The World According to Martin Armstrong - Martin Armstrong #5565

Summary: We’re seeing oil price shocks, commodity booms and busts, and various factors that are threatening to de-throne the US dollar. Why is this happening, and what does this mean for the global economy? I have Martin Armstrong on the show to discuss this, and he explains the various changes that have occurred—such as sanctions in Russia and countries opting to not borrow in dollars—that put the dollar at risk. Not only is the dollar in danger in these conditions—this shift in currency use greatly affects the world economy. Tune in for more information. Highlights: -The dollar has been the one currency that anyone can write a bond in -So many emerging markets issue debt in dollars so that they can sell to American investors without the foreign exchange risk -The dollar has had less restrictions globally, which has made it the reserve currency -The sanctions imposed upon Russia are devastating to the global economy, and have ultimately split it in half -The world economy has functioned by the free movement of capital, but these sanctions have essentially sent off a warning to the entire world related to getting assets confiscated -When sanctions are put on individuals, the situation worsens -The dollar has been weaponized effectively -This issue will probably become more serious after 2024 -This is not worth destroying the entire world economy over -Russia seems to have been provoked into this war -We’re going to have high energy prices in Europe and Asia no matter what happens -2023 is going to be a massive turning point; it looks as though it can’t possibly get any better, and it’s probably going to cascade into chaos -A lot of the real estate has been European buying -As the dollar goes up, Japan and China are selling their bonds -We’re in a complex situation; there isn’t just one factor that is contributing to the economic turmoil -Chinese real estate is the largest asset class in the world, and it appears to be imploding -China warned banks years ago not to borrow in dollars Useful Links: Financial Survival Network Armstrong Economics