Manipulating the World Economy
by Martin Armstrong posted November 26th, 2012;Copyright all rights reserved
Manipulating the World Economy is what governments and bankers have been desperately trying to do. The entire foundation of the “New Economics” of which Paul Volcker mentions in his Rediscovery of the Business Cycle, was to create a flat line in the economy. Governments have been trying to do that for so long, they have forgotten what is reality. No worries though! The Free Markets are starting to remind them.
The PI mid-point on the declining wave from 2007.15 into 2011.45 was April 16th, 2010. What event took place that day? It was the 16th of April 2010 when the whole Sovereign Debt Crisis erupted onto the headlines around the world precisely with the Economic Confidence Model to the day. Fury erupted in Greece over proposed IMF intervention where the Greek government admitted that it would need help from the International Monetary Fund. This realization played out as a proposed bailout up to €45bn. http://www.guardian.co.uk/business/2010/may/05/greece-debt-crisis-timeline
This same point on the previous wave produced the 911 attack. While it is nice to point the finger at me and say I am manipulating the world economy because no one else can project to a specific day, just perhaps it might be that we really live in a complex dynamic world that everything of precisely ordered and we only think someone is in control. We may be just a mouse running in a maze without realizing that our direction is a product of our own reactions that follow a standard pattern sequence. I wrote: in “The Business Cycle and the Future (Part II)” back on October 10th, 1999:
“For example, using the breakout high of 1997 in the NASDAQ 100
in January of that year projects a high for March 2000. Looking
at the July 1998 major high that coincided with the model projects
a low for September 2001 with high volatility. The next turning
point would be projected from the July 1999 high brings us to
September 2002 for a probable major low at that turning point.”
Take the high of the previous wave 1998.554298. Add Pi in terms of years and months 3.141. This produces the date 2001.695. Take 365 days and multiply .695 yields 253.675 days into the year 2001. That amounts to September 11th, 2001. That is the same point on the 2007.15 wave that produce the Sovereign Debt Crisis – the crack of Greece.
Instead of trying to blame me for manipulating the world economy as if I am the character in a James Bond movie, how are they going to explain when the precise day still can be determined after I am dead? Just perhaps, I may have stumbled upon something extraordinary – that the economy is far more precise than anyone ever imagined. What is at stake is the entire economic-political structure. If what I stumbled upon is real, then how government operates is wrong, a delusion, will collapse into dust, and result in blaming someone else leading to war.
This is why so many want me to form a real international think tank which does not accept funds to produce bullshit studies to support some political spending agenda. We are headed into a crisis period where our models on civil unrest/war kick in come 2014. So what we have seen as civil unrest now, is brewing into a serious storm. In Britain they want a referendum on leaving the EU and Scotland votes in 2014 of separating from England. In Spain there is a separatist movement north from the south. In Italy the same is starting to percolate there as Sicily is Italy’s version of Greece. There is a risk of societies starting to break apart even in the USA because Marxism has destroyed the very fabric of society. “Vote for me because I will take someone else’s property and give it to you” is starting to grow very old.
Free speech is under assault everywhere. Trying to suppress the truth is spreading into every corner of the global economy. Even the fanatic Goldbugs, who bad mouth me because I will not say buy gold every day and hate my guts for daring to disagree with their theories, demonize me to try to prevent others from looking at facts they cannot explain. They too adopt the same policies as government – suppress free speech whenever it disagrees with their propaganda. Gold is the perfect movable hedge against government – not a religion. They ban together to try to silence what I have to say no different than any tyrant in the past. They cannot accept that gold is an investment that rises and falls like everything else. Like the mural here in Berlin where I am writing this now ahead of our Berlin Conference next weekend. (English), there is free speech and then their is propaganda designed to manipulate the minds of others just to support your own beliefs. Whenever any group tries to suppress any opposition, freedom, liberty, and everything worthwhile in society is simply lost.
We are headed into an abyss from which society may enter a new Dark Age. Greece was the tip of the iceberg. Here are the stats on the percent of government consuming the national productive forces of their people. Greece is not anything unusual (see table below).
Country | Taxes as % GDP | Public Sector Spending as % GDP |
Greece |
35.1 | 46.8 |
France |
44.6 | 52.8 |
Germany |
40.6 | 43.7 |
United Kingdom |
38.9 | 47.3 |
United States |
26.9 | 38.9 |
Japan | 28.3 | 37.1 |
All governments only borrow, never pay anything down, and are now shelling out the wealth from the productive forces not even to the poor, but to the bondholders. Why do you think there is civil unrest spreading everywhere? Europe has institutionalized debt agreeing that deficits should be held to 3% of GDP. That means it is fine to keep borrowing forever. Nobody reads Ann Rand’s Atlas Shrugged. We are systemically destroying the productive capacity of society. The Abyss we are headed into is so severe, thank God I will not be around much longer to half to witness this insanity.
I have met with numerous governments on this world tour. I have been invited to start courses at 3 universities around the world. I am only one person and despite the demonizing, I cannot manipulate the world economy for if I did, I would stop this insane perpetual government borrowing at least as a legacy. I have received invitations to hold conferences in several smaller countries. Everyone knows something is wrong. Just do the math for that 2 year old with a pocket calculator can figure out we are going bust in a few years.
What the Goldbugs fail to get, is we are talking about the systemic collapse of our political structures. Governments have created money laundering agencies all sharing info among themselves and the target are not terrorists or drug dealers. It is the wealth of the productive forces. Banks have to verify to whom money is being sent. If they cannot – they will not. This is all about taxes not 19 guys and a camel. Gold is not safe to even keep in banks. On one phone call, the bank will hand over your gold. Bloomberg services require your fingerprint to use. With a password, you can say anyone stole it. With a fingerprint, the government knows it is you and what you are even looking at on Bloomberg. There is no alias possible for trading. They are tracking everything and everyone all in pursuit of money to keep the debt rolling. When it stops – look out.
Government manages only by crisis. We have no democracy only republics with professional politicians who voting on all this nonsense without you knowing anything about what they are signing your rights away. As the debt simply grows with no end in sight, the productive forced are being destroyed in the name of Marxism but the transfer of wealth does not go to society, but to the bondholders. Welcome to the new reality.