Brexit & Pi | Armstrong Economics

We are approaching 31.4 months this February from the original Brexit referendum on June 23, 2016.After such a period, the British government’s incompetence is shining through. The EU wants a hard border in Ireland all because they fear that goods could creep from the North to the South without them getting their hands on taxes. Meanwhile, Scotland keeps pushing for a separatist movement because the politicians there are also brainwashed to believe leaving the EU is somehow bad. Yet, most of their trade in the UK represents such a small portion of GDP. If Scotland took such a step, the EU would also demand a hard border for taxes. It always boils down to money for politicians. They can’t help it. Government creates ZERO wealth and are called “public servants” because they live off of the private sector who creates national wealth.
— Read on www.armstrongeconomics.com/international-news/britain/breixt-pi/

The bottom line in this article is the crux of the biscuit. JohnBarleycorn

Italy Falls into Recession | Armstrong Economics

QUESTION: It is official. Italy is now in recession. Obviously, the Fed is looking outside its own economy. Your Economic Confidence Model is remarkable. I have been following you now for more than 10 years. It has always been correct. Why does the economic community and governments pretend you cannot forecast the economy? You have proven the economy can be accurately forecast. PV, Rome ANSWER: Yes, Italy has turned down. The Fed knew what is coming. All these pundits who claim the stock market forced the Fed to change policy have only shown their total ignorance of the true factors upon which central banks will act. I have probably met with more central banks than anyone. They all know the Economic Confidence Model. That is one of the primary questions I am asked by them – where does it stand now. They cannot publicly come out an say the economy will turn down now for fear that they will be blamed. Just look at the Russia-Trump nonsense. They want to pretend that Hillary would have been elected BUT FOR the release of the emails which showed he true colors. Our computer was forecasting she would lose BEFORE any emails were released. The trend was already set in motion – anti-career politicians. Just look around the world and you see the same trend. But it is easy to always blame someone else for your failure. Thus, central banks cannot forecast a decline because if it happens, they would be blamed just like the Russians right now for Hillary’s loss. The central banks can only forecast economic growth, not recessions. As for the academic community maintaining that the business cycle cannot be forecast, this “opinion” is self-serving. To announce that the business cycle is regular means you cannot control the economy and the entire theory of Marx and Keynes is completely wrong. They kill Kondratieff because he warned the business cycle would kill communism. The economic community would not be able to put out theories to manage the economy and they would have no importance if they admitted they cannot control the business cycle. It is just self-interest. I have been talking with central bankers for months and it has been about the decline into 2020. That is the backdrop to the Fed’s actions – not the stock market. And as for gold, it rallies because interest rates will decline when the Fed said there is less of a risk of inflation? It just seems the reasoning is never consistent.
— Read on www.armstrongeconomics.com/international-news/italy/italy-falls-into-recession/

Another headache for the Eurozone experiments. JohnBarleycorn

Merkel & Macron Signing Treaty to Create a European Army | Armstrong Economics

Merkel and Macron, two politicians who cannot muster even a majority of their people for support, signed a Franco-German friendship treaty which has allowed them to boast that this is the first step to creating a European Army. There is a mad rush behind the curtain to create a European Army, not to protect Europe from Putin, but to protect the government in Brussels from the people they rule. They are very much aware that the best way to secure power is to have a foreign army. In Constantinople during the Byzantine Empire, Emperor Justinian faced the same issue as Macron — a rising discontent. The local lack of support from both the police and military of the Emperor embolden the people to rise up. They went as far as to declare a new emperor, Hypatius. Justinian was about to flee the city for his life when his wife stopped him. She pointed to an army outside the city which was not made up of local Greeks. He ordered the army to enter the city to protect him. They slaughtered what we would call today the Yellow Vests, killing some 30,000 protesters. This lesson of the Nika Revolt (January 13, 532 AD) is perhaps not openly discussed in public circles, but it is WELL KNOWN behind the curtain. This is why they need a European Army for Greeks would have no problem killing Germans when ordered and Germans would have no problem killing Italians when ordered. The key to maintaining order is always to use police/troops that are NEVER local. Hopefully, that political ploy will fail before it can really come into play.
— Read on www.armstrongeconomics.com/international-news/europes-current-economy/merkel-macron-signing-treaty-to-create-a-european-army/

History repeating itself

Italy’s Silvio Berlusconi to Run for EU Seat | Armstrong Economics

Silvio Berlusconi announced his candidacy for European elections in May due to a “sense of responsibility.” Indeed, this may be the best thing that ever happened. The EU pulled off a coup secretly behind the scenes to drive him from office because he wanted to take Italy out of the euro to save his country. Our deep sources all confirmed the EU intervened in the Italian elections to remove Berlusconi, which was effectively a coup back in 2013. Southern Europe has been seriously disrupted from joining the euro. They were forced to convert their past debts to euros and then the euro doubled in value, causing their real world national debts to double in terms of international value. Is it any wonder their economies have been in a death spiral? Unemployment among the youth has reached 60% in some regions, and they are now known as “The Lost Generation.” The May elections for the EU are looking like a lot more anti-EU and people will be taking up seats in Brussels.
— Read on www.armstrongeconomics.com/international-news/europes-current-economy/italys-silvio-berlusconi-to-run-for-eu-seat/

Understanding Why the Euro is a Failure & The One Big Happy Family | Armstrong Economics

If you ask in Europe are people happy with the Euro, you will generally get a response of about 80% in favor. Even if you ask are people happy to be part of the EU, the majority over 90% will say yes. The curious thing is they buy this propaganda that on the surface Europe is all one big happy family. However, when it comes to consolidating the debts of Europe, you barely get a 10% approval rating. So on the one hand, Europe is one big happy family, but they are not about to support the cousin or brother-in-law who they regard as a derelict spendthrift who always squanders his money on wine, women, and song. So yes, he is a family member, but you keep him at a distance and tolerate him at obligatory family weddings and funerals. There it is – the Euro Crisis. The cultural disparity will never be overcome. The proposals being whispered behind the curtain now is for Brussels to issue Euro bonds and then distribute that money to the derelicts in the family. They have realized that the failure of one may bring the whole family down. Because there is this monumental resistance toward assuming the debts of the derelict brother-in-law, it is best to leave him with his debt and hand him charity so he does not starve.
— Read on www.armstrongeconomics.com/international-news/europes-current-economy/understanding-why-the-euro-is-a-failure/