Martin Armstrong – The Liquidity Crisis

The Liquidity Crisis During recent conferences, we have consistently issued warnings regarding our impending shift into a liquidity crisis. This is due to the fact that the capital invested in global bonds often reaches a 10:1 ratio in comparison to equities. Despite frequent assertions that the dollar is on the verge of collapse, many individuals fail to acknowledge the ongoing international crisis. The global debt has now surged to $226 trillion, with federal sovereign debt standing at approximately $60 trillion. The US Treasury market alone amounts to about $24 trillion. The crisis observed in the UK bond market is merely the visible aspect of a much larger issue.

Amidst growing uncertainty and the unsettling decisions of our leaders, who advocate for World War III to combat climate change by targeting Russia (given that 50% of the GDP is derived from energy production), prudent investors are beginning to withdraw from long-term commitments. As a consequence of this Liquidity Crisis, we anticipate an escalation in volatility, painting a grim financial future for bond markets.

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