When Will the Monetary System Crack?

QUESTION: Mr. Armstrong: Thank you so much for coming in front of the curtain. Your views are absolutely enlightening. You provide colour to events from experience and I have sat in meetings at the …….. bank shocked at the lack of understanding that emerges from the board of directors. You are correct. They are the people who are simply bureaucrats lacking any experience in the field they pretend to direct. I can see from our own movement of capital on behalf of clients that they are indeed just trying to get off the “grid” as you eloquently put it. They seem to be focused on real estate, but there are some starting to notice the American stock market even here in London. I can also see what you are talking about with capital flows and the dollar rally that seems inevitable from the European perspective even though I am not allowed to speak to the press working in a bank.

My question is just this. Will the monetary system crash in 2020 or will it be on the next cycle in 2024?

Thank you again from those in the field who can only read and not speak. You do it for us. Good on ya

EP

PS It is interesting to watch people trying to plagiarise you claiming to see war cycles and trends without any depth of what lies behind it.

1963 $1 note (600)

ANSWER: I am dealing with this question in the coming Gold Report. However, suffice it to say the crisis years are 1932 – 1963 – 1995 – 2026 based upon the Pi cycle. There is also the Monetary Crisis Cycle that I will deal with in the report. Of course, 1932 was not just the low in the US share market and the incident of the Bonus Army, it was the Presidential election that shifted power to the Democrats. FDR swore the night before the election in a radio address that it was absurd that he would confiscate gold. This rumor was being spread and the defense against it was the typical conspiracy theory argument. FDR nonetheless devalued the dollar subsequently and confiscated gold making 1932 the real effective peak.

The next target 1963 was when silver was pressing higher and 1964 was the end of silver coinage with the redemption of the Silver Certificates and the birth of even $1 Federal Reserve notes. In the 1963 series of currency, we see the appearance of the Federal Reserve note and the end of Silver Certificates.

JYTEC-Y

 

This brings us to 1995. Here we have the low in the dollar and the high in the Japanese yen on the first thrust. This was the move that really broke the back of Japan. The subsequent decline in the dollar was the capital contraction in Japan as people liquidated foreign investments due to the fall in value in yen terms. Consequently, the land of the rising sun began to set in 1995.

1-ECM 2032

 

This brings us most likely to the Pi cycle target after 2024.35. That is when 911 took place to the day and when Greece began with the realization that there was trouble in the sovereign debt world of Europe.

This previous 8.6 year wave that peaked in 2007.15 was just the beginning with the realization of the Sovereign Debt Crisis. The current wave that peaks in 2015.75 should start the debt crisis with more government being forced into insolvency. This is what the IMF proposal is all about and the Fed looking to impose an exit tax on the most liquid market in the world – US debt. The next wave 2024.35 will be the pulling apart of the world monetary system and the peak of this wave in 2032.95 is most likely where the tangible assets rise as a store of value in a world of uncertainty with respect to the medium of exchange.

ECM Athen 455-404BC

The bottom of the 3rd wave (2011.45) in our immediate 51.6 year wave was the start of the shift in capital to private investment on a visible level against domestic views and statistics. This is when I warned the stock market would breakout and move to new highs, which was reported by Barrons. Curiously, this was the same position in time on the wave of the Decline and Fall of Athens 455-404BC. The bottom of that 3rd wave was the uprising orchestrated by the Oligarchy against Pericles in 430BC and he died the next year.

The arrogance of Athens and the Oligarchy is the exact same problem we have with government today and the abuse of the NSA. All governments are doing the exact same thing precisely on the same timeline as the fall of Athens. They are trying to eliminate the right of the people to vote and we are experiencing not merely their arrogance, but their opposition to any democratic processes the same as Cleon did in prosecuting Pericles for being honest. If this plays out in the same fashion, the US will lose its standing as the financial capital of the world as did Athens, and the real danger is with the war cycle turning up, it is the arrogance in the West among our politicians that can invite the invasion as it did in the case of Athens.

History repeats because human nature repeats and never changes. Just as the Oligarchy was determined to take back control of Athens banning democracy, we see the very same thing taking place today – hello the Troika is a controlling body of representatives of the ECB, IMF, and the EU Commission that is unelected by the people – Oligarchy of career politicians. The role of the Troika is to negotiate with member countries of the Eurozone where the state budget has run into difficulties. That is correct – the IMF and Christine Legarde holds an unelected political position without any election process of the people. This is the same as any Oligarchy.

TROIKA (Triunvirate)

  • European Commission President (elected by heads of state not people)
  • European Commission Vice-President , Commissioner for Economic and Monetary Affairs (Official) Olli Rehn Finland Finland
  • European Commission designated negotiator; Matthias Mors Germany
  • European Central Bank President of the ECB; (Official) Mario Draghi Italy
  • European Central Bank Head of Department at the ECB, named negotiators Klaus Masuch Germany
  • IMF Managing Director; Christine Lagarde France
  • IMF designated negotiator: Poul Thomsen Denmark