Armstrong writes about misleading China trade data. He says importers are bringing in cash in a carry trade. I had also read that exporters offshore and hide profits in Singapore and Hong Kong, so this understates the trade imbalances and makes it look like Chinese factories are not profitable.

Essentially the elite of China are extracting all some or much (not sure which) of the wealth from the people. And they are exacerbating the debt bubble and misallocation of capital to the wrong activities and oversupply. This is not a sustainable domestic doom, but rather a bubble.

This is why I have written that China must go through economic implosion chaos and an overthrow of the elite before it can really grow again.

What the non-western countries have in their favor is very low government share of GDP because the social welfare institution is not as perverse. But what they have in their disfavor is they have an elite top-down structure that is standing in the way of bottom-up economic growth. So the developing world must also go through the chaos/riots of the uptick in the war cycle that Armstrong's model predicts.

The developing world has to less to fall because they are already lower economically with less social promises. Yet the fall will still be very painful since they have so many at the poverty line already.

---

Martin Armstrong's position has been there is no proof of a global conspiracy, and he doesn't speculate. That is an acceptable position, except that he continues to assert there is no global conspiracy, which is thus speculation, since he doesn't have any proof to support that assertion. So I urge him to stop being disingenuous and appearing to be a tool of the elite towards a one world currency which he has proposed as a solution to this crisis.

As for proof of a global conspiracy, we got a big chunk of proof from Aaron Russo as follows.

https://bitcointalk.org/index.php?topic=279650.msg3497509#msg3497509


Also it is rather incredulous to discount the fact that all the transition to AML, KYC which is enabling this hunt for capital which Martin admits and writes about, was engineered starting with 9/11. And it pretty difficult to discount that 9/11 was not done by 16 guys on camels and was rather engineered by ... (much circumstantial evidence points to Dick Cheney as key cog in the wheel). They evidence that the buildings were not downed with airplanes is overwhelming, even 1000s of architects and engineers have signed a petition saying the government's story is implausible. And this terrorism false flag farce is being used to keep the world locked into a non-default increasing debt trajectory with a hunt for all capital. Precisely what is necessary to drive the world into a severe economic contagion which can usher in a one-world currency type result after destroying the nation-state concept.

I am not sure there is a global conspiracy. And it doesn't really affect my actions nor goals any way. So I don't really care. But I am skeptical of a guy (Armstrong) who says speaks against decentralized cryptocurrencies, speaks for a one-world currency solution (with national or regional currencies floating relative to it), and who speaks against the possibility of the global conspiracy without any proof.

Just because Armstrong is aware of manipulations at the lower-level echelon of the NY bankers club is not proof that the higher echelon doesn't exist. Logic 101 really.

---

Update: Armstrong writes today about the $2.3 trillion missing from Pentagon accounting and paperwork was conveniently destroyed at the Pentagon on 9/11.