Premiere of The Forum (Davos)


I attended the premiere of The Forum last night and got to meet those “elite” they spin such conspiracy theories about. Putin will be the keynote speaker at the next session in 2020. Interestingly, the film will be released to the general public on the turning point of the ECM – January 18th, 2020.

Most people have no idea that the World Economic Forum, which Nigel Farage said our World Economic Conference is the alternative, is more like a convention. They employ 800 people and they try to stand politically in between. It was founded by Klaus (Charles) Schwab.

Klaus’ vision was to create a forum where world leaders can meet each other and create a bond. The conspiracy theories that paint these meetings as the place where they decide what the world will do for the next year is really nonsense. These people are not in control of anything and as the world turned nuts in 2019, the leaders of Germany, France, and the US all declined to attend.

It began with the model being the Chamber of Commerce meeting in the United States. Klaus took it one step further and tried to bring business and government together. As events unfolded, it grew into an annual meeting which then people wanted to be seen as being apart of it.

The film is the first to show the behind the scenes of Davos.

 

2020 Elections to be the Most Violent


QUESTION: The more I read that Trump’s opponents will resort to violence, I am amazed at your computer and how it has been putting all this together years in advance. Are we just pre-programmed somehow?

KF

ANSWER: I do not think it is the people who are pre-programmed. It seems to me that government inevitably turns to corruption. I believe the term limits are the only way to stop this and I am not sure if even that will be enough. What I do see is that given the same set of facts, the people will respond in an identical manner no matter what century we look at. To me, history repeats because the same set of patterns unfold and in the same precise order.

The Democrats are simply moving to extreme measures for socialism. They are turning to violence BECAUSE they have been losing ground. Our model shows that 2020 will be the most violent political election since the 1960s. It really does not matter who wins. Both sides will take to the streets and refuse to accept the victor. This nonsense that Trump is #NotMyPresident has simply invoked the exact opposite position where the Republicans will not accept a Democrat as president. This is what I mean when I say that civilization is collapsing and this leads to separatism.

Cheering Up Progressives as They Fail at Everything They Try


From climate change to recycling to health care to capitalism and impeachment, Progressives fail at everything that matters to them. Scott Ott, Bill Whittle and Stephen Green take a crack at cheering up our Progressive friends. Right Angle comes to you fives times each week thanks to the Members who fund it, and who run their own blog and vibrant comments forum at https://BillWhittle.com

The Democrat Ticket That Scares Trump Most: Mayor Pete and Tulsi Gabbard


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Douglas McKinnon writing at TheHill.com says the Democratic ticket that scares President Trump the most is Mayor Pete Buttigieg with Rep. Tulsi Gabbard. Two young, telegenic, military veterans, who can think on their feet and connect through the camera with apparent authenticity — even Bill Whittle thinks they’re the best pairing in the current field. Will the Democratic establishment bypass Joe Biden, Elizabeth Warren and Bernie Sanders to connect with their more moderate base? Does anyone actually frighten Donald Trump? Bill Whittle Now with Scott Ott comes to you five times weekly thanks to our Members who contribute to fund this enterprise, and who run their own vibrant blog and comments forum. Come, meet your people at https://BillWhittle.com

 

Repo Crisis – Best Kept Secret Ever!


COMMENT: Marty; I want to thank you for a great conference. It is clear you are the only true institutional adviser. Our board is very impressed. The FT reported that there is still no  single factor that caused the dislocations in the repo market in mid-September. You are the only one who explains the event authoritative.

Thanks

JG

ANSWER: Nobody will talk publicly. Everyone is scared to death of starting a panic. This is the BEST kept secret I have ever seen in my career. The real test comes at year-end when banks typically step back from the repo market so that their balance sheets are smaller for December 31 regulatory calculations. We will see what really happens then on the chaos scale of 1 to 10. I find it really funny how there are articles calling it the new QE to where the Fed is clandestinely buying T-Bills through repo. This really seems to be an orchestrated effort at disinformation. It is hard to say if the people who make this up are deliberate agents of the government hired to keep people looking in the wrong direction.

William Koch & Ancient Coins


QUESTION: I understand that the Koch brothers bought ancient coins. Is there any truth to that?

WJ

ANSWER: Oh, yes. William Koch was involved in a very famous case involving the Athenian decadrahms. There was a hoard discovered in Antalya by a television repairman and two other people back in 1984. They found a hoard of 2000 ancient silver coins with a metal detector. The hoard contained the rare Athenian decadrachms, which were produced as a commemorative 10-drachma coin. There were only 7 previously known examples. The Elmali Hoard contained 14 of them and became known as the “The Hoard of the Century.” The first one sold for $600,000 dollars, easily breaking the old record. The billionaire, William Koch of Boston, bought 1,800 of the coins for $3.5 million dollars. The Turkish Government knew that the treasure had been smuggled out of the country, but after it was taken across the border they didn’t have the slightest knowledge of its whereabouts. The treasure disappeared.

Based on the evidence, the Turkish Government started legal proceedings in Boston. The judge gave an important interim judgment in Turkey’s favor. Koch lost the hoard to Turkey

Britain GDP Has been declining ever since joining the EU


REQUEST: 
Hi Martin, I trust you are well. Would you post the chart you showed of how the UK has performed since joining the EU? I’ve been ploughing through your emails but am unable to find it. In short, I want to show my partners son the chart, who is a vehement ‘remainer’. Ie, evidence that the Uk would be better off leaving the EU.
Thanks for your help,
Cheers
Charlie

Venezuela & Guyana


COMMENT: Mr. Armstrong; I am from Venezuela and became an American citizen 20 years ago. I have brought my father here to live for his pension in Venezuela will not even buy him a cup of coffee as you have mentioned. I can only wish that the democrats would visit Venezuela and witness first hand what their ideas would do to America. You have a country with the largest oil reserves in the world and even gold reserves yet its people are starving. Qatar has the highest net worth per capita which shows that capitalism is so much better than socialism. You are correct. Venezuela proves governments are incapable of managing a bubblegum machine.

HD

ANSWER: It is truly an example to the entire world. The proven oil reserves in Venezuela are recognized as the largest in the world, totaling 297 billion barrels (4.72×1010 m3). For example, a crude oil contract on the futures market is 1,000 barrels of oil. At $55 per barrel, the notional value of the contract is $55,000. That is 297 million contracts of $16 trillion in reserves. The main coalfields are located in the western Zulia State, on the border with Colombia, and they have known proven reserves of natural bitumen (42 billion tons). On top of all that, they have gold reserves which are estimated to be 10,000 tons (29,166.7 ounces per ton). That is about $40 million per ton or $4 billion. From a resource perspective, Venezuela has more than $20 trillion in reserve values equal to almost the entire US national debt. If they really want socialism, privatize the resources, let professionals manage it, and hand out profits equally to all the people. But no, the government has to control everything.

There is a tiny little country most people have never heard of and assume it is in Africa. In Guyana, they have just discovered oil. This economy is going to explode next year and it will probably be the highest growth in the world. You will quickly see the difference between capitalism and socialism.

Understanding the Repo Crisis


COMMENT: Marty, thank you for a great conference. The comments out there on the liquidity crisis have been just domestically focused. Thank you for keeping my eyes focused on international events and your analysis about the crisis at Deutsche Bank

GH

REPLY: The raid on Deutsche Bank in Germany back in September over the money laundering probe of Danske Bank, which is the biggest lender in Denmark, contributed to the sudden collapse in confidence. The governments are desperate for money and they are hunting it on a global scale. Deutsche Bank served as a correspondent bank to Danske’s Estonia branch. That is where the latest money laundering is alleged to have occurred. The banker there in the Estonia branch of Danske, Aivar Rehe, was found dead by police there in Estonia. He had been previously questioned by prosecutors and was considered to be THE key witness in the money laundering probe. As always, just like Jeffrey Epstein, his death was declared to be a suicide. This is standard whenever they need to cover something up. Boris Berezovsky suddenly commits suicide being very remorseful for making billions I suppose. Anyone who could expose things others do not want always seems to commit suicide.

The crisis in liquidity is that American bankers will NOT lend to Europe. Because of the European Banking Crisis, banks just do not trust banks. Nobody knows who will be standing after a failure at Deutsche Bank. The Fed has had to step in to be the neutral lender NOT because of a crisis in the USA, but because of the collapse in confidence in Europe’s banking system as a whole. Stay alert – this is just getting started.

Gold & the Future


QUESTION: Mr. Armstrong; First I want to thank you for your conference. It was my first time and I was impressed when your daughter asked how many people attended prior sessions. The number of people standing beyond 10 years was impressive. I spoke with one who had been at your 1987 WEC. He said you not only called the crash and the day of the low, but you said gold would rally only $25 and resume its decline. Now we have people still preaching how gold will rally because of the credit crisis they seem to lack the understanding of how it is unfolding. I just finished reading the Hoarding Dollars report. It is really outstanding.

Do you see these people preaching the end of the world so buy gold as just a broken record? I looked at the 1987 move. You were correct. Gold rallied begrudgingly and then resumed its decline. What will it take to make gold sustainable?

WK

ANSWER: The 1987 Crash was a FOREX crisis caused by the G5 trying to manipulate the dollar down. The rally in gold from 1985 to 1987 was simply because of the decline in the dollar. When the G5 tried to stop the decline in the dollar with the Louvre Accord in February 1987, the dollar continued to decline and that was the tipping point. The talk was that the central banks were impotent and could no longer control the economy. We are approaching that same moment in time, but it may flip back the other way. The collapse in confidence is concentrated in central banks OUTSIDE the United States. Eventually, that will migrate to the US and then we will see gold rally when people wake up and see that governments are lost.