Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

January 4, 2016 | The Solution – Debt & Taxes

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

US Debt 2015 Int Expenditures

QUESTION: Mr. Armstrong; I was given your Solution DVD for Christmas by my son. I just began reading your blog for days. This has been an eye opening experience and it has even opened a dialog with my son. So you can teach old dogs new tricks. So my conclusion is that we can step ahead and that we may not overcome death, but taxes do seem to lead nowhere but more taxes. Do you think they will adopt your solution?

ANSWER: We have sold many SOLUTION DVDs on Amazon. It seems to be a great gift to get others to pay attention. Glad that worked with you. The more people who  watch this, and at least enter the debate, the more likely we are to see this solution take hold. But keep in mind that this solution would ONLY emerge after we crash and burn and the current system becomes unsustainable.

We are spending per month, even at these low interest rates, over $20 billion in interest per month on average. What happens when rates rise? The system starts to exponentially collapse. Our problem will be that they are increasing taxes and becoming abusively aggressive in tax enforcement; they are destroying exactly what made the world economy flourish. But all they care about is holding on to power so they will continue to screw society in their own self-interest.

german-debt-int

USIntAsPTotal

Looking at debt as a percentage of GDP, it does not really matter, for the GDP includes government expenditures and fails to realize that it is extracting a portion from society to fund itself which wastes productivity since government does not create anything. Therefore, if government is 100% of GDP as in communism, 33% to 50% in socialism, then the debt to GDP ratio becomes delusional. All countries are in trouble because they are operating on a system that is unsustainable.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

January 4th, 2016

Posted In: Armstrong Economics

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.