by Martin Armstrong
QUESTION: What do you make of the US debt downgrade? Do you think this has anything to do with indicting Trump in three courts? I know many people decided to donate to Trump today, even for the first time, as a sign of disapproval of the Biden Administration and the RINOs.
HJ
ANSWER:
It is time for the Credit Rating Agencies to knock off the BS. Yes, Fitch Ratings downgraded US long-term debt late on Tuesday from AAA to AA+, citing this spring’s debt ceiling standoff as a significant reason. That is nonsense. NO government ever intends to pay off its debts. Historically they ALWAYS default. The global financial system has relied on the promise that the US government will always repay its debts. Some wrongly believe that this is what makes the US dollar the most widely held currency worldwide. The backing behind the dollar is twofold.
- Largest Consumer-based economy in the world that everyone needs to sell into
- The deepest financial market in the world to park money as well as finance projects and float stocks
This is why the US markets barely reacted to the news in after-hours trading on Tuesday, and US Treasuries were holding steady. Of course, you have the traditional bearish prognosticators who claim the last time there was a downgrade, and the market crashed by 6.5%. The real question is – sell stocks, and the traditional flight to quality is you buy bonds – which were just downgraded. Hm? Many are starting to wake up that the only safe place for wealth will be in tangible assets, for this Biden Administration is completely desperate and out of control. You cannot threaten China and Russia with war and then ask them to buy your debt. China is disinvesting in US government debt ASAP. That is also the reason for the downgrade.
These indictments against Trump, while Biden and Hunter actually could be charged with Treason, have undermined the confidence in the United States government internationally more than anything. They are trying to prevent Trump from running in 2024, for the Neocons know they would be fired if not put on trial for treason themselves. Trump vowed to run for office from prison. RFK should join as the VP and abandon the Democrats, for they will NEVER allow him to gain a toe in their Washington club.
Yes, I have gotten many emails saying people are donating to Trump’s 2024 campaign as a matter of protest against this Biden Administration. All I can hope is that even Democrats wake up before it is too late and stop this hate-Trump nonsense, for what lurks in Washington is so much worse. This judge in Washington will put Trump in prison in the blink of an eye. This judge has been handing out time in excess of the prosecutor’s recommendations. That is unheard of. You are about to witness the complete collapse of the Rule of Law in the United States, and once that goes – it is time to turn out the lights.
The US will eventually descend into civil war at worst, just as China and Russia did when faced with the rise of the LEFT. Some states will separate from this absolutely corrupt government. We cannot rule out the Biden Administration canceling the dollar before the 2024 election, for the Neocons do not care about the economy – only their geopolitical goals. With the Neocons in such a desperate position, they may not wait for the election and connect a dollar cancelation to some geopolitical event. The EU would most likely do the same on a coordinated basis, and both Canada and the UK will follow suit with Japan, Australia, and South Korea.
If the Neocons manufacture a geopolitical conflict before the election, beware of the 2nd quarter next year. That does NOT mean we should lose all hope. You cannot create a new system without purging the old one. Keep your finger crossed, for post-2032, we get to start anew just as the Founding Fathers overthrew the monarchy and created a new political system.
