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On several
occasions I have written about Nick Nicolaas. Mr. Nicolaas is the founder,
president and CEO of Mining Interactive. Mr. Nicolaas brings over 37 years of leadership,
management, marketing and financing expertise in the junior mining field to
the table. He has been involved in the forming and structuring of private and
public companies including financial consulting services, corporate
communications, and investor relations to assist in the creation of strong
after market support and subsequent shareholder value.He is one of the most
sought after consultants in the world of Rare Earth Elements (REE's) in the
world.
During a recent conversation he
introduced me to a man named Martin Armstrong and his economic business
cycle. It is based on pi X 1000
= 3141 days or 8.6 years. Rather than go into a long winded explanation of
his economic model I strongly urge all my readers to go to visithttp://www.martinarmstrong.org/economic_projections.htm
and read more about this fascinating man.
Please see the model below.
Discovered in the 1970's by dividing the number of major
panics into a given time frame Martin Armstrong's 8.6 year pi cycle
(piX1000=3141 days or 8.6 years) has had many direct hits on various market
indexes, commodities and currencies producing billions to one odds against it
being just a meaningless coincidence. Indeed, Armstrong's cycle gives dates
down to the day years and decades ahead of time. Armstrong's is eerily
precise. It is so precise that the CIA and Chinese government tried to
acquire his super-computer model after his amazing prediction of the crash of
1998 to the day.
The SEC recognized that his predictions were so accurate
that they assumed he was trading on inside information. When Mr. Armstrong
refuted these allegations he had his constitutional rights stripped from him
and his Constitutional right to a speedy trial was taken away from him. Did
the founding fathers of America want future judges and politicians to ignore
the Constitution? What would the founding fathers do to officials who ignored
the Constitution?
Recent events in the world's stock markets show the
accuracy of his model, the markets sold off right on his forecasted date of
Feb 27, 2007. He said in effect that everything would rise up into 2007 -
including the stock markets, housing and especially hard assets like
commodities. The fact that the hard assets peaked last spring (gold, copper,
etc.) shows that capital flows are currently focused on the stock markets
world-wide, it is likely that they will continue up and commodities should
resume their bull market for the next major leg up. We will see $100+ a
barrel oil and Gold well over $2000 - even 3 or $4000 according to some
estimates.
According to Mr. Armstrong’s model we will be
entering into “Primary Wave 3” that is going to take the Dow to
20,000 in the coming years, gold and commodities should keep moving up too.
You don’t need to be a rocket scientist to know that
all hell has broken loose in the markets. We have suffered one of 5 major
crashes over the past 200 years, and coming down with a velocity only
exceeded on two other instances in history, we can see much more clearly now.
The housing and mortgage issue that I was concerned about in early 2007
certainly turned out to be a very unpleasant event with the US government
having to step in with a 700 Billion bail-out package for the financial
institutions that used leverage and derivatives to speculate in unsound
mortgages. In retrospect Martin Armstrong's pi cycle showed the high in the
US financial indices back in February of 2007 which produced a mini-crash,
that turned out to be the warning shot fired which led to about a 50% loss in
the stock markets in one year. Mr. Armstrong also wrote in 1999 that by late
2007 it would be obvious that there would be a serious problem with the
economy. Mr. Armstrong’s model predicts
that the Dow Jones Industrials can have a huge rally, I presume approaching
20,000 before 2015 and while I did think that was a possibility before, I now
think that is pretty unlikely.
After viewing a live webinar put on byGannGlobal.com yesterday, I think it worth noting that a market that
declines with this much velocity and by so much is likely to take out the
initial panic low that we saw on Oct.10, 2008. It seems like it would be a
miracle now for the markets to resume a major bull market. According to the
Armstrong Economic model June 15th is the next pi cycle low, and while
I think the markets are likely to keep going down, Mr. Armstrong’s
model has been spot on for so many years I will be forced to take the
contrarian point of view and keep an eye out for his predictions and when
there is evidence that he continues to be right I will act accordingly.
I pray that this is not going to get too ugly but I think
we can expect to see unemployment rates move up aggressively over the next
couple of years. While I do not have the advantage of Martin's 32,000
variables super computer model, I will continue to interpret his model using
just my brain.
My concern here is housing and unemployment. If they continue breaking down into
the lows of 2009 or lower as it appears they are doing, things may get a
little rough. The next major move for the economy should be Martin's mid 2011
date. I firmly believe that gold and commodities will go up as the dollar
weakens. I will continue to study his model as he has been eerily right so
far.
"There are more things in heaven and earth, Horatio,
Than are dreamt of in your
philosophy."
---Hamlet Act1 Scene 5
Stay tuned. I will be posting an analysis of the Silver ETF
and an video on same.
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