Posted  Originally on Sep 2, 2026 by Martin Armstrong |  

I have warned, but nobody seems to listen, that war NEVER unfolds when everyone is fat an happy. This stupid decision of imposing sanction under the theory that they will punish the people and cause them to rise up and overthrow their governments fails to ever work Sanction were impose on Cuba in 1960 and are still there.

This stupid theory of imposing sanction assumes that economic pain will logically lead to political change. However, in reality, this often backfires. Instead of turning against their leaders, targeted populations (like in North Korea, Cuba, or Iran) often rally around the flag, viewing the sanctions as an external attack on their sovereignty. The sanctions imposed on Russia I found in a conversation with a Russia I was asked: “Why does the West hate us so much?” These sanctions are not causing the Russian people to rise as they do in theory only.

So, while the theory behind U.S. sanctions is to coerce, deter, and promote values, the outcome is frequently a form of containment, simply making it very expensive and difficult for a rival nation to operate globally, rather than actually forcing a regime change or policy reversal. This leads to creating permanent enemies.

Sanctions have become a permanent feature of U.S. foreign policy less because they perfectly achieve their goals, and more because they are a powerful, low-risk tool for expressing U.S. power in a multipolar world. However, this is entirely back by the fact that the dollar is the reserve currency and that the US is the largest economy. But imposing sanctions also reduces US economic growth the same as the current Tariff war.

Removing Russia from the SWIFT System and threats against China if they to not comply with US Neocon demands, has led to China creating s competing CHIPS system and the abuse of using the dollar as a weapon is actually setting the stage for the eventual decline of the dollar system.  These Neocons understand nothing about economics.

This is why our computer is projecting that China will Become the New Financial Capital of the World displacing the United States. If these stupid Neocon remove everyone from SWIFT who they do not like, guess what, the US becomes isolated and the dollar will no longer be the reserve because these morons have used it as a weapon.

We published that forecast back in 2018 and targeted 2027 as a critical turning point. We will update this for the 2026 WEC. The Export-Import Bank of China has a loan balance of over 2 trillion RMB dedicated to Belt and Road Initiative (BRI) countries, covering more than 130 nations . China has become the world’s largest bilateral official creditor.

The issuance of “panda bonds” in China’s financial market is a key mechanism for providing credit. Besides Egypt, other issuers include the African Export-Import Bank and the Brazilian company Suzano.

Shift to RMB lending is unfolding on a global scale and the Neocons are too stupid to look at economics. They were probably bullying kids in the school yard skipping economics altogether. There is a trend where China is encouraging, and in some cases requiring, borrowing countries to take on loans in RMB rather than USD. This helps protect borrowers from some currency risks but also creates new ones if their own currency weakens against the RMB.

China restructured Kenya’s loans which has prompted interest from other nations, including Ethiopia, Mozambique, Zambia, Pakistan, and Indonesia, who are reportedly considering similar restructuring to convert their USD debt to RMB debt.

China restructured Kenya’s loans primarily by converting three major railway loans from U.S. dollars to Chinese yuan, but combined this currency switch with traditional debt relief measures that provided the bulk of the financial benefit. The Restructuring Agreement was laid out:

1. The restructuring applied to three loans from the China Exim Bank, totaling about $3.5 billion, which financed the construction of Kenya’s Standard Gauge Railway (SGR). The agreement involved:
2. Currency Conversion: Switching the loans from U.S. dollars to Chinese yuan.
3. Interest Rate Margin Removal: Waiving the original margins of 3% and 3.6% on two variable-rate loans.
4. Extended Grace Period and Maturity: Adding new grace periods and extending the repayment terms.

China understands the game and they are leaving behind a bunch of Neocons who always impose sanctions, threaten to remove nations from the SWIFT system, and cannot see past their own nose that the world is moving away from these idiots who have used the dollar as a weapon in an international war that they are losing.