Kemal Kilicdaroglu, the Turkish opposition leader of the social democratic CHP, has sharply criticized the push by the Turkish government to remodel Turkey into a presidential system. The CHP chief expressed concern about the future of the country. He warned that the rising discontent may lead to a civil war. “What a presidential system that supposed to be, where one talks and Turkey is condemned to silence. The judge will then create according to his ideas deputies lists, from which emerges the legislature. Such a presidential system can not be implemented without the blood flows,” Kilicdaroglu warned.

Recep Tayyip Erdoğan is a Turkish politician who has been the president of Turkey since 2014. He previously served as the prime minister of Turkey from 2003 to 2014 and as the mayor of İstanbul from 1994 to 1998. He is a career politician and the rising concern has been that he is becoming more of a dictator. Changing the government is effectively a means to prevent elections that can replace government at will.

A new study by the Green Party in Germany places the USA at the top of the list of tax havens for foreign investors. They have highlighted the key states in their study. I have written about this before. The strong capital flows coming into the USA from overseas have been stunning, to say the least. Some 3,000 millionaires from Greece, 10,000 millionaires from France, 6,000 millionaires from Italy, 2,000 millionaires from Spain, and about 2,000 millionaires from Russia have all migrated to the USA.

This is confirming what we see on capital flows. The dollar haters are incapable of looking at international news, and they only focus on the Fed and the Treasury. They seem incapable of objective analysis or looking at the entire world.

Armstrong Speaking at HackMiami 2016 Tonight

QUESTION: Mr. Armstrong; You have indeed sparked my curiosity. With both the velocity of money and the trading volume declining since 1998, this seems to be a very dangerous position and your work is really eye opening. I read your Transactional Banking and it seems that this has changed everything for the worse. Your Big Bang seems to have been on target starting with 2015.75 as that was the peak in government and we have seen a further decline in economic growth. With trading volume bottoming in 2014 and your War Cycle turning up also in 2014, the picture is starting to come into focus. Your warning of a Phase Transition building is also starting to make sense for the volume is at the lows not the highs and it appears you are forecasting a big rush out of government debt into private. I think I am beginning to see the future and this looks crazy indeed. Am I on the right track?

Thank you so much for the most thought provoking blog on the web.

JD

ANSWER: Yes, you are on the right track. We are caught in a riptide of events that we cannot escape from. The bigger picture connects all these models together. Our political models and war cycle, as well as the transactional banking evolution and sovereign debt crisis, are lining up to reshape the future in a way I had hoped would be wrong. We held the Solution Conference to show the way out. It gives me no pleasure in bringing all of this together. I cannot simply reduce this to a single cause and effect. This is not even about one country; it is primitive to talk about the dollar and how it will crash and burn without any comprehension of the real trend in motion on a global scale. Politicians are doing whatever they can to make this insanity worse. Merkel is allowing a cultural invasion of Europe and she will not stop. The G20 as of January 1, 2017, will track every dime globally and share info on everyone for taxes.

From 1983 onward, the capital flows have shifted in preparation for this private wave. This is what made the dollar reach record highs in 1985 with the British pound dropping to par. Of course, this also made our Capital Flow Models world famous, and now even China has publicly stated they use capital flow analysis to manage monetary policy. What made the world economy recover following World War II was that USA ended up with 76% of the world gold reserves, which made the dollar the reserve currency. Americans invested outside of the USA and restarted the world economy. Now we have FATCA and Americans cannot even have a bank account outside the USA, no less start a business. Capital is contracting into the USA. Now the G20 will make that contract even more. With tax havens destroyed by the IMF’s threats to unplug them from the SWIFT system to stop money going in or out of their countries, the only place is the United States for Americans, by law, and the rest of the world once again as was the case for World War I and II.

This is why we will be putting this all together at this year’s World Economic Conference. It is an amazing picture, no doubt. Whatever could go wrong is going wrong. The vast majority of people will lose everything — that is just the way it goes. The model is designed to give us the CONFIRMING points (e.g. if this happens, then this will occur). So when you approach this globally, only then will the trend make your eyes pop open. It appears 2017 is opening the door. Nobody has ever lived through such an event, so I do not understand how it is even possible to do this from an “opinion” perspective. To survive, we need a comprehensive global model you can see.

The TTIP proposal is bought and paid for by the banks. Pick up the rug and you will always find the dirt. The USA has been fining European banks for vast amounts of money. The New York banks, especially Goldman Sachs, is shaking like a leaf at the thought that they could be hauled into European courts to pay for the collapse of Greek debt (for starters). The main stumbling block with TTIP is how, at the request of the bankers, the agreement prohibits any foreign country from suing New York banks anywhere outside of New York City — where they own all the judges today just as the mafia did during the Prohibition days.

Back in 1999, ex-Goldman Sachs U.S. Treasury Secretary Robert Rubin said that crafting a deal to allow China into the World Trade Organization (WTO) was “eminently doable.” Yes, it was Robert Rubin who orchestrated the repeal of Glass-Steagall, and few people realize that he also opened the door so that Goldman Sachs could sell derivative time bombs outside the USA. Rubin managed to stuff the financial services portion into the World Trade Organization Agreement and placed the world at Goldman Sachs’ doorstep.

“This deal covers 95% of the global financial services market as measured in revenue. With this deal, 102 WTO members now have market-opening commitments in the financial services sector, including 70 improved offers in this round of negotiations. The commitments before us now encompass $17.8 trillion in global securities assets; $38 trillion in global (domestic) bank lending; and $22.2 trillion in worldwide insurance premiums. In insurance alone, US companies now have more than $200 billion in foreign premiums.” (Statement by Secretary Rubin and Ambassador Barshefsky Regarding the Successful Conclusion of the WTO Financial Services Negotiations 12/13/1997)

TTIP is now all about protecting the banks from lawsuits because they blew up the world and seriously damaged the global economy. Under Ronald Reagan, the annual GDP growth was 3.5%. Obama will pray for 1.5%. Trading volume in the S&P 500 and the velocity of money crashed and burned after Rubin connived to repeal Glass-Steagall and gave birth to transactional banking. TTIP is by no means a real trade deal. It is one-sided and intended primarily to protect the New York bankers.

QUESTION: Everyone in the gold industry says you are wrong. The stock market will crash by 90% and gold will soar. Will you address that scenario just once?

ANSWER: I have answered this frivolous question countless times. This is the most bearish rally in stocks ever. That is why the stock market has kept rising. The shorts always have to buy back. Just look at the big hedge funds. Their performance has declined markedly because they have taken that typical view. I displayed how the velocity of money peaked in 1998 and has been in a bear market ever since. Naturally, people believe what they want to believe and ignore anything that shows them to be wrong. Well, now look that the annual accumulative trading volume in the S&P 500; it too peaked in 1996. Volume finally bottomed in 2014 and is, at last, edging up. We expected this to turn upward in 2015 as this was also 86 years from 1929 (8.6 * 10).

Even the speculative bets on the direction of currencies have also dropped to the lowest in years, while average daily trading among dealers in U.S. Treasuries is close to a seven-year low.

I’m sorry, but please explain to me how the stock market will fall to 10 cents on the dollar when there is no massive retail speculation? This is by no means 1929 with people jumping out of windows. You want to believe that, so no matter what evidence I show you, you will say I am wrong and ignore me.
There is something far more sinister at foot. Just keep listening to that nonsense since it makes you feel better. The rest of us will be reviewing the world economy to get a glimpse at what the heck is going on here that has confounded all the theories devised by classic thinkers.