And so it begins... the intentional demonization of a growing segment of the U.S. population that rightly believes the government is run by a collective of thieving, corrupt, immoral sociopaths. Commingling dissent, violence and “right wing” ideology will be key in the ultimate division of government critics in these United States, and a successful attempt to scare people away from questioning a clearly degraded and parasitic status quo.
A couple of days ago a Café member sent me some of the latest commentary by Martin Armstrong of Armstrong Economics, formally of Princeton Economics International. As you will read, he continues his rant against "the gold promoters," a rant that seemed more than vaguely familiar.
What an understatement!
Again and again through history, first you have the massive deflation and then government is forced to debase the money supply that finally reverses the economy sending it into a inflationary spiral. The second phase is when gold will rise. But you first have the deflation (that we are seeing now) that reduces tax revenues and then you have the inflation set in motion by rising costs (waiting in the background).
Take from the 'redefined rich' and give to the who again?
In 55BC, Cicero stood before the Senate of Rome (warning of its looming demise), spoke of the “arrogance of officialdom” and the more one studies going ons throughout history, the clearer it becomes – the story remains the same, only the actors change - history repeats because the passions of man never change. Those who may grudgingly support the ECB stimulus in the hope that it will buy time for governments to enact structural overhauls, keep praying that politicians will push aside their own personal self-interests for once and focus of the interests of the people. Such wishful thinking is foolish since history demonstrates that only takes place when the system collapses. People who do hold to this view are also worried that looser monetary policy may work against structural measures. The European Central Bank’s stimulus diminishes any incentive for governments to reform. The policy makers and specialists at Davos were divided over the effect of even that program; but where do these people get off assuming they have the ability and right to manipulate the world?
Government has NEVER accepted the economy or free markets. They assume they have the ability and the right to manipulate society. They have failed each and every time. They cannot just recognize the natural order of things driven by human nature (character). They constantly work against the business cycle and attempt to change what cannot be changed. Therein, they are engaging in a perpetual war they can never win.
the major story for us right now is that the broad concept incorporated in “Exter’s Pyramid” is in operation. This something we mentioned in Autumn last year and it’s occurring across currency and credit markets and, to some extent, in equities. To recap, John Exter (a former Fed official, ironically) thought of the post-Bretton Woods financial system as an inverted pyramid resting on its apex, emphasizing its inherent instability compared with a pyramid resting on its base. Within the pyramid are layers representing different asset classes, from the most risky at the top down to the least risky at the bottom. He foresaw a situation where capital would progressively flow from the top layers of the pyramid towards the bottom layers. “…creditors in the debt pyramid will move down the pyramid out of the most illiquid debtors at the top of the pyramid…Creditors will try to get out of those weak debtors & go down the debt pyramid, to the very bottom."
"Socialists/Communists try desperately to paint capitalism as the benefit of the greedy rich. People see the bankers as manipulating government but this is not inherent in capitalism, that is the corruption that infects all republics. A republic always devolves into an oligarchy, which is not freedom and is not capitalism."
"Your money is no longer yours. Big Brother and his entire Family is now here to stay... They are destroying everything that has been built in a fraction of the time it took to create it. Government also acts only in its self-interest and therein lies the problem. They are incapable of even contemplating that what they are doing is killing the world economy."
Martin Armstrong, Max Keiser and High-Level Economists Weigh In
The energy-rich former Soviet republic of Turkmenistan Thursday devalued its currency against the US dollar by 18%, as AFP notes, in the latest sign of contagion among Russia's neighbors from the plunging ruble (following Krgyzstan's 17% plunge in 2014 and Kazakhstan's 14% tumble). However, as Martin Armstrong warns, this is symptomatic of a deflationary contagion that "will contribute to now force the dollar higher... We are in a major economic collapse on a global scale. Most people do not understand that this is the real threat we face."
The sixth anniversary of Zero Hedge is just around the corner, and so, for the sixth year in a row we continue our tradition of summarizing what you, our readers, found to be the most relevant, exciting, and actionable news of the year, determined by the number of page views. Those eager for a brief stroll down memory lane of prior years can do so at their leisure, by going back in time to our top articles of 2009,2010, 2011, 2012 and 2013. For everyone else, without further ado, these are the articles that readers found to be the most popular posts of the past 365 days.
This is the final stage of the collapse of the Roman Empire. When the state runs out of money, it historically attacks the people. In Rome, whole armies began sacking their own cities to get paid. The police are doing just that. Whatever they can confiscate goes to funding their own pensions. This is a national problem that will only get much worse going into 2020. We have nobody in Washington representing the people any more.
What took place in Washington over the past two weeks with the repeal of Dodd Frank and then the effective repeal of the Volcker Rule sounds strikingly familiar to at least three previous periods in American History that led to total disaster. What the bankers just pulled off will lead to their demise. They have played with a historical fire that may end in actual bloodshed. It would not be the first time they have been dragged from their palaces and hanged on the streets. That is what the term “BLACK FRIDAY” really stood for – the day a mob hanged bankers on Wall Street.
“President Obama’s unilateral legislative action violates the separation of powers provided for in the United States Constitution as well as the Take Care Clause, and therefore, is unconstitutional.”