The Next Crisis Will Be THE Crisis

Phoenix Capital Research's picture

For six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis.


All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. If the below chart was a problem BEFORE 2008… there is no way that things are better now. After all, we’ve just added another $20 trillion in debt to the US system.


However, there is an AWFUL lot of money at stake in believing these lies. So the media and the banks and the politicians were happy to promote them. Indeed, one could very easily argue that nearly all of the wealth and power held by those at the top of the economy stem from this fiction.


So it’s little surprise that no one would admit the facts: that the Fed and other Central Banks not only don’t have a clue how to fix the problem, but that they actually have almost no incentive to do so.


So here are the facts:


1)   The REAL problem for the financial system is the bond bubble. In 2008 when the crisis hit it was $80 trillion. It has since grown to over $100 trillion.


2)The derivatives market that uses this bond bubble as collateral is over $555 trillion in size.


3)Many of the large multinational corporations, sovereign governments, and even municipalities have used derivatives to fake earnings and hide debt. NO ONE knows to what degree this has been the case, but given that 20% of corporate CFOs have admitted to faking earnings in the past, it’s likely a significant amount.


4)   Corporations today are more leveraged than they were in 2007. As Stanley Druckenmiller noted recently, in 2007 corporate bonds were $3.5 trillion… today they are $7 trillion: an amount equal to nearly 50% of US GDP.


5)   The Central Banks are now all leveraged at levels greater than or equal to where Lehman Brothers was when it imploded. The Fed is leveraged at 78 to 1. The ECB is leveraged at over 26 to 1. Lehman Brothers was leveraged at 30 to 1.


6)   The Central Banks have no idea how to exit their strategies. Fed minutes released from 2009 show Janet Yellen was worried about how to exit when the Fed’s balance sheet was $1.3 trillion (back in 2009). Today it’s over $4.5 trillion.


We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work.  They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.


The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail.


If you’ve yet to prepare for a bear market in stocks 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 100 copies for FREE to the public.


To pick up yours, swing by:


Best Regards


Graham Summers

Chief Market Strategist

Phoenix Capital Research







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adanata's picture



The president has no direct authority over this bloodsucking private corp [the Fed] and Trump will not work well with CONgress; not to mention the fact most of those miscreants are Liaryers and don't know anything about economics. They were essentially blackmailed by the Fed/global central banking/Wall St into tarp. They really didn't know what they were doing; not that they cared particularly.

However, IMO, if Trump is elected it will be as a populist; to have any effect he will have to come back to the Sheeple/People over and over and explain what is and is not being done and why. Only if the Sheeple/People back him up can there be any traction whatsoever vs TPTB.

We'll see....

hungrydweller's picture

Tic toc goes Graham's broken clock.

The Real Tony's picture

2008 was just a prelude to the shape of things to come.

One-Eyed-Thong's picture
One-Eyed-Thong (not verified) Mar 22, 2016 4:14 PM

clinton will bail them out

trump will not



that is the crisis

JRev's picture

Congress issued TARP.

The President has zero authority over the Fed's activities.




There is no crisis. Just more theater.

Setarcos's picture

I forgive the "100 free copies" this time around.  Good summary I think.

Theonewhoknows's picture
Theonewhoknows (not verified) Mar 22, 2016 3:56 PM

Just check out exposure of DB in Derivatives market

and then check the what ECB is doing and tell me we are not in big truble