Can the Euro Survive a Sovereign Debt Crisis? – Martin Armstrong

Here Martin starts off with a forecast for the DOW. Before you read it, I will remind you of his prior forecast from August 2009, “Will the DOW Reach 30,000 by 2015?” This is where he said, “The main resistance area is 11,000 on the DOW. We need a monthly closing above that level to signal that the March 2009 low will hold. Otherwise, we should expect a retest of the lows or still even perhaps new lows going into 31.4 months down from the October 2007 high with a rally into the next target 2015.75 reaching 30,000+.” We did not receive that close, so keep his prior work in mind when reading his latest update – there are inconsistencies here.

In the rest of the paper Martin tries to explain MONEY. He fails miserably in my opinion, but does have some good points. He talks about velocity and he talks a little about DEBT, but he still fails to see how the central bankers are using debt for profit, power, and control. He is failing to see how debt saturation is responsible for killing velocity, and he clings to the idea that the gold standard is what caused the Great Depression and that therefore it’s not going to happen again – yet the world economies are in severe danger! LOL, well which is it?

Thus, we are getting closer to drivel in terms of forecasting the FUTURE which he also talks about as a focus of money. What he doesn’t mention about the future is how the central bankers have worked tirelessly to pull forward in time people’s FUTURE incomes! When income cannot support debt you have a mechanical problem in terms of velocity. He also fails to account for the accounting fraud and the leverage effects that derivatives are playing. M3 is negative, he does not talk about that.

So, I continue to post his work because there are valuable nuggets of information to consider – pieces of history and concepts about capital flow that are important. I think Bob Prechter puts together a more coherent overall thought process and ultimately what neither discusses is how the mechanics of DEBT affect both psychology and velocity. There is an underlying problem with the math that is at the root of it all.

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About Nathan A. Martin 121 Articles

Nathan A. Martin is President of Wingman Investments, LLC, and author of the book Flight to Financial Freedom – Fasten Your Finances. He sees people, both young and old, facing a new era where they are forced to be responsible for their own financial success or failure. His message is clear; become financially literate or be a victim of the external forces that are impacting everyone. Nathan possesses an undergraduate degree in Professional Aviation and Business as well as a Master’s degree in Aviation Management and Operations.

A former Air Force and retired airline pilot, his flying took him the world over participating in many operations including the invasion of Panama, and combat time during Operation Desert Storm. Experience has come over 26 years of flight - logging more than 12,000 flight hours both civilian and military, and as the owner of a corporate aviation management company whose focus was aircraft efficiency.

Influenced by his parents entrepreneurial activities, Nathan began his business and investment training early in life and has used that knowledge every step along the way... from business school to his own corporations and personal investments.

Visit: Nathan's Economic Edge

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