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Speaker 2: Ever, And welcome you are watching and listening to the
Financial Survival Network. I'm your host, Carrie Letz. Today. It's
January thirtieth, twenty twenty six. Big day. I couldn't have
planned it better. Martin Armstrong is on with us now.
It's been kind of a momentous day and a momentous
month in the metals markets for sure. I mean, as
we're talking, gold is down five hundred five dollars the
ounce silver is down thirty two dollars the oun ounce. Martin,
you were like calling for Monday for an inflection point
for gold. You were off by twenty four hours. But
I guess it's better than most of these other analysts
who are off by years and decades.
Speaker 3: Right. Well, it's you can you know, it's like holding
your hand up in the air. We're gonna do that,
but keep it there eventually gets it feels so heavy
it's got to come down, you know. And the biggest
problem with the metals, which is very interesting this time,
most of the rally has been astley short covering rather
than you know, people running out no I got just
got to buy it sort of thing. So you don't
have the real tremendous speculative type bubble in demand bubble.
And I've spoken to many people in the industry, refiners,
et cetera. And what's going on is that a lot
of people have that did have silver or dumping it
at these kind of prices to the point that the
refiners are no longer you know, even accepting it or
offering any money in advance.
Speaker 2: They're puking silver.
Speaker 3: Yeah, it's that comes back to the you know, to
the small dealers. They you know, they can't buy it
because they can't sell it. They don't have the capital
to keep going. So you know, whatever they buy today,
they're typically selling it off to the wholesalers the next day.
And if they're not paying it's taken two to three
months to get it, then they stop buying. This is
really what's going on, and so you get an inflection
point at this stage. But our computer is clearly showing
this is not, you know, the end of the bull market.
This is not a major long term high like nineteen
eighty something along those lines. This is this is still
a perfect storm in the sense that we have shortages
in metals, lack of refining capacity, we have sovereign debt
crisis going on around the world, and then you got war.
So when you have this sort of a perfect storm,
you know, it still looks as though fine, you get
an inflection point, you pull back short term, and then
it's gonna you know, take off again. We may even
see a temporary low by next week and then it
bounce back again. It's mainly people who have been shorting
expecting it, you know, like sixty two decline and all
this stuff, and that it's going to stay down there.
We're just not dealing with the same thing that we
were dealing with years ago.
Speaker 2: Yeah, the physical shortage, the actual deficit in silver. And
then we have expanding industrial uses in everything. I don't
have to repeat them, but cars, you name it, cars, cruise, missiles,
and solar panels and all the electronics. They all need silver.
There's no substitute, and we haven't been producing enough because
prices have been too low, and it's all byproduct product mining.
So when we talked a couple of times ago, you
said goldwood hit five thousand and then ten thousand really quick,
because when it breaks a number like five thousand, then
there's not much resistance ahead. So you called this your
article was yesterday saying that Monday was probably that point,
and it turned out to be Friday. But ten thousand
gold is still on the horizon, isn't it.
Speaker 3: Yeah, I mean, this is not longer term roaming. By
the time we get into twenty thirty two, I would
expect like silver at least like you around one sixty five,
you know, and the same thing with gold.
Speaker 2: I mean.
Speaker 3: A lot of the unfortunately, a lot of the gold
bugs have constantly misrepresented what gold has gone up for.
I mean, I was there in the nineteen eighties, and
you know, gold went from about four hundred to eight
seventy five in the last six weeks, and that's when
Russia invaded Afghanistan. It's geopolitical, it's not You don't get
that doubling effect in six weeks because of inflation. You know,
that's just nonsense. It's more of a geopolitical thing. It's
the same thing, you know, like with bricks. He took
Russia out of Swift. That was then a warning sign
to everybody else if we you know, if they don't
do want the Biden administration ordered them to do, they
could be removed. And you even have Lincoln even threatened China.
You know, don't support Russia in this Ukraine war. We
might do the same to you. Really, you know, the
problem I have with these people is that they and
all honestly, they're complete idiots because all they look at
is what's in front of their nose. Oh, I got
to beat Russia, so let's do this. Okay, what are
the implications of what you're doing? All right, It's like
the Vietnam War. Okay, you've got Robert McNamara before he died.
It's on YouTube and he wrote a book. Sorry, we
were wrong, Okay we thought Russia was involved. Well, not
only did fifty eight thousand Americans die because they were wrong,
but it broke Brenton Woods. It's the whole gold standard.
I mean, you know, I think a three year old
would a pocket calculator could have figured it was going
to crash. You can't fix the price of gold at
thirty five dollars but then continue to print dollars for
whatever you want to wage wars. Then you had Johnson
in the Great you know, society and socialism amounted is
being created with no understanding that how do you do
that and still maintain a thirty five hour fixed rate.
It's that's what I mean. It's just to me, it's
it's very frustrating because you would think somebody would common
sense would figure out, you can't fix the currency and
at the same time print as much as you want.
Speaker 2: Yeah, but we're still we're still doing the same thing, right,
I mean, look at these deficits.
Speaker 3: But there it's at least not fixed. If it was fixed,
I mean, we wouldn't be able to last this fall.
But you know, and you know, then you get these
people to say, oh, it's good it's fiat because it's
not backed were you They don't understand what a currency is.
The backing of it is the wealth of the nation.
It's the productivity of the people. And I mean both
China and Japan rose from the ashes after World War
Two for productivity, not gold. They both became the largest
in their respective regions. All right, if the backing of
a currency with you know, commodities is supposed to be
the real value, then Russia should be number one, right,
they got more commodities than anybody. Then you had the
dour going up after Brenton Woods collapse, and so the
again the gold bug inflation. This were wrong. They thought
the dollar would collapse. So then they came up with
the petro dour theory. Oh it's now the dollar is
backed by oil. Okay, well then why is not the
SORTI real number one currency each you know, and oil
is not you know, it's it's less than ten percent
of world trade. So where is that the backing of
the dour? You know, well you have to understand. You know,
you can go on eBay and buy bonds. China issued
bonds and British pounds before World War One. Everybody went
to Britain to sell their bonds because that was the
financial capital. That's where money was. You needed money, you
went there to borrow. After World War two, New York
became that away. So all these emerging markets they issue
debt and dours so they can sell it. This was
the problem in China. China should have been more authoritarian.
They told their provinces and people do not borrow in dollars.
They all did. The dollar went up and they all
lost a ton of money. You know. They were just oh, gee,
yes I can, I can save money on interest rates.
I can save two percent if I go in dours. Okay.
Then the dollar goes up twenty percent and I think
you lost your shirt, you know. So it's it's more
than all that. It's the strength and support of the
dour is the economy itself. Japan's got to sell its
toyotas to Americans, Germany's got to sell it as BMWs to Americans.
Speaker 2: So we're the.
Speaker 3: Largest consumer based economy and they're all selling their stuff here.
Speaker 2: And they have no choice. Right, they have to sell
here or they lose a huge part of their market.
Speaker 3: Look, that was the whole idea behind the Euro. This
is why Germany. Cole took Germany into the Euro. It
didn't allow the people to vote. Under this theory that
with a single currency for Europe, they could export more cars,
et cetera to the rest of Europe and eliminate the
foreign exchange risk. Is that the Deutsche mark went up
by twenty percent, then the price of a car to
an Italian went up twenty percent and they couldn't sell it.
So I mean it's I mean, I mean I saw that.
Back in eighty five. I was living in London. I
bought a Ferrari.
Speaker 2: Three h eight.
Speaker 3: It was like it was a sixty some thousand dollars
car in the United States at the time, and in
British pounds, the pound went down the par so I
got forty some forty two thousand, whatever it was. But
then the pound went back to two dollars. Ferrari couldn't
afford to sell cars at forty some thousand, so they
raised the price in pounds. But then the pound doubles,
and then everybody saw Ferraris were suddenly doubling price, so
they the idiots. They then these saw people buying ferraris,
could have thought the Ferrari was the investment. It was
just currency. Yeah, you know, I'm Me's somebody in Toronto.
We had like forty ferraris and he thought this was
a fantastic investment, you know, as it wasn't the Ferrari
that went up. I'm sorry, it was all crazy.
Speaker 2: I love it. I love it. So at the World
Economic Conference, and any of you out there, I highly
recommend that you go to the next one because it's
just you can't get information in that group of people
that are there. You'll never find these people any other place.
But you talked about the panic twenty twenty six being
panic cycle year. It looks like it's living up to that,
and we're getting closer and closer. If I remember correctly, March,
March May, April May, it was kind of where it peaks.
Speaker 3: Yeah, it's a panic cycle is typically something that takes
out both directions perspective. You just succeeded yesterday's high and
you turn around and you crashed for the afternoon, you
take out the low. That's what we call panic cycle.
So we had this on warm starting here in twenty six,
as well as the euro and so you have the
euro rising, expected it to rise first and then turn
around and go down. The prospect of war developing it
is quite high. I mean, as you know, I was.
I was shocked to be called in to even ask
to write a the peace plan for Russia, and I
took my assistant Hannah. I at first it was like
I was being invited in for a briefing. I said
you want to brief Neil on what's going on in Russia.
I mean, all right, I'll show up. And then she
had to leave the room. I said, oh, so this
is the real national security stuff NOUSE, you know. And
so I was asked to write this piece plan and
then they said we want you to use your back channels.
I said, you want me to do that and they
said yes, So I did. I got it on Booten's desk.
Took me four days to write the thing, and like
a college prepared for a college exam, you're working fifteen
hours a day. And like two days later, Lavrov came
out and said, we are willing to guarantee we're not
interested invading NATO. And at that meeting I was told,
we agree with you. We will not be in war
with Russia. It will be China. And so then I think,
basically it got obvious why I was called in, because
I think the neo khans that had been filtrated the
Trump administration were blocking everything all the time. At that meeting,
I mean, you know me, I just say whatever it
is that, yeah, what the computer says. I don't really
give a ship what they have to say. I said, look,
we should get the hell out of NATO. They're going
to create a false flag to invoke Article five to
try and drag US in to fund their war. And
I was surprised. The response was, yes, we know you're correct. Wow,
I said, but yeah, wow. Then you had Rubio stand
up swearing we're still in with NATO, We'll be there
for NATO. I published I gotta basically a thank you
letter from uh Trump. I was kind of surprised being
called in, and I even asked, I said, is this sanctioned?
Because I'm wondering if I'm being called in by some
side group or something, you know, And I said, no,
this is sanctioned. You were proved to be called I said, oh, right, fine.
So now I did get a thank you letter from
from Trump, which I put on the blog. But the
I don't know what's out in the press right now.
That should be out maybe today or by tomorrow or
something like that. But now now I've heard that Trump
is going to shut down over two hundred uh NATO installations. Wow,
and people, so you know, check the press. That might
be coming out, you know, very soon. So it's hard
for me to say I've dealt with Europe and I've
dealt with the US, and so i've i've again. I
think part of the reason I was cold in as
good as I was there called in initially for designing
the euro from scratch. Uh so I know all the
ins and outs and how it wasn't formed correctly. And
and that's the debt problem that they have. We saw
it initially in twenty ten when Greece got in trouble,
right when you know, I'm not an academic, I'm a trader.
After that, what happened immediately, all the guys they made
a lot of money short and Greece great, Who's next, Oh, Spain? Okay,
and then you go off all right, this is the
problem with Europe because they did not consolidate the debt.
Each country still has its own debt, and each country
prints euros. They have little codes on the notes to
say which central bank as it come from. The structural
flaw here is you've had UK and France both admit
their finance ministers admit they could be pushed to the
point of eating an IMF bailout. That's what Greece was
in twenty ten. Okay, So let's say for argument, and
the traders are going are watching France meticulously. If it
just smells like they might be in trouble, they're going
to start shorting. So then what are you short You're
going to look to see which banks hold the most
French debt. That's how we worked with Greece. So then
because they didn't consolidate this, it turns into a contagion.
It effects Okay, who's next? Okay, Oh, Italy. I've been
in discussions now they know what I've said for decades
and what I've heard rather than reforming, rather than actually
correcting the problem, all right, is that if Southern Europe
got in trouble again, it would Greece, Spain, they would
jettison them, regroup the Europe to the Northern States. I mean,
these are our politicians in academics. They're not traders, right,
what's the trader going to do? Start shorting this shit
out of flaff looks weak? I mean, it's this is
what they don't get. And that's my concern for Europe.
And this is why they need war where they have
to have an external enemy, because otherwise the people, if
they're going to lose their pension funds and thinks of
this nature they're going to be storming the parliaments with pitchforks. Right.
You know, it's like Biden when he put it on
the sanctions and gasoline went up. What did he say?
Always Putin's inflation? But what you know, it's this is
pretty standard. Uh. For it doesn't matter what government you're
looking at, left, right, center, whatever. Uh, they will always
blame an external anime.
Speaker 2: Yeah, it's true.
Speaker 3: So you go to Europe and they're all all Putin's evil.
Putin wants to take your all this nonsense. You look
at the press. I just read the Telegraph. I have
no respect for any of them. All putinent dating unprovoked?
Really okay? Uh. The day before Zelenski he stood up
and said they were going to rewn with nuclear weapons,
all right, And the Washington Post found out he knew
when Russia was going to cross the border. And there's
an interview you can look it up. And they asked them,
why did you not warn your people? His response, if
I told them we were going to be invaded, it
would it cost me seven billion dollars?
Speaker 2: Well, I mean, these.
Speaker 3: People are not interested in their countries, they're not interested
in humanity. Trump has I believe that is now out
in the pressed my peace plan, I said, just honor
the Mints agreement and the war.
Speaker 2: Trumps has simple.
Speaker 3: Just said to Zolenski he must surrender the Donbas in
order for us to give him the guarantees. And that
was the men's agreement. Yeah, eleon which are Russians okay?
To simply vote, do you want to be part of
Ukraine or separate? Check with Slovakia split along ethnic lines,
Check Republic Slovakia, Yugoslavia broke up ethnic lines, Croatia, Erbia, Montenegro.
This whole region has been occupied by Ottomans. I mean
so many times that you have many different ethnic groups
as are out there, and they hate each other, you
know what I mean. It's just well, you know, inviting
Hamas to set up to you as your next door neighbor.
I mean it's in Israel. I mean, they just hate
each other.
Speaker 2: Yeah, there's certain things.
Speaker 3: You're not going to overcome, you know, and Iran in Israel,
I mean, it's religious, it's my god against your God. Yeah,
all right, this is not okay. I'll give you, you know,
a boardwalk for a park place. You know, Uh, this
is much beyond that. The type of negotiation. This is
ethnic hatreds that maybe it can be calmed down for
a while, but they're always going to be there. Yeah,
to employees in and we have conference and in Greece,
and the one from Kiev refused to fly back the
fastest way because the plane simply stopped in Moscow. Yeah,
it's you're just changing plans. Nope, we'll not go there
for those Russians. I mean it's this is what you're
doing with the Atrich is systemic and you're not going
to you know, Ukraine from the very beginning. You can
search our blog. I said Ukraine should be split along
ethnic lines like Yugoslavia and Czechoslovakia. It's the only way
to peace. And how many millions of people have died
for what We're at the same place Trump says, give
up the dumb boss if you want to guarantees, you know,
and there's just certain things you can't do. I mean,
it's just you know, this is where we're at.
Speaker 2: All right. Well, on that note, I got one favorite
for you for part two of our video here if
you could just pull up Socrates and tell us what
you told us earlier, but just illustrated on the arrays
for gold and silver coming up in the March area.
That would be great.
Speaker 1: Financial survival network. It's all about what's next.
Speaker 2: This is part two.
Speaker 3: Let's see look at that.
Speaker 2: That's quite a chart.
Speaker 3: Yeah, that's yeah, there was a chart on the gold. See,
we have a major turning find twenty seven and I
think that's gonna be linked in to war. And then
your your biggest one is off in twenty thirty two
with the pack cycle of that, right, But looking at
this on a monthly level, here we had January which
probably at best maybe you know, you got a minor
turning point coming in February. The biggest one is going
to be in March. Then you got April, May, June,
on June, July. Abviously the summer looks like more like war.
When you start correlating it with the rest of the world,
it doesn't look very good. But if I don't see
a like after nineteen eighty we had a nineteen year
bear market, I don't see that the monetary system is
probably going to crack. And by that I mean that.
Speaker 2: Europe.
Speaker 3: There's so much discontent within Europe itself, they have a
high risk of civil unrest. Disagree in France from all
the migrants that they've allowed in. And the problem with
that is that they didn't come to share the and
to assimilate. They came and say no, this is you
see sections of Sweden and they said no, share a lawyer.
You know you can't do that. That's almost like a conquest.
I'm going to conquer this country and you're going to
it's going to be mine. You're not going there to
share something. As when they were designing the euro I
told them they didn't understand the dollar, I said, and
what made the door at work? I said? It was discrimination?
They oh, how could you say that? I said, because
it was fair. Whoever was the last off the boat?
All right? What is the group that was discriminated against
until they learned to speak English to get a job,
and then they assimilated. And then you ask an American today,
would are you go, oh, I'm half German, half Irish
or Italian or whatever. Then everybody in you're married once
you had the same language. That's what you don't see
in Europe. Yeah, there's some exceptions, but do you really
see somebody from Scotland going down and marrying somebody from Sicily?
You know, they don't speak the same language, the cultures different.
This is what keeps Europe divided. And that's why I
warned them about creating the or you're trying to forcibly
create the United States and it doesn't work that way.
All right. There was no you know, central decree. You know,
you must be English or whatever. I mean if I'm
going to hire something the answer the phones, you know,
they got to speak English. They can't say ka pasa,
you know. Sure, And a lot of people have difficulty
now with you know, tech support for somebody's companies because
they come from India and they don't understand the accent.
Speaker 2: I've had it. I've had that myself, so we won.
Speaker 3: So excuse me what you're saying.
Speaker 2: So Gold Silver, we're looking at new highs in March.
Speaker 3: You could it depends how much of a pullback we get,
but I would say if you get a low by March,
the fact that that is the major target, you're going
to see a rally from THEAR one out probably into
twenty seven.
Speaker 2: Wow, that's pretty amazing. All right. Well, I've already pressed
you for too much information here, I'm already but look,
I had to This is like We've been putting off
our call for like weeks now, but it worked out
perfectly because you just wrote the article yesterday for your
blog which I saw, which said that Monday would be
the turning point. You were one trading day late. But
I didn't see that from anybody else, and even myself
I didn't. I thought it was possible, but I didn't
think it was really going to happen right at this moment.
But there it was, right smack dab and now, so
this is a fake breakdown then effectively right head fake,
and the.
Speaker 3: Rally was also kind of fake because most short covering.
Speaker 2: And I think they pushed it. I pushed it higher
just so they could break it down faster. Now, that's
my perception of what happened here.
Speaker 3: A lot of professionals have lost their shirts on this one.
Not me.
Speaker 2: I'm not a professional, though I don't profess to be one,
but I'm still sitting pretty.
Speaker 3: Well, I know. I think what happens is that they
think they're in the middle of it and they know
everything that's going on, and they don't, you know, because
it's it's your own actions that make some of this stuff.
I know one major player that lost a ton of
money on sober shortening it too early. Wow, But you
know this is what makes markets, you know. It's so
we have to understand. This rally has been different than most.
And that's why I would say that there aren't too
many people around that. Actually, I mean I was there
for nineteen eighty. I traded its whole damn thing.
Speaker 2: I remember it. But I wasn't as little too young
to be trading. I was only thirteen. But it really
set me down the path of watching gold and really
becoming an observer of the market. But in silver there
is actually a physical shortage, isn't there undeniably?
Speaker 3: Yeah, I mean you had trying to restrict the selling.
As of January first, they were representing about sixty percent
of the physical market. Now you have Trump ving to
create a silver pool for strategic purposes of two point
five billion. So I do you know, the commuter's just
not showing, you know, a major bear market. And so yeah,
we go back and slidate take off again. It's it's
not over yet. And so as they say this fat
lady saying.
Speaker 2: Joh yeah, and the and the fat ladies on vacation.
One thing I just want to mention about Vietnam. I
visited Hoachi Minh's city recently, and when you talk about
the war, there all of the armaments that we left,
just like Afghanistan, and there's a museum there, the War
Remnants Museum, and anybody goes there. I highly recommend it.
But it's like seeing an American arsenal that we just
left there, like phantom jets, F fives, tanks, huiye helicopters,
and Chinook's and I mean it's just all there and
their presentation. They have no ill will towards the United States.
That's the amazing part. Party most of them want to
come and live here.
Speaker 3: Yeah, it's uh. Look, I visited Hiroshima and it was
very interesting. I had people coming up apologizing to me
that America had to, you know, drop bombs.
Speaker 2: Uh figure, you know, I've.
Speaker 3: Been in It was in Tokyo when the Golf War.
Because of the constitution that Japan wasn't allowed to have
troops more than two hundred miles offshore. Right, they were
sending money, but so many other people didn't understand it,
and they were criticizing the Japanese. Oh they'll send money,
but they won't send their boys. You know. So the
politicians were and getting together and making emotion to change
the constitution so they could send troops offshore. And I
was in Tokyo. I'm telling you there was at least
a million people in protests, and I spoke to some
and their view was if they changed the constitution, the
military would seize power again, and they were afraid they
would take them back to war.
Speaker 2: Doesn't seem real, right, pre but smart to distrust the
military industrial complex. And while we're at it, I just
want to mention a new book coming out. It's called
America's Great Parking Scam. You've been robbed and I can't
get it to go clearly on the camera.
Speaker 3: There we go.
Speaker 2: I have to cover up my face. But it's how
you recognize these extractive, exploitative systems and what you can
do about it. Coming out soon. Marty appreciate you coming on.
Of course, Armstrong Economics highly highly recommend that you subscribe
to Socrates. I'm a subscriber. Sometimes I have to use
AI to figure out exactly what Marty is saying, but
it's almost always right. So obviously he's tapped into something
that the rest of us have only dreamed of and
if you got any questions or comments, Klatcarrie LUTs dot com,
just drop me a line, all right, Marty, Thanks, oh
thank you.
Speaker 3: Take care of yourself.
Speaker 1: Thanks for listening to Carrie Letz's Financial Survival Network, your
solution to today's trying times. For the latest, go to
Financial Survivalnetwork dot com. Financial Survival Network
Speaker 2: Now more than ever,