Phoenix Capital Research's blog
DEBT DEFLATION is a nightmare for the Fed because it would almost immediately bankrupt both the US and the Too Big To Fail Wall Street Banks.
For six years, we’ve been told that the US economy is in recovery. This is a totally bogus narrative that was dreamt up by the Central Planners running the Fed. The US economy is a disaster and has been since 2009.
Stocks are pricing in ECONOMIC PERFECTION and the reality is that the global economy is imploding.
With the Fed and other Central banks now leveraged well above 50-to-1, even those entities that were backstopping an insolvent financial system are themselves insolvent.
This bubble, literally dwarfs all other bubbles. To put this into perspective, the Credit Default Swap (CDS) market that nearly took down the financial system in 2008 was only a tenth of this ($50-$60 trillion).
Fraud is endemic in the financial system today. We know that the currency, stock, bond, and even commodity markets have ALL been manipulated by Investment Banks or Central Banks.
All of the biggest problems in the financial world revolve around the bond markets today:
The dark truth about the Greek debt negotiations that Central Banks have been trying to hide.
EU leaders were proposing capital controls, border controls, and even limiting the amount of money that could be removed from ATMs throughout Europe back in 2012. They'll do it again.
The final and ultimate round of the Crisis that begin in 2008 will occur when faith is lost in the Central Banks.
The 2008 Crisis was not THE Crisis. The 2008 Crisis was largely a banking crisis focused on securities. The REAL Crisis will hit when the bond bubble collapses.
ZIRP forces retirees and the baby boomers to become more frugal based on lower interest income... this is DEFLATIONARY and has crippled consumer spending.
This problem DWARFS Greece, Spain, Italy, even France (combined).
The Fed is no longer engaging in QE. Profits will now be the largest drivers of stocks. And profits are collapsing.
Draghi will need a lot more than a few bluffs to get his way through this one. The market smells blood.