Posted Jun 5, 2022 by Martin Armstrong
The Canadian National Post has reported on the rising concern that the World Economic Forum is making all the calls as to what the Canadian government should do. They admitted that this question has “gained remarkable currency among Canadian[s]” particularly since the events of the Freedom Convoy. While they concluded that the WEF is not controlling Canada, implying this insanity is all the brainchild of Trudeau, they admitted that “it’s not entirely crazy to jump to the conclusion that an international cabal of ultra-elitists is secretly pulling the strings on world affairs (particularly when they keep claiming as much).”
I recently finished another documentary where I was actually asked: “Would you debate Schwab?” I answered “Yes!” I explained that throughout my career, I have been butting heads with academics worldwide. The ONLY one I met who was actually interested in how the world functioned was Milton Friedman who I cherish his autographed photo I keep on my shelf – not a bust Lenin as is the case with Schwab, which really is on his shelf.
I was impressed with Milton Friedman who came to listen to me speak in Chicago. When I was finished, he came up and said: “Hello. I’m Milton Friedman. That was the best speech I ever heard.” I was probably the largest foreign exchange adviser in the world. That is what made my company so famous. I have told the story before that prior to 1985, I was in Geneva having lunch with the head of one of the major banks in Switzerland. I had prepared a list of names like European Advisers I was going to open an office in Europe. I asked his advice on what name to use. He told me to name one European analyst. I was embarrassed for I could not. I apologized and said I’m sure there must be, but I just did not know of any. He chuckled and said there were none.
He then explained to me how currency had become political so no analyst working for a bank would dare say that their currency would decline. That would have been a political statement against the government. After World War II, politicians used their rise in the currency as a political validation that their policy was correct and so vote for them.
He said to me, that the reason everyone uses you is that you “do not give a shit if the dollars goes up or down!” He explained to me why we had become so big on a global scale. As an American, saying the dollar would decline or rise was not a political assault upon the government. Nobody ran for office claiming the dollar was up against the Mexican Peso so vote for me! They would have been laughed off the stage. It was another lesson in life that you cannot judge others by yourself.
As fate would have it, I had a client who was a senior VP at Franklin National Bank, which was once the United States’ 20th largest bank. Most people have no idea but in 1951, it was Franklin National Bank in Long Island, New York, that issued the first card that most resembles today’s general-use credit cards. For the first time, customers could purchase items and pay them off quickly or be charged interest if the debt carried over. Participating merchants had to pay a fee for each card purchase. By 1952, about 28,000 customers and 750 businesses had signed up for the card which eventually became the Mastercard. The concept started spreading that same year when a bank in Michigan licensed the charge card program from Franklin. The idea was so popular, that in 1958, American Express launched its first charge card.
On October 8, 1974, it collapsed in obscure circumstances, involving connections to the Italian Michele Sindona who was alleged to be a Mafia banker. It was at the time the largest bank failure in the history of the country. Because I knew futures and international finance, I was asked to take a look at the problem the bank had. The bank failed on a 10% move in the Italian Lira. Nobody seemed to understand international finance back then. Currency futures began trading on May 16th, 1972 following failed negotiations to reestablish a fixed exchange rate system. Thus being a trader, my client Walter Zenergle, asked if I could take a look at the problem. it was clear, that nobody yet understood about hedging risks except those of us who were traders.
The academics dealt in theory. Traders had to learn from their mistakes. After the failure of Franklin National Bank, it seemed that whenever there was an issue with currency, I seemed to get the call. When the Asian Currency Crisis hit in 1997, I was asked to come to Bejing to meet with the central bank. I was surprised that they had not called in some academic from Harvard. But when I got there, I discovered they had sent their people to work around the world on trading desks. They then returned to run the central bank. When I was asked by guys in the Fed and the US Treasury on my return, what was my impression of the Chinese central bank, I responded: “I was impressed. They only hired people with experience.”
The problem with academia has always been that it is entirely theory without any real-world experience. That is what impressed me about Milton Friedman. He came to listen to me speak to LEARN what was happening in the real world. Milton had said to me also that day, that I was doing “what he only dreamed about”. In 1953, Milton proposed a floating exchange rate system whereby the free markets would impose checks and balances against the policies of the government. Milton has been the ONLY academic I have ever met that bothered to investigate rather than theorize as did Marx and even Keynes and certainly Schwab how they think the world should function without understanding how it does function.
Unfortunately, Trudeau is listening to Schwab. Canada, Australia, and New Zealand as well as Europe are following the academic directive of Schwab to this fictional world that can never exist because it is demanding that human nature MUST be suppressed, altered, and in truth – eradicated. Schwab is NOT in actual control. But the people running these political bodies are kissing his ring as if he is the godfather of economics.