Higher War Chances Mean Higher Interest Rates – Martin Armstrong

By Greg Hunter’s USAWatchdog.com (Saturday Night Post)

Legendary financial and geopolitical cycle analyst Martin Armstrong says rising war chances mean higher interest rates.  You have seen the 10-year Treasury go from 4.5% to around 5.25% in a matter of weeks.  This is a very big move in a very short amount of time.  This headline from yesterday shows you how serious the war chances are with Europe and Russia.  It reads: “Putin: Ready To Use ‘All Weapons’ Including Nuclear, If Kaliningrad Attacked.”  President Putin calls this an “escalation,” and interest rates are escalating too.  Is Europe out of their minds?  What is going on?  Armstrong says, “They want war.  It is as simple as that.  They are broke. . .. The economy is failing.  Economic growth in Germany is 0.8%.  Italy is 0.5%.  You’ve got long term interest rates rising because you are beating the war drums.  You don’t want to buy their debt because it’s going to default anyhow.  This is all coming to a head.  This is why you see them bashing Putin.  Oh, he wants to invade Europe, and for what?  They have nothing of value.  They buy their energy from Russia.  This is why you had Napolean and Hitler try to conquer  Russia because it is the richest country in the world from a natural resource perspective.”

Armstrong reveals that Trump Administration contacts have been consulting with him, and he told them, “Europe is going to lose.  What I have warned Washington is China and North Korea are coming in.  Why?  Because they know if Russia fails, they are next.”

Armstrong said the recent meeting between President Trump and China’s Xi Jinping involved a discussion of war between Russia, Europe and what China might do to help Russia.  Armstrong says, “I want to keep America the hell out of this.  Fine, let them go.  There is no way China is going to allow Russia to collapse.”

Armstrong says he knows President Trump has told President Xi that America will not get involved with war between Russia and Europe over Ukraine.  Armstrong says, “I got another briefing, and I was told they understood the problem was with Zelensky (Ukraine) and not with Putin.”

Armstrong says assets are coming to America, and this trend is not going to stop anytime soon.  So, can we forget all the crazy talk of a huge crash coming to American markets?  Armstrong says, “Yes. . .. Do you want to sell all your private assets and buy government debt now?  Some people are calling this the ‘everything bubble.’  Stocks are up.  Real estate is up.  Coins, stamps, antique cars, art and this is the ‘everything bubble.’  This is cash fleeing the public sector and going to the private sector.  The London Times just did a big story on this, and it said, yes, money is going to America, but it’s going to the private sector.  When they beat these war drums over there with nuclear war, are you going to leave your money there?  You get the hell out of town.”

On gold, Armstrong is still very bullish and says, “Gold will go up because you are looking at war on so many fronts at this stage.”

Armstrong has a warning for Trump about the midterm elections.  In August, the midterms were 50/50, but now it looks like the Democrats have the edge.  Armstrong says, “We may see a Democrat victory here. . .. Bush 43 lost the midterms because of the Iraq war.  His approval was 38% and Trump’s is at 34%.  Americans do not like endless wars — period.  That is the risk here.”

There is much more in the 70-minute interview.

Join Greg Hunter of USAWatchdog as he goes one-on-one with Martin Armstrong to talk about rising rates, war, gold and the 2026 Midterm Elections for 10.03.26.

After the Interview:

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