Martin Armstrong is forecasting kaos.

When it is bad, things can only get better, not so reckons Martin Armstrong, the legendary geopolitical cycle analyst. 

“2023 Will Be Year From Hell,” said Martin Armstrong.

Armstrong believes the recent plunge in the stock market last week triggered by illiquidity in the two trillion pound sterling UK gilt market, which almost brought global markets to their knees, is all because of “extreme uncertainty.” 

Indeed, as noted previously, the financial system is too highly leveraged to cope with serious tightening.

A modest 50 basis point hike by the Bank of England in September was enough to blow up the UK’s more than two trillion dollars sovereign market, which would have led to global contagion had the BoE not pivoted.    

“2023 Will Be Year From Hell”

Martin Armstrong

But “It’s not over,” Martin Armstrong is forecasting Kaos

 In Europe, it is not just syphilis running rampant it is also inflation combined with a sharp economic slowdown.  

“Europe is in big financial trouble,” said  Martin Armstrong.

Regretfully, the continent is facing the worst-case scenario. A complete shutoff of Europe’s main source of energy supply from Russia has been guaranteed with the terror act on Russia’s main pipeline to Europe.

The possibility of doing a deal with Russia, buying Gas under the table, and paying in Rubles is now off the table. Italy was importing more Russian oil in June despite the sanctions. 

 Moreover, if mother nature hands bad cards, a freezing winter, the possibility of brokering a no-arms peace deal for the Russian gas has also been taken off the table.

Europe’s energy security has been redrawn, forcibly with violence, and terror. If Europe wants gas it has to pay with USD delivered across the Atlantic Sea or the Norway-Polish pipeline under the dollar-centric system. Keeping Germany and Russia divided has been US foreign policy for the last century. 

“Europe is in big financial trouble”

RAY DALIO

Ships sunk in the Atlantic Sea could be part of Martin Armstrong’s forecasting Kaos thesis

Since the Russian invasion of Ukraine, the US and its allies have declared war on Russia.

Since February, the US has shipped 13 billion dollars of weapons to Ukraine, and a Russian flagship was sunk. 

The lifeblood of the Russian economy, its energy infrastructure has been blown up.

“If Russia invades, that means tanks and troops crossing the border of Ukraine again, then there will be no longer a Nord Stream 2,” said US President Biden.

“The crisis in banking will start in Europe”
Martin Armstrong

So what if the theatre of war moves to the Atlantic Sea and Russia responds in kind to US flagships in the Atlantic carrying highly flammable liquid gas to Europe? 

The risk of insuring merchant ships in the Atlantic is now higher. Insurance shipping rates across the Atlantic will rise due to the war in Europe. Assuming no ships are attacked in the Atlantic, higher insurance rates will increase the cost of goods and services.

So the recent attack on Russia’s pipeline could lead to further higher prices and shortages. 

Europe is where Martin Armstrong is forecasting Kaos starting

“The crisis in banking will start in Europe…The debt is collapsing. They have no way to sustain themselves,” he said.