Greek Debt Crisis--The Preview of What is to Come 5-6-10

8/9/2019 Greek Debt Crisis--The Preview of What is to Come 5-6-10

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Comments &InformatiorHMiease Send by Mail

Martin A. Armstrong#12518-050

FCI Fort Dix CampPO Box 2000Fort Dix, NJ 08640

A C K N O W L E D G E M E N T S

I would like to thank all the former employees, associates, sources, and contactsfo r their continued suppo rt and efforts to contribu te to the wri tings I have beenable to continue th rough their great efforts. I would also like, to thank thosewho h ave looked after not just myself , but my family, an d shown them su pport andkindness.

Everything at Princeton Economics that was our mission to gather information,an d bring together the most widely covered global economic perspective, has been 1

a effort that is now br-inging us to that fateful crossroads in history. There are

those who are trapped by the past and cannot see the dynamic"evolution that causeshistory to repeat, but like I lightning, never quite precisely the same way twice.In 1914, Britain reached its peak as the center of the global economy. It passedthat torch to the United States who by 1929 became the leading world economy andwa s also a CREDITOR nation just as China is today. There will be no 1930s styledepression, for the cards are nowhere near the same; Yet China will become theleading world economy by 2016, and then suffer its 1929. The West is doomed and itwill collapse from its own debt. We borrow with no intent of ever paying off thedebt, and somehow both Congress and the majority ignore this fact just as they hadignored th e problems in mortgages that violated common sense.

No matter what country you live in, it is the duty that falls upon the shouldersevery reader to do what you can to get reality to manifest. Feel free to send thisreport to every 'government, friend, and member of the press around the world. If wdo not get the debate started, we stand no chance of saving the future for ourselvesand our posterity. We can reach that next never in political-economic evolution onlythrough the hard work of everyone, For this reason, this is provided as a free ser

There is a NEW DATABASE that will be used for special updates pro vid ed exclusivelyto those wh o register. I want to thank you all once more for your support and foryour contribution to try to help society sur viv e the coming storm.

PLEASE REGISTER YOUR EMAIL ADDRESSFOR UPDATES & SPECIAL REPORTS WHEN CRITICAL

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Ctopyriqht, Martin A. Armstrong, all rights reserved

This Report may be. forwarded as you like without charge to individuals or gouernmsnts around t h eworld. It is p r o v i d e d as a Public Service at this time without cost because of the critical factsthat we now faced economically. The contents and designs of the systems are in fact copyrighted.A t a future d a t e , a new edition of the 1986 The Greatest Bull Markst In History mill be releaseda n d a new book will soon be published on the mo del itself - The Geometry of Time. It is vital t h a twe d o n o t forget this i s a world economy a n d t h e arrogance t h a t a n y nation c a n dictate t o t h e w o r ldis just i n s a n i t y . E v e r y nation effects all others no different than if one nation were to po-jr alli i i h hi i i li k d d l i i l d


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Greek Debt Crisis

The Preview

of What Is To ComeBy: Martin A. Armstrong

Former Chairman of Princeton Economics International, Ltd.and The Foundation For The Study of Cycles

REECE i s starting to produce the unsettling economic undertones thatI have been warning about for some time. The mortgage crisis was justth e t ip o f the iceberg. That set in motion a economic catastrophe thatis still ignored by governments, and i s quietly undermining everythingabout our economic future. The prospect of the West in general actuallysurv iv ing our lifetimes, is moving closer to nill. What people do no tge t is very simple. GREECE NEEDS TO BORROW FROM EVERYONE ELSE TO COVERIT BUDGET DEFICIT. Excuse me, but are we not doing the same thing when

we go ha t in hand and sell our deb t to China and Japan? What i s happening is thatcapi ta l i s starting to notice we a re in the final stages ready for a major default.There i s no nation that is going to survive. This whole nonsese that i f we borrowinstead of print to cover th e deficit, somehow this is less inflationary, it justbrain-dead. Neither we nor our children will survive this one. Our politicians areincapable to stopping th e train before we run ou t o f tracks. They will not listento reason, and thus, what you see in Greece today, i s coming everywhere be i t inE u r o p e o r t h e United States. Th e vast amount of capital in bonds will be wiped ou tjust as it was during the Great Depression.

Th e talking heads on TV are so far off !h e mark i t i s not even funny. The Dow Jonesndustrials fell nearly 1,000 points todaynd recovered for the close. Their explana-^ 7 .ion is that th e crisis in Greece is havingn effect on the dollar pushing i t higher

nd that means US exports will decline andhus corporate profits will decline. That isust nuts.

Th e biggest down days fo r the Dowwere the 1987 Crash fall of about 500points in one day. Then in 2008 therea b o u t a 750 point d r o p . No w today on Ma6th, 2010, we fell almost 1,000. And ththey want to attribute to corporate prore la ted to Europe? This is just so seriouf l a w e d , i t i s no t worth even disproving.


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This Greek Crisis is extremely serious.real capital at the big level knows the

about the d e b t crisis. Look at China.shortened their holdings of US d e b t and

d r o p p e d from first place to second. WHY?see what is coming down the road.

Unlike the government in t he West, whens invited to f l y t o Beijing in 1997 duehe Asian Currency Crisis, I was excited

the standpoint I had never been to t hecity of Beijing. While our main head-

ers was Hong Kong ; I did not travel tounist China. Being invited was shockingt blew my mind.

When you meet with people in the USr nmen t , they have no real experience.

you end up with are people hungry fore r , but that's it. When I met with thel Bank of China, I was expecting the

like having to lecture on complexto third grade. To my total surprise,

was like sitting down with a bunch of. Each person had to work on a realng desk in the West before landing ae Central Bank. They had everythinger wrote and studied it carefully. I was

mazed.

My experience in China explains a lot.is NOT made up with fancy degrees from

mics who never traded anything. These

people calling the shots that are savvy. They can see the handwriting on the

and a r e acting a p p r o p r i a t e l y.

Ou r mistake is that we have people inge who cannot even figure ou t how tola te hedging compared to proprietaryng or how to distinguish the two. They

in their bubble assuming they are theer of the world. Nevertheless, they arey sitting in a corner with one o f thoset ed hats clapping quite excitedly and

gh t ing in their own applause. Like Franka sang, don ' t send in the clowns, forare already here.

There will be no hearings or even theest hint of planning for what if suchebt crisis hits America. They delight inr own power, and cannot foresee their owne. To them, the idea o f a d e b t crisisjust not plausible. This is why we are

ng so dangerously for the cabdriver ismonkey and he's too busy pealing h i s ownna to pay attention to the road.

Th e reason why the Dow came back evenif there was no mistake on Procter Gamble,i s that we a r e i n a world of global capitalflow. Th e dollar rose an d gold shot up for;:what we a r e looking a t i s where to hide. Asth e d e b t crisis gets worse in Europe and infact spreads from Greece to Portugal, Spain,I ta ly and even Britain, capital will flee a tfirst to the United States. Even the Japaneseye n rose in value. This i s a reflection thatth e Euro i s i n d e e p trouble.

Germany can d ig d e e p to save Greece.But where will that end? Are w assumingthat will p r e v e n t a contagion to others inth e Euro? The Debt Crisis in the Great De-pression saw Europe default in 1931. Thisd r o v e t he US dollar to record highs. Thenwhen the dollar was at all time highs, capitalturned and ran from the dollar assuming theUS would be next. The US didn't default, bu ti t devalued the dollar thanks to FDR.

The critical issue here is that Greeceis a road map to what we will s ee h i t i n a l lmajor Western nations. The Europeans will betorn apart because of the Euro. This was amerge r of nations, not local provinces. Thus,th e critical issue is that the Euro will beunable to sustain itself built upon thisstructure. I wish I was out now instead ofnext year. I would submit a urgent plan torestructure and ge t former clients to plead

with the politicians to listen. Europe justcould be saved, but there i s no t much time.

We have to face the music. Politicianswill do nothing and will not even listen. Sothe worse things g e t , the dimmer our fu tureprospects will become. The IMF is imposingthe v e r y same solutions that created theGreat Depression. To cut expenditures in theface of this economic implosion in Greece,i s going to create massive civil unrest. Italso raises the prospects of revolution. We

are also seeing a bloodless coup developingin Turkey. We are watching crazy times inBritain. The political fabric is coming undoneal l over. In t he US, t he contest between theRepub l i cans and Democrats i s reaching pureha t r ed levels. This could spill o v e r intoviolence. It is also manifesting in a waragainst aliens. Th e world is falling apartbecause those in power will not listen.

Th e capital flows are moving the sameas they did in the 1930s. I t i s like a rerun.Unless we pay attention, we a r e simply doomed.


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Greek Debt Crisis--The Preview of What is to Come 5-6-10