Greece’s Debt Cut to CCC

Greece’s debt is now cut to CCC in preparation for an eventual default. Brussels just cannot think out of the box. There will be no solution until the thinking paradigm is changed. I previously wrote:

With the economy turning down, the pain threshold will rise. The lack of liquidity will be a huge problem if everyone in dollar debt begins to scramble to cover their dollar shorts of nearly $15 trillion+ in external dollar loans. This can send the dollar soaring and yet there will be no offers. Banks have reduced dealing lines and this entire situation is looming as a perfect storm in the months ahead.

Liquidity has collapsed and trading lines have been cut at banks in New York and London. The amount of dollar debts by non-domestic issuers has exceeded $15 trillion posing a huge risk. Should the dollar rise, there will be a serious currency panic. If they try to buy dollars to hedge the risk, they will most likely all act at once and in the scramble we can still see the dollar rally sharply.

Aristotle & Education



Hello Martin,

The volume and content of the work you are putting out is both phenomenal and sincerely appreciated.

In relation to your recent topics on education and learning, Dorothy Sayers wrote an interesting article in 1947 about the “Lost Tools of Learning” where she referenced Aristotles Trivium, Quadrivium based work that has helped reinvigorate classical education at home for many. It looks to be one of the more effective ways to help our children of today to move toward some of the critical and dynamic ways of thinking that you are advocating with the emphasis on understanding the history and context without the focus on which is the so-called correct answer. Learning the grammar, logic and rhetoric to supply their own answers as their experience grows.

Many have their biases against learning outside the system but I’m betting (as I believe you also are) on it being the only real option.
Kind Regards,
REPLY: Home schooling seems to be best, at least as a supplement. When I was 8 years old, my father handed me Aristotle. He told me to read. “If Aristotle was good enough to teach Alexander the Great, then he is good enough to teach you,” he said. I waited until my children were about 10 to hand them Aristotle. I must say, my first conflict in school was with a teacher who was being illogical and could not respond to my question. I used to drive my mother mad because I was constantly asking “Why?” about everything. I named the report on cycles I wrote in 1979 – The Why Report.

The Forecaster in Belfast & Extended for a Week in London

QUESTION: Good morning Marty,
Will you be in Belfast this Sunday? 
ANSWER: No, sorry. My schedule has been so busy that I was unable to make it to the debut of the film in Ireland or London. I would have loved to have been there since I lived in London for many years. I hear the film was so popular in London that they requested to extend it for another week because it sold out. I’ve been told that is unusual.

Change Never Comes Without the Pain



Mr. Armstrong, I can talk till I’m blue in the face and it just does not matter! I say to people they are going to ban cash because of taxes and cash is not traceable, try as I might 1 out of 50 people see it. What a shame. I agree when you say that someone tells you that they are going to punch you in the face that most people will just stand there and do nothing. Therefore I have no sympathy for stupidity or ignorance!

God help us,


P.S. I’m going to punch you in the face in 5…4…3…2…



You cannot do anything to change the minds of the majority. This oddly enough is the very reason a crisis will take place. Tangible money is the Stone Age barter – Welcome to the new age of electronic money. Cash is slowly vanishing and the majority of people only see the world in a straight line. They are not capable of observing two things at once. Once I realized this was the fate of the majority, it became clear that it was pointless to try to work on Capitol Hill to save anything. Protesting does not change the majority. Change never comes without the pain. Those who inspire change are than hated by those who cling to old beliefs, refusing to accept change.

I have resolved myself to making aware those who think dynamically. We are the minority, but we are the movers and shakers. We are the “C” students for whom the rest must follow in the end. The majority is trapped in their own minds, unable to escape, for they will not look at the world without colored glasses. They only see what they want to see, and with this myopic view, they will make the cycle function.

This is similar to anyone who is really a promoter rather than an analyst, for they are biased and unable to see outside their bubble. I distinguish between the two very easily. The promoter only says “Buy” and never “Sell”.  Today, there are the “Gold Promoters”, we had the “ Promoters” going into 2000 and of course back during the Great Depression. There are also “Stock Promoters” who took the same nonsense, average in. Such people, assuming they are not intentionally a fraud, are trapped in their own minds. They are far too prejudiced to listen or to consider what they have been doing wrong.

Such is life. Look at it this way. We need someone on the opposite side to trade against. That is what makes the cycle function – the majority must be wrong at the top and bottom. So save your breath. When the economy turns, only then will they listen.

I am off on a six week European tour because they feel the pain. I am speaking from Amsterdam, Brussels, Warsaw, Berlin, Frankfurt, Bologna, Budapest, Barcelona, Dresden, Tubingen, Stuttgart, and Paris and the requests are still coming in. I will be lecturing on the solution at three Universities. This is all at their request. You cannot get change without the pain. So be patient. They will come.


To be great is to be misunderstood


Emerson Ralph Waldo


Hi Martin,

In response to your blog post, “How to Think May Be the Key to Everything” I thought you might like this quote from Ralph Waldo Emerson:

A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. With consistency a great soul has simply nothing to do. He may as well concern himself with his shadow on the wall. Speak what you think now in hard words, and to-morrow speak what to-morrow thinks in hard words again, though it contradict every thing you said to-day. — ‘Ah, so you shall be sure to be misunderstood.’ — Is it so bad, then, to be misunderstood? Pythagoras was misunderstood, and Socrates, and Jesus, and Luther, and Copernicus, and Galileo, and Newton, and every pure and wise spirit that ever took flesh. To be great is to be misunderstood. 

Louisiana Outlaws Cash Transactions for Used Goods


Louisiana has passed a bill making it illegal to pay for used goods with cash. You can no longer buy something at a yard sale, flea market, or anywhere else where cash payment is required. You must pay by check, money order, or electronic transfer instead. They claim this is targeting criminals. Yeah – good explanation, but totally unrealistic. The state is named after the King of France, so it is not unusual to see Louisiana adopting the same policies as France.

Most people are also unaware that the law in Louisiana is NOT the same as the rest of the nation. They did not follow English common law, but French. A jury trial does not require unanimous consent, instead, it is simply the majority.

Reality of Hyperinflation – The External Alternative

German Hyperinflation Wheelborrow

QUESTION: Mr. Armstrong; What did people really do during the German hyperinflation? It seems that all you hear about has been people running around with wheelbarrows of cash to buy anything. Was that truly reality or just the extremes?

God Bless




Life actually went on. People used American dollars and other foreign currency. In December 31, 1923, Time Magazine reported that the German currency was worth almost nothing and yet $12 in American money could pay for good seats at the National Opera in Berlin to see Mattia Battistini. As countries move toward an inflation crisis, it is CONFIDENCE that collapses and so they turn to external currency. The American dollar will still rise and its usage will remain in cash transactions. Ukraine is currently using the US dollar in the face of their currency’s inflation. Zimbabwe has lost the right to print its own money. People use the currencies of other nations to this day. The same result took place in Japan when the government lost the CONFIDENCE of the people and was unable to produce money that people would accept. The Japanese used rice and Chinese coins, but not their own currency.

In Germany, people used foreign currency. The hyperinflation was the result of a collapse in CONFIDENCE of the German government. The people turned mostly to foreign currency. They did not trust the new Communist Revolutionary government. This is why the hyperinflation took place. The bulk of the people turned to commodities, and others used foreign currency. This is a standard pattern which has ALWAYS emerged. Therefore, life goes on, just as we see in Kiev. However, apartments for rent in Kiev are prices in foreign currency right now, not its domestic currency. The people lack CONFIDENCE in the government and will not retain savings in their local currency, which will propel inflation.