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Why QE will never induce consumers to spend and is in fact DE-flationary.

Put another way, the financial landscape is now so screwed up by the Central Planners, that investors are actually INCINERATING their money by lending it to Governments.

And against this disatsrous backdrop… investors are completely bullish!

This is true going back even to 1870.

The Fed may engage in a symbolic rate hike... but we will not enter a truly hawkish period... not when the TBTFs have $551 trillion in interest rate based derivatives outstanding.

Put simply, corporate profits are at a record high relative to the economy… and they just began to roll over.

This situation will result in a Crash far larger than 2008. The markets involved are larger as is the risk and the leverage.

All of these are signs of a top forming.

The markets are primed for a very serious correction… possibly even a Crash.

The US Dollar took down Oil, commodities, even emerging market currencies. Stocks will be next. The first REAL sign that the 2008 Crash was coming occurred when the US Dollar began to skyrocket in the summer of 2008.

Between 2000 and today, the global bond market has nearly TRIPLED in size. Today, it’s north of $100 trillion in size. And it’s backstopping over $555 trillion in derivatives trades.

The Fed and other Central Banks are trying to maintain the illusion that they have everything in control by talking about interest rates, but the reality is that the US Dollar carry trade is ABOVE $9 trillion in size. That is almost as large as ALL of the money printing that occurred between 2009 and 2013.

This is why the Greek debt crisis continues without end. The minute Greek bondholders have to take a REAL haircut, the wheels come off the EU and the $100 trillion bond bubble finally blows up.

This is the short-term scenario. The longer-term scenario is that the market is prime for a sizable collapse.

The Fed has created a very very dangerous situation.