Strong Dollar Could Cause Bond Market Crash-Martin Armstrong

By Greg Hunter’s USAWatchdog.com

Renowned financial expert Martin Armstrong says the biggest risk out there is the effect a strong U.S. dollar has on the global bond market. Armstrong explains, “There’s these people who keep saying the dollar is going to crash.  If the dollar crashes, the world is happier and basically celebrating.  You have half the U.S. debt equivalent in emerging market debt issued in dollars.  If the dollar goes up, they are in trouble.  Then you are going to see sovereign defaults. . . . The U.S. is not going to default, but as you start defaults elsewhere outside the country, it makes people begin to get concerned about sovereign debt.  Sovereign debt is the worst of all.  It’s not secured.  If the U.S. government defaulted on its debt, what would happen?  You cannot go down to the National Gallery and start lifting Picassos.”

So, a bond market crash is a distinct possibility? Armstrong says, “Yes.  All these things are contagions. . . . The real risk is coming from Europe and Asia.  That is the real risk. . . . There is no place to go but the dollar at this point.”

If and when a global collapse comes, it will come from China or Europe. Armstrong says, “Yes, because you don’t collapse the core economy.  It’s always the peripheral coming in.  It was the same thing in the Great Depression.  It wasn’t the fact that the U.S. defaulted.  The problem was the first bank that went down was in Austria, and it happened to be owned in part by the Rothschilds.  When people hear a bank owned by the Rothschilds went down, people started to sell off all other banks.  Then all the countries defaulted.”

Armstrong says there is going to be a major “monetary reform” in the not so distant future, and the U.S. will end up with a dollar for domestic use and a dollar used for international trade, sort of like a “domestic dollar” and an “international trade dollar.” Armstrong says, “Yes. All it is doing is replacing the dollar as the reserve currency.  That would satisfy China and Russia, and it would simply be maintained by an international board.  I strongly advise against the IMF.  It’s way, way too corrupt.”

So, is gold a good asset to have with a coming currency reset? Armstrong says, “Yes, at that point, you are talking about a hedge against government.  When you go through these monetary crises, effectively, all tangible assets rise in price, not just gold and silver. . . . Tangible assets have a value to everybody globally.  The downside is on real estate.  I would never put 100% of my money in real estate because it is not moveable.”

Fast-forward to now, and Armstrong predicts, “The economy is not going to come back. We are not going to see economic growth.”

Where is all this taking the world? Armstrong, who is an expert on economic and political cycles, says, “You have to understand what makes war even take place?  It does not unfold when everybody is fat and happy.  Simple as that.  You turn the economy down, and that’s when you get war.  It’s the way politics works.”

Join Greg Hunter as he goes One-on-One with economist Martin Armstrong of ArmstrongEconomics.com.

(Programing note: Because of the Easter weekend, there will be no Weekly News Wrap-Up and no Early Sunday Release.  The nearly 60 minute interview with Martin Armstrong will air instead.  Regular programing on USAW will start again middle of next week.  Happy Easter-Christ Has Risen.)

 

 

After the Interview: 

There is free information and analysis on ArmstrongEconomics.com. For more information about the new “Socrates” service that Armstrong will be offering, click here.  For more information about the “2017 World Economic Conference” Armstrong will be holding in both Hong Kong and Orlando, Florida, click here.

 

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Comments
  1. This sceptred isle

    Interesting that Armstrong predicts an international dollar and domestic dollar. Jim Willie has predicted the same. What would be the purpose ? Would I international dollar be strong and domestic dollar week? You still have countries such as russia and china who’s policy it is to diversify away from the dollar. Why continue to use the us dollar as the reserve currency when America derives its power from such an arrangement?

    • Hairy Herry

      WOW! You beat this Hairy Guy to that. Indeed, Jim has consistently brought this up, regardless of whom interviews him.

    • Tin foil hat

      This sceptred isle,
      “What would be the purpose ? Would I international dollar be strong and domestic dollar week?”
      The domestic dollar will be similar to the coal scrip in the old days. http://www.appalachianhistory.net/2015/09/company-store-scrip.html
      It would be back by or have the equal value of the international/trade dollar with 1:1 ratio (at least that is what the squids will want you to believe) initially. That ratio will likely get worse and worse as time progress since the domestic dollar is not back by assets.
      The international/trade dollar will be back by hard assets (non-perishable such as beach front properties or gold) and perishable assets (proven reserve of oils, foods, lumbers … ect).
      The domestic dollar will get you domestic products only. If you wanted imported goods, you would need trade dollar.
      If you don’t own an export business or a hotel caters to foreigners, you will have a hard time getting those trade dollar unless you are a banker.
      Basically, it’s just another way to screw the average folks with smoke and mirrors. The following article is more detailed in regard to the matter:

      http://www.economist.com/blogs/americasview/2013/10/cubas-currency

      “Why continue to use the us dollar as the reserve currency when America derives its power from such an arrangement?”

      Colonel Gaddafi, Saddam Hussein, Colonel Gaddafi, Saddam Hussein, Colonel…………….

      • This sceptred isle

        Ok, thanks for those articles. China and Russia will be tougher to push around though.

      • Paul ...

        Jim Willy says that one day we will have a domestic dollar and an international trade dollar … but we already have a two tier dollar system in the US … our one ounce silver coin has already taken on the role of our “international dollar” … while our fiat greenback is “the domestic dollar” … and just like in Cuba it takes about 20 domestic dollars to get one international dollar … the corrupt system here is as bad as in communist Cuba! … so what kind of dollar should people be storing under their mattress? … the domestic greenback or the international dollar? … the answer is obvious to me and JP Morgan Chase … but sadly the average American is putting the “domestic greenbacks” under their mattresses!!

        • Paul ...

          Soon the domestic “scheiss” dollar will be devalued by Trump (he wants a weaker dollar) … and it will take 760 “scheiss” dollars to buy one US Trade Dollar (the one ounce Silver Eagle)!

          • Tin foil hat

            Paul,
            ‘Everything Old Is New Again’
            Roosevelt made the dollar a two tier currency by confiscating gold.
            Nixon made the two tier currency back into one.
            The million dollar question is; will Trump return to the two tier currency system again?
            Hence, Trump will likely not confiscate gold. He may confiscate a portion of the dollar’s global reserve status to make room for the yuan.
            I don’t think the Deep State is willing to completely give up the reserve status yet.
            If we were going to have a basket of currencies instead of the SDR, we might as well use gold as the International Trade Currency.

        • Tin foil hat

          Paul,
          As long as the world continue to accept the domestic dollar rather than demanding the trade dollar. Owning PMs will be like having Marilyn Monroe as your wife in burka.

          • Paul ...

            Tin foil … If my wife was Marilyn Monroe … based upon how I hide away silver coins … I would probably convert to the Muslim religion … to keep her in a burka “just for myself ” … do you think perhaps I’m being too possessive?? … but I don’t leave my silver coins out in the open for everyone to see!!!

            • Paul ...

              Tin Foil … how about this 50-50 business proposition … we sell “burka bags” to the “closet Muslim stackers” who hide away their silver coins from public view!!