armstrongeconomics.com / By Martin Armstrong / January 8th, 2013
At our conferences around the world, we have discussed the Cycle of War and how this too has been incredibly accurate demonstrating that what may appear to be random, is really highly ordered chaos. This turns in 2014. To set the record straight, so far there appears to be no WORLD WAR that will begin. This appears to be separatism and civil unrest on the rise (see European Report $350). Nevertheless, there is a risk of international war but this comes from RUSSIA! The problem with Russia is that there is still the old way of thinking empire equals power. Given the chance, Putin would sweep into Europe in a heart beat. The KEY is always economics.
It has always been a debate about the chicken or the egg and who came first. In this case, the barbarian invasions really began at the peak of the Roman Empire where Marcus Aurelius (161-180AD) was fighting on the border with the Germans where he wrote his Meditations. That was the peak of the Roman Empire and the beginning of the decline and fall starts with his death. As the economy turns down, the barbarians began to smell blood. That is when the barbarians were at the gates. It is always the decline of the economy that opens the door for your enemies. How stupid the USA is relying on political foes to buy their dead is beyond brain-dead. Do you go to them and say, “Gee can I borrow a trillion to fund my army to defend against you?” The political risk we have is that Putin is still in the Empire Mindset. Even China has figured out that occupying your neighbor’s hill is not economically beneficial. So our risk of war lies with Russia – not China.That risk is dramatically increased with the Sovereign Debt Crisis for in the midst of that means the inability to fund an army. That is how Rome fell.