QUESTION: Mr. Armstrong, it is becoming very obvious that we are headed into a recession here in Europe. I have never felt how ominous things seem as they do right now. Will you be covering Scandinavia at the WEC in Rome?

ANSWER: Yes. We will be focusing on the political & economic crisis that is unfolding. Besides the government of Finland just collapsing out of thin air, we have the insanity of BREXIT, the EU trying to punish Britain in hopes of making an example of them to prevent anyone else from leaving, while we have the ECB unable to do anything whatsoever and the European people have become Draghi’s collateral damage. With leading economies starting to slow and key indicators in the risk zone, we are headed into a hard landing for the bottom of the Economic Confidence Model come 2020.

We are in a global recession that has been underway with economic growth rates running just a fraction of what they use to be decades ago. This global recession that others are just beginning to see on the horizon has been in motion. Our focus at this WEC will be how you can position yourself. So while others just see a recession emerging, as always, they will be unable to comprehend the real shifts within the global economy as a whole. We simply must approach this from an international perspective for China is also slowing but thank God they have rejected Quantitative Easing which I have warned is a complete failure.

Even the US economy has been gradually slowing since the 1950s. As taxes rise and the share of the economy government consumes keeps growing, they are starving the real economy and suppressing its economic growth rate. We are headed into a very hard landing. It has been the rise in taxes and regulation that is also behind the trend to automate replacing workers as much as possible.

I cannot stress enough that Mario Draghi has really destroyed the European economy on an unprecedented scale. I know people who worked on trading desks years ago when Mario Draghi before he was head of the ECB, was there to observe how things operated. His policy of perpetual low to negative interest rates is a barbaric ancient theory based on the assumption that if you make it insanely cheap to borrow, people will run out and buy everything. He has kept this failed theory up for 10 years without success. He owns the bulk of sovereign debt in Europe; he cannot sell or even stop rolling over without causing a major debt crisis among member states. The ECB is trapped and incapable of managing the economy whatsoever.

Add to that the fact that Draghi never considered the impact upon those who saved all their lives to retire and suddenly discovered their life savings earned nothing. He leaves the ECB in October. But the May elections are approaching and the stress his Quantitative Easing has inflicted upon Europe is causing a ripple effect within the political discontent. With the economy turning down hard once again into 2020, he has no means to even try to pretend he can manage the economy. We are headed into a NEW ERA in which the belief in central banks and government being in control is about to collapse before our eyes.

We are witnessing a real major crisis unfold. Of course, this will make our Rome WEC probably the most interesting for Europeans and how to survive this Draghi’s nightmare. Where there is such confusion, there is a tremendous opportunity as well for those who understand the events. There are always winners and losers when history is in the making.

Most employers provide vacation and sick leave. However, most employers do not allow sick days to roll over from one year to the next. The norm is to often cap at a certain number of days or hours. In the private sector, most employers do not allow employees to accumulate sick leave. Paid sick leave is part of the benefits package for 85% of full-time workers and 74% of all U.S. workers, according to a March 2018 survey by the U.S. Bureau of Labor Statistics.

Government employees receive benefits that are simply unavailable to those of us who actually produce something in the economy be it a good or service. There is no federal law requiring employers to offer paid sick leave, but as of 2018, 10 states and the District of Columbia require employers to provide some form of paid time off for employees who are sick. Even some cities enacted laws, including San Francisco, that require employers to provide a certain number of paid sick days. However, federally, the Family and Medical Leave Act (FMLA) allows qualified employees to take up to 12 weeks of unpaid leave under certain circumstances.

In the case of governments, they simply bestow upon themselves benefits that are bankrupting their governments. California’s government has been allowing employees to accumulate paid sick leave to the point they are being handed checks in excess of $400,000 for paid sick leave they never took. More than 450 state workers took home six-figure checks when they left their jobs last year in 2018. The record was one check for $456,002. He is by no means the only person to exceed $400k. Add to the fact that these people have NEVER contributed to their guaranteed pension and it is not hard to imagine that this house of cards is rapidly collapsing.

The cost of government is doubling because they have to pay out pensions for people retiring and then they must hire someone to replace them. Now they are paying two people. This is simply unsustainable and it is the key to understanding the pending collapse in government. Capital will flee the PUBLIC sector and run to equities where you are not taxed on gains until you sell the assets. That is, of course, what Elizabeth Warren wants to tax. Gains that you have on assets before you ever sell anything. Curious, that you are the hated rich if you have income greater than $250,000 in a year. Hm!

Canada has been selling off most of its remaining gold reserves to the general public. They have been selling gold coins and reaping better prices than dumping 400-ounce bars to bankers. The figures from the Bank of Canada and Finance Department show that the country held 77 ounces at the end of February. They sold over 21,000 coins in February. Through most of 2015, the country’s gold reserves stood at more than $100 million. US. Finance Department figures show that Canada sold 41,106 ounces of gold coins in December and another 32,860 ounces of gold coins in January.

That left Canada holding 21,929 ounces of gold in its reserves as of the end of January, and as mentioned, all that is left now is 77 ounces after February. The official statement was:

“The decision to sell the gold was not tied to a specific gold price, and sales are being conducted over a long period and in a controlled manner.” 

“The government has a long-standing policy of diversifying its portfolio by selling physical commodities (such as gold) and instead investing in financial assets that are easily tradable and that have deep markets of buyers and sellers.” 

Behind the curtain, governments do realize that eventually they must move to a cashless society in order to retain power. This is fueling the debate behind closed doors on how to address the monetary system. As we hear about MMT on this side of the curtain, behind it there’s a question as to whether money really needs the banking of this “barbaric relic” of the past, as John Maynard Keynes once called gold coins, and many are starting to regard him as right after all. Of course, this is self-serving, for they have really screwed up the finances of all governments on this journey down Socialist Lane.

QUESTION: Mr. Armstrong; Your movie the Forecaster was on TV here in Scandinavia. That introduced me to your research. When I discovered your film was on TV in Europe, Canada, and Asia, but not the United States, that merely confirmed the corruption in New York. Here in Finland healthcare is comprehensive and it is taking down the government. On Friday, the government in Finland collapsed after it was unable to reform healthcare. Every aspect you have written about is unfolding. Why will mainstream media not report your success?

UVH

ANSWER: Healthcare is destroying Western Civilization for the costs are far too high. Because they have been subsidized by the government, they have not been subjected to the normal business cycle. They just always have their hand out in uptrends and down. The government in Finland resigned on Friday after they failed to come up with reform to cut costs in healthcare. Between that trend and government pensions, these two forces are putting pressure to keep raising taxes and lowering the standard of living for everyone else. This is what I mean that we are in the stages of a collapse in socialism. There should be no government pensions where people have not contributed anything toward their future. Healthcare MUST be cut off and forced to be competitive. Obamacare was all about cheating the youth and forcing them to pay for healthcare they did not need to reduce costs for those who did need it. This is the hallmark of socialism – how to live off of other people’s money.

As far as the press is concerned, the prevailing view is that they very much understand it is all about CONFIDENCE. A market crashes and the head of state comes out and tells the people everything is fundamentally sound. Can you imagine if he went on TV and announced the economy is going to completely collapse for 2 years? People would panic. The prevailing belief is that even in the face of collapse, you must always point in the other direction.

Mainstream media will not report something that would warn of such a crash. The government would be on the phone and ask what are they doing? So it is not some conspiracy against me personally. They are not ready to publish such information. The Wall Street Journal published this chart of the business cycle ONLY when the low was coming into play to restore confidence. They will publish what I have had to say ONLY at the bottom and then tell the world this is the guy who predicted the collapse, and now he says it is over. In 1987, we forecast that the low would hold and new highs would unfold by 1989. Larry Edelson in the movie even talked about that. This was when brokerage houses were offering $100,000 for me just to speak for a few hours telling everyone I forecast the market crash and was now forecasting new highs. So it was to their advantage to bring me out.

That is just the way it works. It is not a personal conspiracy outside the United States where, yes, the press defends the banks so they cannot report what I have to say. I have even written for the Wall Street Journal. While I have not submitted any Op-eds ever since I seriously doubt that would publish it. Perhaps I should try just to prove that point.