Millions of Americans Delinquent on Student Loans

Posted Mar 20, 2025 By Martin Armstrong

Millions of Americans believed that their student loans would be forgiven per the promises made under Biden Administration. Then there was a period of student loan forgiveness that began during the COVID era when countless people found themselves unemployed. Payments have resumed but 9.2 million (43% of federal loan borrowers) have fallen over 90 days behind on payments.

Instead of forgiveness, these delinquencies will remain on these borrower’s credit reports for seven years. Delinquencies show on all three major credit bureaus (TransUnion, Experian, and Equifax) through nationwide credit reporting agencies (NCRAs). The result is an immediate drop in credit scores of up to 250 points.

So over 9 million Americans experienced a massive downturn in their ability to borrow instantaneously. Many may not realize that one missed student loan payment can be counted as up to eight missed payments. Credit scores are calculated and weighted differently depending on where you look. FICO factors in payment history as 35% of one’s overall credit score, while VantageScore factors in missed payments as 40% of creditworthiness.

Student loan payments have not appeared on credit reports for the past five years. Those who are able to meet their loan obligation will see a positive uptick in their score. VantageScore reported that they believe 2.3 million borrowers will see their credit rating fall beneath 600 once these payments reappear on consumer credit files. These people will have an extreme difficulty obtaining new loans.

Thanks to the Clinton Administration repealing Glass Steagall, student loans may not be discharged in the event of bankruptcy. Default and the entire balance is due immediately, with an addition of up to 25% of the loan balance in collection fees. The government may withhold Social Security benefits and tax refunds and will repeal any federal financial aid. Certain professional licenses could be suspended. Defaulting makes it hard for borrowers to access forbearance, deferment, and other repayment options. On top of everything, the government can begin to garnish wages WITHOUT a court order.

The War Against Nitrogen Fertilizers is More Than You Realize

 

Posted Dec 1, 2022 by Martin Armstrong

COMMENT: As an ex-soldier, whilst reading your posts regarding the Right to bear arms, Nitrogen fertilizer, and Diesel fuel I suddenly got a brain warp to the past. In Rhodesia with sanctions on us, we developed a bomb using Nitrogen fertilizer, blue soap, and diesaline. It was similar to napalm. When the change came to Zimbabwe all our weapons were taken away from us and locked up. We also had to reapply for licenses for any private weapons. This shows that when you have an informed and prepared public the government is at a disadvantage. The current attack on fertilizer, auto fuels, and guns shows just how scared the WEF and their one world order are desperate to control these three commodities. WHY?
CB

REPLY: I think you bring up a very good point that is often overlooked. Nitrogen fertilizer can be used to make bombs. They are doing their best to try to outlaw all guns. It seems they want more crazy people shooting up schools and then they demand the end to guns every time. There is no question that those in power KNOW the monetary system is collapsing. They have put forth Guaranteed Basic Income (GBI), NOT because they care about the people, they ONLY care about retaining power over the people. The EU has wiped out most pension funds with negative interest rates since 2014 and decrees that they must have government bonds between 70% and 90%. Scandinavia is outside of the EU.

The GBI is to prevent millions of people from storming the Parliament with pitchforks when they wake up and their pensions are gone. Eliminating guns and even Nitrogen fertilisers are part of the effort to disarm the people. What is taking place in the Netherlands and this insane demand to end Nitrogen fertilizers under the pretense of Climate Change is more suited for a B-Rated SciFi movie with green lizard aliens coming to eat all humanity. They are using Climate Change for Political Change.

Denver Tests Basic Income on Homeless

 

Posted Sep 20, 2022 by Martin Armstrong

Governments love to conduct social experiments on the masses. What would happen if we gave the most financially vulnerable in our population cash every month? The Denver Basic Income Project just approved a new general basic income program for a select number of homeless people who will now receive $1,000 per month in cash. The money came from the American Rescue Plan Act at the cost of $2 million.

Cash, as in the government is actually not tracing these purposes for a reason. They are targeting around 140 people, meaning this is an experiment. Do they plan to address why these individuals became homeless? Will there be mental health or drug evaluations? Will people have access to information and tools such as learning how to budget or re-enter society? Throwing money at problems is never the solution. Are there any tools to help people re-enter the workforce?

At worst, they will expand this program and continue to reward people not to work. Once they begin to hand out free cash, people will continue to expect free cash. We saw it with the COVID unemployment benefits, where people chose to leave the workforce as it was more lucrative than participating in society. The University of Denver’s Center for Housing and Homelessness Research plans to study this experiment funded by you.

Population & Social Security – Civil Unrest. 509% reduction in the population by 2040 in USA

 

Posted May 19, 2022 by Martin Armstrong

QUESTION #1: Dear Martin and AE Team,
Thank you for everything you do and have done for us, the little people.
My question is this. As you/Socrates have predicted the fall of governments on a global scale, along with the collapse in confidence, of which I am the poster child for, I was a lifelong Democrat, but no longer, I have completely lost all confidence in our government. My concern is what do you or Socrates think is going to happen to Social Security. I will be turning 62 very soon and think that given everything that is going on, I should take what I can get NOW, because it doesn’t look like Social Security will be around after 2033. Does Socrates have any predictions on this. I would think there are a lot of other AE subscribers in the same predicament. Any opinion (not advice) on this would be gratefully appreciated.

Thank you very much,

TH

ANSWER #1: It is a difficult question. Inflation will erode what you get anyhow. But there will come a point in time when the whole thing goes belly-up. It was January 1935, when President Roosevelt sent his “Economic Security Bill” to Capitol Hill. On August 14th, 1935 (1935.619) President Roosevelt signed the bill into law at a ceremony in the White House Cabinet Room. The likelihood of SS coming to a complete end will be 2029.6. Just keep in mind that they will pay only what is owed and they will not take into account real inflation. Just ask those who were promised pensions from Venezuela. When they were finally paid, what would have covered a month’s living expenses would buy a cup of coffee.

The problem that we have with Social Security is that the entire system is a Ponzi Scheme. It needs population growth to keep paying taxes to pay for the previous generation. As you know, I was called in to reform Social Security and turn it into a wealth fund that actually invested back in the Nineties. The Democrats would not vote for it claiming it was more secure investing in government binds exclusively, and if it was privatized they wanted to change the fund managers when they go back in power. The whole thing was a joke.

QUESTION #2: Mr. Armstrong, it is becoming obvious that _______ no longer publish your forecasts because they are like the Biden Administration and will only publish people taking your work as long as they claim gold will rise to $40,000. If I remember correctly, you said the postwar period of the baby boom was the peak in population growth and that a decline into 2028 would unfold but the low would be after 2032? How low is low?

Concerned Reader

KE

ANSWER: Those who are always desperate to claim everything will go down except for gold are spouting out their personal bias which prevents them from looking at the real trend. The eventual low in population may not arrive until 2040. As far as how low is low, that should be about a 50% reduction up there with the Black Plague.

We have war, but on top of that, we have climate change that is heading to colder – not warmer periods. That is when crops fail and that results in malnutrition and this disease rises. These mandatory COVID vaccines are probably the catalyst for a sharp rise in disease. Viruses mutate. That is their function in this world. The more you vaccinate unnecessarily, the more mutations will emerge from the viruses to survive. That means they will get worse there y defeating the vaccines. Those who were NOT vaccinated will stand a far better shot at surviving.

Just look at the antibiotics. The overuse of these drugs has led to superbugs evolving that are not incurable. The CDC has even stated that the overuse of antibiotics has led to superbugs. Interestingly, even the World Economic Forum (WEF) report published in 2014 warned that ‘The world will run out of effective antibiotics.” The WEF stated the link between the overuse of antibiotics was causing antibiotic resistance and superbugs in hospitals. This has increased the death rates of many people. They concluded that antibiotic-resistant bacteria posed the greatest risk to human health. Others have noted that bacteria are growing stronger and acquiring resistance to multiple drugs. (Spellberg, Bartlett, & Gilbert, 2013).

To me, it is hard to imagine that this demand for 100% vaccinations for COVID is a risk to humanity for the COVID-19 virus will mutate to defeat all possible vaccines as what is already taking place with antibiotics.

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The more volcanoes that are erupting (3 now in Alaska), the greater the chance of volcanic winter. If that unfolds on top of this food shortage created by the COVID Lockdowns and the crazy Climate Change people who want to terminate all fossil fuels right now, we are looking at a lethal combination of events that can certainly lead to a 509% reduction in the population by 2040.

There are plenty of people who are taking our forecasts and pretending they have derived this all on their own. Sorry. This comes from a computer that has been putting that forecast out for the last 20 years by correlating everything. You cannot simply look at war and claim that is your source. This is a combination of events – it is never a single cause and effect.

QUESTION #3: Marty, there were a number of major financial institutions there in Orlando and two central bankers I overheard in a conversation. They were all focused on not your international war cycle, but your cycle of civil unrest. I think the punch line was that was much more serious. Do you have any updates on that here midterm?

Thanks really for you and your team. They are standing by society in a time we need it. My hat is off to your entire staff.

HB

ANSWER #3: Yes, Civil Unrest is actually far more dangerous than international war. As I have warned many times, the Civil Unrest is what leads to revolutions. The International War lead to a reduction in population, and they can lead to civil unrest as was the case in Germany following WWI when they overthrew the monarchy. World civil unrest turned up sharply with the ECM turning point of 2020.05.

That said, the #1 question I do get right now from our global banking clients, investment firms, and international hedge funds has been about the civil unrest forecasts. They saw the uprising in Pakistan because of rising inflation. The polls here show that inflation is the #1 concern. There are more people concerned about the Johnny Depp trial than Roe v Wade. Even Walt Disney has suffered a major collapse in their trust following their attack on DeSantis. Sorry, but most parents do not want third graders being told they might be gay. This entire WOKE movement has undermined the confidence in corporations and government.

Our institutional clients are bracing themselves for a surge in civil unrest in the US, but especially in Europe including Great Britain. This entire insanity of trying to shut down fossil fuels BEFORE you have a viable alternative is not just sending energy prices to the Moon, but food prices are exploding and shortages are expanding. This is a combination that is behind our computer forecasts on the Civil Unrest models we have published for the last 40 years.

Our models on Civil Unrest go back to 600BC which is significantly different than the international war which goes back to 6000BC starting with recorded history covering Europe and Asia.

And BTW, this is not a one-man-band. Our staff is around the world. We have Staff in China, Europe, Middles East, and SE Asia. They deserve the recognition. They are committed to what we do try to provide answers and forecasts for the largest international audience of anyone.