March 16, 2025 | Capital Flows Canada, Mexico, Europe

COMMENT: Martin, I just had to commend you on your capital flow models. Anyone who does not acknowledge that is a fraud and not trustworthy. As your clip showed from 1991, everyone knew you invented that analysis. While others claim that capital is fleeing from the United States to Europe, they are fake news and inaccurate analysts. They do not understand how things work. You are correct about European intimidation to bringing cash and investments home. However, that is only among the regulated institutions that can be threatened. As your computer tracks, capital is being withdrawn globally in preparation for war.

We could not make decisions in our boardroom without consulting Socrates anymore. It is unbiased and that is the most valuable asset in times of such uncertainty.

God bless.

EKL

REPLY: Yes, you are correct. We are watching capital contracting into both the United States and Europe. It is even leaving Canada and Mexico. When Claudia Sheinbaum, a leftist, became president on Oct. 1, the first woman to ever govern Mexico, many had their doubts about how she would handle the relationship with the United States, especially if Trump won the election. She has stood up top some calling to enter Mexico and destroy the drug cartels. She opposes that idea, but some believe that there could be a war with Mexico over the drug issue. We see the capital fleeing Mexico based on those rumors right now.

In Canada, there is both capital fleeing and Canadians. This newly unelected PM Carney is only talking about RESIST while he distracts the people from the economic issues. So, exactly what does “resist” mean?  More tariffs? Some politicians are claiming Trump will annex Canada. That is simply impossible under US or International law. Economically, this does not bode well for the future.

Martin Armstrong March 16th, 2025

Posted In: Armstrong Economics

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