Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation, George Soros
- Fractional reserve banking allows banks to keep only a fraction of their deposits while lending out the rest with interest to other clients. Banks are therefore capable of loaning out money which they do not, in fact, possess (http://www.economicreason.com/). Banks create money by making loans based on this fraud (fractional reserve banking). It allows banks to make loans not backed by savings at artificially low-interest rates. It is inherently inflationary.
- You cannot taper a Ponzi scheme. From Powell’s unwavering stance on the “autopilot” process of quantitative tightening (Dec 2018) to ‘act as appropriate to sustain the expansion’ (Jun 4, 2019). Basically, there will be more QEs than Rocky Movies (Peter Schiff).
- You can’t print your way to prosperity.
- Fiat currency always eventually returns to its intrinsic value — zero!
- We are in a big fat ugly #bubble and trust me, all bubbles pop no matter what they say.
- Pensions are ‘decimated’ by low-interest rates, real assets are becoming mainstream.
- There is now more than 15 trillion dollars of debt with a negative yield. “Now, governments are essentially getting paid to borrow money, as people become increasingly desperate for a safe haven for their wealth,” cnbc.com. And what about a 100-year Austrian bond yielding 1.2%?
- Debt is a ticking bomb. “[Global] Debt rose by $3 trillion in the period (in the first quarter of 2019) to $246.5 trillion, almost 320% of global economic output” (https://www.bloomberg.com
- Maybe I am wrong… “A 100-Year Austrian Bond at 1.2%. What Fresh Madness Is This?” (Bloomberg.com) and “Danish bank launches world’s first negative interest rate mortgage. Jyske Bank will effectively pay borrowers 0.5% a year to take out a loan” (https://www.theguardian.com).