Press Release of
Princeton Economic Institute September 20, 1999
The Princeton Economic Institute is an independent research organization and is not owned by Martin Armstrong nor is Mr. Armstrong a director of the Institute. It is NOT related to Princeton Global Management or part of Princeton Economics International nor does it engage in the management of any funds.
Our daily forecasting reports, Global Market Watch and system models used at Princeton Economic Institute are independent models that are not the product of any single analyst. It is our intent to continue to publish our research and bring an independent and objective information to our many loyal clients around the world.
While Mr. Armstrong has always been an outspoken opponent against government manipulations, interventions and "the billionare's club", his direct warnings about the political corruption in Japan and the billions of dollars in hidden losses within its financial system , in some cases carried out by ex-MOF officials, have put him in the direct line of fire by the Japanese government as the man they most wish to discredit. No doubt his highly critical stand against the accounting systems used by all governments that falsely distort CPI, GDP, trade statistics, poverty statistics and taxation have not made him very popular in some circles. His outspoken warnings about the failure of the Euro have also created a few enemies. Mr. Armstrong has always been aware that his research has made him a target over the years nevertheless, he has always stood his ground.
Mr. Armstrong's involvement as an activist in governmental reform is well documented particularly in the field of global tax reform and its impact upon the economy. He stood by his convictions against the birth of the G5 back in 1985. When his Economic Confidence Model pinpointed the precise day for the low during the crash of 1987, he stood alone calling for new highs into1989. His research was even requested by the Brady Commission charged with investigating the incident and some of our clients were on the Commission itself (See Request). He became famous in Japan when his model also projected the high for the Nikkei in 1989 and boldly warned that the market would collapse by 20,000 points within 10 months. His research forewarned of the bull market in US and European equities in 1994 calling for the Dow to reach 6,000 by 1996 and later 10,000 by 1998. (See Vancouver Sun) His research warned of the Asian Crisis in 1997 and of course his model was able to project the collapse of Russia which made headlines in the London FT. His warning that the Euro would fail made him an enemy to some political groups in Europe. Of course when the very same model that pinpointed the 1987 Crash, Tokyo Crash and the birth of the bull market in equities also gave July 20th as an important major top last year, the validity of more than 20 years of his model became undeniable.
As staff members here can attest, even the CIA approached this office requesting that Mr. Armstrong assist the government in duplicating his model just last October, but he refused offering advisory services while insisting that the model remain proprietary. Mr. Armstrong was invited to China by the government where the Chinese made a similar proposal to obtain his model following his successful forecast of the Asian Crisis in 1997. Even after a visit to Princeton in 1998 by a representative of China, Mr. Armstrong still refused to cooperate with the Chinese insisting that the model remain proprietary.
Even the Gold Bugs have tried to join in on the issue claiming that there is a huge short position in gold of 20,000 ounces and that the demise of Mr. Armstrong will now lead to a bull market. Once again, there is no huge short position by anyone and this is another example of outright slander by GATA in a futile attempt to blame Mr. Armstrong for the bear market in gold simply because of his warnings of coming central bank and IMF sales more than one year ahead of the general media. Mr. Armstrong's warning that gold would decline has generated even personal threats sent to this office by some crazy Gold Bugs. There are many who have a vested interest in trying to discredit Mr. Armstrong, including one financial institution in particular which stands a lot to gain. They may all try to kill the messenger, but they will not change the forecasts that he has made for the future.
Mr. Armstrong flatly denies the allegations made against him and he intends to vigorously defend himself. His attorney has stated publicly that he is being made a "scapegoat" but the media prefers to print the propaganda handed directly to them by his opponents. The Japanese press is blaming all foreign firms for the demise of the Japanese financial system and even the FSA has publicly stated that they will investigate all foreign firms in Japan with a new nationalistic zeal after the Credit Swiss affair. If Mr. Armstrong is misquoted by the media in any response he would make, it can be used against him by the government. This is why his legal advisers insist upon his silence until he is heard in a court of law. Any similarity to Credit Swiss has been totally ignored by the western media and they prefer to try to discredit his research of the past 20 years. At no time has Mr. Armstrong ever misrepresented his background as confirmed by Mark Pittman of Bloomberg in his article of September 14, who interviewed him two years ago for Bloomberg. After all, Keynes, Ricardo and even Adam Smith became important contributors to economics without any formal degree in the subject relying instead upon unbiased experience and observation.
The staff of Princeton Economic Institute greatly appreciate the numerous responses of support, the gifts sent to the staff to cheer them up and those who have come forward offering even financial support to insure the long-term survival of this operation. We will keep our clients updated as to any developments in the near future and the staff here will do its best to keep the flame of free speech and objectivity alive. It is not an easy task.