SUPER-MELTDOWN: DEBT MARKET TIME BOMB

I believe a market Super-Meltdown is on its way, and it will begin in the debt market.
Why? First, let’s cover some current events. In the past two weeks, the stock market has broken several all-time record highs, and both the S&P 500 and the NASDAQ are now in record territory.
This plays right into my last article, FORECAST: MELT-UP, CRASH-DOWN. We are now in a “melt-up” phase in the stock market. The disconnect is clear: we are in an economic free-fall, yet stocks are rising.
Recently, we heard from the Federal Reserve, which is promising to allow inflation to “run hot.” They are prepared to vastly increase their money creation out of thin air and keep rates low indefinitely. Moreover, the Fed is considering making direct payments to corporations that have been affected by COVID-19. Yes, the same corporations that have been buying back shares of their own stock for over a decade. Yes, the same corporations in which the Federal Reserve is buying their debt. The merger of corporations and the new American government is nearly complete.
Benito Mussolini, a man who had a clear understanding of Fascism, said this: “Fascism should more properly be called corporatism, since it is the merger of state and corporate power.”
The fact that the Federal Reserve is going to massively increase its money printing and asset purchases is, in turn, massively stock-market positive. The Fed is determined to vastly increase its debt – to be the lender and buyer of last resort – to own it all. This has been its goal since its creation in 1913, and it is becoming realized via today’s scamdemic.
The Fed’s artificial suppression of rates requires them to keep buying debt. They cannot just “say” they are going to keep rates low – they must create cash out of thin air and buy the debt. The affect of this is rate suppression.
By free-market forces not being allowed to work in the debt market, a monster bubble has manifested itself… and this assures one thing: a giant snap-back will occur at some point.
Debt Market Snap-Back
Market forces are enormous, and no amount of rigging in any aspect of the market can go on forever. They can persist for exceptionally long periods of time, however, but there is always a time where asset values correct to fair value, and this will happen in the debt market.
As time goes on and the Federal Reserve continues to rig the debt market, massive distortions occur and get exponentially worse. The main result of artificially suppressed rates is the manifestation of a stock market hyper-bubble and also a bubble in real estate prices.
Rate suppression will result in a “snap-back” of rates to fair value, resulting in a massive sell-off in the debt market.
A massive and rapid sell-off in the debt market will cause rates to spike in an uncontrolled manner, which will put enormous pressure on both the stock market and real estate values. This will result in a SUPER-MELTDOWN of the entire financial system worldwide, and… get this… there will be no way to stop it.
Stay tuned for further market updates both here and in my blog, TradersChoice.net
 by Gregory Mannarino