Back in January of 2016 we saw what appeared to be, and in my opinion should have been, the end of the Everything Bubble blown by the word's central banking cartel.
The carnage started in the emerging markets. Highly-leveraged positions and carry trades began to unwind. That's a fancy way of saying that all the big, sophisticated investors -- who were busy borrowing heavily in countries with cheap money (the US, Japan, and Europe) and using that debt to speculate in markets offering higher yields (junk debt, emerging markets, stocks, etc.) -- began to reverse their trades.
It quickly devolved into a “Sell everything!” scramble. We saw the dollar spike and stocks fall -- with emerging markets taking the full brunt of the carnage as their stock markets rapidly fell into bear territory, their currencies fell, and their bonds were destroyed.
Until...
Very early one morning in February of 2016 everything U-turned and rocketed higher. Suddenly and magically, the panic was over. This wasn’t the invisible hand of the market at work; it was the very-visible hand of central bank intervention.
With the benefit of hindsight, we now have a clear picture of what happened. The central banks huddled together, a bold (desperate?) plan was hatched, and key printing presses around the world were sent into overdrive. In the months to follow, the European Central Bank (ECB) and the Bank of Japan (BoJ) went on a record-breaking money printing spree:
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3 comments:
Author clearly does not understand the world economy.Trump does.Anyone who ever had a pitcher pump knows it has to be primed as frequently as it is used unless it is used continuously.The economy needs constant priming by any means necessary.My son was stationed at Ft Knox when the gold was removed,but that had zero impact on the economy because no one knew it.Money has been printed daily for hundreds of years,sometimes in excess,sometimes not,but the pump needs priming PRN.
This article encourages the reader to get out of the stock market and indeed out of all paper assets.
Buy food, clothing, autos, gold, silver, guns, ammo, so on.
Prepare for the collapse. If it doesn’t happen in our lifetime, these items will be left for the children.
The Stock market needs to be allowed to adjust with the times. Which means a drop of at least 50 percent. Interest rates need to adjust with the times, which means 6 to 7 percent.
But the oboma administrations FED printed money to support the likes of Jim Crammer, and the stock market. Not looking out for people of main street.
They will probably print more money again. To prop up the market for the rich. Leaving the poor , elderly and people on fixed income stuck as it has been for the last 8 years.
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