Armstrong Economics
I have written about the 224 year cycle. These turning points have
marked major changes in political trends. Sometimes society survives
mostly intact because we blink such as the replacement of monarchy in
Britain or the overthrow of the king in Rome giving birth to the
Republic in 509 BC and the birth of Democracy in Athens the following
year in a sweeping contagion of political change.
If we add 72 years to the Mississippi and South Sea Bubbles of 1720,
we arrive at 1792 (1720 + 72), which was also the first Panic in the
United States real estate market. Now add 224 years to that and we come
to a Event Horizon in 2016. Now take gold which appears headed like a
magnet moving into two 8.6 year cycles back-to-back from the 1999
low (17.2 years), which also brings us to 2016. Add 26 years to the
Japan Bubble Top 1989.95 and we also arrive at 2016. Add 31.4 years to
1985, which was the birth of the G5 (Plaza Accord) organized attempt to
manipulate the world currency markets and we also arrive at 2016.
Our computer has been warning for decades that 2016 will be the
beginning of a rise in third party activity. To accomplish that, we
should see stagflation where assets rise with a strong dollar that
causes confusion at the Fed who will respond by raising interest rates
trying to stop a speculative bubble it fails to comprehend.
That asset bubble is driven by capital inflows both from Asia and
Europe. This will send the dollar higher, create massive dollar loan
losses, the Fed will be powerless and raise interest rates to stop a
speculative bubble that will merely draw in more capital thanks to
higher interest rates. The global economy is beyond the control of
central banks and their attempts to manipulate the business cycle have
placed them in direct harmony with it as the free market now manipulates
government.
2016 will be an Event Horizon. Government cannot let go of the reins
of power. That would be admitting defeat. What they will do in the next
two years, they are compelled to do out of their failed usurpation of
power to rule the economy under Marxist-Keynesianism. They cannot see
that being the biggest debtors, they are also the biggest borrowers.
They will raise rates trying to stop what they will think is speculation
and increase their own indebtedness.
They will hold a gun to their own head and yell do not move or they will pull the trigger. This is how REAL
inflation is created and empires, nations, and city states all collapse
only to be buried in a common grave. They will die by their own hand
for they are too stupid to understand they are compelled to commit
suicide.
