You just take all these wars. I mean, does Ukraine really think that
it can destroy all of Russia? I mean it's absurd. And the same
thing. You look in the Middle East. Does Amas think that they're going
to really wipe out Israel and the role the Jews are going to leave the
Middle East? I mean, what's your end goal here? Yeah? There
is. You know, you can't get to the piece because nobody will talk
to each other. You're listening to Carrie Lutz's Financial Survival Network, where you
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Survival Network on your ows. Terry Lutz, Well, we've got in our
extremely popular series The World according to Martin Armstrong. Martin Armstrong is back for
installment number five, and boy do we have a lot to talk about here,
Marty. Oh, we do live in interesting times and that's a curse
in the Chinese Confucian system, right, Yeah, so interesting times endless wars.
It seems like the military industrial complex, the neo cons can just never
have enough wars going on in the world at any given time. Well as
you know, I know some of them, and my opinion is that communism
just fell by itself because it was effectively inefficient, and they, you know,
basically, I think, just regret that and continue. They don't want
to admit that communism collapsed. I mean, billionaire Chinese and Russians, et
cetera. I mean, you wouldn't have it under communists or regime. The
government owns everything. And I think when this kind of all started when cruise
chefs said we will bury you, and they, you know, all rallied
up together, all right, Well, we'll put you know, democracy around
the world. Of course, their version of democracy is really totalitarianism anyhow,
But as Mark Twain said, if voting really mattered, they wouldn't let us
do it, you know. So I think that you know that they are
just constantly pushing for war because they never got to fight it, you know,
to end democracy, I mean to end you know, the communist state.
It just collapsed. And speaking of communism being inherently inefficient because from an
economic standpoint, the price functions not allowed to function. The pricing mechanism isn't
allowed to function. It's set by smart people who know better than the market,
and that leads to the inefficiency malinvestment kind of kind of like what the
Federal Reserve does with interest rates. Right, But China is encountering the very
same thing now as the former Soviet Union, right. Yeah, you you
know when China opened up, you know, I was invited there after ninety
seven and I went, you know, for the nine in the Asian charity
crisis. So I think I was the first Westerner they invited in, and
I would ended up in this room actually answering questions about capitalism versus communists,
like they were monitoring there were two and forty nine varieties of tea, and
they were monitoring absolutely everything in the country, but they were not interfering.
And I had to answer questions like, well, why is this tea selling
for like a dollar here but five dollars over there? I said, well,
where does it come from? Oh? Here? I said, well,
first you have transportation costs. They go, oh yeah, okay,
you got to get it there. You know, communism if it was a
dollar in one place, it's a dollar everywhere, even if of course it's
ten dollars to get it there. You know, that's why the whole thing
just really collapsed. Plus, you know, you were not allowed to think
or create something, so any innovation was largely in weapons or things of that
nature. They never developed a consumer economy. You know. That's the famous
nineteen fifty nine kitchen debate of Nixon and krush Chefs, showing all the innovations
in the American kitchen that did not exist in Russia. But so I think,
you know, that's these people were just against communism, but they ended
up hating the very people that are there rather than what the system was.
So I mean, even when when Reagan came to office, the neocons were
against him for meeting with Gorbachev. You know, they actually came out and
said, oh, you could never trust to Russian you know, and you
know it with NATO invited Russia to join. That's why there was the coup
against Gorbachov. And that's when Yeltsin is throwing the tank and the whole thing
in ninety one collapse. But so, I don't know, I just see
that these people are regret that they never got to fight, you know,
the great fight with Communism, and so it's just endless wars forever. I
guess they'd never sun su that every war is won or lost before the first
shot is fired, exactly, and won the war. But it wasn't enough
for them, No, it wasn't. And you know it's I mean,
just you have to look at this stuff like giving long range messiles to Ukraine.
That's not for the front line, that's to attack Russia. What could
go wrong? They always wanted to escalate everything. You know. I have
some friends in Israel and they're starting to wonder if Israel is just a vassal
state, you know, of the US. And you know, because a
lot of people don't believe that, you know this, this attack was totally
surprised, you know, Harber wasn't either, right, No, absolutely not.
I mean it even that all come out that the US had broken the
code, they knew everything. And then there was a big set investigation on
it, you know, because you know, alleging that FDR new and it
concluded, well, we're not sure if he knew or not, and hey,
well we just learned. Look, we learned things over time through improved
technology. And through people fessing up when they no longer have anything to lose.
We just found out that the magic bullet in JFK's assassination wasn't so magical
after all. No I knew Orle inspector who came up with that little theory
lived about three doors from me on the beach down in New Jersey, and
when I asked him about that, he would just smiling up or not reply
yeah, well you plead the fifths. Yeah, but yeah, Like that's
the thing like news today. Like I think the news was always controlled,
but now you can see it's controlled, and you can deconstruct, you can
drill down. Like there's a service that I subscribed to looks pretty good called
bround dot News, and they show every single publication that's carrying the story on
the right, on the left, they even say who owns these publications?
And you get a view of the news that you never really could get before.
When Walter Cronkite got up there, his word was was literally the law.
It was like God was speaking to you and nobody questioned it. And
now I challenge you to find the news reporter that someone doesn't challenge or everyone
doesn't question. Well, yeah. I mean, look, this is basically
exactly how they brought about the communist revolution. You know, they just you
know, they controlled the press, that was it. And look, thirty
years ago, I would say they least pretended to be honest. Now they
don't really care. It's in your face. It's like, yeah, so
what what are you going to do about it? You know? Yeah?
I mean even like going after Trump? What's happened since then? Argentine?
Is it? Oh that's a good idea. So now they're criminally your opposition.
Brazil is doing going after Bols. I mean, this is now going
to start spreading. Doesn't putin do things like that? Has it? He
like off the opposition or just tossed them in jail? I mean what other
countries do that? You green? Yeah? Right, and uh, you
know it's becoming an alarming worldwide trend of militarizing or weaponizing. Well you called
it. I thought you summed it up well when you called it. The
Department of just Us reminded me of George Carlin who said it's all a big
club and you're not in it, and that's pretty much it. It's it's
look, they they've always done this to some degree. I mean I had
at an executive VP of I think he was with the New York Post and
they put him in prison for eighteen months, and he explained to me how
it actually works. He says, the government will call and say, we
have a favor. We want you to kill the story or spin it this
way or whatever. If you don't, they come after you personally, and
they put him in jail. I think for eighteen months. Were the absurd
hiring someone to work at the Post who didn't show up a no show job
than that the government runs on no show jobs exactly. I mean, it's
just absurd, absolutely absurd. I mean I've been to Brussels where you know,
these guys get salaries, but then they actually get an extra couple hundred
euro if they show up and you'd see them in the morning going over and
they slide their card in and then they tear around a leave so they get
the extra two hundred. I mean it was just like, you know,
do you steal all the soap out of the bathroom there as well? You
know, probably do. I wouldn't put it past them. Eight So,
you know, fighting the cycle, like that's what central Bank's purpose is to
fight the cycle that's been occurring for thousands of years. Right, we have
first we have speculation, then it becomes excessive, a bubble occurs. But
before you could print money, we only had one bubble at a time.
We couldn't have multiple bubbles. It's futile to fight the cycle, isn't it.
Most of the time these cycles are accelerated by government itself. They're always
trying to eliminate the business cycle, which is what Coral Marks was all about.
He didn't like the boom and bust, so he thought, if he
took all the assets away from everybody, like Klaus Schwab, you'll own nothing
but be happy that that would terminate the business cycle. And it did not,
because the business cycle includes everything, war, climate, you name it.
I mean, there's a book out eleven to seventy seven BC. I
mean, when you know the climate turned bed up north, all these people
invaded the south and wiped out most of the civilizations. I mean the Egyptians
survived, but they wiped out most of the Bronze Aid civilizations. They called
them to see people, they know where they came from, but they were
all driven south because of climate. I mean the same thing has come out
now about you know, why did you know Attila the hun invade Europe.
There was a massive strout over there, so they moved. You know,
most of these types of things or are caused by that. So climate's always
been changing. It's you know, this propaganda, Oh, we we've created
warming since the global you know, development of the industrial you know, revolution
is absolutely absurd. I mean, it was far warmer back during the Roman
period. Yeah, that's true. We had and we had the Middle Aged
mini Ice Age and the Medieval warming period. Nobody can explain that. Yeah,
they're just cycles that always take place. And you can read you know,
basically John Adams complaining about how cold it was in the seventeen hundred.
It's that the ground was frozen two feet deep and they couldn't even plan anything.
So, uh, cycles. We got to see a crash in October
here, what's what's the system saying? What's Socrates saying? Well, yes,
we have changes here going into your ends, that's for sure. We're
not looking at a massive crash in like the stock market like some of these
people were talking about. For you know, like nineteen twenty nine. You
have to really look at the fundamentals behind those charts and nineteen twenty nine.
Basically, first of all, it was most of the money it was all
over here because of World War One, right, and that had the Auto
Revolution, so it was kind of like a dot com bubble, and all
the foreign money was here to begin with, and so they were just blurging.
Then when Europe got into trouble, they started pulling the money back out.
That creates the crash here nineteen thirty one, all of Europe defaults.
Britain went into a moratorium. Eventually came out, but you know, you
can buy a lot of their bonds eBay, you know, and frame them
up if you want. We used to have a whole bunch of them to
remind us what happens to government debt. It always the faults. So you
know, it was different back then. You know, the dour went up
dramatically. That's why Roosevelt even confiscated gold because the dower had gone up so
high, because nobody wanted the assets. They were just looking to park money,
and so he confiscated the gold and then you know devalued. The dour
took gold from twenty dollars in the sixty seven cents to thirty five, so
you know that was a rise in the dour at that point. And then
put all the Europe is the faulting. So we have to look at these
things. This current situation is the opposite. You have to really say,
okay, fine, you want to sell all your stocks and go buy you
know Biden's latest issue of bonds when he just you know, sent another one
hundred million dollars over to Ukraine, and and and now the fight Israel as
well. Uh, I mean it, Our problem today is government that they're
they're coming in with CBDCs because in their view, they would collect thirty five
percent more in taxes if paper money was eliminated and everybody had to be on
on the books. Uh, And they take to collect thirty five percent more
in taxes. That's what they estimate the underground economy is. You know.
So you know, when you hire that sixteen year old girl next door to
watch the kids while you and your wife go out, where's her taxes?
You know, Uh, it's just absurd. You know, you find one
hundred dollars bill in a parking lot, where's there fifty percent? You know
it's mutatum. So d dollars and the bricks currency. I mean, is
this a question of the like Mark Twain said, rumors of my death are
greatly exaggerated. Oh absolutely. I mean, look, the strengths behind the
dour has nothing to do with gold, has nothing to do with the government.
All these emerging markets when they borrow money, where do they have to
go? New York City? New York is basically it's the financial capital of
the world. London used to be. Well in Miami now the financial capital.
Well, yes, they're they're moving in all to get to Miami,
for sure. Yeah, but you know, the brigs are not in a
position to replace the door. Is China going to fund all these and you
know, and emerging markets and lend money and you know their backing system is
not going to handle that. You know, there's nobody there to replace the
financial markets of the United States, So the deepest in the world. And
until you know, that's what the strength behind the dollar really is. And
we have to understand that. It's you know, even when we get into
this war stuff, they're fighting over borders and this is also antiquated and ridiculous.
Yeah, this is the twenty first century and we're acting like it's medieval
times here. Yeah, I mean that's why Adam Smith even wrote wealth of
a Nation. Why because he was It was a retort against the French physiocrats.
They said, the wealth of a nation is its agriculture, and therefore
that started the empire building. The more land you have, the richer the
nation is. And Smith said, no, wealth of the nation. If
you made a a saddle in London and you sold it to somebody in France,
you still game on with gold. So it wasn't just agriculture. But
these people fight over borders that are absurd and they're arbitrary. Meaningless, the
border that they're fighting over is arbitrary, and the one that they want is
arbitrary. You know, you could go back to biblical times so well you
know, hey, all this land was submerged at some point, so I
who learned it? Then? Yeah, it's you just take all these wars.
I mean, does Ukraine really think that it can destroy all of Russia?
I mean it's absurd. And the same thing. You look in the
Middle East, there's a mass think that they're going to really wipe out Israel
and the role the Jews are going to leave the Middle East. I mean,
what's your end goal here? Yeah, there isn't you know, you
can't get to the peace because nobody will talk to each other. All right,
So hey talking about about what's happening in the world here, the endless
wars, the fighting, the cycle, all of this. So the dollar
is here until something dramatically goes wrong and it doesn't exist and it can't be
used anymore. But when we look at China, who seem to be the
successor to the US, the place is imploding. Their real estate market,
it's hit the skids. More distressing than their real estate market is the quality
of the infrastructure that they have built since since the country opened up. You
know, when you go on those highways, they're like they're a mess.
I mean, we have defective infrastructure in the West and in the US plenty
of it, but they have like zero standards or they adhere to zero standards.
Just do a search for Tofu drag construction and you see that the country
is literally falling apart. It it seems Martin. Yes, look, they
have their problems, and it's a learning curve more or less. But what
I would say in Chinese defense is they have looked at the economic model,
and they've seen what made the United States great. It was a consumer market.
They look at Germany. Fine, Germany's the largest economy in Europe,
but the average German has less net worth than an Italian. Why because they're
so afraid of inflation that they kept their taxes so high. And their model
was mercantileism. We build something to sell to somebody else whereas the United States,
it's a consumer based economy. So that's why everybody wanted to sell stuff
here from Japan, toyotas and BMW's, etc. So China is moving in
that direction. They understand the difference and they're trying to create a consumer based
economy there. I mean it's going to take time, all right, not
right now, but not happening. Yeah, but they least understand what Germany
does not. Yeah, that's going to be I mean you're talking about fifteen
to twenty years, but it will replace the United States in that sense.
All right. What's your take on Elon Musk. We were talking about control
of the media, and I don't know his agenda, but he certainly shined
a bright spotlight on government manipulation of social media, of websites, of news
to the point where cases going to the Supreme Court. I don't have any
great confidence in the Supreme Court. Like I always said, if your last
hope is that the Court's going to do the right thing, then you're out
of hope. But we see it. It's coming up here. It's going
to be they're going to be really hard pressed to uphold the government's right and
these businesses right to control information at the behest of the business and at the
behest of the government. What's your take on musk No, Look, I
think he's he has actually served a very important purpose, kind of like get
Edward Snowden in that way that you know, changing the our view of things.
Uh, the government has gone far out of control with you know,
controlling social media and all this stuff. It's largely because they know that this
is imploding on them. They're they're they're getting desperate. As of January first,
an American cannot go to Europe without being preapproved. And what they're going
to do is put in looking at what's your politics. Oh, you protested
against COVID, No, you can't come to Europe. You know, we're
they're moving more and more towards this. You know, you know what they
were calling social credit scores. And this is all what our computer has been
forecasting that we're looking at the collapse of these republican forms of government by twenty
you know, after twenty thirty two, they are just simply desperate at this
stage. You know, it's I see it more or less like Joseph Stalin.
You know, he became so paranoid and it wasn't good enough that he
controlled everybody. He was like, what did you think? What are you
thinking about? Are you a possible enemy? And a friend who grew up
in East Germany and when the wall foul, his father when got a Stasi
file and he so all his friends who are actually riding on them and get
home and they started punching holes in the wall, pulling out microphones. And
to this day and his father refuses to ever talk to anybody other than family.
But I mean, that's what you're looking at. Why put microphones in
people's houses? Oh what are you talking about? Are you a possible threat?
This is where we're going. Well, they don't even have to put
the microphone in anymore. They got this. Oh yeah, now that's very
true. They can track you and then say you're they know everything at this
stage in the game. So this is really very quite serious because you know,
these people are Government is not there for you, they're there for them.
Yep. We have to understand that the biggest problem with government is that
the flaw that our founding fathers put in with the lack of term limits,
because once they are there, they are on that side of the fence,
and then they always look at us as the enemy as simple as that,
you know, our digital ideas, and we got to try, where are
they going or what are they going to do now? If they Yeah,
the best form of government I ever saw in all the studies that I've done
this was the city of Genoa. The head of state, like the president
of the Doge, rotated on an annual basis among the rich families. And
but he was only there for you know, being because he was there for
one year and in that family wouldn't get control again for another twenty five years.
Nobody would pass the law that was detrimental to the people you know on
the street, and was more of a competitive thing of Genera against Florence and
Venice, so everybody benefited. It wasn't this rich versus poor thing, which
was also started by you know, by Mars. I mean, look,
there are people that have different talents. Somebody can be a brain, another
person be a quarterback. You know, what you earn is based upon how
many people in that field are there, right, the value? So going
back to Musk, So besides his influence on Twitter, which I mean,
if he wanted to spend forty four billion to recavoc, I guess it was
money well spent. But what about his other enterprises and the effect you see
AI for instance, which I knew you've been involved in for decades, but
now it's really hitting the mainstream. The electric vehicle, not so much EV's
for EV's sake, but the marriage of the automobile and AI and all this
technology. And then is SpaceX. Basically the guy owns space, he's controlling
space. What what do you make of him? His influence on the economy,
on society, you know, his significance historical when we look back,
Oh, I think it's gonna be important. You know AI, he's been
around. I mean, we were developing that in the early seventies. So
people have to understand that there there's always been this theory that and it really
comes from people that are, I would say, don't believe in God or
something of that nature. They think that our brain is just a supercomputer and
consciousness comes simply by dumping a lot of information into it. So this is
the theory in computing that are you create a neural net to keep putting everything
in it, and someday it just wakes up and says, oh, wow,
look it's me, and I don't like you. You know, that's
very nice. I've I've been don't look, I've even been a keynote speaker
to American Hackers Convention. I don't see that it's ever possibly taking place.
I don't see U a program evolving as to his self consciousness, et cetera.
So I think that that is kind of absurd. AI can certainly outproduce
a human being because it can look at everything. I mean, this chap
you know, yeah, Prograham that they put out that that's not really a
I oh you know you you ask your question and just goes out and search
it. Oh, and comes back, Oh, what's lady got God's Dog's
name? Oh it's you know whatever. It's not making a conscious decision,
it right, and it is learning in a sense that the more people that
they opened it up for free, because the more people that started asking questions,
it was expanding its knowledge base. But it's not making a conscious decision.
Gee, I don't like you because of the tower your hair. It
doesn't do that and it can't reach that kind of level. But AI,
as far as you know, replacing like a judge, I think yes,
it could. Or about mortgage underwriters, yeah, I mean black and white,
Okay, that's it. Did you whereas these people come in with these
theories like Trump, Oh, well, the fourteenth Amendment says insurrection and nobody
in an insurrection can be president. Well, that was written for the Civil
War, and so then you change the definition of all these people going in
to Capitol Hill taking selfies. They were never charged with insurrection, but they
want to charge Trump with insurrection. You know, I mean, it's all
political. It's how you manipulate all this stuff. Going after the head of
Argentina. Oh, he manipulated the market because he told people not to say
pesos. I mean, you know, so therefore he should be a criminal
and charged with the but in prison. I mean, this is absurd.
But this is the problem we have. AI. I think is important.
You know, it will certainly help things going forward and by eliminating a lot
of the nonsense back and forth. But it's not something that's going to suddenly
wake up and say, gee, I'm going to destroy the world, you
know, I'm gonna yeah, yeah, well, you know, it's a
new technology. It's just like a lot of smashing the looms in England because
they thought they would be out of a job, you know, and so
fighting technology doesn't really work. It's here. Certainly there are jobs that are
going to be eliminated by it though, right, oh yeah, of course.
I mean look when trains came, they eliminated you know, the horse
and buggies. You know, cars came. They that was the death knell
to the horse and buggy. You know. It actually was the economist,
the Austrian economist Shompitter, who called it these are waves of creative destruction,
meaning that whatever the technology is previously is destroyed and is replaced by a new
one. So cars replaced the horse and buggy. Okay, this is how
it functioned. He calls it basically the waves of creative destruction, and I
think that's a very good title for it. Just the cycle of life right,
Yeah. I mean it's you go off and then okay, fine,
you create something else. But the difference between AI and a human is AI
doesn't really have an imagination, right. It's the person who says, gee,
you know, if there's nobody here that bakes bread, maybe I should
open up a store and and maybe make it and I can sell things.
That's why communism failed. They eliminated that, so there was no advancement,
and the advanced MANONI comes from from individuals. You know, he's doing a
lot of my research at Princeton University. And I knew this professor that knew
Einstein, and he shocked me one day. He says, you remind me
of Einstein. I said, what said, I'm not brilliant or into physics
and he said, no, no, no, he said the number one
thing that Einstein said is curiosity. And if you're not curious, you don't
discover anything. He says, you're curious about what makes the economy work.
When he explained to me, it's it doesn't matter what the field is.
If there has to be curiosity. If you're not curious, you're not going
to discover anything. Right, That's what Einstein always said. It was his
curiosity that led him down to discover things. Curiosity and desire, desire to
improve your leg your family, whatever, those two things together are really unstoppable
force. I think we're going to leave it at that. Today, Martin,
we covered a lot of territory. Make sure you go over to Armstrong
Economics dot com. Sign up for Martin's newsletter. It's must reading. You
get it regularly. And hey, go over to Financial Survival Network dot com.
And I might be splitting this interview up into two pieces. You'll be
able to get the second half. And Martin really appreciate you coming on.
We will talk to you again. If you've got a question from Martin,
email Katy l at Carrie Lutz dot com. We'll get you an answer.
Martin, we'll talk to you again real soon. Well, thank you for
inviting me. Take care of yourself over there. Thanks for listening to Carrie
Letz's Financial Survival Network. Your solution to today's trying times from the latest go
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