Meloni Set to Abolish Italy’s Welfare State


Armstrong Economics Blog/Italy Re-Posted Nov 25, 2022 by Martin Armstrong

Italy’s new PM Giorgia Meloni revealed her first economic initiatives with a budget of 21 billion euros. The Italian government will no longer provide free handouts to those who simply refuse to work. This should not be controversial.

For starters, anyone eligible for welfare must actually reside in Italy. Those capable of working will have eight months to find employment before their free paycheck runs out. Alternatively, if someone refuses a job, they will be excluded from receiving welfare. The 5-Star’s citizens’ wage will be abolished by next year as the system has been abused by many who simply do not want to work. They are reviewing the pension system as well, but it’s too late to save the pension funds.

Italy’s first female PM is also encouraging couples to start families amid a birth rate crisis. Women may take a sixth month of maternity leave and still receive 80% of their salary. Meloni cut taxes on goods for newborns and feminine hygiene. Couples will receive a 50% increase in the “baby bonus,” and families with over three children will receive more incentives. Italy needs future taxpayers.

Everyone cheered when America appointed its first female vice president, but Kamala Harris has done nothing for women who still pay the pink tax and do not have access to maternity leave. It is astonishing how controversial this move has become with the papers calling Meloni a Fascist dictator for preventing working taxpayers from paying for those unemployed by choice.

Australians Safe from Fifth Jab


Armstrong Economics Blog/Australia & Oceania Re-Posted Nov 23, 2022 by Martin Armstrong

After taking four vaccines and failing to curb the transmission of the coronavirus, Australian health officials will not recommend a third booster shot. Health Minister Mark Butler said the Australian Technical Advisory Group on Immunization (ATAGI) admitted that a fifth dosage of the mRNA vaccine would have “minimal” effect toward reduction efforts.

Australia once had some of the strictest COVID restrictions in the world, and this is huge news. ATAGI member Allen Cheng, Ph.D., mentioned that the risk of myocarditis in younger people is troubling. “Vaccinations are beneficial and protective even for younger people but the more doses you get the less benefit you derive from them and then we start to worry about causing side effects,” Cheng said.

Butler said that new booster recommendations will be made in early 2023. Australians are not off the hook yet. Everyone over the age of 30 has been eligible for a second booster since July. The government still recommends staying “up to date” on vaccinations despite that standard constantly changing.

Ukraine Supporters & Denial of History


Armstrong Economics Blog/Ukraine Re-Posted Nov 22, 2022 by Martin Armstrong

UN Agreement Ukraine 1994

I apologize, the proposal began in 1991 for Russia to join NATO. But the final agreement with respect to Ukraine’s nukes was not in Belgrade but in Budapest. History has been rewritten to support the war against Russia for climate change. I have never seen any account of history that reports NATO invited Russia to join in 1991. Some people are so pro-Ukrainian that it is insane. They are really cheering for World War III and no doubt believed in COVID, Weapons of Mass Destruction in Iraq, and Hillary’s RussiaGate. They refuse to open their eyes to see that they have been played for fools as always to justify war.

So cheer all you want. This war will NOT be confined to just Ukraine you can watch it on TV as if it is some video game. Ukraine was the 3rd largest nuclear power. That was a fact. The US paid them to surrender their nukes to Russia and they in turn provided nuclear power rods for electricity. James Baker warned about loose nukes and Ukraine was one of the three republics that ended up with nukes. The difference was, Ukraine wanted to use them on Moscow. All my sources back then were deeply concerned that Ukraine just could not ever be trusted. It was Ukraine that kept the cold war going. Zelensky has supported the Ukrainian Neo-Nazis who have even bragged that they feed the bones of Russian-speaking children to their pet wolves. I have fact-checked that and it is a true statement made to the press.

My dealing with Ukrainian governments has always been: Just show me the money. Ukraine is a corrupt black hole. History will show who is on the right and wrong side if any side survives.

Good luck with your hatred. Remember, there is a funny thing about what we call karma. What you wish on someone else may be what becomes your own undoing. So don’t worry. Your hatred of Russia will end that nation, but it will be a Phryic War and nobody will survive. So cheer the loss of your future. You will get what you deserve in spades.

The Polish Association of Memory of Victims of Crimes of Ukrainian Nationalists documented 135 methods of torture and murder practiced by Ukrainian Nazis. Poland officially called the Ukrainian actions genocide. The Ukrainians have been protected by the CIA for decades ONLY because they hated Russians. They continue to protect the Ukrainian Nazis only because they are waging war against Russia.

The Ukrainians were unprecedented in their war crimes during WWII and the sheer outright cruelty one would expect only exists in some B-Rated horror movies. This included:

  • Running children through with stakes
  • Cutting a person’s throat and pulling their tongue out through the hole
  • Sawing a person’s torso in half with a carpenter’s saw
  • Cutting open the belly of a woman in an advanced stage of pregnancy, removing the fetus, and replacing it with a live cat, before sewing up her abdomen.
  • Cutting open a pregnant women’s abdomen and pouring in broken glass
  • Nailing a small child to a door.

Ignore all the history you want to keep fanning the flames of war. When you lose everything, remember – you asked for this result.

The Crypto Contagion – More Lows into 2023


Armstrong Blog/Cryptocurrency

Posted Nov 15, 2022 by Martin Armstrong

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This FTX scandal is the death nil for cryptos. At first, I assumed that perhaps they lost a ton of money because of the implosion of the bond market. But this was not the case. In fact, this is perhaps the worst I have ever seen and it comes from trading losses from kids that had no experience whatsoever with regard to trading. They obviously did not even understand fiduciary responsibility.  MF Global was taking client money to trade in London and got the market wrong. Bernie Madoff remains a mystery wrapped up in a political enigma.  From 1991 to 2008, Bernie and Ruth Madoff contributed only about $240,000 to federal candidates, parties, and committees. Madoff was not trying to buy influence as was taking place at FTX. Maxwell mysteriously died in 1991 when his trading scandal surfaced, but he was also secretly backing the communist coup against Gorbachev in 1991.

Then there were the accounting scandals of ENRON and Worldcom whereby to hide their losses and failures, they engaged in accounting fraud to cover up the true story. But there were not using other people’s money to trade, they were hiding their bad performance from shareholders hoping to make a comeback.

That is the common denominator. I have been called into many crises. The one thing that always runs through the problem is the refusal to admit a mistake. That seems to lead to losing trades continuing to be held in hope of the infamous COMEBACK. The motive seems to be the same and many of the problems I have been called into to help solve have been in corporations where some strategy went wrong. In these cases of ENRON, Worldcom that were allowed to fester. The trading scandals are perpetuated in the hope that the next trade will win it all back.

Crypto contagion instigated by FTX, has only gotten more interesting since Sam Bankman-Fried sent a series of cryptic tweets spelling out the words “What HAPPENED” after his wealth wipeout. After the collapse of FTX, we are looking at a collapse in confidence in all digital assets.

With this degree of collapse in even Bitcoin, there will be more bankruptcies lining up. Inexperience dominates this young field and facing a stiff recession ahead going into 2023, this meltdown is not over yet. The low in Bitcoin from 2021 high is not likely before 2023. Thus – as they say – it ain’t over until the fat lady sings (a reference to Opera).

Too Poor to Continue Living with Dignity – Canadian Eugenics


Armstrong Economics Blog/Canada Re-Posted Nov 15, 2022 by Martin Armstrong

Canada is not hiding its depopulation and eugenics efforts. The Trudeau Administration recently expanded the MAID (Medical Assistance in Dying) program to include those with treatable illnesses or those suffering from poverty. Almost anyone, including children, can request a medically assisted death in Canada with a quick turnaround. Families are unable to protect their loved ones from the law. The MAID program was originally designed for those living in unbearable chronic pain and/or a terminal illness. Poverty or temporary hardship is now considered a terminal illness for which there is no cure besides death.

The Canadian health system is coercing people at their lowest point to end their lives. Canada could prioritize health care and expand assistance to disabled Canadians who are unable to work. Instead, they are clearly discriminating against those suffering from poverty or mental health issues, and doctors are no longer required to treat their patients. The system is encouraging suicide over treatment as it is the most cost-effective option. There is no guarantee those murdered while under medical supervision are capable of making an informed decision; the law will be used to depopulate the undesirables.

The Netherlands and Belgium, where assisted suicide is offered on a medical basis, forbid doctors from suggesting the method unless all other options are exhausted. Canadian doctors are encouraged to offer the option to those deemed too poor to live. “Euthanasia” will not appear on the victim’s death certificate, depending on the province in which they were murdered by their government. In 2021, the number of those requesting MAID in the country rose by over 32% from the year prior, and that number will rise. As the economy turns down, those “too poor to continue living with dignity” will feel obligated to choose a permanent solution to a temporary problem.

“[MAID is] probably the biggest existential threat to disabled people since the Nazis’ program in Germany in the 1930s,” stated Tim Stainton, director of the Canadian Institute for Inclusion and Citizenship at the University of British Columbia. Pope Francis condemned the treatment of the elderly, mentally ill, and poor in Canada. “Patients who, in place of affection, are administered death,” the pope warned.

Adolf Hitler killed off “useless eaters” who did not contribute to his ideal version of society. They were forcibly taken to camps or executed on the spot. Canada is attempting to murder “useless eaters” under the guise of health care and compassion. The general public is turning a blind eye to what could become a genocide of the poor.

FTX & Crypto-Implosion


Armstrong Economics Blog/Cryptocurrency Re-Posted Nov 14, 2022 by Martin Armstrong

The collapse of the FTX Exchange is pretty straightforward insofar as this is the same lesson that constantly repeats in finance time and time again. Basically, FTX lent US$10bn of client funds to their trading arm Alameda, which used it for leveraged their own crypto speculation because the crypto market has been collapsing. Typically, someone like Sam Bankman-Fried had his whole life wrapped up in this venture. Lacking financial controls operating from the Bahamas, moving the money from client funds to his trading arm Alameda was possible. Historically, someone in this position sees his world collapsing but is not prepared to see that unfold for it requires admitting that he was wrong on crypto, to begin with. Consequently, such a person is not trying to actually rob clients’ money, they most likely see it as a temporary loan to save the company and the market will bounce back – or so they believe.

Our computer had picked the high in Bitcoin perfectly and has been projecting the collapse all along the way. But crypto has become a religion and in so doing it clouds the judgment of people who want to believe the story. Alameda blew up in a crypto meltdown because it did not want to accept that the crypto boom was over. The loan he probably thought would be temporary, vanished in the implosion. At first, I would have assumed they had actually invested the money and lost it on the bond market collapse. But that was perhaps too traditional. Here, it appears they were trying to defend their own cryptocurrency and trying to buy the low that kept moving lower. It appears he was allegedly simply using clients’ funds to trade keeping gains for his firm and the clients now suffer the risk.

It appears that they allegedly were trying to defend the crypto market and did not understand that the boom was over. The loans could not then be repaid. As crypto was crashing, some people needed to cash out. The attempt to pull out US$5bn from FTX exposed the fact that the cash was all gone. This is not so unusual. It has happened before. This time, the prosecutors are clamoring to be the one to charge him so they can become famous over his dead body.

FTX was a partner with Klaus Schwab’s World Economic Forum (WEF). Of course, the WEF has suddenly removed the page and is desperately trying to hide their involvement with FTX and Sam Bankman-Fried. Naturally, eliminating paper currency has been the goal of the WEF because they support the end of not just capitalism, but also democracy. Schwab’s push has been his Great Reset and to control society to impose his economic philosophy inspired by Marx and Lenin.

Corsine-2

This is by no means the first violation of fiduciary responsibility that presents a custodial risk. MF Global Holdings Ltd., you might recall, was a firm formerly run by New Jersey ex-Gov. Jon Corzine was accused in 2013 of unlawfully using customer money to meet his firm’s funding needs. When MF Global went bust because of trading by ex-Goldman Sach’s Jon Corzine’s trading using his client’s money in London also outside the regulatory eye of the USA, he was NEVER prosecuted for illegally using $1.6 billion of 26,000 client’s money. That is not going to be the case this time. So what is the difference between Corzine and Bankman-Fried? Corzine was ex-Goldman Sachs.

Indeed, Corzine was well-connected right into the White House with Obama. Nobody went to jail and clients had to wait in bankruptcy to get their money – even cash in the accounts was taken. There are clear risks with the broker and clearer. As long as the SEC is run with former Goldman Sachs staff, there will NEVER be an honest regulator. Even when all the banks pled criminally guilty, the SEC exempted everyone from losing their licenses. They would NEVER do that with anyone outside of New York City. The SEC will never prosecute the banks – EVER!!!!

Indeed, several federal investigations had been launched into MF Global, including probes by the Commodity Futures Trading Commission (its main regulator), the Securities and Exchange Commission, the Federal Bureau of Investigation, and Justice Department prosecutors in both Chicago and New York. The brokerage has also been the focus of several congressional hearings. Not a single one charged Corzine with trading with his client’s money. The losses that eventually drove MF Global into bankruptcy stemmed from high-risk bets on European sovereign bonds that Corzine made as he swung for the fences. Corzine bet big that the bond issuers would not default.

Commodity Futures Trading Commission simply fined Jon Corzine only $5 million over MF Global’s rapid descent into bankruptcy on Oct. 31, 2011, as an estimated $1.6 billion of customer money went missing. Anyone else would have been in prison for a minimum of 20 years.

Glenn

It was Martin Glenn who was the judge in New York on M.F. Global bankruptcy. He was the first one to engage in FORCED LOANS by abandoning the rule of law to help the bankers by protecting them from losses taking client accounts to cover M.F. Global’s losses. He simply allowed the confiscation of client funds when in fact the rule of law should have been that the bankers were responsible and M.F. Global’s losses should have been reversed as they did even when Robert Maxwell’s companies failed in London from his illegal trading taking employee pension funds.

Yes, that was Ghislaine Maxwell’s father and the guy who was in control of the company that Bill Browder worked for before Edmond Safra. Never should the client’s funds be taken for M.F. Global’s losses to the NY Bankers. It was Judge Martin Glen who placed the entire financial; system at risk by trying to protect the bankers. Martin Glenn pampered these bankers making them the new UNTOUCHABLES. We have to be concerned that there really is no rule of law that will protect you in a crisis.

On Bloomberg TV, Sam Bankman-Fried explained why he even created FTX. He said he was experiencing his own frustration at Alameda Research, which was his crypto-focused proprietary trading firm. He was frustrated with the execution he was receiving at various crypto exchanges so he claimed that inspired FTX’s creation in May 2019. FTX grew rapidly to become the third largest crypto exchange in the world, with approximately $16 billion of customer assets under custody over 43 months.

Bankman-Fried stated that Alameda was making lots of money, but it could have been making more and he did not have access to venture capital. Claims of 100% annualized returns are not uncommon in a boom, but any experienced trader knows what goes up, also comes down. Alameda was relying on “cobbling together lines of credit” to expand its capital base. He then created FTX to solve his funding problem creating his own exchange that even the WEF cheered as a partner. He actually created a platform that was tailored for his own company, Alameda, to facilitate its trading needs. FTX coined the phrase “built by traders, for traders.”

There was an obvious conflict of interest questions regarding the close relationship between FTX and Alameda. Being operated from the Bahamas raised questions among those of us who are seasoned financial market observers whether the two were truly arm’s length from each other. However, people were so pumped up on adrenalin with crypto being the end of the dollar and central banks that this new free-wheeling crypto world believed what they wanted to believe and never looked too closely. FTX operated outside the reach of the US regulatory domain and there was a lack of any fiduciary confirmation. When the founder of Binance, the world’s largest crypto exchange, Changpeng Zhao, openly questioned the soundness of the FTX/Alameda nexus on Twitter saying he would sell over $500 million worth of FTX’s token FTT, that was the kiss of death weather or not he realized he would unleash a crypto panic that would engulf the entire industry in a matter of days.

The collapse of FTX will now become a contagion for the crypto world. This 20-something group of inexperienced traders has signaled the demise of an industry that was getting all the hype with no substance. This crypto world will be seen as the DOT COM Bubble of 2000. With a recession on the horizon, the collapse of sovereign debt, and the monetary system as a whole, people will be looking for more of the safe bets rather than roll the dice on crypto. Nothing ever goes straight down. But by year-end, the volatility should perk up everyone’s view of the world.

The UK is Not Prepared for a Prolonged Recession


Armstrong Economics Blog/Central Banks Re-Posted Nov 11, 2022 by Martin Armstrong

People are simply not prepared for a sharp economic downturn. The Money and Pensions Service conducted a poll in the UK in which it found around 25% of adults have under £100 in savings. The 3,000-person survey found that 17% reported having absolutely nothing set aside. Around 5% reportedly had under £50, while 4% had between £50 and £100.

The drastically increased cost of living has many living paycheck to paycheck. The Building Societies Association (BSA), as reported by the BBC, conducted a separate survey that found that 35% of people in the UK simply stopped saving due to inflation. Around 36% said they are already dipping into their savings accounts to pay the bills.

The Bank of England is anticipating a long recession ahead. The central bank sees economic conditions contracting through the first half of 2024. The central bank’s prediction of five consecutive quarters of contraction would mark the longest recession in UK history. The people have not experienced the full effects of this recession, and most are simply not prepared for what lies ahead.