(2018 Interview)

COMMENT: Marty, I had to laugh that someone said you were wrong and the bond market in Europe did not crash. I asked, is there still a bond market when the ECB buys it all? All I got was a dumb look! Are these people really that stupid?

Keep up the good work.

EK

ANSWER: I know. Some people think there has been no bond market crash outside the USA simply because prices have not crashed since the central banks buy all the bonds. I have friends who work in banks. Many are retiring for the bond market no longer exists in Europe. If that is not a crash, then nothing is. They can manipulate the price all they want. But if nobody buys it then there is no free market.

QUESTION: My reading of the gold was that for the slingshot up to dramatic new highs it needed the fakeout bear trap just below the 1000 mark. Since it took out your 1,362.50 number and the yearly bullish reversal at the end of 2019, does that mean the slingshot is now dead?  Do you think the shift to millennials and how they rush into Bernie’s arms means that gold is losing its luster for the next generation?

PL

ANSWER: I am preparing the new gold report. Basically, that slingshot is obviously dead as you say. This raises serious concerns about the future for gold. Yes, there is an important shift that takes place with these major generational evolutions. The gold standard died in 1971. Most people born after that do not see gold as money. Those who were born in the 1980s onward saw money as paper. Now we have those born post-1995 and they see no problem with cryptocurrencies and google wallets. Things are changing no doubt. You cannot judge the world with your personal beliefs. You may be just a couple of generations behind.

Socrates has been buying gold on the rally for the numbers are the numbers. That is the near-term view. What you are talking about is the viability of going forward into 2032. Without the slingshot, gold has lost a lot of its luster and that maybe indeed because of the generational shift. Smoking is being replaced by vapes and marijuana is being legalized. Things are changing as are the tax authorities. A legitimate company was trying to pay $181,000 in cash for several trucks in Cleveland and the government confiscated the cash and refuses to return it. They confiscated that money on a domestic flight – not international!!!!! The man was an employee sent by his employer. The TSA gave him $10,000 of the $191,000 and stole the balance.

You try to get on a plane with a roll of $20 gold coins they would probably confiscate it today because they presume all wealth is illegal so they get to take it. The very idea of gold as a replacement for the dollar is coming under attack. We will run the models on gold for without the slingshot, then the upside also comes down.

We will be issuing the 2020 Gold Report soon to sort out the real perspective long-term and well as short-term.

GMW 2-22-2020-C

Just to let everyone know, since more than 50% of our clients are outside the USA, we have a very international reach with sources around the globe. Get prepared for volatility next week. Despite the Democrat’s personal hatred of Trump, the international view is that Trump is the ONLY sane leader in the world right now. The world is leaning so far to the left everywhere, capital is deeply concerned about where to hide. The #1 question we are getting from overseas:

What if Bernie beats Trump?

Capital can flee and seek shelter offshore. Labor cannot hoard itself nor move offshore. The average person is stuck for they cannot protect their labor so the working guy suffers the arrows that come from politicians who never understand that capital will just abandon their crazy agendas leaving only the wage earner to pay the bills which ends in revolution.

Bloomberg is the authoritarian dictator whose staff has just been “yes sir” and that was self-evident in his debate skills. He could not respond to negative attacks because he was not use to that. Bloomberg is really is no match for Trump no less Bernie. Despite all his money, he did not even make a respectable showing. He cannot buy the White House. Hillary tried that and spent 10x what Trump did and still failed.

The Democratic elites are beside themselves. They are not going to take this lightly. In United States politics, a brokered convention (sometimes referred to as an open convention and closely related to a contested convention) can occur during a presidential election when a political party fails to choose a nominee on the first round of delegate voting at the party’s nominating convention.

This time, the unpledged delegates, better known as superdelegates, will make up about 16% of Democratic Party delegates in 2020. These are the real party insiders who are not committed to voting based on the outcome of the state’s primary or caucus which flies in the face of the very purpose of primary voting. As Stalin said about elections, it is not the votes that matter, but who counts them.

The 2016 election was stolen from Bernie when many superdelegates announced early support for Hillary Clinton. The Democrats have claimed that they made a significant change for 2020. Superdelegates will no longer vote on the first ballot at the convention unless there is no doubt about the outcome. To win on the first ballot, the frontrunner must secure the majority of pledged delegates leading up to the Democratic Convention.  There are 3,979 total pledged delegates, so they are supposed to use the total required being 1,991. There is a loophole. If they can prevent Bernie from a majority on the first ballot, Hillary takes 16% again and they will then flip to her camp. That assumes they abide by this latest rule and do not change them again.

We are looking at the split of the Democrats for the elites are not about to accept Bernie and they will lose the financial support of both the corporates and the 1%. The rumblings are to draft Hillary. That will most likely be the straw that breaks the back of the Democratic Party.

Meanwhile, brace yourself for while markets next week. We may begin to see European and Asian liquidation of equities in fear of the 2020 election ahead.

Japan’s economic performance plummeted at the end of 2019, and a recession seems inevitable. The downturn in the land of the rising sun is a bad omen for the global economy. Nevertheless, the entire coronavirus scare has resulted in a sharp collapse in many areas globally that depend on tourism. We are seeing sharp declines in South East Asia, Hong Kong, and even in Dubai. We should expect that the first quarter numbers for many areas around the world will show recessionary trends. This is only further pushing the dollar higher as capital continues to flee from Asia, in particular, as well as Europe and heads into the dollar.

QUESTION: Hi Marty
I work as a Professor of Surgery and read your blog every day. I’ve worked all over the world and remain intrigued by the changes your model is now predicting. Here in Ireland, we’ve seen a massive move towards the left with the recent general election results. Capital is fleeing in advance of a new left-wing government. Do you see this throughout Europe or will Britain remain immune from this change?
Many thanks
J

ANSWER: Yes. This shift to the left is really coming to a head and has been a primary mover for a capital flight to the dollar. The general view has been that Trump will win and this has given support to the US dollar, which is why the US economy has been the only thing to hold up right now.

The British economy will also hang in there and the best thing they could have done was to exit the EU. Europe will shift more to the left and Greenpeace has become a threat to the European economy just as Goldman Sachs was back in 2007.

We are involved in a period where the economic instabilities of past socialistic policies and unfunded pensions will push the left to be much more aggressive because they are losing ground. This is really the same pattern that emerged before the collapse in communism both in China and Russia. It was not some brilliant strategy from the USA, it was plain and simple economics that took down communism. We face the same thing here with socialism. They will get very aggressive in a desperate attempt to keep their dream alive.

QUESTION #1: Marty; On the Private Blog 1/19, you wrote “When we look at the Weekly Array, we can also see volatility rising this coming week. The two key weeks ahead are those of 01/27 and 02/17. Therefore, failure to make a new high warns that we may see a retest of support ahead. We see February is a Double Directional Change. This is clearly warning that we have to play this by the numbers. Do not anticipate the future for when we look at the Overnight Volatility indicators, this too has begin to rise sharply here in January.”

We have reached your next target and during the week of 02/17. Is this all being driven by the Repo Crisis and what seems to be a panic to the dollar?

PS: Thank you Socrates. He has traded gold very nicely.

PH

QUESTION #2: I have read your blog for a few years, and to be honest since I’m so far from whats happen behind the shine, I really not understand everything. Then is the language against me as well since it’s not my native language.
Know to the question.
We who are a little older think gold is safe heaven. But if I talk to younger people do they see a future in cryptocurrency. I have read a lot about them. The best known is Bitcoin. The main issue is for payment. Then does it exist a few thousand others with many other characteristics, everything from follows golds, paying bus tickets to smart contracts. Whats is common of all those in the ledger is public and almost impossible to tamper with even for a state with all its resources. In a central database can a state always go in and change things, but in the blockchain is it not possible in the same way.
Some people think it will be internet 3.0
Money and value have been represented by many things throughout history.
How do you see on blockchain and its future?
Is it possible for governments to stop development in the long run?
Regards
BEk

QUESTION #3: The goldbugs are cheering the rally and you can see them foaming at the mouth. They really do get so emotional with every rally. You mentioned at the WEC and again in Vancouver that gold has been doing much better in foreign currencies which is why it has been rallying. Do you think the goldbugs will ever understand gold’s role in the financial system via the dollar? Or will they just always be wrong claiming the stock market and the dollar must crash so just buy gold?

DK

ANSWER: There were many markets which were lining up in February and then we have important turning points come May/June. There is clearly a panic to the dollar on a global scale and this is part of the Monetary Crisis Cycle we are headed into. It would have been nice to see a pull-back that would have created a fake sell-off in the share market etc, but this is shaping up to be something much more serious. With the insane machinations in politics with Bernie Sanders leading and Biden seems desperate at this point with Bloomberg trying to buy the White House, the 2020 election will certainly contribute to the instability later in the year.

The election of the Yearly Bullish Reversal in gold at the end of 2019 was a warning that we are facing this Monetary Crisis Cycle and we see the Euro dropping like a stone. The old scenario that the dollar must crash to see gold breakout is turning into a bedtime story for children. As I have warned many times, when the real crisis is upon us externally outside the USA, then gold would rise with the stock market and the US dollar. This is all about capital flows.

There is definitely a major shift among generations that does not speak well for gold long-term The older generations see gold as a safe haven but not the younger generations in India and China are still buying gold, but to a lesser extent than their parents. That is more of a hedge against their local currencies.

Even BitCoin was scheduled for a rally into February and it has yet to test the Downtrend Line. Here too, March remains as a Directional Change. As far as Blockchain is concerned, I do not think that is the issue. The pitch that was coming from the IMF under Legarde was that countries should create their own cryptocurrency and then she implied that they would effectively outlaw private cryptocurrencies. I believe, based upon reliable sources, that governments have stood-by to observe if the public would embrace electronic currencies. Once they became acceptable, then they would end paper money and private cryptocurrencies and force all money into their version where they could get 100% of the taxes they ever dreamed of. They will also use terrorism as a justification.

As far as looking at gold or anything in terms of currencies has never been a common trend. Nevertheless, it is critical to see the overall trend. I have stated MANY MANY MANY times that my definition of a REAL Bull Market is something that rises in ALL currencies. This is what gold has been doing since the Pi target on the ECM and once it elected the Monthly Bullish Reversal at 1362.50. We can see that in terms of Euros, gold broke out to the upside well in advance of its movement in dollars.

On the Pro Version of Socrates, you get the arrays for those who are more traders. There you can see the key days, weeks, and months. The goldbugs tend to keep preaching the very same scenario today that they did in 1975. Everything must crash and only gold survives. That is just not plausible. They tend to get a fresh crop of people to burn in an endless cycle. True, they are getting all emotional and are judging the entire next 10 years all because gold just exceeded $1600. How quickly they forget that every market oscillates up and down.

The Repo Crisis is a major liquidity crisis that reflects the collapse in confidence impacting Europe and Japan in particular. This is the precursor to the Monetary Crisis Cycle and the Mother of All Financial Crisis which is on the horizon.