Posted originally on Feb 25, 2026 by Martin Armstrong |  

The press refuses to honestly review the facts because they are caught up in pushing socialism and they try to look the other way when some indicators show resilience and fail to understand that we are in the midst of paradigm shift in the economy just as we were during the 19th century moving from agriculture into the industrial revolution and from that into a service economy due to taxes and regulation, and then the DOT.COM economic shift with the internet that put a lot of small local stores out of business. Now we have the paradigm shift that is far more complex for this is not just the AI bubble like the DOT.COM bubble, but the final leg of the Sovereign Debt Crisis that is spreading from the peripheral economies in Asia and Europe that will eventually overtake the United States as the FREE MARKETS force political change.

GDP Growth blasted past ALL expectations in the July-September quarter to reach an annualized 4.3%, the strongest performance in two years compared to the EU at 1.5%. Economic growth has surged to its fastest pace in two years and the new job creation has been in the private sector compared to the Biden years of expanding government.

The benchmark S&P 500 is up nearly 18%, easily beating the average annual return of 10.5%. The Democrats constantly claim that the top 10% of American only benefit from that, which is a lie since that ignores all the pension funds.

The Democrats argue that the Consumer Price Index, which stood at 3% in January, remains near the same level as of November – well above the Fed’s 2% target, which is unrealistic and arbitrary. What they fail to point out is that is a recession of depression, typically assets decline with inflation and cash becomes king. This is a warning sign that we are in the last leg of a Sovereign Debt Crisis globally.

The federal deficit for 2025 now stands at $1.8 trillion, with interest payments on the debt hitting $1 trillion for the first time. I have been warning for decades that when we are in this Ponzi Scheme of perpetual borrowing and NEVER paying off anything, that a 3-year-old with a pocket calculator can figure out that the interest expenditures will rise forcing spending on social programs and military to shrink. The Democrats would prefer to destroy the economy and constantly raise taxes just so they can win the next election and never once look at this from even a 5-year plan no less than 20-year outcome.

The economy has proven more resilient to tariffs and policy uncertainty than many predicted. The job market deterioration has been in the public sector as government employment is declining and they need to find a real productive job that contributes to GDP growth since government employment is no different from hiring a maid to clean your house. She does NOT add to your household income, she consumes it. That is why we call government employment “public service” for it reduces economic productivity; it does not contribute to it.

The Democrats are truly destroying the United States just as the socialists are destroying Europe. They refuse to face reality that every nation that has moved to the left fails. The Democrats refused to stand for even a statement of putting Americans before illegal aliens. Constitutionally, as well as internationally, only a citizen can vote. I cannot vote in UK elections even though I still have my English drivers license. The Democrats just have to oppose whatever Trump does no matter what. They claim that requiring an ID to vote will prevent 20 million poor and minorities from voting. They portray blacks are stupid.

Many see the Democrats as not just racist in these comments that African Americans are too stupid to have an ID so they cannot vote, but many are seeing that they are the source of White Supremacy. Gavin Newsom has just exposed how the Democrats think of African Americans as stupid. If someone is poor, they still need ID to get welfare and food stamps regardless of their race. You need ID to drive a car, get on a train, or hop on a plane. The implications of this opposition to ID to vote can only impact illegal aliens which the opened the flood gates to let them poor into the country to retain power. I have stated before,

I had the mandate to negotiate with Australia for Hong Kong to try to buy an island back in 1997 to allow them to flee when Hong Kong was to be handed back to China. I met with former Prime Minister Paul Keating who was running the Treasury at that time and no matter what I offered the answer was NO. I finally asked if this was a racist issue. He said no. If Australia allowed them to migrate from Hong Kong they were fleeing socialism so they would vote conservative and change the politics of Australia. That was the real objective of the Democrats and that is why they oppose an ID to vote to retain power.

Ilhan Omar was born in Mogadishu, Somalia, on October 4, 1982. She shouts at Trump during the State of the Union putting on a display that illustrates the cultural differences at issue. She does not like any curtailment of illegal immigration and the outrageous fraud of the Somali community in Minnesota.  In a June 23 article, the Star-Tribune wrote that it “could neither conclusively confirm nor rebut the allegation that he is Omar’s sibling” that she married her brother. In 2002, Omar, then 19, religiously married Ahmed Hirsi, but not legally. Omar and Hirsi had two children, but in 2008, they obtained a religious divorce. The following year, in 2009, Omar married Ahmed Nur Said Elmi both religiously and legally. Little is known of Elmi.

 According to the book Lyndon Johnson and the American Dream, Johnson said the following to Senator Richard Russell, a Democratic Senator from Georgia:

“These Negroes, they’re getting pretty uppity these days and that’s a problem for us since they’ve got something now they never had before, the political pull to back up their uppityness. Now we’ve got to do something about this, we’ve got to give them a little something, just enough to quiet them down, not enough to make a difference. For if we don’t move at all, then their allies will line up against us and there’ll be no way of stopping them, we’ll lose the filibuster and there’ll be no way of putting a brake on all sorts of wild legislation. It’ll be Reconstruction all over again.”

President Johnson, was a master of legislative politics, and was acutely aware of the enormous political risk he was taking with the Civil Rights Act. He made several comments on this issue.

• “There goes the South for a generation.” This is the most commonly cited version, reportedly said to an aide as he signed the Civil Rights Act of 1964 .
• “We just delivered the South to the Republican Party for a long time to come.” This version was recounted by presidential aide Bill Moyers, who said Johnson was feeling “melancholy” right after the signing, fully aware of the political cost .

Johnson’s prediction was not just casual speculation; it was a calculated understanding of American politics at the time. Before 1964, the “Solid South” was a Democratic bastion, built on the legacy of the Civil War and Reconstruction . By championing civil rights, Johnson knew he would shatter this coalition.

Johnson’s prediction proved accurate almost instantly. In the 1964 election, although he won in a landslide, he lost five Deep South states (Louisiana, Mississippi, Alabama, Georgia, and South Carolina) to the Republicans.

It was Barry Goldwater, who had voted against the Civil Rights Act, appealed to white Southerners who felt abandoned by the national Democratic Party.

LBJ demonstrates the manipulation of the African Americans making a series of well-documented, blunt statements predicting the exact political outcome of manipulating the blacks to support the Democrats which was the original slave owner party against Abraham Lincoln and the Republican Party that was anti-slavery.

What they have done with the African Americans they are now doing with illegal aliens.