Kerry Lutz's--Financial Survival Network

The esteemed financial expert Martin Armstrong joined us today. He pointed out that his computer forecasted Panic cycles are showing events happening in 2022 and 2024. Martin discusses the beginnings of the pandemic and Build Back Better slogan that happened a year before anyone even heard of Covid-19. On the topic of cryptos, he believes that cryptos have been propagated by the government to get people familiar with and used to digital currencies an effort to eliminate paper currency. Confiscation is coming. Martin doesn’t believe that any country will allow a competing currency to exist. Martin’s bitcoin report was shutdown in Europe for the merely mentioning it. All credit card sales were shut down. Gold and silver will repeat the cycle when Russia invaded Afghanistan and hit its previous high. Will the Chinese then march into Taiwan. This appears to be shaping up for May. Gold is now being fully tracked by the government. It’s not being done with silver. Martin questions, "If they’re tracking gold this carefully, will they really allow Bitcoin to persist." As he has stated many times, "The rule of law is dead." No market implosion coming to the US. Target of Dow 35k is close to being reached. And then Dow 65k. The impending war in Europe and Asia will lead to capital flow to the US and avoid a correction here. Just as in WWI and WWII the capital will flow here. It will also lead to China marching into Taiwan. Major US Cities are in a death spiral. Migration out of cities has become a virtual human wave. Martin forecast this trend many years ago. He always thought it would be due to taxes and economics, not personal safety and the inability of these failing cities and states to keep things going. As Martin says, "In a normal business, if business is bad, you cut prices to boost sales. With government if business is bad they raise prices/taxes and thus drive business down further." That’s why the US Financial Capital is shifting from New York to Miami. Now that people can work from anywhere, they will and in the process avoid high taxes and high tax states. Inflation is finally starting to catch up. The key is that when people start seeing that it’s cheaper to buy today than tomorrow, then prices spike. Signs abound. Construction costs are escalating, commodities are rising and shortages are starting to take place. The shortages are emerging from supply chain breakdowns as well as the inability to get goods to market, as witnessed by plowing under crops. The trend is for shortages to accelerate. Things are definitely getting interesting!

The stock market’s capitalization is 200% of GDP. Margin debt has never been higher. Is the party over? If you listen to the Fed they claim that inflation is transitory. YOY inflation was 2.6%. Core inflation was under 2%. The Fed doesn’t even look at consumer price inflation. Everything is a substitute for everything else. The Fed’s mandate is stable prices, haha. Next month’s CPI will be over 3%. Exploding earnings and growth in GDP this quarter and next and then we roll over. Whatever happened to zero inflation targets. $7 trillion dollars of new money printed and keeping interest rates below 1%, what could possibly go wrong. Market and economic chaos is inevitable. The middle class is being hollowed out and thus the country with it. Bubbles getting ready pop all over. It only benefits the wealthy and those who work from their homes. Job losses aren’t being reversed. It’s been the worst of times for the middle class, thus engendering further chaos. It’s a volatile and incendiary. 

Is the pandemic going to end this summer. Bad Vaxx news, J&J vaccine causing blod clots in 6 women. It’s temporarily suspended. Vax skeptics are jumping all over it. Why suspend the vaccine for 6 out of 17 million people getting ill. China vaccine not working well. If the virus is running rampant, can growth and inflation continue. It’s going to drop off in 2021 and 2022. You’ve gotta invest somewhere. 

Michael is more concerned about the government’s reaction to the virus than the virus itself.