Loading ...By Greg Hunter’s USAWatchdog.com (Saturday Night Post)
Legendary financial and geopolitical cycle analyst Martin Armstrong warned in May “Iran Bombs UAE to Trigger Financial Meltdown.” Then, about two weeks ago, there was a Memorandum of Understanding (MOU) between the US and Iran, and everyone thought the war and the crisis was on its way to being over. Oil fell below $70 a barrel, and it looked like everything was going to be worked out with a 60-day ceasefire. Now, it looks like everything could fall apart with attacks from Iran, counter-attacks from the US and the back and forth continues. Can the MOU that has dropped the price of oil survive this? Martin Armstrong says, “Iran is not stupid. What is happening is when we had Covid, oil went down to $6.50 (per barrel). It was below production costs. The governments borrowed extensively to stay alive. All that debt is still there. So, the sovereign debt crisis may start in the Middle East. People are completely blindsided because they think that in the Middle East, they are just flush with money–Not True. Now, they are like everybody else with debt up to their chin. Iran is intelligent. They are not Venezuela. They are attacking the Gulf State refineries and the whole Strait of Hormuz. They know that’s not impacting the United States. The US is basically self-sufficient. It impacts Asia, and it impacts Europe, but what else does it do? It prevents the Gulf States from selling oil. If they cannot sell oil, they default on their loans. If they default on their loans, you get a banking crisis, which goes straight to London. This is much more complicated than people think. Trump understands this is much bigger than just Hormuz and the price of oil.”