Bubble Watch: The Bank of Japan is About to Shock the World

Phoenix Capital Research's picture

The Bank of Japan (BoJ) will RAISE rates in 2018.

And it’s going to collapse the stock market.

The #1 driver of the stock market is Central Bank money printing. In 2017 alone, the BoJ and the European Central Bank (ECB) have printed over $1.5 TRILLION and funneled it into the financial system.

The primary goal of this is to ramp stocks higher. But the consequence is that inflation has been unleashed.

We are getting signs of an inflationary shock throughout the world: in Germany, China, the US, the UK, and even Japan.

And this is a MASSIVE problem for the Bond Bubble.

Bond yields trade based on inflation. If inflation rises, bond yields will do the same. And when bond yields rise, bond prices COLLAPSE. And when bond price collapse, the bond bubble bursts.

And so the BoJ and other Central Banks now face a choice:

1)   STOP QE and money printing to try and halt inflation (thereby letting stocks collapse).

2)   Keep printing money, let inflation spiral out of control, bursting the Bond Bubble and triggering a deflationary crisis that will make 2008 look like a joke.

The choice is obvious: Central Banks will be tightening… at least temporarily.

Truth is most stock markets could drop 30% and still be in bull markets.

But if bonds drop… entire countries will go bust (think Greece in 2010).

Do you really think the US, Japan, China, and the EU could service their debt loads if rates were normalized? Collectively these countries have added over $20 trillion in debt since the 2008 crisis.

And ALL of this has been built on the back of the Bond Bubble. And because Bonds are the bedrock of the financial system, when they go into a bubble, EVERYTHING goes into a bubble.

This is why I coined the term The Everything Bubble in 2014. It’s also why I wrote a book on this issue as well as what’s coming down the pike: because when this bubble bursts (as all bubbles do) the policies Central Banks employ will make those from 2008-2015 look like a cakewalk.

Put simply: Central Banks will not risk blowing up the bubble in bonds. And so the money printing will be halted (for now) and stocks will be dropping.

The time to prepare for this is NOW before the carnage hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s to come when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

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mvenalli's picture

lol...phx "capital" is the sorcha faal of zh

honestann's picture

Of course these fictitious nations can "service their debt"... and they will.  They'll just keep printing up more and more fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-bits to "pay off" previous the fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-bits they borrowed == printed previously.

Why would anyone imagine in their wildest dreams this won't happen?

The entire western world (and allies) will go the way of Wiemar Germany and Zimbabwe.  Guaranteed.

If that wasn't their plan all along (meaning back as far as the 1990s or further), they would have behaved differently.

But they didn't.  And the "tell" that was so obvious that only intentional morons refused to see was... how the predators-that-be responded to the housing bubble and financial collapse.  At that point only intentional morons could avoid seeing the facts.

What some people didn't realize is... the following.  Once predators-that-be decide to run the system into the ground (while stealing and enslaving everything they can), they are free of many constraints (including "laws" and "regulations"), and can thereby make certain trends look opposite of what they actually are.  For example, they BLATANTLY LIED about statistics (unemployment, inflation rates, actual debt, and so forth).  They manipulated precious metals down and carried out other illegal measures to keep currencies looking relatively stable.  For example, since currencies are measured against other currencies (not real purchasing power), if the predators-that-be everywhere trash their currencies, the measures appear to indicate they are all relatively stable.  But this is just the tip of the manipulation iceberg.

For example, look how clever their inflation scam is.  I mean, above and beyond the fact the massively lie about inflation.  By misdirecting the vast majority of inflation into the pockets of rich folks, what happens?  Well, they don't buy more food and everyday goods, because they've always consumed as much food and everyday goods as they want.  So only a tiny percentage of the inflation shows up in goods that peons consume (and constitute most of inflation measures).  No, instead the massive loot flows directly into the assets of the rich... which are NOT considered part of inflation.

The western world (and "allies") are definitely on the way to destroying the people they control.  They'll all be rich, though, so they'll either live lives of the rich and famous... or if any justice exists at all, will be tarred, feathered and hung from lampposts.

Surely the stock market will contain pullbacks.  But ultimately they will generate massive returns in nominal terms... just like in Wiemar Germany then, and Venezuela now.

Eventually the best stuff to hold will be

#1:  Real, physical machinery and supplies that you operate to generate a never-ending flow of basic goods and goodies.

#2:  Real, physical materials that do not degrade (and will be needed to rebuild... assuming humans survive (not very likely)).

LawsofPhysics's picture

The situation is much, much simplier.

Producers versus consumers...

No system can survive that has more consumers than producers, period.

Maintain and control productive capital and real resources, period.

Some will have the resources and productive capital to survive well (good standard of living), most will NOT.

Hedge accordingly.

 

honestann's picture

Yup.  As a personal matter, the wise choice is to be a producer AND find ways to prevent predators and parasites from getting anything from you.

Yes.  The outcome will be one of the following:

1:  most humans die.

2:  all humans die.

vofreason's picture

Please stop saying you coined the everything bubble.  

And yeah,....where did you get this idea presented as fact that they are about to raise rates?

tangent's picture

I hope you guys are getting your gardens ready too next spring. I know I am. I think this can keep going clear until 2027. You have to hope for the best but plan for the worst.

JibjeResearch's picture

Fuck Bank of Japan...

Do what ever your want... and hurt your poor people....

Bwahahaha ahhaha....

SurlysonofaBitch's picture

If Phoenix Capital correctly predicted the pick-6 lottery numbers for the next 5 days, their all time prediction record would still be net losers.

AlphaSeraph's picture

BoJ raises rates = Japanese government goes bankrupt.

No one will meaningfully raise rates or stop QE until hyperinflation and/or total monetary reset with a new international system.

LawsofPhysics's picture

No they won't. Fuck off Graham.  Learn a tradable skill for fuck's sake you useless overcompensated paper-pushing fuck.

aliens is here's picture

So buy gold or bitcoin?

JibjeResearch's picture

have a little gold, lots of cryptos..., get fundamentally sound stocks, property...

Try to do "buy low, sell high" things..., but don't sell ..yet..

Stay/Stand still... don't move around too much...

It'll be a rollercoaster... enjoy the ride...

 

Do not have cash more than a year need...

Osmium's picture

Collapse the stock market?  Hmmm where have I heard that before...

 

There once was a shepherd boy who was bored as he sat on the hillside watching the village sheep. To amuse himself he took a great breath and sang out, "Wolf! Wolf! The Wolf is chasing the sheep!"

Oracle of Kypseli's picture

No explanation on this claim about BOJ raising rates. Sorry

Expendable Container's picture

Agreed. I don't see a collapse without the banksters taking us to war - they NEVER want the blame (especially this coming biggie!) so they create yet another war, just as they provoked Japan to respond in WWII here:

Excellent and interesting video interview in which the SGT REPORT interviews James Perloff on

"PEARL HARBOUR: ROOSEVELT'S 9/11 - James Perloff"

https://www.youtube.com/watch?v=9QJx9yuF6yQ