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Frank discusses his experiences in the late 1970s in that bull market

the Bond Market’s called the Fed’s ‘rosy outlook’ bluff.

"Making matters worse – not only are foreigners not buying as much U.S. debt. But the current top overseas holders – China and Japan – are actually selling their U.S. government bonds."

"Mr. Cordier fell for the Turkey on Thanksgiving problem – a concept created by former trader-turned-philosopher Nassim Taleb.

"The Fed’s ‘healthy economy’ rate hikes are going to tip the fragile world economy into the next recession. . .

This is what we call the Fed’s Paradox."

Monetary policy is largely responsible for the market conditions we have today.

"It’s the ‘second-level thinkers’ job to find those 5-10% opportunities and exploit them."

"Suddenly and artificially raising short-term rates – which the Fed does when they hike – disrupts the current equilibrium."

"We see that during large market drops – the price of gold increases enough to offset any losses."

These Emerging Market governments and corporations have massive amounts of dollar-denominated debts maturing over the next three years

"Many know that during the years of low-interest rates and easy credit – asset prices rise. But for some reason, many forget that during periods of rising rates – asset values decline."

"It looks like the mainstream’s finally catching on to the idea of an upcoming global earnings recession."

The problem is that the world created much more debt than the Fed’s created dollars. 

"Very soon the U.S. will be borrowing huge amounts of new debt just to simply pay the interest due on old debt "

"It gets very dim when we add everything up. . . I can almost hear the noise of a sponge sucking up all this liquidity."