Private Money


Armstrong Economics Blog/Cryptocurrency Re-Posted Feb 24, 2021 by Martin Armstrong

QUESTION: Marty, I found your passing comment on cash-like coupons by private stores becoming cash in the digital world. Could you elaborate?

thank you as always

BK

ANSWER: Aside from the ancient Roman prostitute token, we have often found private tokens emerge as money during periods of shortages in physical money. The Roman Emperor Tiberius (14-37AD) was notoriously frugal. Where his predecessor Augustus (27BC-14AD) minted coins like no other emperor with so many varieties well over a 100, Tiberius reduced everything to two designs and cut the money supply. He ended up creating a Financial Panic of 33AD which was also a shortage of cash like during the Great Depression.

Hence, we find not only the prostitute tokens but a full range of tokens with different numerals on the reverse expressing value. One theory argued that they were tickets for entrance to the theater or the games, and the numerals represented sections in the stands, or that they were brothel tokens, with the obverse representing a chosen “product” and the reverse the price. However, this theory seems unlikely when one considers that the two seemingly divergent themes are joined by the same die links to the numeral reverses.

Alberto Campana (“Le Spintriae: Tessere Romane con Raffigurazioni Erotiche,” in La Donna Romana Imagini e Vita Quotidiana [2009], pp. 43-96) has published a new die study of the erotic pieces, recording eight specimens with at least basic find spot information, most notably a sealed tomb in Modena, firmly dated to the mid-late Julio-Claudian period, as well as other examples found around the Roman world in Palestine, Gaul, Germany, and Britain, often in areas of military interest. He notes that these tokens (tesserae) are primarily struck in orichalcum, a metal more valuable than regular copper or bronze. He thought they might be game pieces from a now-forgotten board game, possibly a variant of duodecim scripta, a game resembling modern backgammon (“Les spintriae et leur possible fonction ludique,” in Archeothema 31 [2013], p. 66).

These theories that have tried to come up with an explanation for these tokens, or tesserae, fail to consider the economics of the time. When we look at such periods of austerity such as the American Civil War were there was a shortage of metal coins and the Great Depression where hundreds of cities were forced to print their own currency, then these tesserae from the time of Tiberius are more in line with the financial crisis of 33AD and the fact that Tiberius reduced the coinage dramatically and disapproved of real estate speculation at the time.

During the American Civil War, the shortage of coins led to private companies striking their own coinage, The reverse would often advertise the store but these tokens were generally accepted universally. They were treated as regular pennies.

We find also higher denominations where they used postage stamps as the backing. They were encased and again on the reverse, you will find the store advertising that they were the originator. Once more, these were universally accepted in common day to day commerce.

From the Panic of 1873, once again there was a shortage of coinage developing. Here we find an 1876 token issued by R. H. Macy & Company. The US demonetized silver in 1873 and stopped producing the silver half-dime. They also changed the design of much of the coinage. In 1874 they minted 14.1 million pennies but in 1876 it dropped to 7.9 million and in 1877 production collapsed to just 852,500. Indeed, the 1877 Indian Head pennies are rare due to the economic slump that began in 1873 continued with full force. Demand for United States coinage was at an all-time low, and families struggled to make ends meet. Saving even a penny for a coin collection was not an option for most Americans so these coins in uncirculated condition will often bring over $100,000.

The first large issue of Notgeld (Emergency money)started at the outbreak of World War I as coins were hoarded and metals were diverted for wartime uses. These notes were issued in small denominations. This currency was not legal tender — but was used and accepted on a voluntary basis within local areas. The advantage of issuing Notgeld (Emergency money) was that it stabilized local government and local markets, so people could buy and sell what they needed while government services kept functioning, plus it helped concentrate the official currency in the hands of the government, where it could be used for non-local transactions. This very same  trend emerged in the United States during the Great Depression. The central bank in Germany could not produce enough notes to keep up with inflation, so new Notgeld was issued in denominations of thousands, millions and billions of marks. Private Notgeld was also issued in the form of commodities or other currencies for backing: wheat, rye, sugar, coal, wood, natural gas, electricity, gold, or U.S. dollars, known as “Wertbeständige” or notes of “fixed value.”

LongBranchNJ-DepressionScrip

There was no “helicopter money” during the Great Depression for it was exactly the opposite – massive DEFLATION. There was a shortage of money to the point that hundreds of cities began to issue their own “Depression scrip.” You have to understand the dynamics of economic decline. People naturally hoard their money when they fear the future. The Great Depression was the very age of AUSTERITY where the assumption was that the collapse was due to a lack of confidence in government so they increased tax collection and cut spending, which unleashed both deflation and a dwindling money supply. This led many cities to create their own money due to the lack of money in circulation that was impacted by hoarding.

Worgl-Freigeld1

In Austria, there was an experiment to try to prevent people from hoarding cash during periods of economic crisis. This experiment was hailed as the “Miracle of Wörgl” which also took place during the Great Depression. The Wörgl Experiment began on July 31, 1932, the very month that the Dow Jones bottomed. The experiment involved issuing “Certified Compensation Bills” that were was a form of local currency known as Scrip or Freigeld. The monetary theories of the economist Silvio Gesell were applied by the town’s then-mayor, Michael Unterguggenberger. What differed from Gesell’s idea was that the currency would expire. Believe it or not, there are some governments looking into a currency that expires. Since World War II, Europe has issued currency that expired roughly every 10 years. This forced people to bring out the old currency to be swapped and thus prevented hoarding.

The central part of Gesell’s idea was how to stop the HOARDING of money. This is why FDR confiscated gold. He too saw the problem of people hoarding money and not spending it. This is part of every economic decline. If there is no CONFIDENCE in the future, people save more. This is simply human.

Money-Assets

Nevertheless, the Wörgl Experiment resulted in a growth in employment largely because they had to use the money. This allowed the local government projects to all be completed, which many called a miracle, for it appeared to defy the depression in the rest of the country. Inflation and deflation are also reputed to have been non-existent for the duration of the experiment. But this was simply the result of money expiring so there was no purpose in hoarding “money” or shifting it back to “asset” appreciation as in hyperinflation. Despite the appearance of success, the Wörgl Experiment was terminated by the Austrian National Bank on September 1, 1933.

This time, they are seeking to use digital currency to just totally eliminate physical money. No matter how politicians try to eliminate the underground economy, as we have witnessed since ancient times when there is a shortage of money that is when the private sector will respond. As I mentioned they will reestablish a rise to the reestablishment of barter and private tokens. In prison, cigarettes were money. Then packs of mackerel. Who knows what will emerge? USB sticks? Perhaps private paper money issued by companies that are a hybrid-coupon perhaps from stores like Macy’s. Big chain stores could easily issue coupons redeemable by the bare which will function as money.

Seattle Orders $4 per Hour Extra for Essential Workers Causing More Company Closures


Armstrong Economics Blog/Regulation Re-Posted Feb 23, 2021 by Martin Armstrong

The Seatle government has directed that people who are “essential” workers during this pandemic are to be now paid $4 per hour extra for hazard pay. Kroger grocery has decided to close its stores. There is simply no proof of a pandemic and far more people die from cancer than COVID and grocery stores do high volume with a very low markup, but politicians do not understand how businesses operate. The press touts 500,000 have now died from COVID to scare the hell out of everyone, yet the total number of deaths 606,520 deaths are expected in the US in 2020 from Cancer, and of 1,806,590 new cancer cases were reported. The government does not outlaw cigarettes nor do they lock down the country. 1.35 million people die in road accidents worldwide every year, but we do not outlaw cars.

Both Fauci and the World Health Organization are touting the Great Reset. Both are supposed to be confined to health. Yet both are supporting Klaus Schwab’s attempt to take over the world and install his vision of economic precisely as Karl Marx. When will the world wake up and smell the poison in the air?

Raising the Minimum Wage


Armstrong Economics Blog/Economics Re-Posted Feb 23, 2021 by Martin Armstrong

The Democrats stuffed into the $1.9 trillion stimulus package a hike in the minimum wage from $7.25 for covered nonexempt employees to $15. Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

In Florida, I voted for a hike in the minimum wage over the next six years which will increase gradually to $15 an hour. On November 3, 2020, over 60% of Floridian voters approved Amendment 2, which increases the minimum wage and amends Florida’s Constitution. Under the new mandate, Florida’s minimum wage rate (currently, $8.56) will increase to $10 an hour in September 2021. The minimum wage then will increase by $1 each year until it reaches $15 an hour in 2026. The minimum wage rate applies to all public and private sector employers, regardless of size or number of employees.

Employers must use the following hourly minimum wage schedule for non-tipped employees:

  • Through December 31, 2020 – $8.56
  • January 1, 2021 – $8.65
  • September 30, 2021 – $10.00
  • September 30, 2022 – $11.00
  • September 30, 2023 – $12.00
  • September 30, 2024 – $13.00
  • September 30, 2025 – $14.00
  • September 30, 2026 – $15.00

I voted for it because by 2026 we should see a rise in inflation due to shortages. However, the Federal bill increases the minimum wage to $9.50 an hour as soon as the bill is passed, raising to $11.00 an hour one year later, $12.50 two years later, $14.00 three years later, and $15.00 an hour beginning the fourth year following passage of the legislation.

While I am generally opposed to increasing the minimum wage because that has traditionally been the entry-level for kids in school, I would prefer to see the minimum wage qualified by age. Raising the minimum wage for part-time students will have an adverse impact on employment. Because of all of the extra-costs for an employer and regulations that politicians think will protect workers, this will merely increase the incentive to replace jobs with self-service screens and robots.

Eliminating employees is a dramatic cost reduction up to as much as 70% for most service-oriented businesses especially in hospitality. The danger of these lockdowns, masks, and social-distancing is that it is not merely breaking the bonds of human interaction, we have heard from corporate clients in hospitality that the prolonged lockdown crisis is shifting the business model toward robots rapidly because they cannot afford to pay staff to sit around for nothing.

We held our World Economic Conference in Orlando at the Hilton which is usually jammed-packed. This time, we had the hotel to ourselves and they were so ecstatic that we were even there. The hotel was running at 5% capacity and all but one restaurant was close. Additionally, there was no room service.

If we do not appreciate that rising healthcare costs are seriously impacting small businesses and their ability to hire staff, the trend toward self-service screens, internet-like ordering, and robots will wipe out entry-level jobs. This is such a serious issue that politicians should not be allowed to play with just to win votes and they think it sounds good. Almost 80% of the economy today is service-oriented. Nobody can destroy an economy like corrupt politicians. Increasing the minimum wage should really be differentiated by age as to not deter the youth from getting their first job. It must be looked at as a whole with all the other regulations and costs. When we were advising Japanese companies who wanted to open up in Europe, those in manufacture we put in Britain because the cost associated with employees were 40% less than in Germany back then. We make strategic decisions globally based upon all the inputs – not just one to put on a show.

Civil Unrest in Spain for the 5th Night


Armstrong Economics Blog/Civil Unrest Re-Posted Feb 21, 2021 by Martin Armstrong

Spain has imprisoned a rapper for insulting the government in his Tweets. Barcelona ​and many ​other Catalan cities, along with Madrid have been erupting in civil unrest as people protest to demand the freedom of rapper Pablo Hasel, who the government sentenced to prison for nine months because of his tweets which were insults against the Crown and the police. These protests, which began in Barcelona against the Mossos d’Esquadra, the Catalan police force, which in turn responded with smoke bombs. These protests are reflecting the frustration over the lockdowns which have erupted into riots, fires, and even looting.

The build-up of frustration has led to civil unrest erupting on just about any excuse. This is more than just a protest over the wrongful imprisonment of  Pablo Hasel. This is simply a reflection of the totalitarian state that governments are trying to impose using this virus as the justification to hide their real agenda – the Great Reset.

XRP & the Rise of Barter


Armstrong Economics Blog/Foreign Exchange Re-Posted Feb 19, 2021 by Martin Armstrong

QUESTION: Martin,

I wonder if you can comment on the potential of the swift system being replaced by Ripple lab’s XRP as a bridging currency between currency pairs making use of their patented “On-Demand Liquidity” system. If this is the case then it would appear the USD is set to be replaced as the world reserve currency commodities being priced in local currency.

The IMF has stated they want to renegotiate the Bretton Woods agreement. Mark Carney the Governor of the Bank of England said at the 2019 Jackson hole meeting that the USD is too dominant and proposed it be replaced by a green cryptocurrency such as XRP.

The world economic Forum is touting Ripple lab’s platform as the future.

Without going full conspiracy theory in this. It would seem plausible that something like this is in the offing

The SEC lawsuit against Ripple seems a little sinister given that the DOJ  already found XRP to be a digital asset, not a security, and has the potential to push Ripple offshore to a more friendly jurisdiction. Which the globalists would love.

I’m rambling, I’m sorry, however, could you speak on the swift system and potential replacement and any other topic I’ve touched on if you have the time or inclination even to dismiss.

Thanks, Martin you were born to live through this moment.

Kind regards

TL

ANSWER: XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger—an open-source, permissionless, and decentralized blockchain technology that can settle transactions in 3-5 seconds. The reason these people are pushing this is not about the dollar, it is to end paper money and thereby they see this as the solution to 6 years of quantitative easing which failed to stimulate the economy because the velocity of money declined as people hoarded their cash instead of spending it. This would also terminate all cryptocurrency.

Either Mark Carney and the IMF are completely ignorant as to why the dollar is the reserve currency that nobody else can displace, or they are deliberately hiding the truth which is a major default on world sovereign debt. The dollar is the reserve currency for three primary reasons.

  1. The US dollar has no restrictions and anyone can issue debt in dollars without controls
  2. The US dollar has never been canceled
  3. The US economy is the largest in the world but with the core consumer market to which the world sells

Europe routinely cancels its currency which introduces risk which prevents it from being used internationally. While they have not canceled the €500 note, few people will accept them for fear of being canceled. Even India canceled its high-end notes which I have from the last time I went to India to meet with our institutional clients there. Only the dollar remains legal tender since 1861 and Trudeau had a law passed in Canada withdrawing the legal tender status of some notes by January 1sy, 2021, which now allows him to cancel all paper money at his pleasure. Canadian dollars now have a risk of cancellation as of January 1st, 2021.

Note that prior to World War I, most bonds issued by foreign countries using in another’s country currency involved the British pound which was the reserve currency prior to World War I. After that, it was the dollar that rose to the status of a reserve currency when Europe decided to blow each other up.

While Germany may be the biggest economy within Europe, the mercantile economic policy and high taxes in fear of hyperinflation since World War II has rendered the Germans near the bottom of the wealth list among the EU. The significance of this is very important. It means that Germany did not develop the same robust economy based upon consumer demand. They relied upon selling things to other countries which was why Kohl was pushing for a single currency to enable Germany to sell even more to the rest of Europe by reducing currency risk.

Pricing commodities in this XRP will by no means eliminate the dollar as the reserve currency. It would require the United States to terminate the dollar and accept XRP. Otherwise, all that will happen is introduce greater volatility forcing American companies into hedging FX risk between the dollar and XRP.

For years, all we ever heard was if they price oil in Euro that will kill the dollar. These people just totally fail to grasp the complexity behind what even makes a currency. Then we have heard how the dollar will crumble to ash because of debt. Yet total sovereign world debt is nearing $200 trillion and the USA is just under 15% of that. These people have no idea of what they are talking about. Other nations are in far worse shape not because of Debt to GDP, but because they lack the underlying consumer-based economy. This is WHY China is diligently following the US model and not that of Germany.  They have turned inward and are moving to generate the world’s largest consumer-based economy which is WHY they will surpass the United States which is being taken over by the same European Marxist agenda which has relegated Europe to the third world status. The Top 10 economies in the world only include three EU countries in nominal terms:

1. United States
2. China
3. Japan
4. Germany
5. India
6. United Kingdom
7. France
8. Italy
9. Brazil
10. Canada

If we measure these economies accounting for purchasing power parity (PPP) exchange rates, which relate the exchange rate between currencies to consumer price levels, the picture changes. China is the world’s largest economy since 2017 in PPP terms according to estimates by the World Bank which uses international dollars to make better comparisons among countries. This introduces FX risk. Therefore, in PPP terms, the U.S. is second with about a 15.8% share of world GDP. The European Union was in third place, contributing $19.9 trillion, or 15.3%, of world GDP.

Therefore, the push behind XRP requires 5G communication speed to be able to instantly clear transactions. Without that, you cannot replace paper currency. Consequently, the only way to move to electronic money in order to eliminate non-taxable hidden cash and the underground economy is to move toward the digital world. In the United States, in 2020, it is estimated that the underground economy is about 11 or 12% of U.S. GDP, or roughly $2.5 trillion total. Politicians look at that and see dollar sign visions in their heads.

Politicians blame their fiscal mismanagement and their political failures NEVER on themselves, but always on we the Great Unwashed who are never trustworthy. Even an IRS, SEC, CFTC, or any agent who audits the private sector begins with the assumption everyone is a criminal. They have to find something or else they did not do their job.

As a result, politicians are obsessed with eliminating paper money to end the hoarding of cash and the underground economy. You hire the teenage girl next door to babysit and then pay her cash. OMG, the government laments, where is our taxes? Or you found a $1 bill in the sparkling lot. They can’t sleep at night worrying about how much they are losing in tax revenue.

Hence, XRP is primarily for that purpose. To eliminate the underground economy. This has been going on for thousands of years. Here is an ancient Roman prostitute token. Roman Empire Tiberius (14-27AD) declared that you could not pay a prostitute with a coin that bore the image of the emperor. So they trade coined these tokens. You would buy the token from a money changer and use that to pay the prostitute. She, in turn, would take them back to the money changer and he would swap them out for money.

No matter how politicians try to eliminate the underground economy, all they will do is give rise to the reestablishment of barter. In prison, cigarettes were money. Then packs of mackerel. Who knows what will emerge? USB sticks?

Canada 2021 Report Now Available in the Store


Armstrong Economics Blog/Canada Re-Posted Feb 18, 2021 by Martin Armstrong

The 2021 Canadian Report is now available. We have gone into the clever change in the law that Trudeau pulled off to allow him to cancel the currency at his discretion as of January 1, 2021. He did withdraw the legal tender status of various notes that are still out there. You can take them to the bank and deposit them in your account, but stripping them of legal tender status means nobody else is now required to honor that currency.

We have covered the political chaos, the debt, the separatist movements, energy, the agricultural crisis, the share market, the Canadian dollar, and gold in terms of Canadian dollars rather than in US dollars with arrays and reversals.

Why Global Warming was a Total Farce & it’s Now Incorporated into the Great Reset


Armstrong Economics Blog/Climate Re-Posted Feb 18, 2021 by Martin Armstrong

QUESTION: Mr. Armstrong, your computer and you have been correct on everything from politics to markets and even climate. You said we would be headed back to global cooling.  Was this based on the solar waves of energy from the sun?

Thank you for the thought-provoking blog

DL

ANSWER: This is the Western Plague in research. They always seek to reduce whatever it is to a single cause and effect. I am so tired of this nonsense about CO2. Here in Flordia, we had a red tide and instantly the politicians were blaming it on farmers that certainly are not in this area. All I did was Google red tides and there it was, the first one reported was by the Spanish during the 17th century long before farmers in Florida using chemicals.

The output of energy from the Sun oscillates but that is NOT the single cause of the effect of global warming and cooling. There are other aspects that come into play such as Arctic Oscillations.

The Arctic Oscillation (AO) refers to an atmospheric circulation pattern over the mid-to-high latitudes of the Northern Hemisphere. The most obvious reflection of the phase of this oscillation is the north-to-south location of the storm-steering, mid-latitude jet stream. This is what impacts the “jet-stream” which they will refer to on weather reports. Thus, the AO can have a strong influence on weather and climate in major population centers in North America, Europe, and Asia, especially during winter. This is something the Climate Change people seem to be oblivious to these days.

The Weather forecasters are probably much to blame because they will refer to the Jet Stream dipping down which brings cold and ice storms to Texas for example. This will typically shut down electricity as we see all over the United States. However, what seems to NEVER be articulated is what makes the Jet Stream dip in the first place? The AO’s positive phase is characterized by lower-than-average air pressure over the Arctic paired with higher-than-average pressure over the northern Pacific and Atlantic Oceans. The Jet Stream is farther north than average under these conditions, and storms can be shifted northward of their usual paths. Thus, the mid-latitudes of North America, Europe, Siberia, and East Asia generally see fewer cold air outbreaks than usual during the positive phase of the AO.

Conversely, AO’s negative phase has higher-than-average air pressure over the Arctic region and lower-than-average pressure over the northern Pacific and Atlantic Oceans. The Jet Stream shifts toward the equator under these conditions, so the globe-encircling river of air is south of its average position. Consequently, locations in the mid-latitudes are more likely to experience outbreaks of frigid, polar air during winters when the AO is negative. In New England, for example, higher frequencies of coastal storms known as “Nor’easters” are linked to AO’s negative phase.

Now look closely at this chart. Note that the strong negative spikes down were going into 1970 and again in the mid-1970s. I really cannot explain why in the West science seems to be void of really comprehending that everything functions in a cycle. Because the summer in 2020 was hot, they immediately say it’s global warming and I am wrong. They shut up then when 50% of the country is freezing right now or claim this is because of CO2 with no proof at all.

During the 1970s, we had climate charlatans calling for a new ice age. Looking at this no different than any time series, the low was 1977 at -3.767 which was followed by a gradual warming trend where the high took place in 1993 at 3.495 on the AO index and the low thereafter was 2010 at -4.266. Thereafter, the AO index swung up into 2020 at 3.417 which was a retest of the 1993 high.

However, 2020 then went into a Panic Cycle and by year-end, it had closed negative extremely rapidly.  This warned that the extreme heat into 2020 would then be followed by a crash into extreme cold into 2021 no different from a market crash pattern. Cyclically looking ahead, it will be extremely cold post-2032 into 2037. If we are going to see a sharp reduction in the population at that time, it will be primarily because of the weather. We are looking at wild swings and post 2032, where we are likely to make new historic lows in this index which will be very cold temperatures. By shutting down fossil fuels, this environmentalist movement may become the primary reason for the drop in population post-2032 that our model is suggesting most likely brought on malnutrition as food shortages dominate the end of this cycle. Life expectancy is already declining and is now down 15 years from the high. This will decline further into 2024 accelerated by the lockdowns.

Here we have the front cover of Time Magazine predicting climate change back to an ice age. That was dated January 31, 1977 corresponding to the sharp spike down into a negative AO in 1977. In the April 28, 1975 edition of Newsweek, they actually proposed solutions for climate change that included outlawing internal combustion engines.

This is when Al Gore came to the rescue. Just like the poles flip on the sun every 11 years, Al Gore flipped the argument from manmade cooling to manmade warming to save the end goal — eliminating all fossil fuels regardless of the evidence. Who needs science when you can just make up the studies and cherry-pick the facts to support whatever you want.

The extreme cold also hit in 2010. I remember in New Jersey, we had not seen snow like that since I was a kid. The increase in volatility is heading into a cataclysm by 3021-2037. Indeed, 2020 closed negative warning that this winter would be a highly volatile and cold year which may even exceed 1977 or 2010 on the negative side with respect to the AO index.

We now have the World Economic Forum, Bill Gates, and Al Gore, all swearing the global warming trend from the 1977 low into the 1990s was all man-made added by soccer-moms drive the kids around in SUVs. I just cannot get over the total lack of any scientific investigation that is now being used to destroy economies and jobs because these people are total idiots when it comes to understanding weather, science, or cycles.

No worries, you will NEVER read anything about cycles in mainstream media. They will NEVER print anything along these lines because they will NOT tolerate any possible debate. The United Nations needs the climate change argument for that is the only way they can gain power. They argue that no single country can stop global warming. It will take a one-world government with mandatory compliance by member states. Yes, my bias is to freedom whereas their agenda is to suppress the world.

Then there is the complexity of the Milankovitch Cycles. The climate activists dismiss it because they argue while physical evidence shows that the variation in Earth’s climate is much more extreme than the variation in the intensity of solar radiation calculated as the Earth’s orbit evolves. If orbital forcing causes climate change, science needs to explain why the observed effect is amplified out of linear proportion to the theoretical cause. They simply do not understand the complexity and it cannot be reduced to a single cause and effect as they have done with CO2.

Still, there is other research the United Nations ignores because they are using climate change to argue for a one-world government. The real experts on the oceans and how they function were at the Lamont-Doherty Earth Observatory at Columbia University. It was in 1956 when they published A theory of Ice Age by Maurice Ewing and William Donn. They were the most influential oceanographers to date, yet the Global Warming people have completely ignored their work and bastardized it for political gain. The core of what they unveiled was that if the Arctic Ocean would get warmer and the ice melted, this would signal an Ice Age, not the sinking of coastal cities. A warmer Arctic Ocean would mean that water would flow more freely between it and the Atlantic, dissipating the cold making the Atlantic colder. There is the key to an Ice Age. If all the ice melted in the Arctic Ocean leaving open water that was then warmer by mixing with the Atlantic, then a warmer Arctic Ocean surrounded by colder land around it would produce evaporation and that water would then return back to the land as snow. More snow that falls in Greenland and Northern Canada is what makes glaciers grow deeper. When the Arctic Ocean is covered in ice, then there is NO EVAPORATION and thus we do not move into an Ice Age.

We are dealing with people who think only in a single dimension and constantly try to reduce everything to a single cause and effect.  They are seriously causing the West to collapse and their theories of Climate Change are leading us into absolute disaster post-2032. They will not tolerate opposition. To further illustrate my point, Joe Biden has taken down your right to Petition the White House. The petition system has been around for many years. There were hundreds of active petitions but Biden did not want petitions filed because his Great Reset and Climate Change agenda is opposed by Republicans he refuses to answer.

Moreover, he is imposing his Build Back Better Climate Change Agenda by executive order to deny even Congress the right to debate any of these issues. Biden is taking his marching orders from the World Economic Forum and the United Nations – not the American people. This is outright tyranny and anti-Democratic no matter what side you are on. If the White House had previously gotten 100,000 signatures, the White House was supposed to give an answer.

Under his previous Obama Administration, there was the “Free Assange” petition that the Obama Administration was obligated to answer. Biden does not want to answer anything with respect to his Build Back Better or Climate Change Agenda where he is taking direction from the United Nations and the World Economic Forum. So much for We the People! Biden is doing the very same thing as Big Tech – censorship.

The Biden White House does not promote unity nor does it represent 49.6% of the population it did not win. Biden has fully embraced that Cancel Culture where someone is shutdown from social or professional circles both online and in the real world. Those who are subject to this ostracism are said to be “canceled” so Biden has canceled 49.6% of the American public. Trump’s lawyer has been canceled by the law school for representing Trump during the impeachment. Lawyers are supposed to defend even the guilty. Looks like this is one law school you better not attend!

As one client wrote in: “I really enjoy your work. Thank you for sharing it with us. The world is going crazy and we are just along for the ride.” JC

Facebook & Zuckerberg’s New World Order – Tyranny


Armstrong Economics Blog/Tyranny Re-Posted Feb 18, 2021 by Martin Armstrong

When will these people stop with the censorship that is designed to push an agenda and why is it so important? In a free society, you debate the issues. We have turned into a tyrannical society where we are to be denied the right to think for ourselves or consider that whatever they are pushing is not compatible with our personal desires. There is just something wrong with what is going on. If someone says these are cloned aliens, they have a right to say that and the majority of people will listen and laugh. Sure, there are always a few who will believe such things. But this is what humanity is all about. We even have two primary political parties because people will have different views. This censorship is trying to impose ONE PARTY RULE and that is tyranny.

The Strange Events of Chance Behind Economic Revolutions


Armstrong Economics Blog/Economics Re-Posted Feb 17, 2021 by Martin Armstrong

This is an engraving with a modern watercolor of machines making cotton thread by performing mechanical versions of carding drawing and roving in a mill in Lancashire England about 1835. What the Great Reset is all about is trying to ACCELERATE this Fourth Industrial Revolution by regulation to save the planet, as they see it. They actually are using the lockdowns to destroy employment and industries that they see as unfit which is why you hear Boris Johnson saying he will provide free education to retain people for a new type of job – John Kerry telling coal miners to learn how to work in a factory to make solar panels. They look down upon the people as just economic slaves. If you do not enjoy what you do, you will never do a good job. They simply do not understand human nature.

When the First Industrial Revolution closed down many of the small craft shops, lace-makers, for example, emigrated to the North of France. When they did, they took their English little bulldogs with them. The popularity of these little dogs spread from Normandy to Paris and soon the English lace-makers/breeders had a lively trade, exporting small bulldogs throughout France where they began to be called Bouledogues Français. They were favorites of ordinary Parisians such as butchers, cafe owners, and dealers in the rag trade. They became notorious as the favorites of the Parisian streetwalkers, les belles de nuit. The famous artist Toulouse Lautrec depicted in several works Bouboule, a Frenchie owned by Madame Palmyre, the proprietress of a favorite restaurant “La Souris.”

By 1896, the French Bulldogs made it back to England and they became the instant most popular breed by 1896 and they made the cover of the 1897 Westminster Kennel Club. By 1908, this photo of Anna Maria Sacher (1859-1930) who was the Austrian hotel heir, prominently displaying her two French bulldogs shows they were the darlings of high society.

The former English lace-makers who were put out of a job by the First Industrial Revolution stumbled upon an entirely new field of employment. That was not something that government could regulate or dream of no less decree. You cannot direct how the Fourth Industrial Revolution will unfold. It is completely absurd of Klaus Schwab to think he can accelerate it and direct it in such a manner to immediately destroy jobs with no idea how to provide new employment. Not everyone can make solar panels and wind turbines.

How I ended up as an adviser was all by chance. My father wanted me to go to law school, by I did not want to be a lawyer. He pushed me into computers which I did to please him. When I returned to trading, which I did love, because I turned down shipping off to Greenland, Guam, or Vietnam at RCA,  I then realized I could write a program to assist me back in the 70s before there was even the first IBM XT. I was a market-maker in precious metals and then was going to retire after 1980 when the government wanted to declare me a bank because gold was still money under the Constitution. I had provided the advice to dealers provided they gave me the business.

When I was going to retire, that’s when my clients offered to pay for the advice. So I gave it a shot and the next thing you know, I became the highest-paid adviser in the world at $2,000 an hour they set the fee – not me. The journalist Joseph Perkins, called me back to say after talking to my clients around the world, he said that they commented that if I charged $10,000 they would pay it. Because I was involved in foreign exchange and there were few people around back then, I became international because of the FX markets. The Wall Street Journal wrote about it back in 1983 but focused only on what I made rather than what I did.

Consequently, there is no possible way the government can direct the Fourth Industrial Revolution and Klaus Schwab just fails to understand that things develop without some grand master plan. He talks about AI but does not have the slightest idea of real AI or how it even functions.

Amsterdam Has Retaken Financial Capital of Europe? Was this Cyclically on Time?


Armstrong Economics Blog/BRITAIN Re-Posted Feb 17, 2021 by Martin Armstrong

EURONEXT has now beaten out London retaking back the financial capital insofar as stock trading is concerned thanks to Boris Johnson and of course BREXIT. The numbers are in and Amsterdam surpassed London with an average of €9.2bn shares a day traded on Euronext in January 2021, which was been a 400% increase over December compared to London trading which dropped to €8.6bn retaking its historic position that existed before the Dutch lost it to London.

In 1689, the English Parliament declared that James II had abdicated by deserting his kingdom which was to exclude him and his Stuart heirs because they were all Roman Catholics. Parliament declared that “it hath been found by experience that it is inconsistent with the safety and welfare of this protestant kingdom to be governed by a papist prince”. Thereafter, the Sovereign was required in their coronation oath to swear to maintain the Protestant religion. Parliament in turn offered the throne to William (reigned 1689-1702) and Mary (reigned 1689-94) as joint monarchs.

They had to accept a Bill of Rights drawn up by a Convention of Parliament thereby restricting the Sovereign’s power and reaffirmed Parliament’s claim to control taxation and legislation. Hence, therefore, this Bill ensured Parliament could function free from royal interference forbidding all future sovereigns from suspending or dispensing with laws passed by Parliament in addition to maintaining a standing army in time of peace without Parliament’s consent. Moreover, the sovereign was also forbidden to impose taxes without Parliamentary consent. It was the lack of representation in Parliament by the American colonies which gave rise to the no taxation without representation slogan of the American Revolution.

One of the Dutch William’s main reasons for accepting the English throne was to reinforce the struggle against Louis XIV of France. William’s foreign policy was dominated by the priority to contain French expansionism. England and the Dutch joined the coalition against France during the Nine Years’ War, 1689-1697. Eventually, France was compelled to recognize William as King of England under the Treaty of Ryswick (1697),

The Bank of England was established in 1694 as the expertise from Amsterdam was imported to London. The Bank of England was used at first to raise money for the war by borrowing. It did not circumvent the King’s financial reliance on Parliament, as the national debt depended on parliamentary guarantees. Yet, William’s Dutch advisers were resented in London. In fact, in 1699 his Dutch Blue Guards were forced to leave the country.

The Royal Exchange had been founded by English financier Thomas Gresham and Sir Richard Clough on the model of the Antwerp Bourse. Gresham represented the English crown in Antwerp. Gresham convinced the Crown to open the Royal Exchange in London in 1565 using the Antwerp model. However, it was first known as “the Bourse” until Queen Elizabeth I, after a visit on January 23, 1570, changed its name to the Royal Exchange. It was opened by Elizabeth I of England in 1571. Gresham saw the need for a central place where foreign exchange dealers could meet and conduct business. He recognized the deplorable state of the money supply and that this now made foreign exchange dealers a necessity for trade. He constructed the London Exchange between 1566-1568. It finally received royal recognition and thus it became known as the Royal Exchange in 1571. Unfortunately, it was completely destroyed in the Great London Fire of 1666.

Actually, during the 17th century, stockbrokers were not allowed in the Royal Exchange because they were regarded as rude huxters. Stockbrokers were seen as a lower class compared to foreign exchange and debt. They were confined to off-exchange establishments such as Jonathan’s Coffee-House. Where Llyod’s Coffee House emerged as the place for insurance eventually becoming Lloyd’s of London, the stockbroker began in a coffee house administered by John Castaing who first began listing the prices of a few commodities, such as salt, coal, and paper in 1698. This eventually moved to Garraway’s Coffee House where public auctions began to emerge. They would last based on the length of a tallow candle that could burn. They became known as “by inch of candle” auctions. As the activity grew, the trade began to attract more companies forming which became an IPO market to raise capital.  These are the earliest evidence of organized trading in marketable securities in London which was the resurrection of stock trading from Ancient Rome.

The Royal Exchange established by Thomas Gresham was destroyed in the Great Fire of London which was a major event that swept through the central parts of London from Sunday, September 2nd to Thursday, September 6th, 1666. The fire actually destroyed the medieval City of London which was inside the old Roman city walls. Eventually, the Royal Exchange was rebuilt and re-established in 1669. It was at this time that the stockbrokers joined the Royal Exchange bringing an end to the coffee house period. However, the second Royal Exchange also burned down, on January 10th, 1838. It had been used by Lloyd’s insurance market, which was forced to move temporarily to South Sea House following the 1838 fire.

The current Royal Exchange building was constructed in 1840 and stands opposite the Bank of England. Gresham’s Royal Exchange surpassed Antwerp first because of the fire in 1583 which destroyed the Bourse. Yet it was immediately rebuilt to the same plan. Then came the Siege of Antwerp (1584-1585) and the surrender to the Spanish Army which killed the Dutch trade. Antwerp was simply unable to compete with Amsterdam and London.

What is most curious is that 2021 is precisely 314 years from the birth of Great Britain. The events from the year 1707 created on May 1st the Treaty of Union and its ratification by the 1707 Acts of Union. The fact that Amsterdam has retaken the lead in stock markets seems to be right on schedule.

Boris Johnson has destroyed the British economy and produced just about a 10% decline in GDP for 2020 – the worse collapse in 300 years! So here we have Amsterdam overtaking London in 2021 which is 314 years from the birth of Great Britain. It is amazing how rapidly Boris Johnson has wiped out the British economy.