Posted originally on Dec 17, 2025 by Martin Armstrong |
Christine Lagarde is now warning that Europe faces an “existential crisis” unless urgent reforms are enacted. What she is really admitting is that Europe has reached the end of the centralized model. These are 28 independent nations that were never intended to operate as a single homogeneous culture or economy.
Europe’s problem is not monetary policy. Central banks do not create growth. They merely move liquidity around the system. Growth comes from capital formation, innovation, and confidence. Europe has systematically destroyed all three by punishing success, attacking private enterprise, excessive taxation and regulations. “Would rock-bottom interest rates or QE change the barriers I was talking about? No,” she admitted after years of failed policy.
Lagarde claims that internal trade barriers are now strangling Europe, which is astonishing only because those barriers were intentionally created. Every new regulation raised costs and reduced flexibility. Environmental mandates, tax harmonization, and bureaucratic oversight did not make Europe competitive.
“There will be pushback from multiple corners… from people who say: ‘We’re very happy in our corner of Europe, leave us alone,’” she said. The mass socialized project of ensuring the health of all 28 member states is a failure. Nations do not want to curb their economic growth to build up the economy of another nation. These nations also do not necessarily want to invest billions into a war when Europe is not technically at war. “We did so for COVID because it was a matter of survival,” Lagarde said in response to collective defense funding. “Defence is equally a matter of survival and emergency,” she said, calling it “a perfect case in point” for common issuance.
Capital has been fleeing Europe for years, not because of interest rates, but because confidence has collapsed. When governments constantly change the rules and treat capital as an enemy, long-term investment disappears. Europe has borrowed to maintain living standards rather than to increase productivity. That is the classic path of decline. History shows repeatedly that when debt rises faster than output, systems break. What Lagarde calls an “existential crisis” is simply the moment when that reality can no longer be ignored.
This is not a problem that can be solved with reforms from Brussels. The euro was destined to fail from the outset. The computer has been warning since the dawn of the euro and eurozone that the day WILL come when Europe fragments and nations once again choose sovereignty over centralized control.
Posted Posted originally on on Dec 17, 2025 by Martin Armstrong |
Payrolls in the US declined by 105,000 in October, followed by a 64,000 uptick in November, according to the delayed nonfarm payrolls report by the Bureau of Labor Statistics. Unemployment now sits at 4.6%–a four-year high.
The November jobs data was delayed because a 43-day federal government shutdown disrupted the normal collection of labor market surveys. That alone introduces uncertainty, yet it also amplifies the significance of the patterns we do observe.
Naturally, a portion of lost jobs in October were due to the government shutdown, but the downward trend has emerged. Around 162,000 government positions were shed in October, followed by an additional 6,000 in November. These jobs are inconsequential as they do not add to the economy. October was the third time in the past six months that payrolls went into negative territory. Per usual, previous reports were revised downward. August’s report was revised to show a decline of 26,000 jobs compared to the initially reported 26,000, with 11,000 more jobs lost in September.
The 64,000 additional jobs in November may have beaten expectations, but averaged around 35,000 net jobs per month based on recent readings, which indicated stagnation rather than expansion.
Health care was responsible for 70% of new hires last month, or 46,000 positions. Construction also experienced a notable gain of 28,000. Transportation and warehousing decreased by 18,000 as AI takes over those positions. Leisure and hospitality shed 12,000.
The number of people holding more than one job increased, as did the number of discouraged workers and those adding part-time jobs to make ends meet to 8.7%. This high has not been seen since August 2021 when the US economy was slowly recovering from lockdowns.
December’s report will be released ahead of the Federal Open Market Committee’s meeting in January, but the Fed cannot change the labor market through rates. The central bank cut rates three times this year and nothing changed. Expect slower growth, rising unemployment, and a re-evaluation of rate policy in early 2026.
Posted originally on Dec 17, 2025 by Martin Armstrong |
QUESTION: Marty, Socrates has forecast a global recession into 2028. Unemployment remains low, yet layoffs continue to make headlines. Inflation has slowed, but grocery prices keep rising. Corporate profits have climbed, but small businesses are struggling. Europe is imploding as you warned they would face a depression, while we have stagflation. We are also entering a period of increased earthquakes and volcanic activity, as you forecast. You also forecast that we will be entering a period of dramatic population decline going into 2040. At the 2024 WEC, you said the Democratic Party was moving toward a split. All of this is a backdrop to your war forecasts. You also forecast that China would surpass the United States a decade ago. You said that AI is like the Internet, which also displaced jobs. Is all of this part of the reorganizing of the world post-2032?
Ken
ANSWER: Yes. I have explained before, the birth rate declines the richer a country becomes. The Roman Emperor Augustis (27BC-13ADF) passed Family Laws for this very reason. The average age for a girl to have her first child in 1933 was 23 years old. That is now reaching 30 years old and the birth rate is collapsing. This is part of the reason why they have let in the migrants. By 2030. the birth rate in the UK will be short 1 million babies while there will be 1 million more pensioners. The pension system are ponzi schemes that were based on the presumption that the population was always rising. The entire financial system is in crisis.
The US, Japan, Europe, and even Singapore are facing population collapse by 2032. France reported the lowest birthrate since 1919. The typical excuse is that having children is a burden. It is too costly and the future is too uncertain. When my parents were living, one salary supported the family. Today, because of excessive taxation, it takes two salaries and people are not confortable with that.
We are also in a transition period. Our most significant risk is like the 19th-century transition to the Industrial Revolution. Marx and others did not understand the transition process. They saw a farmer now as a factory worker and the capitalist made money from his labor, while ignoring the creation of jobs.
It is a Schumpeter version of creative destruction. The old establishment collapses, replaced by the new economic trend. Marx was influenced by Aristotle, who also did not understand the transition as Athens became the world’s new financial capital. Brokers were encouraging farmers to produce more because they could sell grain to other city-states. Aristotle called the men who made money from money. Aristotle saw that this was changing the Villa Economy, where people were self-sufficient and were being transformed into a market economy.
The transition to the Industrial Revolution ignited socialism/communism. These radical ideas of monetary equality rather than civil right equality led to class warfare. By 1912, Teddy Roosevelt launched the failed Progressive Party. But by 1913, their hatred and class warfare gave us the income tax to punish the wealthy and this level of monetary resentment led to two world wars. All of this is a trend that unfortunately leads to war as the final culmination of class warfare and hatred.
Communism collapsed 72 years after the upheaval of 1917. The Treaty of Rome was signed in 1957. The 72-year Revolution Cycle brings us again to 2029. Socialism is collapsing the same as communism in Russia and China. The radical idea of the 19th century which have killed hundreds of millions in the name of equality, are coming to their same inefficient realization. This is why you see Europe desperate attacking free speech etc.
There are times when earthquakes and volcanoes cluster together. That took place during the 19th century. That led to the year without a summer in 1816 and Napoleon was defeated by two volcanoes. The year 2025 should have produced more volcanoes and earthquakes. We just had a double earthquake one in Japan and then in Alaska.
Japan sits on the western edge of the Pacific Plate, where the Pacific Plate subducts beneath. Alaska sits on the northern–eastern edge of the Pacific Plate, where the Pacific Plate subducts beneath. Japan and Alaska are on opposite sides of the Pacific Plate and both are part of the Pacific Ring of Fire as both experience megathrust subduction earthquakes. The computer simply looks at the data and calculated the cycles. This does not look like it will calm down before 2032.
Posted originally on Dec 16, 2025 by Martin Armstrong |
🚨 BOMBSHELL: Border Czar Tom Homan just confirmed they’ve located over 62,000 unaccompanied kids who vanished after Biden’s open border disaster let them in.
Mass migration through open border policies is inhumane. I may often focus on the economic implications, but it is crucial to understand how these policies have destroyed the very people they claim to protect. Thousands of men, women, and children have died in their attempt to reach the West. Unaccompanied minors have gone missing—millions of children lost—most likely becoming victims of human trafficking organizations.
Border czar Tom Homan announced that 62,000 children have been rescued from forced labor and sexual slavery through the Trump Administration’s border control policies. “Over half a million children were smuggled into this country under Joe Biden,” Homan said. “They lost track of 300,000. President Trump committed on day one that we will do everything we can to find every one of these children. We know many of them are in sex trafficking. Many are in forced labor. Many are being abused,” Homan added. “I can’t discuss some of the mistreatment we found out about. President Trump again proved why he’s the greatest president in my lifetime. Over 62,000 children rescued.”
Sadly, this figure is a mass underreporting since the government does not know how many children have gone missing. Under Biden, the Immigration and Customs Enforcement (ICE) released nearly 300,000 notices after detention who were unaccompanied, in a foreign nation alone. Joe Biden, Kamala Harris, and every proponent of open border policies has blood on their hands. Based on this small scaled sample, around a quarter of a million CHILDREN ARE MISSING! No one had been looking for them.
Former HHS Secretary Xavier Becerra became Biden’s scapegoat after he publicly failed to answer questions surrounding missing minors. Their goal was to lower the number of minors in US detention facilities to appease the “kids in cages” crowd who believed vulnerable minors would be better off “free” to roam the US. These children never stood a chance. Some of the children were released to unvetted sponsors with little to no documentation.
The left insists these minors are happily living with relatives and merely hiding from the big bad authorities. In truth, hundreds
A woman was leaving a church in Savannah, Georgia, when an unknown man poured acid over her body. The woman survived but has second and third-degree burns covering 50% of her body and will be permanently disfigured. At this time, authorities are not labeling this as a hate crime.
Acid attacks have become more commonplace in countries with excessive immigration from Islamic nations. The United Kingdom, for example, has the highest rate of acid attacks across the West, with 1,244 offenses happening since 2022. Why is this happening?
The answer can be found in the Quran, and specifically, the chapter on The Women:
Surah 4:56 “Indeed, those who disbelieve in Our verses – We will drive them into a Fire. Every time their skins are roasted through We will replace them with other skins so they may taste the punishment. Indeed, Allah is ever Exalted in Might and Wise.”
Surah 4:57 “But those who believe and do righteous deeds – We will admit them to gardens beneath which rivers flow, wherein they abide forever. For them therein are purified spouses, and We will admit them to deepening shade.”
I have not seen any media outlet stating this clear, concrete fact. Yes, people have misinterpreted religious texts since the dawn of time. But Islamic EXTREMISTS who have flooded the West believe this literal translation. Not only do women deserve “punishment” by having their skin “roasted through,” but Allah will show favor to the men carrying out the execution.
Again, extremists are taking this literal interpretation and applying it to their new taxpayer-subsidized lives in Western nations. There is a word for this punishment— vitriolage. Places like Bangladesh have had to impose the death sentence to prevent extremists from attacking women. It is one of the cruelest, inhumane forms of violence that is becoming commonplace in Western societies due to open border policies. Yet another open border import. Western women and Islamic ideology do not mix. This was a HATE crime carried out by a person who has no place in Western society, or any society for that matter.
Posted originally on Dec 16, 2025 by Martin Armstrong |
The glory that was Greece is of another day. The EU is dominated by LEFTIST all following Marx and assume that they can just order people to comply under penalty of one thing or another. Greece has implemented laws requiring taxpayers to provide proof of spending 30% of their annual income through electronic payments, imposing fines for those who only use cash. This move aims to reduce tax evasion and increase government revenue in a country with a significant shadow economy.
The Great Hunt for Taxes
Greece has implemented measures to force cashless transactions in an effort to kill the underground economy. The government aims to reduce tax evasion and increase revenue by requiring citizens to use electronic payments that began in 2020. Taxpayers must provide proof of spending 30% of their annual income through electronic receipts. The citizens of Greece must meet that requirement to avoid a penalty of up to 22 % on the shortfall.
The Greek government believes that transitioning to a cashless economy will help combat the underground economy, which has been a significant issue. Estimates suggest that undeclared goods and services accounted for a substantial portion of Greece’s GDP. BITCOIN was created by the NSA – no Japanese fictional character named Satoshi Nakamoto. (Satoshi)=means “wise,” “clever,” or “quick learner.” 中 (Naka) means “Middle,” “inside,” or “central.” 本 (Moto) means “Origin,” “base,” or “book.” The name means Wise Central Book, which is precisely what the government wants – 100% taxation. Greece is now forcing people to abandon cash in preparation for the Digital Euro to eliminate the underground economy making everything 100% taxable even that $100 Christmas gift to a grandchild.
Many Greeks are resistant to these changes, viewing them as another form of tax increase and loss of liberty. There are concerns about privacy and the practicality of enforcing such a system. Consequently, there has been a massive exodus from Greece with nearly 1 million have fled since 2010 generally for economic reasons. Greece remains in a sovereign-debt crisis and the higher they impose taxes the less economic activity. Youth unemployment over 55%.
Historically, the first target an oppressive government seeks to control is always the press. Once they control the press, as they do today with all the FAKE News, that is the beginning of the decline and fall of not just LIBERTY, but of the nation and in the end our civilization. This is the real danger of main stream media. They are promoting World War III and they blocking individuals targeted by the government as they did with COVID. Once in power, government assumes it is the sovereign and represents society. They confound the people with government, leaving no distinction between them. With socialism, they convince themselves that they act in our best interest when it is always to just retain power. The people are the true sovereign of the nation – not those in power.
Yet they accused Snowden of Treason for telling the people that the government was illegally monitoring them. Diane Feinstein revealed to the world her unconstitutional statement clearly claiming it is the government who constitutes the nation not the people. Although Chisholm v. Georgia (1793) was overturned by the 11th Amendment, giving States the right not to be sued claiming sovereign immunity. The Court held they did not so in 1795, the government showed it first walk down the path of tyranny and held that government is above the law. Nonetheless, in that decision we find the most direct Constitutional challenge to tyranny.
Justice James Wilson’s opinion is the most famous. He argued that in the United States, ultimate sovereignty rests with “the People of the United States,” not with the state governments. He stated that the Constitution was ordained and established by “We the People,” and therefore, the people are the sovereign, and the states are not sovereign in the sense of being immune from the people’s will as expressed in the Constitution.
The statement that “the people do not have the right to overthrow the government” is a core principle of authoritarian, absolutist, and totalitarian systems throughout history and in the present day. This idea is not typically associated with democratic or republican systems, which are founded on principles of popular sovereignty (the idea that the authority of the government is created and sustained by the consent of its people).
Justice Scalia admitted that we live under tyranny. He wrote in a letter: “If there was any constitutional issue resolved by the Civil War, it is that there is no right to secede.” Hence, “We the People” are purely economic slaves. We have no right to dissent, no right to secede no matter how authoritarian the government becomes. In the EU, it is even worse. There is no right for the people to vote for the head of the EU. All the people who make decrees NEVER stand for election and that was the intentional design to prevent the people from having any say whatsoever. This is what is coming to a head by 2032. When governments usurp the same powers held by a monarch, the divine right of kings, history warns the end is not far behind.
The UK has also now introduced rules requiring digital asset traders to report personal data for tax compliance starting in 2026 — but this is about reporting, not spending minimum requirements. UK government and HMRC are implementing reporting rules for digital platforms and digital assets to improve transparency and combat tax evasion — focused on reporting income rather than requiring a minimum level of digital spending.
EU-wide tax initiatives tend to focus on information exchange, reporting rules, digital invoicing, and anti-fraud measures rather than imposing spending quotas on individual taxpayers. For example, the EU’s Central Electronic System of Payments (CESOP) requires payment providers to share data on cross-border transactions to help tax authorities monitor VAT fraud, but does not impose spending minimums on individuals.
Wikipedia
EU information-sharing directives strengthen cooperation between tax authorities across countries to tackle evasion but don’t mandate minimum digital spending percentages. The EU is hunting money like never before. This is indicative of the own sovereign debt crisis that is coming to a head. Of course, Greece won’t have to worry once the EU cancels the paper currency sooner than later.
originally on Posted Dec 15, 2025 by Martin Armstrong
Democratic states are insisting on taxing tips to defy Donald Trump. That’s right—a popular piece of legislation that is seemingly bipartisan has been met with partisan defiance from blue states with representatives who favor rebelling against Trump over the well-being of their constituents.
The One Big Beautiful Bill includes a No Tax on Tips stipulation that prevents the IRS from grabbing cash tips under $25,000. Linemen and factory workers are not taxed on overtime under this bill as well. Illinois, Maine, New York, California, Massachusetts, Connecticut, Hawaii, and the District of Columbia are deliberately preventing residents from enjoying this tax break without valid cause.
Illinois claims it needs to continue taxing tips at the state’s 4.95% flat income tax level because the state needs the revenue. Common sense shows us that governments ALWAYS spend more than they earn in taxation. Senator Craig Wilcox is attempting to introduce legislation to push back against Governor JB Pritzker and the Illinois Democrats. “This is effectively a tax hike on the people who can least afford it,” Wilcox stated. “Democrats cannot claim to support working men and women while blocking measures that would provide real, substantive relief.
Colorado maintains it is “decoupling” from federal tax provisions, formalizing taxes on tips and other forms of income. Governor Jared Polis of Colorado said that the change would cost the state $90 million annually, and the state should decide how it steals and redistributes money through social programs. Fields of Advance Colorado accused lawmakers of “balancing the budget on the backs of workers” as legislators passed bills such as HB 1296 that demand the state receive a portion of overtime pay.
New York Comptroller Thomas DiNapoli criticized the tax deduction as perhaps too democratic. Only 6% of New York workers receive taxable tips, after all, and they apparently deserve to be shaken down by Uncle Sam like the rest of us.
These governors are admitting that their budget deficits are too steep to benefit the people in any way. These are the same people who tout raising the minimum wage during campaigns to pretend they are for the working man. A majority of these unfunded state budgets are spent on social programs. There is simply no logic to this political theatre aside from “anything but Trump.”
Posted originally on Dec 15, 2025 by Martin Armstrong |
Your speech and social media usage could land you in jail in the United Kingdom, but now, authorities will be monitoring your emotions. Technology has enabled nations to become increasingly Draconian, with eerily detailed information available to government agencies at all times. Residents around the UK are well aware of the CCTV cameras monitoring their every move. The Home Office would now like to use that footage to monitor civilian behavior and facial expression to identify criminals.
The technology may be employed at known suicide hot spots to identify anyone who may seem distressed. Yet, the example was merely discussed as it is the most palatable. Facial recognition technology will be cross-referenced with mugshots in the national crime database. Everyone is a potential criminal—your face and likeness exist within a government database, and your file is ever-expanding.
Ministers would like police to have full access to citizens’ information, from passports to drivers’ licenses, that will be stored in a centralized database. There’s no need to ask for identification since the authorities will already know who you are before approaching you. These cameras will identify the clothes you wear, hats, bags, accessories, and of course, your vehicles.
Crime and Policing Minister Sarah Jones said, “Confident, safe, and consistent use of facial recognition and similar technologies at significantly greater scale requires a more specific legal framework. This will ensure law enforcement can properly harness the power of this technology whilst maintaining public confidence.” I highly doubt this move will “maintain public confidence,” instead, citizens will undoubtedly know that the government sees them as a potential threat and their guards must be up at all times.
The Association of Police and Crime Commissioners asked for access to doorbell cameras and body cameras when crime scenes are searched, even if that occurs in a private domicile. “’These technologies are increasingly invasive and sophisticated. If they are to gain the trust and support of the public… they require robust and independent assessment prior to deployment, meaningful oversight and accountability to the public when things go wrong,” the agency commented.
There has not been an instance in history when increased government surveillance led to a safer or happier nation. Governments are desperate and see control and confidence fading from their grip. The West will become increasingly Draconian as we move through this private wave because they believe the people are responsible for their crises.
Posted originally on Dec 15, 2025 by Martin Armstrong |
Porsche owners across Russia were unable to start their vehicles without warning. The German automaker claimed the sudden immobilization was due to an issue with the Vehicle Tracking System, a satellite security feature intended to protect against auto theft. In reality, Porsche admitted to the world that automakers have the ability to control modernized cars in real-time.
The loss of satellite connectivity signaled a potential auto theft and, therefore, an immediate deactivation. The engine immobilizer turned on simultaneously for hundreds of vehicles across Russia without warning. The blackout that affected every model post-2013 that contained the tracking satellite programming. Some owners reported success after disconnecting their car batteries for 10 hours, and others managed to reboot the VTS module, but the majority instantly lost access to transportation.
Porche denies any potential wrongdoing. No hacking organizations have come forward. The manufacturer insists it was a mere malfunction that just so happened to target vehicles in Russia.
Porche followed Germany in cutting ties with Russia at the start of the 2022 war in Ukraine. Could the company or government have been testing a digital war tactic? Politics aside, global citizens should be aware that their cars can be controlled by the manufacturer, governments, or bad actors. There have been countless isolated cases of this occurring throughout the years, but this incident proves that it could happen on a nationwide basis instantaneously. Perhaps we will see the day when older cars without digital features are prized and rise in value.
Posted originally on Dec 15, 2025 by Martin Armstrong |
A lot of question have come in about the fall of the Eurozone. One thing that they are already discussing is to allow the member states with a debt crisis like Italy that is unsustainable to exist the Eurozone. They are already discussing that Northern Europe will reconfigure itself into a smaller Eurozone to try to say the system and the currency. This is in part why NATO, including American Neocons, are actively pushing for war with Russia for they fear when the Eurozone collapses, NATO will no longer be in a position to wage war.
The stupidity of the EU leaders has been accelerated by their hatred of Donald Trump. The Neocons and NATO are egging them on using their hatred of Trump to ensure that they will choose war rather than peace. Then with just one member state like Italy being pushed to the brink, we will see what too place in 2010 with Greece which was just 2% compared to the Eurozone. Italy is about 15%. There is no possible way for the ECM to bail out Italy or France. They already hold €5 trillion in sovereign debt on their balance sheet.
European Court of Justice (ECJ) did not rule that the ECB cannot increase its balance sheet unlimitedly. In fact, the ECJ has consistently upheld the ECB’s broad discretion in conducting monetary policy, including large-scale asset purchases. However, a major and highly controversial ruling by the German Constitutional Court (Bundesverfassungsgericht) in May 2020, challenged the ECJ and the ECB on this very issue.
In May 2020, the German court issued a landmark ruling that directly contradicted the ECJ. It stated that the German government and the Bundesbank (Germany’s central bank) had violated German constitutional law by participating in the PSPP without properly ensuring the ECB had conducted a “proportionality assessment.” The German court argued the ECB had not sufficiently analyzed the economic and fiscal policy effects (like impacts on pensions, real estate bubbles, and savings) of its multi-trillion-euro program.
The core of the ruling was that the ECB had potentially overstepped its monetary policy mandate and veered into economic policy, which is reserved for member states. It gave the ECB three months to provide a proportionality assessment, or the Bundesbank would have to withdraw from the program. This was an unprecedented challenge: A national court effectively declaring an ECJ judgment “ultra vires” (beyond its authority) and threatening to break the unity of the Eurosystem.
This colors the possibility that the ECB can just monetize the debt of any country in default. The ECB, while strongly defending its actions, provided additional documentation and analysis to demonstrate it had considered the proportionality of its measures. The German government and parliament engaged in a review process to satisfy the court.
In April 2021, the German Constitutional Court closed the case, accepting the provided documents as sufficient, thus ending the immediate crisis. The Bundesbank continued its participation.
The Ruling Was About Mandate and Procedure, Not a Hard Limit. Hence, there is no official cap. Neither court established a specific limit (e.g., €5 trillion, 50% of GDP) on the ECB’s balance. This was a Political Warning Shot! It served as a powerful political warning from Germany to the ECB that its policies were being watched closely for overreach, especially as it moved into newer programs like the Pandemic Emergency Purchase Programme (PEPP).
The European Court of Justice ruled the ECB can use large balance sheet expansions. The challenge came from a national court (Germany’s), which argued such expansions must be rigorously justified and remain within the ECB’s monetary policy mandate. The ultimate result affirmed the ECB’s actions but under heightened scrutiny, not with a fixed balance sheet ceiling.
This hangs over the head of the ECB in the event of a member default. This is why my sources are talking about preparing for the DISSOLUTION of the Eurozone by jettisoning troubled states in a desperate effort to retain the EU Parliament and power.
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This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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