QUESTION: How did they get hyperinflation so wrong? ANSWER: The one-dimensional thought pattern. For whatever reason, we try to reduce everything to a single cause and effect. Gee – everyone who has ever eaten a carrot has died and that proves that carrots are lethal. This is a true statement that everyone who has ever […]

QUESTION: Do you think gold would be confiscated by government as was the case by Roosevelt? ANSWER: Absolutely. It is a question that we must confront. As long as they think money is tangible and they seek to satisfy the bankers by servicing the debt, then they will do whatever it takes to retain power. […]

President Obama is already posturing to raise taxes again. He is now calling for $1.6 trillion in tax increases. We are headed into a massive black hole and there is not much we are going to be able to do. These politicians are totally out in left field and we may actually see a government […]

The Dow has been inching higher but has been unable to reach the major resistance area that we have outlined at the 16000 level. Many markets have reached a temporary high this week and the next two weeks will now become interesting. The fact that the Dow has backed off to some extent and has […]

Unlike the USA, the British courts and legal process are not as in bed with the bankers as they are in New York. They have brought to court today on criminal charges former brokers charged with conspiracy in the LIBOR interest rate fraud that continues to expand. This stands in stark contrast to the policy […]

Political wisdom over the centuries was purchased with the blood and bitter experience of generations upon generations. The rule of law use to be prior to the Middle Ages, that disputes of any kind were always private. The story of king Solomon presiding over the theft of a child is illustrative of the issue. There […]

QUESTION: Are  short term US bonds (not more tan 2 years) a safe place to be? Having cash is lethal if the bank goes under. ANSWER: Yes. However, I would stay very short-term because rates will rise faster than most suspect. So try to stay in 1 year of less TBills. Keep in mind that debt is […]

  Resolving Globally Active, Systemically Important, Financial Institutions A joint paper by the Federal Deposit Insurance Corporation and the Bank of England   10 December 2012           Resolving Globally Active, Systemically Important, Financial Institutions Federal Deposit Insurance Corporation and the Bank of England     Executive summary   The financial crisis […]

The question of TIME has puzzled humanity for millennia. What is it? Does it flow like a river or is it a simple dimension that can be transversed even traveling back to observe the past? Aristotle was one of the first to ponder what is TIME. His account of TIME in Physics IV.10-14, is where […]

Defining the Business Cycle By Martin Armstrong There are those that adamantly deny the existence of a Business Cycle for one simple reason; if a regular Business Cycle exists, then man and his government, driven by special interests, are incapable of manipulating its outcome. The entire foundation of Marxism was the recognition of the Business […]