Posted Sep 5, 2025 by Martin Armstrong | 

Deputy Minister Agila Barzdienė believes that joining the European Union was the economic “reset” the nation needed. On the surface, Lithuania’s GDP has risen since joining the EU in 2004, but this is not the product of some magical European design.

“Economically, it’s an obvious leap. Lithuania’s GDP has almost doubled, foreign direct investment has increased eightfold, exports have increased sixfold. Wages have increased sixfold, and inflation has been kept at 2%,” Barzdienė stated. “For example, in 2004 the average Lithuanian could not afford a good cup of coffee in Milan, but today he does not feel the difference between Vilnius, London or Lisbon, and this is an important indicator. Now the average pre-tax salary is about 2000 euros, after that it is 1300-1400 euros. By 2030 we hope to reach 90% of the EU average salary.”

The growth was largely the result of capital inflows, cheap credit, and foreign investment chasing “new” markets after the fall of the Soviet Union. The EU absorbed these nations, promising prosperity if they would only surrender their sovereignty. Lithuania has benefited in the short run, but it is now just as handcuffed to Brussels’ mandates. Net Zero policies, sanctions, and globalist directives all come with hidden costs. The Baltic states are exposed to energy insecurity after Brussels cut off Russian supplies, and yet their leaders cheer for policies that undermine their own industries. They are also on the frontlines for NATO expansion as the bloc attempts to corner Russia.

Lithuania has drastically increased defense spending in recent years as the nation braces for an alleged Russian invasion. “The government is striving to keep at least 1.3 billion euros from the defense budget (in 2026 it will be 5-6% of GDP) in the national economy. Investments are being made in startups in the defense sector, and the DEVITUS program has been created with a budget of 300 million euros,” the deputy minister commented.

Yet, the nation believes it is closer to war than ever before as a result of its alliance with the EU. Lithuania has implemented a new defense mechanism to prevent a land invasion—dragon teeth. These “dragon teeth” are large triangular concrete blocks that are intended to block the path of war tanks. “We are starting from the tactical level — specific obstacles on the border — and later we will combine the entire engineering plan into one conceptual system,” said Raimundas Vaiksnoras, commander of the Lithuanian army.

Lithuania will hold the rotating presidency of the EU Council in 2027. By 2027, according to the computer models, the world will begin to feel the full impact of war, and discontent will rise into 2028. Moldova was sold the globalist dream of Brussels. The short-term pay off is not expected to last.

Posted originally on Sep 4, 2025 by Martin Armstrong |

Beijing’s historic military parade brought the new axis powers together in a show of alliance. China’s Xi Jinping hosted Russia’s Vladimir Putin and North Korea’s Kim Jong-Un during the largest military parade in Chinese history. Xi summarized China’s display of military excellence by questioning whether the West will choose “peace or war.”

“Today, humanity is again faced with the choice of peace or war, dialogue or confrontation, win-win or zero-sum,” Xi told the crowd of more than 50,000 spectators, adding that the Chinese people “firmly stand on the right side of history.” Every nation believes its involvement in conflict will place it on “the right side of history,” but it is the victors who write history.

“May President Xi and the wonderful people of China have a great and lasting day of celebration. Please give my warmest regards to Vladimir Putin, and Kim Jong Un, as you conspire against The United States of America,” Trump wrote on Truth Social during the parade. Trump asked China to remember the American troops who fought to expel invaders during World War II. “The big question to be answered is whether or not President Xi of China will mention the massive amount of support and ‘blood’ that The United States of America gave to China in order to help it to secure its FREEDOM from a very unfriendly foreign invader.”

Trump has managed diplomatic ties with Putin and Kim, but his relationship with Xi has never been amicable. Xi said that his nation “is never intimidated by any bullies,” while others believed that Trump’s comments highlighted America’s growing concern of Chinese dominance.

Yuri Ushakov, a top aide to Putin, insisted that the three nations were not conspiring against the US. “I want to say that no one organized any conspiracies, no one was weaving anything, no conspiracies,” Ushakov told Russian journalist Pavel Zarubin, who is close to the Kremlin and has previously interviewed Putin. “Moreover, no one even had that in their minds, none of these three leaders had that,” Ushakov said.

Kim accepted Putin’s praise of North Korean troops and promised to honor their pact. “As I said during our previous meeting, if there is anything we can do to help Russia, we will certainly do that, and we will regard this as our fraternal duty. We will do everything in our power to assist Russia.”

China has remained nearly neutral over the past three years as the world became deeply embedded in the Russia-Ukraine conflict. Europe is on the precipice of deploying troops to Ukraine and solidifying the start of World War III. This historic military parade was not merely about the 80^th anniversary of Japanese troops leaving China after World War II. The massive event was a message to the West that China has firmly aligned with Russia, and if the West does not choose peace, China is willing to join the war.

Posted originally on Sep 3, 2025 by Martin Armstrong |  

NATO is not at war, and yet, the alliance has spent more on funding Ukraine than on any other conflict. The Defence Expenditure of NATO Countries (2014-2025) determined that the alliance is expected to spend $1.59 trillion USD in 2025, up from $1.5 trillion in 2024.

The United States continues to uphold the alliance financially, with an estimated annual payout of $980 billion. Canada and Europe are predicted to spend a combined $608 billion on NATO expenses or an average of 2.76% of their GDP. Poland spent more per GDP than any European member at 4.48%, followed by Lithuania at 4% and Latvia at 3.73%. Nordic alliances such as Norway and Denmark are expected to spend at least 3% of GDP on NATO this year.

Before the Russia-Ukraine war, members were spending around 1.8% of GDP. That figure shot up to 2.6% in 2024, now sitting at 2.76%, and WILL increase as a result of the 5% of GDP pledge by 2035 that was agreed upon at the June 2025 Hague Summit.

There is an uneven response to the escalating conflict as certain nations are accelerating toward confrontation while others remain wary of becoming involved financially. The concept of creating a unified Europe to end all wars was a moot point. European leaders heed different risks concerning the war. This is not just about weapons and soldiers. It is about capital flow reallocation.

Trillions will be pulled out of productive use and sunk into defense. That creates fiscal strain, inflationary pressure, and accelerates the collapse of social programs. Defense budgets soared across Europe ahead of World Wars I and II. War produces absolutely nothing but inflation and destruction.

Ahead of the First World War, defense expenditures across Europe began to surge in the decade before 1914. Governments shifted capital from social programs into armaments. Britain expanded its navy to counter Germany, while Germany doubled down on land armies. The press sold it as “deterrence.” In reality, it was preparation for the inevitable confrontation that the cycle dictated. This is precisely how they are deflecting current NATO spending, as if the allied members must multiply their contributions to deter Russia.

The same pattern unfolded before World War II. During the Great Depression, military spending in Germany, Italy, and Japan accelerated while their economies stagnated. By 1935, Germany had already abandoned Versailles restrictions, pouring money into weapons while ordinary Germans endured wage controls and shortages. The rhetoric was that this spending would “create jobs,” but it created war.

Rome followed this path as well. By the third century AD, the military consumed the treasury. Coinage was debased, taxes rose, and confidence collapsed. It was the cost of endless frontier wars that eroded the economic foundation of the empire. Once capital fled, the empire was finished. The same capital flow shift is what we see today with trillions diverted from productive enterprise into defense, financed by debt, which will only accelerate inflation and contribute to the sovereign debt crisis.

NATO’s report outlines more than mere budgets, as it shows where each nation is aligned on the Panic Cycle, propelling warfare. Socrates is projecting the rise in volatility into 2026, and the Panic Cycles align. The West has chosen the path of militarization, and that is precisely what history warns precedes systemic breakdown.