By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Global economic expert Martin Armstrong says two big violent cycles are happening for the first time in 300 years. Domestic and international unrest is consuming the world. Armstrong contends, “Both of these cycles are converging at the same time, and this hasn’t happened since the 1700’s. That was the American Revolution, the French Revolution and etcetera. That was the revolution against monarchies, so to speak. This is not just Ukraine, Russia and the U.S. You have the Middle East going crazy. Gaza is starting up again with Israel. You go over to Asia and you have civil unrest in Thailand, and the overwhelming part of the population in China wants to go to war with Japan as payback.”
Why all the violence around the world? Armstrong contends, “When everyone is fat and happy, nobody cares. Everybody lives together peacefully. When you turn the economy down, that’s when people start getting mad. They lost something, and they want to blame somebody else for whatever injury they suffered. We look at the entire world . . . what you are looking at on a global scale is the emerging markets: China, Russia, South America, Brazil, South East Asia, their stock markets peaked in 2007. They have been in a declining economic trend . . . so you have the economic pressure building. This is what’s going on in Russia as well. We are making a serious mistake by thinking that Russia can’t fight. My sources say that they anticipated the sanctions on Putin would make the oligarchs turn against him and force him to back out. That’s not going to happen. We are going into a period of economic decline, and whenever that happens, government needs an external enemy.” So, when markets crashed in 2007, what did Congress do? They did investigations and went after Wall Street. They never admit it has anything to do with them. . . . If Putin were to back off, they would eat him for lunch. He would be overthrown within Russia.”
On the subject of new sanctions from the U.S. and EU, Armstrong says, “Europe is already in an economic decline, and it is a very, very serious one. Even the IMF has come out and said there are major problems with deflation, which is what you get from a Great Depression, and that is really what the EU is going through. I don’t see any hope of the EU bottoming out before 2020. It’s going to get worse.” So, is this going to lead to war between NATO and Russia? Armstrong says, “That seems to be what’s happening.”
On the Middle East, Armstrong charges, “The United States has made a complete mess of the Middle East. The real truth behind the Benghazi affair, that ambassador that was killed . . . he was effectively an arms dealer. They were providing all the arms in Libya to overthrow Gadhafi. When that was done, those same arms were sent to this group called ISIS who was against Syria. You have to realize that Saudi Arabia was really the one behind the funding of all of this. Why? They wanted a pipeline through Syria. The problem now is that everyone was trying to fund somebody else to do their dirty work, and now you have an Islamic State that is rising and it is taking territory from both sides.”
On the direction of the price of gold, Armstrong predicts, “I personally think you are going to see gold emerge as a currency of the underground economy. It’s not a hedge against inflation, and we have done every study imaginable. So, why are countries like China buying all this gold? Armstrong says, “People are buying gold, not because they think it will be going up, but simply as a hedge against government.”
On the recent strength of the U.S. dollar, Armstrong says, “The central banks only have the dollar, that’s it. It is the reserve currency. We had a former Obama economist who just came out a few days ago and said the risk to the United States is a strong dollar, and we should give up the reserve currency position. Why? Because they realize there is no other choice. What are you going to do, put your retirement money in rubles? How about Yuan? There is no place you can go. It’s only dollars.” So, is the dollar is not going to fall out of bed anytime soon? Armstrong says, “Not yet. You have to take the dollar up, and that will bring gold down short term. Also, as war begins to happen, you have to realize that capital flees from wherever conflict is. The more conflict you have in the Middle East and Europe, the more money is going to come this way (to the U.S.)”
In closing, Armstrong gave an ominous prediction and said, “The next decline we will see is going to be far worse than the last one. Each one is building in intensity.”
Join Greg Hunter as he goes One-on-One with Martin Armstrong of ArmstrongEconomics.com.
(There is much more in the video interview.)
After the Interview:
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