QUESTION: Mr. Armstrong; I understand the income tax was introduced in 1913 with the creation of the Federal Reserve. Is it possible for a nation to survive without an income tax? HG ANSWER: Income taxes are a product of the Marxist period. This is when class warfare became dominant. People actually argued that it was unjust […]

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 […]

For the first time since 2008, banks are rushing into government Treasuries (PUBLIC) holdings faster than corporate/consumer loans (PRIVATE). Bank portfolio holdings have been a key component in monitoring the shifts between PUBLIC and PRIVATE CONFIDENCE. These shifts from government securities to private holdings within bank portfolios is an important leading indicator of the rise […]

  U.S. stocks rallied on Wednesday after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade. The Fed has come under lobbying from other countries not to raise rates. The Fed will comply for now, but when the […]

Political Forecasting Political forecasting is critical to the overall economic modeling. Our model is the only thing that correctly forecast both BREXIT and that Trump would win. Revolutions, coups, and political unrest disturb the trends in assets and currencies not to mention introduction political risk for capital investment. Attempting to introduce poll results into political […]

QUESTION:  Dear Martin, If the Fed KNOWS that raising rates will cause a problem (to say the least) for 1) Bond Market 2) rates on reserves 3) Debt interest 4) sluggish US economy with numbers turning down now then why should they raise rates just because capital flows are coming here and pushing up stocks? Why […]

The biggest problem we have with central banks is that they are run by academics with ZERO real world experience. This applies not just at the Fed, but most central banks with the lone exception of Bank of China. The greatest danger this presents is that the money-center banks manipulate the central bankers during states […]

QUESTION: Dear Martin I hope your well and having a good 2015 thus far. I don’t know whether you planned it but after your post regarding people trying to pass your work off as their own a funny thing happened. I was at a luncheon in London with some so called “important” and knowledgeable figures. The […]

QUESTION: Do you believe the Federal Reserve, or any such system as it, is the cause for such extreme boom bust cycles or are those cycles inevitable even if the Fed did not exist?,  or perhaps if it did not exist the amplitude of the swings would at least be lessened Do you agree the […]

The month of March has changed the lives of three very different people, who in their own way have decided to fight with the System (“Goldman Sachs – FRS”). 1. Sergey Aleynikov, a former employee of Goldman Sachs, the developer of the trading platform, has received 8 years in prison for the transmission codes of […]