As you would expect the topic conversation this morning has been the German election and the re-election of Angela Merkel. The highlight was always going to be the percentages of the peripheral parties and that is what we saw. Markel’s CDU party was the big loser yet retained victory for the fourth time. This result […]
QUESTION: Dear Martin Armstrong About The post, “Is There a Way Out of This Financial Mess? “ In the second last paragraph you write, “Taxes have risen as deficits expand because government thinks inflation is the danger.” Link: Shouldn’t that be Deflation? Thank you for doing what you do. U ANSWER: No. I agree […]
QUESTION: Marty, I have followed your Global Market Watch and it is really amazing. I noticed on IPE gas it came up and warned it was about to breakout to the upside. You said this is purely a pattern recognition system. Are there patterns that precede events and this is what your model is picking […]
QUESTION: Hi Martin, I was wondering why a cold period would result in a commodity rise? Thank you in advance for your time. MG ANSWER: When the climate turns cold, that is when food shortages takes place. When the climate turns warm, that is when economic activity starts and empires expand. The cold period we […]
We need to open the door to the future but that is only possible by understanding the past. Paul Volcker back in 1979 in his Rediscovery of the Business Cycle said: “Not much more than a decade ago, in what now seems a more innocent age, the ‘New Economics’ had become orthodoxy. Its basic tenet, repeated […]
Once again Merkel fails to win the popular vote in Germany. Angela Merkel’s Christian Democratic Union lost 9% compared to the last elections. Nevertheless, her party has remained as the largest party in Germany’s parliament. Merkel’s CDU won 32.5% of the popular vote far less than any president in the United States history. That was a […]
Theresa May’ Florence speech is being seen by many as a betrayal of BREXIT. Instead of getting on with it, she has said that there will be a longer transition period even two years beyond 2019 into 2021. She said that Europeans will still be able to come and work in Britain into 2021 […]
The German government is desperate for money and what they are doing now is just unbelievable. Germany is looking to order companies to prepay VAT tax before they even collect it. Companies in Germany will now have to pay the VAT immediately to the government on any amount they have billed to a customer. This is […]
Perhaps this period will be looked back upon as the Draghi Deflation. After nearly 10 years of this failed policy, the European banking industry is contracting on every possible level. The merger of Commerzbank to Merge with French BNP is one possibility. Commerzbank is a takeover candidate or shotgun wedding candidate, for good reasons. Its shares have fallen […]
The German election takes place tomorrow, with Chancellor Angela Merkel the favorite to defend her position against Martin Schulz for a fourth term in power. The AfD will for the first time win seats Bundestag elections. The the union parties and the SPD are losing approval while Merkel’s party, CDU / CSU, polls at just 34%, […]
