Posted Apr 11, 2015 by Martin Armstrong
Thank you for the research and insightful posts you share with us each and every day. Question: Since you are keen of market cycles, I wanted to get your take on the 7-year Shmita cycle and the 49-year Jubilee cycle that arises from the 7-year Shmita cycle.
As you know, Shmita means ‘shaking’ or the ‘release’. Of course, such words loosely interpreted more often than not to purposely fit a particular group or persons viewpoint. My question to you is; is there any relevancy to the 7-year Shmita cycle and the full 49 year Jubilee cycle?
During the year of the Jubilee (2015 – 2016), it is said that creditors return the land to the people and all debts are forgiven. Taking into consideration the work you’ve done and how this concept can be applied to our current monetary regime, could all this mean that the more likely solution as we turn the corner in 2015.75 is a complete overhaul (reform) of the economic and political system; one that is less oppressive and more comprehensive?
Note: Interestingly. The Shmita targets September 2015 as the year were the ‘release’ or ‘shaking’ of world events ends.
ANSWER: The entire debt cycle has been with us for a very long time. There are even debt crisis in Babylon and ancient Athens. It appears that we will have to address this pending Sovereign Debt Crisis for it is unsustainable. The fact that this also lines up with the ECM is another great curiosity. It appears that there is some truth in old wisdom. It is always the debt that destroys so to a large extent, this may have been a wise preventative measure that tempered the boom bust cycle. Shmita cycle (sabbath year) is clearly a practical statement of an economic problem of leverage.