Sarah Westall - Business Game Changers

Socrates Now Signals War Escalation | Martin Armstrong

84 min
Apr 25, 2026about 1 month ago
Listen to Episode
Summary

Economist Martin Armstrong discusses his AI forecasting system Socrates and its predictions of escalating global conflicts by June, analyzing geopolitical tensions involving Iran, China, Israel, and Ukraine. Armstrong reveals he was asked to write a peace plan for Russia-Ukraine negotiations outside official State Department channels, and explains how currency flows and economic desperation drive nations toward war.

Insights
  • Economic desperation and sovereign debt crises are primary drivers of geopolitical conflict; when economies turn down, nations pursue military solutions to historical grievances
  • Current global leadership lacks strategic intelligence and understanding of interconnected systems; most policy decisions are myopic and create unintended consequences that strengthen adversaries
  • The U.S. has depleted half its missile stockpile and lacks capacity to defend Taiwan while engaged in proxy conflicts, creating a critical military vulnerability window
  • Iran's attack on Dubai's financial infrastructure revealed the fragility of modern banking systems and demonstrated how gold becomes essential when digital systems fail
  • Direct democracy and localized governance will likely replace centralized republics by 2032 as current systems prove unable to represent constituent interests
Trends
Synchronized global conflict escalation across multiple regions (Middle East, Asia-Pacific, Eastern Europe) driven by economic downturns rather than unified ideological warfareCapital flight from traditional financial centers to alternative systems (Dubai, Singapore, BRICS) as geopolitical risk increases and sanctions regimes expandAcceleration of alternative payment systems and de-dollarization following SWIFT sanctions on Russia; China positioning itself as financial alternative to Western systemsSovereign debt crisis in Gulf states and Middle East due to low oil prices during COVID; China acquiring strategic assets through debt-trap contracts with default clausesBreakdown of centralized government authority leading to regional fragmentation (Canada east-west split, European breakup) and shift toward direct democracy modelsMilitary technology depletion and cost inefficiency; high-tech weapons systems consuming resources faster than production capacity, forcing reliance on alternative weapons systemsGold's strategic role as backup currency during banking system failures; long-term demand driver despite short-term price volatility from emergency liquidationNeoconservative doctrine (Wolfowitz Doctrine) driving U.S. foreign policy toward preventing rival superpowers; strategy failing to achieve objectives while strengthening adversariesInformal back-channel diplomacy and outside advisors becoming primary mechanism for strategic policy when official government structures deemed too corrupt to functionAI and technology advancement outpacing government understanding; policymakers operating with 20-year-old mental models unable to comprehend modern economic interconnections
Topics
Iran-U.S. Proxy Conflict and Strait of Hormuz BlockadeChina's Geopolitical Positioning and Taiwan RiskIsrael-Palestine Conflict and Netanyahu's End-Times TheologyUkraine-Russia War and Peace NegotiationsSovereign Debt Crisis in Middle East and Gulf StatesSWIFT Sanctions and De-Dollarization StrategyNeoconservative Foreign Policy and Wolfowitz DoctrineAI Forecasting Systems and Socrates PredictionsGold as Strategic Asset and Currency AlternativeBanking System Vulnerabilities and Cyber AttacksMilitary Technology Depletion and Stockpile CrisisCapital Controls and CBDC ImplementationDirect Democracy vs. Republican Government ModelsEnergy Weapons and Advanced Military TechnologyGovernment Leadership Competency and Strategic Intelligence
Companies
Google
Data center in Dubai hit by Iranian missile attack, contributing to banking system shutdown
Amazon Web Services (AWS)
Data center in Dubai targeted in Iranian attack; part of AI infrastructure investment
OpenAI
Operates AI facility in UAE that was attacked by Iran; part of $30 billion AI infrastructure
Miles Franklin
Precious metals dealer sponsored by host; recommended for asset protection in uncertain times
Goldman Sachs
Discussed as example of revolving door between Wall Street and government positions
IBM
Lost $1 billion on Watson AI project; example of failed neural network approach to AI
Dragon Systems
Speech recognition hardware used in Armstrong's early AI development experiments
People
Martin Armstrong
Guest discussing Socrates AI system predictions of June war escalation and geopolitical analysis
Sarah Westall
Podcast host conducting interview with Martin Armstrong on economic forecasting and geopolitics
Benjamin Netanyahu
Discussed as unstable leader following biblical prophecy; considering tactical nuclear weapons on Iran
Vladimir Putin
Described as one of two smartest leaders globally; Armstrong wrote peace plan with Putin credibility
Volodymyr Zelensky
Criticized as unstable leader banning critical media; accused of maintaining death lists
Xi Jinping
Described as one of two smartest leaders; Armstrong's system predicts China will escalate involvement
Donald Trump
Sent thank you letter to Armstrong for peace plan; Armstrong advises he's using back-channel diplomacy
Milton Friedman
Praised Armstrong's work on floating exchange rates; influenced Armstrong's economic philosophy
Margaret Thatcher
Armstrong met with her during his work as international hedge fund manager and advisor
General Wesley Clark
Revealed classified Pentagon document showing plan to invade seven Middle East countries post-9/11
Hillary Clinton
Questioned about Benghazi embassy attack and arms operation in Syria; refused to answer
Klaus Schwab
Accused of planning Great Reset to coincide with 2032 power transition; made advance COVID calls
Emmanuel Macron
Pursuing Napoleon complex to resurrect European dominance; offering nuclear weapons to Germany
Robert McNamara
Only neocon Armstrong credits; apologized for Vietnam War before death; admitted it was wrong
Irving Kristol
Started neoconservative movement; father of Bill Kristol; influenced Netanyahu's ideology
Quotes
"I've warned them, you know, you're going after with this blockade and you think you're going to force Iran to bend the knee. You're putting China in a difficult position. It's almost a proxy war, right?"
Martin ArmstrongEarly in episode
"The biggest always falls. If they didn't, we would all still be speaking Babylonian."
Martin ArmstrongMid-episode
"They said, no, he's really stupid. And I was completely shocked. I said, why would we make somebody stupid president?"
Martin ArmstrongDiscussing presidential vetting process
"I think it says something that Trump has to do it quietly. He has to hire outside people. He can't use the system because it's that corrupt."
Sarah WestallDiscussing peace plan back-channels
"When the economy turns down, get the bastard that did it. That's just the way that... people in there that um to seize power they tweak the you know the turn the knife and stick it in a little bit further."
Martin ArmstrongDiscussing economic drivers of war
Full Transcript
I've warned them, you know, you're going after with this blockade and you think you're going to force Iran to bend the knee. You're putting China in a difficult position. You know, it's almost a proxy war, right? Right. And at what point do they come involved? now they're already providing technology targeting u.s ships etc to iran and you've got uh they're sending in weapons and now the u.s is like oh this is outrageous but we do it to ukraine oh that's right it's a proxy war for the united states against russia it's very clear in nato but does Does your systems predict that China will get involved based on what they are investing in? Oh, yeah, absolutely. And when do you think that will happen? Welcome to the Friday Night Economic Review. I'm Sarah Westall. I have the legendary economist Martin Armstrong joining me today. And boy, this one is a good one. We're going to be talking about what his AI Socrates program is showing him based on how the money is flowing around the world. One of the big results is that June timeframe, we're going to see a lot more war. Things are going to escalate pretty significantly. That's what the money flows are showing. He's going to explain it and what that all means. He also touched on why gold dipped right after the Dubai and Iran was bombing some of their neighbors. And one of them that they bombed was Dubai. It hit a data center with Google, AWS and other big players in there. It took down their banking system for a week for seven days. People didn't talk about this. And what happened was that people were trading in gold. They didn't have a choice. They had to trade in gold because they couldn't reach their bank accounts. And then because of that, gold fell because gold flooded. People were just trying to sell their gold for cash. And so the price of gold dipped during that period. But that's long-term pressure for increase in gold because people were asking, why didn't gold go up or silver go up? And that's why some of that pressure downward was happening. and people were talking to me hear that in the mainstream media where you're gonna hear things today that you haven't heard before so make sure you buckle up this is a good one and you're gonna hear some things about the peace talks between Ukraine and Russia and his role in those peace talks it's pretty eye-opening but before we get into that I want to remind you you need to protect your assets the world is not that stable right now and if you are going to be protecting your assets do it with a company you can trust I work with miles Franklin they have proven to me over the years that you can trust them they treat you like a sophisticated buyer they're not gonna scam you they're not going to charge you super high premiums like these other companies are charging you it's a commodity based business it's very competitive if you are being charged high premiums you're working with the wrong company if you are worried that you have been scammed many people have been scammed with some of the most well-known companies out there, you need to be paying attention and be very careful. We have helped people, hundreds of people get their life savings backs who've been scammed. They have proven to me that you can trust them over the years and that's one really glaring example of it. If you want to get access to their private price list, it's a commodity-based business, it's very competitive. If you want access to that, I have a form you can fill out, sarawestell.com slash miles Franklin. Fill out that form. do that. Please protect part of your assets. In this uncertain times, you really need to have part of your assets and precious metals. You need to be diversified. Okay, go to sarawestall.com slash milesfranklin. Okay, let's get into this incredible conversation that I have with Martin Armstrong. Hi, Marty. Welcome back to the program. Well, it's always a pleasure to see you. Well, you asked me how I'm doing, and compared to the rest of the world, I'm doing pretty good. We can't complain when we see what's going on around the world. But we are in pretty dangerous times. And I got to say, and I know we talked a little bit beforehand, that we have some pretty unstable characters at the world stage level. I think Benjamin Netanyahu. I think Zelensky. I think these people that really want to get World War III going are just unstable. And we've seen, when you really look into their background, they're just, they're crazy. And we are following them. What does that say about us? Well, they followed Hitler, too, because he was, you know, charismatic. Well, I don't know if these guys are charismatic. I don't know either, but they. My concern with Netanyahu is that he's up for election. And, you know, he. I'm concerned that he's going to go a bit crazy starting at least in mid May to June area. They're actually talking about using a tactical nuclear weapon on Iran's deep tunnels where they were carved into granite mountains. So a bunker buster is not going to get to it. How good is this intelligence? Do you think it's pretty good? Because I saw reports. I saw reports that talked about why I saw 100 page reports making a case on why tactical nukes is a good strategy for the United States government military. Oh, we have. We definitely have some generals in the military discussing that. and have had that for some time. I knew people in Capitol Hill that were, you know, they were talking about that, you know, 20 years ago. Our problem is this. The real danger here is high tech. they created all these fancy missiles which we've used about half of our supply on Iran already one of these things will cost three and a half million dollars but to replenish what we've already spent will take three years so Taiwan is already mouthing concerns that we don't have enough missiles to protect them if China decided to go in. And this is the problem. Iran is one of the highest educated countries around. People don't appreciate this. and the shawl used to send used all the oil money and send people mistakenly to universities in the united states and you and uk and he was doing that from the 70s so what you got was basically indoctrinated leftists that went back and created the revolution because he's a capitalist, imperialist, etc. The Ayatollah Khomeini, he was very intelligent. He understood what to do. The revolution was actually a merger of Marxism and Islamic. And that's what they're trying to do here, right? Yeah, look, it's, you had reinterpretations of the Koran with a Marxist view. And most people don't realize, but back in 79, in taking the embassy and calling, you know, U.S. the great Satan, etc. It was a strategic, brilliant move for domestic purposes. Because anybody that objected to the Islamic regime, a religious form of government, he would then immediately say, oh, you're for the great Satan. So it's kind of like you see with what Europe has done with Russia. Anybody that speaks against Zelensky, oh, you're a Putin puppet or something like that. It's the same thing with Israel. Anybody that speaks against Israel is an anti-Semitic. It's like, well, what the heck? Well, there are an awful lot of people in Israel that are speaking against. Yeah, that's different there. Yes. Yeah. I'm just talking in this country. They tried to use that playbook. It's not working, but they tried to. Yes. No, I mean, this is a standard operating procedure. It's part of the whole propaganda agenda. Zelensky has elevated to a real art form in Ukraine. He's banned any TV station that would dare criticize him. One of my sources there, Laura, was the guy who uncovered, you know, that Zelensky was a cokehead. He had him arrested, thrown in prison and mysteriously died of pneumonia. I mean, Zelensky's had his death list, you know. It's just that they have a target. lists of people they want to take out and every time they take somebody out they mark them off as a win and i remember harley schlanger came on my show because he was like he was up there i don't know in the top 10 yeah look this is uh this is what goes on um you know i i don't even look at all the hate emails that I get out of Ukraine anymore. It's just ridiculous. You know, and I said, you know, fine. You know, you want to blow up the world? Well, let's just do Kiev, you know. Let's start. If you want to destroy and depopulate, let's start with you. Yeah, exactly. listening to some of these people I've said before, I mean I've been doing this for a long time I knew Margaret Thatcher and Reagan back then you could actually have an intelligent conversation with a head of state I don't know any of them today that I would want to sit down with shake hands and have a drink I mean it's McCrone, Stammer I mean they're all like in the same And why is that? Is it because the people with the actual power are just, they've given up and said we just want sheer puppets, we're going to make the decisions and you're just going to do what we tell you to do Yeah I think so, I mean I saw that in 1999 As you know I was part of the vetting process, and they would send me in to meet with people who wanted to run for president. And up until then, I would go in to explain how the world economy really worked, how we're all connected, et cetera. But it was a vetting process. I'd get back and they'd say, OK, fine. What do you think? Are they smart enough to understand? And that's really what it was about. And then all of a sudden I was asked to go meet with Bush Jr. And they said, oh, this one's different. I said, what's different? They said, no, he's really stupid. And I was completely shocked. I said, why would we make somebody stupid president? I mean, the whole time before was, do you think he's smart enough? and they said to me, he's got the name so we can win. So do you think they're starting to regret their decision? It's if you build a business and you put in dumb people who are just going to do what you want and they don't even, unless you're there almost like connected to their brain, they're going to make stupid decisions all over the place. They can't possibly be that in control to be able to handle the stupidity that they've just unleashed on the world. Are they recreating it? Not yet, I don't think. They are... Look, Netanyahu, I met him a long time ago. He actually went to grade school and high school in Philadelphia. I grew up in that area there. But he hung out with the Crystals. I knew Bill Crystal. He even spoke at one of our conferences. But his father, Irving, is the one that started the whole neocon movement. So I knew Netanyahu was indoctrinated into that philosophy. So my opinion, they used him to get into Trump. because initially the neocons were all against Trump because he said he was against endless wars all right so he had Dick Cheney he was you know endorsing Camilla he had Bill Crystal who had his magazine the weekly standard he was so anti-Trump the whole thing collapsed and so I knew a lot of these people and back then I knew how you know I was offered to take the position of chief economic advisor in the White House under Bush Jr. and I said no sorry not interested because I'd have to give up my company and all this stuff. And I said, no, sorry, I'm not from Goldman Sachs. But people don't realize. You see a lot of these heads of Goldman, whatever, take these positions. You know, the reason they do so is to take such a position, you can't have a conflict of interest. So they must sell their stock in Goldman because they must sell the stock to get the job. It's tax-free. That's why they do. Interesting. I didn't know that. That makes a lot of sense. Most people do not know. It's a huge pay bonus to go. And then once they sell it, they can buy, just do a lateral move into another stock. Yeah, and then it's like, oh, I got a headache. I got to leave in two years. That's right. And it's and that's why I said when I was offered that job, I said, sorry, I don't work for Goldman. I'd have to give up my company to take the job. That's not going to do it. That's a totally different thing. So but but some of those people are good. We're not talking the people that are the top of Goldman Sachs. They got some smarts on them. But are they just not willing to sacrifice themselves? Right. I mean, because if you actually do what's right and I we both have suffered quite a bit trying to do what's right. If you do what's right, they've learned over time being a good person doing what's right doesn't pay sometimes. And they just don't they don't people there's like that. And that's when a country falls on itself. Right. Because nobody's willing to do what's right. um goldman sachs is part of the club and it's um look i've known a lot of people in these things and i fought against them um and they're not traitors. They're not smart. They make the same stupid mistakes all the time. Then they just go to government to get bailed out because they know they have to. If they don't bail them out, then who's going to sell their debt? But does that get to the point, though, that they that they themselves are promoting people who aren't very smart because they don't care anymore either because they're never held to the standard that they need to perform. Look, it's all about what do you get out of it? When the Clintons left the White House, they took furniture. They had to give it back. I mean, do you go to a hotel room and leave with the bed? I mean, And my concern over the years is that you have a lot of people there that just want the power, not for good, just for self-gratification. I was this, I was that, whatever. They really don't care about the country. these neocons they don't give a shit about the country they don't care about the people they'll draft you, send you over there to die for whatever objective they want they've lost every single war you can go on YouTube and see Robert McNamara who was Secretary of the State that took us into Vietnam Before he died, he wrote a book and he did a video to apologize. Some 58,000 Americans died. He admits we were wrong. We thought Russia was involved. It was just a civil war. He's the only neocon that I give any credit to whatsoever. At least he came to see what they did was wrong So what behind this neocon mentality Because we know there a lot of money to be made in war right Is it that or do they have some other I mean what is their mentality that they can even think that war and domination nonstop is the way to go? Look up the Wolfson Doctrine. that's where this comes from basically it emerged after Russia collapsed in 91 and the Wolfowitz doctrine is that they would prevent anybody else from becoming a superpower to challenge the United States they were doing exactly the same thing that Khrushchev did. We will bury you. Communism is going to take the world. And they got their backs up and say, no, you know, capitalism is going to be spread to the world. So they did exactly the same thing that Khrushchev did and usurped American foreign policy. You got General Wesley Clark. You can look him up. In 2007, he did his speech. After 9-11, he went to the Pentagon. And they told him they were going into Iraq. And he said, oh, you connected Saddam Hussein to 9-11? They said, no. We just want Iraq. He was then shown, and he speaks about this publicly, He was then shown a classified document that said they were going to invade seven countries in the Middle East. And look, they were going into Iraq. They expected to win that in a few weeks. Even Dick Cheney said, oh, this will be weeks, not months. It was eight years. they then were intending to go right across the border into Tehran Syria, the rest of them I know people that were on the investigating committees in Congress on the Benghazi embassy attack and you can look up on YouTube They were using that as an arms operation, feeding arms into Syria to overthrow Syria and into Libya to overthrow Gaddafi. That's why it was attacked. All right. And on YouTube, look at Hillary's. She was questioned. She was Secretary of the State at the time. why did they attack the embassy? She refused to answer. She said, what difference does it make? Well, do you think that now, I mean, it scares me, to be honest, that we have incompetence coupled with criminality leading these things? Because that's a very unstable situation to be in. Does that scare you? um it's been driving me crazy um it's put me under a lot of stress um my doctors tell me I should either retire or find a girlfriend to take me away or something I think a lot of us that have been thinking about this is are under a lot of stress and I think that's why the every the whole world is really tense right now well i i got really stressed out i was talking to one general and he really really pissed me off um and i literally was screaming at him at the top of my lungs um nobody ever pushed that many buttons on me before say I don't want to go into all that, but it was just. Did he not care about the outcomes? Did he not? I mean, was he? I would say this. There's an arrogance behind all these people that they think we have the biggest military. Therefore, we automatically win. And I said, really open up a history book. Persia was the biggest. The Greeks took them down. Carthage was the biggest. Rome took them down. Rome then took down Macedonia. All right. The biggest always falls. If they didn't, we would all still be speaking Babylonian. I mean, come on. Well, but isn't there also consequences? So you're the biggest bully in the room. You think you're going to win. So you go in there, bully, and then everybody becomes micro, intensely focused at taking you out. That's what happens. Yes, this is what happens. My concern is this, that the Middle East, on both sides, this is a religious war. You have Netanyahu following biblical prophecy. And the Shia in Iran have their own prophecies. But both of them are talking about the end of the world. My question is this. All right. Let's assume all the prophecies are correct. Are they valid if you deliberately try to make some happen? Exactly. I think about that, too. There is a prophecy that everybody will turn against Israel. And that's supposedly when the Messiah comes. All right. So Netanyahu really doesn't give a shit. Europe has turned their backs on them. In the United States, you had 40 Democrats vote against giving any kind of military to Israel. And the polls among the people are turning against Israel. Unfortunately, I think he's deliberately trying to do this. he's like great the world's turning against us the prophecy is coming I think this is because there's one prophecy from Samuel that basically was that it reads to kill them, the women, the children and all the animals. And when, I think it's in Samuel, and when Iran struck some building with a missile, he went there to go look. And he quoted that. We will remember. So, I mean, it's... I mean, you know, they're definitely talking about this prophecy stuff over there. Then you have, you know, evangelical Christians over there cheering it on to bring on, you know, the second coming. People seriously believe this, but we have people in this country who really believe the end times prophecy, too. And I think they really, all of this, they think that we're bringing this in. They do not see using a nuclear weapon as bad because it's part of this end times prophecy thing as well, I would assume. How are we so stupid as people? I mean, come on. If we're the ones bringing it on, how can that be the prophecy? Look, many people over the years have tried to fulfill these prophecies and have lost. I mean, even Napoleon went, you know, even to Egypt. All right. His idea was to resurrect the old Roman Empire. You know, the same thing. It's. Something about power, something about having that much attention really gets people into these grandiose ideas. And they really believe they're part of the most important things in history because they are the chosen one. Yes. And also. Since I deal with. Probably more governments than anybody's. I get to see. The common thread. And this is my observation. We have these crazy people here in the U.S. with this Wolfowitz Doctrine to rule the world. Then you have Eridan and Turkey coming out. Even recently, we will take down Israel to resurrect the Arab world. world, and Turkey was the former capital of the Ottoman Empire, to resurrect the Ottoman Empire. We hear Macron, same thing. We will protect Europe. We will provide the nuclear umbrella. We don't need the United States. And for the last couple of years, I've warned that directly from my sources that he was contemplating that if they conquer Russia, they have 75 trillion in natural resources still in the ground. And that's twice the size of the U.S. national debt. and Europe will rise again like the Roman Empire and rule the world. America will become that subservient colony that we should have always been. And of course, it's still this Napoleon complex. That's why they call him the Petite Napoleon. To resurrect in France will lead Europe. he's already offered nuclear weapons to Germany to arm their planes you just had the head of NATO come out a couple months ago and even said confirming what I have been hearing for two years and he chastised them and he says if you think you can take down Russia without the United States you are dreaming that's the head of NATO that just came out and said so he's confirming publicly what I've been saying and hearing for at least two years well they don't have the militaries Europe hasn't built up their militaries because they were relying on the United States although Germany has been investing so they've started investing a lot right this is what they're doing and they believe their own bullshit. Oh, Russia's weak. They couldn't take all of Ukraine. Putin never tried that. He was only after the dumb boss. That was it. Not to conquer all of Ukraine. But the propaganda is, oh, he wanted Ukraine. He can't. Ukraine's winning. Blah, blah, blah. Whatever. What is he doing now? He's just kind of bleeding them dry and having them die on their own vine and just say, we don't want to take you over, but we got to at least hold you at bay? He never wanted Ukraine. Look, we had employees there in Kiev and in Donetsk. And I can tell you the two wouldn't even talk to each other. The hatred there. And I tried explaining, you know, they're taught and raised that Russia, took all the food and starved and killed 7 million. And I said, do you realize that's not true? Oh, how can you say that? Because first of all, Stalin was from Georgia, not from Russia. His number one, his right-hand man who proposed the idea and carried it out was Kiganovich, who was born in Kiev. He was Jewish, and most scholars believe he took all the food from Ukraine as payback because they had killed all the Jews, basically because they were neo-Nazis. That circles back to what I said earlier. That circles back to what I said earlier is there's always payback for something that you did. And people are going to do whatever they can to get back at you. And you never really win. No, you don't. I mean, this war in Iran is stupid because all you're doing now is creating the next generation of terrorists. You killed my father. You did this. You did that. So do you think Putin is going to die in a missile attack? I mean, do you really think their parents are going to cheer the Americans coming in? Not if you kill their family member. It's not going to work. And the fact that people can't see through basic things like that, I just wonder. It's like, how can you kill so many people and then think they're going to like you? It doesn't work that way. Do you think that Putin has his head on straight? Or do you think he's one of those leaders you wouldn't sit down with and have a cup of coffee? ironically putin and zing are probably the two smartest guys on the table um and what does that say about us and and that's why people are scared because they truly have the ability to to change the the power structure of the world and if we fall out of power then we're worried because we get back to the same thing hurting hurting your family members means that we created hatred are they going to take revenge on us if they end up having power or will the power just balance out in the world well that's the question right told them they don't particularly care for it but you're blocked you think with the blockade you're going to bring Iran to its knees what you're doing is and they confiscated a couple of ships where were they going China all right jet fuel has Lasuncia canceled 20,000 flights. This is not people have no idea the Strait of Hormuz is probably the most important geopolitical tool in the world. All right. Most of your sulfuric acid goes through there. Why do you need that? You can't mine copper without it. Nickel. Then you have fertilizers. You get food shortages. All right. You're cutting off jet fuel. I mean, and people don't understand. why did Iran attack? They sent more missiles and drones against UAE than they did Israel. Why? We had offices there. That was the new Switzerland. Because Switzerland confiscated money from any Russian just simply because you were Russian. Switzerland's not safe. Capital began to flee to Dubai or Singapore. In World War II, the two countries that survived was because they were neutral. Sweden and Switzerland. Sweden joined NATO. I mean, it's all over. And then they wonder why the capital is fleeing. This is why the EU is pushing for CBDC so fast. Because? Because they know that the currencies are going to collapse? It's capital controls. Whenever you end up in war, Europe always turns to capital controls. All right. During World War II, you couldn't even buy gold. so the europeans that figured it out they bought gold stocks they couldn't buy gold in in europe so when the conference came silver so we're seeing silver bars you had to turn them in do you think that could happen here would they come i don't think in the United States, but I mean, Europe, our computer shows, and I've said this on podcasts for the last couple of years, our computer was forecasting we would go into a stagflation, more of a recessionary period into 28. But Europe would go into a depression. And that's what we're seeing now. I mean, we're seeing that. And did you predict it was from this war type situation because they're much more fragile than we are do you think that this is going to trigger i mean whenever you're in these kind of desperate situations it can trigger some pretty weird behaviors are you do you extreme behaviors do you think yeah look um i've warned them you know you're going after with this blockade and you think you're going to force Iran to bend the knee, you're putting China in a difficult position. It's almost a proxy war, right? Right. At what point do they come involved? Now, they're already providing technology, targeting U.S. ships, etc. to Iran. And you've got, they're sending in weapons and now the U.S. is like, oh this is outrageous Will we do it to Ukraine Oh that right It a proxy war for the United States against Russia It very clear in NATO But does your systems predict that China will get involved based on what they are investing in Oh, yeah, absolutely. And when do you think that will happen? There's another element to this. I just did a report on it because most people have no idea. All right. We're looking at a sovereign debt crisis. Now, Iran understands this. Attacking Dubai, they've lost billions of dollars, has fled. I had to get my staff out. We got nobody there now. Why? UAE has now come to the U.S. asking for swap lines. Because they need money. Gold went down. Our computer forecasted would make a correction for a couple months into April. And people go, how can it go down during war? Well, people don't realize. One, Russia was selling off some gold because of the sanctions. But two, Iran attacked. There's a big AI facility in UAE. Spent about $30 billion creating it. All right. Amazon, OpenAI, they're all there. Okay. When they attacked it, it didn't cause permanent damage. But the banking system in UAE was down for seven days. People had to use gold. You had no access to a bank account. I couldn't send my staff salaries. So that's what decreased the price of gold? Because people were using massive amounts. So the demand, they were being supplied with it. And so, but that actually in the long run will increase the value of gold because once people start using it. Yes. But when the banking system was shut down, they needed, you know, to survive. Wow. And that, but see, that sends a long-term message of the value of gold. And that's a long-term driver of it increasing. Now, what else Iran is doing, they're very smart. Attacking Dubai is one thing, but then they also attacked all the refineries of the other Gulf states. Why? Because they're all grossly in debt. People don't understand. They think the Middle East is rolling in money. during covid oil fell to six dollars and fifty cents they borrowed extensively and if you check out the i don't know how much is actually out in public but china was cutting deals with everybody so china's got its foot in everything iraq the most um they iraq borrowed extensively from china and their contracts are very cleverly written if they default they get to take the assets of the country wow but that's what our world banks and stuff were doing but they did it differently they just made you indebted to them these guys are just outright taking it? So what you're talking about here is that I think the real shock that's going to come is that people do not think that the Middle East is in any kind of a debt crisis. And Iran attacking the Gulf states and putting this chokehold on the Straits of Hormuz. they can't sell the oil if they can't sell the oil they default so they know they are creating a financial nightmare for the west cutting off oil but also setting in motion a sovereign debt crisis which can then undermine the banks this is much more This is why I already said that. Well, do we have people in this country that are that are in power who are smart enough to understand this? I have a hard time believing that there isn't anyone that but they probably don't have the power to make a difference. So but if they if we don't have the people who have the intelligence to understand this, we are in trouble. look um i was surprised i was called and uh i was initially told that um they were inviting me to a briefing on what they were doing in russia so I said you want to brief me I said okay so I took my assistant Hannah with me we get there she has to leave the room because this is national security now then lo and behold they asked me to write the peace plan and they said we're very sorry what the Clinton administration did to you but it gave you more credibility with Putin because he knew that I refused to participate in the 2000 regime change that the Clintons were trying so I wrote the peace plan I asked them I said is this sanctioned And they said yes. Then I did get a letter from Trump thanking me for writing it. Wow. When was this? Okay, when was this? This was at the end of last year. Okay. It's on my site. I put it up. I published it on my sub stack of you wanting to do this. I remember. Yeah, no, you can do that. It's fine. The letters there. Yeah, I did that back then. but here's the issue why are you calling me in to write the peace plan circumventing the state department you know why I think it is because I talk to other people who are talking to world leaders and things and I think because we are in such a quagmire of bullshit sorry for my language that they think that the only way they're going to get it done is to completely get out of that bullshit environment and get to somebody smart, do it on the side and inject it. And that's what they did. Probably. I mean, they know that Putin knows me. So I think that's what they meant. It gave you more credibility. So I guess by it coming from me, it is more credibility than if it came from the State Department. But what the hell does that say? It says what I just said. I mean, it's that bad It is I mean, for me to be Called in to write the peace plan For the Are they going to use it? Are they going to use it? I think it says something Oh yeah, no Look, everything that Trump has basically said Came from that plan I think that it says That Trump has to do it quietly he has to hire outside people he can't use the system because it's that corrupt I mean look at the Epstein files and everything that went on with that look at everything that's going on the only way to get things done is to use back channels smarter than people than what they have and people who aren't corrupt and do it all through back channels I mean that's what that's telling me that's actually a good sign that was probably one of the most hopeful things that I've heard in a long time is what you just explained here because they were smart enough to do that it surprised the hell out of me i'll say that um and i'm probably the first person that ever had to write a peace plan um outside of the administration um but that's very good that that gives me some hope it gives us hope that that they're thinking they're really being strategic And now they can't come out and say they're doing stuff like that. Right. But what was also interesting at that meeting was that they knew my position. I had written extensively on Ukraine, who's really started, et cetera. And they called me in and said, we agree with you. We will not be at war with Russia. It will be China. Okay, now what do you think about that? Because that makes me nervous, too. I think they know they need to do something about China. But do we really need to go to a hot war? And what does that mean about Israel? Are they aware that Israel is out of control? I think so because of this ceasefire deal. Trump didn't even bring Netanyahu at the table. So I think he realizes at this stage in the game that they used him to set him up. That's my view. They made Trump look really bad. They are making Trump. They're going to lose the government because of this. They have, what, six months to turn this around. Yeah, and they better do it quick because you get what the computer does show. And I did a report on the fate of Israel. It's caused a bit of a stir. But I put in there, this is what the computer is showing, that the United States will disavow Israel. I am not surprised. I think that the politicians are getting so much forceful pushback that, and they all want to be liked, that they are ready to just, you know, because they're going to lose the government. when do you think that'll happen do they have to lose the government for it to happen or will they do it before perhaps by next year 27 doesn't look very good um and let me explain something about the computer um i've said this before when i mean i was an international hedge fund manager so i just wanted a computer to tell me okay watch the entire world what ones to buy what ones to sell i love the story yeah but we were probably one of the first in currency and what i didn't realize back in the 70s was that currency was um critical and i was getting dragged into governments all over the place i mean even milton friedman came to listen to his speech i did in chicago and I was done and he comes up he says best speech I ever heard and then he said to me you're doing what I just dreamed about and I was like huh we became friends and I realized in 1953 he had written about a floating exchange rate and how it would put pressure on governments politically. And that's what I was talking about. And that's what he said. You're doing what I just dreamed about. And when he wrote that in 1953, the floating exchange rate didn't come until 1971. So it was all just theory before. And so here I'm giving a speech on capital flows and running around from governments I would say that was probably early 80s. How old were you? If you don't mind me asking. You were a young whippersnapper doing all this stuff. Oh, yeah. No, I started very young. I've been in this game for a long time now. but we ended up getting in 1985 got a call from the central bank of Lebanon and they had a ledger they found in the basement where somebody wrote down all the prices of the Lebanese pound back to the mid 1800s and they asked if we could create a model so I said sure we put it in the computer and out came that currency was going to crash and I said your country's going to fall apart in 8 days I said there's something that's got to be wrong with the data and very calmly they asked they said well what currency does it recommend so that's a strange way to respond and I said well it says the Swiss franc and eight days later the civil war began so then i i we had the same thing with uh one of the biggest shippers in saudi arabia he calls me he says iraq's going to start attacking shipping in the gulf tomorrow what do you think gold's going to do i said you tell me a war's going to start tomorrow yeah yeah yeah what do you think so by 98 you know i said real luck russia is going to collapse. I give it a little more than 30 days and that was long-term capital management. By then I was well-seasoned and I realized that somebody always knows in advance. They, Lebanon came to me, they already saw the money moving. So they were just coming to me for the time. They were the ones moving it. They know what's going on, what's happening, and they know why they moved it. it's just interesting. So, you know, I got to meet Margaret Thatcher. I mean, all these people, it was all because of currency. I was being dragged into every, you know, and that's what Milton was talking when I gave that speech. Milton said I was just doing what he dreamed about. Indeed, the currency was putting these countries under pressure. the computer picked up 9-11 it picked up october 7th at hamass attack all the the defense stocks started moving a week in advance um sec used our stuff looking at who ball puts on airlines before 9-11. Somebody always knows in advance. You know, they were just talking about, I think, arresting one of the guys in Venezuela because he put some bets on that Maduro would be taken into custody or something before they did it. So he made some money on that. So it's always the same thing. It doesn't matter what geopolitical event we're talking about, somebody always knows. That's right. And the computer's been, because it's tracking everything, and that's why we have so many institutions to watch it. Because if you're just looking at one country and you're seeing a blip there, then you know it's locally concentrated. But when you're seeing, like we're seeing right now, June coming up as a critical period in time, but it's across the board. So what does that mean? In June time, it's across the board. Are you seeing that? Because before you, I mean, you were very accurate when you said war is going to start and you were within a month or something back months ago. What are you seeing here? Is it just means that it's going to expand to all these countries? We're looking at World War III more from an escalation. Well, yeah, it does show World War III, but let me qualify that. It's also saying not like World War I or II, where it's one adversary. So we're seeing this rise up everywhere. Thailand versus Cambodia you know Pakistan you know Afghanistan China versus Taiwan North Korea versus the South it's everywhere so it's not that it's a unified world war but you're getting wars everywhere it's like what the only way I can explain it is that wherever there was a previous grudge and when you turn the economy down, that's when war comes. We have all the data and when everybody's fat and happy, markets are going up, we're all making a lot of money, nobody cares about war. Let the economy turn down, get the bastard that did it. That's just the way that... Well, get the bastard that did it and also this is a vacuum of the opportunity to take power. then you get people in there that um to seize power they tweak the you know the turn the knife and stick it in a little bit further that's right um that's what this this is the concern because that's what this means this means this is where power realigns do you um foresee this this these conflicts being more risky because of just how much technology we have. Yeah, I mean, I was surprised I got called by a Russian TV to go on there because I had written a piece on it that our downside is that we have all these fancy high-tech weapons, very nice. But they cost so much money. And the lead time that, I mean, we've gone through at least half of our stockpile. Yeah, but then do you think that will motivate them to use energy weapons and other types of weapons that we have that are even more dangerous? I mean, we have energy weapons that they aren't, I think they tapped into it when they went to Venezuela. And I think that, you know, that's what the tactical nukes are about. Energy weapons are another one that they just, they don't want to admit they have those. That's the issue. Yeah no that clearly you don want to talk about that You don want to reveal your hands and say okay here what I got Now you want to play poker? That's what I mean. Well, nuclear weapons, they admit to that because everybody knows it, right? They probably won't even admit to that if they didn't have to, but they have to because that's what everybody knows. So they lead with that, but there are these other weapons that are really powerful. And they're more stealth, too. you know what our computer shows is that this is all coming to a head by 2032 and you can see that long it takes a long time alright this is a process where we get a new form of government I'm hoping it's going to be more of a direct democracy I believe that Klaus Schwab was his great reset was taking R2032 and trying to push it in the other direction but to get to that point where we're saying what our computer does show is that this is the end of republics. Republics are generally the worst form of government, period, because they're so corrupt, and they don't represent the people. They're clearly not. Right, they don't. And like I said, I can run for Congress. I'll tell you whatever you want to hear. I'll save the whales. It won't rain on Sundays. Whatever you want me to do. And then I get there. Day one, there's a meeting. Congratulations. Glad you're here. This is how it works. And all you've got to do is look at the votes. They're down party line. That's right. The Democrats are 99%. Republicans are about, depending on the one, they're about 90, 92. I mean, you get a little more independence. That's the only party you can belong to if you're more independent. But it's still really highly controlled. Oh, yeah. No, these things are, this is the way it is. I mean, I've been dealing with governments more than anybody, I think. Well, so you really know that. What does that mean by direct democracy? And is it going to be a worldwide thing or is it going to be local? because local is where we need it to be. Worldwide is scary. No, I think we're definitely looking at it. Europe will break up. Canada is going to split east to west. I was just up there to do two conferences, one in Calgary and the other one in Vancouver. And I had explained to people, Look, this is not just Canada. You know, this is taking place everywhere. It always happens when you get big federalized governments. And they don't listen to local people. All right. You had, you know, Biden, his last day, outlawing gas water heaters. You know, what? I know, stupid. It's the stuff they're doing is stupid. But that's why I asked you whether the elite, the people who are putting them in a place, if they're regretting what they, I mean, if this is what it's leading to, they look at these trends too, don't they? Or are we dealing with people at the top who aren't that smart either? Well, they're different groups. I think the biggest problem with the Biden administration was that it was really being run by the neocons and the climate control people. All the decisions were just either. I mean, Lincoln, he's the stupid one that removed Russia from SWIFT. Again, oh, we'll put pressure on them. That will bring them down. Okay. And he actually had the audacity to threaten China. If you help them, we'll do the same to you. do you understand you just divided the world economy well they were so dumb when they took out i have my sources in russia when they took out the automobiles out of russia you know what happened you know you look at your numbers all that did is within i think six months china replaced all almost all nine eighty ninety percent of those imports now are coming out of china we built up the china automobile industry the russians are just as happy having their automobiles and actually they pay less for them. Right. We didn't do anything. We just hurt our automobile industry and helped build up China. Look, these people, I've been to dinner with some of them. They do not think beyond the end of their nose. They're very myopic. And you see, it's the same neocon strategy. Okay, we take Russia out of SWIFT, we'll hurt them, and no fault. We'll put a blockade on Iran, they can't sell any oil, and no fault. It's always the same theory. Nobody ever asked, did it ever work? Well, how did they not know that the Strait of Hormuz was going to be used as a geopolitical power, you know, card? How did they not know it was that we were putting the world economy at risk? Because they don't look at that. How do you know? Isn't that enough to fire everybody? I mean, I don't know. It's like, come on. Even taking Russia out of SWIFT, you don't realize that they can come up with an alternative? And you threaten China? That's what BRICS is all about. Then you have the conspiracy. Oh, it's the dollar. They think the dollar is going to go down. It had nothing to do with that. It was geopolitical. All right? You're not going to be able to access the world economy because we're kicking you out of SWIFT. okay we'll create our own system well we already had our own system thank you very much we're going to hyper accelerate it right yeah it's that's why i say honestly people come up with these conspiracy theories and some don't like me because i say you're wrong i'm sorry you're giving way too much credit to the intelligence of these people well see i that's where i do i'm like okay because i have more respect for them i give them credit i'm like i can't believe that they would do this so because i respect them there has to be a reason but you're saying i know these people there isn't they really were that dumb it's a very myopic um like the climate people oh That's all they think about. Nothing else. What are you going to do? All right. COVID, what that was about, I can tell you, Klaus Schwab made phone calls in advance saying a virus is coming. The WEF even sold a lot of their stock in advance because they thought it was going to crash. All right. It was all for climate change. Stop people from commuting. And so we'll save the planet. They're 15 minute cities. OK, so now you have a real estate commercial real estate crisis. All right. What did you do? You have no idea. OK, if they can't go to work, then who's going to need the office buildings? I'm telling you, these people, they do not connect the dots. I believe that because it was really that dumb. I mean, you look at this stuff. They don't understand the consequences of their own behavior. Because they only focus on that immediate issue. Oh, we can bring down Iran. Iran is one of the largest energy reserves in the world. On top of that, I even told them, I said, you know what I would do? I said, I'd send some divers down there, place some bombs along the cables. What cables? I said all the cables that connect the internet and every banking from east to west runs through the bottom of the Strait of Hormuz. If you're going to take me out, the last thing I'm doing is pushing that button. And they just look at you like, I didn't hear about that one. Really? Because I don't understand that the whole world is run on technology and the internet. I did this in conferences years ago now. I said the structure of the world has changed, but the people who are dominating Congress and the halls of power are still operating from two decades ago. Oh, yeah. I mean, that really is true. But that's also why big tech and some of these advanced technologies and these advanced people can completely take advantage of them. Because they have no idea. They're sitting ducks. They still use, the government still uses fax machines. I mean, what is that, 30 years old? They have no idea. And so to Trump's credit, you know, bringing in, this is why it scares people, bringing in big tech, because we know how bad big tech is as far as being used to manipulate the public and to control and surveil. And I saw you wrote some articles recently on that. You have to work with them because they're the biggest companies that the world has ever seen. Right. And they have power that most people in Congress have no idea what's going on. They don't come from those backgrounds. They don't understand it. Not that they can't permit, but clearly. Even in programming, I've been, I've even, you know, spoken at the American Hackers Association. association um i'm one of the probably with the form you know one of the earliest people in ai and there was always two theories one that they make hollywood movies out of you create a computer it suddenly becomes alive oh i don't like you because you have a blue shirt on so i think i'll kill you today you know um as a programmer i cannot um see how that's even possible i know i agree with you you know it's it's not not with the current technology if if you came up with up with biolog biological chips and use humans or some other living organism with chips and you did it with based on biology. I mean, and you're talking way in the future, maybe, but based on our current technology now, but those algorithms can get out of control because they don't know what the hell they're doing. And there's bugs written all over them. Well, the problem they have is they thought that the human brain is just nothing more than a supercomputer. So if you throw in all this data, shake it up, it suddenly becomes alive. that's a simplistic way of thinking about it. That's what they think. Well, let me put it this way. IBM lost about, what, a billion dollars. They created Watson to do that and then sold it for scrap because it didn't work. I can't even believe people think that. It's just so amazing. It can simulate one to an outside person. It kind of looks like it, but it's not. I can make it, you know, When I was first developing AI, I wrote a program and used my kids as the guinea pig. My daughter would talk to the computer. It's very easy to do. Oh, so do you have a pet? Yes. Oh, what's his name? Oh, Fluffy, whatever. And next time she comes back to the computer, oh, how's Fluffy? Oh, remember. she used to bring her girlfriends over because I had back then Dragon Systems which you can buy today for dictating and stuff but back then it was hardware so it was a board I would just stick it in the computer and the computer would talk so she's bringing all her friends over, my computer talks, why doesn't yours? you know that's funny and they were all going crazy you know oh it's alive and she came home from the school one day and i had it apart she started crying you killed it i said no it's well and okay now all you have to do is build in some psychology into it some parameters around psychology next thing you know they really think it's smart oh yeah no you can you know um you can really you can mimic anything you want with it and make it appear to be that's right conscious but it's not that's right okay you curse at it and those are cursed all right well screw you you know whatever it knows it is a library and these are curse words I know it's not that complicated I mean it's not I mean it is for someone who doesn't know but it's really not the problem is is they've they've when when you were doing it you had to be really efficient because the hardware wasn't that great now the hardware is a lot faster so they're not that efficient and it's layers upon layers and there's bugs written all into it I mean that's it's just not the same thing and because of the way the algorithms are written it can take three months to trace down how they made even a single decision you know it's really bad well they went down the path of a neural net and neural net was this idea that if we create a network to mimic the brain it will come alive and I basically went the other direction and said sorry that's never going to work I don't see that I don't know why they don't see that I know that when I was in college and then I was first doing all this work we had the supercomputer center and the people are I was working with was also they were doing that they were mapping out the brain and doing exactly what you're talking about. And it's like, it's okay. That's not, you know. I don't, it's like the people that followed Hitler. They just get caught up in that narrative and they don't think outside the box, you know, and with the Ayatollah, I mean, it's always the same thing. So this technology, oh, we do this. Oh yeah. Okay, fine. They make Hollywood movies out of it. I mean, it's fun in the sense of thinking about it, but it's not. Exactly. But it's powerful. It was a powerful way to do computing and to speed up an efficiency. I mean, if you look at it like that, it's like, okay, that's really great. But if you actually think you're creating a living thing, then you're, okay. You cross the line and never, never land, you know? I agree with you. Okay, you are someone people absolutely need to follow on a regular basis. You publish articles every single day. I'm looking at multiple articles a day. And the intelligence that you're giving people is absolutely critical. I think everyone should be following you, especially policymakers, for crying out loud. Where do they follow you? You can go to armstrongeconomics.com. We don't even sell advertising. You don't have to put in an email. We try to keep it open. We're not blocked anywhere. We have people reading it in China, Russia, everywhere. That's our purpose, is to keep it an open source for the world, basically. That's really... And I hope it stays that way. Yeah, it's... And, you know, I came to realize that cyclical analysis existed outside the United States and Europe. And it was part of the Asian religion even. So when I would do seminars in Asia, I never had to explain what cycles were. Only in America and Europe. and I did some research into it and basically it was the rise of Christianity they assumed anything that the Greeks had done was paganism and so they rejected everything and that's why we went into a dark age and you've heard of Fibonacci Fibonacci wrote a book before then mathematics were the tool of the devil the captain of a ship to navigate had to be Jewish why? because they had to use math a Christian couldn't do so I mean it's interesting to realize that's why we went into a dark age earth is flat not round we rejected everything and um we paid the price for it that that created the dark age we still are we still are we some of the silliness that we're not embracing what is true okay well thank you so much marty i really appreciate talking to you i always learn so much about what's going on and you're from your perspective. Very interesting. And thank you so much for joining the program today.