QUESTION: I am finding it hard to find the Act of 1871 in the Constitution. Can you please help me find it. Thanks JS
ANSWER: The Act of 1871 incorporated the District of Columbia – NOT the United States!. Here is an article about it when it passed. Trump did not dissolve the US and Biden is not the president of just DC. The United States was NOT bankrupt in 1933. Virtually the entire world defaulted in 1931 and the US dollar rose in value so high that it forced FDR to devalue the dollar for trade purposes. The US ended up with 76% of the world gold reserves because Europe destroyed its economy twice with both world wars. These claims are total nonsense! Municipal governments are always corporations.
Trump may start a third party and the name being floated around is the Patriot Party. Unless 17 Republicans vote guilty and then they can join the Democrats and bar5 him permanently from ever running for president. Keep in mind that there are swamp-creatures also in the Republican party like McConnel. Since they too are up there in years and unlikely to be around for 2024, they would have no problem voting against him to save the swamp.
I really do not see why people need to keep making up crazy stories. All I can assume is they are doing so to deliberately flush people out. Others may simply be unfamiliar with what they are even talking about. There were videos going around that the Supreme Court was trying to tell Trump how to file after they dismissed the Texas suit. That was just laughable! They filed under the original jurisdiction of the Supreme Court whereas claiming they needed to file under Article III was already attempted. That is filing in a district court, then the appeals court, and then to the Supreme Court. If they wanted to take the case they would have. There were two dissents. That was a political decision to preserve the swamp – plain and simple.
Some have written in and said then explain why the US is a corporation citing 28 U.S. Code § 3002 – Definitions. Perhaps they did not realize that all local governments are corporations right down to your local municipality. A corporation is a group of people authorized to act as a single entity (legally a person) and recognized as such in law. So what? That does not mean that Trump can dissolve the United States. This is just complete nonsense that gets people into trouble.
So you can kill someone and then as your defense, you claim the US is just a corporation and this has no power to prosecute you? I suggest you ask Wesley Snipeshow the claim that the Income Tax is illegal because all the states did not ratify it went for him.
We have to deal with the real world. You will NEVER defeat the United States in a court of law with judges appointed by them and argue there is no power. Never going to happen!
.I am not here to tell you what you would like to hear. Sorry – I am not a politician.
QUESTION: In your opinion, how serious is the idea of taxing unrealized capital gains? That would sure make the decision a lot clearer for big money on where to park. 3% in China sure beats big taxes in the Dow. Unless big money doesn’t trust China.
ANSWER: I seriously doubt that they will do what is simply referred to as an “unrealized capital gains” tax. What is in the works is a Wealth Tax as they will call it. Just follow California, the land of endless taxation without reform. The very fact that these people in government keep raising taxes PROVES they are incompetent in running a government. This is as if you were in business and your sales are declining so instead of trying to boost your sales, you increase your profit margin raising the prices instead of marking it more attractive to consumers.
All you need to do is look at California. I wish Trump won and they would have moved to separate from the USA and I would have gladly paid all their legal fees to get rid of the worst state in the union. They chase people out of the state and have constantly tried to hunt them down. They tried going after people who moved to Florida claiming they still had to pay taxes in California because they once lived there. That is in direct opposite of what the American Revolution – no taxation without representation.
Currently, California’s wealthiest 1% pay approximately 46% of total state income taxes and that is still not enough. They are trying to put in an additional wealth tax on individual taxes and including those taxpayers who have abandoned California. They are now trying to raise taxes on the top 1% so they would then pay 53% of all individual taxes in California. Indeed, like New York, if you just visit the state they want to tax your income. A friend left New York, moved to Florida, but his wife kept going back to visit friends. They traced her phone calls and just one call from inside New York was held as being there for one month and went after him for state income tax despite not living there. The Shakespeare line “The first thing we do is kill all the lawyers” referred to the king’s prosecutors who did the same thing confiscating people’s property for taxes (private lawyers did not exist then only the king had lawyers).
As for readers in California, I have warned you the old song which was one of my favorites from the Eagles, “Hotel California”, is indeed the state’s national anthem
“You can check out any time you like, but you can never leave.”
California’s Legislature is considering a wealth tax on residents, part-year residents, and any person who spends more than 60 days inside the state’s borders in a single year without voting rights so no taxation without representation is ignored. Even those who move out of state would continue to be subject to the tax for a decade! I implore our California readers – get out while you can!
The real danger is California has been the lead lobbyist in Congress to pass a law whereby all 401Ks are seized and then managed by the state pension because they are broke! They want to take private 401K money and redistribute it to state employees. Now that the left is fully in control, there is a danger of that idea as state pensions fold and there is an undertone of creating a Wealth Tax nationally. This would certainly push capital out. I was asked by clients if I would start a bank in Switzerland that did not lend money. I looked at the issue and they imposed a Wealth Tax of 0.04% and said it was minimal. The problem was, you had to declare absolutely everything you own around the world. They then would share that with the rest of the world. It was not very attractive and that is why small Swiss banks have been going out of business rapidly over the years. California is following the Swiss Wealth Tax but ignoring that decline in business.
It would force me to push myself for a separatist movement. The retired people living in Florida would still collect their Social Security as if they were living in Spain or someplace else like Mexico where a lot of ex-pats have moved. Those on the left will never end with their taxation because they will always spend more than they have. There is no responsibility whatsoever.
The next American Revolution will probably have a new slogan –
The first financial capital of the United States was Philadelphia. A walk down Chestnut street and you will see all the old banks which have been turned into mostly restaurants. That was the home of the Bank of the United States which Andrew Jackson was intent on destroying. But Philadelphia continued to be the financial center. Even the Philadelphia Stock Exchange predated New York which was founded in 1792. The Philadelphia Stock Exchange was founded in 1790 but was originally named the Board of Brokers of Philadelphia. On May 17, 1792, twenty-four brokers signed the Buttonwood Agreement, which eventually became the New York Stock Exchange.
Jay Cooke was the financier of the Civil War and the first primary dealer located in Philadelphia. His firm was the largest and it failed during the Panic of 1878. The House of Morgan was actually born out of the partnership of Drexel, Morgan & Co., which formed by Anthony J. Drexel of Philadelphia with his protégé and partner, J. Pierpont Morgan in 1871 which became a New York firm. Following Drexel’s death, the company reorganized in 1895 and became J.P. Morgan & Co. which became an investment banker that financed the formation of the United States Steel Corporation. It became the world’s first billion-dollar corporation. Also in 1895, J.P. Morgan & Co. supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million.
J. Pierpont Morgan became the target of much criticism and it was this image of bailing out the US Treasury from the silver Democrats that painted him as a profiteer because the bonds he floated rallied and many claimed he intentionally underpriced then to make money on the bonks.
I have often explained that the Economic Confidence Model is fractal. Thus, 2 x 8.6 equals 17.2. Hence, 17.2 x 8.6 = 147.92. What is emerging is the gradual decline in New York and the shift in the financial capital of the United States once again. The shift from Philadelphia to New York began gradually from the opening of the company in New York in 1871. However, it was the Panic of 1878 which undermined Jay Cooke & Co and shifted the power to Drexel. The New York office began to rise and with Drexel’s death, Morgan became most famous by bailing out the US Treasury in 1895.
What is most interesting is that the shift from Wall Street in New York to Miami is underway. Goldman Sachs was moving its most profitable operation to Florida and so many others are now starting to follow. The lockdowns have wiped out jobs and small businesses in New York which is looking more like a ghost town after the gold rush was over. But it has also wiped out the need for offices with only 8% of the people returning. Bill Gates won. He has ended commuting to reduce CO2 and the politicians were so eager to get rid of Trump, they never considered they were undermining New York itself. Our model is projecting the by the sheer volume of assets, the shift from New York to Florida is underway and Florida may exceed that of New York altogether by 2025/2026 (1878 + 147.92).
QUESTION: What is your opinion on Kondratieff Waves?
ANSWER: All those investigating cycles within the economy made a simple mistake. Kondratieff followed agriculture/commodity prices when agriculture accounted for 70% of the GDP pre-19th century. That only began to decline from 1850 forward, dropping to 40% by 1900 as the Industrial Revolution emerged with the invention of the steam engine. Moreover, aside from climate impacting the food supply, there were also wars. So the Kondratieff Wave failed to take into account all of the external forces.
If we extend the K-Wave 54 years from the commodity high in 1919, that brings us to 1973 which was close to the end of Bretton Woods in 1971, and the OPEC Oil crisis. Another 54 years from there will bring us to 2027. Therefore, this may be based entirely on commodities, but they were impacted by weather and war. Note 2027 is the ideal target on our model for war derived from entirely different sources.
There is a cycle of industrialization as well. Rome began as an agrarian society and moved toward trade, which brought them into conflict with Carthage. Rome itself became more like New York and grain was imported from Egypt. As agriculture became more of an import, Rome blossomed like New York into the arts and culture. The shift toward industrialization also resulted in a decline in birth rates for children. Large families were needed in an agrarian society but not so much in a developed society – hence the family laws of Augustus.
The first known Clean Air Act occurred in 535 AD by Emperor Justinian in Constantinople. He proclaimed the importance of clean air as a birthright. “By the law of nature these things are common to mankind—the air, running water, the sea.” Even Cicero wrote about pollution in the ancient city of Rome. This went hand and hand with developed societies and urbanization.
Consequently, when you are looking at long-term cycles, a few hundred years is not enough data. If Kondratieff were alive today and based his study on just the current system, he would be focusing on services rather than commodity-based economies. Agriculture has fallen to just 1.41% of the civil workforce.
QUESTION: Hi Martin, the dollar’s performance bucks logic, especially with Federal Reserve officials spending all week to deny any speculation of a tapering soon in relief measures or an imminent hike in interest rates standing at near zero.
But what made the whole thing even more bizarre was the dollar’s defiance of the rocketing U.S. deficit and debt forecast from the Biden’s administration’s fiscal plans to fight Covid-19. Why is the dollar so strong? and why is Gold selling off? Are they being manipulated? When do you think we will see Gold go above 2k?
ANSWER: The CFTC data reflected the largest week-to-week turn against the dollar since early-Aug 2020 with the USD’s net short reaching its highest mark on record (in dollar terms) at USD35bn on the back of a USD3.7bn increase in favor of most of the currencies it would seem.
You must understand that we are dealing with a complete collapse in economic theories. This is why it may seem weird. That is why I released that book on Manipulating the World Economy. I am finishing a new chapter to add on COVID for the 5th edition. It keeps selling out in a matter of hours. There is a digital version available on our site.
What we are dealing with is the collapse in Keynesian Economics which held that an increase in the money supply would be inflationary which has proven to be false. The Goldbugs disagree with me but that is because they are so brainwashed but that rhetoric. The central banks have used that same theory and increased money supply hoping to create inflation without success. This is how Modern Monetary Theory has emerged saying after 6 years of QE and no inflation you can just print without impact. All of this ignored the bottom line. As long as people do NOT trust the future, they will hoard their money and not spend it even as the supply increases. You need to change that dynamic. They (1) suddenly believe that it will be more costly to wait to buy now, or (2) they lose confidence in the government and refuse to hold their money.
We are in a dangerous transition period and it will be confusing. You have to let go of your Keynesian indoctrination which centers around the Quantity of Money Theory that is what the central banks have continued to try to follow without any success. They do not understand the economy and the solutions are out of their control. They lie on the fiscal side and that has been totally corrupted by the World Economic Forum and Klaus Schwab.
Many people have written in asking what is the future of the markets. While in any election, it is presumed that the right to vote belongs only to the citizens who are alive, there has always been a second vote. That second vote is carried out by international capital. As I have explained many times, the DEFINITION of a bull market is one that rises in terms of ALL CURRENCIES!
The Japanese bubble of 1989 was the same as the 1929 bubble in the USA. You can see that the Nikkei rose in value more so in dollars than in yen because the yen was rising. This is what made the bubble. Everyone was there. When the market broke, capital fled. This is now what we must sort out.
It really does not matter who you voted for, if you cannot look at the markets objectively regardless of what you think, then you will lose. All that matters is how capital will respond. Already people are looking at boycotting not just Facebook and Twitter in mass, but all companies that say they will stop all donations to any republican like Coke.
First came Obama driving a truck straight through the Constitution by calling for the Fundamental Transformation of America, when only he, a community organize-cum-president was making that clarion call.
Next came his 20-year-tenure pastor declaring “God damn America!”
During the 2008 election, Obama threw his pastor under the bus —a political necessity in getting himself elected as the most anti-American president in all of history.
Obama gets to operate from the safety of “Resistance” leader in hiding, with full Secret Service backup
Now that Obama gets to operate from the safety of “Resistance” leader in hiding, with full Secret Service backup, he’s now saying that the Rev. Jeremiah Wright is a “supremely gifted preacher”. “Trinity United Church of Christ, obviously, outside Chicago had an amazing ministry, still does.”
According to sanctimonious Obama, Wright was only taken out of context by the media.
How can “God damn America!” possibly be taken out of context?
The truth is that things have never been the same in America ever since a ribald lie in Christoper Steele’s dossier—financed by presidential candidate Hillary Clinton—including that “racist”, “bigoted” Donald Trump once had prostitutes urinate in the same bed once slept in by Barack and Michelle Obama was accepted as Gospel truth.
Now we come all the way up to Democrat Rep. Emanuel Cleaver who opened the Freak Show known as the first day of the 117th Congress with a prayer ending with “Amen” as “a-woman”.
A Missouri Rep., and former Kansas Mayor, “Reverend the Honorable Emanuel Cleaver was elected when a United Methodist pastor, Cleaver shares much in common with the Rev. Mr. Wright. While Wright is an advocate of Louis Farrakhan, Cleaver is an advocate of the Black Panthers movement?
Here is “a-Woman” Cleaver’s Wikipedia entry:
“Cleaver is a cousin to exiled Kansas City Black Panther leader Pete O’Neal. In 1997, Cleaver attempted unsuccessfully to obtain a pardon for O’Neal from President Bill Clinton. Cleaver is also a cousin to the late Eldridge Cleaver, another famous figure in the Black Panther Party.” (Wikipedia)
With no respect for God, country or family and now hideously drunk with power
With no respect for God, country or family and now hideously drunk with power, Inauguration-bound Democrats are playing not only fast and loose but “cutesy” these days.
Granny Nancy Pelosi, who just squeaked back into the House ‘Squeakership’ with the votes of 3 Covid-19 stricken or quarantined Democrats behind Plexiglass, is wiping out all forms of address she claims will reflect on gender neutrality.
In other words, you can no longer call the ‘person’ who carried you for nine months before bringing you to life on Earth, Mother anymore—and only Nancy Pelosi—but not anyone else can refer to her as “Granny”.
The first sheep to bleat in Pelosi’s pasture is Black Panther advocate the Rev. Mr. Cleaver, who replaced the word ‘Amen’ with “a-woman”.
A common English translation of the word “Amen” include “verily”, “truly”, and “so be it”. It’s not a gendered word.
“Missouri Rep. Emanuel Cleaver, a Democrat, delivered the opening prayer on the first day of the 117th Congress on Sunday that started with a hint of yearning for less political division. (Washington Examiner, Jan. 3, 2020)
“Eternal God, we bow before your throne of grace as we leave behind the politically and socially clamorous year of 2020,” Cleaver said. “May we model community healing, control our tribal tendencies, and quicken our spirit.”
But at the end, Cleaver injected a political statement.
“Amen, and a-woman,” he said.
What “woman”? The word has just been totally wiped from the public lexicon!
“The inclusion of “a-woman” came as Democrats are proposing a rule change that replaces the use of words like father, mother, son, daughter, brother, sister, uncle, aunt, and more with gender-neutral words. Democrats defended the measure on Sunday amid Republican criticism. (Washington Examiner)
Meanwhile In the myriad of words cancelled by Democrats is the Latin one that best describes Democrats of the day.. That word is “ignoramus”.
“Calling someone an ignoramus is an insult — it’s a colorful way to comment on a person’s ignorance or stupidity. The word comes right from the Latin ignoramus, literally “we do not know,” which was a legal term in the 16th century that could be used during a trial when the prosecution presented insufficient evidence.” (Vocabulary.com)
QUESTION: Martin, Thanks for a great report on your private blog regarding population and cycles. These Great Reset people are killing the whole world! As an American who has lived in China since 1996, and has followed you since your incarceration, I am a huge believer in cycles and a student of Asian philosophy and martial arts.
I am however having problems reconciling your prediction of the center of Finance moving to China with what I am currently seeing. Please tell me what I am overlooking. Yes, I understand that the west is going to decline compared to its current state while China rises but there still needs to be certain structures in place.
To get the power to shift to a different country you need:
Stability (China has this)
Innovation; “the parent of prosperity” ( Money tends to follow innovation and this requires an environment where people are free to tinker and the government does not overly tax or try to assume too much control) It’s a bottom-up process that has not been part of China since the Song Dynasty. So if they are returning to the Innovative Song dynasty they need to rule like the Song did. China has been going away from this since Xi came to power. Locking up its entrepreneurs or stealing their innovations and giving them to their National Champions. If this idea of National Champions had happened in the US we would still be using rotary dialed phones and driving Edsels!
Rule of Law: i. Bankruptcy China asked AmCham and other chambers to help to rewrite its bankruptcy law to enable capital to be quickly redeployed. I have helped to take a few companies through bankruptcy and they still have a very long way to go before capital can be efficiently redeployed. ii. Contracts are enforced by the Chinese government on foreign companies but there is no practical way to enforce them on the government.
Markets i. Credit markets The markets are not open to the public ii. Capital Markets. For every sin, that we read about on Wall Street my contacts inform me that China is two to three times worse. Ponzi and Madoff are alive and well in China.
FX and convertibility of the Chinese Yuan (The capital account is currently not open to the capital markets)
What am I missing? Thanks in advance to you and your team for addressing this issue.
ANSWER: This is not a personal forecast. But keep in mind that the time frame is post-2032, which will actually be after 2037. So a lot can change between now and then and Xi Jinping will be 84 in 2037. The most critical factor is the rule of law. If that is not definitive, you cannot write any contract because there is no way to enforce it. The culture of copyright infringement was prevalent in Hong Kong where people would come visit offices with knock-off Rolex watches to Gucci bags. A lot needs to change, but the decline from the West is critical. What we are witnessing with this Great Reset is the desperate attempt to keep the governments in power which will only lead to fragmentation. So China simply will become #1 because the West will break apart.
The tyranny of this Triumvirate is to rule the world from the United Nations. China will not surrender to this absurd tyranny. But in the process, they will indeed destroy the very consumer-based economy that was so critical to world peace. Neither China nor Russia will surrender to this tyranny.
Moreover, China moving to a digital currency is also to bypass SWIFT. They will create their own financial network that in the years ahead will be an alternative to the West rather than subordinate to the West. China is well aware that the core of the US economy is the consumer market. They are intent on developing that and this is how they surpass the USA as it stupidly allows the Triumvirate to destroy the foundation of the Western economy. They will surpass the USA in e-commerce.