{"id":16201,"date":"2016-01-08T11:49:44","date_gmt":"2016-01-08T16:49:44","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16201"},"modified":"2016-01-08T11:49:44","modified_gmt":"2016-01-08T16:49:44","slug":"looking-for-sanity-in-an-insane-world","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16201","title":{"rendered":"Looking for Sanity in an Insane World"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.armstrongeconomics.com\/archives\/41602\" target=\"_blank\">Looking for Sanity in an Insane World<\/a><\/h3>\n<div class=\"entry-meta\"><a href=\"http:\/\/armstrongeconomics-wp.s3.amazonaws.com\/2015\/08\/Shanghai-Stk-Exchnge-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-36482\" src=\"http:\/\/armstrongeconomics-wp.s3.amazonaws.com\/2015\/08\/Shanghai-Stk-Exchnge-1.jpg\" alt=\"Shanghai-Stk-Exchnge-1\" width=\"3500\" height=\"2333\" \/><\/a><\/div>\n<\/header>\n<div class=\"entry-content\">\n<p>Why has China become so important? Largely because global investors are in this transition mode and do not understand how or why the foundation of everything is changing\u00a0beneath\u00a0them. The market turmoil in China spread around the world on Thursday as global investors took their lead from China as a contagion unfolded with no real understanding. Some try to justify this by saying China is a casino and not a real market that is trading on speculation rather than solid earnings. Those types of statements\u00a0reveal\u00a0the lack of knowledge of the speaker since\u00a0<strong>ALL<\/strong><strong>\u00a0<\/strong>markets trade on anticipation \u2014<strong>\u00a0<\/strong><strong>NOT<\/strong>\u00a0on earnings\u00a0<strong>(anyone remember the DOT.COM bubble?).<\/strong><\/p>\n<p>So global markets look for direction and make up excuses as they go to try to make it sound logical. As we have been warning, China is in an economic decline into 2020. Sorry, but that is the way it is. There is no dark conspiracy to suppress metals \u2014\u00a0it\u2019s\u00a0a deflationary wave since commodities became addicted to the Chinese demand that is now retreating. The rest of the world is in the same boat of deflation set in motion by rising taxes and tax enforcement as governments suck an ever-larger portion of wealth to sustain themselves at the expense of the private sector.<\/p>\n<p>The euro has\u00a0paused,\u00a0not because of any reversal in trend, but simply because everyone became too short and it forced liquidations on what they assumed was a one-way street based solely upon\u00a0fundamentals. Yet, the euro has been unable to rally to reach key resistance just yet. The Japanese yen has not risen because of a bullish change in trend, which is just capital retrenchment as markets decline. Never forget, the higher a currency rises, the greater the economic deflation. The\u00a0<strong>ONLY WAY<\/strong>\u00a0to turn the U.S. economy down is for a dollar rally \u2014 not a decline.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Looking for Sanity in an Insane World Why has China become so important? Largely because global investors are in this transition mode and do not understand how or why the foundation of everything is changing\u00a0beneath\u00a0them. The market turmoil in China spread around the world on Thursday as global investors took their lead from China as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,130,151,202,4086,506,5479,783,868],"class_list":["post-16201","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-china","tag-commodities","tag-deflation","tag-investments","tag-markets","tag-martin-armstrong","tag-taxes","tag-wealth"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16201"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16201\/revisions"}],"predecessor-version":[{"id":16202,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16201\/revisions\/16202"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}