COMMENT: You and Maggie could have solved BREXIT in a week!

HS

REPLY: She would have done precisely that. Of course, they staged a coup against her to take the UK into the euro. She was not against the EU as long as it remained a trade union. We had discussions on that subject. Maggie said at the Bruges Speech:

“We have not successfully rolled back the frontiers of the state in Britain, only to see them reimposed at a European level with a European superstate exercising a new dominance from Brussels.”

While some people are claiming she would NEVER have had a referendum, that is total nonsense. Her Poll Tax was to make people have a stake in government and then they would vote and pay attention. That was her true motive behind that step which nobody understood and it backfired on her.

She was against the euro and the federalization of Europe; she would MOST DEFINITELY move to exit the EU under these terms. She would NEVER have agreed to surrender the sovereignty of Britain.

The idea of the euro was born at the Plaza Accord in 1985. The purpose was to create a single currency to compete against the dollar. It was James Baker’s idea that if there was a single European currency, then the dollar would not be the main currency and it would not rise excessively. Nigel Lawson was a big supporter of joining the euro at that time. The entire Plaza Accord and then the Louvre Accord were all about managing the dollar value in FOREX markets.

Using her Bruges Speech and trying to twist things around that she would have been against a referendum and would be in the remain camp is TOTAL nonsense. We had deep discussions about the problems with the euro. The commission designing the euro came to our WEC in London. I met with them about the structural design of the euro. I think I knew where this went all wrong and I knew where Maggie stood. She also respected that I was one of the leading currency specialists on the subject with real experience and not just theories.

QUESTION: Dear Sir,

In connection with official and real interest rates:

For us, the ordinary people, how can we benefit or lose from this situation? As it seems on first site that it simply deals with big boys (gvmnts, banks, etc)

Thank you

SM

ANSWER: Our client base is probably the most diverse in the financial world. There is a split between the fake rates of government and the real-world rates of the private sector. The little guy has NEVERmaterially benefited from the decline in interest rates because the banks never lowered the rates they charge consumers in proportion to the decline in official rates.

The consumer-level actually sets the tone for the big boys. Governments are hopelessly caught in a crisis drowning in debt and there is no possible way we can climb out of this without major problems and structural reforms.

Understanding we have a Sovereign Debt Crisis is the first step in framing your strategy. Stay away from government debt.

Next, understand that the broader trend will be toward higher interest rates. If you are a borrower as in a mortgage, that means you want to lock it in and do not sign up for any floating rates where you have to pay. If you are a lender, then you do not want to lend out at fixed rates.

Understanding there is a debt crisis, this means you need to develop a strategy of moving to the private asset classes.

The big boys will follow consumer trends. The government will try to convince everyone that they have control. This is simply a game of poker where you can bluff and win with a losing hand if you are good enough. That is the trick governments have been playing on everyon

QUESTION: Hi Martin,

I have been following you for about 5 years now and have been to 2 WECs. At the beginning of last year, I ventured into the forex markets with limited experience and some speculative money. I’ve have been adding money to my forex accounts over this time and thanks to you and Socrates I have just about doubled my money over this time frame. Now my forex accounts have become more than speculative money for me. I have been really looking forward to riding this dollar rally wave into the monetary crisis cycle into 2021/22 but some for your recent posts regarding the liquidity and European banking crisis brewing has given me pause. I have been planning on taking money out of my forex accounts gradually to at least withdraw all my seed money but naturally, my concern is the safety of the forex markets or brokers in regards to the crises ahead. Do forex brokers have any particular risk in the liquidity and European banking crises?

Thank you for all you do!

JXG

ANSWER: That is hard to answer. It all depends on the broker and where are they — Europe or America. I suspect you are talking about America. It depends upon the firm.

We are in a position where there is a crisis on the horizon and we will see a hard landing outside the USA. The impact of a European banking crisis can send the dollar significantly higher. The risks for accounts will be in Europe, for there are no bailout policies and others will claim that these policies would only bailout out the rich. So politically, Europe would present the far greater risk into 2021.