by Martin Armstrong, Armstrong Economics:
QUESTION: Mr. Armstrong, I wanted to thank you for the conference in Berlin. It was my first time attending. I cannot wait for the DVD. You gave so much information, I think I will have to watch the DVD several times. I can see the debt crisis here in Europe and I can see the move to get cash into dollars. Has debt always been the great destroyer of civilization?
ANSWER: The sovereign debt crisis is our nemesis — the inescapable agent of someone’s or something’s downfall. Before governments borrowed, they debased their currency. Germany’s seriously misunderstood hyperinflation had this same result. The revolutionary government in Germany could not borrow due to the 1918 Communist Revolution and the default on all outstanding debt from the previous government. Hence, all they had was the printing press.
That is SIGNIFICANTLY different from today. As long as “confidence” prevails, they can sell debt and hyperinflation cannot occur. Hyperinflation is not caused by simply printing more money from one year to the next. That is a simpleton’s view of a more complex issue.
We are nowhere close to hyperinflation. We are trapped within a sovereign debt crisis where the world governments continue to issue debt that is bought by insane people, and then they try to service that debt by raising taxes. This shrinks the private sector as governments act like black holes sucking in all the energy and light within the economy, destroying civilization and risking a Dark Age.
This time, there will be no peaceful hand-over of power, so I would not count on the Pax-Nemesis prevailing. After the assassination of Caligula on January 24, 41 AD, the Praetorian Guards needed an emperor to retain their jobs so they took Claudius to the Praetorian camp and put him under their protection. The goddess Pax-Nemesisrepresents subdued vengeance or the amnesty in prosecuting those who had participated in the assassination of his nephew. The Senate quickly met and began debating a change of government, yet it quickly devolved into an argument over which of them would be the new Princeps. When the Senate heard of the Praetorians’ claim, they demanded that Claudius be delivered to them for approval. Perhaps King Herod of Israel, Claudius’ boyhood friend, may have counseled Claudius. Whatever the source of the counsel, be it Herod or the guards, Claudius rightly refused as he sensed the danger.
Please follow SGT Report on Twitter & help share the message.