Are Central Bankers Going to Intentionally Crash the System?

Phoenix Capital Research's picture

Since 2007, the world has packed on a truly staggering amount of debt.  That year (2007) is now commonly referred to as a debt bubble. And at that time, global debt was $149 trillion.

Today, 10 years later, it stands at $217 trillion.

Put another way, the world has packed on another $68 trillion in debt since the last debt bubble. In terms of Debt to GDP, the world has risen from 276% in 2007 (an already insane amount) to 327%.

Why does this matter?

Because this debt was built on the back of low interest rates.

In the last 10 years, bond yields have fallen dramatically thanks to endless Central Bank intervention.

In the US, Treasuries hit all time lows.In Europe and Japan, sovereign bond yields actually went to ZERO or even negative as far out as 10 years.

So we have a massive debt bubble based on interest rates remaining at or near record lows…

This is a $217 TRILLION bubble in search of a needle. And unfortunately for the financial world, Central Banks have just that.

Globally, Central Bankers have sent a clear message: the cost of money, AKA bond yields, is going up.

Global central bankers are coalescing around the message that the cost of money is headed higher -- and markets had better get used to it.

Just a week after signaling near-zero interest rates were appropriate, Bank of England Governor Mark Carney suggested on Wednesday that the time is nearing for an increase. His U.S. counterpart, Janet Yellen, said her policy tightening is on track and Canada’s Stephen Poloz reiterated he may be considering a rate hike.

Source: Bloomberg.

Let’s break this down…

The world is sporting a Debt to GDP ration of 327%.

All of this debt was issued at a time when bond yields were FALLING.

Central Bankers now want bond yields to RISE.

Are these people TRYING to crash the system?

A Crash is coming…

And smart investors will use it to make literal fortunes.

We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It's called Stock Market Crash Survival Guide.

We made 1,000 copies to the general public.

As I write this, only 53 are left.

To pick up one of the last remaining copies…

CLICK HERE!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

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gdpetti's picture

Well, it is rather normal to 'pull the rug out', unless war is a more favorable option of 'internal regime change'... aka, clear the slate for a reset, only this time Mother Nature is coming in for a complete 'cleansing' herself... not the little cycles that take down kingdoms and empires, but more like the one we know as the end of the last ice age... and interesting that a new one has been expected since the late 70s... remember that Newsweek article? remember how the establishment trotted out one of those scientists to say he didn't mean it? What did they warn about as a trigger? A period of 'global warming'... which ended when the infamous Al Gore came out with his propagandistic 'Inconvenient Truth', which is really the reverse, typical as propaganda goes... same with our CBs... the system as is, won't be much longer, nor the entire puppet show the CBs represent. So, of course, they have been ordered to crash it... they need the negative charge to push their agenda going into the NWO... which they hope to maintain control over.... tunnel vision.. same as any addiction.

LawsofPhysics's picture

Sure, sure, doesn't this assfuck know that debt doesn't matter...

Jackagain's picture

Money IS debt. This added debt is just more printed money put in the system.

VWAndy's picture

 They dont really crash it so much as they run people over with it. In 08 it was more like a hit and run kinda thing.

Conax's picture

Worse, they dragged the victim out of the street and shook him down for a trillion dollars to fix the dents in their car.

Honest Sam's picture

No. 

 

Sorted.

William Dorritt's picture

The name of the game is planned collapse and consolidation of Wealth and Assets.

 

Look at the Land purchases by the Oligarch Class

Macavity's picture

Aye. Where to look? Seriously, I want resources.

Grandad Grumps's picture

Privately owned central banks and the owners of those banks are the only ones who can crash the system and the only ones who can decide not to crash the system. Whatever happens, it is their fault.

decentralisedscrutinizer's picture

 

Why waste time on this alligator when the swamp’s most critical economic and political problems revolve around the hegemony of a global corporate cartel, which is headquartered in the US because this is where their dominant military force resides. The US Constitution is therefore the “kingpin” of an all-inclusive global financial empire. These fictitious entities now own the USA and command its military infrastructure by virtue of the Federal Reserve Corporation, regulatory capture, MSM propaganda, and congressional lobbying.

 

The Founders had to fight a bloody Revolutionary War to win our right to incorporate as a nation – the USA. But then, for whatever reason, our Founders granted the greediest businessmen among them unrestricted corporate charters with enough potential capital & power to compete with the individual states, smaller sovereign nations, and eventually to buy out the USA itself. The only way The People can regain our sovereignty as a constitutional republic now is to severely curtail the privileges of any corporation doing business here. To remain sovereign we have to stop granting corporate charters to just any “suit” that comes along without fulfilling a defined social value in return. The "Divine Right Of Kings” should not apply to fictitious entities just because they are “Too Big To Fail”. We can't afford to privatize our Treasury to transnational banks anymore. Government must be held responsible only to the electorate, not fictitious entities; and banks must be held responsible to the government if we are ever to restore sanity, much less prosperity, to the world.

 

It was a loophole in our Constitution that allowed corporate charters to be so easily obtained that a swamp of corruption inevitably flooded our entire economic system. It is a swamp that can't be drained at this point because the Constitution doesn’t provide a drain. This 28th amendment is intended to install that drain so Congress can pull the plug ASAP. As a matter of political practicality we must rely on the Article 5 option to do this, for which the electorate will need overwhelming consensus beforehand. Seriously; an Article 5 Constitutional Convention is rapidly becoming our only sensible option.

 

This is what I think it will take to save the world; and nobody gets hurt:

 

28th Amendment:

 

Corporations are not persons in any sense of the word and shall be granted only those rights and privileges that Congress deems necessary for the well-being of the People. Congress shall provide legislation defining the terms and conditions of corporate charters according to their purpose; which shall include, but are not limited to:

 

1, prohibitions against any corporation; a, owning another corporation; b, becoming economically indispensable or monopolistic; or c, otherwise distorting the general economy;

 

2, prohibitions against any form of interference in the affairs of; a, government, b, education, c, news media; or d, healthcare, and

 

3, provisions for; a, the auditing of standardized, current, and transparent account books; b, the establishment of state and municipal banking; and c, civil and criminal penalties to be suffered by corporate executives for violation of the terms of a corporate charter.

    

GreatUncle's picture

If you figure the whole world is a Keynsian bubble ... the CB's intentionally grew the debt far faster than what they call growth (inflation) in the global economy.

Japan is where this is all heading unless you can start growing growth faster than debt to reverse it, not a chance ... that mechanism burns the real economy.

It would also be the recession / depression on an apocalyptic scale globally.

GreatUncle's picture

They would never allow it, to do so as an elite is to turn yourself into a pauper.

OCnStiggs's picture

Unless they know the crash in inevitable, if not engineered -AND, they have a lifeboat to get their fortunes through the financial storm.

Central banks and wealthy folks are loading up on gold for a reason....

U4 eee aaa's picture

....and put options and they will buy the stocks for pennies on the dollar just like Joe Kennedy did after the crash of '29

Creative_Destruct's picture

"The world is sporting a Debt to GDP ration of 327%.

All of this debt was issued at a time when bond yields were FALLING.

Central Bankers now want bond yields to RISE.

Are these people TRYING to crash the system?"

Pretty well connects the obvious dots.