ees
Armstrong Economics Pia hieay 2%
SSS
Forecasting the World
The Assent of China
the New
Face
of
Xi Soping
Forser Chairman of Princeton Economics International, Ltd:
Martin A, Armstrong
Bvt tartin A, Aragtrong Gonyrighe ALL Rights Reperved, January 25th, 2011
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Martin A. Armstrong
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This Report may be foruitded as you Like vitnost care to individals or goveronents aroun the
scrld, It de prolaed er» BuilSa Service ot this Lite Wtout cost becesse of the critical fects
that Oe row Tots econnicaly. The contarts and doslgns of the ystans are An fact coprshted.
ACKNOVLEDGENENTS
I vould 1ike to thank all the foraer employees, associates, sources, and contacts
for their ongoing support and efforts to contribute to the writings T have been
able to continue through their great efforts. I would also Iike.to thank those
ho tare Looked after aoe Just Syseif, ut ay Fenty, and shown chen sure and
eindaess.
‘The purpose of these reports 42 to broden the understanding that is so vital
to our personal survival. Goverment cannot save us, and wilt only assist ‘the very
eeononie disaster we face. This is a Sovereign Debt Crisis that threatens our core
Survival. There is no plan to ever pay off debrs. The majority of debt increase is
paying Snterest perpetually to roll over without ‘any long-term plan. What you see
fn Greece ané in the States, we have run out of other people's money. The socialists
keep pointing to the rich, But to fund the deficits, ve need to borrow now fron
foreign lands, We ran out of money donesticelly end’ to support the current syster
Like Greece, ve need foreign capital, But all governments are facing the sane crisis
and ve are on the verge of another widespread governaent default. Adan Saith warned
{n his Wealth of Nations that in 1776, no government paid off their debt and had
always defaulted. We will have no choice either.
There ds no hope that politicians will ave us, for they only form committees
to davestigat after the shit-hite-the-fan. They vill NOT risk their career for a
future problem that may hit on soneone else's watch. There vas a politician and @
average tan standing on top of the Sears' Tover when a gust of wind blew then off,
‘The average man being a realisticrpessimist, immediately sees he is about to die
and begins praying. The politicians, the ultimate optimist, can be heard saying
‘Mve1l ao far so good!" ae he passes’ the “th floor.
At Princeton Economics, our migsion was simply to gather global date and to
bring that together to create the world's largest and most conprehensive computer
system and model that would monitor the vorld capital flows. By cresting that model,
Ll the fallacies of market and economic theories were revesled. The world ts far
fore dynamic and every change even ina distant land can alter the course of the
Globole econoay, Just as has been shovn with the turso!l in Greece, a CONTAGION
Takes place and sow capital beeins to look around at all countries. We can no more
comprehend the future but Looking only at denestic issues today than we can do so
{nvevery other area, such as disease and the spread of flus.
Ve Live in a NEV DYNAMIC GLOBAL BOONOMY where capital rushes around fleeing
political changes and tares Just as it is attracted by prosperity. All the people
who migrated to the United States in the 19th and 20th Centurles, canc for the same
json as those still coming from Mexico ~ Jobs and prosperity. In the 19th Century,
Anerica vas sald to have eo much wealth, its streets were pave in gold. We must now
ook to both the past and the entire world co understand where ve now are today,The Assent of China
the New
Face
of
China
Sry
Martin A. Armstrong
Former Chairaan of Princeton Hconouice Taternational, Ltd.
1nd the Foundation For The Study of Cycles
NDHASTANDING CHINA is of critical importance if ve intend to be
in any position whatscever to comprehend the years that Iie ahead.
Unless you have spent actual tine in other couxtries, you cannot
get that "fool" for its culture that allows unierstanding to begin
fo form. The key to conceptual beliefs usually lies deep vithin the
Language. Japanese call Foreigners GAT JIN, vhereby "Jin" means a
person so the actual tera means foreign devil. Of course, this meaning is not the
general feeling today about foreigners, but i¢ still reflects a underlying sense
of distrust. Because all Japanese vho are pure blood have black hair, they used
the term KIN PATZE to apply to anyone with hair other than black, yet its etrict
interpretation originally meant DLOND for "KIN" wuuus gold. Thus, words cat with
tine drift from their original weaning, yet still encapsulate the root sense of
caution. In Chinese, the term for foreigner vas WHE KAO QUI or Ocean Devil and
Soe used Ocean Ghost, meaning those people vho cane froa the sea and caused
trouble, such as the fritish acting like drug dealers in the Opium War~
Nost people are familiar with what is
called a NAPOLEON COMPLEX meaning that. they
over-conpensate for being short. This factor
will also effect nations for st is still a
hhupan trait. This has been the historic min
factor behind countries building grest armies
during the 17th and 18th centuries that is
still with us today. The RIGHT WING in most
governments still pound their chests and are
intent upon building vast areies no different
than a small guy taking working out to the
extreme to compensate for his snail stature.
‘Tis is why in the Constitution of the
United States there was the Second Anendment
that vas the right to retain arms. Jefferson
was AGAINST maintaining standing arsies for
(Z) it wasted the national resources and (2)
since the arny vas there, it led to the use
of force more-often-than-not, and the right
for citizens to retain arms vas the hope of
returning to the early Honan Republic. vhen
there was a citizen army, not professionals.
‘The RIGHT WING inside of ‘every governsent
still wants to create big armies to be macho.