Martin A. Armstrong: Financial Armageddon, Is Western Civilization on the Verge of to the Equivalent of the Fall of Rome

VERYONE knows that something is wrong. What they do not realize is that this has ALWAYS been a global game.

What are the implications of a global economy? As bizarre as this may sound, everything in economic theory that supports government manipulation and intervention into the domestic economy rests upon theories that the economy is exclusively domestic and takes NOTHING into consideration affecting local events from an external source. Why is this important to understand? The Sovereign Debt Crisis began in Austria in 1931. Once one country goes, capital looks around and then attacks the next country perceived to be weak. Thus, the collapse need NOT be some local event. Hence, if the catalyst can be external, that means we may NOT be able to prevent the spill- over of GLOBAL CONTAGION. The bottom line – we are NOT in control of the domestic economy as economists and politicians presume. Government presumes this recession is no different than any other, perhaps a tad deeper. Thus, they sit back and presume we will “grow” our way out of it and hence there is absolutely no contingency plan for “what if” they are wrong!

The mainstream economic theories have long supported government manipulation and intervention to control the economy from a DEMAND-SIDE view. People turned SUPPLY-SIDE economics into dirty word under President Reagan. However, there is something more to SUPPLY-SIDE ECONOMICS that nobody seems to pay much attention. The Fed raises interest rates to AFFECT consumers and to discourage them from buying, while increasing the profit margins for banks. This is in THEORY managing “DEMAND” rather than curtailing lending by banks changing their ratios affecting “SUPPLY”. Everything the government does is designed to influence the PEOPLE/DEMAND by affecting them to indirectly

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