COMMENT: Marty, I cannot believe all the organizations, press articles, and forecasts that now claim capital flows are headed into the USA. This has been your model for decades and I remember you explaining how the data is gathered on a collective basis globally and is not from a single published source. You are the most plagiarized forecaster perhaps in history. Can’t wait for the WEC.
KG
REPLY: Yes, it is amazing. There is no official single source that publishes capital flow data. We gather this info from many sources and put it all together on a daily basis. This is the map you will see in the new Socrates system for subscribers. We will provide the current flows and the projected flows for the next day.
While there are analysts now claiming it is capital flows, they do not actually have the model to project them on a daily basis. China has come out and stated that they now are using Capital Flow Analysis to base monetary policy. We can see the difference for it has been strikingly more stable and a far more realistic way to manage the economy than what we are seeing in Europe or the USA for that matter. It is BECAUSE of this model that we are able to see how FATCA is destroying the world economy at an alarming rate.
Our models on Capital Flows were used to illustrate the cause of the 1987 Crash and it was why the Brady Commission did not blame the markets or some short player. Instead, they came out with just a soft explanation saying they believed it was caused by currency movement, which was placing the blame on the formation of G5 without saying that directly.
When Rubin was starting the same type of comments, I wrote to him to say hey – knock this off. It was Timothy Geithner who responded.
I really do not know how anyone can claim to be using a model they do not have the data for, and pretend it has just emerged. Capital Flow Analysis was the central theme in the Greatest Bull Market in History I published back in 1986 that have sold for $3,000 on Ebay. Sorry, I have only one copy myself. But we will republish this soon. It is in the editing stage for I have added probably 500 pages with a lot more modern charts and illustrations.
