Phoenix Capital Research's blog

The vast majority of investors are ignoring a major warning that this bounce is not to be trusted.

The financial system is lurching towards the next round of the Great Crisis that began in 2007.

Imagine… if you could press a magic button… and your wealth expanded by hundreds of thousands…if not millions of Dollars.

It’s amazing to watch, particularly when you consider that it is now public information that Draghi actually didn’t have a plan when he first claimed this and is effectively making up policy on the fly.

This process is not over, not by a long shot. As anyone who invested during the Peso crisis or Asian crisis can tell you, when carry trades blow up, the volatility can be EXTREME.

Whenever investors themselves begin to comprehend that the Fed is now more leveraged than many of the investment banks were when they went bust in 2008, the end game will begin.

$8 trillion in QE spent by Central Banks failed to generate any sustained GDP growth or jobs. So what did the Central Banks do? They stopped talking about growth and began talking about “inflation.”

The next time stuff hits the fan, will the world be as trusting in Central Banker proclamations? Will we continue to believe these folks are omnipotent? Or will their phony promises accomplish nothing?

Globally the US Dollar carry trade is believed to be north of $3 trillion (larger than the economy of France). What happens when it begins to unwind?

The Central Bankers bet the financial system that their theories were correct. They were wrong. Horribly wrong. And we will all pay the consequences for it. 

These people know the gravy train is about to run off the rails and they’re looking for safety. They don’t care if they miss out on another 5% gain in the stock market, they want to get out of stocks NOW.

The ECB will not be able to implement a QE program. Even Ben Bernanke admitted it.

The US Dollar is moving up RAPIDLY. Will this blow up the financial system as it did in 2008? We’ll soon find out.

 If the GOP takes the senate, the days of the Fed doing whatever it wants will have ended. This may well in fact be what pops the US stock market bubble. The GOP hasn't controlled the Senate at any point since the Crisis hit in 2008. If the GOP controls both the House and the Senate, the Fed will be in for SERIOUS problems. 

In simple terms… we’re back in 2007, but the Fed will have very real limitations to what it can do when this bubble pops. And it will pop in the not so distant future.