Martin A, Armacrong former Chairman ef Princeton Economics Internetional, Ltd snational, Ltd. Armstrong Economics ” y1a01 601901901 601 9007901001 0a! 260 jiotoo 1901001 0019001000100 10704" 3pran! G01 36103] GO! 0¢1097901 9008) F dograygraoe1 907001 Dot01 117070191 (seargatonteoLactonioniyoictoo:c prbarbes ‘o0100%001000" ipp19e11 190700) 91907001 903.615 vjooanb1001¢at ty Hperaotoo 1001 pat901 61007 ge 100100100700 gt 1 70101019) 10010) 31 00300100 1901001001 B1a01001001D0 10a pou3e109100100109100100190106 Getgd #716) 937-3)1001004001 ofoa7a01pH1901001 001001001 801 vipat potoa 70016010011 4.3 = Si sooty c}57007001001 05100 ¢ tah #2 = zanioro010a1 con De Joi 40 100730401 01 97 e071 964091. Sty soos001 001177007 96100; 001) Gposbo1110910030070700111 1014 1BFteo1 0109; 001ec7003001 610 i ee Copyright Ma: BN Nereia Av dowtrong Mi Righes tapered UB + Armstrongiconomics@Mail.cCM ae Sd 2-ACKHOWLEDGSKENES ‘z would Like to thank the nany people who have been writing fron around the world. ic is encouraging to know that there are so many people who are interested in uncovering the truth. T have also special thanks for 50 tany providing valuable insight into trends around the world from China, Soviet Republics, Sovth Africa, Brail, Australian, ana Tudia, T believe ve can survive the folly of govarnmants aven 1f they refuse to listen. whe key 1s understanding the nature of events, and that allove us to correctly make the decision'to be on the opposite side. 1 would Lika to also thank all my old friend ond former clients for their support and to know that they have continued to gather information that servos us al in times of crisis. We are stanaing on the precipice of a new era in global-seeial-econonice. How ve onter this naw age is Sf critical importance. Governrent is incapable to.doing anything for any reforn of its ow abuse. of pover is TOL up for negotiation, We must veather ‘the storm, ana te do. $0 We Teed to understand its nature. gust as the 1930s Great, Depression set in motion profound changos that were even nanifest in gaopolitical confrontations, we have now feached sucha crossroads. A debt crisis has its tentacles deeply enbedded into-every sector right into goveranent. This is the distinction froa a mofo stock mazket crash that never alters the econony long-term. We are sericusly still over-Leveraged and sone banks axe still trying to be hedge funds ate have'to speculete to make a profit, That is e key varning sign that the vorso ic yet to cone. Conmonts, Suggestions & Questions Connonts, Sumgestions § = Please mai} tor Martin A. Arastrong FCT Fort Dix Camp, #12518-050 ¥O Box 2000 Fort Dix, Nd 08640 PIRAGE BACISER YOUR EARTT. ADRESS FOR-FOIURE UDOMTED NEWS CRTEICAL TO OR SURVIVAL umstrongBoonmicst@tai Cot eyeight, Meztin Ay Aeesieng, “aT rights reserved, 3 This Repent may be Fosuarted as you Like without charge to individuals or geverrments sinund the dorld. st is provided 28 4 Public Service et this tine without cost because of the critica) facts That ge non foced eseronseally. ‘he contents and designs of the systans are in Fact conyrigntes. Je a tature cate, a raw edition of the 1965 The Graatest ull Maxket In Wistory wil! be relmssed rd a pew book will soon be published on the modal Lteal? « The Gocmatzy of Tine. ot is vital Ural we brat fangot thie Le a world ecenomy and the arroyance that any ration can dictata to the world Je jst insanity, Every nation efTects all othe:s rq different. then 2F one nation were to |rur ast 305 tonic weste Lots tha ocean. Sverything is inteoL jar sulaed ewerie.by: Martin A. aemptrong Former Chairman of Princeton Foonomies International, Ltd. and the Foundation For the Study of Cycles The Vist of Panics that Started the Whole 1683 1717 1720 1731 1745 1763 1772 1783 1792 1814 1818 1825 1857 1866 1863 1871 1872 1873 1884 1890 1893 1895°1895 1299 1901 1903 1907 here is always a begiming. Many have weitten asking how did I even see , cycles to hegin ny life long quest to understand what ia Western Culture, few even dared to try to sea? To set the record straicht, what I began, vas conpelled to do, T did aot even think that cycles existed. There was fo possible formal training ona could evan go to cchool for. So I was a mere kid, unbourd by formal tradition, and with no carser to even jeopardize as an scadenic kucking the establishment, T was untainted by tradition, and free to roam where perhaps no one dazed to go. What set me _in moticn was effectively the 1966 Crash. That vas a watershed event that no one even understood vhat was truly at foot, T had begun working at the age of 13 for a bullian dealer in High School. Gold in those days traded in coin form, since hal lion ves not legelized until 1975. T had lucked cut and by chance picked up some rare Canarian pennies in 1965, T had saveral bags and there were 4 varieties, The one I had soared in price to the point a roll of 50 vould fring over $1,000, Per'a brict and shining monen, T had becom on paper a millionaire. I held back wrongly thinking the price would go higher. What T witnessed in the Crash of '66, changed ny life forever. 1Due to a family Aistory, my father's greod-father made @ fortune in tha 1920s and Jost a fortune in the Crash that began in 1929. So my father was a conservative nat became Upset seeing his son making a lot of monay before he could even drive, My father feared T would become a speculator and lust perhaps follow dawn that path as previous generations. hy father attempted to curb ma. te had heen giving books that were college Level. Since I was about 9. My first bock te read was Aristotle, He said if Aristotle wae good enough to teach Alexander the Great, he was @ Model for ma. My father died in 1983. when J handed my son Aristotle at age 12, every- one from ny mother and sister yelled at me not to do to my son just because that was what my father did, “my son nonetheless did read Aristotle and the test was to be able to sit down and have a conversation with me about his ideas. He passed, But then T did stop. But Z did fee) American education is far too restrained compared to Europe and evan Ruesia, My father had set up a meeting with a Insurance Broker who came over ane might to Sell. me a mitual fand - Fidelity trend. iy father said this was more conservative and I ehoald not speculate in comodities. For you see, 1964 was tha last year for silver soins, The price was soariag and one could gp to the bark and get bags of dines and quarters and cull cut the silver, and then there were the silver certificates that tho Fed vould zedeen in large quantity only, So there was a farket now tuying siivar cortif- ieate notes, bundling them, and taking the delivery from the Treasury, This is what was going on and I was working in an industry where I had a front row seat. When 1966 Crash came, it was far more than just a collapse in stock prices, It was @ contagion that T did not understand at the ‘tine, but watched it in a very live way. the stock market boomed as did zare coins afd just about evarything else. ‘this was the 1964 Permanent Tax Cits that created a huge consumer buyiag binge that hit just about every sector donestically. T aid not wer stami this at the tine, but what had bean set in motion, was the seeds of contagion. Nothing was spared from the correction. The Canadian pennies fell to face value with a discount because they wer= now Canadian. The investment in Fidelity Trend crashed and burned dropping from maybe $50 bo $5-7. Real Estate was hit. Cars, art, ané just about anything else. What got we started was this watershed event, I saw everything rose to excessive levels and then crashed and bummed. Ti vas not a cycle I was exploring, but a contagion that T did act understand. This is what 1 have subsequently ideatifiedas a pure Phase Transition - the sudien exponential move tha marks a departure from a noel trading even to a explosive nove wiping cut both aides, Iwas at fixet unownre of cycle theory. 2s I began to read in libtaries, I cane upon a list of antes fron 1633 to 1907. These were obviously world panics, aot purely a US economic event. Perhans out of curiosity Z just aaturally added the total years and and divides it by the number of cvents that was 26, this generated 8.615384615. At First, I believed tais was just an average, nothing more, I cane across) nention of Nikolai Kon- Gcatieff and his theory of cycles. T was now intrigued. Bad I discovered a cycle or Just and average? I had a good comand of history. I knew that every civilization rose and fell. thus, T began to explore history fron a cyclical perspective, I began to see the rise and fall built-up in inteasity in layers. whet T wes seelag vas fractal structure of self referral. I did not underctand these true concepts yet. But I began to divide history dissecting it by 8.6 yeer intervals. What 1 began to see were Groupings of intensity that built-up structures of $1.5) years {6 waves). ‘The rise and fall of civilizations started to now make sense. . T kegan locking for others who may have stumbled upon cyclical theories. I tumed up Réward Dewey ho tried to relate things to the Sun Spot, There wae Professor A.D. ‘Ti~ Jevsky, who had hegan the Sun Spot theory acd plotted an 11 year cycle back to the Sth Century BC. All of these interesting theories were trying to explain the cause of cycles, I was not convinced that. their soures was correct any more that Astrology holds the key.Eoonoitle Gonfidenes: CRAUDIE'Dy Mastin A. Armstrong Soares Pos cen set Cea ey Kondratdefi's work led me to Joseph Schumpeter who tried to explaiathe cause cf cycles in Kondratieff's work as great waves of Inoovation. That man creates a ew jovention such as the railroad and it expanded the economy overall allowing for the delivery of goods and thus a catalogue Business 1s born such as Sears. However, Schimpetar was not about investigating the cycle timing. He was all. coneetnad about justifying the existence ct cycles.7 respacted his work far more ‘than the sun spot Ldeas, But when I took it back into the centuries long since pest, it did not hold up as the caly explanation. What 1 bagen to se wes there hed bean an eternal battle betwesa the pecple and the state. This was captured in the truly nagnificent debeta of thracymachus and the more renesbered Socrates recorded hy Plato ia his Republic. Knowing my history of Rona quite well and the troe nature of the events surrounding Julius Caesar, it began to make far more sonse to me that there was @ sternal battle that some would evan call between goed and evil. whatever we call it, 1t is the desire to control the freedom of the people. SOG Ceo eee and L0TS year perkods rece e ove a Moral Pa ea Te cae aed Soa Nothing vas clear than the fact that this concept of cyclical trends was enbedied directly within the Rone ced of Janus, ‘the tno faced god was the synkol of cyclical change. One iooks at the past, and the other looks forward to a new age. This is what we still celebrate on New Year's Eve - the ancient celebration of Janos ~ the cyclical forces. he Rorans even expressed this in the goddess of Fortwma, who was pictured with the eammcopia in one am and the other holéiag ‘the rudder of a ship, symbolizing that she is capsble of changing, your cycle of fortune at her mero whim. . 80 the idea of cycles I found existed among the Greeks as well as the Rovans. What T saw was the battle between the ruling class and the people as. baing eternal, I sav the contagion effect in history, such as it was 509 BC when Rome gave birth to its Republic and the following year it took hold as a democracy in athens. While Twas at the Founfation for the Stuly of Cycles, a guest speaker came to show the cycle in the energy output of the sun thatwas discovered from the drilling of tee core Samples at the North Pole, sally Balbinas put up her résults showing this cyclical boat of the sun that fluctuated about 158 in outpat between maxdmun and minimum. set “there inesnatined by Fat presenta tion. When she was finished, 1 approached ber and asked dia she know what she had? She jooked at me 2 bit strange. T than explained that her data was matching fairly close to the rise and fall of civilizations through out time, ‘ I don't remenber the year. But it was about the mid-1980s. Where I had tracked the footsteps of man through the rise acd fall of civilization historically with the idea of just following the ncnay, here was tor the first tine an empirical netucal event that I could understand and to me was nok subjective as was the theocy of sun spot activity. The diffarence to me ves nob the gffect: upon mankind like the legend of the Full moon and it creating "lunatics" or men who transformed into wolves, but upon the sconomic effect upon society that compelled migration Gus to crop failures, As society fomed, 90% was agzatian, Even’ the United States was still about 708 agrarian in the 1860s. To me, the effect of the sun creating veriods of global Warming ia contract to pariods of ice ages, was tangible. Any theory OE sun spot activity effecting everyone ard induclag them to buy Gr sell altering the course of our political economy, was simply far too esoteric. T understood the rise and fall of all civilizations had clearly been effected by weather. Tt was also effected by plagnes. Things that may or may not effect the human personality that arise fron external souzces as in astrology or sun spot theory, just did fot cut it for ne. T vac a strick empirical evidence sort of aay. 1 could see things Like the Black Death and how it killed so nany people it created a shortage of labor and thus re-established wages. 1 could see the compulsion of govermments desperate for taxes act like suicide desterying the very source of all state power, the consent of the people. I could even see beyend what Schumpeter sav as waves of innovation and into the soul of economic panics, Tf it had pot keen but for the Great Depression, the Us would Still ba 40 farmers, The 7 Year Scoucht compalled peopl to kecema skilled lator, TOENELEYING THE CYCLE SORT OUT THE WEY LATER eee the to approaches dn cycle theory that _ had untelded aong those who went before me, was (1) identify the cycle as did Rondratieft and then (2) try to prove they exist by the tracking down of the cause. So when I began, ‘I took the Kondratiaff method. discovery of the cycle - worry about the vhy later. My mapping of the history of wankicd by dividing Lt up into intervals along the line of this 8.6 year frequency, was like taking @ Sentence ani eliminating’ the spaces bebveer the words. Tt still says what. it sata, but we cannot see it ag easily and have to start to carve it. up into words. this is what 7 did with history. As I was constructing history into a more understandable cyclical course of events, T could see periods of innovation even ia the ancient times such as the construction of a road by Cyrus the Great. I could see the clear amerging kanking systen along the Lines of temples, where the security was provided ky the gods. Howevac, as I carved up history, I had still assumed T was working with an average. I had mapped dt inte modem times ard even into individual markets. ‘This produced eventa that vould unfol@ right precisely to the dave of the calowlation. T did not think that this wos strenge, it was Just a coincidence to mo. This appeared on January 2ist, 1960 for gold. ‘There vere other dates that T also overlooked eed just chalked it up to being interesting, Finally, the 1987 Crash cane. The redel Predicted Ocksber 19th, 1987. The calculation was 1987.8 (385 * .8 = 292 days|-273)219. the target did not produce the high, but the low. ‘Throughout my study T had com te see that cycles were not highs and lows, but they vere tumning paints. when this cama out. as a low, if vas the signal that the cyole worked and there would he no depression. ‘This thing was picking precisa highs and Jows in a host of matkete around the world. rt made no sense to me. T discovered an average! How could an average work this precisely? Te was happening too often and it was now time to understand why.T had seen the fractal natura of the Sconony ries in levels of time, I would See a pattern emerge intraday where going there would be a huge sell- ‘This would end up appearing on the next higher level of a dally chart, This would —-_thea_migrate.to-theweakiy_and.4t would_thaal— appear st the monthly level. ZT saw the fractal nature before T had read anything about the discovery of chaos theory and Nandelbrot. What he had discov exed io natura, T was Jooking at in human behavior. This re-enforced ny understanding that the laws of physics, had to also apply te the global econcmy. : What Mandelbrot discovered with the aid cf a commuter was that the complexity Of dats that “appeared” random "chaos" was in fact ordered and it was the conplerity that was hiding it all aleng. Z had followed a unicne path in the ereation of the Global model. I saw that . there was this complaxity and my clients azound the world forced me to see dt, the Floating exchenge rate that vas born ia 1971, had propelled ta into a new Lila thet even T did not at First comprehand was a new field, Having clients around tha world, I began to sea that each acted out of their own selg—ioterest. as Adam Snith had explained, but when Suith wrote his wark, there was a gold standard, Go people nade thei decisions in their om sal?- interest, but that interest was measured in geld ~ the comon currency. ‘The fleating exchange rake altered the very nature of the world: Now people still Gid act in their own self-interest, however, that interest was now neasuxed in thelr own home currency. ‘This crested a "contangs"— a pew term used to explain a multidimensional: inter-relationshin of dopendent varieblos. Suddenly, if gold was aoteg to risa against the dollar by 8, it would surely pe a plain Brofit to the American. Hewaver, iF the per son was Swiss and the franc would rise 108 against tha dollar, then if the Swigs had bought the gold, he would have lost §@ in Swiss francs. Sudderily, the theories of Adem Smith wexe act disproved, but mace far more complex for now currency suddenly vas anew thickiag language of economics. In order to create 8 computer model, Thad to face the fact that I vas now into a completely new field that had not even been written about, 0 less understood, 1 approached this problem with creating 4 complete nev design. This ie why T had to ‘exeate-a-conputer “with-no-rules—It-is-also_ what foxced me to create a computer that I could communicate with in English and have a conversatien with. Tf there woro‘no mules and restrictions, there was also no way to access the reascaing without the ability of inguiry. 1 badito create a computer that would not merely analyze everything against every- thing in a coatango, but thendo it al? over- again in each currency. The calculations in this epproach vere eommous. Z could see it in my mind, and my clisnts worldwide ware Showing ne what they wanted. They showed mo what vas dimportant to then. ‘So the global. model grav enomous in scope and in experience, Every possible Data series that Z could collect, I in fact collected. What I was doing was what chaos sedence was doing, looking for order within the complexity. the Discovery of Pi_ T was watching events unfold eroand the world an precise targets in line with the Bocnonic Confidence Model. I had taught the compater how to analyse. How to find cycles within everything, discover individual fro~ quencies, ard then correlate those woh the major global Eeonomic Confidence Model. T saw events unfolding to the precise day in markets fo one wes even paying attention to. was surprised, no doubt, tut as this wad now becoming a regular effect, 1 had first athributed it to the scope of the motel. T assimed that I had discovered the hidden erder that lies Geep within the global mix. However, when the 1987 Crash came right to the day, I felt this could not be just a coincidence. T wanted to understand where this order was emerging from, 1 had designed @ computer that no one had, I could commun= icate asking why it veached a particular forecast. But it did not discover Pi,T had observed this increible degree of accuracy around the world watching it ironically myself far about 8.6 years, When the 1987 Crash came, that was it. I folt perhaps I missed something. Since it had teen richt to the day, it made sense to now begin with calculating how many days there were in one of these 8.6 year cycles, (365.25 * 8.615384615) - 3146,769231 What: inmediately jumped out was Pi * 1,000. X was stunned. Tt began to dawn on ite, what I hod discovered was not just a mere average, it was the parfect cycle, J couldn't belleve my eyas. Had in Fact society bean driven precisely to the beat ef a cycle that was so profound, it was beyond descripticn? a flood of inages row xushed through my mind ag if the history Of the world was suddenly downlosding in A massive date dum. Suddenly I saw it in my mind's eya, There vas a Geometry of Time itself. this elusive dimension that had sparked great debetes ani caused even Rinstein to consider what would happen if qe could exceed the speed of Light. Time was a whole few world, Was this now like any other science subject to the exploratioa| of man by math? Pi in mathematics was the ratio of the circumference of a circle to its dianeter. The ratio 3.14159265 is an irrational mam ber that camot be expressed as a simple fraction Or as a decimal with a finite num ber of decival places. Tt was thus also a transcenentai nimber that is dafined ae as a cunber without continuously recurrent digits. With the aid of computers, Pi las been carried out to 109 million decimal places and counting. The clrewnfererce of a circle can be calculated by multiplying the diameter by Pi. The araa of a circle ig determined ky the square of the radius (A = ft"). Pi is applied to.mthematical problems involving the Lengths of ares or curves, the araas of elipses, sectors, and other curved surfaces. Tt ds aleo uced in determining the volune of solids. However, the real interesting area of Pi_is its use in various formulas ef physics and enginsering in order to deserthe the such Periodic ‘as the motion of Penduluos. Of corse It is also used in Setexmining the vibration of strings, and altemating electric cmrrents, But it is the motion of pendulums that fascinated me | because T_caw the economy and markets as @ Pendulum siringing between the two moat extzene points of highs and lows. 1 saw the markets were propelled by these movements that often the further extrenes in ona @irection caused a massive swing with an equal and opposite mergy taking it in the other directicns; the hoon & bust cycle. T understood that Pi had been pechaps one of the most impartant discoveries ever nade, The ancients first use the number 3 as an approximate value for Pi. Tt was the famous Archimedes during the 3rd Century BC who conducted 2 scientific effort to comute BL reaching the aumber 3.14. Pi has been that elusive nuiber of the ages. By 200AD, it nad been calculated to be 3.1416, The Chinese and Indian nathenaticians had improved upon the decinal calculations and infependantly confirmed the existence of Pi during Gth Centhury aD, Europeans. still kept improving the calezlation duriag the 17th Century, but it was Srinivasa Ramanmjan, the Indian mathenatician who ves considered a math genius who in the 20th Cantury developed ways of calculating Pi that were just so try sfficiont, that these methads have been used in computer calculations of Pi. that have now allowed It to expand inte millions of digits. After my case began, it came out that the munber of the street address I had grovn up in was 314, T have ro comment cn thet and any connections pecple have sean te that and fate. Tstlll regard that one 2s colneidence. It ds true that T did not raveal the relationship of the 8.6 year cycle to Pi. I kept that = secret from 1987 until 1999. When it became clear the the Commdity Futures ‘Trading Commission had bean manipulated by its handlers the Tavestmant Banks of New York to shut down the Zastitute and stop forecasting at any expense no matter what Lies had to be publicly stated, it was clear, people like Nancy Faye at the CFTC just wanted to bury the company no matter what. this is whet caused ma to publish the final report for the Institute revealing the relationship toThe CRIT and people like Nancy Page whe works there, would never listen to any reason and were’ influenced by the major heuses whom the OFTC will never: charge for exceeding Limits, double dealing, or trediag agalost their awa clients.not to mention Sront-mmaing trades, The CFIC prosacutes all houses an? ll players outside of NY to pretend thay are still doing a job. When we purchased Cresvale, @ broker éealer headquartered in Hong Kong from Bank Ralige in France, T hed to meat with al? the regulatory agencies around the world. I flew to Kong Keng and had to be appreved as the buyer. They knew all about my long standing battle with the GFfo, and outright told me then and there, it was a NY Benk who had told the CPC that I was manipulating} the world economy. hey themselves Langhed at the CFIC, vho seams never to have evar had mich respect behind elosed doors. When the CFEC hed compelled me to tum over alient lists in the United States, a Stevea Miban at the CFIC was calling up sé major clients ami telling them 1 had even contessed to the CFRC that I vas secretly managing woney for them. One such clieat was the Onasis shipping company with a branch in New York ~ yas the Greck Shipper of Kennedy fame. When Steven Mihans told them 1 confess- ed, they called me and asked why the hell would I tall the CFIC I was managing money for their company when 1 was not? T told them I dida't speak to the CFIC, end so they invited ic, Mihans to a meating. He showed up end gave them the same story. They had their lawyer present and racorded the event. When they told then I advised them on thedr global exposure, but did not do fords management far them, Uc. Mihans thea apologize and said perhaps they had gotten them confused with one of “his many other clients" and then departe’. They sent me the tape, I gave a copy to my lawyer in Washing. ten, ‘Thomas Laighran, He sent a copy to the RIC and denanded an investigation. They refused Lo investigate any of their staff. ‘The CFIC weat from client to client clakming I confessed to secret. funds manage ment. No matter what, they would no stop. hey then issued a stbposna and now wanted me to turn over the List of clients outside the United States, I refused after their unethical conduct. We went to Federal out and they accused me of nanipulating the world economy. ‘The New York Banks told then noborly could predict anything to the precise day and this was now evidence that 1t was no just influence Thad, I was secretly cee far more meney than I suppose chtize AY buoks Uenelves ned. ‘They Judced me HY chatiseives ‘and-what-they-thought was raw power — vhoss dick was bigger. ily lawyer doferied the firm against this outrageous subpoena accusing ne of now menigulating the world economy, and if T had £0 turn over all lists of clients outside the United states, they could prove I was the modern day gold finger. won, They were pissed off to say the least. No matter vast T seid, the CFR had refused to accept, science ar even consider ssibility that pecheps I jus Sischvared sonething incredibly” important. To them, T just have trillions of dollars secretly endl 1 could overpower the world or some crazy nonsense, I have paid dearly for this discovery, Gn Octeher 3rd, 2000, = former employee anes Smith cane to court before Judge Richare Owen, He handed the court a request from thé Department of Energy coking to create a model since we vere forecasting oi] would rise to $100 after hitting $10. The CFTC denanded the Institute be closed 4 Gnith danied to testify. We also donated cur tims to governments around the world because I falt this was a duty to try to help, We had more than enough clients who paid the bilis. Even when the Asian Crisis hit, everyons was shocked. The Central Bank of China requested 2 come to Rajing. We aid not charge a dime, The FRC is just an evil organization that has caused far more harm to the economy than gpod. Racans= we have had two asqacies, the ‘SBC and the CFIC, this Ls why there is’ even a hedge fund industry offshore. You cannot have a single fund in the United States that manages everything. If you obey the SEC, you go to joil under the CFT, It has been thig bifurcated requlation and the nasty atti tude at the CFTC that keep trying to prove thay are as gecd as the S80, that drives funds offshore. As the lawyers always said, the Jawyers at the CFIC are the one's who can't got jobs at the Sut and they exe just plain stupid hy conparisan making them always to display a chip on their shoulder.26 = 8.615384615 CREINE = .988716193 (aigit sum 52) SINE = .149800381 (digit: sum 34) 151510445 (digit. sum 26) 2 8615384615 * 365.25 8.615384615 2 12 13 717988717 (224 G2 = 112) 3,146. 769231 (728 of a year) «615384615 The above is just a glimpse of the real symmetry behind the 8.6 frequency. T assure everyone, J. wes not managing trillions of dollars that made it work to the day. The PTC even lied about the transactions that landed ne in prison, There were two types of notes. {1} we issued the carry trade type notes borrowing yen at 4% fixed. So thare could be no trading wins or geins that were aver the property of a noteholder any- more than borsowiag $10,000 from a bank now makes you a money matager for the henk. The second note was a purchase of the pre-existing danaged portfolies of stocks ja Japan that dropped 20-50%. The anouat owed was the face value of what they paid. Each note was a bailout and individvally approved by the Japanese government. So ence again, there was no solicitation to manage neney. The CFIC lied to the courts, to the world, and denanded all the lawyers ba taken away to cover-up there agenda — to stop the forecasting no matter what. The judges are too corrupt and will never rule against the government, We have lost any hore of restoring America to what if once was. The CFTC carried out the agenda of the N¥ Banks and then handed Princeton Eocnenies to be run by Goldman Sachs while the only lawyer in the crimiaal case, was ‘one David Cooper who whose wife was Counsel to AIG. There was no hope whatsvever. They would never alloy lawyers, and they had Jobo M, Walker, Sr in their pocket. And by the way, BSBC bought Republic National Bank. About 6 months before the deal was signed, Charles Swift, the former Chairman of BSBC who moved the hanie from Rory ong to London, met with me ia our Landon Office. He asked my opinion about buying Rapublic. I told him to count his fingers after shaking hands. HSBC conducted its wm inkecnel investigation of the sroblem acd found Republic lied to the Govercment. They hid that study, palled out of the buy, aod the Edrond Safre personally guaranteed any Joss to make the deal qo through to avoid shareholder lavsuits. Mr. Swift became a director of Princeton Asset Management, Ltd in londéa, and was going to head up Princaten opening up io china, he discovery of Pi was far too tmportent for us all. But the CENC does whatever the IY boys tell them to do. That is why they will let Buffett buy a $1 billion position in silver, yet that is fax beyond exchange limits and anyone else would have been jailed. ‘the CFIC more then any other agency in the world is responsible for’ the collapse of the world economy because of thefr corruption and Tefusal to police the real crooks, Remember Tong Ter Capital Management. Great job CFIC he existence of Pi proves there 1s a Goomotry of Time. A vhols new Exentier that is waiting for our understanding. Just as ‘the Science of Chaos opened our eyes to what appeared to be complex random noise, was hidden order we could not sea, we axe at: the save position — a oe threshold.former Chairman of Princeten Economics International, Ltd. Martin a. armstrong Armstrong Economics ” Cycle Theory & The Sixth Dimension 1400100 1902001 oave001 001901901900 ¥1001097901001 0018001 cou" Coto 9¢8 36190190109109;40' 904007 po7 pega }0 foa¥eroiase7807001aR1 011 119) 01911 {sxe%99300% 001.97 964 D040070070010 THaUToDat gets01 G8 TEQTOD ADT DOT CAD sop ojeyerioroora: oraygtors 30501251 aroujadiactantposoa sda! co1 0036019 Greg ecrapios Tooreg et con 907 Aly 1801 601001 6019070010010 700% 06 Af D¢tE2 #. .748)=77. 391001 007007 Be G1ootee 1964007001 204001007 301 sfopimaioorgoteaiserni(4.2 € & ty a8a 4 e107 bOrDGTOOION t09 A412} # 2 = 224 por co1e0190100 Bots ta7 90390401 core 1091091007 Brtieotooraatt | 2ap70080T0ot Gopnedtt 1991 oo oot et09 7417040 {hor ao1 p4100 1097001 cot c01 0101 Copyright Martin A. Ammer Comments Welengg gcrone ALL Rights Reserved September Sth, 2009 + ArmetrongEconomi erongh jes86Nei.COM (International ly}ACKNOWLEDGEMENTS E would like to thank the many people who have been weitinc fron around the world. Tt 16 encouraging to know that there axe so many people vho ars interested in uncovering the truth. 7 have also special thanks for s0 many providing valuable insight into trends around the World trom China, Soviet Republics, South Africa, Brazil, Auctralian, and India, I believe we can survive the folly of governments even if thay refuse to listen, The key is understanding the nature of events, and that allows us to correctly make the dacision'te be on the opposite side. E vould like to also thank all ny old friend and foxmer clients for their support and to know that they have continued to gather informatioa that satves us all in times of crisis. “ Wa are standing on the precipice of a new era in global-social-economles. How ve enter this new age is of critical importance, Government is incapable to doing anything for any reform of its own abuse of power ts nob. “p for negotiation. We must weather the storm, and to do 80 we need to understand its nature. Just as the 19303 Great Depression ‘net in motion profound changes that were even manifest in geopoliticai confrontations, wo have now eached such 9 crossroads. 4 debt crisis has its tentacles deeply embedded into-every sector right into governnont. This is the distinction fron a mete stock market crash that neyer alters the economy long-term. We are seriously still over-leveraged and sone banks are still trying Lo be hedge funds end have to spaculate to maké a profit. That is a key warning sign that the worse ic yot to come. Comments, Suagestions & Questions Please mall ts Martin A. Armstrong FOI Fort Dix Camp, #12518-050 PO Box 2000 Fort Dix, NJ 08640 PLEASE REGISTER YOUR FMAOL ACORESS FOR FUTURE UPDATED HENS CRITICAL 1 COR SURVIVAL SopyeightYErtin aR, BewStrong, all rights reserved This Reject nay bo forusrdes as yu Luke wisheyt charee ta indivieutls c= soverrments around 2he world. Tk is provided azo Public Service at this tine without cost Gacause of the. critical facts that wa now faced economically. The contents and designs of the systems are in fast mapyrighted, At s future date, © new edition of ine (900 Tre Greatest Bull Rarket In History will be released and = naw toorke will acon be pubkichac en the qadel dteclt - The Georwticy of Time, It i vitel that ve do not farget this’ is @ world ecorony and the arrogance that ary ration can dictate to tha world is just incanity, vary nation affects all others no ditrerent. than if ana ration were to pnur al As toxic ests inta the ocean, fuasything ic interlinked and solutions are nevar isslated events.‘Aebteay soi RD4 3B gumecoutea awest Cycle Theory & : : : rN The Sixth CA, Dimension by: Martin A, Armstrong ‘Former Chairman of Princeton Boonamics International, Ltd. and the Foundation For The Stndy of Cycles HO in the film Matrix, is an excellent. example of the reality of cycle ‘Theory. Instead of the vorld being mun by machines who have enslaved all of mankind using their energy to fuel the world being kept in a dream state, we live ia a world in which we are ignorant of how Lt works and primitive in cur thinking of cause and affect. Once you see the cyclical nature that is how everything moves and eneray itself is transmitted from ‘one medium to the sext, you become like the character Neo. Suddenly you Sea aot the image cf the world, but you ses behind the inage and the driving forces are everyhere. Wille the Cumodity rutures Trading Commission sav me not as Neo per se, but more Like Darth Vader capable of manipulating the world economy with a single thought, their very harrassment of Princeton Economics illustrated ‘their om stupidity. Their thinking process of redwctag everything to a single cause and effect, indeed shows that for as much es we have edvenced, we ave still xunning arcund wearing just @iapers and chucking spears. What I discovered xecarding Pi and the Tf the sun has a 300 year cycle that 8.6 year cycle, was something incredibly causes its enercy output to rise and fall, important. Thie meant that TIME was not ‘then man did aot create gicbal warming and the exception, but was subject to geometry. | this is a natural avent just as the rivers This meant everything we think we know, must | were frozen during the Revolution at the be re-examined, This offects politics for padix and we are finishing the peak currently. politicians get re-elected by pretending they | Clearing our environment makes sanse fron a are the solution, but if they are primitive | health perspective, but the Prestdent wants and try to reduce it to a single cause, they | to gather scientists to figure cut a way if will screw it up every single time. They will | we can reverse the trond. We are Like ancient effect every person's life, create var, and Goctors who beliave in "bleading" the patient have no sense of even when @ drought will nit, | to cet the disease out, If they died, it veo because we did not. "bleed" them soon encagh.Cycles exist in everything, and we have recognized them in different foms. For exemple. Lhe concept of “Inck" is traly just an expression of cycles. We can take a deck of caras and. calculate the bility of drawing a king out of a fresh deck. Tf the fixst card is a two, we can now recalculate the probability. The next card wo draw is a nine, We again recalculate the “ocds" that the next. card would be a king. We all. koov that there is no guarantee that even as the "odas" dacrease in favor, the king could, berand-often is, the very last cand. What also appears we may call "luck" that is with us or not. Gone will call it being "hot" where the cards are caming their way. This is a cycle, You would be surprised how cycles my be far nore migerstcod in some industries and rot others. Atlantic City in New Jersey is the cheap version of Vegas. I canast help seaing cycles everywhere. T was there with @ group of friends, 7 an not a big card or dice player. But I did notice the cycles in roulette. I noticed that was why the house routinely alternate; their dealers, Tt is to break the cycles. I started to write cach of the nutbers dom at a roulette wheel. I immediately saw there ware cycles. Some numbers never came up while othare would re-appear. I started to play and I wen a few rounds, Suddenly, two guys in dark suits came over and asked me my mane. They said tha house recognized me as a "player" and I told then T was there Just for fun, ‘they didn't believe me. So the logical. thing to do was step. I was making them very nervous, dust as Manfelbrot saw order hidden Aside vhat: seemed to be randomness, na matter what the odds are, everything will volve into a cyelical state. So the term cy Luck” is a throw back to the Greake goieg to the temple of Neptune to pray that ha not "ness" with then on a voyage. It was praying to the Reman goddess Fortuna oct te Change the course of their ship with per rddar. Cycles override probability. So our world of statistical analysis can be naatly calculated, but that really means nothing for thare is a mysterious force working in the backeround that. dictates the outcome of the wheel of fortune, While the first. Three Dimensions are the boiler-piate amplitude, width, aod the depth of a market (depth = volum), the Fourth Dimension is ‘Time. The Fitth Dimension is the fractal dinension whereby self-refecral perpetuates through the course of all levele of Time, It is the Sixth Dimension to this time complexity that Lllustrates the concentration of capital that bothers tha Mancdaets. Each individual, market and eccnomy has its own cyclical frequencies, It 1s the cornelation of global interaction that causes capital to do what Herbert. Hoover mentioned in his great memoizs speaking of the Currency crisis of 1931, “capital acted Like @ loose cama on the deck:in the middle of a torrent ‘from one to ia eur cyenang currency Capital rushes around the world frem one nation to another. within that nation, it will thea concenteate into a particular sector as ve saw in 2600 for the Dot.Com Boom. when it concentrates Jn a sector, those individuals becone rich, The Naraists oaly see the Bill Gates, not the capital flows that caused Aim to becare rich or Microsoft to succeed. We see vhat ve want to sco, and like the medieval doctor who assumes the disease is in the vory blood, we stact to bleed the econuny, ani if we kill it, we claim we did not start it soon enough. We hava no interest in understanding what is going on because it may nean a whole new political systen ie honestly required.While the Soventh Dimension is the volatility measuring the zush of capital in and out, the Eighth bimension is the pattern projections. Here is where we find a variety of methods of trying to prodict the next novenent be it ELliott Wave, Technical Anal ysis, or Gann analysis, None of these can a> what Cyclical Analysis ie all about, Here we ave concerned not with patterns or aven high or Jows. Cyclical analysis is the study of the floy of anergy, and is thas the true discovery of turning points ard not specific highs of lows. Sa Like light that travels within a hound electromagnetic field, Ihave found thet the sama structure exists in cycles. These are bound Dimensions within a field that cannot be separated. There is a natural contango ‘that appenxs at the surface as complexity, yet each is inter-depewdent and one reacticn Greates a ripple effect: throughout the whole structume, So we cannot isclate Just. the United States. If ve just print money to be concerned about donestic issues, we exaort inflation worldwide causing a complex inter- action that cones back to bite us in the ass. This is one practical reason we will be forced into a cne world currency, to isolate domestic policy. I do not see a Single curren ey actually in circulating form, but only at. ‘the international level in a two-tier fori that will cause individual currencies to stii1 float. egainst:the Intemational. that is only used to settle intemational, accounts and trade.Tt is truly the Sixth Dimension of this Complexity that provides the Correlation of Cyclical Perspective showing that TIME itself is not meraly subject to yooustry, Dut that is the very bound fields of this complexity that creates the interection ov sech a global scale, it is another verification of Checs Theary where the slightest amaunt of change in one variable, can create an entirely different cukcone as it ripples throuch the fractal structure. ‘IMG flows as a constant, but its effects are measured in cycles. ‘The mere fact that Pi exists in TIME, demonstrates that thera is a curve to the events, rot a simple linear Erogression, Tk is aot dissimilar to what we have learned about a rain forest. There are so many species of plant and animal living within a delicate balance each interrelate to the other’ in a scale of predator to victim often reflected in the image of the one animal bigger than another, eats asmaller one, and es it swallows its prey, the next bigger aninal comes andswallows it. This is fractal up and down the scale, Our entire axistence is Like that rain forest. Bach component Lives off cf ancther. So what happeas is very elear, remove one species and we end up with a ripple effect that runs through the entire system. Here wo ara with Marcists lacking any conprehension of vhat the hell they are messiog with, They are fixated pon ene individual making more than another, and sea this as unjust and must he stopped. what if we tock that theory to the rain forest? Do we begin to kill one animal because it eats another and we pronounce that is unjust? We wonld soan destroy the entire environment with that sort of thinking, We have pronounced the way everything should work in an é ideal world, but we have not kothered to even undorstand way things work the way they do. We can qo more start passing Laws to criminalize vhat we do not understand just so politicians van pretend they have done something to brag for re-aloction. TIME flows forward from what I can determine, Pechaps the dey vill cone where Tine Travel. will be proven, But until that day appears, I vill assume that it only flows in ove direction. However, its effect is Cyclical in nature. This is what we mst understand, ‘The pattern analysis dees not get us to a new world of comprehension, Understanding the inter-relatedness of sinply everything around us, does open a whole new world cf exploration, It is this Sixth Dimension that in the essence of complexity, wrapped up in an enigna that remains Tine 5 itself. tf T can spark a new field of exploration so I am Not a lone voice dn the iiddarnese, CD then I would be satisfied with that. Ansctéption upon my epitaph. eSyet i AORDES eR 45 79H id A7S YDORAG WHS WEREE TOSAAG) 1UTR7E vedas b Glmatepreston jee tincdnaetase [PE Cwatad aa +4 Bagh x __ _ Pea irae er a ee fa aa cichinie Ll I ak “A Seah | || Se RE ae ‘tliseirwonon ian esise YWEOAE TASES w2/26/e00) Ai alma nem } i ‘180828 AIRES] ANTE te5404) BHT TERE ‘V35RLE 1924S TAPE TOEBAR For42e ANOEAS inyecems dose] | L Jowie shee] | | leat! | | Dongey Pais, ie om gt Arlen Canenee ia s | Beal | UE ie snare Sa sivas ese! beitng Exckesiga | [Pest sustain Canaan: laecesremmraie B vec! | lata Siam Bogie “Rott dhdcmcnya fase a USE Ded, toe TBI me Seerinianor OTO™Y Cold Btandahd Bagine Cease a Above 4s an illustration of 100 years ‘or so of the fundamental avents that tock place at: the ints cn the Roononic Confidence Model. We can see that this is by far not a model of just stock prices. Tt is the global frequency that dominates and peneates everything around us, ‘The Sixth Dimension is thas a true world of complexity. Each and every nazket and economy as well as natuzal events, all have their on unique frequency. Earthquakes take place in connection with others and are even effected by prolonged periods of rain and drought. Tk was the San Franciso earth- qoake in 1806 that set da motion the Fanie of 1807 due to cash flow probiens between east and vest, and thet led to the senate hearings and the creation of the Federal. Reserve in 1913. it is this complex interaction that creates economic trends. Tt was the 7 year Grousht (Dust, Bowl) ia the 19308 that: forced the famexs to becone skille? lahor and transformed America into what it became. In 1900, 408 Of Miericans were still farmere and that was reduced to 38 by 19802 This made America rich becouse of the Dust Bowl, Behind the Boonamic Contidence Model stands everything in the world fron man to nature. ithat we are looking for in the correlation of individual markets or evants with this modal, is to delineate IIMB itself. ‘what Tam about: to illustrate is how the individual cyclical frequency of the various Phenomena becots overpowered by the major Beonomie Confidence Model and thas thay will abaojon theic own individual, unigue frequency and what will suddenly appear, is the 8.6 Erequency that will dominate for the major turning points. This is just. vhat took place going into March 2009. Tt is a normal event and provides further proof of the overall structural design. Trying to use pattern analysis does not revdal trends, only the cyclical analysis shows things with ‘tine,Here I have provided just 4 charts showing the Dow Genes Industrials with the recent 17,2 nonth drop (8.6 x 2), the same 17.2 moths also appeared in the rally for the 30 year bonds that constituted the “Flight ‘To Onality™ and Crude O11 showing e 17.2 moath rally from about 445 up to the near $150 level, that Buffett had bought: the hich and Goldman Sacha was claiming oll was going to $200. Well so mich for the best: and the Brightest, This is contrasted with the 2000 NASDAQ bubble top in the Dot.00M boom. Noties hexe we had @ perfect. 17.2 month rally into the high, with the Pi cycle decline into the Perfect 31.4 month drop. All four of these charts show that the 6.6 year frequency was thus absothed fron the major Boonomic Confidence Model at the major tuming points that over-povered each individual market and its unique frequency. This is what T man by the Correlation of Cyclical Perspective that vhareby the perspective of the entire gicbal landscape correlates with the Booncmjc Confid. ence Modell and then is absorbed as if becomes the "hot" market attraching capital conceatration ang this we end up with the Correlation of the Cyclical Converyence - the final blending of the “hot” concentration of capital with the influence of the Eonnemic Confidence Nod,Copyright PET 1995 All Rights Reseryed Worldwide Ken ieee eh c) aT fc tee = ts bed | a 30 |_| __ Hy | = A TEE it | h q @ D| © Dy a q- Dow Jone chaisttals onthe dem 192 = babs 1824 Because time unfolds in a fractal manner scaled through levels, ag we rise to the very highest. levels of yearly activity, we can see tidal waves of events coming in slow motion. his is how we covld do long-term forecasts through correlations of the Sixth Dimension that opened up the future like never before. We can see in every market the 4.6 year Frequency will blend into the market when it is Lining up with the global. Economic Confi- dence Model, This creates a vivid and most Spectacular Sixth Dimansion of interaction TT oar vie Bow Jones Industrials Morty, dan. F268 — Dat. 1877 00: Aly, Ty “if i Hy ty hig ' 800. ti ! i m1 700 t : w: La. 509d NeGR IEEE TOTO TEP VIE VOTE TEST OPS TOSS, TTT Dow Jones Industrial Avarage Yeeriy: 1887-1540 400 | ae illustrating the same degree of complexity that computers were able to sort out and see Wrieden order within what once appeared to be dust. candom, T have tracked this through TIME itsel®, T have found Lt to appear in natural cycles of earthquakes, weather, and politics. Tha rise and fall of rations has in fact even conformed with this degres of complexity. rt is there, once we are trained to see it, Capital Concentration appeared yearly in silver when the commodities all lined up for the major historical high-in 1919. They erashed and continued lower into 1932. ‘Ihe Dow Jones Industrials came in for the next Soncenitraticn of capital causing the Rearing "208, but that wes neither present in the comodities that peaked in 1919 nor in the xailroags that ended thair era of capital concentration with the Panic of 1907, Rach and every sector has ite tum, ‘hat we axe looking at is the concen tration of capital that Herx hate? so much among individuals, takes place at the sectorial and national levels as 350 | off well. This. is the very essence of our 17.2 Yes human interaction, Tt is a hard state soo of mind, 280 / \ 8-6 Tre. 2elacron This blending of the 8.6 year \ | frequency with each and every market 200 “3 at the proper time displays the true 7 \ ] : complexity that lies hidden beneath. 0 1h 1.4] You can also catch a glimpse, that W z without the aid of very sophisticated 1004 50 5 Uptrend Line 1897 1962° 1907 1012" 1817 1992 1927 193? nodels, it is difficult to predict. the outcome unless we can correlate the entire world. Tharein Lies the answers to our future. Tt is about tima we start to pay attension, 1337 8Waile I lack the resources hare compelled “to write on a typewriter in 1960's technology, perhaps what I have illustrated here will help you to see that the world we Live wichin is a blend of amazing conplexity. Chaos Theory has opened the eyes of many to the fascination of natural events, This is the next step. Once you sea the interaction and the traly amazing correlations that surround everything, you will see that we are indeed just waking up from a very long prinative dream. Tt is very much like the plot of the warerx, but this is real, Inctead of machines feeding our orains with the false image of a fake world, it has been covernment perpetuating the myth that we need them to manage our future, for only they have to power. This to na is no different fron medieval days when the Bible could only te read by clergy, for only they wore trained to xead the word Of God. . We have to wake up from this michtnare of surrendering our hopes, dreams, and future, to the wili-of the politicial stata, If we truly did live in a free state, then tho individual would be free to also choose to contribute by taxes. ‘The world that the Younders of the United States tried to create, vas real Liberty, not this foke stuff, Direct taxes were forbidden directly in the Constitution, Thanks to Karl Marx, the Republicans who then called thenselves| "Progeessive” as the Denocrats today, amended the Gostitution installing direct taxation and alse Prohibition, They vould dictate we hed no right of politicial dissent, not the right to drink a class of wine bacanse thay deamed it to be imoral. Ore must suppose that had they existed at the time of christ, there would be no hope of Christianity for all of the twelve aposels would have bezn locked up for driiiking at the Last Suppar. A real true sense of literty was where aman was free to do as he liked as long as it @id not harm another. He was to be sovereign in his om liberty and person. Herbert Spencer wrote the vary essence of thié argument vhen he was editor of The Economist in i881 that he entitled “the Right > Tgrore the state.” Spencer wrote: "As a corollary to the proposition that all institutions must. be sub ordinated to the law of equal freedom, weccannot choose by admit the right of the citizen to adopt a condition of voluntary outlawcy." The a a it that, Es CSAP gas st te me toe Spencer continued: "Tf every man has freedom to do all that he wills, provided be infringes not the equal freedom of any cther man, then te is free to drop connec- tion with the state - to velinguish its protection, and to refuse paying towards its support. It is self-evident that in so Sehaving be in no way trenches upon the Libarty of others; for his positien is a passive one; and whilst passive he cannot ‘econe an aggressor." what Spencer did in this amazing and Yailliant article, was to bit it directly Like @ nail on the head. Wo are no more a free people today as was the case in many ancient tines. What Karl Marx did to all cf mankind, was to sot us back destroying everything that the Enlightenment was all. about, Re could not see past his personal’ hatred of the rich, that he was altaring the very core structure of how everything was bound together. exeedon is not restraint ugcnone person because of creed, color, or wealth, the ‘true essence of liberty is far from what we are pretending it to be today, Democracy is a Greek work and is thus comprised of "dewos" eating people and “kratoa". meaning to rule, In Athens, the concept: of government and liberty was not at all what we have today. the legislature was composed of alll adult nales who met in imion as a body OF the people. Woran and slaves did not participate, because they ware “represented” by the adult male of the femily like 2 senator represents a state. Sone of the day-to-day management was the executive function, the bursancrats. Those positions were elected, while sone were assigned by lot, ALL such bureaucrats were fully xesponsible £6 tha assembly of the Feople and there was ro such thing as any inmmity. What we have today, wetetained the tyranny with immunity against which te bad a revolution, The assenbly of the people thas sat in judgnent over the bureaucrats and possesserl at that ronent, the executive supervision powers, judicial powers, and the legislative powers to create lave that was withheld fron the bureaucrats. von if wo look at the rival to athena tha military state of Sparta, the govern- ment: structure wes built around a king, out a king who was nothing like tha tyrants of\Bagland, In Sparta, thare was a senate of 30 that was in the 5th Century Bc, a military type oligarchy, This is what prevented any unified joining of the Greeks, for this was in stark and bold contrast to the assenbly of the people in Athens. Nevertheless, there vere 5 elected eghoros who were the highest. Spartan magistrates who with the king, forned the executive branch or the bareacrats, This stricture seems to have gore back to shout 7540C and may have been then created by Lycurgus. The ophors (Mglish translation), vere in fact elected dnniatiy and avery male Gitizen wes sligible. ‘They took an cath of office on a monthly basis demonstrating that the offite vas not to be abused, ‘the power of these ephors we can only Janent does aot exist today. they had the ultimate power to even arrest, imprison): and| participate in the trial of a king himself. So you see, there was still a check against the entire system that laid in the hands of the common people. Sparta also had a council of eldars that wes called “gerousia" or "apella” meaning the assembly. Chilon was perhaps the most. fanoas ephor and was considared one cf the 7 wise men of Greece, ‘the Ronans revolted against their king in S09BC and at first the state was xuled by the Powerful oligarchy. The common people demanded & say in government, and got it. ‘the offica of “tribune vas created with moch the same povers as tha eghor. The tribune could prosecute any senator, and Was thus the check against the tyranny, Yet the elections became corrupt and eventually tha Experor after the fall of the Republic assumed this power of the “tribune” in a pretense thet he was defending the people against the senate, Our system of government has devolved back Anto a state of tyranny. Those who ara clected have merged with the bureaucrats and no longer: defénd the people against the executive or the Judicial branch. Instead of tribunes and ephors who can bring to justice the corrunt, thay hava claimed munity from prosecution, So we are caught in a matrix where the state has once again assume the powers to do as it pleases, and ve are but slaves to the will of the state, ‘The battle between Republicans and Nencarats is who will dictate and gather the spoils of raw power. 10 as long as the state assumes control of the econony and believes it has the raw power to manipulate it at: will, we are just. screwed. Instead of learning fron the past to peograss toward a new age in the future of modern Englightenment, we are dcomed to repeat the historical mistakes of the past. Ones ve understand the cyclical nature of the world we live in, we will stop this insanity of blaming one parson or group and bretend all is well until the next disaster. We must end the financial oligarchy ‘that has assumed control of the political state and holds that by the fact that the state is ad@icted to borrowing money, and believes it cannot mantain power without, ‘then, So they do as they like, Hveryone will Jock the othar way, ‘the prosecutors will continue to prosemute their competitors to pretend they are doing something for the people when they use the criminal law for Brotectionism, Government has mischaracterize “Free Trade" and allowed it to be distorted into some sort of authority to export jobs. on this subject, history is loud and clear, Trade becane the alternative to war. States increased their wealth through war whereby thei confiscated all wealth and sold the civilians into slavery. Trade truly emerged as a major evoncmic means of increasing the national wealth in Worth Africa, The entire Punic Wars between Rone and Carthago are indicative of this real heW means of acquiring wealth. Gven after Rone somily defeated Carthage, they rose again because of trado. The first wer [264-21 Re) was fought to control Sicily and Corsica. ‘To defeat Carthage, the Romans had to create @ tavy and finally with a fleet of 200 ships, they compelled Carthage to yield. Tt vas the - Second Punic War when Carthage gained land in Spain and Wamnibal renewed the var and by Jand invaded ttaly from the north. Yet Rome, Frovailed ord the fanous Scipio book the wat ‘to Carthage. Scipio defeated Hannibal, and Gemanded an indemnity and the surrender of their entire Elect. (218-207%C). But it was TRADE that reestablished the national wealth Of Carthage. The Third Punic War (149-146) amazingly 51.6 yeare from the defeat in 2013¢, The sheer ability of TRADE> tonow rebuild the economy was an example to all nations. This created the envy of Rome's tmwatating merchant: class who could not yot compete in internalional trade. It was this envy that sparked the third Punic Yer. the terms of the surrander said it all. There was bo be no werey. - Of the city population that exceeded 250,000 at the start of the var, less than 50,000 people venained alive in carthage. the survivors were all sold into slavery. The city was razed and the tarritory revaced to only a Roman province, ‘The death toll was so massive because the city wae actually taken in a huge battle moving from house to house until tha Ramns reached the citadel, ‘the Romans had imposed a demand to avoid war that was just so uracosptable, the only choice was traly'a full scale battle to the death. The Rowans demanded that everyone in Carthage must amigrate to 1.1 sone inland site, where they could never again engage in conmerce by sea. Carthage rejected ‘the proposal, and withstood a 2 year seige until their final defeat. This thiré eunic , War, was in fact a real live trade war. Yet here we are more than 2,000 years Jater, and wa still have this debate over the Eight or wrong of Frée ‘Trade. Just as Varx could not understand that the concentration of capital is the economic engine of progress just as Carthage was able to rise in just one 51.6 year cycle (6 waves of 8.6 years}, trade has been a greatly misunderstood necessity, Trade became the alternative to war, for it showed that a nation could prosper and it could result in an increase in the Living standards of its people, whereas war was no different than @ robber who does not want to work believes it is easter to stick you up than to devalop sills. Because we Live in a constantly changing dynamic world vbere nothing is stagnant for long, we misunderstand the progress of nan and that the lover the skilled lebor, the greater the cry for protectioniom. They see Jaw as an answer to block cheaper goods from overseas and point to their loss of jobs, but they ignore the fact that they are consuming & gteater proportion of the people's wealth than is justified, This is made worse by the Politica? corruption and the excessive level, Of taxation that incredses the cost of that labor“and then blames the graed of employers for the loss of jobs with no recognition of theix own Impect’ through excessive taxation that reduces international competition. it The key to furthering national wealth is practical education, that is neglected. Under the theories of the anti-free ‘trade segrent, if they had their way, all progress would cease, They cannot see, as was the problen with Marx, that as technology indeed advances, so must the skills of labor. Tn 1900, about 40% of the American work force were farmers. This dropped to 38 by 1980, Manufacture, stancely enough, remained virtually unchanged just under 258, Tt was te rise in service industry type jobs that rose from about 25% to over 408, This shows two critical points. (1) the labor unions defeated the rise 6c expansion in mnufacture | as did the rise in Marxist views of taxation; (2) the cise in the service sector was ‘both a reflection in the advarce of brain power required in lator, but also the huge increase in the size of government Goth state and federal. Marxisn thus retarded the econonic future far more than mest suspect, and it has sealed our fate in trying to get ent of thie mess. When governnent is a vast pact of the waste and the problem, it is like trying to now convince a robber pointing a gun in your face that he shoald not have a gun, Good luck) the Sixth Dinension of Sheer Complexity What we ara looking at is a dynamic and complex world where we have to step back and deck at the interactions on a global scale. We can sea the Economic Confidence Model had worked quite amazingly during ancient tims as it bas in modern tines. What ve are still ignorant of even now, is this vast new wocid of TIME that truly exists just on the horizon. Té ve can just make it there before the politicians vipe us out with their self-interest, we will see an exciting threshold to finally recune our age of thlightement that was so desperately interrupted by Karl Marx who economically has set us back into the stana sco, there is a world of complex hidden order walting an this will be a real Rvent Jorizcn A€ vo Just open our eyes and look unbiased for Once: This is our posterity that is on the line.