When This Debt Bubble Bursts, Central Banks Will Turn to Money Printing... Again

Phoenix Capital Research's picture

Let’s face the facts.

The only reason the financial system has held together so well since 2008 is because Central Banks have created a bubble in bonds via massive QE programs and seven years of ZIRP/NIRP.

As a result of this, the entire world has gone on a debt binge issuing debt by the trillions of dollars. Today, if you looked at the world economy, you’d find it sporting a Debt to GDP ratio of over 327%.

Well guess what? The REAL situation is even worse than this. The Bank of International Settlements (the Central Banks’ Central Bank) just published a report  revealing that globally the financial system has $13 trillion MORE debt hidden via junk derivatives contracts.

Global debt may be under-reported by around $13 trillion because traditional accounting practices exclude foreign exchange derivatives used to hedge international trade and foreign currency bonds, the BIS said on Sunday.

Source: Yahoo! Finance.

As has been the case for every single crisis since the mid’90s, the problem is derivatives.

Consider that as early as 1998, soon to be chairperson of the Commodity Futures Trading Commission (CFTC), Brooksley Born, approached Alan Greenspan, Bob Rubin, and Larry Summers (the three heads of economic policy) about derivatives.

Born said she thought derivatives should be reined in and regulated because they were getting too out of control. The response from Greenspan and company was that if she pushed for regulation that the market would “implode.”

Fast-forward to 2007, and once again unregulated derivatives trigger a massive crisis, this time regarding the Housing Bubble

And today, we find out that once again, derivatives are at the root of the current bubble (debt). And once again, the Central Banks will be cranking up the printing presses to paper over this mess when the stuff hits the fan.

Already, Central Banks are printing nearly $180 billion per month in QE. When the next crisis hits, it’s going to be well north of $250 billion if not $500 billion per month.

This is going to send inflation trades, particularly Gold, through the roof.

If you’re not taking steps to actively profit from this, it’s time to get a move on.

We just published a Special Investment Report concerning a secret back-door play on Gold that gives you access to 25 million ounces of Gold that the market is currently valuing at just $273 per ounce.

The report is titled The Gold Mountain: How to Buy Gold at $273 Per Ounce

We are giving away just 100 copies for FREE to the public.

As I write this, there are 19 left.

To pick up yours, swing by:


Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research



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MrBoompi's picture

Good news....they print money   Bad news....they print money   No news....they print money  Stop printing and things go bad, very quickly.  Just accept the fact this is how things are done.

shutterbug's picture

The money printing NEVER stopped.... update your facts a.s.a.p.

This economic and monetary system is completely broken and just a few gain many millions or billions from that, by design.

But people are zombies and don't want to know.... it's hard when reality doesn't match your favorite fantasy.

libertyanyday's picture

TPTB have been allowing btc to trade like tulips while ensuring that no one invests in pm's or miners...........which one is feared to become money again once all confidence in fiat is gone ??

ShorTed's picture

they don't have paper crypto yet that the can settle in their worthless fiat (unfortunately like PMs).  If crypto futures become mainstream, the manipulation will extend to them as well.

Goldennutz's picture




Never One Roach's picture

I have to agree with the author. The number and amounts of impending defaults are 5-10 times bigger then 2008.


The amount printed will be 5-10 greater at least also. Gold will most likely see new highs, perhaps $3,000/oz.

Anon2017's picture

The Gold Mountain: How to Buy Gold at $273 Per Ounce. This sounds like a real scam.

Lets Buy The Dip's picture

these charts will shock you too, on how to make off with money if this happens. And with north korea saga the aero space sectors are taking off

SEe here ==> http://www.bit.ly/2w53yFS

JailBanksters's picture

What do mean: Printing money again

The Feral Reserve have never stopped creating money since 1913

It creates money every single day, it's loaned into existance, with Interest that also has to be loaned into existance.

The only additional bullshit they do in desperate times, is buy back their Banker Buddies stuff they bought that's junk.

Or they loan money to the Banks, then the Banks park that money back at Feral Reserve where they pay more Interest to park the Money than they do to loan money into existance. In other words, making money from the making of money, which in a round about fashion is paid for by the Public.



s2man's picture

Oops.  I accidentally clicked on a Phoenix article.

ali-ali-al-qomfri's picture

We shouldn't fear rising water as much as rising paper.

Death by QE (a billion cuts).

ToSoft4Truth's picture

The Fed has been using the presses since Andrew Jackson. 


Jackson was nominated for president, July 1822.


Harriet Tubman was born in 1822.

corporatewhore's picture

It's not necessarily the printing of fiat but the loss of confidence that will do the trick.  In the end it doesnt matter.

fx's picture

BEFORE this debt bubble bursts, central banks will turn on money printing again.

There, fixed it for you, Graham.

Kidbuck's picture

Since 1913 when have they ever turned it off?

Jimbeau's picture

The way I read this, TPTB will be getting their wish to ditch cash.
Maybe we'll need wheelbarrows...

ShorTed's picture

Last time ('08 - '09) we were warned of printing and inflation gold managed to make a run up to 1800ish before the official crushing began.  Is that the new definition of, "through the roof"?

Erek's picture

"When this debt bubble bursts, Central Banks will turn to money printing... again"

Or they will invent their own kind of BitCoin.