Today’s stock market is in a super bubble, built on the back of the largest bubble the world has ever seen: the debt market MEGA-BUBBLE.
What does this mean? Should we be expecting a stock market crash sometime in the immediate future?
No.
That’s because the Federal Reserve, as well as central banks around the world, are in the middle (the middle, not the end, mind you) of a debt expansion cycle of epic proportions.
Last week, Bank of America published a report stating that world central banks are buying $1.6 billion dollars’ worth of assets every single hour, 24 hours a day, and they have been since March of this year. Now, this is what they are allowing us to know; the real numbers are multiples higher!
What the Bank of America report does not explain are the layers of dollar derivatives associated with the $1.6 billion in asset purchases at face value. Every dollar of debt at face value is followed up with layers of associated derivative bets, sometimes as many as nine layers. Derivatives are side bets, and each subsequent derivative has yet another layer underneath. Bottom line is that these numbers are staggering and, frankly, unknowable, as many of these derivative “bets” are done “over the counter,” meaning there is no way to track them.
The literal ballooning of central banks’ balance sheets, none more so than the Federal Reserve’s, is putting pressure on fiat currencies around the globe, and it is causing massive distortions regarding the price action of assets across the spectrum. Distortions that will get monumentally worse.
Everything you are seeing today is BY DESIGN. From the shutting down of the global economy to the devaluation of currencies and the current stock market super bubble.
Globally, we are witnessing the deliberate creation of a two-tier society of extreme haves and extreme have nots – in essence, a slave society ruled and governed by the 1 percent.
MARKET FORECAST: The stock market super bubble will continue to inflate along with the Fed’s balance sheet. And, again by design, it will be the Federal Reserve which will rapidly deflate the stock market super bubble, at a time of their choosing.
A deflating of the stock market super bubble is the final stage in the creation of this new two-tier society. A massive and unprecedented legal theft will occur, moving cash from the multitudes invested in the stock market, 401K plans, and the like to the 1 percent.
by Gregory Mannarino, TradersChoice.net
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