Tag Archives: Obama Domestic policy

Oct 13 2015

The Crisis isn’t new the cause is the same as always, politicians that actually think they can prevent them!


IMF Warns That We Have a New Crisis Coming

Re-Posted on October 13, 2015 by

 

Lagarde-Coming Crisis

QUESTION: Marty; You mentioned that you met with a board member of the IMF. It certainly seems you are having a much larger impact than you may realize. The IMF is now warning of a crash. Do you think you can help reverse the trend if given the chance?

Thank you for caring

BG

ANSWER: I absolutely could mitigate the crisis. There would be much I could stop in 30 days or less. But the trend is the trend. The system is collapsing. It is not because of some derivatives bubble. It is not because of fiat. This is because of the debt gone wild and governments run by politicians who are clueless and assume that they can bully their way through this by writing laws. LaGarde is now warning that we have not fixed the problems from the last crisis and we have another one brewing.

Yet the IMF is focused on the rising risk of a global financial crash because of a slowdown in China, which undermines the stability of highly indebted emerging economies. The IMF is not saying much other than there are three crisis epic centers within the emerging market crisis including China, Brazil, Turkey, and Malaysia. This could shave 3% off of global GDP, which would devastate Europe in particular. Then there is the chaos of debt in Europe because of the failed euro, but that is a political problem and means politicians need to admit error. The IMF has warned about the battered global markets that have experienced a sharp decline in liquidity since 2007 and are more likely to transmit shocks rather than cushion the blow.

These three areas that the IMF is warning about are the symptoms rather than the causes. The IMF has not identified the root cause of this chaos and that is all emerging from the fact that governments borrow, owe debt, and in turn raise taxes, which lowers growth and reducing living standards. Wait for the pension crisis to hit. A further decline will undermine the European banks and will cause a real meltdown.

Oct 13 2015

This is insane and pure Keynesian economics since Keynes didn’t believe in Savings which you need to have Investment


Belgium to Introduce 33% Tax on Investments

Re-Posted on October 13, 2015 by

Handelaar+beursvloerfin+koersen

The Belgium government wants to introduce what they are calling the “speculation tax” that will impose a 33% tax on investments liquidated within 6 months. They fail to grasp that this will only send capital elsewhere. Politicians never understand that they are the source of all evil.

Oct 13 2015

The Continuation of Merkel’s policies will destroy Germany!


Merkel’s Dream

Re-Posted on October 13, 2015 by

Merkel

QUESTION: What is going through Merkel’s mind with this immigration? Is she just insane? What is happening here in Germany is unbelievable.

HS

ANSWER:  Angela Merkel is pursuing a policy of open borders. She assumes she will revitalize the German economy to shift from export-dominated to domestic consumption. This is clearly a major radical change in political-economic policy that is purely another fictional fantasy like the EU ending wars by creating one unified government. The immigrants, whom she thinks will boost the German economy, will cause it to implode. Consequently, Merkel is following the elitist views of the IMF. This is all in line with the trade deal. This is a high-risk strategy since what she is doing took the U.S. more than a generation to accomplish. She will never see what she thinks will happen in her lifetime.

Oct 12 2015

Civil Unrest is on the rise World Wide as the Citizens rebel against Totalitarian Rule!


Belgium Riots Reach up to 100,000 People Against Austerity

Posted on October 12, 2015 by

Belgium 10-8-2015

Major protests have broken out in Belgium over AUSTERITY, according to Le Monde. According to the police, up to 100,000 people demonstrated in the center of the capital against the AUSTERITY measures imposed by Prime Minister Charles Michel. The protests in Europe will get much worse on the other side of 2015.75.

Oct 9 2015

Government and corrupt politicians ALWAYS debase a countries Money!


Is Quantitative Easing the Same as Printing Money?

Posted on October 9, 2015 by

Quantitative Easing

QUESTION: Mr. Armstrong;

Thank you for coming to Athens. After the presentation, there were so many questions that the moderator did not have time for. You answered some for the crowd afterwards that I had never heard anyone ever explain. You said Quantitative Easing was not money printing nor did it really increase the money supply. You also said to the crowd that fiat is not paper money, but anything declared by government including pegs.

Could you elaborate on those statements.

Thank you for your enlightenment.

GP

ANSWER: Quantitative easing is not responsible for increasing the money supply or printing money. It is a swap of bonds for cash so they are not outright printing money. It is a swap transaction. This combined with the idea that paper money is fiat and precious metals are tangible are all seriously wrong. Fiat is the attempt by government to decree the value of money. This is no different from a peg that broke, such as the Swiss/euro peg, or the Bretton Woods attempt to fix gold in terms of dollars. ANY attempt to flat line the value of money by decree is fiat, regardless of whether the instrument is paper or seashells.

This idea that Quantitative Easing is printing money is very pre-1971 thinking and is a throwback to Bretton Woods. Such an assumption focuses on the differentiation between debt and money or cash. Pre-1971, you could not borrow against government debt so there was a clear difference between debt and money. The theory that it was less inflationary to borrow than print made sense only when there was a real difference between debt and cash or money.

Today, debt and cash are the same. If you trade futures, you deposit cash and to earn some interest you buy TBills, which are deposited and used as collateral. The distinction between debt and cash has vanished. This means that Quantitative Easing does NOT actually stimulate the economy. The giant assumption was that the cash would be spent within the system. But the banks complained and the Fed created the EXCESS RESERVE window which has about $2.5 trillion on which the Fed pays 0.25% interest. They only swapped bonds for the right to deposit cash at 0.25%, so where was the stimulus? Nothing was stimulated and there was no inflation since there was no actual increase in private spending.

These theories are very primitive to say the least. Nobody looks at them closely or follows the money to see if they are doing anything what the theory pretends should happen. The ECB bought 25% of the bonds and inflation still turned negative. They have stated that they will increase that to 33%. They never review their actions when something fails to work. All government ever does is move further in the same direction because government employees will NEVER admit a mistake.

This is akin to physicians in medieval times who assumed that bleeding a person would heal them because an illness was seen as if it were a poison in the bloodstream. If the patient died, they never assumed the death to be the result of taking too much blood. Instead, they would state that they did not bleed the patient soon enough and that caused their death.

Welcome to the plague of thinking among humankind. Why learn new ways as long as you can just accelerate the current failed process? It’s safer because you do not have to admit mistakes that way. This is why we must crash and burn. They will never look at their actions and are incapable of admitting an era. Anyone who challenges the status quo becomes the “fringe” element that should be ignored.

Oct 8 2015

This is not Migration it is Invation


Slovakia Will Exit the EU Over the Immigration Issue

Posted on October 8, 2015 by

Slovakia-Robert-Fico

The Slovak Prime Minister Robert Fico has stated bluntly that the EU must stop the influx migration of refugees or Slovakia will exit the EU. The refugee issue is tearing Europe apart. Latvia refused to accept the number allotted to them by Brussels.t is Invation

Oct 8 2015

The debt goes up and up because we spend more than we take in so either spend less or tax more!


Central Banks Selling U.S. Treasuries As Fight Over Debt Looms

Re-Posted on October 7, 2015 by

T-Bonds

Central banks have been dumping U.S. Treasury bonds because of the debt ceiling problem. The Tea Party will shut down funding if they have their way. This situation illustrates the entire problem. The debt ceiling only ever rises. We will see a rise in taxation and this will help to collapse the U.S. economy and thus the world. These people we call “representatives” only represent themselves and they have no solution to this Sovereign Debt Crisis. It certainly looks like we will be seeing that blast to new highs next year. So hold on tight, this may even hurt a bit.

Oct 7 2015

The perfect economic storm; a collapsing German economy and bringing in hundreds of thousands of refugees


German Industrial Production Collapses by 4%

Re-Posted on October 7, 2015 by

GermanIndustrialProduction

The other side of 2015.75 is not going to be pretty. The first news on the German industrial production report dropped 4% from July to August, versus an expected decline of 1.5%. This is a very alarming huge month-on-month drop, the largest in the past five years. This now brings a shocking reality since the month saw a 2.8% drop on the same month last year. Everything is turning down hard from factory orders onward and now we have the VW scandal. Even the resale values on Volkswagen’s diesel cars in the U.S. have collapsed dropping 13% according to the Kelly Blue Book.

Germany is the core of the European economy. Our models are warning we are looking at a very steep economic decline and this contagion will inflect the USA now with the turn on 2015.75. This is no time for Germany to get caught up in refugees since the weather in Germany will be colder this year than before and these people are not suited to cold weather.

Oct 6 2015

We are in a very unstable period with fools in the White House that don’t have a clue that they are taking us toward a confrontation with Russia


Gold & the Dow – Looking Ahead

Posted on October 6, 2015 by

GCNYNF-D 10-6-2015 DJIND-D 10-6-2015

QUESTION: Mr. Armstrong; So many people have tried to copy what you do and in the process expose themselves as having nothing original to offer. They pretend to have models that pinpoint dates like October 7th and claim they are using the K-Wave to cover up their theft. Still they fail to understand what you have been forecasting and that I find really interesting.

Your revelation of gold and the stock market and how they often trade together was amazing. So if I am correct, gold is indeed a commodity and will rise against a currency along with other tangible assets including stocks because it is really a contest between money and assets. I get it. You cannot have gold as money act as a store of value and make money on everything else since any rise in assets including wages means money must decline in value. That is so basic, I feel really stupid for listening to these people for so long.

So gold will rise because it is not money and with the stock market. Correct?

EF

ANSWER: Yes. This is the peak in government rather than the private sector market be it stocks or commodities. Gold is rising right now along with the Dow. The oscillators are bullish on both at the same time. These market are not trading opposite as the promoters chant. This is indeed demonstrating the alignment that must become dominant moving ahead. These markets will blast off only when we see the overall CONFIDENCE in government collapse. It is not your confidence, but that of the general public.

The scary thing is the Russia bombing in Syria began precisely the day of the model – September 30th. This means we also have the war cycle to contend with and governments NEED war during depressions. We are escalating dangerously toward world war. The bureaucrats in Washington who have decided to oppose Russia, will never now admit that they were WRONG. I am sorry, but Putin is taking steps that are vital in the Middle East because the war mongering bureaucrats in Washington will NEVER admit error. This is a very dangerous position they are creating and they should be stopped, but unfortunately, we have people like John McCain who are out of their minds and way too old to comprehend you cannot win a war as you did in the 1950s. McCain never encountered a country he would not advocating invasion if they dared to disagree with him.

 

GCFOR-W 10-6-1025 DJFOR-W 10-6-2015

In gold, there is nothing to get excited about until you see a weekly closing above 1210. In the Dow, that is 17762. Initial resistance in gold stands at 1188 whereas in the Dow it is 17340. We still see the markets focused on the first week of November. It is interesting that the debt ceiling was kicked down the road to December, but the Treasury warns they will run out of money by early November. So interesting times still await us.

Oct 6 2015

Bird’s-eye view of ‘Russian cluster bomb strikes ISIL in Syria’


We used “cluster” bombs in Nam and they safe my ass once. But those back then were antipersonnel munitions ; these did not look that that the strike look more like larger rounds for trucks and tanks. The difference e is the antipersonnel are more like hand grenades and they did not all go off when used which left life ammunition on the ground. that could kill anyone, and that was the objection.