Posted Jan 18, 2020 by Martin Armstrong
COMMENT: A suggestion.
I really think the annual Lobby Day in Virginia, scheduled for January 20, should be considered when discussing the turning point in the ECM. The potential for confrontational violence between the state of Virginia and the federal government on one side, and the Second Amendment supporters on the other, is high. This could be bigger than Charlottesville.
REPLY: A lot of people have written in about Virginia and West Virginia has invited the regions in Virginia to separate and join West Virginia. This clash over gun rights as well as the rising separatist movement to join West Virginia is also taking place on the ECM. There appears to be a tremendous issue involving political change coming due all aligned with this ECM turning point, not the least is the Trump Impeachment. Then we have the Russian constitutional crisis. On top of that, we have bubble tops forming in many different markets.
We are experiencing as we move closer to the peak of this 51.6-year wave in 2032, the number of events that are taking place on these turning points will increase. The 1968 turning point marked the second crash in the stock market from the 1000 level in the Dow and the break in the Bretton Woods where they moved to a two-tier gold market – official v free market as gold began trading in London.
The 1972.75 turning point, which was the equivalent to the peak of the next 8.6-year wave in 2024 marked the political turning point in the career of Richard Nixon. The Watergate break-in took place on June 17, 1972, and Woodward first spoke to his contact who became known as Deep Throat the following day – FBI Associate Director Mark Felt.
Felt had been providing leaks from the FBI to Woodward concerning the assassination event of George Wallace running for President in May 1972. The turning point also marked the infamous re-election of Richard Nixon on November 7, 1972. Of course, halfway into that cycle came the impeachment proceedings against Nixon followed by his resignation.
January 1977 marked the inauguration of Jimmy Carter which set the stage for the political reaction that led to the entire rise of “Conservatism” in politics that resulted in Ronald Reagan’s landslide victory in 1980. But 1977 also marked the low in the stock market in terms of book value from the previous wave which had peaked in 1929. It was because of this 1977 change in trend that our computer began to project that Dow would rise to 6,000 in just a few years which became the Takeover Boom.
It was also on that turning point in January 1977 when there was the coldest weather which dipped so far south it remains the only recorded snowfall in Miami Florida. That resulted also in the presumption that there was significant climate change unfolding. But the experts warned we were headed into an Ice Age, not global warming.
The peak of that wave was 1981.35 which market the high in interest rates. Thereafter, rates declined into 1985 but the capital inflows to the dollar sent it to record highs driving even the British pound down to $1.03. That led to the Plaza Accord to try to manipulate the dollar down after it had been driven up by interest rates.