Published on Jun 28, 2018

A man named Andrés Manuel López Obrador is running for president in Mexico. His platform? Unlimited immigration to the United States. Want even more Right Angle each week? Become a member at BillWhittle.com! https://www.billwhittle.com/subscribe Right Angle is brought to you by the paying members of BillWhittle.com and by donations from viewers like you! Show your support by making a donation at: https://www.billwhittle.com/donate

What’s Really Happening At The Border


Published on Jun 27, 2018

Donald Trump ran on building the wall and stopping illegal immigration…. yet here we are, with no meaningful changes. What gives? Want even more Right Angle each week? Become a member at BillWhittle.com! https://www.billwhittle.com/subscribe Right Angle is brought to you by the paying members of BillWhittle.com and by donations from viewers like you! Show your support by making a donation at: https://www.billwhittle.com/donate

Welcome to Dollar Vertigo – China to Ban Dollar Borrowing?


COMMENT: Mr. Armstrong, it seems that whatever you say our government follows. You said China should buy directly from the Treasury and not the New York bank and they did that right away. Now they are considering stopping dollar borrowing here in China as well. You should be holding a WEC here in Shanghai next.

QLJ

ANSWER: Yes, Bloomberg has reported that here in the West as well. People do not understand that the more the dollar rises, the greater the risk of defaults around the world. US rates fell so low that it was cheap to borrow dollars. The borrowers are now starting to realize that they also had a foreign exchange risk. This is what I have been warning about. You even have the dollar bears here in the States who keep saying I am wrong and the dollar has to crash. Repeatedly, I have warned that a decline in the dollar will be celebrated by everyone including Trump because it would ease trade friction. A rise in the dollar means trade friction, protectionism, and emerging market crisis of debt defaults. As the defaults mount, the dollar will be sent even higher. Add a crisis in the Middle East and in the stability of the Eurozone, and you end up with dollar vertigo!!!!

Euro Interest Rates


QUESTION: Mr. Armstrong; You have obviously been correct on the Euro. You even called the bounce but it stopped at 1.2550 and did not reach your ideal target of 1.28. You are saying that interest rates in Europe are more likely to rise faster than the ECB predicts. The French central banker Francois Villeroy de Galhau has also come out and said that a hike in interest rates from mid-2019 onwards will be possible. That contradicts Draghi. Running a small business here in Europe is difficult as you know. So we should look to try to lock in rates now before it is too late. Correct?

FK

ANSWER: Absolutely. True, the technical resistance and the Monthly Bullish were in the 128 zone. However, the euro just did not have enough energy to reach that point which is in itself an indication of inherent weakness. If we look at the long-term 30-year rates on the euro, support lies at 0.93% and resistance at 1.7%. A monthly closing above 1.7% will signal a move up to 2.33% to 2.43%. After that, expect a rapid move to 5%. A closing at year-end above 1.42% will confirm a sharp rally is underway

Cryptocurrencies Vulnerable to Hackers?


QUESTION: It certainly seems that the cryptocurrency world has its flaws and may even be worse than traditional bank accounts and credit cards. They keep getting hacked. So they are trying to defeat central banks but may be running into the arms of scammers and thieves. I read one guy even claimed Bitcoin would be the new reserve currency. I really do not understand these fools. How can Bitcoin become the reserve currency? Where does this really end?

EP

ANSWER: I really do not know. The dollar is the reserve currency BECAUSE it has a $20 trillion debt that is used globally to park money. Europe never created a single debt market and that is why the euro never managed to compete with the dollar. There is just no way Bitcoin can become the reserve currency. That is really la-la-land. Where does this end? The technology may be absorbed by governments and perhaps you end up with a single electronic currency for each country. As far as circumventing central banks and governments, they can shut it down whenever they want by simply declaring cryptocurrency is for criminals as Australia is trying to do with cash.

With respect to the hacking, well easy come easy go. For the second time in just a few days, hackers launched a raid on a South Korean cryptocurrency exchange. The hackers had captured in one night about €27 million euros, the trading platform Bithumb had to admit. This is number six worldwide in terms of trading volume for cryptocurrencies. Bithumb announced that it would compensate its users.

The prices of most cryptocurrencies fell after the second South Korean incident within a few weeks. Bitcoin, the largest cryptocurrency, fell 2% that day. These attacks are starting to wear down the cryptocurrency market, and we may yet see a decline further into July.

2032 – How Hard Do We Fall?


 

QUESTION: Hi Martin,

First, I’d like to offer my condolences on your mother’s passing. It feels to me that you must take great satisfaction in the fact that she must have been very proud of your accomplishments, and what you are trying to do for the average person. To me, that is the ultimate goal of a child; in thanking their parents for everything they have done.

Concerning the blog entry of “Crash & Burn & The Sixth Wave”, you write that it all depends upon if we begin the process in 2021. My interpretation – having followed you for years now – is that the people must rise up and push back against higher taxation, and demand reform and/or it could hinge on the Euro breaking apart, which provides the path to follow for the rest of us.

I believe you meant that if the people just acquiesce and do nothing – like in 2008, then those in power continue to run the economy for their benefit, causing the social fabric to continue to be torn apart between 2021-2032, (which means continued record low birth rates, low productivity, record low levels of capex, record suicide rates, etc) until it finally crumbles by 2032, leading to civil unrest. Have I got this right?

Thanks again for everything that you do.

Danny

ANSWER: We have to understand that this will be the third such sequence of the Sixth Wave. At the end of the first sequence, we have civilization going into a Dark Age. That also coincided with the energy output of the sun declining and the massive volcanic eruption of Thera (Santorini), which ended the Minoan culture. That is when Mycenae invaded as well as the conquest of Troy. The last wave peaked in 175.35 AD, and after that we have the political unrest and collapse into 268 AD. I for one have a personal hope that we can avoid that outcome. In both cases, this is when the energy output of the sun dropped into a cold period where the Greeks became the sea people and migrated back to Africa. The second sequence saw the invasion of the barbarians as they moved south and overthrew the Roman Empire. The wall around Rome was not built until 270 AD. If we keep sticking our finger in a light socket and getting zapped, are we unable to learn from experience? The question in my mind is how hard will we land?

This is the cycle, it is NOT my “opinion” and I would prefer to point it out and say we can change the outcome if we understand the causes. There is no stopping the cycle. All I believe we are capable of doing is changing the degree of volatility. This is clearly the end of the West as a world economic power. The financial capital of the world will be shifting to China and Asia after 2032.

Even if we look at the hatred poured on Trump, this is indicative of how civilization collapses. It does not matter if you agree or disagree with Trump. This sort of hatred and the personal attacks, especially led by CNN, is so destructive I fear what comes AFTER Trump. There is absolutely NO POSSIBLE WAY that anyone who would really try to help the situation will come to power. CNN has guaranteed that nobody in the right mind would dare to be president. The only person will be a career politician who will NEVER look at the cycle. Instead, they will fill their pockets before they leave office. CNN loved Hillary. The Clintons stole a couch when they left the White House and had to return it. When you go to a hotel you might take all the soaps, but you do not leave with the bed.

If we do not realize what is happening, then yes, our own complacency will be our doom

Coming Crisis: Emerging Market Debt


QUESTION: Mr. Armstrong; Just to clarify, a continued rate hike in dollars will send Emerging Market debt into chaos and possibly default. Is this both public and private?

Thank you.

You are a voice in the wilderness

PK

ANSWER: Oh yes. Both public and private emerging market debt raised money in dollars. A 2% increase in interest rates could spark a sharp rise in the proportion of emerging market corporate debt issues at risk of default. This is true especially in Brazil, Turkey, and Indi