Legendary financial and geopolitical cycle analyst Martin Armstrong is back with a warning to President Trump, who is on record wanting a weaker dollar. Trump might try to force a lower value for the US dollar to help offset the trade deficit. Just this past week, Trump is demanding lower interest rates. Experts say this might also lower the value of the US dollar. Armstrong predicts, “Everything has an international value. If you lower the value of the dollar, then oil in terms of dollars will rise. Look at gold. It’s not making new highs right now because the dollar is going up, but chart it in Canadian dollars or Euros and it’s making new highs. . . . You dramatically lower the dollar and you are going to cause a crash–again. . . . It could be 40% to 50%.”
Armstrong has deep experience in the currency markets. In 1985, Armstrong was called in by the Reagan Administration about cutting the value of the dollar to spark trade. Armstrong warned if you cut the dollar, you will have a big crash within two years. What happened? Two years later, the stock market crashed more than 22% in one day in the infamous 1987 stock market crash. It is still the record for a one-day crash in percentage terms. Armstrong says, “In the end, they said we think foreign exchange had something to do with the crash. That was the best I could get out of them. They are not going to stand up and say, oh gee, we caused it (the crash) by lowering the dollar by 40%.”
Armstrong is going to write President Trump a letter warning him NOT to force the US dollar lower.
How is the war picture shaping up now that Trump, who wants to be a “peacemaker,” is in office? Armstrong says, “You have French President Macron saying he wants to send troops into U*****e. Britain has just now sent 20,000 or 30,000 troops into Romania. They want war. They are basically on the verge of a sovereign debt crisis. So, they have a choice. They default and say, oh sorry, we s*****d up. Or, it’s not us, it’s P***n. We have to go get him. The German government fell the very next day after Trump was elected. You see this going on all over Europe.”
In closing, Armstrong sees gold (and silver) going up from here. The US is still the strongest economy by far, but Armstrong’s computer program “Socrates” sees a global recession no later than 2028. Socrates also sees the possibility of “war as early as April or May of 2025.” Armstrong tells President Trump, “Get out of NATO–ASAP.”
