Posted Apr 9, 2015 by Martin Armstrong
The 2007.15 Peak in the ECM set in motion a profound sea-change within the economy on many levels. It was the beginning of the decline in economic power of the West and the shift in economic power to the East. Liquidity has failed to return and every office building I drive by even today has a sign out space for rent. Government has been systematically destroying business by their greed for taxes. You have the people blaming fractional banking as the cause of everything that they might as well add into their conspiracy Global Warming and then we have those who hate corporations and claim they don’t pay enough in taxes when they pay corporate income tax, a dividend tax to pay out, and then the shareholder has to pay tax a third time on the same money received as a dividend. On top of all this, we have the socialists who want to hand all power to government as if they are actually honest blokes.
Governments are run by primarily one profession – lawyers. Consequently, they will attack every industry except their own. They never see themselves as the problem. Starbucks spends more on healthcare than they do on buying coffee to resell. Then we have the hospital medical profession (not local doctors) which are corporate conglomerates who say the hell with the Hippocratic Oath that requires a new physician to swear to uphold specific ethical standards. These medical conglomerates are run by bean-counters and lawyers. They are only about increasing profits and they do not want to take care of anyone for free in accordance with their Oath. So they bribe other lawyers in Congress to introduce Obamacare and fine anyone who does not have insurance. In the first draft, they wanted you to be imprisoned if you did not buy insurance and the hospital had to care for you. Great ethical perspective.
Government is incapable of reform that benefits society because it is dominated by lawyers who protect their own profession. If injuries were predefined that say you lost an arm distinguishing between your dominant, then they could not argue before a jury that somehow your arm is worth more than another’s. If you are injured and that deprives you of the ability to continue to earn what you have been earning, then that should be the limit to compensation.
Government is for sale. The proposal I have made for political reform that there should be no political contributions and this should be funded by the state was actually something JFK argued because he saw outside money coming in to buy candidates to support Israel having nuclear weapons. Supposedly, the Israeli lobby approached JFK. It was because of this meeting that JFK wanted to work for a law that would have the U.S. Treasury pay a set and equal amount for all politicians running for president. That effort failed. Political reform is the least likely to be embraced in Washington.
The Obamacare will destroy more jobs for now it clearly makes sense for business to move toward automation and then you will eliminate the healthcare costs. In the 1980s, we gave healthcare to the whole family. It was not that crazy. Today, that will become taxable income as of 2016. Obamacare will destroy even more jobs than anyone imagines and then the greed of the state has police handing out tickets to kids shoving snow. These people are destroying our civilization at the core.
We are at the threshold of major sea-change in the economy. Even during this past month the United States lost its dominant political role as the underwriter of the global economic system. It is becoming obvious that China will exceed the US as the leading world economy and that handwriting is on the wall. The US tried to throw its weight around telling its allies not to join with China. Nevertheless, China’s effort to establish a major new institution to compete with the Bretton Woods structure of the IMF and World Bank has succeeded because of its economic clout. The failure of the US to persuade dozens of its traditional allies, starting with Britain, to stay out of China’s new venture has utterly failed. This is showing what our model has been projecting – China will pass the USA in time.
So as the world moves to a new era in which the global economy will grow less than in previous decades, the economic powers will shift and churn. The wealthy economies had lost during the financial crisis some of their ability to grow, which seems gone forever. The West is in a deflationary mode as taxes keep rising suffocating economic expansion. We are in the Dark Age of Socialism and there is no reversal without serious change.