Tuesday, April 27, 2010

Sovereign Debt Crisis Solution: by Martin A. Armstrong March 9, 2010

Sovereign Debt Crisis Solution: by Martin A. Armstrong March 9, 2010

Armstrong Economics (written in solitary confinement at Fort Dix Prison)

I am writing this because it is urgent. We are entering Phase II of the Debt
Crisis. When the Euro was being born, a special commission came to my London lecture by special request.

I explained they had to adopt the original fed model so that each country
had its own interest rate. That they adopted, just as the 12 branches of the Fed at first had a separate interest rates to manage capital flow. But now the EC is in a dire position and a debt crisis at the Sovereign level is starting to
materialize. This will spread to US/State debt and the CFTC move to limit
currency trading by the public from 100:1 to 10:1, can cause a liquidity crisis that backfires, magnifying everything.

                             Default < Euro > Civil Unrest

This is the simple European model. Greece, Spain, Italy and Ireland are trapped. Their interest rates will rise and cause only an outflow of National Wealth. They have no way to address the problem that is accumulative.

I have burned my brain raw trying to come up with a solution. But there is only one:

A complete restructure that is a debt for equity swap. Debts will never be paid and Interest expenditures are the greatest transfer of wealth in history.
This is causing rising taxes in all areas from Europe to the US suppressing economic activity, fueling higher unemployment and civil unrest. Western Society is falling apart.

Who is trying to silence me, I do not know. I have received a letter from one member of the House of Finance Committee asking to please submit suggestions. Please forward this to politicians everywhere.

1) We freeze all National Debt

2) We issue coupons whereby the debt will be redeemed for local currency to be invested in the domestic economy debt or equity.

3) Each Nation then establishes its own currency pegged to the Euro. The US debt is swapped to coupons that may be spent domestically.

4) All direct taxation must end, NO INCOME TAX, GIFT, INHERITANCE, CAPITAL GAINS or PROPERTY TAX. All local government funds itself by Retail Sales Tax.

5) Federal Government prints the cash needed instead of accumulative deficit each year as a % of GDP. Add up interest paid 1986-2006, the US debt other than interest would have been less than $300 billion. Printing if controlled will not be a fiat nor hyper inflation. We need a steady growth in money supply to expand and keep up with population.

These are basic cornerstones required to stop the cycle of economic implosion. I need to get a computer to prove the case and fine tune everything. But someone is pulling the strings to silence what I have to say.

If we do not act, civil unrest will explode. The current choice is Default or Higher Taxes and Civil Unrest. Property taxes have jumped and collections are up over 40% in all major states passing 50% in Nevada, Wyoming, Kansas, Michigan, Louisiana, Virginia, Florida and Vermont, as well as Hawaii between 2001 -2007. Now taxes are rising because of foreclosures that suspend tax revenue.

I have done my best to try to help. I have clearly paid the price. As Europe weakens, The Dollar, Dow and Gold would Rise. When the debt concerns then turn to the US, the Dollar will get hit only then.

Be careful. Watch the horizon. I have no idea when I will ever be able to write again.

(Martin was in the hole at this time for helping another prisoner with a Habeas legal paper, he is now out and has the use of a typewriter again but no computer – the US House Finance Committee should press for Martin to have access to a computer and data if they cannot get him out of prison to help with the crisis)

Someone has to step forward to save us or we may be doomed. It’s time to wake up for this is the future of our children and their children at stake.

All The Best
America’s #1 Political Prisoner
Martin A. Armstrong
March 9th, 2010

Note:Original hand written article converted to PDF by Kris at www.Sribd.com then PDF was hand typed and edited into word document by myself Russ Browne.

Monday, February 01, 2010

Martin Armstrong Bio

As founder of Princeton Economics he oversaw the development of PEI’s economic models and computer systems and created the Economic Confidence Model, which focuses on the impact of the 8.6 year business cycle on the world economy. He is also the author of “The Greatest Bull Market in History”, a definitive 3-volume study of the world economy and financial markets since 1900. He was voted “Americas Top Economist” in 1990 by Equity Magazine.

Martin has been called on by the Joint Economic Council of Congress to testify on economic issues, as well as the Brady Commission, where he was invited to share his views on the 1987 market crash (which he predicted using his computer models far in advance of the crash). Martin Armstrong has often been quoted by news organizations such as the New York Times, Wall Street Journal and Bloomberg. He has also appeared on CNBC and other financial broadcasts sharing his views. Martin has devoted his time to analyzing financial markets, studying the history of business cycles, market crashes and world monetary systems.

In September, 1999, Martin was accused of securities fraud stemming from business he and his companies conducted in Japan. Within a matter of weeks Martin was facing various charges and counts of securities fraud related to an alleged billion dollar ponzi scheme in which Martin was accused of stealing from individual Japanese clients, which Martin fought for nearly seven years without a trial before finally pleading guilty to only one count of a much lesser charge in August 2006, all the while being held in prison under a civil contempt charge since January 2000 in the parallel civil case with the SEC and CFTC. In April 2007 Martin was sentenced to an additional five years in prison without any credit for the seven plus years he had spent in civil contempt. There are many more details about Martin’s legal case, and over time this website will provide more information for your reference.

Martin is currently being held in federal prison, where he is typing his essays on an old-fashioned typewriter as he has no access to a computer, Internet or email. Martin is unable receive phone calls, but he can receive mail (only letters and soft cover books, all hard cover books must be sent directly from place of purchase, such as Amazon.com). If you’d like to send Martin a letter you can do so at the follow address:

Martin Armstrong #12518-050
FCI Camp
P.O.Box 2000
Fort Dix, NJ 08640