and are trying to slip this one in along with social distancing and masks. They are clearly trying to push our society into an authoritarian state. The economic system is collapsing because they have borrowed since World War II and have never intended to pay anything back. Now with interest rates at a 5,000-year low, the system of borrowing endlessly year after year has failed. They can no longer fund their expenditures, so they have used COVID to scare the hell out of people in order to bring about this Great Reset. There will NEVER be a return to normal; even John Kerry told you that from the outset. He claimed that the old system was broken, so we cannot return to a system that no longer works. He just used climate change as that excuse
Little by little, step by step, they are taking us down this road of a new hybrid form of communism. They preach equality, but that does not include the elite. That is the world they are constructing for us to become mindless drones who are happy to have nothing or human motivation as in “The Matrix.”
Fauci is not even a real doctor. He went directly into government when he graduated, probably because he could not deal with patients. Yet, here he is telling you “equality” is the #1 solution to support this Great Reset.
This is a hybrid communistic system where the elite will control what we are allowed to buy and sell. They think communism failed ONLY because they had China and Russia but not the rest of the world. They think if they conquer the entire world, it will work this time, and they will be at the top. That only goes to show that they have disagreed with Ann Rand’s “Atlas Shrugged” or never read it, and they believe we are the Great Unwashed here only for their pleasure. Since all of these movers and shakers are in their 80s+, including Fauci, perhaps their Fourth Industrial Revolution with transhumanism is their personal answer to living forever, fearing death themselves. They are pushing this agenda perhaps out of personal fear of death.
Armstrong Economics Blog/Australia & Oceania RE-Posted Sep 8, 2021 by Martin Armstrong
The Australian health chief Dr. Kerry Chant seems to have forgotten everything about medicine and really should be investigated but with a corrupt government, nobody investigates themselves. Chant is telling Australians they will have to wear masks forever and has now even said that Australians will never be allowed to return to normal because they will constantly need booster shots forever. All the studies have shown that masks are “useless” so are these people just being bribed by the elites to destroy society? The MAJORITY of people in the hospitals now with COVID are vaccinated. The risk of these vaccines is that they may interfere with our natural immune system. Israel has already confirmed that natural immunity is 13 x better than these vaccines.
Unions in Australia are also suspect. As a reader points out:
“Trade Unions are finished in Australia for selling out their members to The Great Reset globalist agenda/takeover. I am a life member of the NSW Fire Brigades Union and I have family in the construction union CFMEU and they have in indeed as this man says done NOTHING to push back against mandatory vaccinations.”
The Australian government is claiming that truckers pose a danger for they were spreading the virus around the country. They ordered the truckers to be vaccinated or lose their job. They refused to show up to work and others blocked the roads. The Western culture of freedom is falling into the final bastion of the once free world spiraling down into a new sort of Dark Age. The politicians are promised by the elite that they will be the cream of the crop and always rise above the Great Unwashed. The elite above them thinks that they can simply bribe their way through anything and like a queen bee transform us into worker bees to support their hive of power.
But the power always rests with the Great Unwashed for throughout history the elite end up with their heads paraded among the streets on spikes. The real power to change the world always resides in our hands. For if we simply refuse to work, we shut down their hive. What if everyone stood up and refused to pay taxes or their mortgages? Sure, they can prosecute a small group. But they cannot prosecute everyone.
What the truckers have shown to the world is that even the political elite will starve without food transportation. Hence, the power resides ALWAYS with the Great Unwashed. These people ALWAYS think they are the NATION and become drunk on their own power, ignoring that they are NOTHING without WE THE PEOPLE.
In Australia, the government and the police have simply gone insane. They have created mandatory quarantine confinement, much like isolated confinement in a prison where suicide is always very high. Many people simply cannot psychologically handle being confined in isolation. In Australia, they are putting people’s lives at risk. Here is a man going crazy after two weeks of isolation and nine tests that were all NEGATIVE for COVID. This is what people are starting to call COVID concentration camps. The police will also beat people and threaten to gas them. The treatment in prison is not this bad, for they have doctors to monitor the psychological impact on people in isolation, which is totally absent in this environment that qualifies for the international definition of cruel and unusual punishment.
Meanwhile, some people have been denied to visit their parent who was on their deathbed because of the lockdowns. The psychological damage they are causing to people in Australia is unbefitting any free society. Australia and Canada never revolted against Britain. Australia was predominantly a penal colony from 1788-1850. Australia became independent only on March 3, 1986. The likelihood of Australia remaining intact as a nation is unlikely post-2032. This is part of the problem, for even Britain was never this oppressive, and as such, Australia never moved to revolution. They seem to be heading in that direction thanks to COVID concentration camps and selling out of Australia to the international interests pulling the strings.
COMMENT: Mr. Armstrong I just want to comment on the letter that one of your readers wrote about Erin O’Toole he could not have been more accurate everything he wrote was from the first to the last sentence spot on!👍 Unfortunately, I have the feeling Canada is doom the damage has been done, for many years now I have noticed the socioeconomic changes in the country Maxime Bernier could be a capable guy to lead the country but the media has done a good job in portraying him as a Zealot racist who doe not like immigrants and people at least here in Toronto who keep taking the BLUE PILLS given to them by Trudeau and his cronies would hesitate to even think about giving a vote for Bernier. I really wonder if there is still a place in this vast world where life can really return to normal where one can just be? Take care! GR
REPLY: I will run our models on Canada to take a closer look. I agree, our computer has never been wrong and I think we can see how the West is unraveling before our eyes. What comes after 2032 will be a whole new world order, but it is by no means going to be what Trudeau, Schwab, Gates, and Soros plan. I do hope they are successful in creating their objective of transhumanism so they can live forever. That would certainly give new meaning to life in prison when this is all said and done
COMMENT: Hi Mr. Armstrong. Hope you are well Sir. My name is [R]. I wrote you a few years ago. Writing you from Canada. Just a note on our election here. Erin O’Toole leader of the Progressive Conservative party, is just like Trudeau without the hair and charisma. Same policies. Loves the UN, radical environmentalism and mass immigration. He may be prone to less gaffes, but he is just as bought by the globalists, billionaires and the UN as Trudeau is. The Canadian electorate is not an informed or critically thinking electorate. A good chunk of the population still believes the mainstream media narrative. If they real thinkers, leftist parties would never win a seat. Replacing Trudeau with O’Toole makes no difference. One would stab you in the back and lie he said he did not. The other would stab you in the back and claim the other guy did it. O’Toole’s campaign manager is Walied Soliman former UN “citizen” of the year who has deep ties to the Muslim Brotherhood. O’Toole got rid of every real conservative since becoming leader and whipped his caucus to accept everything he stands for or leave the party. He has been silent on numerous injustices here including the burning down of almost 60 churches here nationwide. He rid his party of actual “conservatives”. There are only progressives left and those who love their pensions. O’Toole agrees with Trudeau more than he disagrees and he is supposed to be the Opposition. It is really the uni-party here vs. the PPC; all hard left wing authoritarian parties, including one leftist separatist party (the Bloc party in Quebec). All leftist parties would eventually force mandatory vaccinations for all here, as Trudeau has recently said as much. I am a founding member of the PPC from back in 2018 and I have written the leader Maxime Bernier many times and given him my best ideas. I do not even consider the PPC a “right wing” party. That is what the state media calls it. It is just a party of patriots who love Canada and want to see common sense policies that bring prosperity back to our nation. Canada has essentially been on the decline since the mid 1960’s when the socialists hijacked it for their globalist purposes. I am not sure if our vote counting system here has been compromised. But I know it is in our corrupt government’s sights. I wrote Elections Canada a couple of times and demanded that this election we need their staff and leaders to be extra diligent. However, I am not at unawares that it is easy to bribe people as a look at last year’s American election sure shows evidence for that. The PPC was banned from the national debates because Trudeau demanded a rule change and paid off the debate organization with ten million Canadian tax payer dollars. The corporate media either ignores the PPC, misrepresents them or slanders them. And big tech censors members. Even with all the adversity, the PPC is still growing in popularity. I understand in part the globalist power structure that wants to keep the Canadian population enslaved. However, having hope, even if it is a fool’s hope is still hope. The good thing about all the adversity is that the population is finally waking up. Thanks for your time and may the good Lord continue to bless you. Yours sincerely, RS