Martin Armstrong insight relating to monetary tightening was put forward in his latest interview.
“Going into 1929 they were raising interest rates and they were saying that it’s bullish. It proves that people are still borrowing,” he said.
“During the Great Depression, they started lowering interest rates from 6% to 1%, and it didn’t matter,” he added.
Martin Armstrong noted that the stock markets never peak with the same level of interest rates twice due to investor expectations.
“If you think stocks will double in 3 months you will pay 20% interest. But if you think stocks won’t go up 1% you will not borrow 1%,” he added
“Every type of inflation wave is different.”


“During the Great Depression, they started lowering interest rates from 6% to 1%, and it didn’t matter”
MARTIN ARMSTRONG
Martin Armstrong’s insight into rate hikes during the current inflation is that hikes will make inflation worse since it is based on shortages and not speculative boom
In early 1929 markets kept going higher despite interest rate hikes because European capital was flooding into America.
Shortages due to the moronic lockdowns collapsed the supply chains so rate hikes will add to the problem, he noted.
“I was getting emails from farmers who had to kill 30,000 chickens because there were no truckers who could take them to markets.
Another farmer buried a field of potatoes, he couldn’t get them to market.
“You end up with shortages. A lot of farmers and small businesses lost a lot of money,” he said.
“Policy makers are like a horse in central park with the blinders on. All they see is what is in front of their nose,” he said.
Martin Armstrong insight into negative-yielding European debt is eye-opening
Europe implemented negative interest rate policy in 2014, then passed a law forcing pension funds to buy bonds.
“So now we are in 2022, and they are just starting to raise interest rates, yet these pension funds have been wiped out,” he said.
EU sovereign bonds need an 8% yield to break even. The only willing buyer of these bonds is the ECB.

“I was getting emails from farmers who had to kill 30,000 chickens because there were no truckers who could take them to markets”
MARTIN ARMSTRONG
Martin Armstrong insight into energy policy provoked a strong reaction from the famous contrarian trader
He noted that when energy costs increase, and people live a hand-to-mouth existence, you end up with a revolution which spreads to developed countries.
“In forty years of dealing with governments, I have never seen a crop of leaders that are complete idiots that we have today,” he said.
“They know they will default, which will wipe out all the pension funds”
– Martin Armstrong
Martin Armstrong then criticized the EU as being an autocratic system of government
He noted an EU member of parliament has no power to overrule the European commission, appointed by other heads and doesn’t stand for elections.
“It is the same autocratic system that is in Russia. Suddenly, Europe is different from Russia,” he said.
Martin Armstrong insight is that a debt bubble implosion leading to default will happen.
“They know they will default, which will wipe out all the pension funds,” he said.
He sees the elimination of all debt and UBI CBDC coming.