Currency đź’´

Debt is Only Money that Pays Interest | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Mr. Armstrong; I listened to your interview with Greg Hunter on USA Watchdog. For the first time, I really understand that debt is money that pays interest. That is the real money supply which is leveraged. It is the interest that keeps expanding the debt and forcing taxes higher and higher until it can’t expand anymore. Is this the end game? I only hope when this house of cards comes tumbling down, you will be there to help. Please keep up your PL ANSWER: We will see interest expenditures exceed military next year in the USA. Only then will people perhaps begin to pay attention to what I have been saying. Can you imagine that the debt of all nations is about to explode with the slightest uptick in interest rates? We will be going over this issue at the WEC. Just look at Italy when rates soared from 0.3% to 2.5% in a single day. When I say interest rates can rise DRAMATICALLY, this is no joke. The Quantitative Easing in Europe and Japan have destroyed their bond markets. The central banks buy everything. The Bank of Japan bragged how they bought 97% of the new debt. Hello! That means there is no market! People always ask me why I do what I do meeting with political governments around the world and I do not charge them a dime! The answer is simple. If I took money from them, then I would be beholding to them. Strangely enough, they call me because they know I will tell the truth. The research we put out is NOT for sale to the highest bidder to be manipulated to support some agenda like they do in everything else right down to Global Warming. Yes, there are governmental agencies that pay for Socrates. That is different from meeting with me personally. I am called (1) because there is no conflict of interest and (2) our computer is tracking the entire world and its forecast cannot be manipulated. So do you want to call someone who you pay to fashion studies to support whatever political agenda you have today? Or do you really want to know when the shit will hit the fan? Paper money used to pay interest during the civil war. Nothing has really changed. Debt is now just money that pays interest. We have returned full circle.
— Read on www.armstrongeconomics.com/armstrongeconomics101/economics/debt-is-only-money-that-pays-interest/

A Global Systemic Collapse – Opportunity & Risk | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Mr. Armstrong; FX Street named you forecaster of the year for your Swiss frank peg forecast that also nobody else saw coming. I remember you were named here in Canada as Economist of the Decade for your calls during the 1980s with the 1987 crash and the crash in Japan. I by no means want to be on the opposite side of Socrates. My question is this. You have said that 2018 is just the beginning. This is all coming unglued very rapidly. Is this the Monetary Crisis Cycle and how the world will be torn apart is just a few years? EM, Vancouver ANSWER: Thanks for that magazine article. Can’t believed you saved it that long. Yes, when I say we can see a monetary reset as soon as 2021, this is no joke. There are critical points in a number of markets that I will reveal in Singapore. These are the lines in the sands. Once we cross them, there is no going back. This is a global systemic collapse. I cannot emphasize how serious this is going to be. As long as you understand what is coming and we can draw that line very clearly without personal OPINION, then you will be just fine. Those who constantly believe in fairytales, well that will be a different story. I am not trying to see you any investment be it land, gold, cryptocurrencies, or stocks. This is about INDEPENDENT research computer driven by just the facts – no agendas. This is NOT some new age of KNOWLEDGE or Artificial Intelligence ruling the world. Those are complete nonsense. We have to crash and burn before we every reach some new age of reform.
— Read on www.armstrongeconomics.com/world-news/sovereign-debt-crisis/a-global-systemic-collapse-opportunity-risk/

This man has it right most of the time.

Can Cryptocurrencies Survive? | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Do you think Bitcoin can survive? Or has it been a passing fad? MT ANSWER: Bitcoin rose because 70% of the miners were in China. It was NOT simply because energy was cheap. Bitcoin became the LEADING means of money laundering and movement of cash out of China, circumventing their rule of law and currency controls. So do not think for one minute that Bitcoin rose because it was really a wonderful idea? BitCoin was a means to get money out of China when you could not wire money out under currency controls. In Australia, they have adopted the slogan that “CASH IS FOR CRIMINALS.” They will do the same to cryptocurrencies. All they need to do is declare a law that it is illegal for a business to accept cryptocurrency under the excuse that it is money laundering. You just killed the entire industry. The government has the army, tanks, and the guns and soon robot soldiers. Until the army is willing to turn against the hand that feeds them, which is why they are developing robot soldiers, you cannot stand with cryptocurrency and claim some magical right to suppress government and central banks. You need the power grid! Video streaming today is because of the online porn industry (I won’t post a picture of that). They needed to sell their product and they invented video streaming under the mother of all evolution – Necessity. Video streaming has since expanded to everything. Blockchain can be used in many other contexts just a video streaming was not restricted to just porn. The technology can be used for documents and other things besides just cryptocurrencies. I have been skeptical about the claims that cryptocurrencies will replace all money and central banks and end banking creating money out of thin air. That would be recreating the Dark Age. For that to take place there can be no lending. The mortgage market would collapse and the value of the property would fall to less than 10% of its worth becomes the maximum someone has cash as was the case during the Great Depression. This hatred of central banks is stupid. The money they create is less than 10% of the money supply. The bulk is created through lending and fractional banking. These people blame the banks for creating money and never talk about the fact that the real danger is government debt and as they try to service that debt, they keep raising taxes. They are approaching a 40% consumption rate of the total GDP. The bigger the government gets, the lower your standard of living. That is the issue – not cryptocurrencies will magically save the day.
— Read on www.armstrongeconomics.com/world-news/cryptocurrency/can-cryptocurrencies-survive/

Interesting summation

As long as Cryptocurrencies remain Assets – Then they will Survive a Monetary Crisis. | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: You originally said back at the 2015 WEC the first window for the monetary crisis and the collapse of the Euro could arrive by 2018 and then the cycle was extended into 2021 when the Euro finally elected a weekly bullish. So it appears correct that 2018 is the start as the Euro never reached your target but came close and the EU seems to be coming apart at the seams. Gold could never get through your 1362 number either so that too seems to have confirmed a false move extending your cycle into 2021. I understand that cryptocurrencies are really an asset class and not really a currency. Nevertheless, do you think that cryptocurrencies can survive a monetary crisis? WN ANSWER: The year 2018 was the start of the Monetary Crisis. We had a shot that this could all come undone in 2018. However, you are correct. All we achieved was a false rally with the Euro stopping just shy of our number and gold struggled admirably but could not get through 1362. There were many other markets also confirming that we are dealing with only the beginning of the crisis here in 2018 rather than the conclusion including the consolidation in the stock market without election any monthly bearish reversals. The monetary reset can arrive during the next window in time come 2021 if we get the dollar at new highs. Then the monetary system will crack. However, this could drag out to the third window which is of course 2032. That appears to be more the shift of the Financial Capital of the World to China at that time. These are the turning points. The Reversals are the key which confirms or denies the trend. My opinion as to the future is still an opinion. I will say this. As long as cryptocurrencies are an asset class, then they will survive a monetary crisis along with all other assets. Assets are the ONLY thing that survives the collapse of a currency. So be careful of what you wish for. The new currency issued after the German Hyperinflation, Rentenmark, was backed by real estate. Tangible assets are on the opposite side of whatever the currency is in use. When the stock market rises, the purchasing power of the currency declines. When the stock market crashes, then the purchasing power of the currency rises. They are on OPPOSITE sides. Do you really want a cryptocurrency to be a currency or asset? Most people pitching them are really explaining an alternative asset – not a currency. Cryptocurrencies are a new asset class. Just look at them from that perspective. You are asking a lot if we are talking about replacing the monetary system with private money. That is just not likely in the cards. Nonetheless, we will probably end up with a new RESERVE currency used among nations. That is still unlikely going to be a world currency used by the people in every country. What we use for currency can be cryptocurrencies of some sort ONLY if we see the political powers crumble and fall. None of the big IT companies are doing anything with Blockchain. That may change in the future and it may even be replaced by something even better. I draw the line between an asset class and a replacement currency for the dollar with a very thick marker. You would have to completely destroy the system as is for that to even come into play. Is that what people are praying for? All pensions gone, banks destroyed and you think this cryptocurrency will be the only thing to survive? You go that far the ONLY money becomes FOOD! We are still in mid-game and we are not yet close to the end-zone. For now, cryptocurrencies are not a currency at all, they are a new asset class. Just because they are called “currency” does not make them an actual currency. If they are not widely accepted in payment as legal tender, then they are not yet ready for prime time. When you go online to buy anything, they display the standard payment methods – not BitCoin. You buy insurance for healthcare, fire, accident, but when it comes to death insurance, they flipped the name to life insurance. They could not sell “Death Insurance” for people would respond that they were not ready to die and it was seen as bad luck to buy death insurance because you may invite such an event. To sell “Death Insurance” they called it “Life Insurance” and then everyone would buy it and brag how much they had. Calling BitCoin a “currency” does not make it one. It is still an asset class and for it to be a currency, it would have to respond OPPOSITE of assets, not trade with them. Cryptocurrencies are an ASSET CLASS for trading. Do not marry the trade. Treat them as any stock and you will be fine.
— Read on www.armstrongeconomics.com/world-news/cryptocurrency/as-long-as-cryptocurrencies-remain-assets-then-they-will-survive-a-monetary-crisis/

How the Rich Get Richer! | Armstrong Economics

Posted on by johnbarleycorn12

COMMENT: You always support the rich and never see what they do to the rest of us. LW ANSWER: You simply believe the propaganda of governments. The rich get richer by INVESTING in assets. They list Bill Gates among the top in the world. Do you really think one gets rich by making more per hour than the next guy? Wealth is created through assets – not wages. The NUMBER ONE suppressor of the people is all governments. I worked hard trying to get Social Security reformed and privatized when the Dow was 1,000 instead of 100% government bonds. I gave up. There are too many pension funds that are restricted to buying government bonds. It is not the rich that prevent others from investing. It is always the government. If you really add up what you pay in property taxes each year and subtract that from the value of your home, you will quickly see that you probably lost money. When you sell the house, they do not count the taxes paid for decades as part of the cost. Wealth is created by INVESTMENT – not buying bonds and certainly not by wages. Who prevents the average person from investing? It’s not Bill Gates.
— Read on www.armstrongeconomics.com/world-news/corruption/how-the-rich-get-richer/

Food for thought

Prostitute Tokens of Rome & Regulation | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Mr. Armstrong; I read about the prostitute tokens of Rome after another one was found here in London. They say they are not sure why they exist. Some said it was to mock Tiberius. That does not seem plausible all the way up here in Britain. Can you elaborate on their origin? Was it really a crime to pay a prostitute with a coin that had the image of the emperor? Thank you HW ANSWER: Yes, many of the people seem to just look at Tiberius (14-37AD) who the rumors said he was engaging in wild sex acts himself. But that too was rumor and speculation. It does not seem that these are some political mockery of Tiberius. There are far too many denominations and designs no less they have been found throughout the empire. The more likely scenario is just looking at Augustus (27-BC-14AD) who was very conservative if not prudish. He banished Ovid who wrote his Metamorphoses to Romania for advocating free love and exiled his own Daughter who he basically disowned. He passed family laws that forbid young men to remain unmarried. It is far more likely that Augustus made it treason to pay for sex with a coin that had the image of the emperor when they all did. While these tokens have been attributed to Tiberius, I believe that is simply out of character and were by no mean political mockery, but because of the policies of Augustus. I have written extensively about that topic before. The tokens are also known as spintriae. Yes, it was treason to pay a prostitute with a coin that had the image of the emperor and they all did – hence the tokens. From an economic perspective, these are rather important for they demonstrate that the government cannot outlaw anything with regard to human behavior even under the pretense that it is for their benefit.
— Read on www.armstrongeconomics.com/history/ancient-economies/prostitute-tokens-of-rome-regulation/

History