Sunday, May 15, 2016

The World Economy Is Melting Down
"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 .. 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 the 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."
- Martin Armstrong
link here to the reference

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