The Debt Bubble Will Be The Biggest Threat To Central Banking In 2014
Although many astrologers remain bullish and optimistic on the American economy and the so-called Recovery (what Recovery?), on Friday the Dow dropped about 150 points on Friday and 5% for the month for the worst January since 2009. The S&P 500 dipped about 3.5% for the month, and the Nasdaq fell nearly 2% at 4:12 pm EST on the Wall Street Exchange.
Keep in mind that the Federal Reserve pulled a bit of a surprise this week by cutting back on the bond buying program event though its STILL pumping out $65 billion a month propping up the economy WHILE artificially holding down interest rates. However while doing so recent news revealed a big UPTICK in unemployment and FALLING home sales.
But what I believe is really getting investors and the smart-money folks are nervous about the 800 Pound Gorilla in the plush and opulent “Wall Street” living room – the rapidly growing debt bubble that could implode the economy and send the world into a depression. It seems clear that both parties are in denial about how bad the economy really is. The Fed is still pumping out $65 billion a month. Former Bear Sterns commodities trader and strategic investor Greg Mannarino has stated that the Federal Reserve is desperately trying to prop up the stock market by driving money back to the U.S. from emerging markets. Another world-class investor with an outstanding track record Doug Casey, says the bond bubble is the big problem, and that and it is only a matter of time until it pops.
Even the World Economic Forum is warning about the exact same thing…
Fiscal crises triggered by ballooning debt levels in advanced economies pose the biggest threat to the global economy in 2014, a report by the World Economic Forum has warned.
Ahead of next week’s WEF annual meeting in Davos, Switzerland, the forum’s annual assessment of global dangers said high levels of debt in advanced economies, including Japan and America, could lead to an investor backlash.
This would create a “vicious cycle” of ballooning interest payments, rising debt piles and investor doubt that would force interest rates up further.
To add to this, former World Bank Chief Economist Justin Yifu Lin said this week, “Dominance of the greenback is the root cause of global financial and economic crises.” He also says the dollar should be “replaced” as the reserve currency. If that happens, which I predict that it will, interest rates would shoot up much higher along with inflation in the U.S., and those MYRA bonds the President wants Americans to buy would IMPLODE!
It clear that the epic Central Bank rigging over the past five years that has been propping up a bankrupt financial system by printing money will only last so long, and likely come to to an tragic end much soon then anyone expects.
As we enter into the mid-cycle of the Uranus-Pluto Square alignment, the collective archetypal power of titanic change signified by the Cardinal Square in Spring 2014 augurs growing geopolitical volatility and a rapidly changing interest rate environment that will have a direct impact on the global financial system and governments throughout the world, that will lead to a critical “reconfiguration event.”
Keep in mind, very few financial pundits and “experts” from the mainstream media will ever see this crash coming. Very few of them saw it coming in 2000. Very few of them saw it coming in 2008. And very few of them will see it coming again in 2014.