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Martin Armstrong Warns Of The Coming Crash Of All Crashes
Submitted by Martin Armstrong via Armstrong Economics,
Why are governments rushing to eliminate cash?
During previous recoveries following the recessionary declines, the central banks were able to build up their credibility and ammunition so to speak by raising interest rates during the recovery. This time, ever since we began moving toward Transactional Banking with the repeal of Glass Steagall in 1999, banks have looked at profits rather than their role within the economic landscape.
They shifted to structuring products and no longer was there any relationship with the client. This reduced capital formation for it has been followed by rising unemployment among the youth and/or their inability to find jobs within their fields of study. The VELOCITY of money peaked with our Economic Confidence Model 1998.55 turning point from which we warned of the pending crash in Russia.
The damage inflicted with the collapse of Russia and the implosion of Long-Term Capital Management in the end of 1998, has demonstrated that the VELOCITY of money has continued to decline.
There has been no long-term recovery. This current mild recovery in the USA has been shallow at best and as the rest of the world declines still from the 2007.15 high with a target low in 2020, the Federal Reserve has been unable to raise interest rates sufficiently to demonstrate any recovery for the spreads at the banks between bid and ask for money is also at historical highs. Banks will give secured car loans at around 4% while their cost of funds is really 0%. This is the widest spread between bid and ask since the Panic of 1899.
We face a frightening collapse in the VELOCITY of money and all this talk of eliminating cash is in part due to the rising hoarding of cash by households both in the USA and Europe.
This is a major problem for the central banks have also lost control of the ability to stimulate anything.The loss of traditional stimulus ability by the central banks is now threatening the nationalization of banks be it directly, or indirectly.
We face a cliff that government refuses to acknowledge and their solution will be to grab more power – never reform.
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no debt shares in low cost gold miners in politically stable countries represent the best leveraged way to profit from an increase in Gold in the future.
Just my 2 cents.
I have a shotgun, rifle, and a pistol that says it wont.
They'll confiscate it by pushing the price lower and ever lower.
You're right, I heard they have already confiscated all the drugs in the country.
/sarc
I'm spending energy on this topic which has popped up numerous times, which suggests Sauren is focused on something else that I should be also.
I say anything that gives Central Banks or governments a problem is the responsibility of every FREEDOM LOVING human being to do as much as possible to compound them!
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Not too many years ago, colleges taught economics students that the velocity of money was constant. The propensity to save was mostly assumed to to be constant also. Colleges are have just as much confidence in what they are teaching today. Certainly they teach the wisdom of government intervening in the economy. I teach that these ideas are fantasies and that it is not possible for a government to enhance its economy other than through enforcing free market discipline.
My teaching is based on natural law which trumps academically inspired principles. Here is an example. Power corrupts, yes or no? Of course power corrupts. That is why it is not good to give enormous power to a Federal Reserve Chairman.
James Quillian, Common Sense Economics, quillian.net
Crash, crash, crash. Been hearing that for years now.
Up and crash, already. Let's get this chaos started.
The other day when I was checking out at the grocery store, kidding around with the young girl at the checkstand, I jokingly asked if they still take cash.... to see what kind of reaction I'd get. The checker giggled and said of course they take cash. then she inquired why I asked if they accept cash. I told her someday they might have a chip implant or a universal bank card that everyone would use to buy things. She excitedly said that it was a really cool idea and could not wait until we impliment that kind of payment system. True story.
Retardification.
Pussification
It's in the water.
and on teevee.
Here's how your senate toad voted on the TPP.:
http://govtslaves.info/heres-how-your-senator-voted-on-tpp/
Traitorous Republicans
2008 - ban on crash.
2016 - ban on cash.
What's next?
2024 - ban on ash?
No cash, no deal - put simply.
Sometimes I think, central bank planners have the illusion that all this printed money went into the hands of common people, and while it's obvious that the common people don't increase spending as desired their conclusion must be the people use a black market and money stuffing.
So, it is not hard to see that this flawed equation will turn out to have an undesired outcome (but, me guess, tptb above all central-banks do know the truth and they do know what to expect).
Bitcoin velocity is still rising.
Oddly, this is also a classic symptom of every fiat currency during its hyper inflationary stage...
"... inability (of youth) to find jobs within their fields of study."
You mean there are NOT any jobs in sociology, psychology, anthropology, women's studies, latina studies, black studies, LGBTQ studies? My god, who knew?
Tfhere's one teaching fiield that has tons of opeinings and pays very well, but I don't qualify in the least.
http://www.indeed.com/q-Holocaust-Studies-jobs.html
In a low or non-inflationary market, the more money you put into it the slower it needs to move to get the same amount accomplished. Think of money as water. A fast moving river can be smaller to move the same amount of water as a larger slow moving river. This is simple physics. Bankers care about how much they can personally benefit from the water and will create diversions and backwaters so that they can benefit from more water. They really do not care about how much water is REALLY needed by the economy or people to accomplish what needs to be done. To the banker, wasted water is as good as well used water.
However the banks are bound and determined to propagate the utterly false growth paradigm, which demands that everyone dedicate their efforts to growth at all costs (what would we do with the banker-controlled Ponzi stock market if there was no real net growth, only churn and inflation? Wait, you mean there is no net growth?). Why has the US dollar lost 98% of its value since the Fed took control? It is not because of growth.
Martin needs to take into account that 12x world GDP, just in currency, trades each day. Fiat has lost its relationship with the physical world. Producing things has a cost therefore no value, money is free so it has value.
Guess what; the BRICS nations lead by China and Russia are putting the hammer down on Central Banking Cabals...the rest is just western propaganda and a "dog & pony" show. This is a slow burn and has been since before 2008, but at some point in the near future it takes an accelerated plunge and we will all feel MORE financial pain. I would be more concerned about your spiritual condition, it is your greatest NEED, which is dead apart from Christ.
If the crash materializes, we should just blame it on the Natzis like we do everything else.
wait until velocity goes negative, that is money is being taken out of circulation faster than the FED can print it! think in the event of a bank run, and the FDIC prints money to pay depositors.
My brother phoned me to ask how much I had to pay for bulk boxes of .22 bullets two months ago? I paid 9 cents each...He just bought some at 12 cents each....Hyper inflation for preppers.
Get rid of the cash before the government gets rid of it for you.
Martin apparently knows what he is talking about. Cash is about to be outlawed because the largest debt bomb in history is about to go off.
http://www.globaldeflationnews.com/big-volatility-shakes-bond-investors-...
Is everyone really so scared of Big Brother that they won't make a cash withdrawl or deposit of over $10,000?
Everyone SHOULD do it.
Overload their system.
Hell, $10,000 isn't worth that much anyway, anymore.
of course govt want to outlaw cash in negative interest environment as cash detracts you from monetizing using negative interest... deflation is the real challenge of our time but unfortunately all the gold hoarders still think inflation is the problem
No gold is a deflation hedge when cash becomes inaccessible inside the banking system which is axiomatic in a fractional system
Cash was replaced by Scrip in the 1930s in parts of USA and Germany. The PayPal blocking of donations to Wikileaks shows just how far electronic money is suspect as a transactions mechanism especially for regular and predictable ability to honour contracts.
Cheques are still promissory notes and recognised in law as bills of exchange. They can be written on any piece of paper and sealed.
The hawala bank uses cash and will not follow such a policy.
The drug cartels are hardly likely to move to registered payments systems.
Switzerland is the major exchange for currency notes and is unlikely to change that.
Eurobonds are bearer bonds as are US Treasuries held by foreigners
Martin Armstrong. LOL. Rabidly on both sides of every issue, yet every prediction wrong in the short term. Anytime anyone says they are never wrong, and they have some secret sauce, beware. This guy's track record is complete verifiable shit, no matter how much money he spends on PR. He sucks balls.
And someone is going to reply to this asking for links to his predictions. That is your problem for not doing the research on him. I already popsted his most recent oil trading fiasco predictions several times. Wrong at the top and the bottom. That is price chaser Armstrong. Now he says stocks will both rise and crash so he can point to his predictions later. Just like he said gold to 5k on the way up, and gold to 900 at the bottom. He predicts nothing with his magic computer. And that is why he went to jail for losing client money and hiding it.