COMMENT:
Mr. Armstrong,
I just wanted to say thank you. I’m basically a nobody except to my 5 children and wife (that’s all that matters to me anyway). I have limited market experience. The majority of experience I have is in business systems analysis, so making sense out of the global market was almost undoable on my own.
I’ve been in protection mode with my savings. I don’t want the market to eat me alive, and it was doing just that.
It has been your blog posts that have turned my thinking around in regards to where I put my money and when. I’ve been reading your posts for over a year now. The strange thing is that cycles of every kind have fascinated me, I had just never thought to apply them to the market. Strange isn’t it? Your posts have elegantly pointed out what the market cycles are and why. This is something I can not get from any other source but you.
You have made a great effort, and a great sacrifice to keep people like me educated about the real nature of the cyclical market.
Your intelligence, wisdom, and experience is appreciated in ways I don’t really have words for….. other than to say a heart-felt thank you.
The best to you and yours,
G
REPLY: Thank you very much. This is truly the objective. If we can ever reach a majority that at least respects how nature functions, then half the battle will be won. Lady Margaret Thatcher, whose speech at out conference you can listen to on this site, was a believer in cycles. She commented that governments only think in trends – linearly. As long as government THINKS in such a manner, it will assume it can manipulate society to reverse any direction it desires. The problem simply remains, no one has ever been able to do so since the dawn of time.
Communism, designed to create the perfect world, resulted in the death of tens of millions of people. No such Utopian idea has every killed so many people. Even today, this idea that it is always the rich against the poor, put out their by government to deflect blame from themselves, plagues society for to get the “rich” means government needs more power. Passports were invented by the Romans to restrict the movement of people in order to guarantee they paid their taxes before they could travel anywhere. Freedom ALWAYS vanishes in the face of government greed – the rich do not possess guns and tanks.
It is not that I believe we can create world peace or some other Utopian ideal. Nor do I expect that the majority will ever believe or understand cycles. There are two primary goals. First, we eventually learn from our mistakes if we are not morons and reach the point recognizing that if we keep sticking our finger in the light socket, we will not get a different result (Einstein’s definition of insanity). Second, if we can run government respecting there are cycles and we stop this wretched attempt of trying to smooth out the business cycle to create the perfect world, we would at least reduce the tension and swings (volatility) within the economy.
If we understand that ALL energy flows from one place to another and its movement is cyclical, it is a start to reaching perhaps a better world. As it stands currently, this is like we assume the world is flat and close out any other possibility. We will execute anyone who dares to take an opposite position as Bruno was burned alive for daring to say that the sun did not revolve around the earth. Once we open our eyes to this is the divine design of the universe that is right before our eyes beginning with the cycle of life and the four seasons, then just maybe we will learn from the past and stop repeating this insanity over and over again. We never consult history, we always proceed with every crisis never bothering to even ask – Was this tried before? What was the result? You cannot get any more brain-dead than that.
Obama is acting more like a dictator than an elected official. He is using the Executive Order to raise the minimum wage and to create tax-free bonds because the Fed bought back long bonds under QE and now cannot resell them. They fear they cannot sell bonds to China and need to regain their sovereignty so they can act irresponsibly and not have to answer to anyone. To accomplish that, they need to sell bonds to the average person and are making them tax-free to do so. This is not Obama’s idea. He is way too ignorant to even comprehend economically what this means. His strings are being pulled very tightly from behind the curtain. We are following the Japan model whereby their debt is the worst in the world, but it is domestically held and the USA now sees that as the solution.
This is all about retaining power and it is why Margaret Thatcher believed in cycles. She respected that understanding how the world really worked was essential to running it. If you do not understand cycles, then you think you can control the economy with your power and they do everything possible to maintain that illusion while respecting they cannot actually control anything, which is why they pass laws and penalties.
The answer is always the shell game and that is precisely what Obama did last night. You pretend to be caring while you are only furthering your agenda. You need the diversion. Tell them look at this, and you do that. This is the classic game played by street charlatans.
One day the curtain will be pulled back to expose the true nature of government. Until government is really reformed, those in power will do everything possible to retain that power. This is the nature of government. It is always an illusion. Listen to the extreme talk shows. The Ed Show is just propaganda. There is never a single word out of his mouth that is ever objective. Likewise, there are his opposites on Fox News. Neither have anything worthwhile to offer society and both are equally dangerous for the bullshit they spout out causes wars.
The bankers are not interested in power, they want perpetual profits. They have paid the bills of the politicians to be able to do as they like. However, with every failure, they turned to government to be bailed out, proving they too are NOT in control of anything. They are not even wise investors. Why bother worrying about risk when you can buy your way out of jail?
This last time, however, the bill was too great (2007-2009) and they are now rapidly becoming the target. This is the second reason behind Obama’s tax-free bonds. Sell them to the public and you eliminate the power of the bankers. In the middle of their own greed, the bankers simply went too far and assumed it was a linear game with every loss, the bailout would just rise. They were NEVER professional real traders – just game riggers and the mainstream press is just in their pocket and have done far more damage to society than they care to ever admit.
The selling of new tax-free debt long-term regains sovereignty and eliminates the need for primary dealers who blackmail government. This is the game changer. It is starting to recognize that there is a debt crisis, yet do not reform the system, only further its advance. That is why we will still crash and burn.
