We will have the BREXIT report out next week. This is incredibly important for the fate of Europe hangs in the balance. Politicians are only interested in saving their own jobs. They do not care about the people and the markets reflect this arrogance.

Nobody has seen a chart of the Euro v British Pound since the floating rate system began. We had to take the formula used and recreate it in time. You cannot use the ECU because the pound was included. This shows the dramatic high the Euro made against the pound in 1985. Even during the rally of 2008 when the Euro reached $1.60 on the greenback, it looks like a minor blip on this chart against the pound sterling. In 2015,  the Euro fell to .6937 against the pound and then rallied to close at .73750. We have a Yearly Bearish Reversal at .73450 which it avoided like many other markets for year-end 2015. If we elect this Yearly Bearish Reversal, this is warning new lows even against the British pound.

We are standing at the edge of a cliff in the middle of an ice age where government is trying to control the media, polls, rate agencies, you name it, all to try to manipulate society to serve their own goals. The bureaucracy today would easily start a war to retain power. That is what they do. We are the great unwashed and collateral damage is part of life for them. We can see a possible bright future if we can really reform government. But they will never surrender willingly. We have to crash and burn to reach the other side,

Everything from gold and oil to the Dow and the euro are all trying to alert us there is something brewing here as we stand at the edge in the middle of nowhere. It is time to wake up before it is too late. We have to see the world markets are all connected and screaming at us, but the majority only focus on one or two markets and never see the wildcard coming from the other side.

QUESTION: Mr. Armstrong, what do you think the British will do? Stay or go? Will you be here for the vote?

ANSWER: I will be there. It looks more like urgent meetings forming after the vote; not before. I would say that the odds of a BREXIT vote to leave are not looking good. It is hard to predict this because I expect the vote to be rigged just as they rigged the vote in Austria claiming they had to count the mail-ins and suddenly the establishment won by 31,000 votes. Hofer may be telling people to be calm to prevent violence. But everything points to fraud as it did in Scotland.

We will publish the BREXIT report next week. If the Brits vote to leave, Europe collapses. The EU needs Britain desperately. Why keep the pound at all? There is no point. They should just jump in pool. Why just put your big toe in? This is the 43 year target for the Britain joining the EU back in 1973. This may end up as the final nail in the British coffin of empire. They even paid S&P to say if the Brits vote to exit, they will remove the pound as a major reserve currency, which is a joke. Why? The S&P are always paid and say whatever the highest bidder demands. Cameron has pulled out absolutely everyone to say Britain must stay. Unfortunately, he is betraying his own country. S&P’s statement is meaningless. They are a rating agency who has joined the “club” and their performance in 2007 giving AAA ratings to junk bonds that blew up the world proved that. I personally believe the S&P is not to be trusted.

Here was the computer projection for the 1992 and 1996 Presidential elections showed that the Democrats should have won the popular vote. Clinton won both elections.Now look at the 2000 Presidential election. Our model projected a Democratic victory which would have been Al Gore over Bush. As we know, they refused to recount the Florida vote and it ended up in the Supreme Court which ruled along party lines.

After the election, the votes were correctly counted. They indeed showed that Gore should have won. Our model does not forecast the rigging, but who should win. I can say in the case of Scotland, Austria and the upcoming BREXIT, all three should have been against the EU. That said, the likelihood of allowing the British to leave is highly doubtful for Brussels will collapse.

That is why so many are chiming in to keep Britain in the EU. All their reasoning is nonsense. This is a very sad day for Britain. It will see its independence slip away into thin air. You cannot save the EU. This is like someone falls off the cliff so you jump as well to hold their hand on the way down.

The EU is a total failure. This federalization of Europe is a deliberate utopia for politicians with high paying jobs, tax exemptions, and the people have no possible ability to ever vote for a policy change. This is the most anti-democratic structure ever thought of in Western culture.

We will issue a special report on THE FATE OF BRITAIN. This will be available next week. It is a very important report looking at Britain and what lies ahead covering the pound, pound/euro, and the FTSE.

Our sources in France are unanimously warning that a major socialist union uprising is building in France and could erupt rapidly. The unions in France are notorious for being the most socialist, highly Marxist, in the entire world. To get their demands, they will go anything. They even kidnapped the head of Goodyear until he yielded to their demands. They act more like Stalinist rebels who ignore laws and it is always just about them. Employers are evil capitalists in their book.
This time the uprising is building over proposed labor regulation reform supported by Hollande, who is a socialist himself. President Francois Hollande’s government realizes that France is doomed internationally and unemployment will only rise. His labor reforms are designed to make it easier for companies to hire and fire employees. As it stands, it is next to impossible to fire anyone. As a result, companies are not hiring.

Even the socialist MPs refused to vote for it. In France, if Parliament does not do what the President commands, he need not rely upon them. Prime minister Manuel Valls employed a constitutional tool that allows him to bypass the parliament altogether. This has now resulted in rising social unrest. A real confrontation is building. The question is can France become competitive globally at all?

The trade unions are beginning to block fuel supply to shut down the country. They managed to shut down five refineries. They are also looking to suspend nuclear power plants until they get their demands. If you are looking to fly to Paris, forget it. They will shut down the airports, the trains and all the public transports in Paris as well. Even the
agricultural unions may join the movement. The unions are promising unprecedented violence the first week of June.

Hollande is losing support and he is also unlikely to survive elections next year. The French, like everywhere else, are fed up with government. Th unions do not want to give anything back in France so this will contribute to the overall bearish view for the Euro moving ahead.
The fraud in Austrian elections that the “establishment” candidate wins by a mere 31,000 votes to keep Austria in the EU is also fueling the sentiment throughout Europe that any hope of a fair election to regain one’s country is not realistic. The French are worried that the 2017 elections will be rigged as well.

All our direct sources in France are warning that the country is disgusted by Hollande and the “establishment” government in power.

QUESTION: Mr. Armstrong; The scaremongering going on here is claiming that if BREXIT becomes reality, we will be thrown out of Europe and have to pay massively for healthcare outside of Britain. Do you have any information on this?

Thank you

A former neighbor

DS

ANSWER: There is something most Europeans are clueless about. The EU is by no means a free deal for all. The EU will be in dire straights if BREXIT goes through. Britain will be in far better shape than Europe. The EU will most likely offer the UK a European Economic Area (EEA) deal, which would have no impact on Brits at all. What is that? An EEA option will have virtually no effect on expats living in the EU. There is no doubt that single market participation will not change for the EU would be shooting itself in the head.

As for the question of healthcare, I do not doubt that they are lying about that as well. Currently, anyone from Britain living in Europe on a pension receives free healthcare. It is true that this is not the case outside the EU. However, unknown to most, the UK currently pays a large sum to countries in the EEA to cover British healthcare. For example, the British Department of Health already reimburses other EEA countries as well as Switzerland for the cost of providing treatment to people for under EU law, irrespective of nationality. The likelihood of that ending is probably nil for it would mean any EU citizen would be denied healthcare in Britain.

I seriously doubt that leaving the EU would disturb trade or healthcare. The net effect of BREXIT would retain independence of London as a financial center, eliminate the necessity to open its borders, and exit the likelihood of the Bank of England being subordinated to the ECB, which will come, not to mention freedom for its own taxes and regulation. Despite the “scaremongering”, Britain would get the benefits of trading with the EU without surrendering its sovereignty to an unelected bureaucracy that the people would have no possible way to disagree with, outside of war.

The people who count the votes claim the election is a dead-heat in Austria today. Norbert Hofer of the Freedom Party and Alexander Van der Bellen are each on 50%, according to the estimate, which includes postal votes not yet counted. The pools really put Hofer ahead, so there may be some voting counting issued, Stalin fashion. Nevertheless,  what this is demonstrating is that 50% of the people are fed up with the EU. Instead to addressing the crisis, those in Brussels refuse to ever change course.