Posted originally on Mar 26, 2025 by Martin Armstrong 

QUESTION: Mr. Armstrong, Nobody has a computer that covers everything. Your forecast at the WEC that the Democratic Party would collapse is unprecedented. Nobody has even contemplated that such a thing could happed. Yet night now this is unfolding. The new polls from NBC News and CNN. The former poll showed that only 27% of Americans held a positive view of the party, with only 7% holding a “very positive” view. Both are record lows for the poll. Then, the CNN results found the Democrats’ approval at 29%, setting the record low for that poll as well.

Is there anything you can say as to how Socrates can forecast what nobody is capable of even thinking about?

Wm

ANSWER: My confrontation with the bankers who told the CFTC to shut us down after the forecast that Russia would collapse in 1998 was predicated on the assumption that the forecasts work only because I have more institutional clients than the NY crowd combined. What they never considered was that just maybe I discovered something profound that the New Yorker called the Secret Cycle.

What I discovered changed my life. There are two paths of research.

• (1) The Max Path: You start with a theory and cherry-pick facts to claim you are right
• (2) The Adam Smith Path: You observe to figure out how something functions.

You cannot discover what you already know.

The complexity that exists is remarkable. But the precision of how and when events will take place is also astonishing. All economic theories from Marx onward began with the same assumption: that the business cycle is random and that, therefore, the government, via its central banks, can manipulate it to create perpetual prosperity.

I had a nice discussion with Paul Volcker, and he agreed. The business cycle was about 8 years. Both Volcker and Burns concluded that the business cycle always wins. All the theories that try to manipulate society to eliminate the business cycle are out of mind. What I bumped into was not mere complexity but precision that I never expected to discover.

This is Not the First Political Party to Collapse

A significant factor in the collapse of the Federal Party was the anti-state view in favor of centralized federal power. Additionally, there was the War of 1812. For a long time, the Federalist party supported peace with Britain and war with France, whereas the Democratic-Republican party had the exact opposite position. Eventually, British behavior towards the US during its war with France caused anti-British and thus anti-Federalist sentiment. The Democrats have sought to exert power in Washington and dictate policy to the states on issues such as abortion. They have also supported Ukraine and fostered the war against Russia, which was why the Neocons swung to the Democrats.

The Hartford Convention of 1814-1815 was essential in the Federalist party’s collapse. This mostly Federalist convention in New England suggested some constitutional amendments. Still, it was alleged to consider New England’s secession from the Union and a separate peace with Britain, not unlike California. After the war, the convention was widely viewed as an act of treason and a black mark on the reputation of the Federalist party.

What is also overlooked is that the Federalists were essentially a mercantilist party compared to the South, which was agrarian. Alexander Hamilton, along with most Federalists, was trying to raise the status of the United States internationally while still fighting the last war. Thus, the Federalists were pro-industrialization, which was still in its infancy. They say that industrialization would make the United States a more powerful nation in the eyes of the international community. Many wrongly assume that the Federalists were a “conservative” party in the modern sense. Yes, Hamilton was pro-bank and pro-business.

Hamilton also established the National Debt to raise the United States’ credit standing in international eyes. However, he was foremost a federalist, building the United States into a significant power. What is overlooked is that the Federalists were the ancestors of not just the Whigs but also FDR insofar as they saw the federal government had a role in regulating, managing, and controlling society and the economy.

Don’t forget that during the Whiskey Rebellion, a tax revolt in Pennsylvania, George Washington sent troops to kill those who rebelled. That was the essence of the Federalists: dictatorial power from a central command. The Federalists, like Roosevelt, believed in a positive role for the federal government. That is the place the Democrats have occupied today. Biden tried to hire 75,000 IRS agents who would be armed.

Then came the War of 1812, disrupting manufacturing imports to the United States, which led even the Jeffersonian Republican Party to relax its policies toward industrialization. The Federalists had supported Britain for business. But many manufacturers found the laissez-faire of the Republican Party to be more beneficial than the Federalists, whose policy was if it moved, tax it. If it stopped moving, kick it. The War of 1812 killed the Federalists, and more industrialists moved to Jefferson.

Instead of the War of 1812, when the British burned Washington, DC, and the Federalists had supported the British, today we have the Neocon Proxy War in Ukraine against Russia, and some idiots on Capitol Hill wanted to commission a marble bust of Zelensky to stand in the US Capitol next to Washington and Jefferson.

The Democratic Party still refuses to admit that, just perhaps, their radical fringe proposing sex changes in prison for illegal aliens just might have gone too far. Producing comic books on equality and handing them to the Taliban for $$20 million. In the real world, you have to have a feasible business plan. In Washington, the crazier the idea, the more money you get.

Here are the two computer forecast arrays from 2018 and 2024. 2024 was a significant target in 2018, yet the 2021 target was the strongest with a Panic Cycle. That was Biden. That was all she wrote, folks, for the Democrats. They will not exist by 2033.

This chart plots as a percentage of total seats combined in the House and Senate. They peaked out before slavery, and each rally produced a declining trend.  Sorry, but this is a bear market. It will be time to turn out the light for the Democrats, and their wacky WOKE agenda is loved only by the extreme fringe. My father was a Depression Democrat. He would never have voted Democrat today.

I am starting with a book on the Economic Confidence Model that I promised I would do to leave for society. I will probably print the first edition myself, for it will be well illustrated and formal publishers don’t like that because it is too expensive to produce. The second edition can be stripped of the illustrations they do not want to print. But I tend to be a perfectionist. It has to be right to put my name on it. I don’t sell advertising here because I do not want to appear to endorse any product.