This is a very good summary of where we are and why we are here; keep in mind that if trump is not the republican nominee or not elected to the Presidency because the RNC/GOPe supports Hillary the republican Party will suffer the same fate as did the Democrat Party back then — which broke then until the rise of Wilson and FDR which put the big government people back in power. Since we are now in a time similar to that prior to the civil war it’s only logical that there is another civil war coming during the term of the next President.
Tag Archives: TPP
We Want Free trade, but what is it?
The concept of Free Trade is very simple but it is found nowhere on the planet today and for most of the past as well; and a hard fact is that if a federal government is involved even a little bit you can bet your bottom dollar there is no Free Trade. Free Trade means that ever transaction is a negotiation between the two parties which are the buyer and the seller for a greed to price in some currency for a good or service in a different country.
So let’s set up a two country world model country A the USA and country B China. The buyer in country A gets the goods and the seller in country B gets the currency. Where things get sticky is what does the seller do with the currency he gets, dollars in this case, since he can’t spend it in his country? Well you say he takes it to the bank and converts it into the currency the seller uses, Yuan in this case, at some specified exchange rate; but that doesn’t solve the problem it just transfer it to the bank. The bank will hold the dollars for a time as the bank knows that a buyer in the banks country will need the Dollars they are holding to buy something in the USA at some time in the near future. Now so long as the need for Dollars and Yuan are proportionally equal, say one Dollar for one Yuan the trading system is in balance and we have Free Trade; meaning at the end of the year the bank has no dollars or yuan in its trading account.
Now we add a complication to the analysis which is what does the bank do if at the end of the year it has a balance of dollars, a surplus, which were not needed? Well since we are still in a Free Trade situation the bank could reduce the exchange rate making the Dollars cheaper vis-a-vis the Yuan say two Dollars for one Yuan which makes the USA goods 50% cheaper. So the demand for dollars goes up and more USA goods are purchase and the system is back in balance. So there is a method to insure that the trade is in fact free; meaning free of government interference i.e. tariffs, customs inspections, fixed exchange rates and various standards and quotas.
What the cleaver Asians have figured out, first the Japanese, is that the American politicians are stupid and corrupt and like buying votes with free things to the poor. But to get the money for paying for the free things (someone does have to pay) they would need to tax the rich and since they are the rich that wouldn’t work so well so they needed another way to get the money that they could blame on others, evil companies. In the previous example we had a surplus of Dollars in China being held by the bank and so in this example the Chinese government took the Dollars from the banks at the previous rate of one Dollar per one Yuan so they now had the dollars. Now the cleaver part was that they didn’t buy goods in the USA they bought US Treasuries, basically they were leading their Dollars to the US Government. And our government was glad to get them as it gave them more money to buy free things for the masses. However there was a price this system made it almost impossible for the US companies to compete in China; and worse it made the Chinese goods so cheap that they had to start buying their parts from China. This system is not sustainable as there are only so many jobs that can be shipped to China and at that point they will have trillions of Dollars in their hands and they will end up buying the country with it.
We are now in a political a system, not an economic system, where we get cheap goods and in return we ship them our jobs. No sane government would ever do this as it can’t last very long and at some point there is no returning to the old system, and we are almost there.
Will Gold and Silver Become the Underground Currencies of the Future?
Armstrong Economics Blog
Re-Posted Mar 14, 2016 by Martin Armstrong
QUESTION: Martin … the reasoning behind goldbugs … advising people to buy gold to thwart the cashless society that govts will soon impose on us all. Do you think gold and silver will become the underground currency of the alternative economy as people try to get around the official cashless economy or not?
thanks
Regards
P
ANSWER:They probably will to some extent, but it will be very limited. Gold and silver have lost their mobility. You can no longer hop on a plane with a briefcase full of metal. The more likely outcome is that gold and silver will simply be a hedge against government. It is unlikely that everyone will simply be using them at the local Starbucks.
Government will make transactions in gold or silver illegal and equivalent to money laundering. These people are not about to let anything circumvent their dreams. Nevertheless, their plans are by no means sustainable. The more likely outcome will be that they collapse and we move to some new political system. However, keep in mind that this could take until 2032 for a complete reboot.
In France, a train that passes through Switzerland and Liechtenstein is routinely stopped. The French financial police enter and search bags and luggage for valuables. You cannot travel with valuables worth more than $10,000. They will confiscate whatever they can. In Italy, if you look like you have a lot of gold chains on they will pull you over and weigh them.
The likelihood that you will be able to travel with gold is about zero. The likelihood that you will be able to go to the local grocery store and buy food with silver or gold coins is also zero. The more probable outcome is that this will provide a hedge against government to make the transition to the next monetary system. These people are fighting for dominance over society. Do you really think it will be that easy that everyone will be using gold and silver coins? They will not go down without a fight and the first blood draw will be on our side — not theirs.
What Makes a Person a Slave?
There are multiple ways to become a slave such as from the spoils of war where the conquered people were take by the conquerors and made to work for them for short or long periods of time. One could also be born into this condition my having a mother that was also a slave. In either method of becoming a slave 100% of your toil belonged to your owner or master whom in turn allowed you to keep a very small amount to live on. So a fair definition of being a slave was how much of your toil you can keep and obviously if you keep less the half you are more slave than free.
Slavery is not practical today because of technology and the fact that salves are not all that productive as they have no incentive to work hard for obvious reasons. So today the rulers have to find other ways to get their slaves to work for them. One way is to create the illusion of freedom and that is the method currently (past 50 years) being implemented in Western Civilization which consists of the: European Union, Great Britain, the United States, Canada, Mexico and most of Central and southern America. However this is a diverse list of countries and most are not actually democracies even though they claim they are.
The reason they are not free and may actually be more slave than free is that most, if not all, have effective tax rates close to 50% or more of their hours worked. These taxes are in many forms from simple sales taxes though special taxes like that on gasoline and other forms of energy to Income taxes. But most forget that companies that make things and provide services to you must also pay taxes on property inventory and profits which are all passed on to consumers through higher prices that the companies must charge to consumers or go out of business. When all the taxes are added up the Tax load on the consumers in the United States today is probably over $6.0 trillion dollars which is around 36% of the GDP of the country.
So one could say that what is the problem we are only 36% slave and 64% free and that would be mostly true; however the problem with this simple view is that the various governments have promised things beyond what they can pay for, especially the federal government, so they borrow money and as they borrow more and more they pull money out of the private sector which puts a drag on growth which than forces the government to borrow more and we have been in this cycle for almost 20 years now. Social Security and other entitlements both public and private will drive the effective tax load over 50% before 2020 unless the process can be stopped. There is only one way to stop this conversion of a free people into debt slaves to their governments and that is to elect Donal J. Trump President of the United States.
The truth of this statement is in the introduction given to Mr. Trump at his rally at the Cleveland I-X center at the Cleveland airport on March 12, 2016 by Pastor Darrell Scott of New Spirit Revival Center Ministries who being of African decent knows what the yoke of slavery is better than most and so when a man like this sees the truth in the direction we are going in I would say that we need to listen to him very closely. Although the Democrat’s have been the worst at enslaving us the current crop of elected republicans are not any better and so as Trump runs his campaign he is attacked very hard by his parties operators and donors in an attempt to prevent him from gaining the nomination of his party. Do not let this happen or you will be a debt slave to the various world governments by 2020.
Listen to what Pastor Scott as to say and I would do as he recommends if I were you.
4 Elections Away from 2017 the Year from Political Hell
Armstrong Economics Blog
Re-Posted Mar 13, 2016 by Martin Armstrong
There has been a major political uprising in Germany. For the first time, the Green Party has beaten the establishment in Baden-Württemberg. I have been warning that Trump is not some freak show. This is a global uprising we are watching in politics as we head into 2017 – the year from Political Hell. We are indeed, only three major elections away from perhaps the revision of NATO, the fall of the European Union, and the end of the socialist world order as we have know it. We have not just the US election, we have Germany, France.
Then we have this June and the British Exit vote which is actually the first. If Britain votes to leave, the EU is finished. If they vote to stay, Britain is finished and going down with the EU as the Muslim refugees pour in for free healthcare and welfare, and perhaps a few good looking girls as a bonus. This is like two guys walking in the field in Rockies. Suddenly they see a mountain lion. One quietly slips on his running shoes. The other looks at him and asks: “Do you really think you can out run him?” His friend replies: “No. I just have to outrun you.”
Canada Sold All Its Gold Reserves – Who Will be Next?
Armstrong Economics Blog
Re-Posted Mar 13, 2016 by Martin Armstrong
Question: Hello Martin,
I saw a couple of days ago that Canada seems to have sold all its gold.
Is it just a way to find short-term easy money?
Or is it part of a global process to sell any tangible asset that the government could have ?
I personally don’t think this to be a smart move, as in my opinion a government should mix between tangible and non tangible assets. After all, they’re using OUR money…
Thank you.
R
REPLY: You have to look at this from their perspective. They are moving to electronic money. Gold is a throwback to an ancient economy to them. We should expect other countries to follow Canada. They see no use for gold, and they are dead broke. George III was broke and began charging people with any petty crime, right down to stealing an apple. He then used that as the excuse to sell citizens to farmers in the United States as an indentured servant for their time of sentence. The historian Charles Hibbert recorded the sentence handed down by a judge on this issue in his classic work “Roots of Evil”:
Because you have committed this offence, the sentence of the court is that you shall no longer be burdened with the support of your wife and family. You shall be immediately removed from a very bad climate and a country overburdened with people to one of the finest regions of the earth where demand for human labour is every hour increasing and where it is highly probable you may ultimately regain your character and improve your future. (Roots of Evil, 145)
Benjamin Franklin objected to this practice. He had previously written on it in the “Gazette” on May 9, 1751, where he argued against the trade that was welcomed for it was cheap labor needed in the colonies. This was replaced with slavery from Africa by the Dutch following the Revolution.
Today when a government is broke, they can see the gold. Soon, it may be expanding government workforces using prison labor for making a right turn on a red light without making a complete stop or some other nonsense
The Convergence of Political Interests United To Stop Donald Trump…
Its very sad what has been done to us and worse our kids and grand kids. I will be going to the trump Rally in Cleveland this afternoon and I hope Cleveland is better prepared than Chicago. Also I agree 100% that there is only one political party in this country today — there is very little that that actually disagree on and only fight to see who holds the reins of power and money and neither party cares anything for the people. My short take on how we got here starting with the events in Dallas on November 22, 1963 are found on my blog
How did we get from the world of the early 60’s to where we are now?
The Central Bankers Are Crazy & Public is Out Of Its Mind – Where’s the Beef?
Armstrong Economics Blog
Re-Posted Mar 12, 2016 by Martin Armstrong
The central bankers are simply crazy, not evil. They are trying to steer the economy by utilizing this simpleton theory that if you make something cheaper, someone will buy it. Japanese and German cars managed to get a major foothold in the U.S. because the quality of U.S. manufacturers collapsed, thanks to unions. The socialist battle against corporations forgot something important – the ultimate decision maker is the consumer. The last American car I bought in the 1970s simply caught on fire while parked in my driveway. Another friend bought a brand-new American car and there was a terrible rattle. When they took the door panel off, there was an empty bottle of Coke inside. Cheaper does not always cut it. Gee, shall we cheer if the stock market goes down by 90%? It would be a lot cheaper. Why does the same theory not apply?
Then we have the trading public. If the central bankers have gone crazy with this whole negative interest rate theory, then the public is simply out of their minds. The euro rallied because Draghi cut rates further, extended the stimulus another year, increased the amount by another 33%, and then declared rates would stay there for years to come. And these insane traders cheer. Unbelievable! They are celebrating the public admission of Draghi that all his efforts to date have failed, so let’s do even more of the same. And they love this nonsense? Negative interest rates have become simply a tax on saving money and the stupid traders and media writers love it. The Fed tries to raise rates and they say – NO! This is a stunning combination of admission and stupidity that one would expect from a pretty but clueless girl and her drunk college boyfriend who can’t say no to any girl:
“I asked John if he slept with Karen and got his admittal!”
“Oh that’s cool, I think it’s probably about time you stopped drinking.”
All they see is that lower interest rates “should” stimulate but ignore the fact that they never do. They are too stupid to grasp the fact that raising taxes cannot be offset by lower interest rates. People judge everything by the bottom-line and not some crazy theory that just stupid. A simple correlation study by a high school student in math class would prove this theory does not correlate to expected outcome. And we cheer this insanity confirming our own overall stupidity and one is left wondering who is crazier? I suppose it is just that central bankers are crazy and the public, as well as the media, are just out of their minds.
It reminds me of the old TV commercial by Wendys:
The European Refugee Crisis is Destroying Europe
Armstrong Economics Blog
Re-Posted Mar 12, 2016 by Martin Armstrong
Ever since the Cologne sexual assaults by the refugees, things have gotten far worse in Germany. The press tends to still hide the crisis. Nevertheless, drawing only from German media reports which have made it to the public, a list documenting more than 160 instances of rape and sexual assault committed by refugees in train stations, swimming pools and other public places against victims as young as seven have been eye-opening to say the least. This is going to have a profound impact in the German elections next year but it is also tearing Europe apart and pressure builds to close borders to prevent these people from spreading out from Germany to the rest of Europe.
The New York-based conservative think tank Gatestone Institute has compiled a shocking list of sexual assaults and rapes by migrants in Germany in just the first two months of the year. This is stunning to put it mildly. Merkel does not appear to be able to survive this crisis.
Then nearly everyday some knife attacks among refugees are reported in the Austrian press. We have Africans against Arabs and those from Chechnya are against Afghanistan. In Austria, the general public is becoming terrified to even walk outside in many areas.
The all out Stop Trump Propaganda and Disruption Movement as Demonstrated in Chicago today is now in full force!
With the money of Soros and Texas million airs combined and now forming a joint collation of right and left money we can expect more of this disruption to include a repeat of what happened on August 28, 1968 in Chicago which was a riot that was violent and large and became known as the day a “police riot” took place. I think the globalists want to recreate what happened in Chicago in 1968 in the Cleveland convention in 2016.
It appears the origin for the violence in Chicago tonight originates from the alignment of various left wing teams: Occupy Wall Street, Anarchists, the Soros funded MoveOn.Org, F**k The Police, Black Lives Matter, and organized with the campaign team of Bernie Sanders. This means that the DNC was very aware of this demonstration. A side note is that during the occupy wall street movement the group I belong to in Cleveland had direct firsthand knowledge that the occupy movement was run out on a building in Chicago that was well funded and in a high rent area that looked like a “pentagon” war room.
Chicago March 11, 2016 University of Chicago
Chicago August 28, 1968 Grant Park
In Chicago in 1968 on August 28 at approximately 3:30 p.m., a young man lowered the American flag at a legal rally taking place at Grant Park. The demonstration was made up of 10,000 protesters. The police broke through the crowd and began beating the boy, while the crowd pelted the police with food, rocks, and chunks of concrete. The chants of the protesters shifted from “Hell no, we won’t go” to “Pigs are whores” as the violence escalated. Tom Hayden, one of the leaders of Students for a Democratic Society, encouraged protesters to move out of the park so the whole city would be tear gassed, and also to made sure that if blood were spilled in Chicago it would happen throughout the city. The amount of tear gas used to suppress the protesters was so great that it eventually made its way to the Hilton Hotel which held many prominent politicians. The police were taunted by the protesters with chants of “Kill, kill, kill” while they sprayed demonstrators and bystanders indiscriminately with tear gas. The police assault in front of the Hilton Hotel the evening of August 28 became the most famous image of the Chicago demonstrations of 1968. The entire event took place live under the T.V. lights for seventeen minutes with the crowd shouting, “The whole world is watching”.
Also of note and in support of what I’m writing here it is now known that Billionaire Robert Mercer purchased Breitbart.Com. This is a complete usurpation of the legacy of the founder in an effort to create content favorable to the candidacy of Ted Cruz. Mercer purchased Breitbart for $11 million and then founded Cruz’s super-PAC with another $10+ million.
Also we find that The Daily Wire is actually owned by the Wilks brothers, Levi and Farris Wilks. These two are the other end of the Ted Cruz financial team, and massive multi-million dollar donors to Cruz’s presidential bid. Ben Shapiro is the front-man for The Daily Wire. Levi Wilks is listed as the Manager of Forward Publishing and has ties to 7 Pillar Records LLC. In turn 7 Pillar is run by a fellow named Farris Wilks. Farris is famous for being a real Texas Success Story, going from Brick Layer to Oil and Gas Tycoon to Church Preacher. These are the very same Texas Billionaires who gave an impressive $15 million to a Ted Cruz Super PAC. Why haven’t we been told about this? This looks like if The Times invested a lot of money into GM and then ran articles about how the only car that doesn’t stick is a Chevy
So if Breitbart has been compromised then the allegation by Breitbart reporter Michelle Fields that she was assaulted by someone who was ID’d by another reporter as Trump’s campaign manager. This is very suspect and probably a set up based on what we now know.
Here’s what we do know: Fields said that someone “grabbed me tightly by the arm and yanked me down” after a press conference Tuesday. Washington Post reporter Ben Terris witnessed what happened and identified that someone as Trump manager Corey Lewandowski, reporting that the altercation left Fields with “finger-shaped bruises” on her arm. The Daily Beast also reported that “sources said Lewandowski acknowledged to Breitbart’s Washington political editor, Matthew Boyle, that he did manhandle Fields.” And on Thursday, Politico posted the audio of the alleged incident.
Several months ago Matt Drudge told about this corruption taking place; however he never gave specifics of who was behind what operation. As the presidential race continues it is amazing to witness how many websites are actually just front groups for ownership advocacy. It would seem that almost all of the most well-known ‘new media’ entities are now owned by Wall Street individuals or Wall Street corporate groups for very specific advocacy purposes. None of their intentions are good and it now seems that the ‘new media’ are now just as compromised as the mainstream media.
Centinel2012 