Category Blogger Martin Armstrong

Jun 6 2025

Japanese’s Sovereign Debt Crisis


Posted originally on Jun 5, 2025 by Martin Armstrong 

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Japan_Debt_Crisis_2025 INDEX 6 5 25

This is the first installment for our Institutional Clients concerning the two countries at the greatest risk of DEFAULT – Japan and Germany. We have provided the forecast for Japan’s default and explained in detail the internal battle between the Government, the Bank of Japan, and the Private Sector. This report exposes the truth about who holds what and the threat to instability as Japan also tries to cozy up close to NATO as a diversion for its fiscal mismanagement.

Investors have long fretted about the sustainability of Japan’s government debt as other nations, including Germany, are facing unsustainable fiscal mismanagement across the developed world. Japan has garnered the most attention due to its highest debt load relative to economic output and the heaviest debt-service burden. At the same time, the excuse has been that they are mostly self-funded, and as such, appearances are deceptive. Still, all Western nations are on a collision course with a sovereign debt crisis that will bring them all crashing down when the line at the door stops buying the new debt to roll over the old.

Japan’s fiscal mismanagement is not significantly worse than that of others. The pandemic, climate change, sluggish growth, and financial crises, accompanied by a lack of confidence, have led to an increase in government debt for many wealthy countries. At more than 250% of GDP, Japan’s gross debt stands out. Combined with sluggish growth and a shrinking population, many financiers and economists see it as an existential risk. The real question this report addresses is the real story behind the curtain, and when does this come to a head?

Jun 6 2025

Bitcoin


Posted originally on Jun 5, 2025 by Martin Armstrong 

Bitcon Q Tech 6 5 25

QUESTION: Why Bitcoin has been strong in recent weeks??

Best

Gerry

ANSWER: Bitcoin is the primary vehicle for money laundering. Even Canadians are using it to withdraw cash from the country. It is the same instrument as gold in all countries. Europeans are also using it to circumvent capital controls. There are rumors that a kill switch exists in Bitcoin, which could wipe out all accounts in the years ahead. I would not consider Bitcoin a store of value when the government created it. I still prefer precious metals as a safe haven for my money. Bitcoin is a trading vehicle.

Nevertheless, this pattern does not yet indicate a final, exhaustive, and isolated high. The new highs may be seen in war, as it is primarily used to extract money from countries. That is how it began, with most of the volume from China.

Jun 5 2025

Trump Blames Fed for Weak Payrolls – Media Blames Trump Tariffs


Posted originally on Jun 5, 2025 by Martin Armstrong 

Jobs

May’s private payrolls based on ADP estimates are the lowest since March 2023. Private payrolls rose only 37,000 last month, far beneath April’s addition of 60,000 and a far cry from the Dow Jones forecast of 110,000.

The financial sector rose by 20,000, leisure and hospitality saw an increase of 38,000, and construction added 6,000. Still, that was not enough to offset the losses on other sectors. Professional and business services shed 17,000 jobs, education and health services lost 13,000, goods-producing industries shed 2,000, natural resources and mining lost 5,000, and manufacturing was down by 3,000.

Mid-sized corporations gained 49,000 employees, while small businesses with fewer than 50 workers lost 13,000, and large firms with over 500 employees lost 3,000 positions. Raises grew by 4.5% while wages for job changers rose 7%.

Donald Trump is blaming the Fed. “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!” Trump said on his Truth Social site.

Europe has kept rates artificially low, and it has done absolutely nothing to prevent its economy from contracting. They destroyed pension systems and the banking sector, and still got no economic growth. Rates near zero don’t create investment when there’s no confidence and excessive regulation. It’s the same in reverse: high rates don’t stop inflation when the cause is geopolitical, not consumer-driven or based on demand.

Manipulating interest rates is no longer an efficient tool, as the issue is structural. We are in a phase of stagflation where we see rising costs without real growth. This is not driven by regulation, shortages, and geopolitical tensions. I have warned that history will turn around and blame Donald Trump for implementing tariffs. The tariffs themselves are not the cause of the current state of stagflation, but it is the easiest culprit for politicians and analysts to cite without having a deeper knowledge of the inner workings of the economy.

Smoot_Hawley

Only academics believe the Smoot-Hawley tariffs caused the Great Depression. Tariffs were merely the reaction, not the cause, to an overall decline in the global economy. War and reparations have left nations indebted to the point of financial failure.

The entire argument that the Smoot-Hawley Act caused the Great Depression is propaganda. It’s used to denounce free trade and blame Republicans, but the truth is that the collapse was already in motion from 1927, and Smoot-Hawley did not go into effect until June 17, 1930. You had sovereign debt defaults, currency crises, and collapsing capital formation. Tariffs were merely one variable of a much bigger problem. In fact, the US already had tariffs in place for over a century prior to the Smoot-Hawley Act, as that piece of legislation merely updated existing tariffs. Trade was on the decline long before tariffs.

The US was heading into a period of stagflation long before Trump took office. Franklin D. Roosevelt  criticized Smoot-Hawley during his 1932 campaign and blamed Republican leaders for being unable to “stimulate foreign trade.”

1932 Election FDR vs Hoover

As FDR state in a 1934 message to Congress:

“”Other governments are to an ever-increasing extent winning their share of international trade by negotiated reciprocal trade agreements. If American agricultural and industrial interests are to retain their deserved place in this trade, the American government must be in a position to bargain for the place with other governments by rapid and decisive negotiation… If the American government is not in a position to make fair offers for fair opportunities, its trade will be superseded. If it is not in a position at a given moment rapidly to alter the terms on which it is willing to deal with other countries, it cannot adequately protect its trade against discriminations and against bargains injurious to its interests.”

This paved the way for the Reciprocal Trade Agreements Act of 1934, which provided the president with the power to negotiate bilateral tariff-reduction agreements without requiring Congressional approval. Roosevelt then engaged in reciprocity agreements based on mutual agreements where nations agreed to lower tariffs on each other’s goods, as Trump is doing today. Yet, today, consumers are wary of the future and less likely to spend.

Every negative piece of data will be blamed on the Trump Administration. The media will proclaim that jobs are fleeing the US due to Trump’s policies, but the trend was already in motion.

Jun 5 2025

Steve Bannon Urges for the Arrest of Lindsey Graham


Posted originally on Jun 5, 2025 by Martin Armstrong 

(The above is a video from when John McCain and his neocon successor, Lindsey Graham, shook the hands of Nazis in Ukraine)

Former White House strategist Steve Bannon declared that t Republican Senator Lindsey Graham and the deep state are “dragging us into a kinetic third world war.” Graham and fellow necon Dem Senator Richard Blumenthal took it upon themselves to personally visit Zelensky in Ukraine where they urged him to ignore orders from Washington.

“Lindsey Graham’s over there saying, ‘Hey, forget Trump. I got the House and Senate. We’re going to pass it. You’re going to see something in a couple of days,’” Bannon said, referring to Graham’s legislation pushing for sanctions on Russia. “Remember that?” the former White House chief strategist, who has consistently advocated against U.S. intervention in overseas conflicts, said. “He’s stirring it up over there.”

The Trump Administration was not notified of Ukraine’s Operation Spider’s Web, an offensive drone strike that many are calling Russia’s Pearl Harbor, after one-third of Russia’s strategic bombers were destroyed across four military bases. Moscow, however, has downplayed the damages.

Blumenthal praised Ukraine for their attack that was likely carried out with weapons provided by the West. “The ever-resourceful Ukraine used creative drone warfare tactics to successfully attack Russian bombers and military assets used to kill Ukrainian citizens and destroy their country,” Blumenthal posted on X. Operation Spider’s Web uncoincidentally occurred on June 1, a key date Socrates had honed in on for our war cycle. It has now been revealed that Ukraine spent the past 18 months planning the attack. Trump is attempting to negotiate peace talks, and it is extremely unlikely that he was aware this was going to occur.

Lindsey_Graham_on Putin

Graham and Blumenthal completely undermined the commander-in-chief and US democratic process by secretly meeting with Zelensky. Then the two declared that 500% tariffs must be placed on any purchases of Russian oil, which would primarily harm China and India. These neocons do not care about diplomacy or the fact that we are amid sensitive trade negotiations with these key nations. All they see if their own thirst for conquest.

It appears Graham is partaking in a world tour to undermine the official US position on the war. He met with France’s Emmanuel Macron, who is equally as eager to invade Russia. “The theme of this engagement was that we appreciate President Trump’s earnest efforts to bring about peace and entice Putin to come to the table,” Graham said in a statement after meeting with French President Emmanuel Macron. “It is our view Putin is not responding in kind, he is not interested in peace and that he plans to continue to dismember Ukraine.”

Blumenthal mocked the President of the United States by saying he “has been played” by Putin and laughed at any efforts to negotiate peace. Graham is hoping that next week’s G7 summit can become a neocon soapbox to warn both China and Russia that the NATO powers have them in their sights. Again, this goes directly against the official position from the White House.

At the time of this writing, Trump has not directly commented on Graham’s visit to Ukraine. I have been asked numerous times if Donald Trump’s victory would equate to eliminating our computer’s projection for war. No. No one can alter a cycle once in motion. We can change the velocity at best, but everyone who has tried to alter a cycle, whether it be war or business, has failed.

It is true that Donald Trump could delay the onset of the growing global conflict BUT he cannot alter the cycle. Our computer shows that war could break out by 2027, and the financial implications will be fully felt by 2028.

Jun 5 2025

Democrats Desperate to Attract Male Voters


Posted originally on Jun 5, 2025 by Martin Armstrong 

WhiteDudesforHarrisCommunism

The Democratic Party has taken on an extreme anti-masculinity stance. This was not the case in the past when we had strong leaders like JFK who exuded class and masculinity. Gender was a fact rather than a feeling. Fast forward to today, and we have the likes of Tim Walz claiming he was selected to pander to the male vote. The Democratic Party made a $20 million investment in a campaign called “Speaking with American Men” or the SAM plan.

The SAM plan aims to study the “syntax, language and content that gains attention and virality” of American men. The strategy is to target young men who do not have a long history of voting within party lines. The party has begun to place pro-Democrat ads in video games as part of a broader outreach program, as if young men will be pleased to have their games interrupted with political jargon.

The ”man enough” ads are hard to stomach and astonishingly not a parody. Millions spent on studying how to appeal to men, and the party is still utterly tone deaf. The ads that began circulating during Kamala’s campaign state that men are “man enough” to vote for a woman and support abortion. The actors they used for the video were not heterosexual men who actually supported Kamala or the Democratic Party. The man in the video who discusses being “man enough” to braid his daughter’s hair is actually a bisexual Nigerian immigrant who has appeared in gay pornography. Another by the name of Wayland McQueen has a history of discussing why people, men in particular, must acknowledge their white privilege and feel ashamed for existing. The man who is supposed to be a bearded, rugged grandpa is unmarried and unemployed. The man portraying a rancher is a gay acting coach in real life. The Democrats failed to hire anyone from their target voter base, adhering to DEI initiatives.

“White Dudes for Harris” was a complete embarrassment. It is no different from when the Democrats attempted to pander toward black voters. Biden said, “Vote for me or you ain’t black,” and the Democrats continue to say that a red vote is a misogynistic, racist, homophobic vote. The party still assumes men declined to vote for Kamala and even Hillary simply because they were women. It’s almost as if they fail to realize that men, half of the population, have independent views and ideals.

Back to the failed SAM initiative to appeal to Gen Z voters, the Democrats asked a woman to be the face of their campaign. Olivia Julianna, the latest Gen Z political activist, identifies as a queer, plus-size, disabled, first-generation Latina. This is the person who the Democrats believe will convince men to vote blue. I am at a loss for words on this one.

Wokeheros

Rep. Abe Hamadeh described it perfectly: “Democrats declared war on masculinity and lost a generation of young men. Instead of doing any introspection as to what they did wrong, they’re going to invest $20 million studying ‘male Syntax’ to try to better communicate their radical message.”

No one would have expected the youth to turn to the GOP years ago. The pendulum has completely swung in the opposite direction. They are now the party of war and civil unrest. The Democrats took things too far and attempted to alter reality with the woke agenda. Everyone with a dissenting opinion was deemed an enemy, and thus, people turned their backs on the Democrats. It certainly does not help that the mainstream media has been forced to admit that Biden did indeed have a severe mental impairment while in office, but those who cling to leftist views would prefer an absent president over Trump. Biden’s failed student loan promise backfired immensely, and Bidenomics has financially paralyzed Gen Z. Instead of discussing how the next generation can afford a home, for example, the party remains focused on social justice warfare.

Democrats Denial

Kamala’s only platform was abortion, although that is beyond the reach of the president, and opposing Trump. The Democrats had absolutely nothing to offer the American people. As for men, the Democrats spent the last four years promoting woke ideology that maintains any and all masculinity is toxic. Men, especially straight white men, are toxic privileged persons who must be taken down along with the patriarchy. Men should vote for women candidates because men could become pregnant and need an abortion paid for by the greedy wealthy class. One truly must wonder whether liberalism should be deemed a mental illness. The Democrats can continue wasting millions on pointless studies, but that will not attract voters. Their party is on life support and unlikely to be revived.

Jun 5 2025

Trump did Call Putin


Posted originally on Jun 5, 2025 by Martin Armstrong 

Obama Peace Prize

COMMENT: Marty, you are always way ahead of everyone else. You told Greg Hunter that Trump called Putin. Why anyone listens to any commentator when they are the only ones with real contacts is beyond me. Thank you so much for everything you do. They handed Obama the Nobel Peace Prize when he was advocating the invasion of Syria. You are the only one who truly advocates peace through experience and history. I can sense the frustration in your writings and interviews. Your views are more than a million. Please hang in there.

Paul

ANSWER: I know. They gave the Nobel Peace Prize to Obama simply because he was the first black president, when he has always advocated war with the Neocons. I think that turned me off, that it was just another dog and pony show.

I was screaming that Trump had to come out and disavow Zelensky because that scum-bag was saying he notified Washington with no mention of Europe, which was a deliberate tactic to try to get the US into war with Russia. I knew that Putin is far more intelligent than any European leader, and that applies collectively, even throwing in this traitor to his own country, Zelensky. President Donald Trump said he spoke with Russian President Putin over the phone for more than an hour, signaling that “immediate peace” was not in the cards.

Europe is stabbing Trump in the back every second, and you cannot expect Putin to agree to any terms when Europe wants war because they are crumbling internally. The computer has already laid out that the EU will break apart, and with bloodthirsty Neocons like Kallas, she will ensure that Europe will NEVER agree to peace for without war, the Europeans are going to rise up and storm the EU parliament with their pitchforks.

Trump said: “We discussed the attack on Russia’s docked airplanes, by Ukraine, and also various other attacks that have been taking place by both sides,” Trump wrote in a post on Truth Social. “It was a good conversation, but not a conversation that will lead to immediate Peace.”

Trump added that Putin indicated to him that Russia will “have to respond to the recent attack” on Russian airfields that Ukraine confirmed over the past weekend.

Zelensky Tries Assassinate Putin

Keep in mind that Zelensky has attempted to assassinate Putin on May 20th, sending drones after his helicopter. Zelensky is acting on the orders of NATO, and they are desperate to try to get Putin to attack NATO. Thus, out of desperation, they look to try to remove Putin in hopes of getting a Russian Neocon who will retaliate emotionally, and that will start WWIII. Because this attempt to assassinate Putin by Zelensky on orders from NATO, Britain, and France failed, it was an attack on the strategic bombers.

Ukraine_Hryvnia Y Array 6 16 24 Flatlining

There is NO PEACE possible, and the only SOLUTION is what Rome did to Carthage – the complete annihilation of Ukraine. Our computer has gone flatline in Ukraine. I have NEVER seen this before. The Ukrainian people MUST overthrow Zelensky, take back their country from NATO, London, and Paris, or there will never be a country of Ukraine again.

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London and Paris do not care if there are any Ukrainians still alive. All they care about is using Eastern Europeans as cannon fodder to reduce Russia, so they can walk in and grab the spoils. WAKE THE HELL UP! Boris Johnson has continually interfered to ensure that there will never be any peace. Ukrainians are being sacrificed on the NEOCON altar of hatred.

Jun 4 2025

Jihadists and Kurds to Fight Alongside US and Turkish Troops


Posted originally on Jun 4, 2025 by Martin Armstrong 

Syria Map

The United States has quietly redeployed troops to Syria as the nation adjusts to the installed temporary government. Ahead of their arrival, around 1,200 Syrian military members completed a graduation ceremony for the 56th Division of the newly formed Syrian army.  The Hayat Tahrir al-Sham units are the primary fighters who have fought against Assad for many years. Other Syrian units are linked to Turkey, in addition to the Syrian Democratic Forces and Syrian Free Army, which are both supported by the United States.

“The course is part of a military, physical, and tactical training program aimed at raising the readiness of fighters and enhancing their combat efficiency, in accordance with the approved plan for qualifying the armed forces,” the Syrian Defense Ministry said. Maj.-Gen. Mohammed Khair Hassan, the new deputy defense minister, was previously sanctioned by the US for human rights abuses against the Kurds. This comes as no surprise as the CIA flipped the current Syrian President, Ahmed al-Sharaa, a former jihadist, to align with the West. Ahmed al-Hayes, the new commander of the 86th Division, was also previously sanctioned by the US.

Syria can now rebuild a larger army as it has support from US-allied Turkey and Qatar. Uyghurs who escaped China are now volunteering to fight for Syria. Some of the Uyghurs are supposed members of the Turkistan Islamic Party (TIP) led by Abu Muhammad al-Turkistani (translation: father of Muhammad the Turkistani). Turkey has funded these rebels, and that became possible only because Israel destroyed Hezbollah.

Middle_East_2025

The US initially did not want foreign troops fighting within the newly formed army, but has since changed its stance, particularly for the Uyghurs, who cannot return to China and will be forced into loyalty. Although the US claims it is removing some military bases from Syria, the truth of the matter is that they have already had a hand in reshaping the new Syrian militia.

ISIS

“The US has endorsed a Syrian government plan to absorb thousands of former rebel and foreign fighters, many of whom once fought against the Assad regime, into the country’s restructured national army,” explained Tom Barrack, the US envoy to Syria. We now have former ISIS members fighting alongside US troops. Barrack is also the US envoy to Turkey. “What I can assure you is that our current Syria policy will not be close to the Syria policy of the last 100 years, because none of these have worked,” he told reporters.

Despite the prior sanctions on current commanders for human rights abuses against the Kurds, Barrack insists that the Kurdish Syrian Democratic Forces (SDF) is a “very important factor” and a US ally. Turkish President Tayyip Erdogan dismantled the Kurdistan Workers Party (PKK), and has accused the SDF of “stalling” to integrate into the Syrian militia.

Erdogan has the largest military in the Middle East, and in fact, is the second-largest military force in NATO behind the US. Turkey has yet to display the full force of its power, but Erdogan has dreams of restoring Turkey to the glory of the Ottoman Empire. Turkey is primarily Sunni, as is Qatar, and now Syria, now that Shia Assad has been ousted. There are still Shia Alawite among the ruling elite in Syria, for now.

Erdogan believes Israel is a threat to Turkish stability, calling its current actions the “Greater Israel” project and accusing the nation of attempting to extend its power throughout the Middle East by seizing Gaza. The land of Israel once belonged to the Ottoman Empire. He has criticized the UN and fellow NATO members for arming Israel. Erdogan believes he is the voice for all Arab nations and has described his “neo-Ottoman” aspirations.  The SDF forces have said they are on good terms with Israel, which is precisely what Erdogan fears as he does not want the Kurds to align with Israel.

2024_07_28_21_34_00_Erdogan_says_Turkey_might_enter_Israel_to_help_Palestinians_Reuters

Erdogan spoke favorably of Syria in 2024, stating Turkey would not allow the nation to fracture. “We cannot allow Syria’s land to be divided once again. We cannot accept any provocation to prevent Syrians from returning to their homes. We will not stand by and watch as those who are emboldened by foreign powers try to set the region on fire. We seek security, peace, and prosperity for everyone. Once again, I congratulate the brotherly Syrian people for this magnificent revolution,” the Turkish president stated.

Now, they can get the pipeline from Qatar to cut off Russia’s energy sales to Europe. The US may be looking at this from a business perspective, but Turkey sees this as a step toward neo-Ottoman aspirations. Socrates predicted that the Syrian civil war would begin in 2011 and last for 13 years. The next major target on the war model for Syria is 2027. Turkey and the US clearly are not aligned when it comes to foreign policy in the Middle East, but are currently working as an alliance to integrate the likes of jihadists and Kurds to compose a new military stronghold in Syria.

Jun 4 2025

Incoming US Centralized Federal Government Database — When Data Becomes Power


Posted originally on Jun 4, 2025 by Martin Armstrong 

PlanatirData

If you were unfamiliar with the American analytics company Palanatir Technologies, prepare to hear about it on every news channel in the coming months. Donald Trump secured the presidency twice because he was the anti-establishment candidate. The White House has tasked Planatir with developing an extensive centralized federal database to house the personal data of every American citizen.

In March 2025, Donald Trump signed an “Information Silos” executive order focused on “removing unnecessary barriers to federal employees accessing government data and promoting inter‑agency data sharing are important steps toward eliminating bureaucratic duplication and inefficiency.”

ThielMusk

Planatir was a clear choice. At least three DOGE employees formerly worked at Palantir, and co-founder Peter Thiel has supported both Trump and Vance on the campaign trail. Peter Thiel, who also co-founded PayPal with Elon Musk, donated around $1.5 million to Trump during his 2016 Presidential campaign. Thiel spoke at the 2016 Republican National Convention and joined Trump’s transition team after he won. Thiel did not contribute to the Trump campaign in 2020 and stated he wanted to remain neutral by declining to back any political candidate in 2024 financially.

J.D. Vance would not be in his current position without Peter Thiel. Thiel spent $15 million helping JD Vance secure his Senate seat in the 2022 election. The two men met in 2011 after Thiel gave a speech at Yale Law School and developed a close friendship, with Thiel becoming a mentor to Vance and guiding him as he transitioned from law to venture capital. First, Thiel secured Vance a seat at Mithril Capital, another firm he co-founded. Vance went on to launch his own firm called Narya Capital, and Thiel heavily invested in his project. Thiel provided the doorway for Vance to reach key players in Silicon Valley who would go on to fund his political aspirations.

Thiel2016

Going further, Peter Thiel introduced J.D. Vance to Donald Trump in 2021 at a meeting in Mar-a-Lago. Trump went on to support Vance’s 2022 Ohio Senate run, and as we know, tapped him on the shoulder two years later to run beside him as vice president.

Palantir has received $113 million in government contracts since Trump and Vance entered the White House. The Department of Defense awarded Palantir an additional $795 million last week. The company experienced a 45% YoY increase in government revenue in the first quarter of 2025 alone. The stock itself rose over 80% since Trump and Vance took office.

The Internal Revenue Service (IRS), Social Security Administration, and the Department of Education have already begun working with Palantir engineers to develop the most extensive federal database in US history. Social security numbers, medical claims, tax filings, bank information, immigration records, education records, debt—every piece of information that various agencies have collected on American citizens will be transferred tothe coming centralized database.

The agency has long worked with the US government. Former President Joe Biden awarded the company a contract during COVID through the Defense Department and Centers for Disease Control and Prevention to track vaccine distribution.

Alex Karp, the other founder of Plantir, said his company was focused on “the finding of hidden things” within massive databases. One can imagine the patterns that the government will seek from the American public. Yes, the government already has everyone’s data, but this centralized database will yield tremendous power and grant the government the ability to easily and instantaneously access every single trace of data their various agencies have compiled on US citizens.

The New York Times reported that Palantir employees are urging the company to reconsider this contract as they are worried it will damage the company’s reputation.

“We act as a data processor, not a data controller,” a spokesperson for Palantir said. “Our software and services are used under direction from the organisations that license our products: these organisations define what can and cannot be done with their data; they control the Palantir accounts in which analysis is conducted.” Essentially, the firm is stating that they merely compile the data that the government provides to them.

Government databases are routinely hacked. The threat of abuse is massive. India, Brazil, Estonia, and Pakistan are among the other nations that have compiled centralized databases on their citizens; however, no comparison has garnered more attention than China’s National Citizen Identity Information Center (NCIIC).

Digital ID 2

China boasts the most comprehensive and extensive citizen database in the world, containing data on over 1.3 billion citizens. The government has instant access to the lives of its citizens. Healthcare, education, legal information, banking—any and every possible pinch of data that could be gathered goes into the database. China has also collected biometric data from its citizens, including fingerprints, and in some instances, voice samples and facial scans have been recorded. The NCIIC is directly tied to China’s infamous Social Credit System, whereby the government assigns a score to each citizen based on their behavior.

The government could easily create digital IDs based on this centralized database. The United States has never defaulted on or canceled its currency. But what would happen if it became necessary to avoid a collapse? CBDC.

This initiative has sparked significant backlash among Trump’s supporters, who believed he was against government overreach. DOGE helped streamline government functions and reduce excessive waste. Some believe the database will help government agencies perform their tasks more efficiently, unaware of the sheer power this system will contain. Donald Trump is the President of the United States—he is the establishment now. The true regime change and restructuring of the system will not come until after 2032. In the meantime, Americans are now at risk of living under a dystopian surveillance state where their every action is monitored and tracked. It remains to be seen what “patterns” the new system will be seeking, but rest assured that personal capital will be of major interest to the US government as its debt rises.

Jun 4 2025

Canada Has no Gold Reserves – They Sold Them.


Posted originally on Jun 4, 2025 by Martin Armstrong 

MAA 400 Ounce C

Holding a 400 oz Gold Bar – Central Bank Standard

QUESTION: Hello Martin – Here in Canada, we have a vexing question – why no Gold Reserves at BofC? USA has a date with destiny aka Ft Knox Audit that Trump and Bessent
seemed engaged on this file but are preoccupied lately with a litany of distractions, I’m 74 with health issues surfacing, which rearrange one’s priorities – many millions of Boomers
in same boat – but that’s the price you knew was coming

jw

The Bank of Canada building

ANSWER: Canada’s lack of significant gold reserves is the result of a deliberate policy decision spanning several decades, primarily driven by the following reasons:

Storage & Security Costs: Holding physical gold requires secure vaults and insurance, incurring ongoing expenses.

Opportunity Cost: Gold pays no interest or dividends. The Bank of Canada (BoC) decided it could achieve better returns by holding interest-bearing assets like foreign government bonds (US Treasuries, German Bunds, etc.) and deposits.

The Shift to More Liquid Assets: The BoC prioritized holding foreign exchange reserves (primarily US dollars, euros, yen, etc.), which are highly liquid and easily used for direct intervention in currency markets to stabilize the Canadian dollar (CAD).

Canada began the process of gradually selling off its gold in the 1980s, when gold rallied to $875 on January 21, 1980, and then began a 19-year decline to $250. Canada significantly accelerated its gold sales during the 1990s and early 2000s under the leadership of Finance Minister Paul Martin and Governor Gordon Thiessen, aiming to optimize reserve asset management. By 2016, Canada sold its last significant holdings. As of today, Canada’s official gold reserves are reported as zero tonnes (or negligible amounts – e.g., 77 ounces reported in 2022, worth a trivial sum relative to total reserves). In essence, Canada decided that the costs and lack of yield associated with holding large gold reserves outweighed the traditional benefits. They opted instead to hold foreign currencies and bonds that are easier to use for market intervention and generate income, relying on the strength of the Canadian economy itself to support the value of its currency.

Brown Gordom PM 2007 2010

Gordon Brown, as Labour Chancellor of the Exchequer (1997-2007), authorized the sale of a very significant portion (roughly half) of the UK’s gold reserves. He was a member of the Labour Party, which viewed gold as a rich man’s toy. He sold approximately 395 tonnes of gold. The sales took place between July 1999 and March 2002. This represented about 58% of the UK’s total gold reserves at the time (which were around 715 tonnes before the sales). After the sales, the UK’s reserves stood at about 310 tonnes, where they remain today. The sales occurred during a period when the gold price was near a 20-year low, averaging around $275 per ounce. Shortly after the sales concluded, the gold price began a historic bull run, rising dramatically over the next decade to peak over $1,900 per ounce in 2011. This timing led to massive criticism that the UK sold at the absolute bottom of the market, potentially losing billions of pounds in potential value. The period is often referred to as the “Brown Bottom” in financial circles. Brown was ignorant of how markets function. He announced in advance the strategy to sell its gold reserves, so the market held back, anticipating a greater supply. The proceeds were invested in foreign currency and government bonds. While these assets generated interest income, the capital appreciation of gold vastly outstripped the returns on those bonds over the following years.

The head of the Bank of Canada during the main phase of Canada’s gold reserve sell-off (mid-to-late 1990s) was Gordon Thiessen (born 1938). He served as Governor from February 1, 1994, to January 31, 2001. Thiessen spent his entire career within the Bank of Canada, joining in 1963.  However, it was his predecessor, John Crow (1987-1994), who began reducing its gold reserves significantly in the 1980s. While the Bank of Canada managed the sales operationally, the ultimate decision to sell the gold rested with the Government of Canada (specifically, the Minister of Finance and the Department of Finance). The Bank acted as the government’s agent in this matter.

Jun 4 2025

VIRAL Interview: World War III & Europe Expected to Fall


Posted originally on Jun 3, 2025 by Martin Armstrong