Martin Armstrong:Vertical Isolated Core Structures

seymourblogger's picture
Submitted by seymourblogger on Mon, 2011-12-05 17:42

In reality, there will never be such coordination because there will never be universal agreement. Just as within each company there are these vertical isolated core structures that prevent it from truly acting as a single entity in most circumstances, when you try to group together these companies into a single unit, the same vertical isolated core structures then emerge. The competition between the firms prevents the very coordinated body that people attribute to them during a crash. The proof of this is actually the fact that Goldman needed also to be bailed out. Buffett lent them money and they were given access to the Fed window not to mention the TARP funds. They were right on the trade, but failed to consider the CONTAGION that would be unleashed. They failed to grasp that difference of a mortgage debt crisis from a mere crash in a commodity or the stock market where the scope is limited. A mortgage collapse affected the entire credit system and nearly brought down the entire house of cards. That certainly Goldman did not expect or else they would have been prepared and would have had short positions much beyond the mortgage CDO market. It easy to assume the crash was deliberate, but in reality, not even Goldman figured out the CONTAGION factor. This was in part due to the tunnel vision created by the vertical isolated core structure.


 

Nevertheless, our greatest problem is that government operates on this same vertical isolated core structure. We are doomed because there is no coherent organization and the cost of government rises under this structure as the efficiency of management declines. Our organizational skills are seriously lacking. We have far too many agencies all regulating in an overlapping manner and this increases the cost as well as the inability to actually manage anything. This was one of the complaints in the Declaration of Independence: He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance. It is time to understand this inherent barbaric tribal tendency to create a legion of regulators all operating in competition seriously disrupting the economy and ensuring we are about to collapse in a very big way. We have to gut government and it is time to reorganize the system from the bottom-up. If we are going to continue to be barbarians with a plethora of competing interests within government, then we will be headed toward civil war. Unfortunately, those who benefit from government waste will yell and scream the most. These are the very people who would sooner destroy the nation than act just once rationally for their own long-term survival. The young Republicans are refusing to compromise. They are changing the dynamics of politics more so than most expect. This is the start of the third party movement that may take hold by 2016. They are refusing to follow the party and are demanding deep cuts. They see half the problem correctly as it is the debt, but they are not addressing any lasting changes to the system ensuring this is going to get much worse. The current debt ceiling crisis illustrates the problem of fragmentation and competition. Unless there is a full scale willingness to review the entire structure and respect that everything has to be reorganized, we should expect more of the same. This is competition, not cooperation. So grab your socks – this is approaching the Barbarians at the Gate.

 

http://www.martinarmstrong.org...  An archive of all Armstrong's writing. I started reading him in 1982 but then stopped as I went into buying realestate and managing my properties. and then lost all of them. I should have stayed with Armstrong and currency trading. He is the real deal. There is no one else who understands the entire global situation the way Armstrong does. 

 

The above article from July 28,2011 Barbarians At the Gate


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He's talking about the meltdown of 08

seymourblogger's picture

which is what the movie Margin Call was about and the fictional one in DeLillo's Cosmopolis.

He's OK but not even close to Armstrong

seymourblogger's picture

Armstrong trades gold, silver, currencies but is also a theorist. This guy is a seller of info. Lots and lots of them. There are originals and there are copies of copies. I don't mean to put you down but I guess I am anyway. Sorry. Armstrong is on the level of Soros - and probably beyond - and this guy is not.

Schiff

gregster's picture

This guy's good;

I followed him multi times daily in 1984

seymourblogger's picture

and he was the only person at that time who publicly told how to trade gold by shorting the market. Doubtless there were others, but they were not public. And only those subscribing to his newsletter and hotline got the info. Also this info could not be used by a broker to trade for clients unless they subscribed under that contract with Armstrong. Many did.

I don't know of anyone else in his position that was feared enough for his acumen to warrant being imprisoned for it for 11 years. The US govt did not want him to be vocal at all and he spent a number of years in solitary, and his friends and family were unable to write or visit him. convicted murderers on death row are allowed greater privileges that he was.

There just isn't anyone out there with his analysis of the global market situation. He is a cyclical analyst going back in history to similar events that are happening today, and today it is the Debt Crisis looming in Europe and the US.

He is not an anarchist, and he is pro capitalist and espouses an open non-intervention of govt in the markets. His reasoning is sound, and he has backed it with huge profits for anyone investing with him. If you don't believe me, then follow him with paper trades and you will see for yourself.

Truly, he is the only one taking the almost orthodox capitalist position and winning with it instead of just chewing on that bone forever and forever. Soros, of course, is an example, but he differs in theoretical issues as does Buffet, who invests in a totally different way.

There just isn't anyone else out there people here, who take a certain theoretical position, can learn from without compromising their value structure.

Janet

gregster's picture

There is no one else who understands the entire global situation the way Armstrong does.

Vertical isolated core structures aside, this is quite a claim. To verify this one would have to discover more than Armstrong, in order to make the necessary comparisons. The claim that there is no one else means either that you have discovered and eliminated every other person, or that he is unique in his style. To know that he is unique would mean that every other commentator has been compared.

The CONTAGION Factor is what DeLillo in Cosmopolis

seymourblogger's picture

is describing. It is Eric Packer who sees this as he borrows all the yen there is and all those watching his trades are copying him, driving the price of the yen up and up and up until all the currencies convertible into yen, crash into nothing.

Please read Armstrong in full

seymourblogger's picture

All his documents are PDF download which means they are searchable.

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