Economic Rollover: Banksters Created The Greatest Ponzi Bubble In Financial History
PoliticalVelCraft
The common consensus in the financial community today is that the Fed and other Central Banks have somehow managed to end the business cycle. The result of this is that we’ve entered a period of sustained growth (albeit low growth) that will continue in perpetuity until something magical happens and stronger growth returns.
On the surface, this argument is embarrassingly naive. And it is astounding that grown adults actually believe it.
The Fed and other global Central Banks are largely being run by academics with zero real world experience.
For centuries leaders and their advisors have tried to generate perpetual growth. None have succeeded. So the idea that this current group of Central Bankers, isolated from the private sector for their entire careers, somehow understand economics better than any other group of humans in history is ludicrous.
We don’t even have to look back far to see where this ends. A mere 15 years ago, the financial world believed that Alan Greenspan was an economic genius who had brought the world to an era of the New Economy in which we saw non-stop productivity gains.
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The fact that he handed off that mess to Ben Bernanke (another ivory tower economist with zero real world experience) before it nearly took down the entire financial system is the greatest accomplishment of his career.
And yet, today, a mere decade later, the investment community has fallen for the same nonsense. Ben Bernanke is hailed by mainstream media outlets as The Hero (!!!) because he, like Greenspan, has doubled down on his idiocy and created yet another bubble… this one in an even more senior asset class (sovereign bonds).
Bernanke, also like Greenspan, has handed this mess off to Janet Yellen, who, like her predecessors, has zero real world experience in the private sector. And yet, she is now sitting atop the largest asset bubble in financial history.
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On top of this, because sovereign bonds are the supposed “risk free” rate against which all other asset classes are priced… when sovereign bonds are in a bubble, EVERYTHING is in a bubble: corporate bonds, muni bonds, etc.
All told, the bond bubble is now $199 TRILLION in size. It is over TWO times the size of global GDP. And because the Fed never bothered to actually crack down on the derivatives markets (the securities thank permitted the housing bubble to become a systemic issue), there are now $555 trillion in derivatives trading based on bond yields.
This is the greatest bubble in history… seven times global GDP and backstopped by nothing more than monetary printing presses run by the equivalent of an Alan Greenspan in every major economy.
We know how this ends. We’ve been through it twice in the last 16 years alone. And the stock market is already making clear where this is eventually headed.
Zero Hedge
Point Of Order:
Brzezinski’s Zionist NWO Lost And Now Wants A Concession ~ Calling It [Global Realignment] aka NWO Lite.
On October 1st. 2016 The International Monetary Fund (IMF) will separately identify the renminbi (RMB) [aka Yuan] in its official foreign exchange reserves database. Many Banks and Corporations will stop using the U.S. Treasury and will start using the Yuan. To preempt this woe for the U.S. Dollar the Rothschild Fed Reserve may in September raise its rates by .25%.
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value of the SDR is currently based on a basket of four major currencies: the U.S. dollar, euro, the Japanese yen, and pound sterling. The basket will be expanded to include the Chinese renminbi (RMB) as the fifth currency, effective October 1, 2016.
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