Tag Archives: Pension Crisis

Jun 1 2017

Hillary Clinton Now Says Trump Aided the Russians


Armstrong Economics Blog/Politics

Re-Posted Jun 1, 2017 by Martin Armstrong

Hillary Clinton now is joining the movement to overthrow Trump claiming, with absolutely no proof, that the misinformation about her was “fake news” spread over the course of the 2016 presidential campaign which was “guided” by the campaign of President Donald Trump.   Clinton now points to compromised intelligence agencies, released in January, headed by Clapper which claimed Russia sought to “influence” and “undermine” the election. She actually had the audacity to say: “The Russians, in my opinion … could not have known how best to weaponize that information unless they have been guided … by Americans.”

Hillary is counting on the Intelligence Community (Deep State) that is leaking illegally everything they possibly can to the Washington Post on a daily basis to overthrow Trump. We have John Boehner coming out against Trump and how Hillary. Well Hillary has been blaming everyone except herself. Previously, she was blaming her second loss for the Presidency on men. She said: “[C]ertainly, misogyny played a role. … I think in this election there was a very real struggle between what is viewed as change that is welcomed and exciting to so many Americans, and change which is worrisome and threatening,” she said, before adding, “And you layer on the first woman president over that[.]”

As every one knows, I was friends with Maggie Thatcher. I have met plenty of women politicians around the world. NEVER have I ever heard any such campaign to vote for them because they were a woman. Hillary is still trapped in the 1960s and I hope she never leaves. The dynamic duo of Hillary and Boehner demonstrates when it comes to money, career politicians are all the same regardless of their party banne

Jun 1 2017

The Proposed Euro Bond Issue to Bailout ECB


Arstrong Economics Blog/Euro €

RE-Posted Jun 1, 2017 by Martin Armstrong

COMMENT: Well Mr. Armstrong, perhaps you are wrong at last. It looks like your meetings in Brussels that quite a few people noted you shuffling around town did have an impact. Looks like your constant warning about the structure of the euro’s failure is being corrected. Looks like you did make a difference. So congratulations on being wrong I suppose.

WH

ANSWER: Perhaps. But it has taken 20 years to make this point. Granted, the recent proposal to create a debt for the Eurozone is a compromise, but it is still not a consolidation of the national debts of Europe. This new compromise proposal from the EU Commission shows that they are listening at last but not for the reason I have been warning about. However, I would not say I am wrong. What I have always said is only when the collapse becomes eminent do we see the political change. My point is no change comes without the pain and typically only with the crash and burn. People who want to pretend they are advisors to government are usually bullshit artists. Government will NEVER listen to anyone if you try to get them to act without pain. Now this maneuver is not what it appears. It’s a bailout for the ECB.

The EU Commission intends to issue securities that “bundle” the entire Eurozone debt. So in other words, these will be the CDO instruments for Europe. Instead of bundling mortgages and assuming that the collective process will somehow be worth more than the individual parts, that is the compromise here. The securities are to be launched on the market as a “European Safe Asset” in order to attract the euro government bonds to investors. This is not quite what I had proposed from the outset. My proposal was they should have consolidated all the debt at the beginning, thereafter each member state would issue its own state debt as in the USA. But they were trying to sell the idea that a single currency would produce a single interest rate for all. That is what I warned them would NEVER HAPPEN.

This comprise proposal is ​​consolidating government bonds into asset backed securities (ABS). This is intended to pack the national government bonds into securities in order to ensure the financing of the states even after the end of the ECB’s buying-up program. Draghi has created a huge problem buying 40% of the government bonds. Who will buy when the ECB stops?

This is the crash and burn. The EU officials hope and pray that this scheme will increase the demand for governments’ debts of the weaker economies within the Eurozone. They also hope that this will secure the reserves of the European banks where right now a good stiff wind will blow them over. This, they hope and pray, will better diversify bank risks by diversifying their portfolios and ignoring political problems emerging in the south.

This is still a half-hearted measure to move toward federalization of Europe without consolidating the debts, which they fear will still be rejected by the North v the South. Wolfgang Schäuble had said that he no longer opposes a transferunion in principle and this ABS market has dropped sharply post-2007 because it was a subprime crisis. So here the same idea behind the mortgage crisis is being applied to the European debt. What is dangerous here is that the opposite of the original idea behind a single currency will unfold. Originally, they pitched that a single currency would create a single interest rate look at the United States. I warned that was only federally and you had to pick up the rug to see that the 50 states were subject to their own credit rating. Under this scheme, the idea of creating an ABS instead of consolidating the debt runs the risk that countries like Germany will find themselves (1) no longer the target for a capital flight among Eurozone states, and (2) that the overall interest rate will rise because of the lower quality being included. Therefore, you will not achieve the lowest rate for all as initially proposed back in the ’90s, but rates will rise to reflect the risks in Southern Europe.

While this EU initiative is designed to prepare for the time when the ECB stops its Quantitative Easing that has trapped the ECB and Draghi is pleading for help Behind the Curtain. They are hoping and praying that this is the solution to defuse the ECB risk of its absurd policies. Like the worst trader who buys and never defines where he is wrong, Draghi has made that same mistake. There is a major risk that the ECB itself can collapse.

The EU officials are still shaking in their boots with regard to Italy and the Movementso Cinque Stelli (Five Star Movement). If Italy pulls out of the Euro, the ECB can collapse. The EU feels comfortable about Merkel winning the Bundestag election in Germany. They are still concerned about Italy, Greece, and a split in Spain. One goes, and then all will go.

This compromise proposal to create an ABS  is being put forth because of the German resistance to Eurobonds. The crisis is coming to a head for when the ECB quantitative easing ends, the interest rates will be substantially higher and the budgets of member states will explode beyond set limits. They are beginning to see that the ECB will soon face difficulties for as rates rise, the value of their bond holdings will drop like a stone. I have warned that the ECB is the one central bank that can collapse thanks to Draghi.

The EU Commission is also working on a proposal to establish a joint budget for the Eurozone, which is the end game of federalization. The aim was to cement the monetary union in place and thereby prevent any more BREXIT nonsense from their view. This has risen to the top of considerations with the French presidential election and the victory of Macron. But France is in trouble. There is no money to fund what Macron promised. This becomes another patch to try to keep a failed system together.

This is why I am holding the July 22nd, 2017 seminar just on the Eurozone at the end of July. The details and tickets will go up for sale this week. This will be reasonable for it is only a half-day. The price of a seat will be $350

Jun 1 2017

People’s Bank of China Moves Against Shorts


Armstrong Economics Blog/Central Banks

RE-Posted Jun 1, 2017 by Martin Armstrong

It was only last week that the People’s Bank of China (PBOC) was rumoured to be competing in the currency market, which was coincidentally followed by a Moody’s downgrade. The action demonstrated signs that positions have been cut at a loss for anyone who attempted to short the Yuan. The O/N (overnight) and T/N (Tom-next) rates ballooned today which makes running currency short positions extremely expensive to finance. The currency traded from 6.85 down to below 6.77 (off-shore) as dealers scrambled to cover short positions as everyone chased for financing. The rates market moved from around 5.25% to over 21% to cover short-term (o/n and t/n) positions.
This is a popular move often undertaken by central banks if they fear the market is challenging them. The Bank of England when the GBP was forced out of the ERM raised rates to over 15% from then 11%. However, it is interesting that the options markets has (so far) seen this as a temporary move and has priced longer dated trades with only minimal impact. Many are speculating, given the new fixed approach China has taken against the USD, whether this is a friendly move to help a new President address his concerns over currency manipulation and assist a weaker USD
May 31 2017

Multinational Banks and Corporations Trigger Immediate Angst Over Trump Withdrawal From Paris Treaty…


Re-Posted from The Conservative Tree House on May 31, 2017 by

Every word we read, every corporate broadcast, every espoused punditry opinion, every angle that’s visible, everything surrounding the Paris Climate “Treaty”, All.Of.It., is driven by multinational banks and corporations who have a vested financial interest.

The Paris Climate Treaty has nothing to do with “climate” and everything possible to do with economics, globalism and the controlled redistribution of economic wealth as constructed through decades of advanced policies of multinational financial interests.

There are factually TRILLIONS of dollars at stake.

When you consider the pontificating pearl-clutching from the financial and industrial elites, ask yourself this very basic question:

If Elon Musk (Tesla), Tim Cook (Apple), Larry Page (google), Mark Zuckerberg (facebook), or any of the myriad of multinational executives really cared about “climate change”, then why are they doing business in China?

The primary concern for every affiliated entity surrounds economics, not climate.  “Climate” issues are the Trojan horse, the false ruse, the talking point, the scheme to get economic systems in place -yes, political systems- to control the distributive flow of larger economic wealth within all nations.  Period.

What ObamaCare was to your loss of healthcare individualism, so too is the Paris Treaty a political tool to deconstruct national economic individualism.  FULL-STOP.

To understand the larger objectives of the global and financial elite it is important to understand the three-decade global financial construct they seek to protect. Global financial exploitation of national markets:

♦Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.
♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.
♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

The ‘America First’ Trump-Trade Doctrine upsets the entire construct of this multinational export/control dynamic.  Team Trump focuses exclusively on bilateral trade deals with specific policy only looking out for the national interests of the United States.

Under President Trump’s Trade positions exfiltration of U.S. national wealth is essentially stopped.  This puts the multinational corporations, globalists who previously took a stake-hold in the U.S. economy with intention to export the wealth, in a position of holding interest of an asset they cannot exploit.

If you can see the ramifications, and can grasp the inherent anger, you can begin to understand the severity of the opposition to President Trump.

Multinational corporations and billionaire financiers use climate change as a tool toward furtherance of collected global wealth. Their strategy is quite simple, and has been played out for several cycles. Create an institutional trade instrument (housing financial bubble example), control it, drive the pricing to an apex and reap the financial rewards.

Their expressed holy grail for human control is a global tax on all people more commonly known as a “carbon-trading tax”.  A planetary tax on personage, behavior and activity, through a market-based trade vehicle (Paris Agreement), which they exclusively control; and which subverts the national economic interests of sovereign nations.

The “Carbon Trading” fundamental financial instrument is the foundational block of the financial interests behind modern climate change.  The latest exhibition of a decades long series of international construct was the Paris Climate Change agreement.

REUTERS – Investors with more than $15 trillion of assets under management urged governments led by the United States to implement the Paris climate accord to fight climate change despite U.S. President Donald Trump’s threats to pull out.

“As long-term institutional investors, we believe that the mitigation of climate change is essential for the safeguarding of our investments,” according to the letter signed by 214 institutional investors and published on Monday.

“We urge all nations to stand by their commitments to the Agreement,” it said. Signatories of the letter included the California Public Employees Retirement System and other pension funds from Sweden to Australia.  (read more)

Again, as we have done in the past, we draw attention to the secret meeting in Sea Island Georgia in 2016 when the billionaire vested participants gathered with the political class to discuss how they could stop candidate Donald J Trump.

2016 -Billionaires, tech CEOs and top members of the Republican establishment flew to a private island resort off the coast of Georgia this weekend for the American Enterprise Institute’s annual World Forum, according to sources familiar with the secretive gathering.

The main topic at the closed-to-the-press confab? How to stop Republican front-runner Donald Trump. (The meeting was not planned to be a strategy session on how to stop the GOP front-runner, but rather evolved into one, as a subsequently obtained agenda makes clear.)

Apple CEO Tim Cook, Google co-founder Larry Page, Napster creator and Facebook investor Sean Parker, and Tesla Motors and SpaceX honcho Elon Musk all attended. So did Senate Majority Leader Mitch McConnell (R-Ky.), political guru Karl Rove, House Speaker Paul Ryan, GOP Sens. Tom Cotton (Ark.), Cory Gardner (Colo.), Tim Scott (S.C.), Rob Portman (Ohio) and Ben Sasse (Neb.), who recently made news by saying he “cannot support Donald Trump.”

Along with Ryan, the House was represented by Energy and Commerce Committee Chair Fred Upton (Mich.), Rep. Kevin Brady (Texas) and almost-Speaker Kevin McCarthy (Calif.), sources said, along with leadership figure Cathy McMorris Rodgers (Wash.), Budget Committee Chairman Tom Price (R-Ga.), Financial Services Committee Chairman Jeb Hensarling (Texas) and Diane Black (Tenn.).

Philip Anschutz, the billionaire GOP donor whose company owns a stake in Sea Island, was also there, along with Democratic Rep. John Delaney, who represents Maryland. Arthur Sulzberger, the publisher of The New York Times, was there, too, a Times spokeswoman confirmed.

“A specter was haunting the World Forum—the specter of Donald Trump,”  (read more)

Pay attention to the voices rising up in opposition to President Trump withdrawing from the Paris Climate Treaty and you will identify the same oppositional voices who assembled in all economic matters prior to this moment in 2017.  Their vested interests center around the economics, not “the climate”.

President Trump is very smart about the long-term ramifications to this ‘treaty’.  If the heavily influenced industrialized nations commit themselves to this agreement they will be anchoring their economic manufacturing base within a tiered system of ridiculously burdensome regulations and agreements.

The strategic benefit to the United States will stem from not participating in the regulatory stranglehold that accompanies the agreement.  Obviously all nations that compete with the U.S on international trade agreements would, for once, be at a disadvantage; and our American manufacturing and industrial base would be able to take strategic advantage.

In larger terms Trump’s refocused policy objectives remove the political benefit from Wall Street and places it back with Main Street, reversing a three decade long shift.  This approach is adverse to the interests of the globalists.

President Trump’s economic team are well aware of the strategic advantage is walking away from the Paris Climate Treaty.  Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer and their entire economic team know what is needed to reverse the decades long construct and defeat the interests of the global elites.

 

May 31 2017

If You Want To Know Why Civil War Is Possible Just Look At This


Armstrong Economics Blog/Civil Unrest

RE-Posted May 31, 2017 by Martin Armstrong

While Kathy Griffin apologizes for going tooooo far, that is obviously only because of the flack she got for even doing this photo. If it were Obama, she would be called a racist. The mere simple act of doing something like this is exposing just how dangerous the future truly is. We have the left who thinks it is their God given right to suppress if not kill anyone who disagrees with them. I for one am starting to lean for the break up of the United States and all the leftists please move to the left of the country and anyone else who wants freedom from these insane people, move to the right.

They never heard of freedom and that means to enjoy your own life, liberty and the pursuit of happiness without being told what to do by people who want to rule the world their way. I have always had a simple motto – live and let live. I ask for nothing but freedom from oppression. Tyranny is what these people preach. It is their way or no way. We need to separate or there will be blood in the streets. It’s very simple. I fully agree with Patrick Henry. They have no right to subjugate the 50% they seem to hate so much.

May 31 2017

When Does Buying Gov’t Bonds Support Corrupt Governments?


Armstrong Economics Blog/Sovereign Debt Crisis

RE-Posted May 31, 2017 by Martin Armstrong

The president of Venezuela’s opposition-run Congress led by Julio Borges came out and accused Goldman Sachs of “aiding and abetting the country’s dictatorial regime” after a report that Goldman had bought $2.8 billion in bonds from the cash-strapped country at 31 cents on the dollar. They paid $865 million.

There have been two months of opposition protests against President Nicolas Maduro in which almost 60 people have been killed. The collapse of the country’s socialist economy has left millions of people struggling to even eat. This is the problem with “socialism” that it is incapable of managing the economy from any centralized government. They hate people who make money, but government is just incompetent to manage anything. It takes an individual on the front lines to manage any operation.

I personally experienced this in my own company. When I first began to open offices overseas, it was a disaster. It was impossible to manage the offices from the United States. I had to switch to partnerships where people had to put up money and run offices in different countries. When their own capital was on the line, then they managed their local operation efficiently. Even the same centralized planning does not work in corporations. This is why big corporations die. They become inefficient and too bureaucratic just like governments and die.

Julio Borges wrote a letter to Goldman Goldman Sachs President Lloyd Blankfein:

“Goldman Sachs’ financial lifeline to the regime will serve to strengthen the brutal repression unleashed against the hundreds of thousands of Venezuelans peacefully protesting for political change in the country.”

“Given the unconstitutional nature of Nicolas Maduro’s administration, its unwillingness to hold democratic elections and its systematic violation of human rights, I am dismayed that Goldman Sachs decided to enter this transaction.”

Julio Borges is absolutely correct. But this is not unique to Goldman Sachs. Everyone who buys government debt is helping to sustain the socialistic agendas of the major Western countries and will pay dearly for this support since historically they are the people/firms who are wiped out in the end.

Goldman may think it is getting a great deal at 31 cents on the dollar. They assume if there is a revolution they will still get paid. They are dead wrong. You can buy plenty of government bonds that were defaulted on. They make great reminders that government debt is UNSECURED and becomes worthless.

Venezuela has been a country that historically has been a serial defaulter. Defaults have taken place in 1826, 1848, 1860, 1865, 1892, 1898, 1982, 1990, 1995–1997, 1998, and 2004. The likelihood of another default is EXTREMELY HIGH.

Goldman assumes they will have access to the White House to freeze Venezuelan assets in the USA to get paid. If there is a revolution and the the army finally switches sides because they see their own future is doomed, then everything will change. Dictators need money to pay troops to maintain control. When the money runs out, so will their support

May 30 2017

Highlights of President Trump’s Trip Abroad – Strategic Global Security Alliances…


Re-Posted from The Conservative Tree House on May 29, 2017 by

President Donald J. Trump embarked on a historic trip overseas as President on Friday, May 19th, 2017.   The President made five stops in four countries during the eight-day trip.

President Trump reaffirmed America’s global leadership, continued building key relationships with world leaders, and delivered a message of unity to America’s friends and allies.

He made stops in Saudi Arabia, Israel, Italy, and Belgium, and attended both the NATO and G7 summits. First Lady Melania Trump also accompanied her husband on the historic trip abroad.  Highlights:

.

More WH Pictures and Video HERE

May 30 2017

Democrats In Texas Legislature Threaten Violence To Protect Illegal Aliens…


RE-Posted from The Conservative Tree House on May 29, 2017 by

Texas is estimated to have more than 1 million illegal aliens, according to the Migration Policy Institute. During today’s final legislative session a group of angry protesters calling themselves illegal aliens attempted to disrupt the session by shouting, chanting and blowing whistles.

The issue they were protesting is a new law known as “SB4” or the anti-Sanctuary City Law, where Texas police chiefs and sheriffs are required to comply with federal requests to hold criminal suspects for possible deportation.

In response to the disruption, the Texas House leadership stopped the session and asked state troopers to clear the gallery. According to the LA Times the demonstration continued for about 20 minutes as officers led people out of the chamber peacefully in small groups. There were no reports of arrests.

However, State Rep. Ramon Romero, a Democrat from Fort Worth, and fellow Democrat Rep. Cesar Blanco of El Paso became physically violent upon hearing that Republican Matt Rinaldi called Immigration and Customs Enforcement (ICE) to alert them to the centrally located gathering of illegal aliens.

May 30 2017

The Plot to Overthrow Trump is VERY REAL!!!!!


Armstrong Economics Blog/Corruption

Re-Posted May 30, 2017 by Martin Armstrong

There is a very REAL plot to overthrow Trump led by the political establishment and aided by the mainstream press.. This is not simply speculation – this is the real deal. Of course the Washington Post and New York Times are in full swing to get rid of Trump. No matter what it might be, the twist is always against Trump right down to the story how Sean Spicer wanted to see the Pope because he is a devote Catholic and was denied.

CNN, of course, is also part of this conspiracy. You will NEVER find any positive article about Trump in mainstream media. Here is CNN and we can see that 50% of the top stories are always against Trump. We have Boehner coming out saying Trump is a disaster. This is the guy who threw people off committees if they did not vote for his agenda. The Kushner story is desperately trying to make something out of nothing. Here we have after Flynn’s removal, Kushner suggesting setting up a direct channel for diplomatic purposes regarding Syria with the Russians. That is entirely within reason and has been done during confrontations in the past. This was only a suggestion. It was not done, yet the press twist this into somehow supporting Russia who single-handedly defeated Hillary and put Trump in office. They think if they can just keep selling that nonsense it will become a fact.. The press seems to want war with Russia and absolutely nothing else. No such link was established and the last thing you want to do is not talk to your adversary. So why is this a major story? Of yes. It’s again RUSSIA. The press created the Spanish American War. They supported the Vietnam War and kill more than 58,000 American boys, most of my high school friends died thanks to them.

Behind the Curtain, Republican Elites are conspiring to overthrow Trump (including Boehner) to protect the establishment. McCain and Graham are the worst of the lot in office. They obviously picked up the phone and called Boehner for help.

The Republicans have lost it. They think this “populism” is over with Macron’s victory in France so it’s time to get rid of Trump and it will all be OK again.

I have never seen such an all out effort on a massive coordinated effort to reject the people’s demand for reform. This is HIGHLY dangerous for we can very well move toward civil war. These people think getting rid of Trump and it will all be roses and raining money for them once again. They are DEAD wrong! Our model also warns that that United States can break up as a result of this by 2032-2040

May 30 2017

Beware the Muni Bond Bubble


Armstrong Economics Blog/The Hunt for Taxes

Re-Posted May 30, 2017 by Martin Armstrong

 

Municipal Bonds are in trouble in Europe as well as the United States. The local level cannot print money, nor are they ever capable of managing their economies. The general view is when short, just raise taxes. Everything comes to an end and we are looking at the end of a Muni-Bond Bubble. The strongest possible recommendation is get out before it is too late. Sure, not every municipality or state/province is in trouble – YET! Once the muni bond bubble bursts, there will be a contagion so even the ones that are not yet insolvent will tip over.

In the States, sell California and New England. The higher the tax rate, the deeper their debt will fall. Connecticut, for example, is hopeless as is New Jersey, New York, and just about all New England States. I was flying home from Hong Kong and upon landing in Newark, the next leg was back to Florida. I sat next to a woman from Connecticut who was going to visit her brother. She had a 1950s house 1600 square feet with taxes over $8,000 and could no longer afford to stay there for retirement. She was leaving as most people these days in what I call the Great Migration.

Connecticut’s general-obligation bonds are in deep trouble. The state’s tax collections are collapsing as people are getting out of town. Their debt is being downgraded and a $2.3 billion budget deficit is beyond hope. Tax receipts for the current fiscal year ending in June will be about $451 million short of estimates. Here too, it is the government employee pensions that are blowing everything apart at the seams. Public employees at least agreed to accept a 3-year wage freeze and to contribute more for their pension and health-care benefits under a tentative deal that would save more than $1.5 billion over the next two years. But that is just not enough.

The taxation has never been ending. Hedge fund managers are permanently relocating to Florida have been leaving New Jersey and Connecticut. When you count on taxing the rich, then one man can move out of and put the entire state budget at risk. Taxing the rich has its limits.

The motto of make the rich pay doesn’t work when the rich pick up and leave. You do not want to be the one still sitting. This game works opposite of the musical chairs game as a kid. This time, the one still sitting will have to pay the taxes for everyone who left. Then they will be unable to sell their house and leave because nobody wants to buy it because of the taxes.