Australia: One Foot in Asia v the West


QUESTION: Hello Martin Armstrong,
Australia seems to have one foot in the West and one in the East. With the fall of the Western economies and then the rise of Asian economies, how does that affect the Australian economy? Does the real estate bubble collapse the Aussie economies and then the rise of China creates the opportunity to rebuild the economy after 2032?
Thanks for all the work you do.
J

ANSWER: The computer is projecting that Australia will first have to collapse with Western culture because it has become exceptionally left-wing. This is the collapse of socialism in general. We are collapsing just as communism did. It will be one Pi Cycle (31.4 years) from 1989, which brings us into this target of 2020/2021. We should expect serious political change on the horizon that will result in civil unrest.

Longer-term, however, with one foot in Asia, Australia will turn from the USA and Europe. As I have said, China is MUCH WISER than what we see in the West. While Europe is fighting over old economic models and clinging to theories that no longer work, China is investigating HOW the USA displaced Europe. It did so with LOW TAXES and regulation that built the American consumer market that the entire world has been dependent upon.

Germany’s economic model is still the old Mercantilist theory that national wealth is obtained by selling more stuff than you buy from others. The USA model has been internal rather than the Mercantilist external model. This is what China has realized and it is turning inward. Western society has not figured this out yet. Just look at BREXIT. The entire argument against it in Britain is that they will not be able to sell to Europe. That is really stupid and absurd.

Therefore, when the socialist model collapses in Australia, there will be a natural risk of a separatist movement. Western Australia will certainly find that, economically, they are more aligned with Asia than the East coast.

Medical Professionals’ View of Brexit


Physicians were unable to reach a consensus on whether or not Brexit should take place. The Allergists were in favor of scratching it, but the Dermatologists advised not to make any rash moves. The Gastroenterologists had sort of a gut feeling about it, but the Neurologists thought the Brexiters had a lot of nerve.  Meanwhile, the Obstetricians felt certain everyone was laboring under a misconception, while the Ophthalmologists considered the idea shortsighted. The Pathologists yelled, “Over my dead body!” while the Pediatricians said, “Oh, grow up!” The Psychiatrists thought the whole idea was madness, while the Radiologists could see right through it. The Surgeons decided to wash their hands of the whole thing and the Internists claimed it will be a bitter pill to swallow. The Plastic Surgeons said that May’s proposal would “put a whole new face on the matter.”  The Podiatrists thought it was a step forward, but the Urologists were totally peed off at the whole idea. The Anesthesiologists thought it was all a gas, while the Cardiologists didn’t have the heart to say no.  In the end, the Proctologists won out, leaving the entire decision up to the latest poll takers in the Parliament.


The ignorance of the people, press, and the politicians regarding trade with Europe is fascinating. Ever since Britain joined the EU, it has been in a broader declining trend with respect to trade. Post-2007, the growth rate has declined progressively. This entire focus on trade is really braindead. Germany’s entire economic model is export-driven. The USA has the biggest economy, which is created by having a lower-taxed consumer base. That is why everyone from China to Germany stands in line to try to sell to American consumers. China realizes this is a no-win situation and they have turned-inward by trying to develop its own consumer-based economy with less reliance on selling to Americans. The British economy is the #1 market in Europe for German cars. A hard BREXIT will hurt Europe — not Britain!

Britain certainly does not need Europe to keep its economy going. It is the opposite way around and nobody wants to bother to even look at the data. All we get is a bunch of nonsense that trade is so critical and Britain will die without the EU. Not a single newspaper is willing to ever tell the truth. People ask me all the time why I have not done an interview to The Guardian. Quite frankly, they

Victor Davis Hanson Discusses Pelosi Cancelling the State of the Union


Published on Jan 24, 2019

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Top Military Diplomat from Venezuela Breaks With Maduro and Supports Guaido…


Venezuela dictator Nicolas Maduro has broken-off diplomatic relations with the U.S. and demanded all attache’s to return home.  However the top Venezuela military attache within the U.S. has now backed President Juan Guaido as the legitimate president and will remain in the U.S.

(Via Miami Herald) The military attaché at the Venezuelan Embassy in Washington, Col. José Luis Silva, broke with the Nicolás Maduro regime Saturday and urged other armed forces members to recognize Juan Guaidó as the legitimate interim president of the South American nation.

“As the Venezuelan defense attaché in the United States, I do not recognize Mr. Nicolás Maduro as president of Venezuela,” Silva told el Nuevo Herald in a telephone interview from Washington, D.C.

“My message to all armed forces members, to everyone who carries a gun, is to please let’s not attack the people. We are also part of the people, and we’ve had enough of supporting a government that has betrayed the most basic principles and sold itself to other countries,” he added.

Silva, like all other Venezuelan diplomatic mission staffers in the United States, was ordered to return home after Maduro announced he was breaking diplomatic relations with Washington because it had recognized Guaidó as the legitimate president of Venezuela.  (read more)

The British Press


Armstrong Economics Blog/Opinion

Merkel & Macron Signing Treaty to Create a European Army


Merkel and Macron, two politicians who cannot muster even a majority of their people for support, signed a Franco-German friendship treaty which has allowed them to boast that this is the first step to creating a European Army. There is a mad rush behind the curtain to create a European Army, not to protect Europe from Putin, but to protect the government in Brussels from the people they rule. They are very much aware that the best way to secure power is to have a foreign army.

Nike-Riot

In Constantinople during the Byzantine Empire, Emperor Justinian faced the same issue as Macron — a rising discontent. The local lack of support from both the police and military of the Emperor embolden the people to rise up. They went as far as to declare a new emperor, Hypatius. Justinian was about to flee the city for his life when his wife stopped him. She pointed to an army outside the city which was not made up of local Greeks. He ordered the army to enter the city to protect him. They slaughtered what we would call today the Yellow Vests, killing some 30,000 protesters.

This lesson of the Nika Revolt (January 13, 532 AD) is perhaps not openly discussed in public circles, but it is WELL KNOWN behind the curtain. This is why they need a European Army for Greeks would have no problem killing Germans when ordered and Germans would have not problem killing Italians when ordered. The key to maintaining order is always to use police/troops that are NEVER local.

Hopefully, that political ploy will fail before it can really come into play

Italy’s Silvio Berlusconi to Run for EU Seat


Silvio Berlusconi announced his candidacy for European elections in May due to a “sense of responsibility.” Indeed, this may be the best thing that ever happened. The EU pulled off a coup secretly behind the scenes to drive him from office because he wanted to take Italy out of the euro to save his country. Our deep sources all confirmed the EU intervened in the Italian elections to remove Berlusconi, which was effectively a coup back in 2013.

Southern Europe has been seriously disrupted from joining the euro. They were forced to convert their past debts to euros and then the euro doubled in value, causing their real world national debts to double in terms of international value. Is it any wonder their economies have been in a death spiral? Unemployment among the youth has reached 60% in some regions, and they are now known as “The Lost Generation.”

The May elections for the EU are looking like a lot more anti-EU and people will be taking up seats in Brussels.

May Survives No-Confidence Vote but has until Monday 21st to present New Proposal


The British pound moved higher following the British Prime Minister Theresa May’s government narrowly surviving a no confidence vote brought by the opposition over the handling of BREXIT. The vote was narrow with May winning by just 19 votes. Our sources were correct that she would survive. However, while the 21st seems to be a target date of our models, the prime minister  has just three days to propose an alternative deal – that is January 21st. I find it curious how the computer picks weeks in advance of political events the targets for market movements that are driven by politics. There is clearly something beyond the headlines that the computer picks up.

Despite Losing Vote for Brexit Plan, Prime Minister Theresa May Wins Confidence Vote…


After losing a key vote to advance her Brexit plan, the U.K. Parliament held a confidence vote.  Despite the lost vote 24 hours earlier, British MPs voted 325 to 306 affirming their confidence in May’s government.

Prime Minister May delivered remarks on the past two days from 10 Downing Street.

BREXIT Deal of PM Down in Defeat


Prime Minister Theresa May now faces a no-confidence vote after her BREXIT plan was defeated to be submitted by opposition Labour Party leader Jeremy Corbyn. Nonetheless, our sources there say that she will probably survive as the Conservatives who rejected her plan are not likely to vote for a no-confidence motion realizing that a Corbyn victory would more or less signal it is time to leave Britain on the next flight.  Corbyn’s socialist policies would only put Britain in a heated competition in Europe with France as to who could go bankrupt first. Macron realizes that socialism has destroyed the French economy, but he has no real support to try to change that policy.

This defeat of her plan for BREXIT only increases the chances of a hard-exit come March. The talk both in London and Brussels is all about postponing the inevitable. The idea is gaining ground now that the UK should seek to delay its departure from the EU. The SNP has called for extra time for an extension of article 50 beyond March 2019 so that the government could “go back and negotiate a better deal”. Meanwhile, those who have supported of a second referendum, such as the Conservative former cabinet minister Justine Greening, is joined by others behind the curtain who believe that the exit clause could be extended until the end of July 2019 to allow time for another vote.

Our timing models still show March and May as the key targets this year.