The Fall of the United Nations

Posted Jul 27, 2020 by Martin Armstrong

QUESTION: Dear Martin, The UN Charter was formed 26 June 1945 86 years will take it to June 2031. Does the UN Agenda 2030 coincide with a collapse of it’s forced agenda?

J

ANSWER: According to our models, the United Nations, as we know it, will come to an end by 2031 following the old League of Nations. They have made a strategic play in an attempt to become the world government by using both this virus and climate change, continually calling for governments to submit to their direction. Our model clearly shows that Bill Gates and Soros will also fail. They have unleashed the destruction of Western Society, and this social distancing is precisely the opposite of what encourages the formation of civilization. What lies ahead will be the topic of a special report after the elections laying out the various paths that we face going into the future.

“We the People” should be in charge directly — not career politicians, EVER !

Was Genoa the Best form of Government?

osted Jul 22, 2020 by Martin Armstrong

Genoa 1481

COMMENT: Dear Martin,

Thank you for your work.
It is not anymore about the economy but about surviving through the mayhem that is on the horizon.
Thank you for doing your part in sharing what you know, for being bold and for
not bending.
I was taught to go after ” independent thinking” and I have followed you for years because of that even though we have different political views.
I appreciate and listen to you because you are an independent thinker.

Send you a hug
Dr. FB from, Spain.

REPLY: Thank you. I believe you must question what is happening and you should NEVER presume the direction or outcome. Some people do not understand my position politically. I am neither Democrat nor Republican. There are aspects I agree and disagree with both. I understand the thinking of what went into the construction of the U.S. Constitution and the mistake the Founding Fathers made — they failed to consider human nature.

Much of the structure was based upon their misunderstanding of the Roman Republican era v Roman Imperial era. They presumed that monarchy was bad and ASSUMED that a Republic was better. They wrongly took the fake news of the day put out by Cicero, painting Julius Caesar as evil, when it was the Optimates led by Cato who were corrupt. Their misunderstanding of history and the true events of the time led even to the naming of the Cato Institute as if he really stood for the people.

The best form of government I have ever encountered was that of the Italian city of Genoa from which Christopher Columbus came. The city was ruled by a Doge (president), who was a member of one of the richest families. This position rotated among the families, but its duration was that of the old Roman Dictator who would be appointed for one year. BECAUSE the position rotated, no Doge would ever impose a draconian law since he and his family would be subjected to it the next year. There was no class warfare because they ran Genoa like a corporation, competing against Florence and Venice, and thus EVERYONE benefited.

This is also why I tend to trust Trump more than any other career politician of either party because he will return to the private sector. A career politician is simply taken care of for life and has nothing to return to. We are the lower class scum to be exploited and disrespected.

My bottom-line political philosophy is that the “We the People” should be in charge directly — not career politicians, EVER!. You have your bureaucrats who run the government who are accountable to the people directly. I do not support people like Soros or Bill Gates using their money to take over huge swaths of government. The office of Inspector General is only a symbolic gesture to the old Roman Tribunus plebis, tribune of the people, who could bring charges against any government official. That power should be restored. I do not support “Republics” nor career politicians that can be bought and paid for.

Civilization blossoms when EVERYONE benefits

The Fate of Yugoslavia is the Same Fate of the Roman Empire

Posted Jul 19, 2020 by Martin Armstrong

iitalit001p4

A lot of emails have come in about the video about the Yugoslavian Civil War video. The core of the video is indeed how civilization collapses. I have stated many times that civilization blossoms when EVERYONE benefits. When one group is given favored status, the process of the decline and fall has begun. There is no need to create laws that specifically guarantee any right to any specific group. The core of a successful civilization is the ALL GROUPS are treated equally. Ethnicity, creed, race, religion, or gender share common rights of equality. They do not share equal God-given talents, but the right to pursue whatever talent they possess.

Gates of Babylon

This is part of the cycle whereby I have explained that the financial capital of the world ALWAYS migrates. If this statement were not true, we would all still be speaking Babylonian. Rome broke apart and people fled the cities because of taxes and corruption. Unfortunately, an empire always breaks apart and reverts to its origin. The lessons from this video are interesting. But I seriously question if we can have any impact whatsoever upon stopping this trend. We can perhaps lessen the carnage, but we cannot stop this quest of the socialists to subjugate everyone to live according to their ideas denying freedom to those who disagree.

Black Death Plague Returning in Asia - 2022

Posted Jul 15, 2020 by Martin Armstrong

I have explained that Socrates shows that this coronavirus is nonsense. The risk of a more serious disease comes in 2022. There are three new diseases forming in Asia. First, there is a new coronavirus that causes pneumonia, which is far more lethal than this concocted version that appears to have been manufactured to set in motion this Great Reset. Next, we have swine flu which has also just appeared and is far more serious than the nonsense they have used to kill the economy. Believe it or not, our RELIABLE sources have CONFIRMED that there are a few cases appearing of the Black Death — the bubonic plague — which killed around 50% of the population during the 14th century.

An old word of caution has been, “Be careful what you wish for!” This current nonsense has been exploited to terrorize the population in order to deliberately redesign the world economy. There is ABSOLUTELY no historical precedent to lock down the entire world economy/population. You quarantine the sick, not the healthy. By forcing people to wear masks, they are breaking the bonds of civilization. From here on out, many will look at anyone else as a potential threat. That is the goal, for it prevents organized resistance. You cannot tell any facial expressions if they are joking or nasty. This is how you destroy society and it was the very objective of the Communists. We seem to be following the playbook of Joseph Stalin.

Why & When Will the West Crash & Burn?- 2028 as the start of the major collapse which should take just 4.3 years

Posted Jul 14, 2020 by Martin Armstrong

COMMENT: Hello Martin
Thank you for your reply when I asked about your reports for the individual country analysis.
Yes, it would seem that the Marxist agenda is in full swing, certainly in Scotland. I tell everyone I can about what the real agenda is, economic collapse, totalitarian control, but most of the time I am met with a blank stare. You can only try your best.
You said that the Marxist agenda will fail/implode. What worries me is the damage that will have been created before they fail. Do you believe that draconian measures will be implemented in UK/Scotland? I know that their will be food shortages and the price of petrol is slowly creeping up. What else do you think we should prepare for? Electricity outages, interruptions to the water supply? This is a fight for survival. They will not win but we must prepare for what they will throw at us before they collapse.
Thank you and hope you’re having a relaxing weekend

M

REPLY: This is how the financial capital moves from the West to Asia. No matter what you show these people, their personal jealously rules no matter what. I find it incredibly interesting how this is one of the Ten Commandments, which is also found in other ancient religions including the Egyptian Book of the Dead as an evil and a prohibition.

What they will NEVER get through their head is that human nature cannot be changed. Confiscating all the wealth and trying to redistribute this utterly destroys the economy. This would eliminate human entrepreneurship and innovation, which is what creates the economy as Adam Smith observed. Centralized government control and nationalizing industries destroys the economy because all governments are incapable of creating innovation. NEVER has government EVER been able to create productive jobs and manage the economy.

This will be the GRAND COLLAPSE and this scheme will only destroy western culture and divide the world. It will be like the Biblical story of the Tower of Babel. There, people could no longer speak a common language and were incapable of completing any task. This is an important parable for what we see is the inability to communicate philosophically, which will render their Utopian dream a complete disaster.

We all get our brief historical period of fame. We will witness the collapse after 2032 and the shift to Asia. We are looking at 2028 as the start of the major collapse which should take just 4.3 years from that target date. The collapse will most likely take place more like the demise of Yugoslavia whereby it split according to religion but this time there will also be political philosophy. As Western Society begins to buckle at the knees going into 2028, we should expect to see a draconian attempt to retain power starting in 2024.

Trading is the Only School to Learn Real Economics

Posted Jul 3, 2020 by Martin Armstrong

QUESTION: I noticed that all the economists who are not academics are the people who actually discovered something. The academics always advocate for manipulating society like Keynes and Marx. Why is that?

PD

ANSWER: If you look at the first analyst to establish supply and demand, it was John Law. Even Adam Smith used his examples in “Wealth of Nations.” Adam Smith actually investigated his work to come up with his invisible hand. There was David Ricardo, who also made a fortune as a trader. Those are the three greats and NONE of them has a formal economics degree, which was first taught as a separate course in 1902 at Cambridge.

Those of us who come from the real world of trading, do not have the luxury to come up with Utopian theories that sound nice. Unless you have traded, you will never understand that the market is always right. If you do not listen to the market, you will lose everything.

ECB v Fed

Posted Jun 26, 2020 by Martin Armstrong

QUESTION: Martin,

You mentioned in a recent blog post that the ECB, unlike the FED, can go bankrupt.

Can you explain further?

Not sure where you get the time, energy and resources to research and write all that you do buy it is truly amazing.

Regards,

M

ANSWER: The Federal Reserve does not need permission to create elastic money. It has the authority to expand or contract its balance sheet. However, it cannot simply print money out of thin air. The ECB is the only institution that can authorize the printing of euro banknotes. The Federal Reserve must back the banknotes by purchasing US government bonds. The Fed buys and sells US government bonds to influence the money supply whereas the ECB influences the supply of euros in the market by directly controlling the number of euros available to eligible member banks. This structure was created because of Germany’s obsession with its own hyperinflation of the 1920s.

Each member state retained its central bank and those central banks issue the banknotes — not the ECB. Therefore, the ECB works with the central banks in each EU state to formulate monetary policy to help maintain stable prices and strengthen the euro. The ECB was created by the national central banks of the EU member states transferring their monetary policy function to the ECB, which in effect operates on a supervisory role.

There are four decision-making bodies of the ECB that are mandated to undertake the objectives of the institution. These bodies include the Governing Council, Executive Board, the General Council, and the Supervisory Board.

The Governing Council comprises six members of the Executive Board and Governors of the national central banks of the euro area member states. The Council members meet twice a month at the institution’s offices in Germany. Its primary function is the formulation of monetary policy for the Eurozone area. That means it makes the decisions on monetary objectives, interest rates, and the supply of reserves in the Eurosystem.

The Executive Board comprises the President, Vice-President, and four other executive members appointed by the European Council. The executive members serve for an 8-year non-renewable term. The role of the Executive Board is to implement the monetary policy as defined by the Governing Council and manage the day-to-day operations of the ECB, alongside the Chief Services Officer. Also, the board prepares the Governing Council meetings and exercises power delegated to it by the Governing Council. It holds meetings every Tuesday.

The General Council is a transitional body that carries out responsibilities taken over from the European Monetary Institute (EMI). It comprises the President, Vice-President, and Governors of the national central banks of the EU member states. The body will continue to exist until all EU member states have adopted the euro. As of 2017, only 19 out of the 28 EU member states have taken up the euro as their single currency. This body is charged with fixing the exchange rates of currencies for countries preparing to join the Eurozone.

The Supervisory Board comprises the chair, vice-chair, four ECB representatives, and representatives of national supervisors. The board plans and executes the supervisory function of the ECB. It also proposes draft decisions for the Governing Council through the non-objection procedure.

The ECB was granted a monopoly status on the issuing of banknotes in the Eurozone area. The ECB makes weekly announcements on the amount of money it wishes to supply and the minimum acceptable interest rate. Eligible banks that have provided collateral then place their bids for the ECB funds through an auction mechanism. Once the banks have obtained funds, they use them to advance loans to individuals and businesses all in theory.

The European Central Bank is also responsible for banking supervision in all the EU member states. The ECB carries out this function through the Single Supervisory Mechanism (SSM) that comprises the ECB and competent national authorities in the member countries. Therefore, the ECB has the power to grant and withdraw banking licenses, conduct supervisory reviews, and set higher capital requirements to counter financial risks. The ECB directly supervises 124 significant banks that hold 82% of the banking assets in the Euro area.

The tensions within Europe have never abated between members. The first President of the Bank was Wim Duisenberg, who was the former president of the Dutch central bank. The French objected and demanded that the ECB should be headed by a Frenchman, Jean-Claude Trichet, because the ECB was to be located in Germany. A gentleman’s agreement was finally reached whereby Duisenberg would step down before the end of his mandate and Trichet would become the head of the ECB in November 2003. He was replaced by an Italian, Mario Draghi, who became the head of the ECB between 2011-2019. Now we have Christine Lagarde, who is French, taking over the ECB from Draghi.

AUTHORIZATION

The primary objective of the European Central Bank was laid out in Article 127(1) of the Treaty on the Functioning of the European Union. That stated its authority was to maintain price stability within the Eurozone which is rather vague. The Governing Council in October 1998 took it upon themselves to define “price stability” as meaning inflation of under 2% on “a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below 2%.” Therefore, the ECB was created differently from that of the Federal Reserve System which was intended to be simply an independent system where the banks were shareholders because that was a contribution to create the Fed outside of taxpayer money. Hence, the ECB has only one primary objective and it was envisioned as a division of the government. The “price stability” has never been defined in statutory law which leaves a very wide view of interpretation.

The Governing Council sought to confirm this definition of “price stability” in May 2003. They clarified that “in the pursuit of price stability, it aims to maintain inflation rates below, but close to, 2% over the medium term.” Hence, all such lending to credit institutions had to be collateralized as required by Article 18 of the Statute of the ESCB. This so-called “clarification” is by no means a defined law.  Therefore, this vague directive of maintaining “price stability” is further complicated because, under the Treaty, it also directs that “the ESCB shall support the general economic policies in the Union with a view to contributing to the achievement of the objectives of the Union.” This leaves the door wide open for the ECB under Legarde to suddenly declare that climate change must be a policy of the ECB. This clearly makes the ECB an arm of the EU Commission and not independent as is the case with the Federal Reserve.

Since November 4, 2014, the ECB has been responsible for specific tasks concerning policies relating to the prudential supervision of credit institutions within the framework of the Single Supervisory Mechanism. As a banking supervisor, the ECB also has an advisory role in assessing the resolution plans of credit institutions.

European Parliament & ECB

The ECB President reports to the European Parliament on monetary issues in a quarterly Monetary Dialogue. The ECB also prepares an annual report on monetary policy which is presented before Parliament. Parliament adopts a resolution on this annual report. The new supervisory responsibilities of the ECB are matched with additional accountability requirements as laid down in the SSM Regulation. The practical modalities are governed by an Interinstitutional Agreement (IIA) between Parliament and the ECB. The accountability arrangements include the appearance of the Chair of the Supervisory Board before the competent committee; answering questions asked by Parliament, and confidential oral discussions with the Chair and Vice-Chair of the competent committee upon request. In addition, the ECB prepares an annual supervisory report, which is presented to Parliament by the Chair of the Supervisory Board.

Interinstitutional Agreement (IIA) between Parliament and the ECB

CONCLUSION

The ECB is trapped. It cannot raise rates to raise money and it has destroyed its bond market. The only way out is to default on all debt and they will do that by declaring it to be now a perpetual debt that only pays interest like an annuity. This will allow them to escape the formal default which is inevitable.