I’ve been following Martin Armstrong recently for his financial and geopolitical analysis. You won’t find his positions reflected in the media anywhere in the world. However, pretty much everyone who knows how the capital plumbing really works across global financial networks knows full well how where Martin sits. His knowledge is precise beyond measure. He can be hyperbolic at times so fair warning if you’ve never heard of him. He’s well worth a listen, though. He’ll expand your mind for sure.
Armstrong goes to Washington
Anyway, in October 2025, Martin was called in by the Trump White House for a briefing on Russia. They wanted him to use his backchannel resources and experience and develop a peace proposal that Putin would accept. Note that the request was not to satisfy the Europeans or the Ukrainians. Trump’s goal is Putin exclusively at this point. That’s important. So, Martin spent four days writing a 200-page report called “US & Russia: Reestablishing Peace.” I read the report. It’s a nice backgrounder. It fills in many interesting details to support the interviews Martin has given where he’s talking about Russia, Ukraine, Europe, and the United States.
After the initial White House meeting, however, he said he was disappointed and he’s expressed this view emphatically on multiple podcasts recently. Martin is prolific online so you can check any of them recorded after the White House meeting. What concerns him most is that Trump appears to be listening to the wrong people — specifically the Neocons and Europeans who he says are the greatest adversaries of the United States.
For example, Trump’s recent sanctions on Russia’s two largest oil companies (Rosneft and Lukoil) represent what Russian officials have called “an act of war.” And Martin agrees. He says that throughout history, economic sanctions have been recognized as acts of war. Britain counterfeited American currency during the Revolutionary War. Hitler counterfeited British pounds. Napoleon did the same. These actions undermined enemy economies to achieve military victory.
Europe: The Real Adversary
Martin is always clear: “Our greatest adversary is NOT Russia, but NATO and the European Union.” Europe is collapsing economically — Germany has shrunk for two consecutive years, bankruptcies in Europe are rising faster than since 2008, and both the United Kingdom and France have warned they may need IMF bailouts. Yet desperate European leaders believe they can conquer Russia and access its $75 trillion in natural resources, which would allow Europe to “rise again like the Roman Empire.” Well, that’s quite an ambitious goal, eh?
Macron in France apparently thinks Russia is weak enough to defeat. British Defense Secretary John Healey is preparing multinational forces for Ukraine and emphasizes deterrence and confrontation rather than peace. Europe needs an enemy for distraction from impending economic failures, Martin says strongly.
Also, the Neocons in the United States driving this agenda appear to have personal vendettas. Madeleine Albright, Victoria Nuland, and Merrick Garland all claim their families were persecuted by Russians. This isn’t geopolitical strategy. Instead, it’s personal hatred dressed up as foreign policy. And what about NATO? Well, Martin says that NATO lost its purpose when the Soviet Union collapsed, so it needs to present Putin as the next Khrushchev to maintain funding, power, and its reason for existence.
Trump’s Mistake
What bothers Martin is that Trump appears to be listening to these Neocons rather than pursuing the peace framework that makes the most strategic and economic sense. Martin’s Socrates computer model, which accurately predicted the 1987 stock market crash, the 1998 Russian default, and many other global events over nearly 50 years, targets 2026 as a Panic Cycle for war. The model shows zero chance for peace as long as Trump refuses to deal with warmongering Neocons and the inevitable economic collapse of the European Union.
The Peace Framework Armstrong Proposed
Martin’s peace proposal focuses on economic integration and not confrontation. Russia would end the Ukrainian war in exchange for honoring the original Minsk Agreement and allow Donbas self-determination through voting. The United States and Europe would lift sanctions in stages. Russia would commit to independent oversight, offer contracts for rare earths and critical metals, create special economic zones with investment guarantees, and pledge reforms including anti-corruption measures and transparency.
Putin has actually proposed cooperation in trade, technology, space, and Arctic development. He even suggested at the Trump-Putin summit in Alaska an $8 billion tunnel connecting Russia and the United States through the Bering Strait. These proposals reflect Putin’s understanding that free trade creates stronger peace incentives than continued confrontation. Joint ventures would remove the never-ending propaganda narrative that Russia intends to invade Europe and create real deterrents to war through economic interdependence. Trump generally supports the view of economic cooperation over warfare, but there are too many others in the administration pushing back.
Why Sanctions Always Fail
Martin emphasizes that sanctions have never worked historically. Cuba’s sanctions were imposed in 1960 and remain in place decades after Castro’s death, never achieving regime change. The same applies to Iran. Western think tanks and NGOs continue forecasting Russian economic collapse, but unemployment in Russia has declined for 26 years during Putin’s administration.
The Stark Reality
If Putin is forced to capitulate through economic and potential military destruction, Martin predicts this would trigger a coup by Russian hardliners, just like the coups that removed Khrushchev and Gorbachev. This would replace moderate Russian leadership with aggressive nationalism and make genuine peace impossible. The current situation mirrors post-WWI reparations on Germany that led to Hitler’s rise.
Martin’s message to Trump is stark. If you think you can destroy the Russian economy and force Putin to his knees, understand the reality of geopolitics. If someone comes into your house with a gun wanting to kill you, you shoot back. Russia views sanctions as preparation for destruction. Putin will push the button rather than watch Russia collapse. Martin’s been saying this for years, but I doubt the Russians would seriously start a nuclear war. There are simply too many other military alternatives, all of which are seriously destructive.
Nevertheless, the escalation begins now, Martin says, with the worst period coming in the first quarter of 2026. Trump must stop listening to Neocons and European warmongers before it’s too late. The only path to peace is economic integration, not the destruction they continually pursue. Martin’s computer model has proven him right many times in the past and he argues that this time the stakes are much higher — World War III.
Martin made his peace proposal freely available to the public on October 23, 2025, for anyone to freely distribute. In mid-November, Trump’s team called Martin back for a second meeting and told him that his proposals remain under consideration. Whether the administration will ultimately adopt his framework over the objections of the Neocons and Europeans remains to be seen. It also remains to be seen if Martin’s proposal had any influence in Trump’s latest peace plan to end the war.
Martin Armstrong has spent decades tracking patterns that most analysts miss. His approach reveals an obvious problem in that the world operates on quantum mechanics principles whereas decision makers rely on linear models. “The average person just looks at classical physics,” Armstrong says. “The difference is in classical physics they reduce everything to a single cause and effect: this happened because of this. Whereas in quantum mechanics, it’s a complexity, not a single cause and effect. Everything’s interconnected.”
Armstrong stumbled on his now-famous 8.6-year cycle while researching financial panics dating back to 1683. What began as economic modeling evolved into something more profound: a system that predicts not just market crashes but wars, revolutions, and the collapse of civilizations. When he broke down the cycle, it revealed itself as 3,145 days. “It was like oh, that’s pi,” Armstrong says. The pattern proved fractal, appearing throughout nature and history.
“The vast majority of analysis out there is linear, which comes from the classic physics side. And it’s always wrong,” Armstrong says. He uses climate change predictions as an example: “Went up one degree this year, so it’s going to do that forever, and we’re all going to die in 50 years. There’s a cycle to everything. Nothing goes up forever.”
Europe’s Economic Death Spiral
The pattern emerges with brutal clarity when you look at Europe’s current predicament. Germany, which represents 25% of the EU’s GDP, has suffered devastating economic contraction through a triple blow: COVID lockdowns, aggressive climate policies, and sanctions against Russia. Armstrong estimates that the German economy has actually shrunk by a minimum of 3%, possibly up to 5%. “By that I mean not a recession. I’m talking about the number of possible jobs has declined.”
“The EU is doomed. It cannot recover,” Armstrong says. “They’re still running around with the climate change nonsense. And this is why they need war with Russia, because no matter what government you look at, when they’re in trouble, they need an external enemy.”
Armstrong says that Biden’s response to rising gasoline prices as a perfect example. After imposing sanctions on Russia that drove up fuel costs, Biden blamed “Putin’s inflation, not his.” Canadian Prime Minister Trudeau ran against Trump rather than focusing on domestic issues. “You need an external enemy when you have nothing else to offer.”
The fundamental problem traces back to the EU’s flawed structure. “Whenever you create a centralized government, they will always exercise everything in their own possible power,” Armstrong says. He points to Russia’s history as a cautionary tale. Lenin originally proposed that each Soviet republic retain its sovereignty, even writing a letter warning against letting Stalin succeed him. “It’s widely assumed in Russia that Stalin may have even poisoned Lenin.” Once Stalin seized power, he grabbed everything for Moscow. “Once it grabs that power, it’s not going to give it back.”
Europe is following the same trajectory. The AfD in Germany faced calls for banning, then blanket accusations of Nazism. Now it stands as the number one party in the country. Populations across Europe are rejecting centralized control, but Brussels refuses to give up power.
The Mercantile Model’s Fatal Flaw
Germany’s economic approach reveals another critical failure. “Germany has followed the mercantile model,” Armstrong says. “We build stuff, we sell it to you, we get rich.” The problem is that wealth never reaches the people. Germans face the highest tax rates in Europe. “If you can Google it, you’ll see the net worth of an average German is less than that of an Italian.”
Armstrong contrasts this with the American model that China now attempts to emulate. “China has looked at both models. It’s trying to copy the United States. It’s trying to create a consumer-based economy.” The numbers tell a stark story. “The capitalization of the New York Stock Exchange, just one exchange, is worth more than all of Europe combined.” When Home Depot launched its IPO, it was worth more than all the IPOs of Europe combined. Those valuations are difficult to image especially if you are consume CNN all day every day.
Europe’s hostility to capitalism hamstrings its own economy. Armstrong says that during World War I, European governments shut down all stock markets, and this impulse toward central control continues today. “This is the push for the digital currency in Europe. They go to a digital currency and that’s it. You can’t get it out.” Spain recently announced that citizens cannot withdraw more than $3,000 in cash without government permission, Armstrong says.
“This is freedom? Oh, Putin’s a dictator. It’s beginning to look the other way around. Everything that they accuse Putin of, they are doing. Denying free speech. It’s becoming much more like a socialistic communist state and it’s not sustainable.”
The Debt Trap and NATO’s Survival Instinct
The numbers paint a grim picture. Britain spends over 3.5% of GDP on interest payments alone. Now NATO demands an additional 5% for military spending. “What are we talking about here? We’re talking about at least 10% of GDP is now going for something that totally has nothing to do with improving the economy.”
NATO itself operates as a self-perpetuating bureaucracy searching for justification. “NATO’s sole purpose is war,” Armstrong states flatly. “I’ve seen the internal memo stuff. When all the money was going to climate change, they were afraid that they’re losing money. That’s their salaries for doing nothing. That’s their pensions for doing nothing. So what do they do? They have to keep saying, ‘Oh, Putin wants to invade Europe.’” But what does Europe have that Russia wants? No one asks that question when everyone knows from history that countries invade each other to acquire natural resources. What’s Europe’s natural resource valuation?
Armstrong finds this narrative absurd. “Putin’s been there since 1999. Why hasn’t he? Because there’s nothing there. Europe has tried to invade Russia three times.”
The Linear Thinking That Drives War
The neoconservative approach particularly troubles Armstrong because it exemplifies dangerous and limited linear thinking. Their strategy reduces complex geopolitical situations to simple formulas: remove this leader, impose these sanctions, achieve that goal. “Does anybody ask, okay, if you’re successful, what comes next? They never ask that question.”
Armstrong met neocon and warmonger Bill Kristol in the 1990s. “He told me if we take out Saddam Hussein, Assad out of Syria and Gaddafi, will bring peace to the Middle East. I said you’re out of your mind.” The problem stems from how borders were drawn after World War I. “We drew the borders carving up the Ottoman Empire. We didn’t do it ethnically or religiously.”
Iraq cost $3 trillion directly, but when factoring in ongoing interest payments, the true cost will exceed $10 trillion by the 2030s. “There’s no intention of ever paying off any debt,” Armstrong says. Afghanistan consumed 20 years. Vietnam had no stated goal. “There is never an objective.”
Armstrong traces the debt burden even further back. “We’re still paying interest on World War I. They never pay anything off.” The national debts of Europe and the United States don’t fund domestic programs or help citizens. “It goes to interest to keep the debt rolling and to war projects constantly.” The wars are always for them. Never for us.
How Markets Predict War
Armstrong’s computer model tracks capital flows, revealing that someone always knows before conflict erupts and this is never revealed on the evening news. “When I put all this together, I basically correlated it. And what comes out of it is very interesting. War does not take place when everybody’s fat and happy. Turn the economy down and that’s when you get war.”
Before the Hamas attack in October, defense stocks began rising a week earlier. Before Lebanon’s civil war in the 1970s, his computer model detected the instability eight days out by tracking massive currency movements. “By 1998, I had understood that somebody always knows.”
The London Financial Times published Armstrong’s 1998 forecast that Russia would collapse within 30 days. Then Russia collapsed right on schedule, triggering a long-term capital management crisis. “That’s when the CIA came in and said, ‘All right, fine. We’ve been monitoring you guys for quite some time.’ And they wanted me to go down and build the model for them.” Armstrong refused to sell his system or reveal the source code, beginning what he calls his “nightmare with government” where he spent years in prison.
“When you look at the markets they are objective. They’re not emotional and they show you what’s happening,” Armstrong says. “And I can tell you our computer warns that Europe will lose. It’s too much in a weak state economically.”
The Resource War Hidden in Plain Sight
Behind the propaganda about democracy and never ending rhetoric about external threats, Armstrong identifies the real motivation for targeting Russia. “Russia is the richest country in the world from natural resources. Even Maggie Thatcher said they’ve got everything from platinum, gold, oil, timber.” Estimates place Russia’s natural resources at $75 trillion, which is double the entire US national debt! Some analysts point out, however, that the US also has massive natural resources, but they are not monetized at present. But Europe? That remains unclear given current EU policy.
“There are some of these people, just like the crazy ones in Israel, thinking that this can be the Armageddon and we get the second coming,” Armstrong says. “In Europe you have the same kind of delusional ideas and it’s like if we can conquer Russia then we’ll have the 75 trillion, the US will be back to this vassal state, and we will rise again like the Roman Empire.” Perhaps that’s why they hate Trump so much? Time will tell.
China built a railway directly into Iran and now receives 80% of Iran’s oil. Sanctions that were supposed to collapse the Iranian economy instead drove it into deeper partnership with China and Russia. “They think they put on these sanctions, it will hurt the people, which is their objective. The people then rise up and overthrow their government. Hasn’t worked once.” How many sanction packages have the Europeans implemented since the start of the Russia-Ukraine war? I think it’s up to 18 at this point. The result? A much stronger Russia and a much weaker EU.
The Proxy War Strategy
Armstrong pulls no punches about NATO’s approach to Ukraine. Boris Johnson made the front pages of Norwegian newspapers by stating bluntly “that Britain is at war with Russia. This is a proxy war with Russia.” Multiple neocons in the US have said similar statements.
The Ukrainian conflict itself emerged from Western intervention. “We created the whole Ukrainian war. Victoria Nuland was over there handing out sandwiches in Maidan. You had John McCain on the stage over there. ‘We’re behind you. Overthrow your government. America’s behind you.’” Armstrong asks people to imagine the reverse scenario: “Can you imagine if Lavrov from Russia stood on the steps of the capital building in US, ‘Overthrow your government. We’re with you.’?”
When Ukraine nearly reached a peace agreement, Boris Johnson personally intervened. “There was a peace deal in Ukraine. He hops on a plane, goes over there, and this made the front page of the press in Ukraine. ‘No, you’re not allowed to sign a peace deal. We want war.’ The death toll was basically 130,000 at that point. It’s now over a million.” Yet the propaganda continues daily.
Armstrong’s assessment is brutal: “Do they care if any Ukrainian is still standing at the end of the day? No, they don’t.”
US Senator Lindsey Graham inadvertently revealed the strategy on tape: “This is the best money we ever spent to kill Russians.”
The False Flag Playbook
Armstrong says that governments routinely lie to justify wars, often creating incidents designed to manipulate public opinion. “Usually what they do is they create a false flag. That’s very, very common.”
The Lusitania provides a textbook case. The United States claimed neutrality while insisting the passenger liner carried no military cargo. “Germany said they are using passengers as a shield to get arms to Europe. US said no way are we doing that.” When divers discovered the wreck in 1987, “suddenly the government says well be careful, the hull was full of ammunition.”
Project Northwoods revealed how far governments will go. Declassified documents showed the US Joint Chiefs of Staff “actually proposing to kill Americans, blame it on Cuba” to justify invasion. “Kennedy said no and didn’t want to go into Vietnam. So they took him out.”
Hitler used the Reichstag fire to consolidate power. The Gulf of Tonkin incident that launched full American involvement in Vietnam never happened as reported and that was documented in detail in congressional testimony . “We were never attacked. Even Johnson had said for all he knew they were shooting at whales that night.”
Iraq demonstrated the pattern’s continuation into modern times. “Weapons of mass destruction never took place.” The entire justification for invasion rested on claims later proven false. “There isn’t a single war that has taken place that they haven’t lied about.” Remember, wars are for them, not us. We just have to fight them, that’s all.
Armstrong quotes Churchill’s famous observation: “The truth is so precious in war, it needs a bodyguard of lies to protect it.” Recently, the Iranian press reported contacting the United States with a warning about Israeli intentions. “They assumed that they had information that Israel would create a false flag attack to do with America to blame Iran to get us fully engaged there and they said it’s not us and we’re telling you in advance of what they’re trying to do.”
“This is standard,” Armstrong says. “I don’t care what side you’re talking about, left, right, whatever, they all do it.”
The Coming Fracture
Armstrong’s model predicts political fragmentation for both Europe and America. “The computer shows the US will break up just as Europe will because it’s not sustainable.” He notes the vast differences between American regions. “I live in Florida and it’s like Florida is a completely different country from California.”
The root cause traces to debt accumulated through warfare. “The vast majority of it is nothing but the accumulation of war debts, period. It does not benefit us. Then they have to keep raising taxes. ‘Oh, let’s tax the rich.’ For what? We’re doing this because you went to war. No country has ever benefited from a prolonged war.” Yet modern governments ignore this ancient and practical truth and instead pursue never ending conflicts that drain treasuries and populations.
Maybe the most instructive example comes from King Croesus of Lydia, among the wealthiest monarchs of the ancient world. “He went to the oracle at Delphi to ask advice about waging war against Cyrus the Great from Persia.” The oracle famously predicted that “a great empire will be destroyed.” Croesus naturally assumed this meant his enemy would fall. “The empire that was destroyed was his.”
The oracle’s ambiguous prophecy captures something essential about warfare’s uncertainty. Linear thinking assumed a straightforward interpretation and outcome. Complex reality delivered the opposite result. And analysts cited endlessly in the media miss it every time.
Armstrong’s final assessment carries the weight of decades spent watching governments repeat identical mistakes. “You’re going to be manipulated. You’re going to be listening to the press and they just get paid to put out the standard BS.” Understanding the cycles doesn’t stop them but allows individuals to prepare and respond accordingly. The 8.6-year cycle continues whether acknowledged or not. Wars emerge from economic decline whether populations understand the mechanism or not. False flags will be created because they always are. They work every time and these cycles will continue.
Empires will fall. The question is whether people will recognize the patterns before or after suffering through them again.
In two wide-ranging podcast conversations, financial analyst Tom Luongo and precious metals trader Vince Lanci map out a massive shift in how global markets work. Their discussions move way beyond the trivialities of daily price action. Instead, they’re looking at structural changes that upend everything we’ve assumed about money, power, and trade. Just listening to a few minutes of these guys going at it and you realize that we’ve already moved into a different world. Nothing they talk about ends up on the news. That’s how you know.
The picture Luongo and Lanci paint can be unsettling for those who just follow surface level headlines from talking heads in the media and independent analysts who know nothing. The comfortable postwar financial order in the West that governed the world for decades is breaking down. In its place, a murkier and more fractionalized system is emerging. For example, gold and silver matter more than most people realize, as this podcast reviews. And the battle lines have already been drawn, even if most observers haven’t noticed yet because they are stuck arguing old narratives.
One wonders what it’ll take for people to wake up.
Lanci gets straight to the point when discussing what’s happening in commodity markets. “The right price is the exchange that has the most volume,” he explains. For decades, that’s been the COMEX in New York and, for gold specifically, the London Bullion Market Association (LBMA). But something has now fundamental shifted.
China opened the Shanghai Futures Exchange with physical settlement only. The gold that arrives there stays there. And increasingly, that’s where the real action is. Over the past several years, the pricing arbitrage between Shanghai and the COMEX has grown wider and more persistent—something that rarely happened before.
“Over the last say six months or eight months with Trump,” Lanci notes, “with the tariff thing, the vaults are being built, the network vaults are being built, the internationalization of the yuan.” What he’s describing is a wholesale repositioning of where gold actually sits and where trading happens. This isn’t accidental. China and Russia have been quietly executing a de-dollarization strategies for years—moving away from dependency on Western financial systems and building parallel structures.
Luongo connects this to a larger geopolitical shift. He suggests the Trump administration finally woke up to what’s been happening. For years, China and India quietly bought precious metals while the West wasn’t paying attention. But now the strategy has become explicit. “The US finally woke up and started paying attention to these facts,” Luongo says. “China has been taking our copper and silver scrap out of the US for the last ten years under the radar.”
But Trump’s election changed the calculus. Between his victory and his January inauguration, Luongo believes China and India accelerated their positioning. They knew tariffs were coming. They knew the geopolitical relationship with America was about to shift dramatically. So they moved faster. “Trump’s going to be in office. He did tariffs last time, he might do it this time. Let’s start to dedollarize a little faster,” Luongo suggests was China’s calculation.
What’s notable is that Treasury Secretary Scott Bessent appears to understand this game. Bessent has a front-row seat to how financial systems actually work. He traded with George Soros. He knows how currencies get manipulated, how gold markets work, where the bodies are buried in the global financial system. “Bessent understands these things because he’s had a front row seat to how to manipulate currency, bond, gold and silver markets,” Luongo explains. When Trump brought Bessent in over other candidates, it signaled that serious financial restructuring was planned.
The response has been calculated and multifaceted. The U.S. is finally protecting its metals the way other countries protect theirs. It’s just doing it quietly. JP Morgan, for instance, recently became the sole custodian for the GLD and SLV ETFs—the largest gold and silver funds in the world. “We’re doing the same thing they’re doing,” Lanci explains. “We’re just wrapping it in different paper.”
But here’s what makes this significant: GLD and SLV operate fundamentally differently than the Shanghai Exchange. You can trade these funds all day long and get settled in dollars. But you cannot take physical delivery. The only people who can access the underlying metal are authorized bullion banks and government primary dealers. It’s the inverse of Shanghai’s model—a trading vehicle for price discovery with no physical exit for retail investors.
“This is the money shot,” Lanci says. “Folks understand that the end of globalization is happening. And it’s far more than just chips, solar panels, oil. This is the fundamentals of the global monetary system are changing.”
Understanding Backwardation and Market Structure
To understand what’s truly happening, you need to grasp a concept that confuses some investors: backwardation. Lanci is careful to define it precisely because “people are throwing it around like it’s something that you can just use like a term of art.”
Here’s the basic idea: In a normal commodity market, a futures contract that expires thirty days from now costs more than the spot price (the price to buy it right now). This is called contango. The price difference reflects carrying costs—storage, insurance, the interest you pay to finance holding the commodity.
Backwardation is the opposite. The spot price trades higher than the futures price. You’re paying a premium to get the commodity now rather than waiting for delivery later. This signals scarcity or urgent demand. Someone needs it right now, not in the future. They’re willing to pay extra for immediate access.
In normal markets, futures contracts trade at a premium to spot prices. This premium reflects the cost of carrying the commodity forward—essentially the interest you pay to hold it. Gold should trade this way because gold doesn’t decay or get consumed. “The difference between the price of gold now and the price of gold a year from now is interest rates only,” Lanci explains.
This is exactly what’s happening in silver. “Silver is trading forty cents over spot,” he says. And more strikingly, this isn’t just a near-term phenomenon. The entire silver curve is backwardated out months. December futures, which should be cheaper than front-month contracts, are actually more expensive when you account for the full term structure.
“So silver’s trading $48 in spot. It should be roughly, let’s call it every month should add $0.20 to it. Okay, so $48 in spot means $48.20, $48.60, $48.80 for the December futures. That’s a $0.60 spread,” Lanci explains. “Not only is silver backwardated from spot to futures, it’s backward dating from spot to 90-day futures.”
This matters enormously because it exposes a structural shortage. The difference between gold and silver is that gold isn’t consumed. All the gold ever mined still exists somewhere. Silver, by contrast, is industrially critical. It’s used in solar panels, electronics, batteries. When you use it in a phone and that phone ends up in a landfill, retrieving that silver is expensive and complicated.
“Silver production has been in deficit for the last x amount of years and that deficit is still there,” Lanci notes. The supply isn’t coming from new mining—it’s coming from above-ground stocks and, increasingly, scrap. But here’s the problem: there’s a shortage of accessible scrap at current prices.
How China Is Reshaping the Silver Market
China isn’t waiting around hoping prices will rise to encourage recycling or new production. Instead, they’re going directly to the source. Lanci has been tracking this closely, and what he’s found is interesting.
“China is importing silver before it’s refined. They’re going down the supply chain,” he explains. “They’re importing raw silver ore, and they’re doing the refining now.” This is a major shift. Historically, mining companies handled refining themselves. But China is bypassing that entirely, importing ore directly from producers in Latin America—particularly Mexico—and handling the processing in-house.
The evidence of this appears in Mexican lease rates. When lease rates go negative, it signals that silver is scarce enough that people are literally paying to lend it out. This happened in Mexico recently. “The lease rates in Mexican silver go negative when there’s less silver available,” Lanci says. Mexican producers would normally lease out their silver for a fee and get paid to lend their metal. But when China shows up ready to buy the metal directly at current spot prices, producers sell rather than lease.
This creates a particular problem for base metal producers and refiners. Because silver isn’t a primary product for most mining operations—it’s a byproduct of copper, zinc, and nickel mining—the availability of silver is tied to the production of these other metals. When base metal miners need to finance operations or hedge future production, they typically sell silver futures to raise capital or lock in prices.
“If you pull up certain bank reports, they will throw the silver in with the base metals. They won’t even put it in the precious metal side,” Lanci notes. This classification matters because it means the banks managing silver positions think about it in commodity terms, not monetary terms. They’re focused on near-term supply and demand rather than long-term value storage.
The COMEX will likely continue functioning, but its role will shift. Gold can move off futures markets because it doesn’t get industrially consumed—you don’t need price discovery mechanisms for something that just sits in vaults. But silver is different. “You cannot run a modern supply chain for base commodities that matter in second, third, fourth, and fifth order goods if you don’t have a working future,” Lanci insists. The COMEX will survive as a price discovery mechanism for industrial metals, even if the physical silver passing through its vaults decreases. The metal flows through but doesn’t accumulate.
The Dollar Splits in Two: Recapitalizing America
One of the most provocative ideas to emerge from the these conversations between Luongo and Lanci is the notion of a bifurcated dollar. The offshore dollar and the onshore dollar are becoming separate currencies with different values and different rules. And the ultimate goal, Luongo argues, for the Trump Administration is to recapitalize the American middle class. And that scares the globalists to death because they’ve been draining it for decades.
As usual, Luongo is especially blunt about what needs to change: “We want the FED to stop being the fucking Bank of England! We need to get back to something closer to the original conception of the FED.” For decades, the Federal Reserve has operated as an offshore financial tool, managing the global dollar system and supporting Wall Street rather than Main Street. That era is ending.
The strategy is deceptively simple. Make capital cheap onshore and expensive offshore. “The United States seeks to keep liquidity deep in the US, which will mean a weaker dollar,” Luongo explains. “That’s all very inflationary, I know that, but that’s what we’re talking about here.” A weaker dollar at home means cheaper borrowing costs for American businesses and consumers. It means small companies can borrow to expand. It means families can buy homes. It means capital stays in America rather than fleeing to offshore havens.
Meanwhile, an expensive offshore dollar restricts capital flight and forces foreign actors to either invest in American assets or pay premium rates. This two-tier system rewards those who play ball with America and punishes those who don’t.
Luongo lays out the mechanics clearly. “We want a dollar to be strong for trade purposes, not for parking lot purposes,” he says. The problem has been that anyone could park money in dollars cheaply, making the currency artificially strong for decades. This hurts American manufacturing and competitiveness. It’s why so much manufacturing left the United States—you couldn’t compete when the dollar was overvalued due to it being the world’s parking lot.
The solution he believes being implemented is a market access charge. Think of it like ATM fees. If you want access to American markets and the dollar, there’s a price. “So you say you can no longer convert your euros into dollars free of charge,” Luongo describes. “There’s a contract with us if you want free access to our nightclub beyond the velvet ropes, you have to be a member. And to be a member you have to cut a trade deal and you have to invest money in foreign direct investment, and we’re going to give you carte blanche dollars in dollars out.”
The effect of this strategy could be substantial. “By draining the world of the silver and gold and then collateralizing it some way for domestic purposes,” Luongo suggests, “that’s your path to a lower cost of capital dollars for US domestics and US corporates versus anybody who needs to borrow dollars who still short them and they’re going to borrow them at higher rates.”
The mechanics work through what Luongo calls a “market access charge,” similar to how the federal government might charge differently for domestic versus foreign access to resources. Countries that cut deals with the United States—like Saudi Arabia’s recent $600 billion investment—get favorable dollar access. Others don’t.
Tariffs serve a similar function. “The tariffs are the lever by which to turn that crank,” Luongo explains, “to keep that arbitrage, that wall up.” The goal is to make importing into the U.S. expensive enough that companies either accept higher prices or set up production domestically. Either way, dollars stay domestic rather than flowing out to pay for imports.
But there’s another piece: the shift away from the euro-dollar system toward SOFR (Secured Overnight Financing Rate). Both Luongo and Lanci view this as foundational. The euro-dollar market—offshore dollar lending outside Fed control—has been a mechanism for financial manipulation for decades. It allowed London and EU branches of one New York bank to create essentially unlimited dollar credit without direct Fed oversight via LIBOR (London Inter-bank Offered Rate).
“The two most evil markets in the world in 2022 where the euro dollar futures market and the gold futures market,” Lanci says bluntly. But the euro-dollar futures market is dying. “The volume on the euro dollars contract dropped off like a rock as SOFR became the law of the land,” he notes. The Fed has essentially killed it by making SOFR the official reference rate. SOFR is transparent, secured, Fed-controlled, and domestic.
This isn’t just about interest rates or financial mechanics. It’s about who controls the flow of money around the world and who sets the rules. These questions haven’t been seriously contested since the postwar order took shape. Now they are.
The Buffett Precedent: Why Silver Futures Matter
To understand why a functioning silver futures market is critical, Lanci takes us back to 1997. Warren Buffett bought a massive position in silver and demanded physical delivery. This caused a crisis.
Silver producers had been selling futures contracts they didn’t yet have physical metal to deliver. When Buffett took delivery, the market faced a genuine shortage. Producers would have been wiped out. But because there was a functioning futures market with proper hedging mechanics, the problem could be solved.
Here’s the key thing that happened: the front-month contract (for immediate delivery) spiked from $4.50 to $7.47. But the back contracts—silver for delivery months later—barely moved. “The backs didn’t move,” Lanci recalls. This pattern reveals something crucial about how markets work.
In a normal market like gold, where the metal isn’t consumed and just sits in vaults, the entire futures curve moves together. If spot gold is $4,500, then next month’s gold might be $4,510, and the month after that $4,520. A steady upward slope across all delivery months.
But silver is different. When Buffett suddenly demanded immediate delivery, only the front month exploded in price. The market was screaming: “We need silver right now and we don’t have it.” But the back months stayed calm because that silver wasn’t needed for months. Producers could eventually mine it. So those later contracts had no urgency.
Here’s what happened next: the exchange reported to Buffett that producers would go bankrupt if he took delivery. So Buffett made them an offer. He took delivery of the entire position but then loaned it back to the producers for one year. The interest rate for this loan was determined by market prices—about forty percent per annum. Buffett got forty percent returns in cash, plus he got the silver delivered to him one year later.
“Had there not been a functioning silver market, we would not have been able to satisfy Warren Buffett,” Lanci emphasizes. “The spot market would have gone to infinity. There would have been no way to measure what it’s worth a year from now. There would have been no functioning free market.”
This is why both guys insist the COMEX must survive as a price discovery mechanism, even if most physical silver never sits in vaults there. You cannot manage future production and supply without futures contracts. You cannot secure resources for the future. You cannot guarantee that next year’s phones will have silver in them.
“If you don’t have a way to price future production, and this is key in a capitalist society, then you have no way to secure future resources,” Lanci states flatly.
The Goldman Sachs Hedging Game
Goldman Sachs provides a practical example of how banks use precious metals strategically. Lanci has been watching their behavior closely for years, and he’s noticed something important.
When Goldman gets bullish on gold, they buy gold but simultaneously short silver—an equal dollar amount of each. “You buy a million dollars in gold, you sell a million dollars in silver, and so how much money you tying up? Nothing. You’re doing a metals cash trade. You’re doing a carry trade,” he explains.
The reasoning is that gold is a precious metal—a pure monetary play. Silver is a hybrid. It has monetary value but also industrial uses. If Goldman wants pure exposure to precious metals strength, they use gold. If they want to hedge that exposure, they use silver shorts.
This pattern worked for twenty years. Every time Goldman recommended gold, silver lagged in the resulting rally. Every time they recommended copper, silver lagged again. “They recommend copper, watch silver lag. They recommend gold, watch silver lag,” Lanci says. “For the last twenty years, I have known that, and I’ve watched it, and I’ve said, okay, they recommend copper, watch silver lag in the rally, and it lacks.”
But about a year ago, something shifted. Goldman stopped the hedging game. They started getting bullish on copper without shorting silver to finance the position. Banks more broadly stopped claiming that silver tarnishes and shouldn’t be bought by central banks. The tone changed completely.
“Now, about a year and a half ago, silver started to percolate, and there was a report that came out from a bank,” Lanci recalls. The bank claimed silver should never catch up to gold because “silver’s not being bought by central banks” and “silver tarnishes.” Then, remarkably, they never said anything negative about silver again.
Why? Because the dynamics shifted. When macro-discretionary funds realized all metals were entering a new bull market, they adjusted their positions. Funds that had been long gold and short silver—a common positioning—covered their silver shorts and sold half their gold. Now they’re betting on silver outperforming in the next leg higher.
Central Banks Know Something We Don’t
Both Luongo and Lanci believe central banks (particularly the Federal Reserve) understand what’s coming. They’re quietly accumulating physical gold while also appearing to run their regular operations. Luongo is blunt about it: “If you open the Fort Knox vaults you’ll find moths and IOUs,” he jokes, but then adds seriously, “I think we probably have as much, if not more gold” than official records claim.
The key insight is that gold is being quietly repatriated. When JP Morgan was called on old loans of gold tied to derivative positions, the bank bought more than it was obligated to return. Then it used those profits to buy even more. This created a cascading effect where more gold was accumulated than was ever lent out.
“If I’m JP Morgan and my note’s getting called and I have to buy, let’s say, ten tons of gold, I’m gonna buy twenty because I’m JP Morgan,” Lanci explains. “And then when you use that other ten to buy, I’m gonna use that as the ten and then hedge it and use the profits off the heads to buy another five.”
The Basel III regulatory framework seems to have triggered this process. When Basel III requirements for gold holdings increased, JP Morgan announced it was moving its gold derivatives from the FX books to the gold books—essentially exposing previously hidden positions. Then convictions were handed down for traders involved in gold price manipulation. Then JP Morgan became the custodian for GLD.
“This is all that’s happened from here,” Lanci observes. “The US is supporting GLD. They’re not going to let it go under. GLD will become the sole way that you can invest in gold.”
Mercantilism Returns
Luongo uses a term that echoes centuries of economic history: mercantilism. This is the system of national economies protecting their resources, running trade surpluses, and accumulating precious metals as financial backing.
“Tariffs are the lever,” he explains. “Ring fencing our own natural resources, find self finished products. That’s the essence of the mercantile model.” It sounds archaic—and in many ways it is. But it also makes intuitive sense. If you control your own resources and you don’t rely on global supply chains that can be disrupted or weaponized, you have power.
Countries around the world are already doing this. Ghana requires payment for gold in gold. South American nations are demanding higher payments for silver. The BRICS nations are rejecting requests for lithium without technology transfer for battery production. The U.S. is just being quieter about it.
You cannot run a modern supply chain for base commodities that if you don’t have a working future, Lanci says. This is why the COMEX survives even if it empties. Industrial metals—copper, aluminum, nickel, lead—require futures markets to function. Supply chains depend on the ability to lock in prices months or years into the future.
China and Russia understand this perfectly. They’ve been accumulating gold for years and positioning themselves for a fragmented global economy. The U.S. is waking up to the same strategy.
The Payment Chain Is the Real Story
Here’s an insight from the conversations that ties everything together: supply chains run forward from production to consumption. Payment chains run backward. When you sell something, money flows back from the buyer to the supplier to the refiners to the miners.
“As the BRICS were protecting their physical commodities, and our supply chains were broken, and we have to repeat, we have to start digging here, we have to start getting oil domestically, silver from Latin America,” Luongo explains, “the FED was smartly repatriating our payment chains, because if the supply chain is broken, then the payment chain is vulnerable to other countries.”
This is why gold repatriation matters so much. If your supply chains are broken, you need to control the payment systems. You need to know where the money is. You need to be able to block foreign access if necessary.
“That’s why I keep watching credit spreads between” currencies, Luongo says, and that’s why SOFR replacing the euro-dollar LIBORsystem matters. The Fed regains control over dollar pricing. The U.S. regains control over its payment system. This sets the stage for an onshore dollar that’s cheaper (weaker) for domestic capital and an offshore dollar that’s more expensive (stronger) for international transactions.
London’s Shadow Still Looms
Perhaps the most controversial argument in their discussions concerns London and British influence over the American financial system. Luongo is unsparing in his critique and has come to his opinions over many years of analysis. He argues that Britain, having lost its empire, found a way to preserve its power through financial manipulation. The LBMA, the euro-dollar system, the Bank for International Settlements—all of these are tools used by what Luongo calls the “high table” to maintain dominance.
“The Crown technically owns all of these assets. The Crown Corporation, your British East India company morphed into and became the IMF (International Monetary Fund), the Bank of International Settlements, all of this stuff, it’s all the same company,” Luongo claims. It’s a bold theory, and one that requires understanding how historical institutions transformed after WWII. Britain couldn’t maintain a traditional empire, so it evolved into something more subtle—financial control through banking systems and currency manipulation.
His theory is that American neoconservatives are often proxies for British interests, pushing the U.S. into wars that benefit London’s geopolitical position. “We fought Britain’s war in World War One, we fought it in World War Two, and now they’re trying to get us to fight the same war in World War Three,” he says passionately. From his perspective, the pressure to support Ukraine, the rhetoric about “democracy” vs. authoritarian regimes, the constant focus on confronting Russia—all of it traces back to London’s centuries-old strategy of preventing any single continental power from challenging British naval and financial dominance.
George Soros, in this framework, isn’t acting independently but as an agent of London. “George Soros has been working for MI6 since the day he was recruited seventy years ago,” Luongo claims. This is where Luongo’s analysis gets into murky territory. The 1992 pound crisis that made Soros famous? According to this theory, it was designed to destabilize Britain’s currency specifically to force the country into the European Union’s orbit—and therefore under tighter control from European financial elites aligned with British interests.
What’s relevant about this framework, whether you accept it or not, is that it helps explain why Trump’s approach feels so threatening to the established order. Trump is disrupting the postwar consensus that kept America committed to supporting Britain’s financial hegemony. He’s questioning NATO, demanding European allies pay more, questioning endless military commitments abroad, and most importantly, he’s reorienting American policy toward American interests rather than maintaining the global system that benefits London and factions of Wall Street in equal measure.
Luongo sees Trump not as implementing some grand strategy but as breaking the rules of a game he finally understood was rigged against him. “Trump is an asshole, but he’s our asshole, and he knows how those assholes think,” Luongo says bluntly. Whether Trump is motivated by ego, by a genuine desire to rebuild America, or by some combination, his willingness to disrupt the system and reject the advice of the foreign policy establishment is what matters. He’s willing to do things previous presidents wouldn’t do because they were too embedded in the old system.
Lanci approaches this more cautiously. He applies his own analytical framework: “Who benefits and who suffers?” When he runs this analysis on major geopolitical events, the arrows often point toward the same conclusion—the existing financial establishment wants to maintain control. But he’s less committed to the specific historical narrative about British influence. What he cares about is whether the math checks out. And on the question of whether the West is losing financial dominance over commodities and precious metals? The math is clear.
A System Breaking Apart
What makes these conversations compelling is that both men see the same underlying process happening across multiple domains simultaneously. Financial markets are fragmenting. Supply chains are reshoring. Central banks are accumulating precious metals. The dollar is bifurcating. Mercantilism is returning. And most importantly, the postwar consensus that kept America tied to defending Western European and British interests is breaking down.
“This war is multimodal,” Luongo says. “You’ve got financial war, you’ve got cultural war, you’ve got political war, you’ve got economic war. You’ve got literal military boots on the ground.” He’s not speaking metaphorically. From his perspective, the conflicts in Venezuela, Ukraine, the Middle East, the trade war with China—these are all fronts in a larger struggle over whether the old order survives or gets replaced.
He sees this as a conflict between the old guard trying to maintain their power and a new faction—potentially including Trump, Federal Reserve Chair Jerome Powell, and Treasury Secretary Scott Bessent—trying to reshape the system in America’s favor. The Trump administration’s approach has been to treat geopolitics as transactional rather than ideological.
Luongo describes Trump’s strategy as explicitly breaking with the postwar consensus. “Trump went to London and offered terms of surrendered to the king, and the king told him politely to go fuck himself. Well, okay, now it’s on, like Donkey Kong.” From Luongo’s perspective, Trump attempted to negotiate with the British financial establishment, to work within their system. When they rejected him, he decided to dismantle it instead. There is obviously no direct evidence for this, so we’ll just have to see how the trends emerge over time.
But this explains the aggressive posture toward Europe. It explains the focus on tariffs and trade deals. It explains why the Trump administration is willing to let traditional American allies struggle while negotiating separately with countries like Saudi Arabia. Trump is treating international relations as bilateral deals between sovereign nations rather than as commitments to maintain a global order that benefits the collective West.
Luongo himself is explicit about where he stands on this divide. He’s reached a breaking point with what he sees as European parasitism. “I’m going on the warpath with these people because everybody needs to get it,” he says. He’s done with European commentators who criticize America while benefiting from American military protection and the postwar order that America built and sustained. “You speak with a European accent, and you do nothing but shit in the United States. Fucking you’re dead to me because you don’t understand the real access to the real problem here,” he states flatly. This is typical Tom. However, his outbursts are generally based on years of deep analysis. Again, we’ll just have to see.
This isn’t academic disagreement. Luongo sees European elites as having deliberately drained American wealth through the postwar financial system while simultaneously criticizing American foreign policy and American culture. They got rich off American sacrifice and American capital flows, then turned around and blamed America for the problems their own system created.
By draining the world of the silver and gold and then collateralizing it for domestic purposes, Luongo says, this administration is literally restructuring the financial foundations of American power. They’re not trying to maintain the dollar as the global reserve currency through British-style financial dominance. They’re trying to back it with physical assets in the United States and make America actually wealthy and productive again.
In Luongo’s hypothesis, the Federal Reserve is playing a role and collaborating with Trump. “Whether he’s doing that because he’s been told, I doubt it,” Luongo says of Powell. “But what he is doing is he’s saying, I want to protect our payment chains. I want to protect the dollar, and I want to protect the economy.” Powell, despite being a traditional conservative, appears to understand that protecting the American economy means sometimes breaking with what the financial establishment prefers.
Lanci reaches similar conclusions through different means. He watches the markets and asks what incentives different players have. When China and India start accumulating gold at a pace that wasn’t visible before, that signals something. When the Fed starts moving gold around and JP Morgan gets made custodian of the nation’s largest gold ETF, that signals something. When lease rates go negative on Mexican silver and it all flows to Chinese refineries, that’s not random—it’s a coordinated strategy. The math pointstoward the same place: fragmentation is coming, and those who own physical assets rather than paper claims will fare better.
Both men believe the next few years will determine whether America successfully transitions to a new model or whether it tries to cling to the old one and fails. The geopolitical stakes are high.
What This Means for Regular People
If even half of what Luongo and Lanci describe is accurate, the implications are profound. The familiar financial architecture that has defined the postwar era is being dismantled. The pricing power for commodities is moving from West to East. Central banks are hedging against currency collapse by accumulating precious metals.
Neither man claims to have perfect foresight. Lanci notes that the changes he’s observing could take decades to fully play out. But the direction is clear: toward fragmentation, protectionism, and a precious-metals-backed foundation for new regional monetary systems.
“We have to look at it from this perspective,” Luongo concludes. “All of this stuff that we’ve grown up with, these market structures, we’ve been imprinted with, based on the fact that the FED was a captured pawn. But now the global model doesn’t work, we better pull the reins in.”
For investors and ordinary people trying to preserve wealth, understanding these shifts isn’t just an academic exercise. The prices you see today for gold and silver might look prescient when viewed from the perspective of the system being built tomorrow. Both men have spent careers studying how markets work and how power flows through financial systems. Their conclusion is that we’re living through a genuine inflection point—the kind that happens once or twice per generation.
That’s the story Tom Luongo and Vince Lanci are following. Whether you believe their geopolitical analysis or not, the market structures they describe are real and measurable. And those structures are changing in ways most people haven’t noticed yet. Are you getting it yet?
Great discussion on Bitcoin, history, and war with lots of disagreements. It’s a standard for civil discourse.
In episode 154 of The Bitcoin Standard Podcast, economist Saifedean Ammous and historian Niall Ferguson engaged in a discussion that ranged across a century of monetary history, from the origins of World War I through the Russia-Ukraine conflict. Their exchange demonstrated how an economist and a historian can push their perspectives assertively yet respectfully, disagreeing without talking over one another. Such conversations should set the standard for public discourse because they allow us to learn from views different from our own.
When Britain Chose to Fight
Ferguson argued that World War I was not inevitable, particularly Britain’s decision to join the conflict. He emphasized that the war became global only because of contingent political calculations, especially Lloyd George’s unexpected support for intervention in the August 2, 1914 cabinet meeting. Without Britain, Ferguson suggested, Germany might have defeated France and Russia by 1916, potentially creating a Central European Customs Union similar to the modern European Union. This alternate history may have prevented the Russian Revolution, Hitler’s rise, and immense bloodshed.
The irony, Ferguson noted, is that Britain barely prepared for the war it joined. The nation lacked a large standing army and had made no formal security commitment to France. This weakness meant that Britain had to build its military while fighting Germany, leading directly to disasters like Somme. The financial cost proved equally devastating. Britain emerged from the war with heavy debt, which ultimately weakened its global power. By choosing to intervene, Britain sacrificed its imperial dominance to preserve a European balance of power, a trade that left it exhausted and diminished.
The Monetary Aftermath
The conversation turned to the financial mechanics of the war itself. Ammous pointed to a 2017 discovery in the Bank of England archives in which John Osborne revealed that the bank had secretly purchased two-thirds of war bonds to create the appearance of public support. Ferguson contextualized this as typical wartime finance, drawing parallels to Napoleonic strategies. When the public will not fund a war through voluntary lending, governments resort to central bank purchases and monetary expansion. Ferguson noted that this was well understood by British officials as a necessary wartime suspension of normal economic rules.
The two debated whether this wartime inflation and the subsequent attempt to restore the gold standard at pre-war rates led to the Great Depression and eventually to World War II. Ammous, grounded in Austrian economics, argued that staying on gold at a realistic, revalued rate would have prevented decades of suffering. Ferguson, citing Barry Eichengreen’s work, countered that the post-war world was simply too changed by war, labor unionization, and democratic pressures to resurrect the old system. Flexible exchange rates, Ferguson suggested, would have suited the interwar period better than trying to force economies back onto an inflexible standard.
Yet Ferguson offered a broader historical perspective: the post-World War II era under Bretton Woods saw extraordinary growth despite being anchored to a dollar-based system rather than a pure gold standard. This suggests that what matters most may not be gold itself but stability and confidence in the monetary system. When that system eventually broke down in 1971, flexible exchange rates emerged and proved remarkably successful for developed economies.
Bitcoin and Digital Gold
Ferguson approached Bitcoin with skepticism tempered by recognition of genuine use cases. He viewed Bitcoin as an interesting option on digital gold but questioned its necessity in stable countries like the United States. In unstable economies with currency crises or capital controls, Bitcoin offers real value. Ammous, having lived in Lebanon and witnessing hyperinflation, testified to Bitcoin’s practical utility for preserving wealth across borders without government intermediation. Unlike physical gold, which cannot easily be transported internationally without permission, Bitcoin moves at the speed of information.
Yet Ferguson raised a crucial point about financial literacy. “We quite deliberately do not educate people financially,” he observed, leaving most people unprepared for a chaotic economic world where no risk-free assets exist. This deliberate ignorance serves the interests of institutions that benefit from financial dependence. Understanding the acquisition and management of resources, Ferguson argued, threatens institutional power by empowering individuals. This was an incredible point in the interview given Ferguson’s support of institutional power on a variety of issues. Here he’s recognizing that it’s the institutions keeping individuals ignorant about money. This viewpoint is rarely if ever expressed among the elite.
War and Money
Ferguson closed the discussion by connecting war to monetary disorder. Throughout history, he noted, wars are the primary driver of inflation. War forces governments to suspend normal economic rules to finance destruction and death. In such emergencies, central banks abandon restraint, currencies depreciate, and the historical process proves fundamentally chaotic and unpredictable. Ukraine today demonstrates this principle. Both sides believe time favors them, so the conflict will likely persist, driving sustained inflation just as World War I did a century earlier.
The episode revealed a truth worth remembering: monetary systems reflect political realities, not the reverse. Gold, fiat, or Bitcoin, the money that societies use is always subordinate to the demands of power and war. Understanding this history teaches humility about any monetary system’s permanence or superiority. The question is not which system is theoretically perfect but which one serves society’s needs in practice, and whether we educate our citizens to navigate whichever system we choose.