Martin Armstrong’s model of predicting economic turning points deserves very serious attention. [After all,] upon refusing to give his Economic Confidence Model to the CIA, Armstrong was imprisoned for 12 years until his release in 2011.
The September 1999 fall of Martin Armstrong is like the fall of gold in September 2011. Both were pushed.
In the 1990s, Martin Armstrong’s economic predictions began attracting serious attention. After calling the top of the Japanese Nikkei (December 31, 1989), Armstrong was referred to as “Mr. Yen” by the Japanese press and political luminaries such as Margaret Thatcher and Henry Kissinger were among those attending Armstrong’s annual conferences held at the Imperial Hotel in Tokyo.
The political interest in Martin Armstrong and his predictions, however, would lead to his undoing. An article in The New Yorker Magazine noted the CIA’s interest in Armstrong’s Economic Confidence Model which correlated economic and political events with shifts in economic confidence.
The New Yorker article on Armstrong, The Secret Cycle, refers to Armstrong’s 8.6 year cycles, the basis of his Economic Confidence Model. An avid student of history, Armstrong constructed a computer model, a timeline of significant historical events, based on 8.6 year cycles which allowed him to predict the 1987 US stock market collapse, the top of the Japanese Nikkei and the collapse of the Russian ruble, etc. The CIA wanted his model.
..(In 1999) the C.I.A. telephoned his firm, Princeton Economics, eager to get a closer look at his model. Agents had been watching him and were curious about how he had managed to call the collapse of the ruble. They asked if he would come to Washington and build his model for them.
Armstrong refused…[telling] his mother, They want it for all the wrong reasons (his mother had clearly taught Armstrong the difference between right and wrong). Turning down the CIA, however, would trigger a 12-year nightmare for Armstrong.
In September 1999, the U.S. Attorney accused Armstrong of defrauding Japanese investors of almost a billion dollars and ordered him to turn over enumerated assets and documents to the court—including computers with the source code for his Economic Confidence Model.
After the computers were turned over, a computer forensics expert said that 591 computer files had been deleted with X’s written over them; and, on January 14, 2000, the U.S. magistrate, Richard Owen, ordered Armstrong jailed for contempt of court.
Despite the statute limiting such contempt to 18 months, Armstrong was imprisoned without lawyers, trial or charges for over 7 years, the longest Federal civil contempt of court imprisonment in American history.
The adjudication of Armstrong’s case was to be even more bizarre. Two months after he was charged with stealing hundreds of millions of dollars from Japanese investors, the investors sued—not Martin Armstrong—but Republic National Bank and two of its executives for securities fraud.
In January 2002, Republic Bank (now owned by HSBC) agreed to repay Armstrong’s investors $606 million in return for immunity for the two bank executives and obtained a lifetime gag order preventing Armstrong from releasing information about the bank’s actions.
Although Armstrong’s investors received full restitution from Republic Bank, Armstrong remained jailed without bond or right-to-trial until 2006 when now-Supreme Court Justice Maria Sotomayer “in the interests of justice” removed US Magistrate Richard Owen from Armstrong’s case, ending Armstrong’s seven-year imprisonment for contempt of court.
In 2006, Armstrong pleaded guilty to one count of conspiracy, i.e. of commingling investor funds although contractually allowed to do so by the bank; and five years later, in 2011, twelve years after refusing to give his Economic Confidence Model to the CIA, Martin Armstrong was released from prison.
What Does Armstrong’s Model Say About The Future Price of Gold?
Martin Armstrong’s release on September 2, 2011 coincided with gold’s high of $1920. On September 3rd, the paper money cabal using negative gold lease rates flooded upward surging gold markets with physical gold triggering a 44-month decline that ended between November 30th and December 7th 2015 as predicted by Martin Armstrong…(or during a certain week in early 2016 – a date only known to his subscribers).
Today, February 10, 2016, gold closed at $1208, almost $160 above its low of $1050 in the first week of December. Does this mean gold’s bottom is now in and its upward trajectory assured? Maybe so, maybe not…Gold and silver could possibly fall again and make a new bottom as Armstrong predicted. Nonetheless, the bottom for both gold and silver is either in or soon will be. The battle against the bankers’ fiat paper money charade continues with the end now in sight and victory certain.
The crisis is now accelerating. It has been a long time coming. Its effects will be unprecedented. Buy gold, buy silver, have faith.[The original article by Darryl Robert Schoon (drschoon.com) is presented here by the editorial team of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here – sign up in the top right corner) in a slightly edited ([ ]) and/or abridged (…) format to provide a fast and easy read.] Related Articles from the munKNEE Vault:
Martin Armstrong believes that EVERYTHING is connected and this interconnectedness is at the foundation of Armstrong’s Economic Confidence Model and his ability to predict what we call the future.