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Interest Rates & the Collapse of Public Confidence

QUESTION: If we truly are a moving to a cashless society as is evident, and that is massively deflationary, which I agree with, wouldn’t that drive govt. yields LOWER?  How do you reconcile a sovereign debt crisis and rising yields with a massive slowdown in inflation and growth that these misguided policies are driving us towards? […]

Real Estate – Hedge Against Economic Totalitarianism

QUESTION:  Martin, I live in the Intermountain West.  Our local real estate market has been in the toilet for years.  One local broker has noted that her office typically has two homes in sales process this time of year.  This spring they have twenty-two homes in process — eleven times the recent average.  I think […]

Germany Goes Nuts: Coincidence, Luck, Influence or Something Else?

QUESTION: Mr. Armstrong, I realize you do not believe you are influential. However, you began your European tour on April 28th and ever since the bond markets have declined and you said buy gold coins in Stuttgart and Germans are frantically buying gold all of a sudden and the economy has not yet collapsed. This […]

The Collapse of Socialism – It’s Our Turn up to Bat

The entire idea of Marxism is coming to a real crash and burn. China and Russia experienced that collapse in 1989.95 with the turn in the Economic Confidence Model. The events began with the crackdown that initiated on June 3-4, 1989, which became known as the Tiananmen Square Massacre.  The fall of communism began when military troops with […]

Poland – Zloty

Poland is legally obliged to switch its currency to the euro under the terms of its 2004 EU entry. Nonetheless, Poland has continually demurred amid the Eurozone’s financial woes and voter opposition to exterminating the zloty, its national currency. Killing the zloty will only bring massive inflation to Poland and serious harm to its economy. Poland’s […]

Shotgun Wedding v Bailouts

QUESTION: Hello Martin, Did banks receive government bailouts prior to Glass-Stegal being repealed? If so, if they are forced to return to relationship banking, why can’t the big boys simply drop lending standards and keep bad loans on the books (with a nod and wink from congress), knowing they can strong arm politicians into another […]

So What Can We Do?

This Sovereign Debt Crisis is the nature of the beast we face. Understanding that crisis is half the battle, for after the business cycle turns, there will be a lot of finger pointing, but you can bet it will never be pointing at government. The country does not matter, as the people are the same. […]

The Coming Crash of All Crashes – but in Debt

Why are governments rushing to eliminate cash? During previous recoveries following the recessionary declines from the peaks in the Economic Confidence Model, the central banks were able to build up their credibility and ammunition, so to speak, by raising interest rates during the recovery. This time, ever since we began moving toward Transactional Banking with the […]

Creating the Bond Bubble – Role of the Stock Market

All over the place they are touting that the stock market will crash and burn. Indeed, when you say there is a coming crash, everyone immediately assumes that means the stock market. It appears that the bulk of those who claim to be analysts are all proclaiming the coming stock market crash. This is typical […]

Yields Are Collapsing on Short-End

The amount of cash rushing around on the short-end is stunning. Yields are collapsing into negative territory, and this is the same flight to quality we began to see at the peak of the crisis back in 2009. The big money is selling the 10-year or greater paper and everyone is rushing into the short-term. […]