COMMENT: Marty, I found your take on matching lenders and borrowers precisely on point. Whilst it sounds innovative, that is precisely what blew up with the mortgage backed securities. The New York bankers took long-term and sold it to many banks in Europe and to insurance funds. That was matching the terms. Even Iceland’s proposal to shift […]

Paul Volcker Former Fed Chairman The entire theory of how to manage an economy via the rise and fall of the money supply being the sole cause of inflation or deflation was discredited post-1971 with the birth of the Floating Exchange Rate System. Unbeknownst to the vast majority, the entire accounting system of trade had been […]

FDR’ Speech on the Banking Crisis March 12, 1933   Roosevelt established the Federal Deposit Insurance Corporation (FDIC) in 1933, assuring people it was safer to keep their money in a reopened bank than under the mattress. Then on August 23, 1935, Congress approved legislation that had a major impact on the Federal Reserve Banks, […]

QUESTION: Dear Martin, First I would like to congratulate you on your excellent analysis and market views. I am a bond portfolio manager for 25 years and I can only be shocked by current interest rates, specially in Europe. I have recently cut my long exposure to Bunds and everyone says it’s crazy to be […]

COMMENT: Hi Martin I am a macro manager. I read your article on April 9th about Public/ private. I agree it will happen but Commercial banks hold only a tiny part of the US Treasury as you will see from the graph attached. They will probably buy on the way up and China reserve growth […]

QUESTION: Mr. Armstrong; I read your essay on the 224 year cycle and the peak in the United States would occur April 22, 2013. That was the start of Obama’s Syrian invasion argument. I must say, I am blown away with the accuracy of your work. I read an article in the newspaper here that […]

COMMENT: Mr. Armstrong, Even though you don’t usually post comments from people that you perceive as “critical” of some of your views, as well as those who try to correct you when you do make errors (we’re all human, not perfect), I still feel compelled to point out some things on several issues you’ve written […]

QUESTION:  Thank you for the explanation about what fractional banking is. It clarifies the real intent and impact of this issue on the economy. Would you please then explain what quantitative easing is? It appears as if this is indeed the creation of money out of thin air. cs ANSWER: This is a different animal […]

QUESTION: Hi Martin, I have only just found you and started reading your articles this last month after your interview on … radio..   It is a pain in the Butt we are not taught any of this in school, but I still have an HUGE aversion to a fractional reserve system where a private group or cartel is […]

The 2007.15 Peak in the ECM set in motion a profound sea-change within the economy on many levels. It was the beginning of the decline in economic power of the West and the shift in economic power to the East. Liquidity has failed to return and every office building I drive by even today has […]