In trading, the first primary rule is: Do not marry the trade! This is what destroyed Japan. Because of the accounting rules Japanese investors did not have to report a loss until they took it. That rule (not marked to market) led to the Japanese holding losing positions until they cried blood from their eye […]

  This is a race between Pepsi & Coke. They get everyone riled up over the social issues of abortion and gay rights, yet the real substance they gloss over. Neither one has any coherent plan to deal with the economy. So it matters not who wins – the outcome will not change.  

20121023-DJ90%

Has Greece Bottomed? Very interesting price action in Greece. We will be looking at this in detail at the Berlin Conference Dec 1 & 2.

Copyright October 22, 2012 Martin Armstrong All Rights Reserved Has Greece Bottomed? We have witnessed extraordinary events coming out of Greece. There is little doubt that its bonds are now rated as junk. However, there is a lesson to be learned from the 1931 Sovereign Debt Crisis. After each nation defaulted and was relieved of […]

Apology By Plato Translated by Benjamin Jowett Socrates’ Defense How you have felt, O men of Athens, at hearing the speeches of my accusers, I cannot tell; but I know that their persuasive words almost made me forget who I was – such was the effect of them; and yet they have hardly spoken a […]

Copyright Martin Armstrong All Rights Reserved 10/15/2012 The Rising Tide of Currency Protectionism The Currency War The front page of the Straits Times for Monday October 15th read: “Emerging economies lash out at US stimulus” Indeed, Bernanke yelled at these economies saying they should let their currencies rise to fend off the capital inflows to […]

What a lot of people in the West may be unaware of is that Southeast Asia is trying to blend their economies into a trading region. They are maturing and preparing to rise as a very important economic center for world capital. Most significantly, when I was invited to Beijing following the 1997 Asian Currency […]

There is clearly a double edge sword to Adam Smith’s Invisible Hand. At first, there is the self-interest that combines to create the economy by everyone filling their own unique slot. Communism failed because it removed that human element and replaced it with state centralized planning. The self-interest of the individual also leads to the […]

Copyright Martin Armstrong All Rights Reserved October 13th, 2012 The Risk of Low Interest Rates Analysis is dominated by simply opinion and therein lies the problem. Economics has become nothing like a science. In physics, one observes and then determines the “LAWS” as to how the universe functions. In the field of Economics and Finance, […]