Kamala Harris – Medicare for All

QUESTION: Marty, what do you make of Harris’s Medicare-for-all plan joining Bernie Sanders? Is this just another way the destroy the society?

HY

ANSWER: There is a HUGE problem nobody seems willing to address. People compare US healthcare costs to those of places like Britain. The problem is that we have a private system and in Britain, the doctors work for the government. Harris’s plan is sort of a hybrid and it would be phased in over 10 years making it another government disaster. All we need to do is look at the VA hospitals. Government is simply incapable of managing anything and then misconduct and mismanagement are exempted from exposure when it is politically important for an election.

Unlike Sanders’, Harris’s plan would include a substantive role for private insurers, which would still be able to offer plans under a tightly regulated system, similar to the way that private insurers currently do through Medicare Advantage.

Additionally, it would transition Americans from the existing system to Medicare-for-all in 10 years, instead of four. And finally, it would use a slightly different payment mechanism: Harris backs several of the methods Sanders has suggested, including higher capital gains taxes, but would only impose taxes on households making $100,000 or more. Sanders’ plan, meanwhile, would impose taxes on households making $29,000 or more.

Healthcare is pricing itself out of the economy. We cannot create a hybrid system leaving private doctors yet 100% coverage under the current system. The VA hospitals prove government cannot be trusted with management. That means we have to create a system that is private yet not uncontrollable.

I would encourage private Medicare-for-all hospitals by treating them as a public utility and to create an incentive for existing hospitals to convert eliminating private insurance entirely. We do that by making them TAX-FREE and all procedures would be priced at a fixed rate with a standard profit margin. No more $500 for a $50 brace.

There are doctors who have been in private practice who have left and gone to the VA because it has become so insane. Many foreign immigrants come into the USA to get lucrative jobs as doctors with a medical degree. Then there are young people who want to become doctors because of the money rather than to help people. Nevertheless, there are a lot of people who want to help people and they would switch over in a heartbeat if we created a viable system.

I have had friends who had local private practices who have effectively been forced to join hospital groups. We have an explosion of Urgent Care centers created which compete against private practices. I have had discussions with those in hospital groups who have said decades ago that they would take that over private practices. That has been the trend.

We can encourage existing groups to switch to a Medicare-for-all system by making them TAX-FREE provided they agree to control over pricing as is the case in public utilities.

The Rising Tensions: Kashmir – Hong Kong – Korea

The War Cycle is by far on schedule. We have tensions rising almost everywhere. In Asia, we have the Kashmir Crisis as hundreds of people took the streets in Srinagar, the main Indian city, to protest New Delhi’s decision to lift the special status of the territory.

In Hong Kong, there are fears that China will send in troops and take military action, which would trigger an international crisis as fear in Asia as a whole will rise sharply over the future of economic stability. This could send the yuan crashing and even force the break of the Hong Kong peg. The Hong Kong share market peaked in January 2018. It has not made new highs in 2019 and remains at risk of breaking the 2018 low of 24540.43. That gives way and capital is showing its concern for the future of Hong Kong.

In South Korea, the high in the share market remains that of November 2017. We are trading below the 2017 low. A closing at year-end below that warns of lower lows into 2020. Here, the concern is the economic pressure on North Korea. North Korea holds a Tree Planting Day every March. The question is whether it could help regreen a largely deforested nation whose people face food shortages, deadly natural disasters, and bitterly cold winters. These economic pressures will eventually push the Supreme Leader into perhaps an attack on South Korea or face an overthrow himself.

We have a serious crisis building in Asia on three fronts. Then there is the chaos of Europe. The Democrats are complete idiots for claiming if Britain exits the EU, they will block any trade deal to punish Britain in support of Brussels. Instead of helping to solve the crisis, they are encouraging the EU not to renegotiate. The Democrats are basically saying — screw the Irish.

Right now, I am working from Asia in the middle of a real crisis with a front-row seat.

 

The Deep State Reality

QUESTION: Dear Mr. Armstrong
Isn’t the FBI a government agency?
In this case, they are paid with “the people” tax money?
Aren’t they supposed to be neutral, I mean, they should be “incorruptible”?
They should not take a position for the left or the right. They should be there for “Justice”?
Can you explain?
Many Thanks to you and your team for all your teachings.
Have a beautiful day
MF

ANSWER: What you say is the theory of a perfect world. Unfortunately, I believe that ever since Bush Jr was elected, the power shifted from the president to the bureaucracy. I have stated before that I use to meet with people who wanted to run for president for the Republicans as a vetting process. They were told I was there to inform them of the global economy and how it functioned, but in reality, I was told to determine if I believed they could handle the job. Then I was asked to run to Texas to meet with Bush Jr, but I was told this was different. I was told he was really “stupid” and they asked me if I would accept the position of Chief Economic Advisor to the president. I was shocked. I asked, “Why would you make someone stupid president?” Particularly since it was exactly opposite of what I had been asked to do for years. I was told he had the “name” to win.

I was told at that time they needed to surround him with “good people” and that is how Cheney became the de facto president. Naturally, I declined for I could not continue my business. Ever since that point in time, the bureaucracy rose to power. They took on a mantle of authority that no one has been able to challenge. Trump has tried, but look at what they have done to him. This is what people are calling the Deep State. The idea that we are free is only an illusion. We have no rights.

Coxey & His Army The first march upon Washington emerged at this time from the Panic of 1893 known as Coxley’s Army. This was a group of unemployed men who marched during the depression year of 1894. Jacob S. Coxley (1854-1951) was a businessman in Ohio whose idea was that government should provide employment through creating public works. His ideas were eventually incorporated in Franklin D. Roosevelt’s New Deal and became the WPA in 1935. Coxley set out for Washington on March 25, 1894, with about 100 men and arrived there on May 1st with about 500 more who had joined. Coxley’s First Amendment rights were, of course, violated for they arrested him for walking on the grass and pretended it had nothing to do with his march.


Baum-3

YellowBrickRoadNevertheless, it was this event that became the “Wizard of Oz.” Lyman Frank Baum (1856-1919) was impressed by this movement. Off to see the Wizard was Washington. The Tin Man was industry, the Scarecrow agriculture, and the Cowardly Lion was William Jennings Bryan. The Yellow Brick Road was the gold standard. It was hoped to persuade Congress to authorize a vast program of public works, and restore the repealed Sherman Silver Purchase Act to increase the money supply – the 19th Century version of Quantitative Easing that virtually bankrupted the USA. This movement was all about financing a substantial increase in the money in circulation to provide jobs for the unemployed.

 

Death Penalty is Never a Punishment – it is an Escape from Punishment

QUESTION: The US will start the death penalty again. What is your view on the death penalty?

HRW

ANSWER: It is far worse to live in prison for life the way the government will torture you without remorse. They are beginning executions once again since 2003. Their allegations against people are always exaggerated and they are cold-hearted. I never met anyone who ever did everything the government claimed and there is a risk that the people they intend to execute are innocent or never intended to do such a crime. The real professional criminals know the system and immediately start testifying against others to get a reduced sentence. So the people they want to execute had nothing to deal with, which tends to imply they were not necessarily career criminals and if they were nuts, that is never a defense anyway. In the famous case of Adamson, he pled guilty waiving a jury trial with the understanding he would get a life sentence and then in 1988 the judge ordered him to be killed. That was eventually overturned that his plea was contrived by the courts themselves promising him one thing and then ordering him to be executed. There is no honor in the Justice System – none whatsoever!!!!!

I personally think the death penalty should be VOLUNTARY for there are people who would take that option rather than being imprisoned for life. If I were in such a position, I would certainly volunteer in a second. To live the rest of your life being tormented by guards for fun and sport is no way to live and no judge will EVER listen to a complaint from an inmate. I simply asked to be given medical treatment and I was denied by two judges and had to wait until my release to seek medical attention. As a result, the vision in my left eye remains partially blurry because they refused me my basic human needs.

Death is an escape; it is not a punishment for it is over fast compared to incarceration that remains for your entire life.

Will Governments ever Listen Before there is Blood in the Streets?

COMMENT: Thank you for ‘Why Private Blogs’. You should get goose bumps once in a while about your work~,
the project is massive in scale, certainly worthy of my respect and everyone else in readerville and your employ as well. This piece is well written and also lays out a good mission statement reminder to all. So, feel free Martin to frame it, re post it once a year, and continue to knick knack patty whack away at the world and toss us bones …. it is a worthy and respected endeavor that is already making the world a better place, especially for those to come rolling home here in the future!!! Stay fired up my friend I have not yet met……. for BETTER DAYS ARE COMING.

REPLY: I do believe people tend to think this is just about forecasting the ups and downs in markets.  I have probably met with more central banks and governments than anyone over the years. I was called in by China during the 1997 Asian Currency Crisis and the Commission forming the Euro. I was called in at the formation of the G5 and by the Brady Commission for the 1987 Crash. All of these things and many more ONLY took place NOT because my opinion is worth something someone else does not have.

All of this has been because we forecast absolutely every country in the world and people even at the upper levels understand what we are doing and this is about demonstrating that absolutely EVERYTHING is connected on a global scale.

I see war as absolutely pointless for the days of empire building are long gone. War is now more like two drunks in a bar fighting because one said something or looked at the other in an intimidating way. This nation-building nonsense is just that – NONSENSE! We pretend that Democracy is so great, yet we really live in Republics that are prone to massive corruption until they inevitably collapse as did Rome. When Caesar crossed the Rubicon, the people cheered and the Senate all fled to Asia. If they had the support of the people, they would have never fled.

It pains me deeply that our systems are so corrupt. I will never believe that Jeffrey Epstein committed suicide. He had so many bargaining chips on people he would never be allowed to testify. This touched people like Bill Clinton, no surprise, Al Gore to Buckingham Palace. Maybe the prosecutor had no idea and when he started this the weight of the political world came crashing down.

The system will self-correct as did Rome. Who will be our Caesar today who knows? But it will come. That is why I say my concern is not Trump, it is who comes after Trump. All I can do is show there is a better way to manage things and we are all connected in this mess. I know the game. They will not listen until there is blood on the streets. Then and only then will they listen out of fear it might be their turn next.

Hillary & the Conspiracy of Relentless Suicides

The real test will be if Ghislaine Maxwell ends up mysteriously dead now that she has been at least seen in Los Angeles. Then the talk that Jeffrey Epstein spent hours alone with a mysterious pretty woman in lockup according to another attorney who withheld his name, demonstrates how over the top things can get. Nobody gets in to visit someone in those attorney rooms without being an attorney. The attorney telling the post that story knows the fact and is just try to feed the rumors. They must have the legal identification to get in the door.

Also, in the unsealed court documents from a 2015 defamation case filed against Epstein’s ex-girlfriend, Ghislaine Maxwell, by Virginia Roberts Giuffre, besides accusing Maxwell of recruiting her as a minor to have sex with Epstein, she also said that she met Bill Clinton, and Al Gore at Epstein’s Virgin Islands home. She did not accuse them of wrongdoing. Now we even have the father of Global Warming palling around with Epstein. This only confirms my view that there was NO WAY Jeffrey Epstein would stand trial.

Market Talk – August 16, 2019

ASIA:

Reuters today reported that Chinese ships are reportedly changing their names in order to bypass US sanctions on Iranian crude oil. Meanwhile, China General Nuclear Power Group (CGN) has been placed on a blacklist by the US meaning that no US firm will be allowed to trade with such companies. The Chinese officials responded that they were not surprised and they have already planned for such a situation.

Successful hedge fund manager Ray Dalio has warned that he could envision China using their treasury holdings as a potential weapon against the US.

China have been doing police exercises in Shenzhen a city across from Hong Kong as locals are expecting the worst with the potential of the Chinese military police entering Hong Kong.

China has expressed grave concerns over Indian action in Kashmir, earlier this week Pakistani PM Imran Khan vowed to show India that they are making a grave mistake. Indian rep to the UN Syed Akbaruddin said that Article 370 has “no external ramifications.” China disagreed, stating it was serious and dangerous.

The major Asian stock markets had a mixed day today:

  • Shanghai increased 8.03 points or 0.29% to 2,823.82
  • Kospi decreased 11.20 points or -0.58% to 1927.17
  • ASX 200 decreased 2.60 points or -0.04% to 6,405.50
  • NIKKEI 225 increased 13.16 points or 0.06% to 20,418.81
  • Hang Seng increased 238.76 points or 0.94% to 25,734.22
  • SENSEX increased 38.80 points or 0.10% to 37,350.33

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.0010 or 0.15% to 0.6785
  • NZDUSD decreased 0.0016 or -0.25% to 0.6431
  • USDJPY increased 0.1680 or 0.16% to 106.2780
  • USDCNY decreased 0.0022 or -0.03% to 7.0465

Precious Metals:

  • Gold decreased 11.15 USD/t oz. or -0.73% to 1,510.75
  • Silver decreased 0.113 USD/t. oz or -0.65% to 17.1837

Some economic news from last night:

New Zealand:

  • Business NZ PMI (Jul) decreased from 51.3 to 48.2
  • RBNZ Offshore Holdings (Jul) increased from 50.30% to 51.70%

Japan:

  • Foreign Bonds Buying decreased from 292.0B to 173.1B
  • Foreign Investments in Japanese Stocks increased from -339.9B to -187.0B
  • Thomson Reuters IPSOS PCSI (Aug) decreased from 40.27 to 39.44

Singapore:

  • Non-Oil Exports (YoY) (Jul) increased from -17.40% to -11.20%
  • Non-Oil Exports (MoM) (Jul) increased from -7.80% to 3.70%
  • Trade Balance increased from 2.450B to 2.830B

China:

  • China Thomson Reuters IPSOS PCSI (Aug) decreased from 78.83 to 71.26

Some economic news from today:

India:

  • Bank Loan Growth remain the same at 12.2%
  • Deposit Growth decreased from 10.6% to 10.1%
  • FX Reserves, USD increased from 428.95B to 430.57B

Hong Kong:

  • GDP (YoY) (Q2) decreased from 0.6% to 0.5%
  • GDP (QoQ) (Q2) decreased from 1.3% to -0.4%

EUROPE/EMEA:

The CEO of Huawei, Ren Zhengfei, stated that he is confident that the UK will still go ahead with the proposed 5G roll out despite security concerns from the parliament and the US.

UK Prime Minister Boris Johnson is set to meet French PM Macron and Germany’s Merkel the following week in a bid to unlock the Brexit deadlock. It is also believed that he will have a phone call with the Irish PM and Donald Tusk as the Brexit date draws near.

Germany’s Angela Merkel has called for a restart to the migrant mission. She declared that the EU should restart the migrant rescue mission in the Mediterranean as it was initially closed due to a push back from Italy.

UK paper Express, has reported that the term “italexit” could well be on the cards sooner than later as Italian Chamber of Deputies vice-president Fabio Rampelli demanded the European Union be “radically changed” to put an end to Franco-German “selfishness.”

Apple computers ongoing 13 billion Euro tax battle with the EU is set to come to a conclusion at a hearing in September.

The major Europe stock markets had a green day today:

  • CAC 40 increased 63.87 points or 1.22% to 5,300.79
  • FTSE 100 increased 50.14 points, or 0.71% to 7,117.15
  • DAX increased 150.07 points or 1.31% to 11,562.74

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00119 or -0.11% to 1.10941
  • GBPUSD increased 0.0066 or 0.55% to 1.2150
  • USDCHF increased 0.97880 or 0.0025% to 0.97880

Some economic news from Europe today:

Euro zone:

  • Trade Balance (Jun) decreased from 22.6B to 20.6B

U.S./AMERICAS:

Americans who owe money to the IRS may be barred from leaving the country. The Fixing America’s Surface Transportation Act (FAST) permits the law to revoke passports and decline new applications due to outstanding debts. Since enacted in 2018, over 400,000 Americans have received letters in the mail to notify them that their freedom to move throughout the world may be at risk. The State Department recently announced that they will begin enforcing the law in a stricter manner. Those at risk include anyone who owes more than $52,000 to the IRS. Expats who no longer reside in the country will also face penalties.

The war in Afghanistan began in 2001; Osama bin Laden was captured and killed ten years later. Yet, many American military members remain situated in Afghanistan. This Friday, President Trump is meeting with advisers to discuss withdrawing troops from the country. However, certain members of the Republican Party are urging the president to reconsider. Republican Senator Lindsey Graham posted a series of Tweets this Friday to discourage the withdrawal. “I hope the President and his team make sound and sustainable decisions about radical Islamist threats emanating from Afghanistan – the place where 9/11 originated,” Gram commented. “A bad agreement puts the radical Islamist movement all over the world on steroids.”

The Census Bureau released encouraging housing stat data Friday morning. Housing starts rose 0.6% YoY in July, while single-family housing starts rose 1.9% MoM. New housing permits rose 8.4% MoM and 1.5% YoY. The data provided some encouragement and helped to alleviate fears of a looming recession foreshadowed by the inverted yield curve. In the last 40 years, single-family housing stats declined by 20% or more on a YoY basis prior to four of the five recessions that occurred in that time.

US Market Closings:

  • The Dow advanced 306.62 points or 1.20% to 25,886.01
  • S&P 500 advanced 41.08 points or 1.44% to 2,888.68
  • Nasdaq advanced 129.38 points or 1.67% to 7,895.99
  • Russell 2000 advanced 31.99 points or 2.19% to 1,493.64

Canadian Market Closings:

  • TSX Composite advanced 137.26 points or 0.86% to 16,149.79
  • TSX 60 advanced 9.18 points or 0.96% to 965.02

Brazil Market Closing:

  • Bovespa advanced 748.87 points or 0.76% to 99,805.78

ENERGY:

Crude oil remained somewhat stable today after data showed that Saudi and OPEC have culled production by 246,000 bpd in July.

The oil markets had a mixed day today:

  • Crude Oil increased 0.27 USD/BBL or 0.50% to 54.6578
  • Brent increased 0.37 USD/BBL or 0.64% to 58.5167
  • Natural gas decreased 0.045 USD/MMBtu or -2.02% to 2.1833
  • Gasoline increased 0.0193 USD/GAL or 1.18% to 1.6579
  • Heating oil increased 0.005 USD/GAL or 0.28% to 1.8182
  • Top commodity gainers: Baltic Dry (2.00%), Orange Juice (2.46%), Corn(2.29%), and Ethanol (1.97%)
  • Top commodity losers: Rubber (-4.86 %), Feeder Cattle (-2.26%), Natural Gas (-2.06%), and Coffee (-1.90%)

The above data was collected around 13:35 EST on Friday.

BONDS:

Japan -0.23%(+1bp), US 2’s 1.52% (+2bps), US 10’s 1.58%(+5bps), US 30’s 2.04%(+6bps), Bunds -0.66% (+4bp), France -0.38% (+4bp), Italy 1.42% (+7bp), Turkey 15.07% (+4bp), Greece 1.96% (-7bp), Portugal 0.13% (+5bp), Spain 0.10% (+6bp) and UK Gilts 0.48% (+7bp).

Has the Freedom of Religion been Destroyed in France?

In France, the Catholic Assumption Day, or Assomption in France, is the day in Roman Catholic tradition when Mary, mother of Jesus Christ, was taken bodily up into heaven. It is celebrated on August 15th each year and is a Holy Day of Obligation for Catholics in France. It is also a public holiday with banks and most businesses closed.

From France, a reader has sent this in. The Marian Procession, as it is known, was surrounded by the army, not police. Many emails have come in about this and it is not being reported in mainstream media. Many are being left with the feeling that a once Catholic country has been reduced to the point that Catholics now require military protection to worship.

This is indeed becoming very disturbing and the sentiment is rising in France where we may indeed see a revolution in the making.

Why I Thank God I am Not 25

QUESTION: Mr Armstrong,
In this morning’s blog you stated that the Dems are trying to take control of the power in Chicago, which I assume is the plan for everywhere eventually. My question is; In your opinion is the fact they are being so blatant in their attack on our freedoms indicate that they are desperate or just arrogant and confident?

JN

ANSWER: Unfortunately, the answer is yes they are desperate, but arrogant and have convinced themselves the rest of the world is evil. This is socialism collapsing because they have promised everything but funded nothing. Instead of looking at the problem, they think all they have to do is solve next month’s rent and worry about what comes later, later.

I know there are people who are extremely left and read this blog simply because they hate me and need something to rant about to others. But if we look just at the unfunded liabilities for pensions on a global scale, it will reach $400 trillion by the end of this cycle. There is certainly NO WAY this can be achieved if you confiscate absolutely every dime anyone has who earns more than $100,000 annually. We are in a total meltdown. They can rant all they want, but the math will catch up and their future will not exist. Their hatred of anyone who has more than them blinds them to their own demise.

I know they do not want to hear it and they just want their benefits at all costs. But this is how Empires, Nations, and City-States crumble to dust. I am sorry, but we cannot live in a financially fictional world. If we do not wake up soon, well, all I can say is thank God I am not 25. I feel like saying: “Please, Scotty beam me up!”

The European Commission is just an Undemocratic Echo Chamber

COMMENT: Mr. Armstrong, Rome was my first WEC. It was truly an eye-opening event. Nigel Farage was correct – you are the alternative to Davos. I wanted to say after you explained the structure of the European Union and there the German people were denied any right to vote to join the euro, this coronation of the new grandmaster of the European Union Ursula von der Leyen was utterly undemocratic. We never have a right to vote for the head of Europe. Americans complain about Trump, but at least he was elected. Leyen was never elected by the people and this is very dangerous for this institution need never answer to the people.

HBM

RESPONSE: You are absolutely correct. They can hold impeachment proceedings against Trump but the head of the EU does not have to face the people in any election. This is a real problem. The European Commission is simply an echo chamber. They all see the world only through their own eyes and need not be held accountable to the people. Draghi imposed more than 10 years of insane interest rates that have wiped out pensions and destroyed the dreams of the elderly. Then they appoint the head of the IMF who was a lawyer and also does not stand for election EVER!!!