"Start Buying Gold ASAP..." - Martin Armstrong

0:00 There were a few problems with the Middle East war. Most people didn't realize, but Iran shot more missiles at Dubai than they did Israel. And a lot of people were like, "How come? What's going on?" Dubai became the financial capital [music] of the Middle East after Switzerland basically shot itself in the foot, you know, confiscating money from anybody that was a Russian just cuz you knew Putin, which was absurd. So, they've proven themselves that they can no longer be trusted. So, capital has been fleeing even in Switzerland, and it's been going to either Dubai or Singapore. And so, that's why Iran attacked there more than anything. People have to understand that they had also attacked There's a $30 billion complex that they built there for AI. I

0:46 mean, everybody's there. Amazon, OpenAI, etc. They didn't destroy it, but they damaged it temporarily, and the banking system went down. I know that didn't make news, but we couldn't even get money to our staff there. So, [music] people were selling gold largely cuz the banking system was down. In Russia, because of the sanctions, they were selling gold. And gold goes up more for geopolitical issues, and a lot of people came to the conclusion that Iran would lose. This isn't going to be a big war. And so, they really kind of took the shine off of gold in particular. Our computer does not agree with that view, and the major support is really down at 3,500. Whether it could

1:32 get to that level is debatable. But, it looks as though things are going to start heating up. You have a NATO meeting, etc. Zelenskyy's basically listening to the EU, and he's lost his mind, really. He's threatened to even invade Belarus. He's trying to destroy the bridge to Crimea, to cut them off, and then take that. I mean, in Russia, I can say this, that Putin's opposition is largely saying, "What the hell are you doing? Why don't you get serious?" And people don't realize that Putin's probably the most rational guy at the table. He knows where this leads. And my concern is more that either he gets asked to start getting much more aggressive or he's overthrown and

2:18 somebody else will. But [music] to think that Russia can be defeated by Ukraine is largely a joke. That's more or less like saying Mexico can take out the United States. So, [music] our computer's showing that we should be going into more geopolitical crisis all the way into really the first quarter of '27. So, you'll see the metals go up when people begin to see that we have more geopolitical problems on the horizon. They haven't been paying attention to [music] Ukraine, they haven't been paying attention to Taiwan. And despite all the negative things said about Iran, they are one of the most intelligent or educated in the Middle East. And attacking the Gulf states was more of than just simply American bases.

3:03 Like I said, they attacked Dubai during COVID. Oil went down to $6.50. So, to survive, the Gulf states took on a tremendous amount of debt. A lot of people think that just because they're in the Middle East, they're flush with cash, and that's not true. And shutting the Straits of Hormuz, Iran knows that's not going to really impact the US economy cuz we're mostly self-sufficient. It does impact Asia and it does impact Europe. But, however, the wild card that people aren't looking at is they also attacked refineries, etc. in the Gulf states. If the Gulf states cannot pay on their debts, they default. That sets in motion a banking crisis, which will probably lead straight to London. So, it's much more serious than

3:51 what the headlines are talking about. And like I said, Iran is not stupid. They're not Venezuela. Trump really has been trying to get out of it, but I don't think he can because he can't necessarily deliver Israel. So, it gets to be much more complicated. I think sending his son-in-law and Kushner over for negotiation is a wrong tactic cuz they're both Jewish and this tends to be a religious war. So, whether or not they're partial or impartial is irrelevant. It's just the way the other side is going to necessarily see it. If you look at even the charts for gold going into 1980, it reached 479 in December of '79 and then Russia invaded Afghanistan. And you can see

4:37 from December to January 21st, in the last few weeks gold doubled. It was all geopolitics. It wasn't inflation or anything else. Everyone thought, "Oh, that's it. Going to be the Middle East war." Then it backed off. The main thing with the precious metals is it's geopolitical risk because in time of war, it's always a coin flip sometime who wins. And if you lose, your currency is worth nothing. After World War I, all of Europe basically defaulted 1931. Even Britain suspended interest payments and so did Canada. You know, that's what drove the dollar up so high in the Great Depression that the politicians didn't understand and then they passed Smoot-Hawley. Cuz basically when the dollar is up so high, everybody else can

5:23 undercut you in selling agriculture or whatever. So, the geopolitical side is very important to understand because that makes gold rise cuz it's largely a neutral entity. You're not betting on who's going to win a war. You do have central banks buying gold again cuz it's neutral. For example, for argument's sake, if China and US went to war, US isn't going to pay interest on their bonds that they hold. They would default. I mean, that's standard in geopolitical issues. So, that's why you start seeing trigger China has been acquiring gold, but not just this nonsense of de-dollarization. They've been dumping euros, too. Europe goes into war, you don't really want to own anything. You see a conflict, you know,

6:09 developing between Italy and United States. If you look at the Italian GDP growth, it's 0.5%. I mean, that's a tiny fraction of the United States. Europe is in financial trouble. Germany's passed a rule now that if you're of draft age, you can't leave the country without government permission. They're all gearing up for war at this stage in the game. Governments, when they're facing a threat of civil unrest, they usually need some sort of a external factor. And as you know, I was called in to help create the euro. So, I know the problems here. Helmut Kohl at the time refused to allow the German people to vote cuz he admitted before he died, he would have

6:55 lost 7 to 3. So, the German people were never allowed to vote to join the euro. So, what he did was he said no consolidation of the debts because he assumed that they would see it as a bailout for Greece or Italy. I warned them, this means the euro is going to fail. You'll never compete with the dollar. And they haven't been able to. Why? I can pick up the phone and say, "Buy me $10 billion worth of US Treasuries." No problem. With Europe, you can't. There is no centralized debt. I still have to make the same decision today as if the euro didn't exist. Do I want Germany? Do I want France? Do I want Italy? Et cetera. All right, that's why Europe has never been able to get off the ground. Now, the problem here is we saw it in 2010. Once Greece got in

7:40 trouble, it immediately starts a contagion. The traders said, "Oh, who's next? Oh, Spain." Domestically, if California went into default, the traders would do the same thing. "Oh, who's next? Oh, Illinois." This is the way a trading room works, and we call it a contagion. You look for the next one. So, this is the problem with Europe. I can tell you that Italy has already questioned behind the scenes asking Brussels to issue debt because they're having difficulty selling their own bonds. A government collapses when you're in these Ponzi schemes, when you can't sell the new trons to pay off the old. That's when it all comes crashing down. So, what they need is war, and you have Macron has been pitching going

8:26 after Russia and that he thinks that the conquering Europe he'll collect the 75 trillion they have in natural resources that are still in the ground. Russia's the richest country from that perspective. [music] And people say, "Oh, come on. He can't be that crazy." Look it up. A couple months ago, the head of NATO just came out and said, [music] "If you think you can conquer Russia without the United States, you're dreaming." So, he's addressing what I've been hearing behind the scenes. I'm just giving you the name. The Strait of Hormuz cut off basically fertilizer. It also impacted diesel. We have offices in Thailand. I can tell you they couldn't even get gasoline to put them in a motorbike, and the diesel fuel was nonexistent. So, the ships couldn't even go out to fish. So,

9:11 we have food prices rising also, and then you have inflation which government doesn't want to admit, but one of the major factors in inflation is the cost of government. The more you raise taxes, the higher the prices are. It's like credit cards. You know, a few companies you start charging 3% if you wanted to use a credit card. Virtually everyone 3% now just to use a credit card. So, that's the way it goes. It just, you know, you're looking at inflation coming across the board from rising cost of government at federal, state, and local levels. And you're also, you know, looking at food prices going up. And energy's going to start moving up again. But energy has that impact of kind of like the '70s and it creates what we call a cost push inflation. So, that

9:59 adds to a lot of things. That's pretty much where we are going into 2027.