Euro Zone

Raab Resigns from BREXIT negotiations – May is tottering on Losing the PM Post | Armstrong Economics

Posted on by johnbarleycorn12

The British pound has dropped 1% today and is trading in the mid 127 level. The rumor running around the City (the financial sector in London) is that Prime Minister May has called an emergency press conference and she will resign handing power to Michael Grove. However, it may be more likely that Grove has been offered the job of Brexit secretary in the wake of Dominic Raab’s resignation. Theresa May clearly does not know how to negotiate. Perhaps she should ask Donald Trump to represent Britain in BREXIT negotiations. Thacertainlyin would liven things up and it certainly would end up with a much better deal for Britain. The pro-BREXIT supporters are demanding a shift in the government’s negotiating strategy first.
— Read on www.armstrongeconomics.com/international-news/britain/raab-resigns-from-brexit-negotiations-may-is-tottering-on-losing-the-pm-post/

The globalists got to May and weakened her resolve.

SPD Puts forth Its Manifesto to Federalize Europe | Armstrong Economics

Posted on by johnbarleycorn12

In Germany, the SPD is now pushing for a revolution in Europe for all member states to surrender their sovereignty to Brussels. They are arguing to federalize Europe and thereby create an integrated Europe of one government. It was the SPD that really won in the German 1918 Revolution. Under Weimar, the SPD was able to put its ideas of social justice into practice by influencing a number of progressive social changes while both in and out of government. The SPD re-introduced and overhauled the Bismarckian welfare state, providing protection for the disadvantaged, the unemployed, the aged, and the young. The SPD is a full-blown Socialist State advocate following the ideas of Karl Marx. At theaters across Europe, the SPD organized a symbolic proclamation to create a “European Republic” which was announced from the balcony of the Hamburg Thalia Theater, as actors released the new the manifesto written by Ulrike Guérot and Robert Menasse on Saturday. The aim of the project is to sensitize the public to the idea of a pan-European democracy and statehood. The occasion is the 100th anniversary of the end of the First World War and the almost simultaneous proclamation of republics in various European countries. The SPD manifesto calls for a Europe without nations and borders, thus to surrender sovereignty to prevent the resurgence of nationalism. EU Council President Donald Tusk has warned against the emergence of populist and anti-integration forces in Europe and the US. He has thus supported the federalization of Europe pointing out the isolationist tendencies in the USA and in Britain. The former head of the SPD Martin Schultz (19 March 2017 – 13 February 2018) also called for the federalization of Europe. They see no problem with suppressing 70% of the people who are not supporters of SPD.
— Read on www.armstrongeconomics.com/international-news/europes-current-economy/spd-puts-forth-its-manifesto-to-federalize-europe/

The globalists are staying busy

Bundesbank warns of Coming Pension Crisis | Armstrong Economics

Posted on by johnbarleycorn12

The Bundesbank has come out warning that there is a German pension crisis. They have proposed that states raise the pension tax and that they should gradually increase the retirement age because the life expectancy in the future has risen. Central Bank President, Jens Weidmann, has stated that he is generally in favor of raising the statutory retirement age beyond 67 years. We must understand that the ECB policy of “stimulating” the economy with negative interest rates has bankrupted state pension plans. This theory that lowering interest rates to get people to borrow and thus manipulate demand higher has NEVER been proven to have ever worked. The consequence of what we now face is a major pension crisis that is undermining the future of Western economies.
— Read on www.armstrongeconomics.com/world-news/pension-crisis/bundesbank-warns-of-coming-pension-crisis/

Coming to America soon

The Fate of Germany v Euro – The Export Economic Model Risks | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Mr. Armstrong; I watched the new documentary on your solution. I really want to thank you for everything you do and for free. It is so nice to see someone who actually gives back and has no personal agenda to enrich themselves. My question is this. You mentioned the reason why the United States economy was the envy of the world and differentiated it from Germany which has an export model economy that is why they supported the euro, to begin with. What do you see for Germany ahead? Thank you CB ANSWER: Germany has an export-dependent economy which has directly benefited from the continent-wide trade liberalization and the creation of the Euro which eliminated foreign exchange fluctuations for German manufacturers in Europe at least. However, that simply means that Germany also has the most to lose from a worsening Euro crisis and a resulting wave of Euroscepticism. The political freedoms lost with the creation of the Euro will tear Europe apart. The refusal to consolidate the debt within Europe was profound. The Italy Crisis demonstrates what I have been warning about. BECAUSE there is no central debt, Brussels sticks its nose into every budget of every member state. The economic conditions within Europe are different between each member. Germany is an export economy and Greece is a tourist economy. There are great differences between each member so one policy does not fit all. They are trying to PRETEND they are creating the United States of Europe but that is a joke. The refusal to have consolidated the debts created an unsustainable political union. The USA has a federal debt and budget. Washington does not stick its nose into the budgets of all 50 states. They issue their own debt which is NOT ACCEPTABLE for reserves of any bank. They are also all on their own paying different rates of interest according to their credit rating. In the EU, they are trying to manage the budgets of every member which will only lead to political differences. The structure is absurd and then the banks have to be politically correct and hold the debt of all member states. Thus, the risk becomes if one member is in a crisis, they bring down the entire system. In the USA, if Illinois goes bankrupt, it has no impact on the dollar, the national debt, or politics in Washington. The greatest risk to Germany is the collapse of the Euro means that the single currency relieved their manufacturers of having to manage currency risk. Suddenly, the currency risk returns, the export model fails, and the lack of a domestic consumer market means that the economic conditions in Germany decline rapidly because of their dependence upon everyone else doing well.
— Read on www.armstrongeconomics.com/markets-by-sector/foreign-exchange/euro/the-fate-of-germany-v-euro-the-export-economic-model-risks/

Life in the EU

Europe Unemployment at 8.1% – The Economic Death Spiral of the EU | Armstrong Economics

Posted on by johnbarleycorn12

The latest data from Euro Stat for September 2018 demonstrates the complete failure of the ECB and its Quantitative Easing. The Euro area (EA19) seasonally-adjusted unemployment rate came in at 8.1% in September 2018, which was down slightly from the year/year perspective of about 8.9%. This above all proves that the entire theory of the Quantity of Money is bogus. It also demonstrates that the Austerity Policy of Europe has caused unbelievable social damage resulting in what is being called the Lost Generation with unemployment among the youth reach 60% in Southern Europe. Without a COMPLETE rejection of Austerity and a COMPLETE overhaul of the European Union structure, there is absolutely NO HOPE what so ever of Europe coming out of the death spiral. This will only get worse as politicians, with ZERO experience in trading markets, will debate and refuse to accept responsibility for their actions. Then you opened the doors to refugees when unemployment is at a serious high? And you wonder why there will be civil unrest and backlash against migrants? As Einstein pointed out, you cannot possibly solve our problems with the very same thinking process that was used to create them.
— Read on www.armstrongeconomics.com/international-news/europes-current-economy/europe-unemployment-at-8-1-the-economic-death-spiral-of-the-eu/

We are on the same trajectory if the open borders globalists seize power

Europe & Risk of Revolution | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Thank you, Mr Armstrong, for your lifetime work. mindblowing as always. I picture Europe now as Greece during the Roman Republic (before its conquest). isolated, corrupted to the core. And the US as the new Roman Republic. Will it become an empire after 2032? Marius was the man of the people and in the end, he was defeated by Sylla (Senate if I m correct). But Marius’ idea was carried on by Cesar. Was he a socialist before the hour? as a European, which side is the safest to pick when we will be dragged in the conflict??? thanks again! best regards from France ANSWER: Ironically, people may think history is just the past. The next time you watch Star Wars, look closer. It is about this very struggle of the people versus the Empire. Instead of swords, they fight with laser swords. If you look at the royal guard, they had cloaks and helmets much as the Romans were dressed. This is actually a saga that is repeated time and again throughout history. Pericles in Athens was charged and put on trial as they are trying to do with Trump. Today, we call it the Deep States. In Roman times, Caesar fought against the corrupt Senate who was the political party known as the Optimates. You are correct, Marius lost. His coins refected the anti-establishment. You can see the female head of Italia, for which he was fighting. Caesar’s reputation has been distorted by the corrupt Optimates such as Cato and Cicero. Caesar was a man of the people, not a socialist, just an anti-establishment from the perspective of corruption. He too had to flee Rome under the dictatorship of Sulla who would have killed him much as Stalin killed anyone who might oppose him. The aspect of Europe is the total failure to really integrate the 28 member states. It is effectively a dictatorship without accepting the responsibilities. The EU dictates what the budgets should be of each member under the pretense of maintaining the Euro. The USA does not have that structure. The Feds, nor the Federal Reserve, care about the budgets of each 50 state. This is what I mean that the failure to consolidate the debts from the outset has created a dictatorship. The good news is that the EU has no central power as of yet to militarily invade a member who refuses to comply. In the case of Europe, it is extremely vulnerable to a complete collapse because the member states still retained even their own central banks. The EU could call upon some states to provide it with troops to invade another. But that is tenuous at best as the lack of confidence in the central EU government is gradually collapsing.
— Read on www.armstrongeconomics.com/international-news/europes-current-economy/europe-risk-of-revolution/