Huge News From Russia & Central Banks! If You Own Gold & Silver, Watch This Now - Martin Armstrong

Martin Armstrong explains that central banks are buying gold because the Biden administration has turned the dollar into a geopolitical weapon. Countries like China, Russia, India, and Turkey are reducing their exposure to US debt and acquiring gold as an independent asset, outside the dollar system. This is not about a gold-backed currency but about survival and distrust in a politically weaponized dollar.

The dollar's reserve status is primarily due to the US consumer-based economy. However, the removal of Russia from the Swift system triggered other countries to realize their vulnerability if they do not comply with US policies. China and Russia resent using their 'enemy's currency' and are actively divesting from US debt. This geopolitical tension is driving countries to seek independent financial alternatives, with gold being a key asset. Armstrong predicts gold could reach $2,700 and potentially $3,000, with September looking chaotic.

Armstrong highlights that governments throughout history rarely pay off their debts, often resorting to restructuring, default, inflation, or war as a political reset. He cites Andrew Jackson's single instance of paying off US debt and offers various historical examples of countries defaulting. Investors are already reacting to this instability by moving wealth into real assets like real estate and gold, seeking safety outside the traditional banking system. This trend mirrors central bank gold purchases, aiming for neutrality rather than profit.

Armstrong argues that centralized governments and one-size-fits-all policies inevitably fail because they cannot accommodate diverse cultures and economies. He predicted the EU's potential collapse, attributing its structural unsustainability to the failure to consolidate national debts when the euro was created, thus shifting currency volatility to bond markets. He warns of similar internal divisions and fragmentation within the United States, citing cultural and political differences (e.g., abortion laws, migration from 'blue states') as potential catalysts for breaking into distinct regions.

The world is entering a period of political instability due to the failures of centralized governance. Gold's rise is a reaction to a loss of trust in institutions, not just inflation. Investors and central banks are seeking safety in real assets as the global system becomes increasingly unstable. Armstrong emphasizes that gold's direction is driven by geopolitics, debt concerns, and a declining confidence in government promises.