Gold’s Correction Is Running Out of Time
Martin Armstrong told MINING that France’s bond turmoil is not a European political panic. Bond markets are neutral. They give the real story. You cannot beat the drums of war and expect long term rates to fall. Rates rise in wars. Inflation does too. Vietnam shattered Bretton Woods. The problem in Europe is more serious than many people realize, and a number of countries have begun to see that the European Union has failed.
“Bond markets are neutral markets. Well, she gives us the real story here. You can’t have Europe beating the drums of war, Russia, Russia, Russia, and expect long term interest rates to fall.”
The sovereign debt crisis, he said, is here. Even Bessent finally came out and said he could not control the bond markets. Governments borrow every year with no intention of ever repaying. It is a Ponzi scheme. They borrow to make the previous payment.
Default arrives when the queue stops at the door and they do not buy the debt. Capital is moving to America, but it is going to the private sector, not the public sector. In 1929 the private sector was in trouble, so money went to government. It is not always the same. Both sides reach extremes and collapse. The political system is what changes as we head toward 2032.
“What they are doing today is simply borrowing more to pay back. It’s more like a Ponzi scheme.”
His computer shows things heating up from December. Gold fell into October because perceived geopolitical risk receded and the metal said it was fine. The risk is that civil unrest and geopolitical tensions rise again. Ukraine, Zelensky, and Netanyahu are both out of control. Trump asked Zelensky not to attack Russian oil refineries because it would raise diesel prices. Zelensky said he did not care. The tensions have not subsided. It is an initial dip. From the first quarter of next year it rises, capital accelerates into the private sector, and gold starts to rise again.
On the chart, $4,000 is the line. A weekly close below it puts gold in the $3,500 to $3,700 range. Time is also running out for that window. Once the geopolitical risks are realized, gold takes off with a bang. High interest rates are not killing the metal.
The better opportunity, he was asked, may be silver. Diesel is the problem investors should watch.
This is the same map he laid out on the SilverTrade Insider a few weeks ago.
Socrates called the brutal six month correction before it happened.
The real move, in that conversation, starts around the first quarter of 2027 and runs into roughly 2032, with a monetary reset behind it and the European Union possibly breaking apart by 2029. Three sovereign debt crises were already on the table. Gold and silver are the hedge against government.
The full SilverTrade Insider interview is here: https://silvertrade.com/news/precious-metals/gold-news/teotwawki-martin-armstrongs-famous-computer-model-is-forecasting-ww3-a-global-monetary-reset/.
TEOTWAWKI? Martin Armstrong’s Famous Computer Model Is Forecasting WW3 & A Global Monetary Reset!
The MINING hour is the update. France is the warning. The correction is running out of time.
A break under $4,000 can still reach $3,500. Then the bang.
