Armstrong’s warning deserves more than a headline, so here’s the machinery behind it. The Gulf states borrowed HEAVILY when Covid crushed oil to $6.50 a barrel. Close the Strait and they can’t sell oil. If they can’t sell oil, they default on those loans. And those defaults, in Armstrong’s words, end up in “a banking crisis [that] leads right to London” (6:19, from his later SilverTrade Insider interview).
Update, August 2026: Armstrong sat down with the SilverTrade Insider and expanded this from a warning into a list. “You’ve got three sovereign debt crises on the table. You got Japan, Europe, and the Middle East with the Gulf States” (26:21). And the one he expects to crack first isn’t in the Gulf at all: “If you just look at the numbers, you’d have to say Japan’s going to be the first to go” (26:43).
Sovereign debt is the slowest-moving crisis there is, right up until it isn’t. Peter Schiff makes his own version of that case in the episode below.
THE LAST BULL STANDING: PETER SCHIFF EXPLAINS WHY THE GOLD & SILVER BULL IS STILL ALIVE!
Martin Armstrong warns we are on the precipice of a SOVEREIGN DEBT CRISIS:
