The Interview of Lukashenko The West Refuses to Listen


Armstrong Economics Blog/War Re-Posted Oct 22, 2022 by Martin Armstrong

The very question posed to Lukashenko demonstrates how biased the media is. There is ZERO independence and certainly ZERO effort by any investigative journalist to challenge whatever either side says in a war because it is always a propaganda war simultaneously. Zelensky was voted in to create peace and carry out the Minsk Agreement. The US and NATO told him NOT to negotiate peace. This is a proxy war and this is the real issue that the media refuses to even discuss.

Iranian Drones


Armstrong Economics Blog/War Re-Posted Oct 21, 2022 by Martin Armstrong

The western alliance is not the only one providing military training. Iran has sent military members to Crimea to train Russian troops. Specifically, they are training them to use Iranian drones. There were reports of Russian troops visiting Iran in August to learn how to operate unmanned aerial vehicles (UAVs). Since then, there have been numerous reports of UAVs failing, but the successfully deployed UAVs are capable of causing serious damage.

Shaheds, also known as kamikaze or suicide drones, explode on impact and are capable of also carrying missiles. This drone is less expensive to develop, but it can travel up to 1,000 miles and leave a range of destruction in its path. Mohajer-6 UAVs can be used for spying purposes and can, of course, also hold a missile. Ukraine claims that they have shot down at least 200 drones and have the capability to jam radars.

Both Russia and Iran have denied trading weapons, but what do they have to lose now that all the cards are on the table? Russia has violated the UN Security Council Resolution 2231 by transferring arms from Iran. The West has already sanctioned Russia in every way possible. Numerous nations are placing sanctions on Iran now, but again, they are not too concerned. Tehran and Moscow, two nuclear powers, are strengthening their relationship and seem prepared to face any Western consequences while resuming trade.

Biden Has Ensured the Fall of the USA


Armstrong Economics Blog/Energy

Posted Oct 19, 2022 by Martin Armstrong

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QUESTION: Marty, do you think that electric cars should be avoided? What do you see for the future? Biden looks like he has undermined Israel all over pleading for low gasoline prices.

thank you

FG

ANSWER: The goal of energy independence was achieved under Trump. Now, under Biden, he had depleted the oil reserves all to save the Democrats from their own policies of ending fossil fuels. Worse still, the Biden Administration has now opened the door to the decline and fall of the United States for another oil embargo would be devastating to the US economy and the people are totally unaware of how vulnerable their livelihood now stands thanks to the Democrats.

I’m sure the Democrats will be writing in as always. All I can say is PLEASE look at this objectively and do not vote simply because of party politics. Depleting the strategic oil reserves to just try to bullshit everyone for the midterm election and then afterward, screw you and your family, shows that they are counting on your stupidity and your bias.

I have studied military tactics. All they need do is cut off all oil again, the US will crumble, and your very job will be at risk if companies can no longer function. This is all total bullshit. It should be a crime for any president to take the strategic reserves for personal political gain. This is no different than robbing money from the Treasury.

I have warned, Beware of oil prices in 2023. Biden has completely undermined the security of the United States into 2032. The Arabs know see the crisis that they face. They would be insane to do anything that benefits the Biden Administration or the EU. Forcing prices to skyrocket will be the only thing to force political change from this climate insanity.

Electric cars are not practical. They may be ok as a second car for around town. But I would look at hybrids for we do not have the power grid to support electric cars. In addition, the first think you do in war is take down the power grid. With electric cars and digital currency, you complete shut down an opponent. Brain dead – just brain dead.

Interview: Panic Cycle, Bank of England, Inflation, Increased Death Rate


Armstrong Economics Blog/Armstrong in the Media Re-Posted Oct 19, 2022 by Martin Armstrong

Click here to listen to my latest interview: “Panic Cycle, Bank of England, Inflation, Increased Death Rate”

Civil Unrest Growing in France


Armstrong Economics Blog/France Re- Posted Oct 19, 2022 by Martin Armstrong

Protests are appearing across France as people are demanding changes. I must say, I do respect the French for always taking to the streets when their politicians fail them. And the politicians are certainly failing the people right now. There are ongoing protests regarding the rising cost of living. Winter is coming and people are concerned about basic necessities such as food and energy.

There are now protests demanding that France abandon NATO. The people do not want to enter a war. On the same day that President Macron announced 2,000 Ukrainian troops would be trained on French soil, thousands took to the capital to demand a stop to this madness. The protestors, per usual, called for Macron’s resignation. In addition to abandoning NATO, the French people would like to abandon the European Union. The idea behind the creation of the European Union, a union to end and prevent war in Europe, has clearly FAILED. “Frexit” is becoming a trending topic as the people now see that those in Brussels do not care about the people.

Our computer has indicated that civil unrest would rise going into November. There are protests appearing all over the world, and unfortunately for the opposition, those protests will only heighten as conditions worsen and policies are passed at the expense of the people.

New England Power Officials Warn of Pending Winter Crisis as Natual Gas Prices Skyrocket and Electricity is Likely to be Rationed


Posted originally on the conservative tree house on October 18, 2022 | Sundance

New England consists of six states in the US Northeast, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.  The states have been warned by regional ISO electricity providers for several years about their vulnerability if the winter weather is harsh and there is a significant increase in demand for home heating.  Those warnings are now multiplied by the massive price increases for natural gas.

Keep in mind as all these natural gas and LNG issues surface, the U.S. has been exporting natural gas to Europe as part of the Biden effort to subsidize the NATO effort against Russia.  Prices for natural gas have skyrocketed, and now shortages of the fuel source for energy production may create even bigger problems for New England.

[Via Zero Hedge] – […] The region’s power mix changes have left it increasingly reliant on international NatGas spot markets. State governors have asked US Energy Secretary Jennifer Graholm to waive the Jones Act and allow foreign-owned tankers to ship LNG from the US Gulf region. 

All of this has led to New England residents facing some of the highest electricity bills in years. Heating season is already underway. 

New England ISO expects the grid will be stable if there’s a mild-to-moderate winter. However, if there’s an extreme cold spell across the Northeast, then grid chaos could unfold: “The grid overall is in a much tighter position.

“If we get a sustained cold period in New England this winter, we’ll be in a very similar position as California was this summer,” Nathan Hanson, a senior vice president of energy and commercial management of LS Power Development LLC, which has two NatGas power plants in New England, warned. (more)

According to the U.S. Energy Information Association (IEA), U.S. storage of Liquified Natural Gas (LNG) is 12% below the five-year average (LINK).  Additionally, the IEA is expecting the U.S. to export 11.7 billion cubic feet of LNG per day during the fourth quarter of 2022 — up 17% from the third quarter. The destination of that export is Europe.

Consider that 43% of U.S. households use natural gas for home heating, and power suppliers use natural gas to create electricity.  With the massive 2022 exports of LNG to Europe (+17% in fourth quarter alone), that means lower domestic supplies and increased prices here in the United States for electricity and home heating.  We are seeing and feeling these massive price increases right now.

Barrons – […]  If you need more evidence of the impact of natural gas exports on prices, just compare supply and demand fundamentals for the year leading up to February 2020 (the last pre-pandemic month) versus the year leading up to this May (the most recent month with full federal data). Annualized production rose over the period, while domestic consumption remained roughly flat. Yet LNG exports almost doubled—a surge that tightened U.S. gas markets and doubled the price that U.S. consumers pay for the fuel. 

The growth of global demand for U.S. LNG can be tied to many market forces, including the shortfalls in Europe due to Russia’s manipulation of European Union gas markets. Sustained high demand in wealthy Asian nations has contributed to export growth as well. And so has the U.S. gas industry’s dogged determination to ship its wares to the highest bidder, foreign or domestic. 

Russia’s role has been particularly critical in the rise of global LNG demand. As Russia choked off gas shipments to Europe, EU buyers have turned to global LNG markets to make up the shortfall. Global LNG prices rose in response, and U.S. LNG companies ramped up output, shipping more cargoes to Europe. But Russia responded by further clamping down on gas supplies to the EU—a vicious circle that has hurt Europe’s economy even more severely than it has harmed America’s.

There’s little sign that U.S. gas prices will ease in the coming years. Freeport’s demand will be back online soon enough, and there are three other massive LNG export projects under construction, with more than a dozen of others waiting for financing.

[…] Curiously, federal regulators have consistently found that the gas export projects are in the public interest—meaning they were in the economic interest of LNG companies and gas drillers. But now, exports are creating sky-high costs for U.S. consumers, and drillers are reluctant to boost gas output lest prices fall back to earth. So, it’s high time to consider whether soaring U.S. LNG exports are actually in America’s interest—or if, instead, runaway LNG exports are fueling energy inflation and undermining the nation’s economic competitiveness. (read more)

Not only are U.S. taxpayers directly paying for the majority of costs in Ukraine, but we are also subsidizing the European Union by exporting LNG and driving up the price for energy here at home.  Here’s the Wall Street Journal talking about the risks to New England:

[Via Wall Street Journal] – New England power producers are preparing for potential strain on the grid this winter as a surge in natural-gas demand abroad threatens to reduce supplies they need to generate electricity.

New England, which relies on natural-gas imports to bridge winter supply gaps, is now competing with European countries for shipments of liquefied natural gas, following Russia’s halt of most pipeline gas to the continent. Severe cold spells in the Northeast could reduce the amount of gas available to generate electricity as more of it is burned to heat homes.

The region’s power-grid operator, ISO New England Inc., has warned that an extremely cold winter could strain the reliability of the grid and potentially result in the need for rolling blackouts to keep electricity supply and demand in balance. The warning comes as executives and analysts predict power producers could have to pay as much as several times more than last year for gas deliveries if severe weather creates urgent need for spot-market purchases.

“The most challenging aspect of this winter is what’s happening around the world and the extreme volatility in the markets,” said Vamsi Chadalavada, the grid operator’s chief operating officer. “If you are in the commercial sector, at what point do you buy fuel?”

Power producers in New England are limited in their ability to store fuel on site and face challenges in contracting for gas supplies, as most pipeline capacity is reserved by gas utilities serving homes and businesses. Most generators tend to procure only a portion of imports with fixed-price agreements and instead rely on the spot market, where gas prices have been volatile, to fill shortfalls. (more)

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Soldiers Training Globally for WWIII


Armstrong Economics Blog/War Re-Posted Oct 18, 2022 by Martin Armstrong

I explained that Romania is becoming a World War III training battleground for NATO. There are currently 40,000 troops on the ground throughout Eastern Europe, with more set to arrive. Colonel Vincent Minguet, the commander of the NATO Combat Group in Romania, believes the training will last up to FIVE years. Stronger militaries are training their allies now in preparation for what is to come.

This is expanding beyond Eastern Europe. France announced that they are welcoming 2,000 Ukrainian troops. French President Emmanuel Macron was hesitant at first, and only permitted 40 Ukrainian soldiers to be trained on French soil since February. As Zelensky and those holding his strings beg for more aid and a full-on escalation, world leaders are folding to his demands.

It will not be in a belligerent fashion because we are not at war. We are helping a country that is at war,” French Minister for the Armed Forces Sebastien Lecornu stated. They are directly involved in the conflict. The West has gone to war with Russia economically and now is directly contributing to the war effort in Ukraine. World leaders do not want the people to see what is unfolding before their eyes.

Under Operation Interflex, the UK has coached 10,000 Ukrainian fighters. The program puts soldiers through an intense five-week training program to learn basic skills before being returned to the frontline.

Ireland has been tasked with helping Ukraine learn to dismantle explosives and IEDs. The US has training facilities for Ukrainian soldiers in Germany, while the UK has opened up air bases for Canadian forces. Every nation is preparing for endless war. “We are probably, unfortunately, in the long haul when it comes to the war against Russia to stop Putin’s aggression against Ukraine. Therefore, we need also long-term planning and training,” Danish Foreign Minister Jeppe Kofod admitted.

“[I]t’s clear (that if) the European Union armies pull together all their capacities, they can do much more than each one of their side,” stated EU’s top diplomat Josep Borrell. Multiple nations combining their military power to defeat a common enemy – that is a world war.