Armstrong Economics Blog/Sovereign Debt Crisis
Re-Posted Apr 20, 2020 by Martin Armstrong
QUESTION: Mr. Armstrong; I am a new reader. I was wondering if you agree with Trump that the stock market will make new highs.
Thank you for your time
ANSWER: The market will make new highs, just not this instant. However, it will not make new highs because the economy will be strong. It will make new highs because governments have abused their power and their debts are far too excessive. Europe will be the first to default on its debt in a clever manner of transformation. The European Central Bank is dead in the water. They can offer no solution and have turned to ask for the cancelation of all paper money and the issue of federal coronabonds.
Capital will flee from government debt into equity when the people begin to realize we have reached the end game.