COMMENT: Between the early 1960s to 1982 the Dow was basing with an overhead resistance of approx. 1000. The prime interest rates during those 20 years varied from 5% to a high of 21.50% in 1980. In 1982, the Dow broke out. In eight years, the Dow increased ten fold while interest rates were declining. Then, […]

QUESTION: Mr Armstrong; You have written that the Federal Reserve remains on track to raise interest rates later this year and this will accelerate the capital inflows driving the dollar higher. You previously warned that this will also set off further defaults in emerging market debt and you have also said that the pension funds […]

QUESTION: Hi Marty, The reason central banks like to have inflation, is because they get to reduce the effective value of their respective national debts over time. I do not know why there is a link between inflation and interest rates, which is assumed in BB’s remarks. Is there any basis for that ? Regards […]

The quest to eliminate cash is all about Negative Interest Rates for as long as cash exists, people would withdraw their money from banks and stuff it in a shoe-box. They use Japan as the argument that virtual zero interest rates for 20 years failed to produce inflation. Hence, their reasoning is you must go […]

The prospect of the Federal Reserve remaining on track to raise interest rates later this year is still settling in, yet people fail to grasp that raising rates will be bullish and it will confirm the capital flows are moving into the USA. We have a serious divergence between the USA and Europe. Not only […]

QUESTION: If we truly are a moving to a cashless society as is evident, and that is massively deflationary, which I agree with, wouldn’t that drive govt. yields LOWER?  How do you reconcile a sovereign debt crisis and rising yields with a massive slowdown in inflation and growth that these misguided policies are driving us towards? […]

The current trend in Europe towards negative interest rates amounts to taxing whatever cash you have left after paying 50% in taxes. The bond auctions are starting to show signs that people will wake up and see what is going on. The incredible fact is that now, about 30% of all government debt in Europe […]

While people argue over fractal banking and derivatives, the dark clouds on the horizon are approaching from an entirely different direction. A virtual secret meeting took place in Washington with the IMF (International Monetary Fund) and World Bank present over the weekend. The mainstream media reported that they only spoke about Greece, but behind the […]

QUESTION: Dear Martin, First of all, thanks for making the sense of the world for all the readers. Without you, as you yourself know well, 99.99% of us are lost !!! When you say- That is when inflation will appear when this become obvious we have a runaway train and central banks can do NOTHING. Are you saying […]

Some have asked will the dollar has previously fallen with higher interest rates so why will the opposite unfold now? The answer to that question is rather important to grasp – YES and NO. Sometimes YES and sometimes higher interest rates reflects a weak currency but NO for higher interest can reflect also a strong […]