Is War a Contagion?


Posted originally on Jun 15, 2025 by Martin Armstrong 

AE WAR M Array 6 14 25

Is War a Contagion?

World War I is certainly a classic case of war emerging as a contagion. The assassination of Archduke Franz Ferdinand triggered a chain reaction of alliances pulling countries into the conflict. That seems like contagion through formal treaties. Yet, there is also the spread of revolutions. The American Revolution saw Washington being inaugurated in 1789, while the French Revolution erupted. Then in 1848, another revolution in France inspired uprisings across Europe. The 1848 revolutions are another example of how ideas and uprisings spread from one nation to another. This is more about ideological influence rather than direct conflict spread.

But not all wars spread. Some stay localized. The Iran-Iraq War in the 80s didn’t escalate beyond the two countries. So why is that? Factors such as alliances, geography, or international intervention can contribute to conflicts. Economic interdependence is another point. Countries tied by trade might avoid war because it’s costly. That has been my point that sanctions promote war, whereas free trade inspires cooperation. Sanctions have not worked on Russia, and they have only galvanized Iran and North Korea. They deter peace and build a wall between hardened adversaries. The European Community is often cited as an example of how economic ties can reduce conflicts. Still, it then formalized a centralized government that imposed centralized laws on migrants, which has divided countries by ignoring their concerns for law and order. But does that always work? Maybe not, but it’s a factor.

Then there’s nationalism and ethnic ties. Yugoslavia’s breakup led to multiple wars because ethnic groups in neighboring areas were affected. That’s contagion through shared identities and tensions spilling over. NATO intervened and bombed Serbia simply because they were pro-Russian. NATO refused to honor the Minsk Agreement in Ukraine because the Donbas was pro-Russian, demonstrating that NATO is by no means impartial or ethical.

The United Nations is just as much a failure as the League of Nations, largely due to internal biases and ethical corruption. The Cold War involved proxy wars but avoided direct superpower clashes, maintaining a semblance of containment for image purposes. Every war that the US got itself into, thanks to the Neocons since World War II, has always been about Russia.

They might also be looking for ways to prevent war contagion. Highlighting factors such as diplomacy, economic ties, and international cooperation could be beneficial. Emphasizing that while contagion happens, it’s not inevitable, and there are mechanisms to stop it.

In conclusion, war can spread like a contagion under certain conditions, but various factors can contain it only to a point.  The idea that war spreads like a contagion holds significant weight in historical analysis, although it’s not a universal or an inevitable law. Several mechanisms demonstrate how conflict can leap from one nation to another, and that MUST be our concern right now between Israel vs Iran, when Iran is by no means standing alone, and the confrontation by the West is in motion against Russia, China, and North Korea, providing incentives to support Iran.

NATO North Atlantic Terror Organization

Alliance Systems & Entangling Commitments, as in NATO, are more of a threat of creating a global war contagion than a deterrence. Treaties (defensive, offensive, or mutual aid) can draw neutral countries into a conflict when one signatory is attacked. This is arguably the most direct form of contagion and the very design of NATO. World War I is the quintessential example of how NATO threatens the very future of Europe and the world. The assassination of Archduke Franz Ferdinand triggered Austria-Hungary’s ultimatum to Serbia. Russia mobilized to support Serbia, Germany mobilized to support Austria-Hungary and declared war on Russia, France mobilized to help Russia, Germany invaded Belgium to attack France, pulling in Britain due to its guarantee of Belgian neutrality. A localized Balkan conflict engulfed Europe and its surrounding regions within weeks. The EU hopes to drag the United States and Canada into their dream war with Russia, which has no benefit to Canada or the United States other than making Bill Gates jump for joy by reducing the population.

Charles I Cromwell

The Ideological or Revolutionary element like overthrowing monarchy, communism against capitalism, Protestant vs Catholic, or Sunni vs Shite, or Islam vs Jeudiam. Successful revolutions or ideological movements can inspire and directly support similar uprisings in neighboring or ideologically aligned countries. Fear of such a spread can also trigger preemptive interventions. Countless examples can be found in the American and French Revolutions, the Cold War, the Revolutions of 1848, and the various religious wars, from pagan vs. Christian to the Protestant Reformation against Catholics, which even led to the English Civil War. The coinage of England displayed the image of Cromwell wearing a laurel wreath (The king is dead, long live the King).

German 1918 Revolution

Even the rise of Marxism with the 1917 Russian Revolution inspired the German Revolution in 1918, which overthrew the government and ushered in the Weimar Republic. That, too, ended in hyperinflation.

Spillover Effects:

1844 Phila Nativism Riot Againt Irish

 Active conflicts create destabilizing forces that inevitably cross borders. Look at the Refugee Crisis. Mass displacement strains resources and can alter demographics/politics in neighboring states. Allowing immigration during an economic decline will always spark civil unrest, which can result in revolution and the overthrow of governments.

Rebels, terrorists, or militias may use neighboring territory as safe havens, drawing those countries into the conflict. That has always been a common practice, as in Vietnam. The Vietnam War (1955-1975) spilled over significantly into neighboring countries, primarily due to the Ho Chi Minh Trail (a vital North Vietnamese supply route) and US efforts to disrupt it, along with political instability in the region. Thailand was a crucial US ally and provided major airbases for US operations over Vietnam, Laos, and Cambodia.

Economic Disruption has also played a key role. Trade routes are severed, markets collapse, and resources become scarce, affecting neighboring countries. This has often resulted in border skirmishes, accidental incursions, or attacks on shared ethnic groups, which can ignite new fronts.

Roman Republic AU Stater 225 212BC

The Syrian Civil War spilled significantly into Iraq and impacted Lebanon, Jordan, and Turkey through refugees, Kurdish issues, and ISIS operations. The Rwandan Genocide spilled into Zaire (DRC), contributing directly to the devastating First and Second Congo Wars.

Even in ancient times, one need only look at the Punic Wars between Rome and Carthage. While Rome and Carthage were the principal antagonists, the Punic Wars were truly Mediterranean-wide conflicts. They involved extensive campaigns across multiple continents (Europe, Africa), drew in major regional powers (Macedon, Syracuse, Numidia), forced countless smaller tribes and cities to choose sides, and reshaped the political map far beyond the immediate territories of the two main rivals. The “spillover” was fundamental to the nature and scale of these wars. Rome issued its first gold coin to impress other Italian city-states to side with them.

The Danger of Victory – Power Vacuums:

A major conflict can weaken a regional power or create a power vacuum. This is what NATO and the EU are doing, sacrificing Ukraine to reduce Russia in hopes of conquest. Here, the EU is deliberately promoting war against Russia to create an opportunity to settle old scores, grab territory, and expand its influence, believing that Europe can rise again to its former glory.

During World War II, Italy’s invasion of Greece and the Soviet Union’s invasion of Finland were opportunistic moves made while the major powers (Germany, France/UK) were focused elsewhere. The collapse of the Ottoman Empire created power vacuums that drew in multiple regional and European powers, who carved up the Middle East.

Nationalism & Ethnic Kin:

Conflict involving a specific ethnic group can ignite tensions or interventionist desires in neighboring states where the same group lives (or where a rival group lives). Hitler invaded Poland because the carving up of Germany after World War I left the Germans stranded in Poland.

The breakup of Yugoslavia saw conflicts spread partly due to the presence of Serb populations in Croatia and Bosnia, drawing in Serbia, and Croat/Bosniak populations drawing in support from Croatia. Albanian populations in Kosovo and Macedonia are also linked to conflicts. This is the core issue in Ukraine since the Donbas and Crimea are ethnic Russians, not Ukrainians, but the EU and US Neocons do not care because they want war with Russia.

147 ECM Wave 51.6 1469.65 1521.25

Religious Conflict:

The most significant danger that we have currently is that this war between Iran and Israel is perceived as a religious war. With the massive influx of Muslims into Europe, the danger is that we see major civil unrest in all the major cities throughout Europe as this war is seen through ethnic/religious lines. We find that religion becomes the excuse for civil unrest and war when the economy turns down. We saw that with the Protestant Reformation, once the ECM turned down from 1516.95.

The Protestant Reformation spread through a powerful combination of technological innovation, political ambition, social discontent, religious fervor, and adaptable ideas. It is widely believed that the invention of the printing press facilitated this movement, as Johannes Gutenberg’s invention (c. 1440) revolutionized communication, allowing for the mass distribution of ideas. Pamphlets, sermons, cartoons (often crude and effective), and crucially, Martin Luther’s 95 Theses and subsequent writings were printed cheaply and in massive quantities.

Henry VIII Debased Groats

Translations of the Bible into German (Luther), English (Tyndale), French, and other languages also finally allowed laypeople direct access to scripture, bypassing the Latin-literate clergy and fueling critiques of Church practices. Luther’s German Bible became a bestseller. Many rulers in the Holy Roman Empire saw the Reformation as an opportunity to seize Church lands and wealth as the economy was turning down very hard. Kings like Henry VIII of England were dead broke and debasing their coinage. The Reformation rhetoric that called for a break with Rome prevented his bankruptcy. Gustav Vasa of Sweden used the Reformation to consolidate national power, confiscate Church property, and reduce papal influence. The powerful merchant cities, such as Strasbourg, Zurich, Geneva, and Nuremberg, often embraced reform, which was also profitable. They now controlled local churches, ended payments to Rome, and aligned with the rising merchant classes who favored reform and banking. Urban settings were also hotbeds for the exchange of new ideas. This is where history draws the beginning of capitalism, as Christians could not become bankers, rejecting the Sin of Usury.

Luther’s ideas provided the compelling religious message that resonated with existing grievances. Ambitious rulers and city councils provided the essential political protection and institutionalization. Other reformers adapted the message to different contexts, ensuring its relevance across diverse regions. Social and economic discontent created fertile ground. Together, these factors created an unstoppable wave that permanently fractured Western Christendom.

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Maxentius AU Aureus as Princeps

We see the same incentives behind Constantine claiming he saw a vision in the sky and painted a cross on the shield of his legions, who were outnumbered 2:1, because the legions of Magentius were Christian. Magnentius built the first Christian church in Rome. With his victory, Constantine entered Rome on October 29th, 312 AD, and staged a grand entrance into the city. Constantine did everything possible to pretend it was a widespread jubilation, but the people did not trust him.

ArchConstantine

The fall hid Maxentius’ scepter to deprive Constantine of his glorious victory. Constantine ordered Maxentius’ body to be fished out of the Tiber River, where he had drowned, and decapitated the corpse, parading his head on a pike through the streets of Rome for all to see. Constantine was not baptized until his deathbed. He continued to issue pagan coinage, not Christian.

Constantine certainly did not patronize Christianity alone. After gaining victory in the Battle of the Milvian Bridge in 312 AD, he constructed in 315 AD a triumphal arch that still stands by the Colosseum. —The Arch of Constantine. The arch is decorated with images of the goddess Victoria. At the time of its dedication, sacrifices were made to gods such as Apollo, Diana, and Hercules. Absent from the Arch are any depictions of Christian symbolism whatsoever.

AE Follis 325-328 Christian Symbol

This is the ONLY coin that Constantine issued with any Christian symbol. This was issued briefly once, in 327-328 AD, and is quite rare. All his other coins are standard Pagan type issues, even years after his victory at the Battle of the Milvian Bridge, which took place between the Roman Emperors Constantine I and Maxentius on October 28, 312 AD.

Constantine’s approach to pagan temple wealth was complex and not a simple confiscation. He “redirected” significant resources from pagan institutions to support mainly his own projects. Constantine did not issue a blanket decree stripping all pagan temples of their wealth across the empire. Many temples continued to function, especially in the West, during his reign. He did seize temple wealth famously using their treasures (gold, statues, precious materials) stripped from major pagan temples in the Eastern provinces (Greece, Asia Minor) to fund and adorn his new capital, Constantinople. This was presented as a transfer of imperial glory, not purely religious plunder, but it undeniably drained wealth from pagan centers. The temples in the West escaped and continued to practice compared to those in the East.

Local vs Spreading Conflicts:

A war is UNLIKELY to spread when the issues are purely local and do not involve ethnic differences that extend to surrounding nations. This includes religion. The Iran-Iraq War (1980-1988) remained largely bilateral despite its scale and regional impact. The Falklands War was also contained. The same can be said of the English Civil War (which reached a pivotal point with the execution of King Charles I in January 1649), which did not directly spread as a large-scale military conflict to other sovereign nations like France, Spain, or the Dutch Republic. However, it significantly impacted and involved other parts of the British Isles and had international repercussions:

War & Contagions:

War demonstrably can and has spread from country to country through mechanisms resembling contagion, like a disease. This has often been facilitated, particularly through alliances, ideological spillover, physical spillover effects, opportunism, and ethnic or nationalist ties. Our greatest threat with this war between Iran and Israel is that this becomes religious and spreads, especially in Europe, as a clash between Islam and Judaism, as well as Christianity, from the militants who have flooded into Europe. 

The Middle East War Escalating into European Civil Unrest


Posted originally on Jun 14, 2025 by Martin Armstrong 

Neither side is listening to international calls to back down. Prime Minister Benjamin Netanyahu of Israel said on Saturday that Israeli strikes had “paved a path to Tehran” and that the Israeli air force would soon be seen flying over the Iranian capital. Speaking to the nation in a video, just hours after several barrages of Iranian missiles sent millions of Israelis into bomb shelters and killed three people, Netanyahu said, “We will strike every site and every target of the ayatollahs’ regime.”

He added: “What they have felt until now is nothing compared to what they will feel from the might of our forces in the coming days.”

Cycle of Religion 309.6

The half-cycle turning point was 2015.2 on our models for the confrontation of religions, which coincided with the very issue we face today. That marked the relations between Iran and Israel, which became a major and highly contentious issue in 2015, primarily due to the finalization and signing of the Iran nuclear deal (JCPOA – Joint Comprehensive Plan of Action). The JCPOA Negotiations and Signing (Finalized July 14, 2015) was an agreement between Iran and the P5+1 (the US, UK, France, Russia, China, and Germany) aimed at curbing Iran’s nuclear program in exchange for sanctions relief. Israel, under Prime Minister Benjamin Netanyahu, was vehemently and vocally opposed to the deal. This is not the big one on a religious front, but increased conflicts and tensions will mark the second half of this 309.6-year cycle.

Islam vs West

This conflict is expanding, and Europe is at extreme risk of civil unrest in just about all major cities, as many will see this as the West vs Islam. Here is the PEW Research on this confrontation between the West and Islam. The real problem is that terrorism creates the FALSE image that this is all Muslims vs Non-Muslims, Jewish or Christian. A small group can alter the image of a majority. Prosecutors in New York would ensure that a black youth charged with gun possession would get an all black jury. The problem was that the Black community was biased against these Black people, seeing that their actions created discrimination against all Black people. The militant Arabs will do this in Europe, making the false image that this is all Muslim vs non-Muslim.

This conflict will likely escalate, and some may turn it into a religious issue. We must understand what is unfolding here. The image on a religious front is more than 50% in Germany, France, Britain, and Spain.

Karen Bass did Nothing – LA’s Nero While the City Burned


Posted originally on Jun 13, 2025 by Martin Armstrong 

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COMMENT: Mr. Armstrong, I have read your blog as a Democrat because I thought you seemed to be in the middle, yet not always. I grew up a Democrat, I suppose, as you did. I did not have the opportunity to shake the hand of JFK as you did in 1960. I have grown up in Los Angeles and lived here my whole life. I am throwing in the towel. I will never vote for a Democrat ever again. Our mayor, Karen Bass, is a disgrace. She was not here for the wildfires kissing up in Ghana. He was pro-Castro, and I think she used to go to Cuba in her younger days. She has supported the rioters only to take the opposite position of Trump, and has seen looting and fires everywhere. She has lost the support of most people I talk to, including the police. You are correct. The Democrats are taking positions just to be opposite of Trump, even when it makes no sense.

HW

Karen Bass Kamala

REPLY: The polarization in politics is destroying the Democratic Party as it did to the Federalists during the early 1800s. They take positions just opposite of Republicans. You had Joe Biden selling off the material for the wall just so Trump could not use it, and let the flood of illegal immigrants pour into the country.

Karen Bass is a disgrace. She encouraged these rights by supporting the rioters against her own police. She said she was “deeply angered” about raids looking for illegal immigrants. She blamed law enforcement, claiming they were attempting to “sow terror in our communities,” and her comments were so outrageous that she blamed Trump and enforcement officers for the violence.

She was actually Joe Biden’s first choice for Vice President in the 2020 election, where, if you were white or a male, you were discriminated against for that position. Then the background check discovered that she had visited Communist Cuba several times as a young woman in the 1970s. Then, when Fidel Castro died in 2016, she lamented “a great loss to the people of Cuba,” which I doubt any Cuban in America would have agreed with.

Nero Fiddled

We can see her management of Los Angeles. Can you imagine her as President of the United States? Perhaps she will become the modern-day version of Nero, as they say, who played the fiddle while Rome burned.

Democratic Billionaire Pushes “No Kings Day” Protests


Posted originally on Jun 13, 2025 by Martin Armstrong 

leftistfreespeech

The White House is preparing the largest military parade in US history to celebrate the 250th anniversary of the US Army. The celebration will now be overshadowed by the “No Kings Day of Defiance” slated for Saturday, which is expected to produce 1,800 nationwide protests.

“They’ve defied our courts, deported Americans, disappeared people off the streets, attacked our civil rights, and slashed our services. The corruption has gone too. far. No thrones. No crowns. No kings,” the group’s website declares. “Instead of allowing this military parade to be the center of gravity, we will make action everywhere else the story of America that day: people coming together in communities across the country to reject strongman politics and corruption.”

The website requests that those interested plan their own “No Kings” protest, register with the official organization, and receive a toolkit to mobilize others to join.

ChristyWalton

What pawns.

The sheep are being led by none other than Christy Walton, who is sponsoring numerous ads for the “No Kings” movement, including a full-page ad in the New York Times. That’s right—Walton, as in one of the billionaire Walmart heiresses. Christy Walton, the widow of John T. Walton, was worth an estimated $41.7 billion at one time and could never sympathize with the average American or migrant. Her fortune wields power, and she’s using it to manipulate people into believing they’re supporting a grassroots, virtuous cause. Walton is merely using her money to mobilize the minions to do her bidding.

Walton has long been a Democratic supporter, backing Kamala Harris on the campaign trail and contributing to left-wing causes, such as the Lincoln Project and WelcomePAC. Walmart, the company, has issued statements to insist that her actions do not reflect the company’s political position. Still, much of her net worth depends on the retailer’s success.

Walmart has been forced to offer low-skilled laborers higher wages to maintain minimum wage standards. They were forced to offer higher wages and better benefits to attract employees during the post-COVID labor shortage. Migrants were the solution to their labor problem. Trump ended the CHNV parole program that permitted migrants to work in the United States, instantly changing the immigration status of 500,000 noncitizens. The Supreme Court upheld the decision, and corporations, such as Walmart, were forced to terminate thousands of migrant employees who were paid less than citizens.

LeftistGroupThought

Walmart also came toe-to-toe with the Trump Administration over tariffs. The retailer said it would be forced to raise prices, and even considered adding a “tariff price” sticker on products. Donald Trump told the corporation to “eat the tariffs,” insisting the corporation was simply price-gouging consumers.

“Oligarch” has been changed to “king” for the average man to comprehend. Billionaire Democrats are plentiful, and they do not want this matter turning into “eat the rich”—Donald Trump and the conservatives are their target.

I find it quite shameful that these sheep would choose to host this event on the same day as the military parade. Yes, the parade coincides with Trump’s birthday, but 250 years of defending America against foreign and domestic threats is worth celebrating.

Walton and others will laugh from their mega-compounds as these mindless minions take to the streets, risking arrest, to support the billionaire elite who they claim to hate.

Categories:CorruptionPolitics

Legal Immigrants Favor GOP


Posted originally on Jun 13, 2025 by Martin Armstrong 

Legal immigrants once favored the Democrats by 32 points. Fast forward five years of open border policies and mayhem, and those who legally immigrated into the United States no longer support the Democrats’ stance on migration. Now, the sentiment has shifted with a 40-point shift to the GOP.

No block of voters shifted more to the right from 2020 to 2025 than the legal immigrant population. In 2020, only 39% of legal immigrants voted for Donald Trump, but that figure rose to 47% by 2024.

America is a nation of immigrants, legal immigrants, who assimilated to American culture and fought to create a life in America. They did not come here expecting a handout. They patiently waited to become naturalized citizens and greatly appreciate the new life that America has provided them.

There were discussions of riots in Miami, for example, and the general consensus was that the large legal Cuban population living there would have none of it. Those people lived under a true Communist dictatorship. They’ve experienced the destruction of a real authoritarian government, not the pretend oppression the left is claiming to feel under Trump. The ideals of the Marxist left do not appeal to the people who escaped those failed systems.

Legal immigrants are far more likely to create businesses and add to the US economy. In 2022, immigrants owned 19.1% of employer businesses, compared to just 13.9% of born citizens. Legal immigrants composed 13.6% of the population in 2019, but owned 21.7% of all small businesses. The same demographic was responsible for creating 17% of new businesses in 2023. In fact, around 1 in 5 employer businesses in the USA is immigrant-owned, which is twice the rate of native-born citizens.

Ironically, countless businesses that have burned down during these riots are owned by legal immigrants.

Protestors fail to comprehend that there is a massive difference between illegal migration and lawful immigration. Illegal migrants were encouraged to invade America under Biden-Harris and were told American citizenship was a human right. These migrants were discouraged from working through work restrictions and endless handouts. They are unable or unwilling to contribute to the domestic economy, and taxpayers are forced to subsidize their lives.

Legal immigrants had quite the opposite experience, as they underwent the naturalization process and fought to “make it in America.” Lawful immigrants have been working harder than the average American to attain the American Dream and express gratitude for the nation that provided them with the opportunity. This demographic is PROUD to be American.

America welcomes immigrants who take the legal pathway to become citizens. America has no room for people who disregard borders, disobey laws, feel entitled to public funds, and hate America and American values. Living in America is not a basic human right.

Israel Attacks Iran to Stop Trump?


Posted originally on Jun 12, 2025 by Martin Armstrong 

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QUESTION: Mr. Armstrong, either the world is using Socrates, or this is always one hell of a coincidence, which I do not believe. The defense stocks moved days before the Hamas attack. You projected that the war would start in Ukraine more than a year in advance. When are you going to come clean and explain how you do this? There was a daily panic cycle here, and this was the week with escalating volatility into the end of June, which you also forecast. HOW?

FF

ANSWER: Look, I have stated many times that when I created this model, it was for trading markets. Never in my wildest imagination did I think it would forecast wars. That cost me years of my life trying to protect the source code. Yes, this appears to be on track to escalate here in June. Our models for Iran show the week of June 30th.  Beware of July. I will do a special report on that.

Suffice it to say, I believe that Israel broke with Trump not unlike the EU. I think Israel feared that Trump and Iran appeared to be close to a preliminary agreement that included provisions about uranium enrichment that Israel refused to accept. This is all I know from my sources right now.

May CPI – Vance Angered by Powell


Posted originally on Jun 12, 2025 by Martin Armstrong 

CPI Formula

The consumer price index rose by 0.1% in May, bringing the annual rate of inflation to 2.4%. Excluding food and energy, the core CPI came in respectively at 0.1% and 2.8%.

Energy prices fell 2% last month, with gasoline experiencing a 2.6% decline that marked nearly a 12% year-over-year decrease. Fuel oil is down 9.6% for the year, but rose slightly by 0.9% on the month. Energy services rose 0.7% MoM and 6.2% YoY. Electricity ticked up 0.9% for the month; 3.6% for the year. Utilities have been experiencing a notable downtick after declining 1% in May and 15.7% for the year.

Food prices rose 0.3% on the monthly and 2.8% annually. Eggs, the media’s favorite item to watch, fell 2.7% for the month but still remain elevated by 41.5% compared to May 2024.  Meats, poultry, fish, eggs saw a significant annual increase of 7%. Dairy items are up 1.6% in the past 12 months, and nonalcoholic beverages rose 3.2% in the same period. Food away from home rose 3.9% in the past year, with food at home rising 2% in the same time period. Full service meals and snacks are up 4.3% on the annual.

Shelter is the other major pain point for Americans, with costs rising 0.3% for the month and 4% in the past year. Rentals are increasing by 4% annually, with owners’ equivalent rent rising by 4.3%.

Inflation is still above the Fed’s 2% target. The Federal Open Market Committee will meet next week to discuss rates, a hotly debated topic. Vice President JD Vance lashed out at Fed Chair Jerome Powell for not lowering rates. “The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vance wrote.

Interest rates are not some magic lever to fix job numbers or inflation. Vance, like many in Washington, is using Powell as a scapegoat for economic issues that stem from decades of fiscal mismanagement, overregulation, and government spending. Six months of a new administration cannot undo decades of failed policies. Moody’s downgraded the nation’s credit score for the first time. Powell must signal that US Treasuries remain a safe haven.

Cut prematurely, and we risk capital flight. Jerome Powell is doing his job in the face of real inflation, which isn’t malpractice. It’s what you do when you want the bond market to keep financing US debt.

US to Take Ukraine off Payroll


Posted originally on Jun 12, 2025 by Martin Armstrong 

While domestic small businesses suffered under Biden-Harris, Ukraine saw a boost in their small business thanks to billions in grants that were paid for by the US taxpayer. USAID subsidized Ukrainian businesses through co-investment programs, interest rate compensation on loans, cashback incentives for leading equipment, and direct financial support. All in all, USAID’s “Investment for Business Resilience Activity” provided $100 million in investments.

The Bureau of Labor and Statistics was altering data on domestic jobs while other branches of the government were focused on maintaining Ukraine’s workforce. The aforementioned USAID program supported over 1,050 businesses and allegedly saved nearly 18,000 jobs.

USAID was working directly with Ukrainian banks to help lower borrowing costs to small and medium enterprises. Trump immediately halted this program in January 2025. The average person simply does not understand how much money the Biden Administration was sending to Ukraine.

Biden and Zelensky

US taxpayers supported the entire Ukrainian government. Over $30 billion was sent to Ukraine in a two-year period to pay for “essential government operations.” Americans were forced to pay for public servants’ salaries, pensions, healthcare, and more. None of this includes the tens of billions spent on military-related items or humanitarian aid.

Americans did not vote to use their public funds in this manner. The domestic economy was suffering from record inflation post-COVID. Domestic entrepreneurs could not secure business loans. There is a clear pattern of one political party prioritizing foreign entities over its own citizens.

Now, the Trump Administration announced that it needs to make additional cuts to Ukrainian assistance. “This administration takes a very different view of that conflict. We believe that a negotiated peaceful settlement is in the best interest of both parties and our nation’s interests, especially with all the competing interests around the globe,” US Defense Secretary Pete Hegseth explained. The complete 2026 budget has not yet been released by the Pentagon, but Hegseth said it “provides a historic level of funding for military readiness, putting (U.S.) warfighters and their needs first.”

Using American funds to prioritize America—what a novel concept. This is why Trump and Vance had a shouting match with Zelensky during his failed Oval Office visit. Zelensky feels entitled to US funding after years of using US public funds as his personal ATM under Biden.

The European Union now funds around 84% of Ukraine’s operations. It is expected that the bloc will spend around $40 billion on external financing needs in 2025. The Ukraine Facility instrument provides €50 billion in “flexible support” for Ukraine over a three-year period. They’re using frozen Russian assets to fund this account since the EU simply does not have the money to prop up a foreign government.

This has been an extremely expensive war and it is nowhere near over. I should add that US assistance was all provided outside the regular defense budget. This occurred during peacetime in a war that in no way involved the United States. This is what happens when a foreign nation blackmails the president of the world’s leading superpower.

Biden’s crime family received over $20 million from Ukraine in “influence peddling” schemes. Hunter Biden secured $11 million for his personal company through Burisma. FBI informant, Alexander Smirnov, said under oath that Burisma selected Hunter to “protect us, through his dad, from all kinds of problems.” The text messages stored on Hunter’s laptop revealed that he openly threatened people using his father’s name while his father was the vice president. Joe Biden accepted bribes and altered US policy to support his son and line his pockets. The CCP also had the Biden family in their pocket.

Decreasing, if not ceasing, funding for Ukraine is long overdue. Imagine if those funds were invested in the domestic economy rather than laundered through under-the-table deals. Americans are not responsible for subsidizing Ukraine.

The Deporter-in-Chief – Barack Obama


Posted originally on Jun 12, 2025 by Martin Armstrong 

Once upon a time, requiring noncitizens to return home was not controversial. The left is not protesting migration; rather, they are protesting Donald Trump. Former President Barack Obama broke records for deportations under his administration and received bipartisan support.

Forcible removals reached 400,000 in 2012 alone, a record-high number for deportations at the time. Obama became the president to oversee the highest number of migrant removals with over 3 million people forcibly or voluntarily leaving the United States between 2009 and 2017. Only far-left extremist groups complained, labeling Obama the “Deporter-in-Chief.”

In comparison, George W. Bush expelled 3 million migrants, with Bill Clinton only removing 900,000. Prior to Trump, immigration rules were common sense. I could not travel to [insert the name of any country here], overstay my visa or illegally enter, and then expect that nation to financially support me and my extended family indefinitely.

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“If they committed a crime, DEPORT THEM, no questions asked,–they’re gone!” Hillary Clinton said on the campaign trail. She said that migrants who wished to become naturalized citizens should be required to learn English, pay a fine for illegally entering the US, pay back taxes, and wait in line for their turn to legally immigrate. The Democrats cheered her plan. Again, these were common-sense concepts.

ObamaDeportation

The media now remembers Obama for providing an easier path for citizenship and pandering to groups who repeated the “don’t separate families” line. Yet, Obama campaigned on the promise of removing illegal migrants because it was a danger to national security and a burden to taxpayers.

The pandemonium we see today has absolutely nothing to do with migration. Migration is the excuse to attack Donald Trump, the most hated man in politics, to cause and blame him for nationwide chaos. The Democratic Party once had values, but they no longer stand for anything other than violence and opposition without proposed solutions.

Food Inflation in Russia and Ukraine


Posted originally on Jun 11, 2025 by Martin Armstrong 

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The world’s bread basket is facing significant food inflation. Prices on groceries in Ukraine rose 22.1% in May compared to the same time period last year. Overall, CPI rose 15.9% on an annual basis as well. Fruit prices alone have soared by 17.6%, with authorities claiming it is primarily due to poor weather conditions that reduced harvests.

Ukraine and Russia are both relying on imports to offset the uptick in food prices. Ukraine exported around 10.6% of the nation’s food supply last year. The European aggregate came in at an estimated $5 billion in food exports for the year, with Poland, Germany, and France becoming top suppliers. In fact, 51.3% of all food imported to Ukraine came from the EU.

Food inflation for Russia, as of April, hit 12.66%, with general inflation resting at 10.2%. This does not account for the soaring prices of staple food products like potatoes, which have tripled in price over the past year. “On a daily basis, people are not buying smartphones and television sets,” Central bank governor Elvira Nabiullina said. “They are buying food. If prices there are growing faster, it forms high inflationary expectations.” This is precisely why I note that issues like the Japanese rice crisis are causing overall confidence to erode.

The average Russian household spent around 35% of its income on food this past April, a five-year high, as reported by the Romir think-tank. Russia is seeking exports from its remaining trade partners. Egypt exported 274,000 tonnes of potatoes to Russia this May, a 4.5X increase from the same period one year prior. Egypt also provided Russia with 13,000 tons of onions and has become a major supplier of nuts, fruits, and vegetables. Other meal staples such as carrots, beets, and cabbage have seen a surge in prices.

China has also been working to solve the potato shortage by sending Russia 65,000 tons throughout the first six months of the year. Georgia, Pakistan, Kazakhstan, and Armenia have also begun to ramp up food exports to Russia.

Both China and Egypt have profited heavily from this war from an agricultural standpoint, as each is providing both sides with much-needed food imports.

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Russia’s agriculture minister believes prices will begin stabilizing in July. As RCB Governor Elvira Nabiullina explained, the average person will first notice surging prices at the grocery store. It becomes a daily reminder that there are breaks in the system. The Russians and Ukrainians lost confidence long ago, but the situation is not improving for them. We see it everywhere with food prices leading to unrest. The reasons contributing to rising prices do not matter as the people will immediately blame the government. We saw it in the US, for example, with people outraged over the price of eggs. The Japanese are livid that the price of rice has multiplied.

The French Revolution began when bread prices surged beyond what the people could afford. The Arab Spring ignited not because of political ideology, but because food became unaffordable. Socrates picked up a shift in food inflation in 2019 before the COVID lockdowns and I have warned that it would be wise to stockpile food as that inflationary cycle did not end with COVID. While we are not at a point of revolution just yet, food prices have a major impact on overall confidence and high prices correlate with high unrest. The people will not obey when they are hungry.