Are you tired of economists always getting it wrong when predicting the economy’s direction? Look no further than the Economic Confidence Model developed by Martin Armstrong, which has been remarkably accurate in forecasting economic trends. Despite its success, academia continues to ignore Armstrong’s groundbreaking discovery.
The 1960s was a pivotal time for Armstrong, where he noticed the discrepancies between his Economics and Physics classes. While Economics preached randomness and the manipulation of the economy to prevent recessions, Physics emphasized that nothing was random. This contradiction led Armstrong to question the validity of traditional economic theories.
During the 1960s, Armstrong witnessed the collapse of the fixed exchange rate system and the ensuing “Everything Crash.” This turbulent period shaped his understanding of the interconnectedness of various asset classes and their impact on the global economy.
The pressure on Bretton Woods mounted as inflation rose, leading President Kennedy to remove silver from coinage in 1965. This move signaled the beginning of the end for the gold standard as gold prices fluctuated wildly, culminating in the collapse of Bretton Woods in 1971.
Academia’s reluctance to accept the existence of a definitive business cycle stems from their adherence to interventionist theories, such as Marxism and Keynesian economics. These theories advocate for government intervention to achieve economic equality, a concept that Armstrong vehemently opposes.
Despite resistance from academia, Armstrong’s research has found support from former Fed Chairman Paul Volcker and Arthur Burns. Their acknowledgment of the business cycle reinforces Armstrong’s belief that economic trends are cyclical and predictable.
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