Before getting to an example of real investigative journalism about the incestuous relationship between the Govt and Google, I want to recommend a couple of outstanding reads from Armstrong that will lay the historical foundation as to why and how the current corporatocracy will collapse the world economy. The paranoid and psychotic actions of a govt, whose leaders fear the loss of their job, perks, and power, is nothing new because the passions of man have never changed. However, understanding how it happened before is what makes history interesting.
Whether you do or do not understand why Centrally-Planned Societies Always Fail , an understanding of what propels the world economy is mandatory to comprehend its demise, as well as weathering the coming storm. This historically informative piece by Armstrong is well worth your time, as is this one that unveils the paradox of inflation and deflation, which explains why gold and other commodities have declined in the face of continuous QE (money/debt creation). These are longish reads, so treat them like chapters of a book, which Armstrong is trying to get out – but why not get a head start.
For your reference, I am also including a more in-depth understanding of the “three faces of inflation and deflation“, which goes well beyond the simple linear relationship between supply and demand, and explains how everything is connected. The ability to make sense of an interconnected non-linear world is impossible for humans, even though the ivory-tower academics and politicians with no real world experience want you to believe they can “manage” the world economy.
Armstrong has been so right for so long about world economic events because he set his personal opinions and biases aside and let a model with the largest validated collection of world economic data do the talking. Since this look behind the curtain scares the deceit right out of those in power, the govt tried desperately to get their hands on the model, even imprisoning Armstrong for the longest time of any man without charges being filed. There’s a reason the controlled main stream media will never mention his name, much less interview him. Bloomberg has even wiped anything they previously published about his projections from their database.
There’s also a reason that the Documentary of these events and projections will never be shown publicly in the “land of the free”, even though it was one of the top documentaries released at the largest documentary film festival in Amsterdam last November. Just as Snowden had to go to The Guardian to insure the release of unconstitutional NSA snooping, Armstrong’s experiences behind the curtain forced him to rely on a foreign producer to reveal the truth about govt and debt. The shift from public (govt debt) to private assets (including stocks) discussed in the article above, will accelerate with the loss of confidence in govts (first in the EU, then in Japan, and finally the US). A further explanation of this asset transition can be found here, which sheds light on why stocks continue to rise and gold has declined in the face of a dismal world economy. You will also understand how the rising dollar will collapse the global economies of the world that hold massive amounts of dollar-based debts.
A US-centric view could easily have predicted an earlier collapse of our economy, due to the unwillingness to address the core issues that caused the tech bubble and real estate bubbles. In fact, the majority have been confused for years because they failed to understand international capital flows, that have been fleeing uncertainty around the world (especially in Europe, Russia, and emerging economies getting hammered by our monetary policies).
The stock market has enjoyed a relatively stable up-trend since the March 2009 low, except for the two minor setbacks in 2010 and 2011 on the fear that the FED would halt QE. The current fear that the FED will raise rates this year is stoking the necessary fear to set up the next rally, for as long as the world economy continues its steady implosion from the periphery to the core (1,2,3,4,5,6), the bull market in US stocks and many private assets (driven by the flight of capital from the periphery to the core) will continue. The only thing that remains is to get mom and pop off the sidelines and into the market so the last bagholders can be conned, again.
A subtle rise in stocks will grow more “obvious”, as the uptrend accelerates as the periphery sovereign debts implode by the end of this year (likely started by Greece correctly walking away from its debt). Any default will force the recognition of marked-to-myth worthless debt that prior to the 2008 collapse used to be marked-to-market. When the debt dominoes start to fall it will accelerate the trend of reserves from govt bonds into equities.
As a brief aside on the Greece situation, and the recent victory by the far left party that ran on the platform of ending austerity, I would encourage you to listen to these comments by the Greek Finance Minister, Yanis Varoufakis; and read the Open Letter by the new Prime Minister, Alexis Tsipras, to German citizens two weeks before the election; and tell me this Party sounds like some radical Leftist group that western media would have you believe. I wish we had such truthful and coherent leaders. After listening and reading the statements from Greek leadership, does anyone really think Greece is now going to borrow more money to pay back what they don’t have? Hopefully, Greece will be the first government to question this entire insane system of borrowing money that nobody intends to pay back, and shine the light on who is the crazy one – the borrower or the lender?
The facts are the numbers on Greece make it impossible for Greece to pay back their debt (kinda like the US and the rest of the West), and the intent of austerity is to pay back the banksters, even it kills the Greek people (the citizens of the US and the rest of the West will also get to make the same choice as Greek voters). The bottom line is you cannot get out of an inability to pay borrowed money by borrowing more – and the newly elected govt knows it, and so does the EU, Japan, and the US, even though they will never admit it in public.
Greece is once again at the epicenter for another transition of economic power, as they have forced the hand of the bureaucrats in Brussels – who appear to have reached a Vespasian moment. How will they respond? As before, now, and in the future, the bureaucrats whose jobs depend on growing govt, will do what ever it takes to maintain their power and perks, including orchestrating another war. Hopefully, Greece will make the world see that strip-mining a country (austerity) to pay bond holders with digitized interest-bearing debt is no way to run an economy.
Greece should seize this moment to do what we should have done in 2001 and 2008, reset the unsustainable levered debt system by canceling euro-based debt payments, and re-instate the Drachma. They would instantly have the most competitive exports and be the cheapest tourist destination in Europe. Like Great Britain, who was the first to abandoned the gold standard to be the first to recover from the Great Depression, Greece would be the first to recover from the sovereign debt Big Bang.
Since the world’s reserves represent more than ten times trading flows, it doesn’t matter if China, Russia, Iran, Brazil, and others set up trading alliance that bypass the US dollar (as they are doing), or the FED prints money. The dollar will not decline as the hyper-inflationist believe because it’s world reserves that consumes our “printed” bonds (which also sends the interest payments, funded by taxes, overseas). This is why the QE’s (debt monetization) failed to stimulate the economy or increase inflation as the FED projected, which is another example of fraud or ignorance, but that’s a topic for another time.
As the world (periphery) seeks the “relative” safety of the US dollar (core), stocks will be driven higher, especially because of the very low, artificial yield on bonds that have caused the underfunding of pension funds, insurance companies, sovereign wealth funds, and the savings of retirees. The gullible public will buy the onslaught of easy explanations, including the lie that the FED is raising rates because the economy is improving, when the real reason will be they don’t want to be accused of blowing another stock bubble.
Unfortunately, the myopic FED will seal the fate of the US and other large holders of dollar-based debts as the increase in rates will detonate the balance sheets of countries, companies, and individuals who are levered with too much debt. If the Fed and Govt would simply get out-of-the-way of small business entrepreneurs instead of confiscate what they build, we might have a chance. Do you see the govt and their henchmen running the multinationals complying? Yea, me neither.
Don’t be one of the bagholders that chase the exponential rise in stocks. Instead, buy the dips now and gradually sell the parabolic move higher and take your money out of the system that will bail-in your account when the SHTF. In anticipation of the loss in govt confidence, smart money will be getting their money out of the system and storing it in safer assets, which includes moveable assets like gold/silver coins and diamonds (if the movement requires passing through metal detectors). It is easier to comprehend the Google-Govt massive fraud when one understands the lengths govt’s have always gone to get their citizen’s information and money – like the Venetian “Mouth of Truth”, which encouraged people to anonymously rat out their fellow citizens by dropping a note in the hole in the mouth. The two biggest govt actions today that are making capital unavailable for business growth are the NSA’s surveillance program to find the money (enabled by Google and other tech companies), and the FATCA legislation to confiscate it.
FATCA and the NSA are different from the “Mouth of Truth” in that they force foreign banks to give up their client data on Americans, and Post Office and NSA simply go get the information instead of depending on snitches. If you’re not familiar with the FATCA regulation signed by Obama in March 2010, below are a few articles that describe this govt money grab that’s forcing the capital needed for growth underground and under mattresses:
Just as the NSA’s collaboration with US tech companies has hurt their business abroad, the economically destructive FATCA regulation is even worse. To enable the money grab, the govt must hunt it down when the banks don’t turn over the account information required by FATCA. The NSA surveillance program, which includes mining everyone’s data sources, is the key technology that’s been unleashed for finding the cash.
FATCA and NSA snooping have caused foreign banks to increasingly deny accounts to American’s, making it virtually impossible today to open a foreign bank account. While the brain-washed think it is okay for govt to soak the rich (really the middle class) or track everyone’s data/life, what they fail to realize is the impact these activities have on capital flows (currency), and the businesses/jobs that require it. These power-hungry idiots with no practical experience do not understand capital flows or Adam Smith’s “Invisible Hand“, which ultimately results in de-funding themselves by imploding the world economy.
After that brief introduction, let’s move on to the Google-Govt story. When I reported the back doors being left open by major tech firms for the govt to steal citizens data, I had no idea how pervasive and ugly it really was – until I read this in-depth paper that details how the CIA made GOOGLE, and why GOOGLE made the NSA. All I can say is, READ IT, and draw your own conclusions. Hopefully, you will now appreciate the economic harm these sociopaths are causing, not to mention the loss of inalienable rights and freedoms promised by the Constitution they swore to protect. Moreover, the culmination of all these govt abuses and frauds at the federal, state, and local level destroys the trust and confidence in govt, which is the primary pillar of free-market capitalism and fiat currency. BTW, crony-capitalism is NOT the free-market capitalism that made this country great by unleashing the entrepreneur spirit, which is still a requirement for increased prosperity (unlike centrally planned systems that always fail).
We may not like it, but it is the reality we must face to best survive and profit from the very bumpy transition from public to private (2016-2020), and the transition from the dollar as the world’s reserve, to a global hybrid (2030-2034). There are solutions to the current political economy, but overcoming the self-interest of those in power is the obstacle that will require citizens to get off the couch.
It’s not that the historic trends can stop the coming Big Bang, or your forced contribution to buy US Treasuries through the govt’s MyIRA Ponzi scheme, but humanity can decide what rises out of the ashes. A good start would be eliminating all income and corporate taxes and replacing them with a Fair tax that is consumption-based. Eliminate deficit spending and limit it to 5% of GDP, with violators being able to choose between life in prison or death. Of course, short term-limits should also be on the short list, which is STEP-1. Who knows, with the rise in 3rd-party candidates that is forecasted for 2016, we might get lucky. Below are a few articles to consider when we grasp for solutions: