Armstrong Economics Blog/ECM Re-Posted Jun 29, 2022 by Martin Armstrong

The West has forced Russia into its first foreign debt default since 1918. You really have to wonder exactly how our world leaders rationalize their reasoning. Strangely, this was actually cyclically on target. It was two groups of 6 waves of 8.6 years making it 104 years, It is interesting how Socrates had targeted that as well. We are in the Sovereign Debt Default mode. As I have said before, we will see that start in the emerging markets which have already begun. It will then spread to Europe and eventually end up with the United States coming in last.

While our politicians cheer forcing Russia into default, these morons only look at stopping Russia from borrowing. They have relieved it of debt servicing and that means the losers are Western institutions which are primarily pension funds because they got a better rate in the face of deplorable rates in the West. This will create more of a financial crisis in the West and these funds will then turn to their respective governments for compensation since they caused the default.

The Federal Reserve is pushing rates higher as I warned because they are blamed for inflation. It does not matter that it will fail and created more inflation and spur the emerging market sovereign default. That is the ONLY tool they have under Keynesian Economics.

My bet is when the history books are written of this period, they will classify our world leaders as the worse possible gathering of incompetent people who are leading the world DELIBERATELY into World War III.  I thank God I am not 18 years old. I get to leave this insane world that is now just simply nuts. I had one reader comment that they must be too old because they do not even understand all these labels like a non-binary person.

In my days, there was just someone who was Gay, Bisexual, and Heterosexual. We knew the difference between a man and a woman. Even in Thailand, guys that had their sex changed called themselves lady-boys. I feel like my grandfather who was born in 1894 and died at 99 back in 1993. I bought him a 70″ TV so he could see it better. He said to me, he didn’t like it. I asked what was wrong Pop? He said it plays more commercials than the old one.

He saw it all. The invention of electric lights, cars, planes, and TV. Today, there are so many labels and if you use the wrong one they are offended. I think it is time for a singular label – Hey you! Historically, the more labels you create, the greater the division, and the faster civilization crumbles to dust. That’s what 2032 is all about.