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Central Banks Will Not Be Able to Halt This Economic Collapse

Phoenix Capital Research's picture




 

In 2008, the world experienced the worst economic collapse in 80+ years. This collapse triggered a stock market crash that erased $30 trillion in wealth.

 

Since that time, collectively Central Banks have cut interest rates over 600 times and have printed over $15 trillion in new money... money that has failed to generate sustained economic growth... money that has set the stage for another stock market crash.

 

Consider the measures of GDP growth in the US for instance.

 

The mainstream media likes to present the “official” GDP numbers as though they are gospel… but the reality is that the number you hear in the press is not even close to accurate.

 

One of the simplest means of hiding the real economic collapse is to use a bogus measure for inflation. If GDP growth is 10%, and inflation is 10%, then real GDP growth is 0%.

 

But what if GDP growth is 10%, real inflation is 10%, but you claim inflation is just 6%?

 

Boom! You can promote GDP growth of 4% to support your claim that printing trillions of dollars has boosted the economy.

 

To remove this accounting gimmick, you can use Nominal GDP and look at the rate of growth from a year ago. Doing this presents a VERY different view of the economy: one of economic collapse, not growth. I've circled periods in which the current level of "growth" occurred in the past.

 

 

As you can see, the “recovery” of the last six years has largely involved a “growth” rate that was closely associated with recessions over the last 30 years. At best the US economy has been flatlining. At worst we’ve had bouts of economic collapse comparable to a recession.

 

Also, note that the previous periods in which we’ve experienced this rate of economic collapse have been associated with stock market crashes.

 

 

The media can try to hide reality all it wants. But an economic collapse is here. It will trigger another stock market crash just as it did in the early '90s, the Tech Bubble, and the Housing Bubble. And this time Central Banks won’t be able to stop it: they’ve used up all of their ammo in the last six years trying to create  recovery.

 

Smart investors are preparing now.

 

We just published a 21-page investment report titled Stock Market Crash Survival Guide.

 

In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.

 

We are giving away just 1,000 copies for FREE to the public.

 

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

 

Best Regards

 

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

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Thu, 11/19/2015 - 01:06 | 6812146 TheBeatles
Thu, 11/19/2015 - 00:14 | 6812074 Heavenlysunshine
Heavenlysunshine's picture

Who remained wealthy during the 30's Great Depression ?

Wed, 11/18/2015 - 19:35 | 6811304 lucky and good
lucky and good's picture

The world might soon witness a major shift in the value of one investment over another as investor seek firmer ground. Derivatives, currencies, plunging stock prices, air rushing out of a bond market bubble, how debts are structured, and the timing or direction from which problems arise are all elements that must be considered. Several factors determine just how much influence can be applied to how current economic policies unfold.

Using the metaphor of "let the chips fall where they may," things like the size of the chips, the rate or speed at which they fall, and the number of chips in the air may make them uncontrollable. We could find ourselves up to our neck in chips in a blink of an eye, at that time all bets are off as to how successful efforts to stem a catastrophe might be. The financial overlords may be losing control and this means during the final stage of the global shakedown events will be chaotic and become very wild. More below on how violent the crash might be.

 http://brucewilds.blogspot.com/2015/08/the-final-shakedown-will-be-uncontrolled.html

Wed, 11/18/2015 - 19:34 | 6811297 Buster Cherry
Buster Cherry's picture

Phoenix Capital does a great job of.recycling headlines from 2011....

Wed, 11/18/2015 - 18:19 | 6811028 JailBanksters
JailBanksters's picture

15 Trillion doesn't sound like a lot these, it's like we're being conditioned into thinking a Trillion is the new Million.

So consider what you could do with 15 Million pallets of 1 Million Dollars on each pallet, you see NOW you can visualize how much that is. If all this money was real there wouldn't even be enough Vault space in the entire world to hold it all, that's how ridicules it is.

Wed, 11/18/2015 - 13:28 | 6809567 conraddobler
conraddobler's picture

The stock market is never obvious. It is designed to fool most of the people, most of the time.

 

There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly build into human nature, that always gets in the way of human intelligence. Of this I am sure.

 

The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time. When a stock moves below a mental-stop, sell it immediately.  All these are Jesse Livermore quotes.

 

So if you were short and it didn't work out and you didn't have a exit strategy reltatively immediately then I don't believe there is anything unusual about losing money on that trade it happens all the time.

 

 


 


 


Wed, 11/18/2015 - 13:21 | 6809518 InnVestuhrr
InnVestuhrr's picture

I have not been able to get their "Stock Market Crash Survival Guide"

If you have read it, please tell me what they are recommending - is it gold ?     

Wed, 11/18/2015 - 13:10 | 6809452 Expat
Expat's picture

"In 2008, the world experienced the worst economic collapse in 80+ years. This collapse triggered a stock market crash that erased $30 trillion in wealth."

Well, there's your problem right there.  The collapse of the bubble did NOT destroy any wealth.  It destroyed nominal monetary price.  Wealth is destroyed when you smash a window, kill a worker, or burn a gallon of gas for kicks.

Letting the bankers die (figuratively and literally) would not have destroyed any more wealth.  We could have simply moved new workers into the abandoned office buildings and had them do something more productive and useful for our economy and nation, like writing limericks or masturbating.

Thu, 11/19/2015 - 01:58 | 6812226 Kprime
Kprime's picture

does this mean I have to stop throwing gas on my bonfires?

Thu, 11/19/2015 - 05:28 | 6812398 messymerry
messymerry's picture

Not if you are using the bonfires to illuminate your limerick writing paper while you masturbate. 

Seriously you guys, I don't think TPTB can hold this Kabuki crowd in thrall much longer. 

Get to where you want to be ASAP...

...as an aside:  Major metropolitan areas are not recommended.

;-D  

Wed, 11/18/2015 - 17:41 | 6810833 TRM
TRM's picture

No no no. The problem was that 30 trillion were wiped out but that they ONLY issued 15 trillion extra money. They need to issue another 15!!!

Makes sense to me  :)

/sarc  <--- Just in case some don't get it

Wed, 11/18/2015 - 17:45 | 6809401 gaoptimize
gaoptimize's picture

I see what's coming as bigger than a drop in the stock market or growth.  It is the end of financialization.  What's real, physical, and productive will retain and gain value.

Wed, 11/18/2015 - 22:45 | 6811892 DontWorry
DontWorry's picture

Thats why political and legal control of the system is so important.  They can enforce that the pieces of paper continue to have value.

Wed, 11/18/2015 - 12:36 | 6809268 Comte d'herblay
Comte d&#039;herblay's picture

Some good points and stats but. in the end, they are no more accurate in making a prediction of Armageddon than a thorough reading of Chicken Little's entrails. 

At least half of the very awake, savvy but un-connected to the elite at the Fed and Central Bankers generally, have taken short positions since 2008. 7 yrs later they are still waiting for that yacht to sail in with their treasure.

I have been burned so many times selling short, buying triple short ETFs, selling calls----- violating my own take that the FED and other powerful central banks will not permit a fall of even 10-20% let alone a full blown collapse back to the stone age of 666---that my retirement fund is in serious jeopardy. 

I guess one day the shorts may win, but I regret to my dying days the discovery of this particular blog which in its complicity had earlier fueled my own aggressive moves to the short side.  

Had I never seen ZH, I have no doubt I would be twice as well off today as I was years ago when my faulty instincts led me to believe that the collapse was all but sewn up. 

What to do next?   Buy 8 of the March '16 contracts of the Mini-Nasdaq, at the close today, in my fantasy portfolio to compensate for the loss in the 4 December contracts and hopefully ??? regain at least break even.

 

 

Wed, 11/18/2015 - 22:50 | 6811895 DontWorry
DontWorry's picture

What happens if the crash is so complete there is no one to pay your short, or your short is paid in worthless dollars?  You have to cash in your paper slips to something of real value and take them out of the casino.  Why do you think that banks and casions are always the biggest fanciest buildings in town?

 

I don't think you can blame this website, because you don't seem to understand that ZH is saying the whole system is fucked.

Wed, 11/18/2015 - 16:04 | 6810248 lunaticfringe
lunaticfringe's picture

The only correct answer on whether to go long or short in a rigged game- is that you simply can't play. That is the correct answer Mr. Comte d'herblay.

Wed, 11/18/2015 - 17:39 | 6810817 optimator
optimator's picture

You don't have to play, but you do have to chip into their pot, unless you own gold.

Wed, 11/18/2015 - 13:27 | 6809560 dmger14
dmger14's picture

Welcome to the club.  But the second I capitulate and go long the market, it will tank.  At some point when there is a meaningful dip, I plan to simply asset allocate and walk away because it truly is a crap shoot.

Wed, 11/18/2015 - 19:35 | 6811308 sleigher
sleigher's picture

Everything I do always goes to shit.  So you guys tell me when to get in, setup all your shorts, and I promise you will make a bundle.

I only want 35%  :)

Wed, 11/18/2015 - 13:19 | 6809503 debtor of last ...
debtor of last resort's picture

The house always wins. That is, until the casino burns down. Accumulate phyz in small steps, your big short will never pay out, not in real wealth anyway.

Wed, 11/18/2015 - 13:09 | 6809444 lasvegaspersona
lasvegaspersona's picture

Comte

The short answer is that timing is everything.

 longer answer is that gradually buying gold still works well for savers. Even that however is, at the moment a losing strategy. Unless the world has really changed into a group that will happily sit on paper promises from countries that threaten you, gold is still the ultimate winner.

Patience. In the end you will not want paper, long or short, if the dollar itself is the victim.

Wed, 11/18/2015 - 14:12 | 6809751 amadeus39
amadeus39's picture

Any chance of telling us the hour and day on which the collapse will occur? Ok, to keep it simple, in what century will it occur? Are you still making money with your forecasts?

 

Wed, 11/18/2015 - 12:24 | 6809203 KnuckleDragger-X
KnuckleDragger-X's picture

They CAN make it worse though......

Wed, 11/18/2015 - 13:41 | 6809642 JRobby
JRobby's picture

They ARE making it worse. GDP has been collapsing, the rate of collapse is accelerating.

Wed, 11/18/2015 - 16:36 | 6810420 TheRideNeverEnds
TheRideNeverEnds's picture

Looks like this time is different. Instead of the market going down due to collapsing fundamentals it is surging higher.

Wed, 11/18/2015 - 15:28 | 6810082 Stuck on Zero
Stuck on Zero's picture

"... they’ve used up all of their ammo in the last six years trying to create  recovery."

No they haven't.  They've used up all their goodwill stealing from the people.

Wed, 11/18/2015 - 22:51 | 6811906 DontWorry
DontWorry's picture

"... they’ve used up all of their ammo in the last six years trying to create  recovery."

You aint seen nothing yet.

Thu, 11/19/2015 - 00:13 | 6812071 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

They can print ammo. When thet are done printing ammo, gold will be king!

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