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Armstrong Economics: Entering Phase II of The Debt Crisis
In succinct synopsis of what lays just over the horizon ~ "the cycle of economic implosion" ~ for the ill-conceived amalgam known *today* as the European Union, phinance's phavorite political prisoner, Martin Armstrong, cautions that:
- "the EU is in dire position", on the precipice of shattering into default and civil unrest;
- the sovereign debt crisis materializing across Europe will soon reach US shores;
- the CFTC will curtail currency speculation by slashing leverage from 100:1 to 10:1, which "can cause a liquidity crisis that backfires, magnifying everything."
Since "debts will never be paid and interest expenditures are the greatest transfer of wealth in history", Armstrong suggests:
- freezing all national debt;
- issuing coupons whereby the debt is redeemable for local currency, which may then be invested in domestic debt or equity;
- each European nation establish an independent currency pegged to the Euro;
- swapping US debt to coupons that may be spent domestically.
Seeking to impart light from within the dark seclusion of maximum security solitary confinement, Armstrong concludes his (relatively minuscule by Armstrong standards) missive with stern warning.
" Western society is falling apart .... If we do not act, civil unrest will explode. The current choice is DEFAULT or HIGHER TAXES & CIVIL UNREST .... Someone has to step forward to save us or we may be doomed. It's time to wake up for this is the future of our children and their children at stake. "
http://www.martinarmstrong.org/files/Armstrong-From-the-Hole-3910-1-from-the-Hole.pdf
Just one note of caution for those who may be emotionally inclined to move all-in on gold here because they think 'the dollar be dead': any way ya slice it, the United States remains the lender of last resort (at least when the IMF isn't told to stand in) ... and while everyone "knows" that gold is the clear beneficiary of sovereign default concerns, please realize that Uncle Buck ($) sits alone at the head of the table. Worries of US hyperinflation and the death of the dollar are each absurdly premature at this juvenile juncture of the sovereign default crisis; each may occur, in due time, but certainly not before Uncle Sam has finished picking up everyone else's tab.
Euro Valuation ~ Fail
Until the deflationary spectre of sovereign default runs its coarse course over the next depressionary decade (what inning could this even be ?), those who want to become millionaires rooting for regicide of King Dollar ought study Patricia Heaton's method for valuing the Euro's "worth" ... just take a deep breath (c. 8 yrs), recheck your mental abacus and, eventually, you'll get there.
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From the complaint of Martin Armstrong:
2. Martin Armstrong ("Armstrong"), age 50 and a resident of Maple Shade, New Jersey, during the relevant time, owned and controlled a series of limited liability companies formed in the Turks and Caicos Islands, British West Indies, that were headquartered in Princeton, New Jersey. These entities included Princeton Economics International, Ltd. ("PEI"), an investment adviser, Princeton Global Management, Ltd. ("PGM"), and a series of special-purpose companies that issued notes to investors ("Princeton Notes") and received investor proceeds and deposited them into Republic Securities.
He was playing with fire.
"From the complaint of Martin Armstrong:"
curious whose complaint is this: MA's complaint or the government's complaint against him?
From the SEC litigation, referenced at the official-unofficial Martin Armstrong site,
http://www.sec.gov/litigation/admin/34-45157.htm
not going to argue marty's guilt or innocence, nor even his version of events, but there's a lot more to this story than what's contained in the SEC's 'complaint'.
scroogle 'Edmond Safra' for instance
so you believe the official B.S. line
i did not have sex with that girl,,
and the official line on 9-11
some sleuth
You're a clown. You've presented nothing from whatever side you believe your on, only stating that I'm stupid. You've convinced me of nothing.
you spread rumor,,, yet still believe official government sites on Armstrong lol
no not stupid gullible ,,
Armstrong would not play ball with the powers that be, // was framed ... never was able to defend himself ..
i was not trying to convince you of anything .. just letting you know that your story was just parroting back some cockamamier story,, that you bought hook line and stinker.
armstrong walked in power positions ,, upset the original lush hats ,, powerful banks .. people that really commit fraud,, strange we keep as religion stories told by reference ,, yet still believe we are not orwelled to death, walking blindfolded into church pews of false witness and our sacrament is holy..
All you know about Martin Armstrong you read on the internet. Your opinion is no more authoritative than anyone elses.
that may be true ,, but either way i would not label a person crooked and defame them .. as you seem to take delight in.
and dear person,, i believe that the truth of armstrong tilts to his side.. when all the issues are considered,
we see a judicuary tilted to protecting the higher ups,, we see waterboarding 187 times to have a person see the way, a government that opens its mouth and lies proceed at a longer nose pace,
your orginal thesis oh he must have done something wrong ,, i read it hear on mad magizene,,
a little research puts doubts and changes your first attempts to add to the slander
Ok, got some links? I read the "official" story on wikipedia. They say contempt of court for 7 years, then plead guilty for 5 more years. He got in trouble for purchasing, or maybe not, antique items with Japanese money that he later couldn't account for. He was playing with the devil with those kinds of cohorts, and he played wrong and got burned for it. I don't know whether he did or didn't do what wikipedia said, but he played wrong and has gotten tagged with 11 years of his life in prison. He left himself susceptible to the government and they took advantage.
wikipedia? my goodness there are some real numb-nuts out in the world..
Hansel, read the legal papers on these links.
http://www.scribd.com/kzuur58
I have studied law and therefore the ability to reference the individual cases (precedents) did not take that long. If you reference them on google (the individual case notes) you will b able to read.
Join the dots and read the actual case histories and subsequent cases involving the ability of the Courts to withhold people in contempt without a trial.
Once you have done that the picture is a lot clearer. The Armstrong matter created a very bad precedent.
Precedents set by your courts in this matter are shameful and the mere fact that the judiciary have these powers are alarming.
I really hate it when people have preconceived ideas in relation to people in gaol. God forbid should you be a journalist trying to protect your sources, or better still a company officer of an offshore corporation ...
I agree that being held for contempt for 7 years is ridiculous, but the financial stuff that initially got him in trouble is a little more hazy.
".. but the financial stuff that initially got him in trouble is a little more hazy .."
Hansel not really. I had a good read of the articles 1985 through to 1999.
Internation transactions that took place were remarkable to say the least. Looking at the Japanese transaction, at the time that he was imprisoned was more attuned to the fact that those that sought his incarcration knew little of the actual transaction. This was brought out subsequently with BNY. More to the story than that advertised.
http://www.martinarmstrong.org/economic_projections.htm
Plenty of details of the Armstrong case (from both sides) can be found here:
http://www.topix.com/forum/business/TS8IHELKS6G8FDV65/p3#c48
that's the spirit read wikipedia ,, i am sure it is the official story lol
pretty rigorous insight ,, so you pass on the rumors,,
best get it in detail from the horses mouth.. armstrong makes the case ,, his repeated appeals to the court ,, his in depth explanations ..
sort of a paulson type of fraud dont you think
Right.
Sure, it's at the "head of the table" alright - of imploding fiat currencies. Hey Chopshop, why don't you put your money where your mouth is and go ALL IN the US Dollar? I DARE ya.
And "emotionally inclined"? On the contrary, I think somebody is "emotionally inclined" for the dollar.
BTW, it would be helpful if you let us know how long do we need to wait for $10 Gold...
GG, love your graphic on the USD; folks need to be reminded on the constant loss of purchasing power & prestige of the USD. All in on the USD? "Hardly," all out. All in on gold at $10? Yes, & I'd apply all the leverage available to buy it. Accumulating now again at $1100 to $1060.
Moreover, I just had a friend inquire this morning about purchasing physical gold. He's sensing that things are changing in the US with the gov't gone wild spending. Does anyone seriously believe the banking cartel & politicians that created this crisis are going to be able to solve it? Think about it....
It is a nice graphic....practically the inverse of the total debt growth chart....which ironically is declining rapidly....meaning the dollar will bounce back....and should do so fairly rapidly!
Where is the chart showing total debt growth in decline? Are they remembering to include government debt, including the GSE's?
Karl Denninger at Market Ticker has shown a couple that he claims to include the whole enchilada....the one or two others I've seen are pay-to-view...
IMO gold is a gift at $1500 or lower. So it may go down so what, but long term, Da Chumba is right. It´s how many ounces you have that counts.
It was Marc Faber who said, "the first 95% loss of value in the dollar took a lot longer than the next 95% loss of value will".
Using a "Matrix" like comparison, fiat Federal Reserve Notes (misnamed "dollars") are the blue pill (illusion), gold and silver are the red pill (reality).
You can choose to keep the faith and trust in the fiat government/central bankster IOUs we use as money, or you can hold wealth in something scarce and real, gold and silver.
Sorry, Marty, it's still all paper. Those three hours in the hole have really taken their toll, you're not making much sense anymore because we all know it's all about the GOLD BITCHES!!
I am Chumbawamba.
Armstrong has predicted the 17.2 year gold cycle running into 2016. IMHO, he is absolutely spot on. Markets run in 1/3 cycles & by the length of the basing period, gold should run onto 2016 for the cycle top. The trend for gold is clearly higher. This of course portends more gov't instability, corruption & disrespect for the rule of law. Fundamentalists can judge that for themselves.
http://i43.tinypic.com/25tcbxs.jpg
Chumba, stay bullish.
Actually he did say it was all about THE GOLD BITCHES, if you go out a few decades. What he's saying is that we're not there yet, we won't be there for a while, and the next phase could be deflationary-- potentially bad for gold (though gold does tend to go up during uncertainty, so it might not be that bad for gold).
Like all financial decisions, the decision of whether to hedge with gold is entirely dependent on your timeline. How long do you want to hedge? If the answer is "a few years" then you might be better off staying in cash or adopting a conservative mainstream investment strategy. If the answer is "more than a decade," then buying bullion might be the right strategy.
Sky is falling, yada yada, gold bitchez.
Same old, same old...
Chumbawamba, let's clear up what Armstong's position is over the longer term on currency, gold, stocks & bonds. I think Chopshop has framed Armstrong's missive in a misleading way. Armstrong is bullish on gold. Let's look at his definitions:
"Currency is nothing more than shares in the national corporation & debt is merely an option on those shares. The currency rises & falls not purely due to the misguided belief of supply & demand, but upon the rise & fall of confidence. Do we believe government is doing a good job or not?"
Now, each asset class is defined:
"Currency = shares in the political state
Bonds = issued by government are nothing more than a derivative option
Shares = in the corporate world are a hedge against domestic inflation
Gold = is the hedge against government instability"
Finally, "[gold] its role is obviously not the hedge against inflation as in stocks, but the hedge against the instability of government. For when all else fails, gold becomes the only store of wealth." (emphasis supplied)
Now dear reader, IMHO, when the shit hits the fan, do you want to hold paper or gold? Do you feel lucky today?
"I think Chopshop has framed Armstrong's missive in a misleading way."
agreed. much respect to choppy for bringing master marty back to the hedgegrow tho.
oh, and chumba, that man's been through much more than "3 hours in the hole". whether he's guilty or not, the Man has seen to it that his time owed to you, citizen consumer taxpayer, has been much much harder than your average white collar stiffy. child molestors have done easier time than he.
'tis not wise to trivialize another person's suffering, even when you disagree with his viewpoint, especially when you rush to judgement based on another person's intrepretation of his viewpoint really is.
just a thought...
Just for the record if you read the letter above, Martin states that as Europe weakens the dollar, dow, and gold will rise.
No harm holding FRNs for awhile. No need to go "all in" on gold (Pt, Ag, Pb, etc.) right now.
If gold goes lower, then I just buy more.
Chumba some weeks ago said he was real high % in gold. Bully for you Da Chumba!
The Rolling Bearing will take his time.
well he got the bottom line right:
The current choice is DEFAULT or HIGHER TAXES & CIVIL UNREST
It's great to read someone who gets it.
My guess is that Marty is saying 'if you think gold will never go lower from today then you may be mistaken.'
I concur. Those who want to capitalize on the deflation death spiral in RE won't be able to do so with gold. They'll need dollars. That's when you'll find a perfect entry into gold.
+10000