By Gregory Mannarino, TradersChoice.net
The stock market has become a hyper-bubble that is being artificially and grossly overinflated. The current debt market’s bubble is its biggest yet.
If you refer back to my previous articles for the Trends Journal (my first was in the 30 March 2020 issue), many have a common theme:
We are existing in a deliberately engineered, extreme multi-bubble environment being fueled by a runaway central bank, the Federal Reserve. The Fed is on a mission to BUY IT ALL to become the lender and buyer of last resort.
Since the creation of the Federal Reserve in 1913, they have had this single goal in mind. Not without COVID’s shutting down of the world economy could the mechanism of the Fed’s “buying it all” be pulled off.
The shutting down of the world economy has halted the flow of cash moving through the economies, which has allowed central banks to work in concert to inflate.
The mechanism of easy money being pumped into a dead global economy has inflated the biggest stock market bubble in history, but the real meltdown in the markets will begin in the debt market. A debt market meltdown will foster a massive crash in world stock markets, which will result in a wealth transfer on a truly epic scale.
We are already amid stock market theft on an unimaginable scale. For over a decade, artificially-suppressed rates have robbed savers (legally) of trillions of dollars in realized wealth. Thus, the Fed has no intention of stopping this mechanism. It is any surprise that the gap existing today between the rich and the poor has never been greater?
As I have explained in previous articles for the Trends Journal, we are in the midst of a total wipeout of the middle class and a step back in time to a feudal system.
The fact is that none of what we are witnessing in the markets is sustainable, nor is it meant to be sustained. What we will see is a debt market implosion by design, which will precede the biggest stock market crash of all time… followed by a massive legal transfer of wealth.
Most people have no idea that more money is made faster when markets fall. Most are stuck in investment vehicles that only make money when the stock market rises, and, by design, that is a trap. Investment banks, hedge funds, and traders all take full advantage of two factors that drive asset prices: FEAR and GREED. Fear is stronger.
When stock prices are driven by fear, as would be the case in a stock market freefall, investment banks, hedge funds, and traders all “short the market.” Shorting the market is a mechanism in which money is made rapidly by betting against asset prices.
With today’s stock market in a hyper-bubble, when the markets’ day of reckoning occurs, the vast majority, who own investments that only make money when the market rises, will be wiped out.
Meanwhile, those who will be taking advantage of the fall in asset prices will take it all, legally, by shorting the market.
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