Socio-Economics History Blog

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European Banking System Collapsing Now! Next up, Sovereign Bonds?


  • European Banking System Collapsing Now! Next up, Sovereign Bonds?
    by ,
    Unequivocally, the rubber is hitting the road NOW!  So much so, I believe “last to go” markets are in danger of being overwhelmed by the chaotically scrambling, Keystone Kop-like, terminally cancerous “powers that be.”  And by “last to go,” I don’t just mean the gold and silver markets, which are being swamped by exploding physical demand, collapsing production, vanishing inventories, and history’s most violently PM-bullish political, economic, and monetary environment.  No, I mean everything else; including hideously overvalued stock markets – which cumulatively, will either crash into oblivion, or hyper-inflate Zimbabwe style; with the result, in either case, being the biggest real losses of all time.  To that end, kudos to Gordon Long, who in this article, opened my eyes to the massive head and shoulders top formation in global stock markets, which is breaking down as we speak; ominously, led by financials.  Which is exactly why he – and I – anticipate Central banks are about to go “all in” on hyperinflation.

    To that end, today’s Japanese fiscal stimulus announcement (following last week’s Bank of Japan pronouncement that it is doubling its stock market purchases); this morning’s Royal Bank of Australia rate cut; and next week’s imminent Bank of England rate cut and QE announcement; are just the tip of what will be history’s biggest monetary iceberg.  Just under the surface – where as you know, the majority of icebergs lie – the Federal Reserve is lying in wait, praying it can avoid re-joining the overt QE ranks before the election.  But irrespective of the timing, I assure you they will retake the mantle of lunatic, overt money printing and asset monetization from the ECB and BOJ before long.  And when they do, there’s no telling if 2008-style crash or Weimar-like hyperinflation will win the day.  Which, in either case, will yield a massive crash in the dollar’s value against real money, irrespective of how it performs  against other collapsing fiat toilet paper.

    read more.


August 3, 2016 - Posted by | Economics | , , , , , , , , , , , , , , , ,

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