Latest / Financial Survival Network / The World According Martin Armstrong Part IV -- De-Dollarization and the Neocons Aren't Going Anywhere #5868

Transcript

The World According Martin Armstrong Part IV -- De-Dollarization and the Neocons Aren't Going Anywhere #5868 · Financial Survival Network

• 0:00
  Because as China is reducing its purchasing of debt, I just look at it
• 0:06
  this way. If other countries are not going to buy the debt because of
• 0:10
  our geopolitical positions, then they can sell the debt, so their interest rate
• 0:15
  has to go up. So it's really you know, he may have started
• 0:20
  this on the inflationary idea, but it's taking on a life of its own.
• 0:27
  You're listening to Carrie Let's Financial Survival Network, where you get valuable information
• 0:32
  you just can't find anywhere else to thrive in today's trying times. You need
• 0:37
  the Financial Survival Network now more than ever. Go to Financial Survival and Network
• 0:43
  dot com and get your free newsletter and gift. Financial Survival Network now more
• 0:50
  than ever, And welcome you are watching and listening to the Financial Survival Network.
• 0:59
  I'm your host, Carry Lutts. Hey. It's August third, twenty
• 1:03
  twenty three, and there's so much going on the world in the world that
• 1:07
  we had to get Martin Armstrong back. Martin, you got a new book
• 1:11
  coming out called de Dollarization, and that's got a hyphen in it. I
• 1:15
  didn't know that it was spelled that way. But we should start there first
• 1:21
  with everything that's happened with a dollar. You know, the dollar was trading
• 1:26
  it near records, then it pulled back, had a substantial pullback down to
• 1:32
  under a hundred. Now it's back going back higher. De dollarization fact fiction,
• 1:38
  fancy, and de dollarize great, But what do you wind up with
• 1:42
  then the bricks currency. You know, it seems to me that the whole
• 1:48
  bricks currency is getting created because their currencies are collapsing as well, and they
• 1:53
  got to come up with an alternative otherwise they're going to be even more stuck
• 1:57
  with a dollar. Well, yeah, I mean the whole problem is that
• 2:04
  the main I would say the real backing of the dollar is the fact that
• 2:10
  the United States is kind of like Britain was before World War One, that
• 2:15
  everybody was issuing bonds in China, United States, even in British pounds,
• 2:22
  because that was the financial center of the world. If you wanted to raise
• 2:25
  money, sell bonds, you had to go to London, you know.
• 2:29
  After you know, World War Two, that simply became United States. So
• 2:34
  the real problem with like bricks or anything else replacing the dollar is kind of
• 2:39
  absurd because they're not going to be the ones financing the world. You know,
• 2:45
  so, I mean countries they'll go to Goldman, Sachs, et cetera,
• 2:50
  Greece, you know, Malaysia or whatever. You know, you really
• 2:54
  think they're going to go to uh India and Brazil and China for launching systems
• 3:05
  and stocks and stuff. I mean, you know, you have to look
• 3:08
  at this from what is really the backing of the dollar, and that is
• 3:15
  the deep financial markets that we have today. That doesn't mean it lasts forever.
• 3:21
  I mean Britain lost it, we will lose it too, but it's
• 3:25
  not to the bricks for anything of this particular nature. Most of this has
• 3:32
  turned on the fact that since the Biden administration, the neocons have gotten controlled
• 3:40
  basically everything, and so they made the stupid mistake of removing Russia from SWIFT
• 3:51
  and in doing so, you basically choreographed to the rest of the world.
• 3:57
  Hey, you either do what we say or we will remove you. So
• 4:00
  then you have China setting up chips, you have Iran setting up one,
• 4:05
  and so now the threat of removing a country from the SWIFT system doesn't carry
• 4:14
  what it used to. And you know, effectively, what they did was
• 4:19
  they divided the world economy. So globalization is really pretty much dead. And
• 4:29
  that's the real problem. So the de dollarization thing that it's got nothing really
• 4:35
  to do with our deficits or anything of that nature. It's due political.
• 4:42
  You can't be out there threatening China and Russia and then go to them and
• 4:46
  say, oh, gee, okay, fine, you know, will you
• 4:50
  lend us one hundred billion dollars so we can buy some bullets to shooget,
• 4:54
  you know. I mean it's just you know, at some point, you
• 4:58
  do not buy the debt of your enemy. And that's really you know what's
• 5:03
  taking place. Who China has been selling off us that every month, and
• 5:10
  you can't blame them. I mean, if we're going to continue this nonsense
• 5:13
  of attacking the people that actually buy the bonds, then they're not going to
• 5:17
  buy them, right, all right, So that leaves us with a banking
• 5:24
  crisis. All right. We've seen four banks fail, one bank being taken
• 5:30
  under I think it was called Is this banking crisis going to be as bad
• 5:34
  as O eight? O nine? More so in Europe rather than in the
• 5:39
  United States? And the primary problem is that they kept interest rates artificially low
• 5:47
  for too long. Europe was the worst. They went to negative rates in
• 5:51
  twenty fourteen, and then you require the banks to have collateral role and reserves
• 6:01
  and they have to be in government bonds. So you look at Europe and
• 6:08
  I mean pension funds and banks, I mean they've lost thirty forty percent of
• 6:14
  their of their capital because as interest rates go up, you know, the
• 6:18
  negative bonds, I mean, you have to reduce the price to compensate for
• 6:23
  the current interest rate. And that's really what took down the few banks in
• 6:29
  the US that um. I mean, as you know, I've I've dealt
• 6:33
  with governments and corporations for forty years and the problem is most of these boards,
• 6:41
  um, they don't have the expertise, right, and you know a
• 6:46
  lot of them are simply you know, being counters and lawyers. That's it.
• 6:53
  They don't. I mean look at SVB, I mean effectively, there
• 6:58
  wasn't anybody on the board a hand any banking experience. Well, at least
• 7:02
  with signature you had Barney Frank, right, he was very confidence inspiring,
• 7:09
  wasn't it. Oh yeah, I mean, I mean this is the problem.
• 7:12
  They appoint people to boards mainly because they have some sort of a political
• 7:19
  connection and not that they have any expertise in what the subject matter really is.
• 7:27
  I mean, I'm going to board meetings and it's just I feel like,
• 7:30
  you know, I'm teaching kindergarten. It's really bad. Yeah. Yeah,
• 7:36
  well that's for sure. So so interest rates. Though, at what
• 7:41
  point? How far can Powell take this? How far is he going to
• 7:45
  go? Actually he's got no choice. Is out of control. Yeah,
• 7:49
  because as China is reducing its purchasing of debt. I just look at it
• 7:56
  this way. If other countries are not going to buy the debt because of
• 8:00
  our geopolitical positions, then they can't sell the debt, so their interest rate
• 8:05
  has to go up. So it's really you know, he may have started
• 8:09
  this on the inflationary idea, but um, it's it's taking on a life
• 8:16
  of its own. And because you have, like I said, in Europe,
• 8:20
  you know, negative rights since twenty fourteen, the more the losses um
• 8:26
  you know, the higher they can't afford to buy anymore bonds. Right.
• 8:31
  So I mean that's the whole crisis that we have U and only the banks
• 8:37
  that are more sophisticated in least hedging their their um their portfolios, you know,
• 8:43
  can really survive. But I mean you look at SVB. I mean
• 8:48
  they basically, you know, this woke agenda is absurd. Oh you know,
• 8:52
  they're hiring people because they're a woman, or their color or this not
• 8:58
  the expertise, you know, Um, it's it's it's really pathetic. But
• 9:03
  you know you're supposed to hire the most qualified person, not the least.
• 9:07
  Yeah, it's supposed to be a meritocracy at least. That's when we grew
• 9:11
  up. That's what they taught us. You work hard, you know,
• 9:15
  you study, you get good grades. So they might worn't that best,
• 9:18
  but they were okay. And then you go and you start a career and
• 9:22
  that's your that's your pathway to the American dream. And now it's to be
• 9:28
  a favorite class and get benefits bestowed upon you by the by the ruling class,
• 9:35
  right. I mean it's kind of been stood on its head. So
• 9:39
  yeah, I mean I have clients that have sent me emails that their um
• 9:45
  sound is going through MBA and everything else and they can't get a job because
• 9:48
  they're right color or you know it's you know, they don't fill the slot.
• 9:56
  Yep, yep. Yeah. So all right, so we got a
• 10:00
  lot of problems. What about the stock market. It seems to be laughing
• 10:05
  in the face of all of these all of these major issues, even higher
• 10:11
  interest rates, so that we haven't seen that before. Actually you have if
• 10:15
  you if you don't listen to the propaganda about interest rates in the stock market
• 10:22
  and just step back and look at it. The Federal Reserve started raising interest
• 10:26
  rates as soon as Trump came to office. They were going up throughout his
• 10:31
  entire you know, administration, Yet they called it the Trump rally. Would
• 10:39
  basically when I was writing The Greatest Bullmarket back in nineteen eighty six, which
• 10:46
  we will republish because but I found it fascinating that the thinking process before nineteen
• 10:58
  twenty nine was completely opposite. As long as interest rates were going up,
• 11:03
  people were cheering because it meant that there were still a demand for money.
• 11:07
  And when you go into a recession or a depression, interest rates collapse because
• 11:13
  nobody's willing to borrow. That's why, you know, the ECB went to
• 11:16
  negative rates to try and punish people for saving. But if you don't know
• 11:22
  what tomorrow is going to bring, you don't go out and spend lavishly.
• 11:28
  And you know, I've published studies on our site. I mean, you
• 11:31
  can Google. You know, call money rates back to eighteen ninety nine and
• 11:35
  you'll see that. You know, the stock market has never peaked with the
• 11:39
  same level of interest rates twice. What it is is that if you think
• 11:45
  the stock market will double next year, you'll pay twenty percent, But if
• 11:50
  you think it's not going to go up one percent, you won't pay one
• 11:52
  percent. So it's it's really a combination of expectations and whatever the rate is.
• 12:00
  So right now, Um, you have to also ask yourself, okay,
• 12:05
  fine, I mean I've gotten some people say, well, gee,
• 12:07
  you don't think the stock market is going to completely crash? And then what
• 12:11
  do you do with the money? You run to bonds? Do you really
• 12:13
  want to buy government bonds in this atmosphere? And then they look at well,
• 12:18
  no, okay, so what are you going to do? Um?
• 12:22
  Question? You know you you you go to cash and to keep bundles to
• 12:28
  cash in your house and they cancel it. Uh. It's it's so you
• 12:33
  have a lot of people that are diversifying. That's why the real estate market
• 12:39
  is up. Um. Antique coins are stuff like this, uh, pretty
• 12:45
  much anything off the grid as long as well as the stock market and even
• 12:48
  gold. Uh. These are all tend to be tangible assets so to speak.
• 12:54
  Um, whereas the traditional flight to quality, as you know, you
• 13:00
  sell the stocks and buy the bonds. Well, this time that's not working.
• 13:03
  Yeah, nobody wants them. So what about real estate? You know,
• 13:07
  we're still having a real estate boom in Florida. Prices are up five
• 13:11
  percent year over year, and so far high interest rates have not killed off
• 13:18
  the market here and in many other markets. Is that going to continue or
• 13:22
  yeah? I mean I spoke to a local realtor that that I know here
• 13:28
  in Florida, and he says, the houses that are like one to five
• 13:31
  million dollars, people are paying cash. They're not they're not getting mortgages.
• 13:37
  They're just paying cash for this stuff. And I would say, really,
• 13:41
  what you have is if you look at the data on the Census and everything
• 13:48
  else, you'll see there's a massive shift, uh since COVID from the north
• 13:52
  to the south. I mean, I had a friend who was, you
• 13:58
  know, a an executive VP up at one of the major banks in New
• 14:03
  York, and he gave me a call and he says, hey, you
• 14:07
  want to go to dinner? I said, oh sure, I thought he
• 14:09
  was down here on vacation and so I moved. I should you move?
• 14:13
  We can work virtual now. Goldman Sachs moved its most profitable division to Boca
• 14:22
  ratan largest fund manager hedge fund manager in New Jersey. Left, I mean
• 14:28
  across the states, a couple hundred million dollars in taxes. They're all coming
• 14:35
  here, I mean from California. They've been going off to Austin, Texas
• 14:39
  mainly. So how are these states where we came from, New Jersey,
• 14:43
  New York, how are they going to survive in the future. They have
• 14:46
  to do a massive scaling back, a massive cutback, or they're waiting for
• 14:52
  another bailout like they got during COVID from the FETs. Yeah. They look,
• 14:58
  you're dealing with politics Stians who have no understanding of markets the future.
• 15:05
  To them, it's just like they need money. We'll just take us,
• 15:09
  turn us upside down and shake everything out of our pockets. That's about it.
• 15:13
  You know. There's no fiscal responsibility at all. And that's why the
• 15:20
  federal Reserve is in trouble. All right. They can raise rates and we
• 15:24
  say, oh gee, that'll make the stock market go down. It doesn't.
• 15:28
  Why because they raise rates as supposed to stop us from borrowing. All
• 15:35
  right, does it have any impact on the government. This is the exact
• 15:39
  opposite. Politicians don't sit there and say, oh, gee, the Fed
• 15:43
  raised the rates so they want us to spend less. They don't even pay
• 15:46
  attention, you know. They continue down their journey spending and spending. And
• 15:52
  because you raise the rates, this is the first time. Now you're going
• 15:56
  to have interest expenditures for the United States hit a trillion dollars. I mean,
• 16:00
  I remember Ronald Reagan. Everybody got upset of the national deadhead a trillion
• 16:06
  dollars back then. Now we're talking about the annual interest rate is a trillion.
• 16:10
  Yeah, it's just absurd, the whole thing. Yeah, it certainly
• 16:17
  is. So hey AI. We hear about AI every day. I even
• 16:21
  use it to take notes on my podcasts and my video cast now, and
• 16:27
  it's a big time saver. Basically, it does eighty percent of the job
• 16:32
  I used to pay somebody to do. Now I do the extra twenty percent
• 16:36
  in a couple of minutes of where do you see all this ending up?
• 16:40
  Um? Well, it would be very nice if we've replaced judges and the
• 16:45
  government with a high exactly voice it can't be bribed, you know. But
• 16:51
  you know, you have to understand, you know, there are some of
• 16:56
  these people that you know, talk about AI is like, um, some
• 17:00
  major threat like the matrix or something along those lines. Um. It depends
• 17:06
  entirely upon what you're going to plug into it. I mean we've been you
• 17:11
  know, I've developed AI, you know, from the nineteen seventies, and
• 17:15
  our computer is fantastic, but it's limited to the database that we gave it,
• 17:21
  which is the world financial markets of all the different countries. It's not
• 17:26
  plugged into the Internet. It's not going to answer, Gee, what's Lady
• 17:32
  God, God's dog's name or anything of that that nature. But I mean
• 17:40
  AI, uh, you know what they're doing, like with the the you
• 17:45
  know, the chat type things. I mean, it's it's impressive to somebody
• 17:49
  that doesn't really understand the coding behind it. Um. But you know,
• 17:55
  it's not really as much of a threat as long as you don't go,
• 18:00
  you know, turning it into as far as being in charge of stending missiles
• 18:06
  and things of that nature. All right, So uh, but you know
• 18:11
  they're using it with drones now. You know, one of the alarming things
• 18:15
  I find most alarming about the Ukraine War is these use of drones where you're
• 18:22
  going along minding your own business and you know, the thing hits and bum
• 18:27
  you know, basically basically they just blow you up. And they could do
• 18:33
  these swarms clear out whole cities. I mean, you know, obviously the
• 18:37
  sociopaths are running everything and nothing is off the table here Martin, No,
• 18:42
  it's not. I mean that's um you have to understand. This is why
• 18:49
  they're after Trump so much. And they also would not allow um, you
• 18:56
  know, Kennedy to come in. They have control, all right. And
• 19:02
  I mean I've met most of heads of state, you know, in the
• 19:06
  course of my career. I went to Marl Largo back in March of twenty
• 19:10
  and it was the first time I would say that Trump actually impressed me.
• 19:15
  He said that he wanted to pull the troops out of Afghanistan because he was
• 19:21
  sick and tired of writing letters to families to say their son died for you
• 19:27
  know, Goden country. And he actually said, he says, what are
• 19:30
  we doing there? They've been fighting over boarders for a thousand years. What
• 19:34
  difference, you know, are we going to make? And you know,
• 19:37
  John Bolden came out. Oh, this is outrageous. You know, you
• 19:41
  know Bolton would basically invade Canada to get one rushing. I mean, you
• 19:47
  know, that's basically what they These people always want war, and both Trump
• 19:53
  and jet and Kennedy or against war. Uh So when Trump, I mean
• 20:00
  that that drone that Iran shot down was unmanned, and Bolton wanted to launch
• 20:07
  an attack against Iran and Trump said no, it was an unmanned drone.
• 20:11
  Bottle airplane. Yeah, And he said, I'm not going to start a
• 20:15
  war because they shot down a drone. But this is what these people want
• 20:19
  to. Trump starts firing these uh neo cons and as soon as soon as
• 20:26
  Biden came in, they're all back. Victoria Newland is the queen of them.
• 20:30
  I mean, she's the number two in the State Department. Now you
• 20:33
  just had her loss blinking come out and I couldn't even believe it. I
• 20:37
  put it on my blog. He says, well, nuclear war is not
• 20:41
  that really big of a deal. It's no worse than climate change. I
• 20:48
  mean, I'm like, what, very well, you're not in the area
• 20:52
  that's targeted, right, I Mean, this is what these people say.
• 20:56
  They just live for war. Honestly, I you know, our computer on
• 21:04
  the twenty twenty four election is it shows there's no way possible that the Democrats
• 21:12
  could win. Yeah, that's not something that would stop them though. Hey,
• 21:18
  Martin Wine, I grew up the Democrats, where the party the anti
• 21:22
  war party, and now you know they wholly embrace it. And the whole
• 21:29
  military industrial complex is having a field day at the world's expense or getting rid
• 21:36
  of all the old Russian weapons. All right, Basically they're all being sent
• 21:41
  to Ukraine to get blown up and u and then they have to rearm and
• 21:45
  they're not going to buy Chinese weapons, so they're going to buy Western military
• 21:51
  weapons because you know what, the whole thing makes me realize that the Cold
• 21:56
  War was a complete scam. You know that Russia we're just really never a
• 22:02
  threat because technologically, yeah, they could throw waves of people, waves of
• 22:07
  troops, but from a technological standpoint, they were generations behind the West's armament
• 22:14
  cycle. Well, well, I think basically um NATO is the real threat
• 22:21
  because um and the previous book I published the plot to decease Russia. When
• 22:27
  I mean the neocons were against Reagan from even meeting with gorbachof oh, you
• 22:33
  can't trust the Russian and they were beside themselves and Reagan said, no,
• 22:40
  I'm meeting, you know, and because I think Russia's falling apart, and
• 22:44
  it was all right, And they were even proposing at that time that Russia
• 22:51
  joined NATO. I remember, yeah, and um, you know, effectively,
• 22:56
  you know, that ended up being the coup to take down Gorbach because
• 23:00
  they were afraid that the hardliners didn't want him joining NATO. And that's basically
• 23:06
  what all that stuff was about. But you know, NATO has no purpose
• 23:11
  if Russia is not an enemy, so they have to keep that up no
• 23:15
  matter what it is. You know, they threatened, oh, Russia is
• 23:18
  gonna invade and take all over Europe. The Russian people don't want to do
• 23:23
  that any more than the American people want to go and invade Russia and occupy
• 23:27
  that country. Those are old days of empire building. I don't think the
• 23:33
  population on either side are interested in invading other countries and occupying. That's head
• 23:41
  the states that they do that kind of stuff. You know, it's the
• 23:45
  concept of cannon fodder kind of came into the existence late eighteen hundreds when you
• 23:51
  started getting these you know, basically, I guess Napoleon, but the Civil
• 23:56
  War. But you would have thought we had advanced beyond cannon fodder. But
• 24:00
  that's what these troops on the front lines of these war of the war are
• 24:07
  their cannon fodder. And they're just throwing people into the mix. I mean,
• 24:11
  it's yeah, they don't even care, I know, and these are
• 24:15
  like but the people care, the people whose sons are going out there to
• 24:19
  fight, they care. And you know, it's I find it really distressing.
• 24:23
  We're in the twenty first century, we have AI and all these other
• 24:27
  things, and yet we're still blowing each other up, seemingly for no purpose
• 24:33
  other than perhaps a misguided ideal of reducing world population. Because when you get
• 24:40
  down to it, they view us as just a bunch of eaters that take
• 24:42
  up valuable resources and don't really produce anything. Well, you know, it's
• 24:48
  it's even worse than that. You take Victoria Newland her families from Ukraine,
• 24:56
  you know, and it's I mean, there's so any conflicts of interest here
• 25:00
  it's absurd. And then you take the dumb boss. They're all Russias that
• 25:07
  live there. Russia was right up to the river there of the Tsars before
• 25:14
  USSR. That's why you have so many Russians living in that area that was
• 25:18
  their country. I have friends here, you know, there's so many Russians
• 25:22
  and Ukrainians in Florida. Oh yeah, I mean friends. You know.
• 25:29
  I can name off probably close to a dozen people I know from the region.
• 25:33
  The weird thing is, I'll say to one guy, well, so
• 25:37
  you're Ukrainian. Yeah, I'm Ukrainian, but I grew up in Russia,
• 25:41
  and you know I speak Russian. Oh you're Russian. Yeah, I'm Russian,
• 25:44
  but I grew up in the Ukraine. And it's like, what's going
• 25:47
  on here? These people? It's literally like brother killing brother. You know,
• 25:51
  they're all kind of related here, and just find the whole concept of
• 25:57
  this war, man and man. The only thing you could say is that
• 26:04
  there's certain segments of the population, of business, of industry, the military
• 26:10
  industrial complex. They're having a field day because they get all their weapons destroyed,
• 26:15
  so a new rearmament cycle, and they get to prove them in the
• 26:18
  battle battle testing, because you know, the observers are there watching to see
• 26:23
  how everything performs. It's exactly like World War One. If you remember the
• 26:29
  fuses in the artillery shells the English I think sold off to the Germans their
• 26:37
  munitions companies, and it was a whole scandal and they just keep leaking it
• 26:42
  to one another to keep the race going. Well, Martin, I could
• 26:47
  talk to you all day, but we don't have time for that. Armstrong
• 26:51
  Economics dot com. Next time, I'd like you guys to send in questions.
• 26:56
  I'm going to address a list of questions to Martin if you don't mind,
• 27:00
  and keep an eye out for the Dedolarization book. I'm excited to see
• 27:03
  it. If you got a question for Martin, myself kl Atcarrelets dot com.
• 27:10
  And while you're at the site Financial Survival Network dot com, sign up
• 27:14
  for your free newsletter. Martin really appreciate it. You'd be well. You
• 27:18
  two, thanks a lot, take care of yourself. Thanks for listening to
• 27:21
  carry Lets's Financial Survival Network, your solution to today's trying times. For the
• 27:27
  latest, go to Financial Survival Network dot com. Financial Survival Network now more
• 27:33
  than ever,