The Panic Cycles have been hitting going into the end of March/early April. This is generally showing shifts in trend near-term but more so that capital is really getting confused where to go.

Martin Armstrong often quotes Herbert Hoover about international currency movement at that time of the early 1900s into the Great Depression.

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Capital today is running hither searching for a safe haven and not finding one. Armstrong often says it was like re-arranging the deck chairs on the Titanic.

At that time, it was the technological unemployment due to the  Second Industrial Revolution that kicked in with factories that accelerated the demise of the cottage industries in Europe, which thus caused capital from Europe to run around seeking a safe haven. It mostly ended up in the USA.

http://armstrongeconomics.com/2013/12/01/gold-hedge-against-making-money/

Why The Only Solution is Technological

By the time you realize I am correct, you will be behind the others who realized earlier. Most people are still on the Titantic rearranging the deck chairs (see quote of Hoover). This is why the USA is actually booming until 2015.75, because capital is now fleeing into the USA from the emerging (peripheral) markets where the riots first manifest. But this ends up at the core reserve currency at the end game 2016ish. We can see how regulation appears to be a very loving and correct direction (listen to her charming speach). She is head of the IMF that is proposing 10% confiscation (termed "financial repression") of bank account balances across the EU to bring debt back to 2007 levels (i.e. not a solution and they will have to come back for more and more).

My opinion is that anything that does not circumvent law (which can be a legal activity, e.g. see the "Don't follow me, I'm the 5th car") is going to end up destroyed just like that dramatic upthread chart of the population of Rome falling from 1.3 million to 30,000 (because everyone fled the government). Apparently the-powers-that-be in the USA government are moving towards totalitarian allegiance analogous to recent events in the Ukraine. The entire premise of the Economic Devastation thread is that the Ineptacracy of socialism can't stop until it kills everything or until one of the following occurs:

• A new technology renders the government impotent.
• A Benevolent dictator like Caesar crosses the Rubicon to restore sanity

Note the people rising up as in Ukraine is not a solution, because they have no economically viable technology to remain decentralized. They will fall right back into the power vacuum of democracy with escalating chaos with Egypt as a recent example, because the fundamental problem is economic bankruptcy due to peaking socialism and debt (the people are not ready to embrace the decentralized Knowledge Age and the end of a public welfare and retirements system). Only a dictator or a technological solution to the power vacuum is a solution at this time (the contentionism has swung to anarchy because the time to make new social constitutions is not now for reasons stated).

And the benevolent dictator is also not sustainable, e.g. Rome continued to destroy itself after the vested interests of socialism killed Caesar. This is why only technology is responsible for sustainable gains in the lives of the people. Note CoinCube and I have postulated that in the theory of contentionism (a new term we invented) the top-down order (with socialism being one form) plays a role in the organization necessary to spawn new entropy, e.g. decentralizing technology.

Thus the only popular thing left standing will be the one that is impervious to government.

Gold and silver hoarding leads to a feudal Dark Age (which historically typically have long durations, e.g. 600 years), because the velocity-of-money (V in the Quantity Theory of Money) collapses. V is already down -50% since 2008. Capital is already running and disappearing into hoards. This will accelerate (as more frogs wake up from their blissful ignorance of what is going on and jump out of the boiling pot) if we don't have technological solution very soon.

And I have good news for you. I've had an additional epiphany recently that I have not written about publicly. I am becoming uber confident that Bitcoin is not the future of commerce, finance, and business. And become more confident I see (all the economic and algorithmic details of) the future technology in my mind's eye. Stay tuned, it won't be too long now. Commerce, finance, and business will never go back to centralized again. This changes the order that had existed since Mesopotamia.

So this isn't about crossing a crisis and coming back to the same notions of the way things are today. This is leaving the old ways behind forever.

P.S. Three prominent forecasters (with not such stellar prediction performance as Martin Armstrong who predicts the same, yet all with a correct model) are predicting "economic devastation" ahead. CoinCube do you think they read your thread and got that quoted term from you? (your thread in in the top 3 listings at Google for that quoted term)

P.S.S. W.r.t. to Bitcoin becoming government compliant, there is this problem that there isn't just one global government (yet), so its global fungibility will be pecked away by the discordant nation-state vultures. And as the recent Mt.Gox fiasco exemplifies, there isn't anything the government touches that doesn't get bloated and less efficient.

"An elephant is a mouse built to government specifications." - Lazarus Long.

I don't care about the price of Bitcoin, it's nothing more than a speculative investment now. I feel despair right now because I'm living within an irrational system where the only logical outcome is complete and total collapse. I feel like every attempt to secure wealth is an act of futility. We're all just ducking and covering before the bright burning flash. I fear the new world will be unrecognizable and hostile when compared against the one before it.

European countries are struggling with their high taxes, little entrepreneurship, and crazy socialism that is eating their economy from within like a cancer. The best thing they can hope for is a Russian invasion so they can pretend that was the cause of their economic failure.

About 50% of the French youth just want to leave France.

[snip]

France’s trade balance has declined from a surplus of 1 percent of gross domestic product in 1999 to a deficit of 3 percent last year with ZERO prospect of reversing.

Virtually every major government is following our models. Yes, I met with China directly and they had a printed copy of everything I ever wrote and read it.

I have spent untold amounts of money building this analysis back for thousands of years to see HOW everything functions over time and if it has ever changed.

[snip]

Politicians know nothing about what they are doing. Why did the S&L Crisis unfold? Because Democrats came in and altered the tax codes to get more money as always and impacted the write off in real estate creating a one way market – SELL. Then they blamed S&Ls when they were regulated and told to invest in real estate. Every single economic collapse is set in motion by GOVERNMENT. Never has any investigation ever turned up a single private cause.

The Plaza accord starting the G5 (now G20) to manipulate the dollar down by 40% in order to reduce the US trade deficit, created the 1987 Crash and sent capital rushing back to Japan that they did not understand creating the 1989 Bubble. Now Europe is trying to outlaw short-selling thinking that will stop the collapse. That will accelerate the fall.

Here is my letter to Rubin in 1997 when he was starting the same stupid stuff trying to talk the yen up for trade. After I sent this letter, he shut up. Someone has to remind these clowns about reality. It was Geithner who had to reply. Nonetheless, the 1997 Currency Crisis unfolded.

[snip]

We have spent vast amounts of money to collect databases from ancient times to date to see how capital flows dictate war and even the rise and fall of nations. Some have tried to mock the idea that there can be a cycle to war, yet they have never attempted any such analysis demonstrating their bias that precludes any advancement. Yet they persist in trying to criticize what they do not understand nor have ever attempted to test.