Martin A. Armstrong See eee seen eee eee Armstrong Economics Peas Wea AK Former Chairman of Princeton Econoaics, International, Led: SS forecasting the World \ in A. Armstrong Copyright ALL Rights Reserved October 9¢h, 2010 320 Register For Special Updates ft Armetrongconowics.cOMMice ray But ho Cigone| By: Martin A, Armetrong Former Chairman of Princeton Beononics International, Led. ‘and the Foundation For The Study of Cycles TCE TRY ~ BUT NO CTGAR! While everyone has become exceptionally bearish touting the end ie near, how and why markets move is something that 12 consistently overlecked. This is @ battle to the death between governsent and the people. It has been going on ever since man began to gather ia groups creating urbanization and the first individual put something on hnis head and told everyone he vas king and this object. somehow proved his divine right to rule over everyone else, Government will investigate and imprison anyone who dares to disagree with it merely changing the pretense for shy they have acted as they have. Yet, the botton line is always the sane no matter vist century, what country, or vhat group gains the crown of power. Covernment is. sinply Living, breathing allegory of desire for vealth and power at the suppresefon of the people. Tt vants everything at all tines and it will justify its actions as its true intent to someiow protect the people from thonselves. Right after the Iranian protests with the youth using the internet to ban tonether, the US Congress claimed governnent needed tre pover to unplug the internet in case of a cybervattack. Tou do not need to unplag the entire internet if someone is trying to break into the CTA You unplug the internet ae a whole only to prevent the people from organizing. Sut the Free Press has surrendered their independence and defend nothing sacred to or free society. Connor sense has vanished and the majority of Anericans can rattle off thetr sports heros 2r the latest plot ina soapopera, but they cannot tell you vho their Congressaen is‘ er what they voted for and why ‘This historical bettle between Public T have warned numerous tines that the cand Private interests tas indeed been going | low is in place and that we vill see new fn since man first put something on his head | highs in the Dov Jones Industrials long fand decreed Cod anointed him to rule over | before ve see a nev lov, T have varned that all others. Those who constantly preach the | gold will rise ro the $5,000 level and that oon and gloom that the Dow Jones vill fall | ft will rise WITH S'T 0 CK St Those to 10€ on the dollar because that,ie vhat | are trends that appear when there 1s a major took place in the 1930s, just don't get it | crisis in Public Confidence - the shift from cand never will, Public to Private investments.SEES Governments have been playing ganes for a vory long tine. The tricks they play have 50 confused the public and even academics that what is real and what is not becomes a battle that Just cannot be wan, Above, is an article I wrote for the Wall Street Journal back in 1996. Tt simply never changes. The statistics are revised and manipulated in 0 many avs trying desperately to influence the people and markets, that I seriously now ‘question vhether the people vio even calcu ate the nunbers realize what the truth even 4s behind the nonsenee. Tris 1s one reason I am so hated in bureaucratic circles for I have dared to Took behind the curtain Like in the Wizard of Oz and seen vho ie really pulling the levers coming vo the realization that they have 1ied so mich for so long, they believe thetr own bullshit. The odd thing is that those who work for government fail to see that they have so misinformed the people to preserve the government power, but thet too is collapsing and they will find them selves without pansions Just as those in Greece.Ihave had @ front-row seat nov for several decades running around the globe and being called in on so many economic disaster scenarios, T an tired and have no desire to atch the orld commit suicide. T have given up on any altruistic goals of changing the course of government hoping that they vill wake up before thoy drive us over the cliff. ‘They are addicted to pover and will never Listen, no less ses what they are doing is the problem when they blaze everyone else and have resoved all the mirrors on capital na. ‘The markets are the only truth and yet there are’ so many who want to claim they are verong because they do not reflect what they vant to see. In reality, the markets are in fact never Wrong, only our interpretations hhave to watch and listen to the markets Af you expect to survive. For vhat is coming is the Worst of all evils. A classic exanple of this is the coming CURRENCY WAR, The Japanese yen will rise to new highs above those of 1995 against the dollar. Thig will put significant economic pressure upon Japan and force st into ite Hinal low for its Great Depression due in 2015. ‘The PURO is rising because of a unique problon of a single currency combined with independent states. The EURO is not Like the dollar in the least. Each country retained their identity, but abandoned their currency without realizing they were in fact surren= dering economic sovereignty. Yes, they did ‘agree to run their deficits within a group GP percentage. But they surrendered the ability to DEVALUE their currency as an ‘option to DEFAULT. Yet, because each nation issues its ow debt, capital ean still. buy only German and French debt, Diversifying 8 portfolio avay fron a doliar base bias in fact necessitates buying European debe. Yet capital can be picky and buy German debe in EUKOS foreing that currency higher while in fact making repayment for the weaker nations even worse. Instead of devaluing the debt, the debt 5 appreciating in real terme vhen the econony is declining. When everyone has to come back to borrow more next year, the stress will becone a crisis. The real value of debt is rising in terms of the pay-off fand that is pushing further the weaker states| in Furope closer to DEFAULT. Insofar as China is concerned, the rise in the currency is NOT all about trade. We fare in @ giant vortex of public debt going oun the drain, Since China has no sassive public debt, capital does not park there as it is in tho USA, Japan, Europe, Britain, ‘and Switzerland.’ The amount of capital in goverment debt vs private equity is 10:1. Thus, Congress is just stupid for they do not comprehend that with more than a $10 tritlion national debt, there is far more capital forced into the dollar than there s'any imbalance in trade, Congress thinks ‘that floating the currency in China will Sonchow magically create jobs in Anerica with no change in tax policy. This is why there are no mirrors in Washington so they don't have to" look at thenselves when they rnake such absurd statements. ‘Trade de a anall fraction of capital flows. With national debts at such record highs globally, this is a debt bubble that is not going. avay. The anount of capital in goverment debt is staggering. If that vas Invested in the private sector, the Dow ‘would be at least 50,000 1f not perhaps 100,000 on spike highs. Tf eapital had no place to go BUT the private sector, there Would be no unemployment and the standard Of Living vould rise because we would not be burdened with debt that produces nothing and transfers untold anounts of vealth out of the country. ‘The very socialists who want high taxes and claim to be helping the average person uve Teduced the standard of Living for all. ‘The interest paid to support the debt 1s the single greatest transfer of vealth to the 0 called rich than anything else. The vhole Yea wos the capitaliate were exploiting the ‘workingnan. Now that is government exploiting tthe vorkingclass vhile claiming to care about them, The icone tax vas ONLY to get the rich in 1913, By World War TI, the payroll tax vas assed and now the average taxpayer thanks the goverment for their refunds that anount to forced loans ae cities did in the medieval days for they are borrowing from the poor and hot even paying then for the use of their money all year, This is the real face of our Marxist socialien. The total anount of inter~ fest paid on the national debt starting with 1940! de $6,834.3 as of 2006 vith a total debt of 85,507 BLL,” Hore than 80% of the debt ve ‘owe 42 because of interest. Where does this Socialism even cone close to vor'cing?The Great Revolt of e ‘Trroughout history there have been so many collapses, revolts, revolutions, and upheavals that ‘enorge everytine government Decones oppressive and turns against its ova people. Often, such revolts have been put Gown with uteer cruelty such as the Great Revolt of 1381 in England led by Wat Tyler when taxation reached the excessive stage. The king sent out the troops and masaacréd the people and then confiscated all of thetr property. Renenber tho Anerican Revolution and the vhole” No Taxation without Representat ica} battle cry? How about the French Revolution where they killed all the bondholders of French debt while defaulting on those they could not execute. How about China and of course Russia? Both revolted against the bondholders and defaulted upon everyone, The List extends back to ancient tines ‘and one of the first major government debt defaults took place in 17881C, So we are by hho means dealing with a modern invention. Debt has been around since at least SOO0BC ‘and the results are alvaye the sane. There is no such thing that this time it will be different. It has been a Rice Try ~ But No Cigar! Marx's dream has turned into a nightmare. Both China and Russia collapsed in 1989 for Marxisa is contrary to humanity. Soctalien fas practiced in America and Europe is one Stant joke nd oaly because 1r supports the Rovernsent pover structure, they Will not let it slip between their Fingers without @ fight. Government knove the risk. This is why they passed the lav to unplug the internet. Tnavend of stonping and really Lookin at how do've eave cur future for ourselves and Gur childrens this {2 ali. sbout ray power and nothing else, Me could save the systen fand our vay of Life, but government has to Stop this nonsense and give up power 3¢ has Goorped. That ie just not going to happen. ‘hon the shit~hite-thesfan, 1 want to be as far avay a5 I can gets Sonctines there 12 10 bloodshed as in Russia 1989, ue at other tines the strecta are’ painted with blood. When the government is desperate, they will go after anyone and anybody and their cousin fourteen tises removed. They went after Abbot and Costello just as they went after Al Capone and Wesly Saipes who. they Just sentenced to 3 years in prison for tax evasion. Even under Biblical Tav, the eve for an eye standard is a prohibition against punishing people beyond the hara that the caused. Tax crimes vere NEVER accompanied with jail time even under the vorst tyrants in history. America sentences everyone to Jail regardless of the crime, There are people in prison for shooting a moose vith the wrong gum. Drive with a revoked License on federal property and it is. jail sentence. No matter what the charge, federal judges pose jail for EVERYTHING. Aserofe made it that prosecutors get no credit in their career unless you go to jail no satter what the allegation. This is the same man who put_a robe around the statute of Justice én Washington because her breasts vere showing. Personally, T think if a pair of bronze breasts get you excited, it is not the statue that is the problen ~ THs You! ‘The FLBCTIONS are showing another very dangerous sideveffect of this collapse in SOLICIALISN that will prove to be a NICE ‘TRY BUT NO CIGAR! Toward the end of the Roman Fapire, the dissatisfaction with the fenperor rose’ sharply. Between 161 and 268AD there wore 21 emperors averaging 5.09 years each. The vorse the econoay became, the Shorter the reigns, ‘THOS 19 WHY WARNED THAT OBAMA MAY BE, A OWE TIME PRESIDENT. I do not say that as 2 Republican, for I fail to eee where that party will do’ anything different. The public is dissatistied with the Denocrate as ve may see the Senate flip to Republican control. They vill cheer but miss the point. Americans are fed-up with both parties for neither one Will do vhat is right, Both parties are only about furthering government pover. Thanks to the Republicans, ve have a police state and Jost all our human rights. The Denocrats are no better and prosecute anyone with money to grab what they can, Neither party de about helping us survive the coming deht crisis.‘The Great Revolt of 1381 was preceeded by the Black Death that hit England 1348-09 that was followed by three after-shocks so to speak in 1361, 1369, and 1375. This had Changed the relationship of labor and caused wages to rise after 1348. In 1349 there was the Ordinance of Labourers, which atteapted to freeze wages at pre-plague levels. In 1351 it vas supplenented with a statute a’ vigorous: Ly enforced. In 1351, 7,500 people vere then Fined for breaches of the labour lavs, This was about one-eighth of all adults in the country. Yetween 1377 and 1379 in Essex, 70% of al’ those indicted vere for violating these lavs, Studies have shown that nore that 50% of those indicted in Norfolk between 1375 and 1379, were also for any violation of these lavs. As Rell, Putnan wrote, "the area of the greatest intensity OF the revolt coincides with the area for Which there is definite evidence of the greatest efforts at enforcement of the Labour Lawo.”" Government passes Laws and always attaches criminsl penalties so they ‘can oppress the people who resist.The government clearly sought to then prevent the shortage in labor from resule+ ing ina rise in ages. Sone vere imprisoned| for years under these iavs. After the Arch- bishop Offord died of the plague in 1349, 2 temporary royal custodian laid claims against various manorial officials vho had been unable to pay due to the plague. In 1353-1355, they began to imprison chose vho wore unable to pay. Tio conters of the revolt were Charing and Maidstone. Here, the Liabilities of the anorial officials was then extended to the people (tenants). After 1349, much Land was vacant and labourers vere in’ short supply. The government refused to see reality. Instead of foving to the markat forces, they turned against the people with ruthle: Sindictive oppression: Parlionent tn 1377 all but accused the peasants of forming confederscies to prepare for rebellion. Tt was authorized that lords could arrest any person they called a villein and they could be imprisoned at the mere pleasure of the lord. Tn the House of Commons, they tried ‘to pass Legislation that enyone claiming to be a tradesman could be ordered at the plesureof a judge to vork the land at the Foquest of o lord. That one did not pass. Nevertheless, this was a period of great ‘turmoil and a confrontation between the people and the government that would not Dow to the reality of market forces. The economic collapse due to the great Black Death, wiped out revenues. Tf land could not be put to use, the landlords could not pay taxes. The tax revenues had collapsed and governsent could not pay its bills and refused to understand the crisis. Instead of dealing with the crisis, then as now, government raised taxes. Degianing in 1377, they imposed three POLLATAXES chat wore’ placed upon each individual regardless Of their income, With the so called "rich dead broke, they turned to tax the peasant. The third POLL-TAX was passed in December 1380. ‘A Jugeice of the Peace John Bampton vwas to judge in South-West Easex widespread eax evasion. lite ruthless tactics won his name being added to a list on June 12th, 138. demanding his death by the rebels. He died a few days Later most likely murdered. ‘The government responded then as they would do today. They immodiately sent Chief Justice Bellenap to indict those who dared yesiat any taxation. lie party was overvhel~ tned and Belknap was alloved to leave with his life if he swore he vould hold no further inquiries. As alvays, in the final analysis, the government executed all those inhabitants ‘of Fobbing who they even suspected of being involved. ‘They oven executed the richest man of Fobbing, Willias Gildeborn who owned 40 acres at the tine. The government confiscated all his property. ‘The demand for taxation in the face of econonie declines and atteapting to freeze ages to provent the decline in net incone to those vho paid taxes (landlords). The uprising of 1381 vas a profound confrontation Detween the governnent and the people. In tthe ead, the government von and executed everyone it could get their hands on. Today, ve have the same crisis. We have unreasonable taxation exploiting the average person beyond reason. Home prices have now declined sharply, but property taxes have rien, Just as in the Léth Century the state ‘only iooks at. its ovn income and not those who it is exploiting. Today, it takes two incomes to support 1a family. Once upon a tine, the vife raised the kid, Wonen have lost that option and have to work whether or not that is their desire, The family unit has suffered by the feconoaic tension of trying to survive. The home is no longer the store of value for Fetirenent and those who do retire are being forced out by rising taxes. This entire Marxist model is collapsing and government is refusing to listen today ‘as they have alvays done even back in the Lith Century. ‘This idea that borrowing will somehow make Uhings better, is just nuts. We are losing eversthing ve vere promised land like Saint Jerome said of Rome, When Rone fell, the Romans vere still laughing. No doibt, "we are in the sane boat. while everyone’ is focused on the latest season of sports, we too are cheering as everything We thought we had “is crumbling at the very core. There is NO plan to pay off any debt. ‘And tere is no way to pay the pensions of goverment employees without exploiting the people even further.1684.65 > oe ° ‘The Great Revolt of 1381 vas truly the beginning of a trend that began a wave of overall private uprising that forced at the fend, what they called the Glorious tavolution of 1689, Thomas Jefferson warned that the issolution of the United States vould be caused by tho Judiciary. He knew his history well for this vas also the main target of the beginning of that Major Private Wave, ‘The judges were perhaps the most hated in government for they would twist the law to ensure the king always won. ‘The rebels led by Mat Tyler produced a List of traitors, who they vieed had to be executed. There vere two Chief Justices and the Chief Baron of the Exchequer who were listed. They also listed Sir John Cavendish who vad the highest judicial officer in the ation ~ the Chief Justice of the King's Bench. Carendish was surrounded by a large mob and executed by the people. In October 1383, Sir Michael de 1a Pole ‘spoke at the opening of Parliament. and then described the Great Revolt as having. begun with "acts of disobedience and rebellion tovards the lesser servants of the king, such a8 the sheriffs, escheators, collectors of the subsides” and expanded “against the great officers of the kingdom and finally against the king himself." While the Great Revolt of 1381 vas indo ruthlessly put down by government to preserv its power, this was just the beginning. From 1581 to 1405, there ere at Least 5 revolts. In May 1450, ‘Willian (Jack) Cade led another rebellion iSsuing a manifesto demanding the Femoval of the king's ministers. After then defeating the Royal Army, they too occupied THE 309.6 year crcuE OF aLrunwaTing GEWERAL iRenDs Seri PUBLIC & PRIVATE: DOMINATING” FORGES ¥ 3 Saag eee aan tt Retnetad etlord ees gs aa cee at ee ee a ae ee Sos eo aes me te een era ae eles Lidice a eg oe te The collapse in the Rule of Lav is the ost dangerous of all actions. Once that takes place, there ie no alternative but force. This 4s what Thomas Jefferson understood. Once nore, the Intest focus of criminal prosecutions is tares, The governsent again is desperate for money and it is using its corrupt judges to ‘sbuse the people, Instead of solving the real debt crisis, the government is turaing against the people. ‘It is even trying to bullshit corp- erations to bring back cash promising amnesty.Te is nice to claim that ‘thot wae the medieval tines, and ve are civilized nov. Thespassions of man never ‘change no matter what the ‘Sencory, During the Great Depression, veterans had smarched on Washington. They were demanding their promised bonus. There and then, Just. as Chine sene tanks ageinet its students Sn 1985, the US sent tanks againet unarmed veterans Seith their wanes’ and children. The troops were led by General MacArthur’ and his afd tas Dvight Bisenhower. They justified thelr actions as did the ge do sdinral then erieinais that in their mind now justifies Killing the: people at these easure. For as, mic fs things seen to change, power is always the lisir of absolute tyranny. blr od hve qi Base ‘The Suprene Court is hearing a ct here a jury avarded a man $16 million for 18 years of inprisonsent sentenced to death. His investigators discovered that there had S question DA's | USA Today October 7th, 2010 ‘As reported by USA Today, the Supreme Jcourt is Listening to another case vhere the victim of KNOWINGLY prosecuting the wrong aan Jand scoking his death varrante suing the been DNA evidence that proved the goveranent | prosecutor's supervisors. ‘Tae Suprene Court. vas prosecuting and demanding the execution of the wrong man, The Supreme Court held Years ago that prosecutors have ABSOLUTE Anmunity against lawsuits Like judges for Without such protection they night be afraid | exculpatory evidence. to prosecute people. This 18 contrary to the Constitution that states in Article IL, §3 that all prosecutors "shall take Care that the Lavs be faithfully executed.” Yet the Supreme Court has held that. prosecutors Vill most Likely rule against the people and hhold that this atteapted murder by prosecutors is above the Lav. The case was in 1963 Brady ¥ Maryland that held prosecutors must turnover But if you can't. sue for DELIBERATE violation of that law, then Brady has no real effect. This is indicative of how the government 4s above the law and can knowingly execute the ‘who even HYOWINGLY prosecute the wrong peo- | wrong man pretending he committed com crime ple cannot be sued for anything at anytime. ‘That means you have NO RIGHTS AT ALL and thoy can withhold all evidence that proves your innocence, This is somhaw in the PUBLIC Interest. In reality, it 38 only én the interest of government, certainly NOT the people. Do ve not all have the right When all the time it is just a politicial Execution no different than China or Saddam in Traq. This is how far government has crossed thet asd and hecnas anew ape tyranny. There is no right Left by any citizen that has any force in any court when fost judges are. in fact former prosecutors. This is a conflict to EQUAL PROTECTION OF THE LAI? The Judicial | of interest no judge will recognize without, branch is abo ‘the law at all times. having to rule against himself.We may think we have a democracy, but wo have nothing that renotely resembles What we vere trying to create, The flaw in Our political system is the lack of ters limits. This has enabled the legislative branch’to become part of the bureaucracy against the people as the Bxecutive and the Sidieiary. We Lost the check and balance Intended to prevent tyranay that is always ‘economic based. The Senate Judicial Conmmitt=| 2c will NEVER investigate judges nor the prosecutors. So there is no check and bal- ‘ance to protect liberty. Once the "elected" representatives became professional career politicians, they forgot what side they were suppose to be on and support the Unelected Executive and Judicial branches. The Laws they pass Feflect the same attitudes of medieval days for there 12 NO regulation that takes place without @ criminal penalty. This is why people are in prison for shooting a moose the’ wrong, gun because they regulate every~ thing. Bren the healthcare act carried a fine and tera of Amprisonsent for up to one year for resistance. The solution to all Chings is to imprison citizens. ARE AMERICAN| (CITIZENS. 10 TIMES MORE. CRIMINAL ‘OF EVERY OTHER NATTON = OR HAVE_OUR ELECTED ‘OFFICIALS CROSSED OVER TO TYRANT? ‘The elected branch was suppose to be the people's check and balance against the inherent tyranny of the Executive, Yet, if the elected politicians are career, they are voting in support of the Hxecutive: That is why they have appointed former prosecutors fas judges to ensure that they will bend the Rule of Lav always to the government favor. This is vhy the conviction rate has soared from 72E during the 1970s vo 99% today and Virtually eversthing is now criminal (see Tiree Felonies a Day explaining how every Anerican commits thres crimes each day 59 the goverament could imprison anyone at any time they desire). Because the "elected" branch crossed over to Join with the “unelected” branches, we have lost all hope. ALL three branches fre now supporting each other and this is Why there can be no solution. Congress will never vote for anything that reduces the power of government and this seals our fate to suffer the pains of economic collapse. Wie Lost the very thing that was suppose to protect us. Europe is much the sase. The rise of professional politicians hes been our dovn— fall just as it was in Rone. Tae Ronan Senate collapsed into utter corruption and was then controlled by an Oligarchy. Today, the NY banks 0 control the Fxecuiive and in turn control the politicians by throwing money at. thea for reblection, keepirg their influence feneuring there will be an (Ligarchy control of society. Yor, those who spin vest webs of con epiracies that control the world read way ‘too such into the Oligarchy. Yes, they no doubt control Congress. Hovever, ‘they are ot planning long-term tresds. They are in this for the Sanediate gratification. When it comes to long-term, they are about a3 blind as a bat. That is vk} ve are collapsing. Tf they really could contrcl the long-tera, thoy would not sow the coats of their ovn destruction. This ie all about profite for tthe noxt quarter ~ THAT IS IT! ‘The bankers that are into every crack from politics to the press are trying to ‘ensure guaranteed control nd trades. They have no patience to vait for long-term re~ sults, Tt is now oF nothing. To a large extent, this is why ve are doomed. Thare is nobody driving the cab and it has ‘the gas peddle atuck to the floor. A professional politician has no concept of ‘what's happening for they have no experience in economics or trading. They would not knov ‘why the Dow rises and falls any aore than Someone else Listening to the same scripted talking heads. ‘The WY Rankers sell the US debt. They need the ney issues and will NEVER warn the government this is not working. What banker ie going to put himself out of business? So wwe cannot count on the advice fron any of tthe major banks who are PRIMARY DEALERS ‘and depend upon selling that crap to their Clients who are stuffing your pension into those quality government. bends. Since the AY Bankers fund the elections, tno politician will kill the goose that lays the golden egg. So there we are. Going to hyelland we can no longer afford the hand basket. The markets are speaking clear. Ve better ‘start to Listen for we are on our own at the end of the day,Hore is the chart for the Dow Jones Industrisle showing the soithly activity. The market made its directional change in August with the week of the 2nd producing a high and the lov cane the last’ week of the month. Thereafter, we have reversed ‘and moved up against all the fundamental confusing the hell out of everyone. Yet, the market is trying to tell us something very important. As T have explained before, the Dov bottomed in 1932 and rallied into 1937 even when uenployment rose sharply and the WPA vas forned in 1935, The market becae 2 hedge against inflation that waa being deliberately created by the devaluation of USS and gold confiscation. This resulted in and ALTERNATIVE to government debt and indeed we even see corporate yields decline relative to government shoving the shift in capital to the private sector. This was a Sided by the massive defaults of Luropean government in 1931 folloved by South America fand China. This was a shift in capital that was from PUBLIC to PRIVATE. This type of pattern unfolds all the tine whenever ve are looking at a crisis in confidence and trust regarding governaent. 10 The mrkets are trying to tell us some- thing critical, The Dov rose because it was preparing to shift into a private hedge mode Jainat government. CAPITAL is not stupid, Te does not Listen to the nonsense spouted fut by the talking heads on TV who just read from scripts. Serious capital moves always according to its self-interest. Capital is Shifting o: a global scale and that cannot be manipulated by the press of any nation nor by any government, There is so CONSPIRACY of illuminati or some other group vho controls everything. Manipulations are common and have been going on since the days of ancient Athens where there is the first market manipulation ia recorded history. Tn 1340, there was the trial in lrgland of Robert 1¢ Poleter for “hoaghtenire the market” price of corn. Today, it is the tag New York Banks manipulating markets with the willful consent of the SEC ‘and CFTC who do nothing to even pick up the Tug. Bat these manipulations are short—ters involving comodities. There is no coherent manipulation of the giobal econony for nobody hhas that mich power nor the tools to do so. The Free Markets will not allow that and even the manipulations of a particular market are alvays accelerating a trend already in sotion. This was true of the housing market into 2007-Has the dollar peaked and gold bottomed at last? Foipepsasynsonmatasion wpasnlacnteeenes sn ie pono omy Ranta yt ee Bebe epnmescsees Repeeceensiniorensusie taco deus kee. ietbegmis cece momo oom Mronouunyennelneasnte: Hels Ssose mere pee st Bice cree ye on macs cae "Ga en sag sodeatoyaiel sasaki abod acc me tans ees A ‘tone aeceachanpamh Sapa erp ans ss ot Saeoorames meer omanos cae aomcemtancs Souza Selena Re eeta perce ss SRRSaeS fe + Quartery tial service is avaable at 30% of the annual rat, Crtent Sampo copy $100 per report. a PRINCETON ECONOMICS INTERNATIONAL LTD, Plantation House, Ground Fong Section E, 10-15 Mincing Lare, London EC3M SOX Toophone: (44) 01-2696771 Pinceton London + Geneva uTe is critical to understand that alt throughout history there has been this shift in confidence. CN8C just did a show on the firm Goldaan Sacha Pover and Peril, They in fact gave results of @ poll. shoving that Goldnan has a lover approval rating among tthe Anorican people than BP. That is protty bad. Goldman is widely seen'as a corrupt super-hedge fund masquerading as a bank. It Clains to embrace its conflicts and CHBC ‘eked clients about Goldman who responded that Goldaan alvays puts its’ oxn interests first, but because of who there are, they still had to deal vith thea, How can a fire be an advisor to governments and at the same tine be trading on that inside information? Jase 98 public opinion is against. Gold~ man, this is wrapped up in the vhole thing ‘shout the corruption in government. This. 18 the swing between PUSLIC and PRIVATE sectors that has been going on for a very Long time. How the markets swing reflects their true confidence. Here is illustrated the advertisement we ran on the back-cover of the Economist in July 1985, We took the back cover for three weeks that month because it was the turning point vhere we left a PUBLIC Wave that folloved the PRIVATE Wave thar peaked in 1929, The confidence shifted overall to one of a PUBLIC sector. People then trusted tthe government rather than corporations. ‘The PUBLIC wave peaked in 1981 and then bottomed in July 1985. From that paint on, the shift moved from PUBLIC back to PRIVATE. 1985 foraed the birth of the G5 (now G20) ‘and government actively began to manipulate markets to create policy. Goldman shifted from being @ true Investment Bank helping corporations buying J. Aaron & Co becoming the most aggressive tnader in banking histor’ within Western society asa whole. Goldman became the ayabol of a PRIVATE Wave to the point that even the government gets dova on its knees to worship every word they say. If we Listen and vatch the markets very closely, you will begin to see that they are ‘anything BUT what the mainstream analytical chose praise, Interest rates peaked in 1929 ‘and bottomed in 1932, The stock market fell from 386 to 42, Lover interest rates did nothing. Japan lovered interest rates to zero or there about and got a lost decade, The dollar rose to record highs into "32 which 18 why Roosevelt confiscated gold and devalued the dollar raising its value from $20 to $95 per ounce. Japan is following the ‘sane pattera, The worse the economy, the higher the yen moves. The higher the yon, the greater the economic disaster. Japan's Marxist Sconoay is imploding. Japan regulates every- thing right down to che white gloves vorn by taxi drivers, Hand one a tip and he hande 3 back. Trying to get approval for something often takes 5 to 7 agency approvals. The red tape in Japan vas notorious. ‘The yon is going to well exceed its 1995, high (126,25 futures) and the cash could fall to even 66 to the dollar. This is crushing ‘the economy and it is part of the collapse in Marxist-Soeialioa. Wo are in the final stages of this long and protracted experiment with the nightmare Of Marxism, There needs to be hunanity in ovr Social structure, But we have replaced the idea of the rich being oppressive with merely governaont, Marx's take on hastory is dead Wrong for he ignored the fact that the "rich" were those in government pover. Narr failed to comprehend a6 did Aristotle that the econ ony evolves. Aristotle vas concerned about the shift fron a Villa Economy of self-suff- cent estates to a Market Economy and excess production could now be sold and exported. Marx saw the industrial revolution in the same way as the exploitation of labor taking then from an agrarian society to factories. Today, the great experiment of Marx has Failed, Conmunism collapsed in 1989, Now st is the West's turn with Socialiem that was trying to follow Marx by being just a Little bit pregnant. The new economy on the other side’ of the abyss will be a coapletely new World. If history repeats, we should see a few age of Enlightenment. ‘Te will not come easy. The birth-pains will be tremendous. We are dealing vith political-bureaucracy of truly Lethal ruthlessness that will hang on to every last thread of power. But it will nonatheless collapse of its ova weight and inefficiency. Those who work for goveranont will lose as they alvays have, This i9 Just fone reason gold and the Dow rise together. Soéialiss is collapsing as did Comunisa. NICE. TRY ~ BUT-NO- CIGAR! Sorry Marx?