Tag Archives: socialism

Sep 13 2018

Is it Time to Turn the Lights Out on Turkey and just Take Your Losses and Run?


Armstrong Economics Blog/Turkey

Re-Posted Sep 13, 2018 by Martin Armstrong

Just when you thought President Recep Tayyip Erdogan was really off the reservation, he suddenly appears off the planet. Erdogan has appointed HIMSELF as chairman of Turkey’s Sovereign Wealth Fund and got rid of the entire management staff. It looks like Erdogan now thinks he can force the free market to do as he commands if he is also the trader for the Sovereign Wealth Fund.

Of course, Treasury and Finance Minister Berat Albayrak, Erdogan’s son-in-law, will also sit on the board, according to a decree published in the Official Gazette. Anyone who actually thinks that Turkey can recover is out of their mind. The fund was formed to try and capitalize on state assets and put a lid on market turmoil in the wake of a failed coup attempt. This is a guaranteed nightmare in the making. We are witnessing a stubborn politician who has become a dictator and believes there is nothing beyond his power. It is just approaching the time to turn out the lights on Turkey as any viable place for investment. Turkey is now approaching the highest Country Risk for investment on the board

Sep 13 2018

Who is the Fool? Trump or Woodward?


Armstrong Economics Blog/Economics

Re-Posted Sep 13, 2018 by Martin Armstrong

According to CNBC, Bob Woodward reported that Trump told Gary Cohn, the former Goldman Sachs/director of the National Economic Council to just print more money to reduce the national debt. Woodward reports this discussion:

Trump: “Just run the presses—print money.”

Cohn: “You don’t get to do it that way. We have huge deficits and they matter. The government doesn’t keep a balance sheet like that.”

Here is a chart of the US CPI not seasonally adjusted. It has begun its sharp advance since the Floating Rate System was adopted in 1971 with the fall of Bretton Woods. In spite of borrowing, inflation over time has actually advanced more aggressively than if we had just printed instead of borrowed.  Cohn has said the book “does not accurately portray” his experience of the White House. This claimed quote demonstrates that someone is seriously out of touch with economics.  Actually, Trump is correct. Now we have Quartz joining the media calling Trump an idiot confirming they too are clueless about debt and printing. In fact, if you did just print the money and retired the debt, it would be DEFLATIONARY and not INFLATIONARY from the budget perspective because these people are clueless themselves about how the national debt works.

 

Before 1971, the debt could not be used as collateral for loans such as Savings Bonds. If you needed the money, you were forced to cash them in.  Under this system, it was logically less inflationary to borrow than to print. However, post-1971, you buy T-Bills and post them as collateral to trade futures. The distinction between borrowing and printing has been turned upside down. A national debt is now worse than printing because itis money that now pays interest forever. Then there is no intention of ever paying off the national debt.

 

 

The truth is had we printed since 1971 instead of borrowing, there would be far less of an economic crisis compared to what we face today. If we simply printed to pay off the national debt, Social Security would suddenly become a Wealth Fund that actually made money instead of a Slush Fund for politicians. Now, Social Security can only invest 100% in US government debt and then the Fed lowers the interest rate to “stimulate” the economy and Social Security goes broke forcing higher taxes. Up to 70% of the national debt at times has been purely accumulated interest which never benefited anyone.  It competes with the private sector in what we call the “flight to quality” and it forms the bank reserves. What is never discussed is the fact that US debt is also the reserve currency of nations – not paper dollars. That means that the interest we pay is exported and it stimulates foreign economies – not domestic.

So who is crazy here? Trump or Woodward? To keep borrowing year after year is insane. To monetize the debt will be DEFLATIONARY from the perspective of government expenditure. In 2019, interest expenditures even at this low level of interest rates will EXCEED military expenditure.

Woodward is by no means qualified to criticize Trump on such an issue he clearly does not even understand. Trump should really address the nation and explain this problem very simply. I will be glad to supply the charts.

Sep 12 2018

California Man Arrested After Trying to Stab Republican Congressional Candidate…


Re-Posted from The Conservative Tree House on September 11, 2018 by

Against the ongoing physical attacks and assassination attempts by the political left against Republicans (Rand Paul, Steve Scalise and Lee Zeldin); and amid instructions from Democrat Maxine Waters to target political opposition (Sarah Sanders, Kirstjen Nielsen, Pam Bondi etc); and with the mid-term elections less than two months away; the latest attack against republican candidate Rudy Peters becomes even more alarming.

According to police and media reports, Mr. Farzad Fazeli, 35 (left), was arrested after attempting to stab Republican congressional candidate Randy Peters with switchblade in Castro Valley, CA.

Mr. Peters is running for congress against incumbent Democrat Eric Swalwell, a notorious face of the antagonistic left.

Peters survived serious injury thanks to a malfunctioning switchblade, the Alameda County Sheriff’s Office said Tuesday. The attempted stabbing was preceded by Fazeli making “disparaging remarks” about the Republican Party, according to the sheriff’s office.  (read more)

Representative Eric Swalwell responded to news of the attack with a curious tweet.  Curious due to the position of the  unnecessary word “But”.

 

 

Eric Swalwell

✔ @ericswalwell

US House candidate, CA-15

On Sunday, my opponent @PetersCongress was attacked at his campaign booth in Castro Valley. I’m glad to hear Mr. Peters is okay. But it’s NEVER okay to use violence to settle political disagreements (or any disagreement). Fortunately, @ACSOSheriffs arrested the suspect.

Sep 12 2018

Oh My – Canadian Foreign Minister Left NAFTA Negotiations To Attend “President Trump is a Tyrant” Conference…


Re-Posted from The Conservative Tree House on September 11, 2018 by

Jumpin’ ju-ju bones.  Hat Tip to Ezra Levant on Twitter – This is going to go down in the history books of bad diplomacy.  You have to watch the first 2 minutes of this video.  Canadian Foreign Minister took leave during the middle of critically important trade negotiations with U.S. Trade Representative Robert Lighthizer to attend a Women in the World conference in Toronto.

Check out the conference introduction video (first 01:30) “Taking on the Tyrant”, and the visual of Canadian trade negotiator on stage to deliver her remarks (next 30 seconds).  Consider that Ms. Freeland made this decision during the most critical trade negotiations in her country’s modern history.  The outcome of the U.S-Canada trade negotiation will determine the next several decades within the Canadian economy.  Now Watch:

.

Think about the level of ideological tone-deafness here. This is simply off-the-charts echo-chamber crazy. Canada needs a positive trade outcome; their economy is already on the ropes; and Freeland considers this a good idea?  Unreal.

Ezra Levant 🍁

✔ @ezralevant

Holy sh*t.@cafreeland left NAFTA negotiations to speak on a panel called “Taking on the Tyrant”.
Who do you think “the tyrant” was?

Look at the video intro to that panel. And then look at Freeland’s jubilation.

I guess it’s auto tariffs after all.https://www.youtube.com/watch?v=IDKDSqPuODk …

Sep 12 2018

Now we have IREXIT forming in Ireland


Armstrong Economics Blog/European Union

Re-Posted Sep 12, 2018 by Martin Armstrong

There is a new Irish political party emerging in the Republic of Ireland to promote leave the EU, which was inspired by the successful Brexit movement. Theresa May has really messed up the entire BREXIT movement and at the same time, this has exposed Europe for what it really is – a power and money grab that has been resentful of the British probably from inception since without Britain, Europe would be speaking French when they stopped Napoleon and the German when they stopped Germany. Without Britain, Europe might not exist as it does today. Then add the Irish who saved civilization for the barbarians burned everything in Europe creating really the Dark Ages and it was the Irish monasteries who saved the old knowledge along with the Arabs.

So now we have IREXIT Freedom party, which has launched in Dublin who want wants Ireland to “take back control” from Brussels. The party plans to run candidates in next year’s European Parliament elections and the 2021 Irish general election. Meanwhile, the European Union is in “mortal danger” warns the budget Commissioner Günther Oettinger and has stated that member states are not complying with EU budget directives. He warned Ital will suffer huge penalties if it does not comply. In reality, we are looking at the occupation of Europe by the EU which conquered the continent with an idea rather than troops and guns as was the approach of Napoleon and Hitler.

Sep 12 2018

Hoard of Roman Gold Found from the Last Days of Rome


Armstrong Economics Blog/Ancient History

Re-Posted Sep 12, 2018 by Martin Armstrong

There were more than 100 gold Roman coins discovered in a buried hoard in the Cressoni theatre in Como, north of Milan. What I have examined from the photographs supplied to me, is that this is a hoard from the virtual fall of Rome. The coins I identified were from the Puppet Emperor of Ricimer, a Germanic general who ruled Rome through puppet emperors going into the end of the Western Empire. His power emerged in 461AD until his death in 472AD. The official fall of Rome took place in 466AD. After Ricimer’s death, the Germanic King of Italy, Odoacer deposed the last Western Emperor Romulus Augustus in 476AD, which is considered to mark the fall of the Western Roman Empire.

The photographs of the coins I reviewed clearly show the puppet Emperor Libius Severus III (461-465AD) was rather common in the hoard. This established that the hoard is from this period forward meaning it was a stash place for someone during the fall of Rome. Obviously, the person did not live to come back to retrieve his coins. These coins are worth probably $1 million+ depending upon the emperors in this entire batch which might be discovered. It could possibly rise to at least the $2 million valuations.

Sep 12 2018

Canada’s Conservative Split Forming a New Party


Armstrong Economics Blog/Canada

Re-Posted Sep 12, 2018 by Martin Armstrong

Maxime Bernier PC MP is a Canadian businessman, lawyer, and politician, who is currently serving as Member of Parliament for the Quebec riding of Beauce, having been elected four times with a majority of the vote. He has pointed out that it is always the ordinary taxpayers who ultimately have to pay for all these benefits promised by the government. He has argued that the Conservative Party is not doing enough and that it’s just not worth it. He has characterized that people are voting for Trudeau with “rational ignorance” that will lead the nation into disaster. The Globe and Mail reported that 17% of Canadians said they were open to voting for a new conservative party led by Maxime Bernier. Politics is fragmenting everywhere and some see Bernier as Canada’s semi-version of Trump, although he has been a longstanding politician

Sep 11 2018

Couple Accused of Stealing Donations for Homeless Man Will Likely Face Criminal Indictment…


Re-Posted from The Conservative Tree House on September 10, 2018 by

Wow, this is very disappointing.  Last year a woman named Kate McClure posted a GoFundMe campaign for a homeless man named Johnny Bobbit after he gave her his last $20 for gas in her car.  Mrs. McClure raised over $400,000 for Mr. Bobbit.

After Mr. Bobbit didn’t receive much of the the money he found an attorney to file a civil lawsuit.  Last week the police showed up with a search warrant at the home of Katie McClure & Mark D’Amico and removed a BMW automobile, several Louis Vuitton bags, jewelry, computers and financial records.

Today attorneys for Mrs. McClure and Mr. D’Amico dropped their client, and in a court filing stated the attorneys believe the couple will likely be indicted for fraud.

NEW YORK – […] Ernest Badway, the lawyer for defendants Kate McClure and Mark D’Amico, asked a Burlington County judge Friday to postpone veteran Johnny Bobbitt’s civil case against them while they’re investigated criminally for possible misuse of the $400,000 donated to Bobbitt last year, the filing shows.

“Since it is expected that one or both of the Defendants will likely be indicted, my firm and I will no longer be able to continue our representation of them in this matter,” Badway wrote in the motion for a stay in the case, which was granted Monday, moving the next proceeding to Dec. 7.

[…]  Bobbitt recently claimed the couple cut him off and refused to give him the remaining money. His lawyers told The Post they blew the cash on lavish shopping sprees, where they purchased Chanel sunglasses, a new iPhone and a collection of Nikes.

The couple originally said there was $150,000 left of the money and they were withholding it because they were concerned Bobbitt would blow the cash on drugs. When Bobbitt filed suit against the couple in August, a judge ordered the couple to turn over what was left of the money but by then, Badway told Bobbitt’s attorneys nothing was left of the $400,000. (read more)

Bad, bad ju-ju…

Sep 11 2018

Who was the Richest Man in Ancient History


Armstrong Economics Blog/America’s Economic History

Re-Posted Sep 11, 2018 by Martin Armstrong

QUESTION: Mr. Armstrong; You are a history buff. Who was the richest person in ancient times? Has there ever been a trillionaire?

PD

ANSWER: The Roman Emperor August. He is believed to have been worth in current dollar terms nearly $5 trillion. The only other person to have reached the trillion dollars net worth status was King Solomon of Judaea. After Octavian/Augustus defeated Marc Antony and Cleopatra, he then possessed the entire wealth of Egypt. In this respect, the wealth really did belong to him. Some have attributed the entire wealth of nations conquered and argued that Genghis Khan was worth probably 100 trillion dollars. However, the Roman system was rather different. Even taxation for a governor of a province would be owed by the governor to the state so whatever he would collect fell to him personally.

Marcus Licinius Crassus was perhaps one of the richest private men in Roman history. He amassed an enormous fortune through real estate speculation buying confiscated property seized by Marius from the supporters of Sulla. Crassus’s wealth is estimated by Pliny at approximately 200 million sestertii. Plutarch says the wealth of Crassus increased from less than 300 talents at first to 7,100 talents. An Attic (Greek, Athens) talent was the equivalent of 60 minae or 6,000 drachmae. A silver Drachm was generally 15mm in diameter with a weight of 4.20 grams. In Roman terms, this was about 26 kilograms (57 lb). If we take Plutarch’s measurement of wealth, that would be 42.6 million denarii.

A Roman soldier earned 225 denarii a year. Today, the average soldier in the US army earns $48,538 per year. That would approximately be $9.189 billion. If we take Jeff Bezos who is reported to be worth $164 billion based upon his stock in Amazon, that works out to the annual salary of 3.4 million soldiers compared to Crassus’ worth being 189,333 soldiers. However, the real difference is that Crassus’ wealth is cash whereas Bezos’ wealth is the current value of a stock. If he tried to sell it for cash, the value would be significantly less.

Crassus’ son, Publius Licinius Crassus (c 86BC – 53 BC), served under Julius Caesar. He did issue coins during the Republic as a “moneyer” who was a person authorized to issue the coins during the Roman Republic. The Senate actually controlled the quantity of money to be produced. There would be a “State of the Union” type of address to the Senate where they would be given the account of money on hand and what they expected the annual expenses would be. The Senate would then authorize the number of coins to be issued that fiscal year. The Quaestors handed the raw bullion and they would turn that over to the official who was the “moneyer” for that year. The moneyers would decide on the design to be issued which often celebrated his ancestors. The coinage would be struck and then handed back to the Quaestors for the expenditure of the government. The office of a moneyer continued into the Imperial period.