Government

Martin Armstrong: ‘The United States Will Most Likely Break Apart By 2036’

Back on January 27, 2016, I asked:

Do any readers follow Martin Armstrong, economist at Armstrong Economics (and former chairman of Princeton Economics International Ltd.) and the creator of the Economic Confidence Model? While the jury’s still out on him (for me), I do read his blog almost daily…

I still “read his blog almost daily.” And something Armstrong wrote last week really caught my attention. From “The Termination of Cash Approaching Rapidly”:

I am becoming deeply concerned that the United States is headed into its version of a communist revolution under the label “progressive” and the bankers, who Larry Summers has always supported, will be used as the scapegoat for Wall Street and the “rich” who have to be stripped of their liberty and their money for the “good of the people” as they always say. The United States does not look like it will be a country we can recognize by 2032 if we can even make it past 2024. The United States will most likely break apart by 2036. There are separatist movements rising in many areas from Vermont and Texas to California, who reasons they voted for Hillary not Trump justifying their departure.

The entire purpose of eliminating cash is to strip us of our assets, liberty, and to prevent bank runs. The youth, who have been brainwashed by Bernie Sanders and people like Elizabeth Warren, will turn against the older generation and enslave them if at all possible. This threatens our future with outright civil war. They will not be satisfied until they destroy the freedom of their opposition. It is starting to appear that 2036 is our date with destiny

(Editor’s note: Bold added for emphasis)

America kaput by 2036- if not earlier?

That’s a pretty disturbing thought. And reading that blog post reminded me of an article I pulled up almost eight years ago on The Wall Street Journal website (my how time flies) by Andrew Osborn, who discussed a similar prediction made by Russian academic Igor Panarin, a former KGB analyst and Dean of the Russian Foreign Ministry’s school for future diplomats (then and now). On December 29, 2008, Osborn wrote:

Mr. Panarin posits, in brief, that mass immigration, economic decline, and moral degradation will trigger a civil war next fall and the collapse of the dollar. Around the end of June 2010, or early July, he says, the U.S. will break into six pieces — with Alaska reverting to Russian control…

California will form the nucleus of what he calls “The Californian Republic,” and will be part of China or under Chinese influence. Texas will be the heart of “The Texas Republic,” a cluster of states that will go to Mexico or fall under Mexican influence. Washington, D.C., and New York will be part of an “Atlantic America” that may join the European Union. Canada will grab a group of Northern states Prof. Panarin calls “The Central North American Republic.” Hawaii, he suggests, will be a protectorate of Japan or China, and Alaska will be subsumed into Russia…

(Editor’s note: Bold added for emphasis)

Obviously 2010 came and went… and the good ol’ U.S. of A. remains intact.

But I can’t help but wonder if Panarin’s prediction might not be in the same category as an infamous forecast made by the American financial analyst Meredith Whitney about a wave of municipal defaults. I wrote back on December 22, 2010:

Last night Whitney, now CEO and founder of Meredith Whitney Advisory Group, appeared on CNBC and warned that a wave of defaults by state and local governments in the coming months will cause a sell-off in the municipal bond market, hurting U.S. economic growth and stocks- and causing social unrest

I blogged a year-and-a-half later:

Whitney will eventually be vindicated about the wave of defaults (her timing was just off)…

“Her timing was just off”

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

Sources:

Armstrong, Martin. “The Termination of Cash Approaching Rapidly.” Armstrong Economics Blog. 24 Nov. 2016. (https://www.armstrongeconomics.com/world-news/taxes/the-termination-of-cash-approaching-rapidly-the/). 1 Dec. 2016.

Osborn, Andrew. “As if Things Weren’t Bad Enough, Russian Professor Predicts End of U.S.” The Wall Street Journal. 29 Dec. 2008. (http://www.wsj.com/articles/SB123051100709638419). 1 Dec. 2016.

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Peter Schiff Predicts Gold ‘Going A Lot Higher’ As Trump Fed Draws From ‘Well Of QE’

In a post yesterday about Swiss-born investment advisor/money manager Marc Faber, I noted that the the publisher of the monthly investment newsletter The Gloom Boom & Doom Report reportedly told atendees at a recent investment conference that the U.S. economy “is not doing well” and that he predicted U.S. President-elect Donald Trump will be a “Keynesian” and money printer. This reminded me of an appearance last week by fellow “crash prophet” Peter Schiff on the CNBC TV program Futures Now in which the economist, financial broker/dealer, and author talked about a Federal Reserve under a Trump administration. Schiff warned viewers:

I think they’re going to go back to the same monetary stimulus that failed and is the reason that Donald Trump was elected. A lot of people believe that simply electing Donald Trump solves all the economic problems that are the reason that he was elected. But the problems haven’t been solved and they can’t be solved unless we’re willing to bite the bullet and allow a painful economic restructuring that is going to be necessary to pave the way for real economic growth. But I still think we’re going to go back to the “well of QE.” And that we’re going to get more stimulus. We’re going to get another quantitative easing. And I still believe that the Fed might reverse course and start cutting rates again, even as inflation accelerates…


“Huge bond bear market just beginning”
CNBC Video

The CEO of Euro Pacific Capital mentioned earlier in the segment that “inflation is accelerating at a much faster pace than the Fed is nudging up interest rates.” Within such an environment, gold could shine. Schiff added:

Gold benefits from inflation. The only way that you might undermine gold with inflation is if you have a Paul Volcker-style reaction from the Fed where they agressively raise interest rates to try and restrain it. And that’s not even conceivable that we could do that due to the enormity of the debt that we have. So if people understand that yes, we’re going to get more inflation, but there’s nothing the Fed can do about it but make the problem worse, then people see that there’s a lot of reasons to be buying gold. And certainly 1,200 has acted as pretty solid support. So the fact that we pulled back from 1,320-1,330 on the eve of the Trump victory back down to this support I think provides a good buying opportunity for people to buy more gold. Because I do think it’s going a lot higher during the Trump presidency.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

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Marc Faber Bullish On Gold, Gold Shares, Platinum

Swiss-born investment advisor/money manager Marc Faber was on the CNBC TV show Trading Nation yesterday. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report talked about potential investment opportunities, including precious metals. Dr. Faber told viewers:

As I said last year, precisely a year ago, when Barrick was around $6 and Newmont Mining around $17, I think that gold shares, after the recent correction, are still attractive. Don’t forget, gold has been talked down a lot recently, but the fact is when you say that gold is a currency, what has been the strongest currency on Earth this year? It’s up 11 percent in dollars, 32 percent in British pounds, and in Euros 14 percent. So I don’t think it’s been doing all that badly, even following the recent correction…

(Editor’s note: Bold added for emphasis)

After saying the U.S. economy “is not doing well” and predicting President-elect Trump will be a “Keynesian” and money printer, Faber added:

I would buy gold and platinum– they are depressed.

(Editor’s note: Bold added for emphasis)


“Marc Faber on stocks, bonds, gold and more”
CNBC Video

Regular readers of Survival And Prosperity know that Marc Faber has been a long-time gold bull. Covering the V International Central and Eastern European Investment Conference in Warsaw, Poland, last Friday (where Faber was the keynote speaker), the Hungarian financial news website Portfolio reported:

Faber is optimistic for gold, arguing it should form a 20% component of a good investment portfolio. As a reserve, he prefers holding bullion to purchasing indirectly via ETFs, but maintains that exchange-traded gold funds are not a bad thing either…

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

Source:

“Marc Faber: Current era of negative rates ‘a historic first.'” Portfolio.hu. 25 Nov. 2016. (http://www.portfolio.hu/en/economy/marc_faber_current_era_of_negative_rates_a_historic
_first.32147.html). 30 Nov. 2016.

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Illinois Gun Dealers Under Legislative Attack

Here’s the latest anti-gun “end-around” being attempted in the state of Illinois. From the National Rifle Association’s Institute for Legislative Action website Monday:

Last week, state Representative Kathleen Willis filed House Amendment 8 to House Bill 1016, another anti-gun amendment that seeks to over-regulate gun dealers and impose restrictions that could potentially force gun stores to close. House Bill 1016 has been sent to the House floor and could be considered at any time. Your NRA-ILA continues to outright oppose House Bill 1016 and any anti-gun amendment proposed. Please continue to contact your state Representative and politely urge them to OPPOSE House Bill 1016.

The federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) licenses and closely monitors all FFLs and strictly enforces any violations of federal law. HB 1016 goes far beyond federal law in its mandatory regulations and red tape imposed at the state level that it would almost assuredly force the closure of most firearm dealers, and prevent prospective owners from opening new ones. This legislation seeks to create so many department divisions, anti-gun 5-member licensing boards, and licensing fees that dealers would be forced to close through oversight by anti-gun appointees or would be priced out of business…

The NRA-ILA offers opponents of HB 1016 a way to take action via their website here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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FBI Issues Terrorism Alert Mentioning Washington D.C., Northern Virginia

First it was the Department of Homeland Security issuing a terrorism warning for the upcoming holiday season. Now, the Federal Bureau of Investigation is getting in on the act. From the CBS News website last night:

The FBI is alerting law enforcement officials across the country that there is concern about a potential terrorist attack around Thanksgiving or the Inauguration, CBS News’ Jeff Pegues reports.

The alert specifically warned of homegrown terrorists and cited shopping malls, special events and other crowded venues as possible targets. Specific locations in Washington, D.C. and northern Virginia are described as “target-rich” zones. Potential tactics that could be used include guns, IEDs or drones equipped with IEDs…

(Editor’s note: Bold added for emphasis)

This FBI alert seems somewhat more detailed than other terrorist threat warnings I’ve seen in recent times.

More information about this particular alert can be found over on the CBS News site here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Saturday, November 19th, 2016 Firearms, Government, Public Safety, Terrorism No Comments

Chicago Shoots Past 700 Homicides For The Year

After spending the day at the family’s place in Wisconsin getting ready for “Old Man Winter,” I arrived home to learn that homicides in Chicago have shot past 700 for the year. Here’s what HeyJackass.com, “Illustrating Chicago Values,” is showing as I type this Friday evening:

Year to Date
Shot & Killed: 630
Shot & Wounded: 3296
Total Shot: 3926
Total Homicides: 703

ABC 7 Chicago is reporting over on their website:

The city surpassed the 700 homicide total for the first time since 1998.

A total 0f 704 homicides were reported that year, a number likely to be surpassed in 2016 as the city appears on pace for 750 homicidal deaths. That includes 10 people who were shot or otherwise assaulted in prior years, but died in 2016.

Last year the city recorded 473 homicides for the entire year…

(Editor’s note: Bold added for emphasis)

“704 homicides… a number likely to be surpassed in 2016”

How about “a number likely to be surpassed this weekend“?

A comment on the popular Chicago police blog Second City Cop surmised liberals will blame “climate change” for this carnage.

City Hall included among the blamethrowers?

Calls for more gun “control” and outside agency intervention in three, two, one…

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

“Chicago Sees 700 Homicides In A Year For First Time Since 1998.” ABC 7 Chicago. 18 Nov. 2016. (http://abc7chicago.com/news/chicago-sees-700-homicides-in-a-year-for-first-time-since-1998/1614560/). 18 Nov. 2016.

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Friday, November 18th, 2016 Crime, Government, Public Safety, Self-Defense, Weather No Comments

DHS Issues Holiday Terrorism Warning

The holidays are fast approaching. So it was only a matter of time before a terrorism warning was issued for the American public. Lee Ferran, Aaron Katersky, Josh Margolin, and Brian Ross reported on the ABC News website Tuesday:

U.S. officials issued a somber warning today that the coming holiday season could mean “opportunities for violent extremists” to strike, especially as terrorist groups are squeezed abroad.

“Though we know of no intelligence that is both specific and credible at this time of a plot by terrorist organizations to attack the homeland, the reality is terrorist-inspired individuals have conducted, or attempted to conduct, attacks in the United States,” reads a bulletin posted online today by the Department of Homeland Security.

The warning says terrorists could attempt to target “public events and places where people congregate.”

The bulletin came days after an ISIS magazine called on the terrorist group’s followers to use vehicles to attack popular outdoor attractions, like a New York parade…

(Editor’s note: Bold added for emphasis)

Personally, I believe a terrorist attack on U.S. soil (or that belonging to our allies) during the upcoming holiday season is a real possibility. Considering how deadly that truck proved to be in Nice, France, this past summer, another assault in this manner would no doubt be considered by the bad guys.

Headed out to “public events and places where people congregate”? Maintaining a high degree of situational awareness (head on a swivel) is probably a good idea.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Ferran, Lee, Katersky, Aaron, Margolin, Josh and Ross, Brian. “Holiday Season Could Be Target for Terrorists, DHS Says.” ABC News. 15 Nov. 2016. (http://abcnews.go.com/US/holiday-season-target-terrorists-dhs/story?id=43559766). 17 Nov. 2016.

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Taxing Time For Chicagoans

The elections are over. So it’s time for “higher/new fees, fines, and taxes,” as I routinely point out in Survival And Prosperity.

Chicagoans found out yesterday what kind of impact City Hall’s latest “revenue enhancements” will have on their personal finances. Julian Crews, Dan Ponce, and Dana Rebik reported on the WGN-TV Chicago website Wednesday:

The Chicago City Council voted unanimously to pass Mayor Rahm Emanuel’s $8.2 billion 2017 budget Wednesday…

For taxpayers, the hardest pill to swallow in the budget may be a nearly 30 percent increase on water and sewer bills. The hike will be phased in over four years, and is expected to raise nearly $240 million to help shore up the municipal workers pension fund.

But the big impact to taxpayers will come in the form of a tiered increase in property taxes to fund police and fire pensions approved by the Council last year.

Other new fees include:

7-cent fee for all plastic AND paper bags to encourage people to bring reusable bags to the grocery store.
3.5 percent amusement tax for tickets to concerts, sporting events and musicals…

(Editor’s note: Bold added for emphasis)

Crews, Ponce, and Rebik also pointed out coming higher fees with parking rates downtown, around Wrigleyville, and at both Midway and O’Hare airports. More parking meters will be popping up in the Loop and in city neighborhoods as well.

Anyone who’s been paying attention might have observed a disturbing trend lately with Chicago’s fees/fines/hikes. John Byrne and Hal Dardick reported on the Chicago Tribune website this morning:

The average family will pay nearly $1,700 more a year to the city and Chicago Public Schools than they did before the mayor took office in 2011 once all of Emanuel’s tax and fee increases take full effect. There’s been a series of property tax hikes. There was a water and sewer rate increase, plus a new tax on top of that. Not to mention a new garbage hauling fee, 911 phone tax hike, vehicle sticker fee increase and a tax on cable television…

(Editor’s note: Bold added for emphasis)

“$1,700 more a year… than they did before the mayor office in 2011”

Ouch. Byrne and Dardick added:

Even with all of that, taxpayers may be asked for more money in the coming years. Emanuel’s plans for shoring up long-neglected city worker pension funds will require the city to come up with hundreds of millions of dollars more by the early to mid-2020s

(Editor’s note: Bold added for emphasis)

In the meantime, the reporters calculated the “typical” Chicago homeowner ($250,000 residence) can expect to see their tax bill rise another $400 in 2017.

As a former resident of Chicago, I can understand why people would want to live there. That being said, Chicagoans have been required to “pay to play.” And that trend might not be their friend if that Tribune analysis plays out.

For those choosing to remain in the “City By The Lake,” it might be wise for these individuals to take a good, hard look at their finances to figure out if they can keep residing there should the cost of living continue its upwards trajectory.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Sources:

Crews, Julian, Ponce, Dan, and Rebik, Dana. “City Council unanimously passes $8.2 billion budget, including new taxes and fees.” WGN-TV Chicago. 16 Nov. 2016. (http://wgntv.com/2016/11/16/chicago-city-council-expected-to-pass-mayors-2017-budget-today/). 17 Nov. 2016.

Byrne, John and Dardick, Hal. “The tab on Emanuel’s series of tax hikes: $1,700 a year for the average family.” Chicago Tribune. 17 Nov. 2016. (http://www.chicagotribune.com/news/local/politics/ct-rahm-emanuel-chicago-city-council-budget-vote-met-1117-20161116-story.html). 17 Nov. 2016.

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Signs Of The Time, Part 114

Anyone use the popular online social media/networking service known as Facebook?

I do, but I wouldn’t call myself a “super-user.” Nor do I have a lot of “friends” either.

But among the “friends” I do have, a few have been authoring/disseminating quite a bit of material on Facebook related to last week’s U.S. presidential election.

That’s cool. If they want to use the free service in that manner, then that’s their prerogative.

However, such posts aren’t exactly sitting well with other Facebook users. From the Fox News website this past weekend:

In the wake of the 2016 election, some Facebook users are purging friends with whom they disagree politically.

On “Fox & Friends Weekend” this morning, Kurt “The Cyber Guy” Knutsson reported that the U.S. election was responsible for 10 billion likes, posts, comments and shares on the social medium from March 23, 2015, through November 1, 2016, according to Facebook.

Additionally, Knutsson reported that on Election Day alone, 115.3 million people on Facebook worldwide generated 716.3 million likes, posts, comments and shares related to the election.

He said that Facebook, however, doesn’t have any data on how many unfriendings there were during the 2016 presidential election or on Election Day, but it does appear that there is an “unfriending frenzy” occurring

(Editor’s note: Bold added for emphasis)

For more information about this “unfriending frenzy,” head on over to the Fox News website here.


The Dandy Warhols, We Used To Be Friends (2003)
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Tuesday, November 15th, 2016 Government, Signs Of The Time No Comments

Chicago Water Treatment Plant Breach Worrisome?

Back on August 16, 2014, I wrote on Survival And Prosperity:

Chicago residents and those from surrounding suburbs who get their tap water from the city really should consider setting aside an emergency supply of water if they haven’t done so already…

This was mentioned in light of a Chicago Sun-Times piece about security concerns at Chicago’s James W. Jardine Water Purification Plant- the largest water treatment plant in the world.

Water plant security in the “Windy City” was in the news again right before the weekend. Brad Edwards reported on the CBS 2 Chicago website on November 10:

Clean drinking water is essential for our health, so when a man with a foreign passport is discovered trespassing in a protected Chicago water plant, the FBI and Homeland security are alerted.

Authorities say Shahroon Augustine entered the Eugene Sawyer Water Purification Plant with a duffle bag, containing a passport from Pakistan.

He was charged with trespassing, then vanished…

(Editor’s note: Bold added for emphasis)

Was this simply a case of criminal trespassing, or something more sinister? Regardless, unauthorized parties having access to a portion of Chicagoland’s supply of drinking water isn’t a good thing.

Once again, those potentially-affected really should consider socking away an emergency supply of H20 if they haven’t done so already. And it’s something that can be done relatively inexpensively.

You can read the entire article on the CBS 2 Chicago site here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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