Interview with GoldSeek Radio:
Head of Armstrong Economics, Martin Armstrong, evaluations charts of the key indexes in real-time, noting “2024 may very well be a chaotic 12 months.”
– Rates of interest rise throughout increase durations.
“Yeah, I believe folks have to grasp that the overwhelming majority of research out there’s all home. They’re simply calling for the Fed and I believe so lots of them are speaking a few main crash in 2024. What they by no means do is look outdoors the nation. And actually, when you have a look at the three indexes have a look at the Dow, the S&P, after which the NASDAQ, you’ll see the Dow main.
And that’s principally exhibiting you that what’s occurring right here is worldwide capital inflows. I imply, the extra it’s getting loopy for wars nearly in every single place. From Asia, you’re wanting on the Center East. You’re taking a look at Europe. Now we have most likely extra institutional shoppers than anyone on the planet they usually’re all beginning to get up somewhat bit and hedging their bets they usually’re shifting cash to the States. That’s why the Dow has been rising, extra so than you see. Now we have most likely extra institutional shoppers than anyone on the planet they usually’re all beginning to get up somewhat.
… however then once more you’ve gotten folks simply wanting on the Fed and speaking about ‘Oh, transparency.’ And is that they solely ever maintain speaking about previous protection, going to ‘Decrease charges, decrease charges, decrease charges.’
When you actually have a look at it, objectively, rates of interest at all times rise throughout increase durations, they usually decline throughout recessions and depressions. We’re taking a look at elevated inflation, most likely into 2028 attributable to shortages and warfare. However you’re taking a look at a declining financial progress, in order that finally ends up being extra just like the Seventies…and also you’re wanting there at what we name “Stagflation” the place the inflation fee will likely be larger than financial progress.
– Elevated inflation may erupt on account of provide shortages and skirmishes.
– Stagflation just like the 70’s may quickly come to the home economic system.
“That was principally attributable to OPEC elevating the worth of oil dramatically and that created a cost-push inflation. So everyone’s prices had been rising dramatically. Something that needed to do with plastic, went up dramatically and that created ultimately the inflationary increase between 1976 going into 1980. As for gold rose to $875, and so on…I believe gold was a few $100 in 1976 and it rose to about $400 however that was by December 1979, the final six weeks of the rally, which peaked in 1980 on January twenty first. So from December to January twenty first, that’s when Russia invaded Afghanistan. So it was the geopolitical stuff that took gold from $400 to $875. So it’s necessary to grasp inflation shouldn’t be the key driving energy however inflation when warfare is round – that’s what broke Bretton Woods…it was the Vietnam Conflict.”
– Funds could also be flowing into the blue-chip Dow Jones 30 shares from world unrest.
– Geopolitical opinion and commentary.
