Grant Williams "pulls no punches" in this all-encompassing presentation as the "Things That Make You Go Hmmm" author reflects on what is behind us and looks ahead at the ugly reality that we will face when "the impurities of QE are finally flushed from the system." Central bankers of today have "changed everything" he chides, "in ways that will ultimately end in disaster." Following extraordinarily easy monetary policies across all of the world's central banks, Williams explains why "we are now near the popping point of the 3rd major bubble of the last 15 years," each bigger than the last. The only way Janet Yellen avoids being at the helm when this ship goes down is to blow an even bigger bubble than Bernanke's government bond experiment, "which is highly unlikely." From how QE works, why many don't "feel" wealthy anymore, to the fact that "the geniuses that gave this thing life, don't have the guts to kill it," Williams warns, ominously, "the bills have come due on the blissful latest 30 years."
Starting at around 2:30... Williams introduces the 'extraordinary' differences with today's crop of central bankers
[8]
5:30 The bubble blowing begins (and ends)
[9]
6:45 How QE Works and "why the geniuses that gave this thing life, don't have the guts to kill it."
7:45 Investing Now and Then
9:00 "The bills have come due on the blissful latst 30 years"
9:30 The implications for markets
[10]
11:00 BoJ specifics...
11:30 Why rotating from bonds to stocks is nuts - even though bonds are in a bubble
13:00 China is flashing red... "if you thikn that doesn't mean anything, then you're wrong"
14:00 Aussie macro and micro economics
18:30 Pension Funds disaster pending - return projections are entirely wrong
22:30 Central Deviousness
23:45 Where Does That Leave Us? - "The Taper is not going to happen in any meaningful way" - The US economy is simply not strong enough.
26:00 So What Do We Do
[11]
30:00 "Be Brave - Take your money out of the markets and go to cash."
31:00 "Once the impurities of QE are flushed from the system, we can go back to investing in a world that is understandable"
31:30 We've been here before...
[12]
"Returning to a world with which we are familiar is going to require either some real magic on the parts of Draghi, Kuroda, Carney, and soon to be Yellen; or some kind of tornado that sweeps away everything in its path and allows the world to build again from more solid foundations."