Armstrong Economics Blog/Sovereign Debt Crisis
Re-Posted Jun 12, 2020 by Martin Armstrong
Illinois became the first entity to borrow from the Fed’s new facility known as the “Municipal Liquidity Facility” for state and local governments. The Fed’s legal authority lies in section 13(3) of the Federal Reserve Act. This authorizes the Fed to directly lend to “individuals, partnerships and corporations” in “unusual and exigent circumstances.” Section 13(3) is titled “Discounts for individuals, partnerships, and corporations,” raising questions whether the Municipal Liquidity Facility is actually authorized under Section 13(3). This has been capped at $500 billion.
To qualify they need a credit rating which is always up for sale to the highest bidder as we saw in 2007. Illinois is already insolvent and its debt is trading at junk bond status. However, as long as they pay the fee, one of the credit agencies can certify a rating which is arbitrary so they get the funds for a kick-back. Welcome to the wonderful world of corrupt credit ratings. This proves that Illinois cannot hope to raise money to borrow. Someone should just turn out the lights.
British Pound Down & Dirty?
Armstrong Economics Blog/BRITAIN
Re-Posted Jun 10, 2020 by Martin Armstrong
I have received a lot of emails from Britain asking if Boris is the new reason for the collapse of the pound. Fundamentals always emerge to support the projected trend. Boris is approving contract tracing which will undermine the economy dramatically. This is a plot by the socialists to realize their Marxist dreams. The press is so intensely keen on keeping COVID as a national security threat that it is really hopeless.
The British pound appears to be still destined to break the 1985 low. However, we first need the false move with the dollar down to trap everyone into short-dollars and then this will flip around. Contact tracing and certificates to prove you do not have COVID will end tourism for Europe. No Americans will be traveling there if they have their way. The stupidity of Boris and other European world leaders is beyond description. I think I have seen London for the last time already.
We are in a battle with the socialists on an unprecedented scale. They are deliberately destroying businesses under the pretense of the New Green Deal.
German Companies Plan to Reduce Investments
Armstrong Economics Blog/Germany
Re-Posted Jun 7, 2020 by Martin Armstrong
According to a recent survey conducted by the Institute for Economic Research (Ifo), German companies plan to reduce investments by 50% this year due to the lingering effects of the coronavirus. In fact, 28% of companies reportedly already canceled investments. The manufacturing sector, the heart of the German economy and therefore the entire Eurozone, purportedly plans to cut back projects and future investments by 64%, and 32% reported that they have already canceled business ventures entirely.
The coronavirus cannot account for the toll on German manufacturing, as 2019 was the worst year for that sector in a decade. In February of this year, the Financial Times reported that ECB President Christine Lagarde said low rates and inflation “significantly reduced the scope for the ECB and other central banks worldwide to ease monetary policy.” This was in February when the main concern was the US-China trade war, as Germany imports 9.4% of intermediate goods from China.
Chancellor Angela Merkel wants to pump $146 billion USD ($130 billion euros) into a stimulus package, while of course designating $56 billion USD of those funds to further the climate change agenda. The German economy already shrank by 2.2% in the first quarter. Merkel recently announced that she will “absolutely not” run for a fifth term, meaning she will leave her mess for the next person to clean up.
Sovereign Defaults Unfolding
Armstrong Economics Blog/Emerging Markets
Re-Posted Jun 3, 2020 by Martin Armstrong
In the Gulf, states are facing bankruptcy. Oman can hardly even pay his electricity bill. The IMF has been now lobbying to defer emerging-market debt for one year. We have been able to confirm from behind the curtain that more than 100 nations have asked the IMF for help. The sheer stupidity of this coronavirus lockdown is beyond belief. It seems no politician bothered to ask advice from anyone other than epidemiologists. Neil Ferguson may have resigned for bad judgment, but the politicians who failed to consult other fields including economics should resign. The lack of common sense amounts to the said fact that politicians have set off a Monetary Crisis cycle over the next two years, for they have seriously disrupted the entire world economy. These emerging markets will not be able to pay their debts any time soon, especially when European politicians are trying to convert the economy to a New Green Order.
Macron Wants to Take Car Production from Germany
Armstrong Economics Blog/European Union
Re-Posted Jun 1, 2020 by Martin Armstrong
President Emmanuel Macron is waging war against Germany to usurp their car production by first killing it with climate change regulations. Then he announced an €8 billion plan to make France the top producer of “clean vehicles” in Europe. The rivalry between France has always been deep-seated. The number of wars between the two countries is high. It was at the Treaty of Versailles of 1871 which ended the Franco-Prussian War and was signed by Adolphe Thiers, of the French Third Republic, and Otto von Bismarck. This was actually the establishment of the newly-formed German Empire on February 26, 1871.
In retribution, France demanded Germany surrender at the end of World War I. The Treaty of Versailles was signed on June 28, 1919, exactly five years after the assassination of Archduke Franz Ferdinand. Where the Germany Empire was created in 1871, they chose the very same place to bring about its destruction 48 years later.
Thatcher on the Redistribution of Wealth Rather than Creating Wealth
Armstrong Economics Blog/Economics
Re-Posted May 31, 2020 by Martin Armstrong
RAISED IN UNREALITY
by Tabitha Korol
This is another in a series of children’s propagandist story books distributed to libraries nationwide and in other countries, another facet of the many war strategies used against the west, overtly about Israel, but covertly about changing opinions and accepting Islam. The facade of victimhood is usually at play; one need only be alert to recognize how it’s employed.
*****
Tasting the Sky, by Ibtisam Barakat, is a story told through the memories of a three-and-a-half-year-old girl in Ramallah, West Bank, the heartland of Biblical Israel and known through the centuries as Samaria. it is categorized to be read by Middle Graders, ages 6 and up, who know nothing of the region’s history. Without guidance, analysis and clarification, they would conclude that Israel is the interloper and Palestinians the natives, and by extension, western civilization is evil. This is Islamic indoctrination, inappropriate for distribution.
It begins with a sketchy historical note that the conflict over the State of Israel, the background of the story, continues to this day, but the conflict’s origin is ignored. For over fourteen centuries, Arabs have been following Mohammed’s decrees by attacking and slaughtering the Jews within the land and brutalizing Christians, Romans, Persians, Ethiopians, Berbers, Turks, Visigoths, Franks, Egyptians, Indians, and more, elsewhere. Unable to deny 1400 years of Jewish presence in the land, the Arabs embellish the discord with lies of shared history, prophets, and archaeology. But the land has only ever been the ancestral homeland of the Jews, who reestablished their national independence in Israel after 2,000 years, its legality endorsed by the United Nations, in 1948. Israel also received the recognition of Yusaf Diya al-Khaldi Mayor of Jerusalem (1899), Lord Robert Cecil (1918), Emir Faisal, leader of the Arab World (1919); and Sir Winston Churchill (1920).
To devalue Israel’s legitimacy, the author alleges that the State of Israel was founded solely because of the Holocaust, but that is not the case. “Zion” is the age-old name for Jerusalem; “Zionism” is love of Zion, and the national liberation movement begun in the late 1800s with the creation of 20 new Jewish cities in what was then called Palestine (a Roman appellation). It is also the political movement of restoration and return founded by Theodor Herzl in 1897, decades before the Holocaust. After World War I, when Iraq, Lebanon and Syria were created from the defeated Ottoman Empire, so were Palestine’s boundaries created and recognized as the Jewish homeland. This is what Mohammed’s successors repudiate. Israel’s capital, Jerusalem, established 1000 BCE, has held a majority Jewish population since the late 1860s.
Barakat’s personal story begins at age 19, returning home from Birzeit, West Bank, where activist students ignore the barbaric crimes of Islamist groups – lynching, beheading, whipping, crucifixion, castration, rape-to-death, burning alive and other unspeakable tortures – but fight with Israeli soldiers, protesting the “occupation.” “Occupier” is legal terminology that does not apply to Israel, as Israel’s legal title and rights were established in the San Remo resolution, adopted by the Allied Powers after World War I, confirmed by the League of Nations, and incorporated into the UN charter. Calling Israel an occupier is equal to calling the Arabs occupiers of Arabia. This is “projection,” attributing one’s own qualities or ideas to another. After losing their aggressive war in 1967, they self-identified as Palestinians and occupy this land as their strategy.
In the book, Ibtisam is returning to Ramallah, once a Christian city, now renamed “Hill of Allah” by Arab forces that took the town in the first Arab-Israeli war, 1948-49. When her bus is stopped at an Israeli checkpoint, she expresses fear for passengers’ showing their ID and tickets, although identification is commonplace at border crossings between jurisdictions. Because Palestinians have proven an aggressive people, Israelis also check for weapons or passengers swathed in explosives, their parents’ sacrifices to Allah for monetary reward. The naïve readers are influenced to fear.
The Israel Defense Forces (IDF) operate on strict commands that, as representatives of Israel, they must behave with humanity. Passengers are not raped, tortured, or beheaded. Rather, once cleared, they are free to proceed. In fact, Palestinians have begun producing fictitious film enactments to blame Israelis for mistreatment because they cannot confirm their claims, Israelis being known for their morality. The author even writes that one soldier attempts to return her fare because they will be rerouted to the Military Rule Center, a detention center.
As her story unfolds, she is three years old when an Israeli soldier comes to their house and allegedly makes sexual gestures to her mother. Mother tells Father that she fears rape if he returns, but I question why he didn’t rape her right then. The accusation is possible but since Ibtisam’s story is fraught with fabrications, both the checkpoint accusation and this one might be projections. Muslim men have endangered the streets of Germany, France, and London, and made Sweden the Rape Capital of the West and India, the Rape Capital of the World. Mother could assume the same of Israeli soldiers.
Israelis are held accountable for their actions under Israeli law; rape is not sanctioned as in Islam. A noteworthy phenomenon: reports indicate the lack of Israel’s military rape, which “merely strengthens the ethnic boundaries and clarifies the inter-ethnic differences – just as organized military rape would have done.” A Seattle university professor declared at a BDS event, “You IDF soldiers don’t rape Palestinian women because Israelis are so racist and disgusted by them that you won’t touch them.” In any case, Father accepts Mother’s word and they leave.
As Ibtisam’s bus is en route to the detention center, she ponders her postal box, her foreign pen pals, and recalls her father’s nightmares as he relived his loss of freedom in 1967. He’d told his children that the war came to them, not that five Arab nations initiated an offensive against the new Israel in 1948. He excluded that the Arabs ignored the UN and Israel’s decision to designate Jerusalem an international city, home to Israelis and Arabs. Instead, they forced the Jews out, destroying graveyards and at least 50 percent of the city’s synagogues. Nineteen years later, 1967, following Israel’s warning that Nasser’s closure of the Straits of Tiran against Israeli shipping and his forces mobilized at the border would be casus belli, Israel preempted Egypt’s action by destroying its air force and initiating a ground offensive. The result was Israel’s acquisition of the West Bank/Judea-Samaria, the Golan Heights, Sinai Peninsula, and Gaza. Although Israel immediately offered to return land for peace, the Arab governments refused to talk or recognize Israel. Father’s story is misleading; the reader misled.
The author recalls June 5, 1967. She is three when Father returns from work without his usual treats, announcing that Israeli planes are targeting Palestinians, soldiers combing their homes and butchering everyone. Again, this is untrue, but projection. (Mohammed’s conquests included beheading the men and enslaving the women.) The Arab countries initiate, and Israeli forces repel, the onslaught, yet the Israeli government nevertheless invites the Arab residents to remain safely in their homes and become citizens. Some families stay, but many heed their own army’s orders to go to Jordan or the caves, expecting to return triumphant. Mother and children escape with the rest; father leaves to see if he can be of help.
Yes, Ibtisam remembers gun shots, air raids, but she cannot name the aggressor, and the reader assumes they run to escape the Israelis. The child knows they lost the war, her home, and her shoes. and they cannot return to Ramallah. Her mother is 24, with three children in tow, ages 8, 7, and 3, and she soon gives birth to her fourth child. Father is 44. At the time of their marriage, Mother was 15, Father 35. In a culture where there is no loving courtship, marriage is described as a series of rapes interrupted by childbirth.
When a little boy has drowned in the river, they say the water stole him. We often see signs of Islamic projection. The young reader cannot alone grasp that Muslims take no responsibility for their behaviors, attacks or plight, and lies are routine. With the announcement that they “lost Palestine” comes the stinging victimization, not the realization that their wounds were self-inflicted.
Radio announcements of refugees who may return to the new Israel include Ibtisam’s family, but many are refused entry to their countries of origin, the surrounding countries that pursued war.
And because so much of the humanitarian aid is redirected to the Palestinian Authority, for weapons and payments to families of “martyrs” who are killed while killing Israelis, the dispossessed are destined for neglect for generations to come, their victimhood worsened, their futures bleak. To this day, they blame Israel for “colonizing their land,” when there is no evidence that “Palestinians” were ever an identifiable people, with history, government, culture or language. They were Arabs from surrounding lands or nomadic Bedouins.
Facts are facts: Jews (Hebrews) are the indigenous people of what the Romans called Palaestina. Despite Israel’s overtures of peace, unilaterally returning land to Egypt and Lebanon, and signing a peace treaty with Jordan, Palestinians continue their attacks. Do the young readers see Israel’s offers of peace and opportunities to prosper? Do they know that the Palestinians refuse?
Back in Ramallah, the Israeli soldiers marching in formation down the streets, armed but carrying Israeli flags and “chanting” (singing), are a source of anxiety and entertainment. When Ibtisam hears “sounds of war,” she does not know that they are the Palestinians’ ongoing, daily attacks against Israelis – throwing rocks and missiles at Israeli vehicles, firing rockets and mortar into Israel, or youths hurling firebombs at troops who then return fire with their weapons. The Palestinians are consistent. They will continue to attack until one day, with Allah’s help, they expect success. Meanwhile, generations of people endure in stagnant misery and perceived victimhood.
When Jamel Abdel Nasser dies, Father exclaims, “Now we are all orphans.” It is likely that Father, if not mother also, has his roots in Egypt. “Barakat” is a Muslim name, and common to Egypt, Iran, Pakistan, India and Bangladesh; its definition is “blessings.” When the women of the family gather for the boys’ circumcision, dressed in “the styles of hundreds of years,” the embroidery may indicate their country’s design, or that of the nomadic Bedouin. It cannot represent a Palestinian country that never existed.
Ibtisam’s family has survived whole, parents and six children, but there are others who have endured much hardship. She does not speak of the many victims of the Palestinian leadership’s greed and complete disregard to the people’s suffering. During the same years since 1948, while Israelis create a prosperous nation, are happy, and live in comparative freedom and security, generations of Palestinians wallow in poverty, hardship, self-pity and resentment – squandered lives with the fear of another war looming over their heads. This book has hidden many truths, and a new generation of readers grows up to take on Mohammed’s legacy of war, to side with the tyranny of Islam and resent the freedoms of Israel and America. Rather than reading propaganda, American children should be learning more about the humble beginnings and magnificence of America’s ideals and, by extension, Israel’s.
Tabitha Korol

https://tinyurl.com/y7e6z63d
Ascent to the Summit
by Tabitha Korol
Can two men who meet in the name of peace be truly capable of declaring what is right and just for the entire world?
Early February 2019 ushered in a momentous event, the joint signing of a covenant, “The Document on Human Fraternity for World Peace and Living Together,“ by the Grand Imam of Al-Azhar Ahmed el-Tayeb, the head of Sunni Islam, and the Roman Pope Francis for a One World Religion. The historic ceremony was held in front of religious leaders of other faiths as a call for peace between nations, religions and races, although historically, Islamic peace is never achieved and it is they who continue to wage war. The declaration of peace, freedom, and women’s rights is indeed a beautiful document as described by Vatican News. Yet the imam is one man and the Islamic blood lust has maintained its presence in our world for 1400 years as a tribute to its founder, affecting even its own with intimidation and rules of torture, murder and suicide. Islam is the one religion that has been incompatible with the others and the Pope would do well to question whether Catholicism and the others would be willing to relinquish their own laws to accommodate the one that demands their elimination, in the quest for peace and a one-world religion.
Indonesian Muslim scholars also agreed to boost harmony and spirituality over the violence of the past by encouraging a school curriculum for “teaching Islamic history that contains the compassionate character of the prophet.” The suggestion is hardly comforting if it is the same prophet who beheaded the 600 to 800 Jewish men of Medina and enslaved the women and children, and whose descendants continue to engage in the same art of decapitation by the sword and bondage into the perpetual future.
Islam is a complete 100% system of life with religion being the camouflage for the legal, political, economic, social and military components. The Koran is designed to emotionally and physically control every aspect of human life for the devotee and the kafir (non-Muslim) through mind control via five-times-daily prayers and speech control, as well as through threats and wanton violence. Worldwide, Muslims exercise a disproportionate influence on others and work to get the ruling government of the nation they invade to permit them self-rule, sharia, first within the confines of their limited living quarters but eventually with the immutable goal of establishing Islamic law throughout the land. They are commanded never to assimilate in their host culture, and to destroy crosses and overtake churches. Thus are the indigenous people victimized and engulfed. It is safe to say that Muslims, through hijrah, are making headway in virtually all the countries of the world, although recognizably not at the same pace or using the same technique. Muslims are a factor in 95% of the world’s wars and gaining ground, so that a totalitarian regime’s signature to such a virtually submissive pact is suspect.
Islam sees itself as superior to all other peoples and takes offense at signs of progress accomplished by cultures that preceded it. To that end, its goals are to destroy those cultures’ histories and replace them with their own – to present themselves as the original and best of humanity when all others are gone. Allah’s Messenger said: “By Him (Allah) in Whose Hand my soul is, surely the son of Mary [Isa (Jesus)] will shortly descend amongst you people (Muslims), and will judge mankind justly by the Law of the Quran (as a just ruler) and will break the Cross and kill pigs and abolish the Jizyah [a tax] ….” (Bukhari 3:2222)
Christians who do not accept Muhammad and the Qur’an are considered the most vile of created beings: “Nor did those who were given the Scripture become divided until after there had come to them clear evidence. And they were not commanded except to worship Allah, sincere to Him in religion, inclining to truth, and to establish prayer and to give zakah (alms). And that is the correct religion. Indeed, they who disbelieved among the People of the Book and the polytheists will be in the fire of Hell, abiding eternally therein. Those are the most vile of created beings.” — Qur’an 98:6 It is prudent to note that while most religions give alms (tzedakah, in Hebrew), and Israel is invariably the first responder to any nations in need of help during natural disasters, Islam specifies that alms and aid not be given to those who do not honor Islam.
Just as Mohammed captured and has since had full control over Mecca and Medina, Islam established a mythic link to overtake Jerusalem, and Rome is in its sights once again as its fourth holiest city. Vatican City is 100% surrounded by massive, 39-foot-high walls built in the 9th century for protection against the Saracen pirates who pillaged St. Peter’s in 846. From that first jihad attack into Rome in 846, Islam declared Rome would follow the fate of Constantinople 500 years before, and the Christian basilica would become a mosque. This, then, is tyrannical globalism and its underlying raison d’etre, with which the Pontiff has signed a peace pact. Although his is a noble mission, without written rules of agreement and, indeed, trustworthy mutual compromises, it may still be too soon to prepare for celebration.
There is no doubt that there were some globalist spectators to the historic event, who, if included in the event, would tirelessly campaign for eliminating nationalism and border sovereignty. To facilitate the control of the world population, they prefer overarching establishments, such as the EU (European Union) and WTO (World Trade Organization) to have control and make decisions for all others. Can we – and should we – trust someone at the top to decide our fuel needs? food and quantity requirements? How about medicines and treatment accessibility? our education, entertainment, and available technology? Can the administrator be capable of making impartial, unemotional judgments, and what if he/she allows personal biases to direct the making of decisions that affect the rest of us? We must be guided by our own local supply and demand issues, the obtainability of goods and services or be overtaken by a socialist economy that always results in scarcity, poverty, hunger, and death.
if one or some of the attendees hold communist leanings, with the belief that man is incapable of self-governing, the stronger master will be put in charge. Such an ideology controls the information circulated, the art produced, the leaders to follow and the thoughts to ponder, and leads to arrests without due cause, punishment without trial, forced labor by humans owned by the state. Contrary to the Commandment, Thou shalt not steal, private property will be eliminated, goods commonly owned, production controlled and distributed to others, and the freedom to earn and benefit in accordance with the individual’s productions seized.
Judaism has been a persistent annoyance to Islam for 1400 years. Would the Roman Catholic Church now consider joining Islamic forces or would Islam agree to lay down its billion swords? Is the Holy Father aware that Islam’s open warfare has already declared, “First comes Saturday, then comes Sunday,” meaning, once Judaism is obliterated, Christianity will follow. Yet, how can there be an agreement when even word definitions differ so drastically? To the Pontiff, peace is the absence of war and the hope of amity throughout the lands. To the imam, peace is Allah’s blessing to make war against the infidel and bring all to submission, and it is the submission of all that is seen as peace.
Although I have no personal investment in anyone’s belief choice, I am fully attentive regarding their future deeds. I favor the continuation of the Church’s position of “subsidiarity,” which is to support, but to not interfere with, a community’s internal life, whereas Islam has its finger firmly positioned on every aspect of human and communal life. Would Islam agree to altering the Koranic dictates and eliminate corporal punishment in its rule or would the pope acquiesce to meting out severe pain for select insubordination? How would their view change the people’s autonomy over their own culture, health and safety and over individual national sovereignty? Would any group that’s given complete dominion over how we live, how we conduct our personal lives or our business affairs, and how our wealth is spent, truly rule with our best interests in mind? Globalists seek a dictatorial society.
History has provided us with many leaders. Would the ruler of the new globalist world be a Pericles? a Moses? a Charlemagne? Or a Mugabe? a Pol Pot, or a Hitler?
Does the Pope understand that his new friend may represent his steadfast adversary? Putting our future in the hands of a few is a decided threat to the United States Constitution. We have had enough history to learn what should be obvious, that the more power is removed from the people, the more power would be consolidated to those in control. This is a menace not to be ignored, no matter who sits at the summit.
Tabitha Korol
When Will a Light Go Off?
Armstrong Economics Blog/Economics
Re-Posted Apr 23, 2020 by Martin Armstrong
COMMENT: Mr. Armstrong; Your letter has circulated here in the _________________ Parliament. I must say, it is brilliant. The problem is most people see just writing checks is easier to understand than actually suspending expenses. I fully understand whilst you cannot terminate the income side of their balance sheet without also suspending the expenses, it is a concept that is not easily seen as a solution. I believe the pain has to get worse before they will listen.
Cheers
Anonymous
REPLY: I find it just astonishing that there is a complete lack of common sense in representative government. They cannot continue to just subsidize people with no comprehension of where this ends. The deleveraging in the global economy is more than $100 trillion dollars. You cannot create enough money to even soften the blow. You would think that after the failure of Quantitative Easing since 2008 its utter failure to rekindle the economy, that a light would at least go off in someone’s head and they would ask: Why has this never worked?
Will the Dow Make New Highs?
Armstrong Economics Blog/Sovereign Debt Crisis
Re-Posted Apr 20, 2020 by Martin Armstrong
QUESTION: Mr. Armstrong; I am a new reader. I was wondering if you agree with Trump that the stock market will make new highs.
Thank you for your time
JA
ANSWER: The market will make new highs, just not this instant. However, it will not make new highs because the economy will be strong. It will make new highs because governments have abused their power and their debts are far too excessive. Europe will be the first to default on its debt in a clever manner of transformation. The European Central Bank is dead in the water. They can offer no solution and have turned to ask for the cancelation of all paper money and the issue of federal coronabonds.
Capital will flee from government debt into equity when the people begin to realize we have reached the end game.








