DEATH OF THE SYSTEM: UNLIMITED BOND BUYING

By Gregory Mannarino, TradersChoice.net

This week central banks, beginning with the European Central Bank, embark upon yet another round of debt market SUPER-RIGGING. This new round of debt market manipulation, ON AN UNLIMITED SCALE, is to further allow central banks to continue to inflate. Furthermore, to also push off, for now, an immediate lock up of the system. 

Just this past Friday it was Bloomberg who first broke the story of the ECB to begin UNLIMITED BOND BUYING, which reads as below.

“The European Central Bank will unveil an unlimited bond-buying tool next week to help markets better adjust to steeper and faster interest-rate increases.”

Look at the wording of the Bloomberg report/statement above. This unlimited bond buying TOOL is being sold as a way to “help the markets better adjust to steeper and faster interest-rate increases.” What is being left out of this report is this: an unlimited bond buying move by the ECB, which will be followed up by the Federal Reserve, IS MASSIVELY INFLATIONARY. 

Moreover, this announcement by the ECB sparked a stock market rally on Wall Street last Friday. Unlimited bond buying is massively stock market positive, as it further artificially suppresses rates therefore fostering a “risk-on” environment—and subsequently cash makes its way back into equities/stocks.

Understand… at its core the global financial system is rapidly becoming illiquid, that is for the current debt-based system to function, debt must unrelentingly be added to the system exponentially. 

The literal nanosecond that a single dollar of debt is not added to the system, the system itself dies. 

Death of the current financial system will result in a “locking up” of the entire system, and ALL TRANSACTIONS STOP.

Not only do all transactions stop, but people will lose their ability to access any of the cash in their bank accounts, savings accounts, checking accounts, money markets, annuities, stock portfolios, CD’s, etc.

Inter-business lending also stops. The result will be pandemonium in the streets. People will then look to the same entities who allowed this to happen, by design, for help—and out of the ashes a new system will be introduced—a system of extreme control.

The current debt based economic model is dying by design, and this can be easily seen by simply observing the current action of central banks— and unlimited bond buying is a BIG tell. 

There are other ways as well to see that the system is dying.

The Federal Reserve is deeply engaged in a scheme where it moves VAST amounts of debt overnight between institutions. This REPO, or “repurchasing agreement,” moves TRILLIONS of dollars back and forth between institutions in an effort to “trick the system” into thinking that there is more liquidity in the system than there actually is.

The current global financial system is insolvent, and without constantly fueling it with vast amounts of more debt, the current system dies. And it is dying now.