Back in mid-January, Grant Williams, Mike Maloney, Charles Hugh Smith, Chris Martenson and I sat down for an in-depth discussion on the dangerous distortions to financial markets and the global economy that central bank intervention is causing.
That video, titled WTF: What The Fed?!? was released soon after the US Federal Reserve had added $200 billion dollars to its balance sheet in Q4 2019. At the time, we worried so much liquidity being added to the system so quickly could recklessly exacerbate the extreme overvaluations in the markets, and further increase the instability of our over-indebted economy.
Little could we have guessed that a global pandemic would soon ensue, one that has seen the central banks collectively flood the world with an additional $4 trillion so far, with (much) more anticipated to come. Sure makes that $200 billion look pretty tiny now
So, if this group of experts was highly concerned about systemic risk pre-coronavirus, what are they thinking now?
$Trillions in new fiat currency printed in less than 2 months. Over 36 million jobs lost. A Q1 GDP drop of -5% and a predicted Q2 drop of -42.8%. And thats just in the US alone.
These are historically unprecedented developments on a Great Depression-level scale.
The impact of the economic production loss triggered by covid-19 will be painful and with us for years. How bad will it get? What should we expect next? And why are the current prices of financial assets so divorced from the reality of the destruction to the economy?
For these answers and more, after watch this 80-minute discussion -- the best current conversation you'll find on this topic on the Internet.
We know that there "AIN'T NO MONEY" only debt. That being said, those holding bonds and other derivatives based upon debt must be somewhat concerned that they are in very deep water and may not know how to swim !
"And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
The best thing about old age is that it doesn't last forever.