Tag Archives: socialism

Aug 18 2018

The British Pound & The Conservative Split


Armstrong Economics Blog/BRITAIN

Re-Posted Aug 18, 2018 by Martin Armstrong

QUESTION: Mr. Armstrong, It seems that the conservatives have split into two parties here. It is the same nonsense that they pulled to overthrow Margaret Thatcher. I really do not understand why they think we have to be part of the EU which is so obviously a sinking ship. As we always said here, when there is a good fog in the Channel, you would never know Europe was even there.

I read your piece on how France can object and prevent a trade deal for rest of the members. France is a hopeless communist country. Their stock market is not even worthy of investment. It has never made a new high since 2000. My question is simple. Does your forecast for the pound necessitate that the conservatives really mess up this Brexit escape from the EU?

LN

 

ANSWER: The basic trade numbers show that the United States received the most British export goods last year, followed by Germany and France. The top trade partner for imports was Germany, followed by the United States and China. The UK exported £31.7bn worth of products to the US. Britain has NEVER benefited from the EU. Your economic growth has declined ever since joining back in 1973. I use to have detailed conversations about this with Margaret Thatcher. Britain’s biggest trading partner is the USA yet she cannot negotiate trade with the USA as long as it remains inside the EU. It is absolute insanity.

 

Now, as for the pound, unfortunately, it continues to point lower against the dollar. Interestingly, the computer pinpointed the crisis in the Euro would begin during the 3rd quarter here in 2018 where we had both a Directional Change and the beginning of a Panic Cycle. Brexit will end Friday, March 29th, 2019. Note that there is a turning point showing up in the 1st quarter next year but the big one will be the 3rd quarter 2019.

 

As far as price against the dollar, there is support technically in the 92 area. The very worst support is at 53, but that does not seem likely absent war in Europe.

Aug 18 2018

Will Inflation Return to the Eurozone?


Armstrong Economics Blog/Economics

Re-Posted Aug 18, 2018 by Martin Armstrong

There are three distinct types of inflation – Demand, Asset & Currency. The major type of inflation that everyone assumes is DEMAND. This unfolds when there is actually an economic boom and people have confidence in the economy. Asset Inflation is when there is no real demand from the consumer but the asset values rise primarily from foreign investment. This is normally witnessed in real estate, stocks, and bonds. There is a subdivision of Asset Inflation that is concentrated to a single area such a food that is driven by a collapse in supply due to perhaps a drought or flooding. The third type is Currency Inflation. This is when the actual nominal value of assets do not change, but the currency fluctuation will attract or detract foreign investors because of the large fluctuation in the value of the currency on world markets.

During the 1970s, I always bought German cars. A Porsche in 1970 was about $12,000 and by 1980 it was $50,000. The rise was really created by the decline in the dollar which created the perception that German cars would so well built, they would appreciate. I would drive one for 2-years and sell it used for a profit. This was the net result of CURRENCY INFLATION. As the Euro declines, we will see inflation in the Eurozone rise sharply. The ECB will proclaim victory after 10 years, but this has nothing to do with Quantitative Easing.

Aug 17 2018

How We Were Created


   “US” by Paul Genova

 
  (Mr. Paul Genova has been President and Chief Operating Officer of Wireless Telecom Group Inc since June 30, 2016.

I haven’t said too much about this election since the start…but this is how I feel….

  I’m noticing that a lot of people aren’t graciously accepting the fact that their candidate lost.

In fact you seem to be posting even more hateful things about those who voted for Trump.  Some are apparently

“triggered” because they are posting how “sick” you feel about the results.

  How did this happen you ask? Well here is how it happened!
 
You created “us” when you attacked our freedom of speech.

  You created “us” when you attacked our right to bear arms.

  You created “us” when you attacked our Christian beliefs.

  You created “us” when you constantly referred to us as racists.

  You created “us” when you constantly called us xenophobic.

You created “us” when you told us to get on board or get out of the way.

You created “us” when you attacked our flag

  You created “us” when you took God out of our schools.

  You created “us” when you confused women’s rights with feminism.

  You created “us” when you began to emasculate men.

  You created “us” when you decided to make our children soft.

You created “us” when you decided to vote for progressive ideals.

  You created “us” when you attacked our way of life.

You created “us” when you decided to let our government get out of control.

  You created “us” the silent majority

  You created “us” when you began murdering innocent law enforcement officers.

  You created “us” when you lied and said we could keep our insurance plans and our doctors

  You created “us” when you allowed our jobs to continue to leave our country.

You created “us” when you took a knee, or stayed seated or didn’t remove your hat during our National Anthem.

You created “us” when you forced us to buy health care and then financially penalized us for not participating.

        And we became fed up and we pushed back and spoke up.

  And we did it with ballots, not bullets.

  With ballots, not riots.

  With ballots, not looting.

  With ballots, not blocking traffic.

  With ballots, not fires, except the one you started inside of “us”

  “YOU” created “US”.

  It really is just that simple.

Everyone needs to see this. Post and resend.

 

 

Aug 17 2018

Omarosa Manigault-Newman: The Journalist


Published on Aug 15, 2018

Omarosa unleashes ‘Unhinged’ and the news media immediately trust her allegations about Trump. What happened to real journalism? And are we falling into her trap by doing this show? Scott Ott, hosts Bill Whittle and Stephen Green, in this episode of ‘Right Angle’, brought to you by the members at http://BillWhittle.com Subscribe and become a patron producer spreading the message of liberty around the world, in an entertaining way. Other topics on this week’s Right Angle include a new scientific breakthrough that reverses aging, what killed off Homo erectus, and a look at “How we’re doing” as a country. Members get an extra episode each week, plus a Backstage video pass to our pre-production meeting. Bill Whittle, Stephen Green and Scott Ott have produced a three-man news commentary and humor show for about nine years, every week.

 

Aug 17 2018

WHITE SUPREMACISTS, SEXISTS and MORONS


Published on Aug 14, 2018

In the latest Sixty Second Smackdown, Bill shows that sometimes you get agreement where you least expect it.

Aug 17 2018

Real Estate – Leverage – Transition to the Reset


Armstrong Economics Blog/Real Estate

RE-Posted Aug 17, 2018 by Martin Armstrong

QUESTION: Hi Mr. Armstrong,

Thank you for the daily blogs on world events with an independent analysis that makes sense. I find them better than investment bank reports that just make up the pages.
Could you please elaborate on what happens to properties when the monetary reset comes? If people lose confidence in fiat money and hoard real assets, wouldn’t that be a positive thing for properties? Or only if they are bought out in full (i.e. no mortgage)?
Thank you.
Regards,
S
ANSWER: The problem with real estate is the LEVERAGE. The value of a house has been escalated due to the fact that in the USA you can borrow using 30 years of future income. The crisis that unfolds is the collapse in the mortgage market. Then we will see a deleveraging of real estate. However, that said, real estate makes the transition as a hedge during a reset.  For example, during the German hyperinflation that led to a currency reset, that new currency that was issued was backed by real estate – not gold. Keep in mind that as the currency declines, then the repayment cost of a mortgage declines. On the one hand, mortgages will be unavailable but those who hold the mortgage lose the most. Therefore, you should be able to pay off your mortgage with cheap currency assuming you have hedged and make it through the transition.
Aug 17 2018

California Real Estate Peaks and Begin a Crash


Armstrong Economic Blog/Real Estate

RE-Posted Aug 17, 2018 by Martin Armstrong

California has joined the states with not just the highest taxes in America, but it has become one of those states that people are just leaving resulting i9n a net outward-migration. There is a logical consequence when a state becomes a place people are trying to flee from – real estate MUST decline in value. Already, sales of both new and existing houses and condominiums in Southern California has declined 11.8% year over year. Prices rallied and reached a record high in 2018. The median price paid for all Southern California homes that were sold in June 2018 was a record high reaching $536,250, according to CoreLogic. This was reported as a 7.3% increase compared to June of 2017. When you see such short-term surges in a market, that is often the sign of how every market peaks. Real estate is no exception.

Many have touted for years that California property leads the nation. Therefore, whatever trend appears they will spread to the rest of the nation. While we do not necessarily agree with that statement, nonetheless, real estate will be on the decline in most states where taxes are rising. Property is still going to rise in the 7 states without income tax. For those who are unfamiliar with Socrates, we have created indexes for real estate on a worldwide basis. Here is the page you can view what is available.

California may seem to be a leading indicator, but this appears to be with respect to direction only. While Southern California reached record highs in property values in 2018, this appears NOT to be a leading factor, but a lagging one. Our index for the nation as a whole with a limited focus to Residential peaked in August 2016. We have NOT yet elected a Monthly Bearish Reversal. Trump has clearly made a major economic difference. Capital has been returning home and this has helped to create jobs and soften the economic decline in the USA compared to Europe and Asia. This will also have a fundamental backdrop to the dollar.