QUESTION: Mr. Armstrong, I know someone who attended your 1985 Conference in Princeton. He said you illustrated the huge volatility, and forecast there would be the Crash in 1987 and 1989. He said you forecast the G5 would be the source of that volatility, and that there would be a Sovereign Debt Crisis that will begin 2010. But the most amazing forecast he said you bluntly stated that marijuana would begin to be legalized in 2013. How could you have made such a forecast?

Just curious.

Thanks

JP

MARIJUANA TAX STAMPS

ANSWER: The legalization of marijuana is precisely 43 years after it was made illegal following the 1969 Supreme Court decision that led to the Controlled Substance Act that began in 1970. The legalization of marijuana takes place simply as forecast because they need money – it is linked to the Sovereign Debt Crisis. The very same pattern took place with alcohol. Turn the economy down, the government legalizes what is illegal to make money. Casinos are now everywhere.

The fascinating thing about taxes has been the thinking process behind them. Back in 1937, Congress imposed drastic new regulations and taxes on marijuana, cocaine, and opium, which was then legal. The tax on marijuana was a direct attempt to restrict its use. They were legalizing alcohol but really felt they had to be punitive with something else. The Prohibition was targeted to get Italians and Irish Catholics. This new tax targeted Mexicans.