There are only a few more years left for the EU.


Schengen Agreement & the Fall of Europe

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QUESTION: Mr. Armstrong, You have been nominated for the FX analyst of the year in 2016 again. True, your calls on the Euro and the Swiss peg were amazing. But what has fascinated me even more is you also forecast that the Schengen Agreement would come to an end before the refugee crisis. Can you elaborate on how these forecasts are even possible for you obviously do what no one else has ever been able to accomplish?

Thank you for a eye-opening blog.

FJ

ANSWER: Everything is connected. Nothing takes place in some isolated vacuum. Hopefully, people will open their eyes and see what I see; when they do, it will change how the world is managed. Just the other day, a die-hard Democrat tried to argue that Trump would start World War III and that Hillary has more experience. I said her experience was limited to working at the State Department, hiding her own emails, and setting up a Canadian entity that sold foreign influence to the highest bidder who then deposited the money in her “charity”. Come on. What experience? Then I mentioned how people made the very same argument about Ronald Reagan, saying that he too was a tough “hawk” who would also start World War III. He continued to bring down the Berlin Wall.

When we wake up and realize that the system cannot be altered by one person, then perhaps we will start to investigate the truth. As far as the EU is concerned, it is a total disaster. Brussels is fighting Poland, Hungary has fallen further into an abyss, and passports are being checked again, even between Denmark and Sweden, because now everyone is afraid after Germany allowed rapists and terrorists in and tried to cover it up. In short, the EU is functionally moving into a supernova. Brussels remains in a state of denial and tries to force the EU upon everyone while denying any democratic process in order to save the jobs of the Eurocrats.

dominoesEverything is connected. The Schengen Agreement is just one domino. The Schengen Agreement was wearing down because of economic differences. Let’s be honest here. The ONLY country to have benefited from the creation of the euro was Germany. Why? It eliminated the FX risk for German manufacturers. Thus, Germany was able to expand its trade within Europe. The rest of Europe had to convert their debts to the euro and they doubled. The failed structure of the euro placed tremendous pressure upon the entire world economy. The collapse of the Schengen Agreement was inevitable and not exclusively caused by the refugee crisis.

Euro Bank Notes

So as Mark Twain said, “The reports of my death have been greatly exaggerated.” Keep in mind the euro still has a few years left. However, its days are clearly numbered, as we know it today.

More signs the the EU is likely to fail soon!


French Prime Minister: “The European Project Can Fail…”

Valls Manuel Prime Minister

The French Prime Minister, Manuel Valls, said at DAVOS: “The European project can fail if we cannot resolve the security and the issue of refugees.” The idea behind the euro was that a single currency would expand the European economy and allow for free movement. That dream is coming to an end for they see that closing the borders will close trade and that reverses everything.

The two worst mistakes have been (1) the failure to consolidate member debt, and (2) accepting refugees by the millions from a region that is hostile. For intelligent people, they have demonstrated that book smart is still dumb.

The End of the EU Part Three!


Europe Moving Into Meltdown?

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QUESTION: Marty, now the OECD is predicting a financial crash worse than the 2007-2009 event in Europe because they say there is over €1 trillion in bad loans that cannot be collected. They seem to be also changing their opinion to fit your model. Were they there in Berlin?

ANSWER: We cannot comment on if the OECD is following our model or who is attending a conference. They are the most widely attended and many just want to know where the computer stands.

We see a massive banking crisis. The European banks are in deep trouble. Deutsche Bank posted a shocking €6.7 billion euro loss with its shares falling 10% in a day. HSBC bought Republic National Bank in New York for a bit more than that. Barclay’s is pulling out of all emerging markets cutting 1,000+ jobs.

The collapse in commodities will reek havoc on all emerging market countries, but there is one economy which nobody pays attention to closely. That is Germany. Yes it is the largest economy and main supporter of the Euro. They need open borders and the Euro to maintain their economy which is EXPORT driven. China is advancing more rapidly than Germany and has focused on trying to develop its internal economy. Spain was the richest nation in Europe with all the gold coming in from America. But they failed to develop their internal economy and collapsed. Germany is declining. It cannot be sustain with open borders and the Euro because the rest of Europe is in serious decline. The refugee crisis is a nightmare and now Italy demands taxpayer money to bailout banks fearful that a bail-in will cause a revolution.

Merkel was against allowing in refugees previously, but then changed her position to combat her poor view for the treatment of Greece and then the brilliant idea of bringing in cheap labor again to help Germany. This entire refugee crisis is far beyond control and now the elites are beside themselves for the manipulations.

German Federal Minister Sigmar Gabriel, who is also head of the SPD, warned at the Economic Forum in Davos of a return to border fences and controls. That would be an economic disaster and would be rising unemployment. This is the German EXPORT model – that and the Euro. But it is coming and with it, the further decline of Germany. This will only fuel the dollar rally when Europeans realize that the break-up of the Euro may lead to Deutsche marks, but will they be better? Now even Soros is saying the collapse of the Euro is inevitable. So everyone is now joining the party; a bit late, but as they say, better late than never.

IBEUUS-Y TEK TO 2020 1-22-2016

So welcome to the other side of 2015.75. We have a long way to go down into 2020. Here are only the technical projections. They also warn just taking out the 89 level produces a free-fall. This is unfortunately looking more and more like a total disaster of political incompetence and complete self-interest mismanagement.

Einsteing-thinking

The career politicians are incapable of saving Europe and instead are the very people pushing it over the edge. All they are focused on is saving their own ass in Brussels with their pensions. Jean-Claude Juncker has done such a great job destroying Europe, he was given a retroactive pay increase to more than €32,000 PER MONTH. Socrates would do a better job and we would charge based upon performance.

Can a computer be president? Hm. Way of the future?

The End of the EU Part Two!


The Final Straw for Britain?

Migrants

The Telegraph reported on a shocking new court ruling that may become the final straw that sends the British out of the EU. This ruling has begun the decline into chaos within Britain’s asylum system. This court ruling held that four Syrian migrants should immediately be brought to Britain from what is known as “The Jungle” camp in Calais because they have a right to a family life.

This ruling has very profound implications for it upholds an idea that we are really citizens of the world, and therefore, have a right to live where we want. The borders are maintained politically and through taxes. If we truly recognize human rights in this context, then the power of government should decline.

The End of the EU Part One.


Greek Rising Civil Unrest

Leaders-Merkel

Alexis Tsipras has to implement pension reform in order to get more loans from Brussels. He is betraying everything the Greek people voted for and is pushing Greece over the edge. Brussels is demanding that the Greeks pay for the shenanigans of Goldman Sachs whom helped Greek politicians cook the books.

Greek Protest 1-21-2016

Protests against the pension cuts and tax increases in Greece are spreading throughout the country. On Thursday, Greek farmers blocked major roads with their tractors. Among other things, the traffic was hampered on the axis linking western Greece with Turkey. The sailors continued a 48-hour strike. Most ferries remained in port and the rail transport was hampered by work stoppages of railwaymen.

Mother-Merkel

The ONLY solution is to exit the euro. Brussels is totally insane and their actions are designed only to maintain their own jobs. Merkel created this entire refugee mess by trying to show she was human while denying anything to Greece, despite Greece forgiving the German debt after World War II.

It is ironic that Merkel refused to bend for the Greeks, yet she let in hordes of “refugees” who are tearing Europe apart and have resulted in passports checks between member states.

Worldwide people are seeing their governments do crazy things that make no since and are hurting them; soon all “TRUST” will be gone and chaos will reign!


Davos – The Collapse in TRUST

DAvos

The most telling sign that we are headed into a real political-economic shit storm is the fact that “TRUST” is collapsing on all sides. Every chance Obama gets he wants to disarm Americans. Why? This is simply because government is in trouble and they no longer “trust” the people. Likewise, the “rich” are starting to withdraw their money from investment that would create jobs because they too are worried about the rising discontent among the majority of the population. Then we have the collapse in
trust” among the people of anyone who is a career politician. So welcome to the theme of Davos – the collapse in “trust”.

More problems in Britain!


Cameron – A Morally Corrupt Politician

EU-Cameron

 

Cameron is just an example of how morally corrupt politicians are no matter what country we talk about. Cameron promised a referendum on exiting the EU because he never in his wildest imagination contemplated that the British would leave the EU. So what does a corrupt politician do when he fears losing? He rigs the game. Cameron is now looking to postpone the referendum because the British people want out as a majority. The sex assault by the refugees is just the tip of it. With another 3 million coming in 2016, Merkel is destroying the very fabric of Europe. Cameron is trying to postpone any referendum until 2017 and will hope something will happen so he can just forget about the whole thing.

Withe bankers also being corrupt, they have tried to scare the British people saying if the Brits exit the EU, nobody would do business with them. Toyota, on the other hand, came out and stated bluntly the truth – they will of course continue to work with the UK. The British banks are in league with Cameron and are full of SHIT. This is the same scare-tactic the banks played on the Scottish exit and we saw similar nonsense in Greece telling the people they would “starve” because most food is imported from Europe.

Cae-PontifMax

Cameron has revealed his untrustworthy character trying to postpone any exit vote. This is exactly the same corruption which sparked the civil war in Rome and compelled Julius Caesar to cross the Rubicon. Why? Because the politicians would manipulate the calendar to postpone elections they know they would lose. The took advantage of the fact that the high priest, Pontifex Maximus, would arbitrarily adjust the calendar by inserting the leap days at his discretion. Solution? Bribe the high priest. The Senate fled and Caesar assumed the position of Pontifex Maximus and created to fixed Julian Calendar to end the arbitrary manipulation by priests thereafter. Cameron is following the same pattern – postpone a vote he knows he will lose.

corbyn Jeremy

God help Britain. Their choice is between a communist who thinks putting a maximum wage of people solves something, or Cameron who sees himself as a European before being British.

Major Changes are Coming in the EU!


French Politics are Turning Ahead of 2017

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Comment: [Here is] a poll that may be of some interest to you. It says that the National Front is now enjoying a massive support among police and armed forces in France. It reaches now 51.5%. Back in 2012, it was 30%.

The comments of the “insiders” show a growing concern within the ruling elite. Basically, they say that because of terrorism, the socialist government is now praising and supporting the same security forces who actually are shifting to their main political opponent: Marine Le Pen. Even worse: they’re giving them more and more power and credits to achieve the fight against the islamist threat.

Here is a common analysis shared by the hardcore socialist within the state, behind closed doors: Hollande is following the path of Guy Mollet, the socialist Prime minister who gave up the government powers to the French Army back in 1956 when the Algerian conflict was expanding. It ended in 1958 with De Gaulle successful coup d’état.

De Gaulle actually was supported by the army and generals had prepared an airbone operation on Paris back then. If the civilian government were to refuse to let De Gaulle take over, the army would have used force to achieve it. The then government gave up and De Gaulle took office quietly.

So basically, what is remaining of the “Left” is panicking as they think the Police and Armed Forces would support a National Front victory. Which could indeed happen in 2017, 2017 will be 224 years after 1793, the year of the “Reign of Terror” organised by the republican government. At the moment, all powers were given the acting police minister (Committe of Public Safety). They had basically the ability to arrest anyone without charge and many were put under house arrest (about 500 000). THis lasted until 1794 with Robespierre fall.

Interestingly enough, in 1958, De Gaulle come back was officially launched by the army and the police. They called themselves “Committe of Public Safety”. The idea was to achieve victory in Algeria. But De Gaulle was a cunning politician and gave up quickly :

I don’t know if your computers foresee a National Front victory in 2017, or an apparent victory followed by a quick collapse of Le Pen government. But it seems that, if necessary, the Armed Forces and the Police have made their choice in case of a “civil war.

Regards.

Louis Philippe I (1830 to 1848)
Reply: What is shaping up is very similar to the first presidential election in France in 1848. This was the sovereign debt crisis that first hit the USA at the state level when the first and only president of the Second Republic was elected in a surprise election that took place on December 10, 1848. The French constitution at that time only included a provision for one round of voting, and in the absence of a majority for any candidate, the National Assembly would decide the next president.
Louis-Eugène Cavaignac was seen to be the guaranteed winner. The establishment political elites were backing Cavaignac and it was presumed that they would install him as president even if he did not win a majority.
1848 Second Republic
However, Louis-Napoléon Bonaparte won the election to everyone’s shock, taking 74% of the vote. Bonaparte was NOT a career politician so the elites explained his victory as if it were a fraud. They said he presented himself as “all things to some men.” However, he was the best of two bad choices between the Monarchist right supporters and the Legitimist/Orléanist royal households. Bonaparte was seen as a man who would restore order and put an end to the political instability that gripped France in the aftermath of the overthrown French monarchy in February 1848.
Bonaparte won a huge vote, which nobody in France has ever again matched. He is generally seen as the person who prevented a communist revolution, which was argued for by Marx’s friend Friedrich Engels back then. Bonaparte swept the votes from the non-politicized rural masses who saw the communist supporters in the cities as eager to take their land. The glory that had been Napoleon contributed greatly outside of the cities where the name of Bonaparte meant something.
1852 Republic Bonaparte
Of course, Louis-Napoléon Bonaparte staged his own French coup d’état on December 5, 1851, when he refused to leave office. This ended in the successful dissolution of the French National Assembly and re-established the French empire in 1852 as a republic. Louis-Napoléon implemented his popular reform programs that included the restoration of the right to vote (universal suffrage) that the National Assembly abolished when they tried to retain their own power, much like Brussels today where there is no right to vote for any member of the Troika.
1864 Napoleon III
Louis-Napoléon’s political reforms were popularly endorsed by constitutional referendum. He then reclaimed the throne of France as emperor under the name Napoleon III (1852-1870).coming in the EU

Some say the is a culture difference between The west abd the rest of the world in regards to women; but that’s not really true the difference is between the rest of the world and Islam.


Germany’s Refugee Crisis is Starting to Explode

Cologne Rapes 1-1-2016

The Arab sexual assault in Cologne, Germany, occurred on New Year’s Eve when hundreds of male refugees robbed and carried out sexual assaults against over 100 girls. This illustrates one of the huge problems with allowing such a mass migration of a starkly different culture.

Koln-mob

But what has become the BIG NEWS, is the cover-up by the major news in Germany who did not publish the story for three days. On January 6th, Denmark began “temporary” passport checks on the German-Danish border. The attempt to cover-up the Cologne attacks with one-third being sexual, has sent a shock-wave in Europe behind the headlines. The temporary passport checks in Denmark is a clear response to Germany’s unprecedented acceptance of refugees who a portion are not quite ready for Western living. The men involved were said to be Syrian.

merkel-time-person-of-year- TIMEThe German government and the press have tried to hide the issue because they are not prepared to admit this has been a huge mistake. Welcoming in huge numbers of boys from a culture which denigrates women is a clash of cultures which will not be resolved. The European Commission itself now estimates that another 3 million will enter Europe and many of them are not educated even in their own Arab language and are unemployable. This is a huge disaster that will tear Europe apart and will only get far worse. Because Merkel made Time Magazine person of the year for this very issue of allowing the Muslims to enter. This was to soften her hardline approach to the debt crisis in Greece created by the EU’s failed design of the Euro and Goldman Sach’s manipulation of their debt. There is NO POSSIBLE WAY Merkel can reverse this policy for politicians will never admit such mistakes. She has doomed Europe and nobody will stand up and tell the truth.

In many parts of the world, Western women are pictured as sex-crazed creatures. Since Arab women are supposed to be modest, seeing a Western woman dressed provocatively can be seen as an invitation based upon their culture.

In some Arab countries, Western women can be jailed for wearing a two-piece bathing suit or for simply walking down the street without an escort. In some cities in India, women staying alone in hotels are placed on a women’s floor where guards are placed at night. You cannot easily mix cultures with such diverse social views without creating new risks.

The best-laid plans of mice and men oft go awry!


War Games Always Go Bad

1952-CIA Document

1952 CIA Document to Create Nationalism in Afghanistan

QUESTION: Mr. Armstrong; I read with great interest your insight into another motive behind the illogical attempt to overthrow Syria with respect to Genie. Do you agree that ISIS has been initiated by the CIA?

ANSWER: America’s ambitions to topple governments in the Middle East goes back to at least 1952. According to a Central Intelligence Bulletin during Harry Truman’s administration, dated December 4, 1952, the CIA had sought to arm the Uzbek tribes of Afghanistan in order to instigate a nationalism movement that they hoped would spill over across the border into the Uzbek Soviet Socialist Republic, and thereby create a Muslim revolution inside the USSR.

These types of military strategies have led to a huge mess. They have  NEVER  succeeded and have always led to war in far different scenarios than those in government ever dream about. But the USA is by no means alone in this. Saudi Arabia has been also a very active partner in the game.