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By Gregory Mannarino TradersChoice.net
Anyone who is even remotely familiar with my work is already well aware of the fact that I believe the world today now exists under the threat of an implosion in the debt market—and this implosion will lead to an absolute WIPEOUT of global stock markets—and much worse. READ ON.
Let us first define what the debt market is…
The debt market is where debt securities are bought and sold, and these debt securities exist mostly in the form of bonds. The bond market is also known as the debt market, fixed-income market, or credit market.
Generally speaking, when people make reference to the debt market, they are speaking about trades, swaps, and the issuance of debt securities, which also normally include mortgages—which are then called mortgage-backed securities, (MBS).
The debt market also includes derivatives/bond futures. Bond futures are financial derivatives which are bought and sold on the open market and obligate the contract holder to purchase or sell a bond on a specified date at a predetermined price.
Debt instruments offer a fixed payment to the holder. Moreover, the debt market, at least in theory if managed correctly, is responsible for the proper functioning of world markets and the economy.
The absolute fact of the matter is this… the debt market today has become a weapon of mass destruction being HYPER-INFLATED by runaway central banks who continue to use the debt market as a method to inflate.
Capital ITSELF is a debt instrument. When a central bank issues currency, it is also known as credit and or debt. Every single printed bill or a digit simply added to a screen by a central bank is a unit of debt. These units of debt are OWNED by the issuing central bank and are OWED BACK TO the issuing central bank PLUS INTEREST! WHICH THE ISSUING CENTRAL BANK THEN CREATES OUT OF THIN AIR.
Every single day brings the world closer to THE MOMENT when a meltdown in the debt market WILL OCCUR. A debt market meltdown/implosion will cause bond yields to spike rapidly in an uncontrolled manner, and this in turn will put ENORMOUS pressure on the world’s stock markets which will then sell off very rapidly.
Credit/debt markets will LOCK UP and ALL transactions will stop. Result, THE GRAND FINALE! Total pandemonium in the streets around the world with people looking to the same entities which caused this to happen for help!
What we will then end up with is a global slave system exponentially worse than what we already have today—which is of course the very reason why the debt market hyper-bubble exists and continues to be expanded on. The emergence of a two-tier system of society including extreme haves, and extreme have nots, a feudal overlord system—a total wipeout of the middle class on a worldwide scale.
Are you ready?