Economic collapse is not an event - it is a process. I’ve been saying this since the initial 2008 crash, and I suppose I will keep saying it until it burns into people’s minds because I don’t think that it is a widely understood concept. When alternative analysts talk about financial collapse, we are not talking about something that suddenly happens out of the blue, we are talking about an ongoing decline that occurs in stages. This decline is happening today in the U.S. and around the world, and it has been accelerating since the chaos of 2008. When we bring up the reality of collapse, we are referring to something that is happening NOW, not something waiting on the distant horizon.
The reason why some analysts can see it and others cannot is most likely due to the delusions surrounding market bubbles. These fiscal fantasy worlds are artificially created by central bank intervention and represent an attempt to mislead the populace on the true health of the system - for a limited time. People with foresight see beyond the false data of the bubble to the core economic reality; other people see only the bubble and nothing else.
When it comes to stock markets, bond markets, forex markets and the general casino economy, much of the public has a terrible inability to look beyond the next month let alone the next year. If the markets appear good now, the assumption is that they will always be good. If the central banks have intervened for the past 10 years, the assumption is they will intervene for the next 10 years.
There is no accounting for why the bubble exists in the first place. That is to say, many people including most economists do not consider that these bubbles serve a particular purpose for the banking elites and that this purpose has an expiration date. All bubbles collapse, and the reasons why they collapse are observable and predictable.
Still, the delusion persists that all this talk of “collapse” is simply “doom and gloom,” an event that might happen many years or decades from now, but it’s certainly not a threat taking place right in front of our faces. I attribute this misconception to several popular fallacies and propaganda arguments, and here they are in no particular order…
Fallacy #1: Central Banks Will Continue To Prop Up Markets Indefinitely
The newest generation of market traders and economists were still in high school and college when the 2008 crash hit equities. For the entirety of their careers, they have experienced nothing but an artificial economy supported by ongoing stimulus from central banks. They know of nothing else and know little of history, and thus they cannot fathom the possibility that central banks will one day pull the plug on their fiat life support.
Fallacy #2: Central Banks Will Never Stop Stimulus Measures
I’m not sure why this fantasy persists despite all evidence to the contrary, but it does.Even today, I still receive letters from people arguing that the Fed will “never” end stimulus, never raise interest rates and never cut their balance sheet. Yet, this is exactly what is happening.
This month Fed Chairman Jerome Powell ended all speculation on the matter when he indicated that the Fed would not only continue raising rates up to the neutral rate (where interest meets inflation), but that they could continue raising rates well beyond that. The blind faith based market is truly over.
Fallacy #3: The Fed Will Return To Stimulus Japanese-Style
This is a very common claim designed to build false hope in markets. Bull rally hucksters and their followers have become so used to the easy life of “BTFD!” (Buy The F#$&ing Dip!) that they will apply any rationalization no matter how absurd in order to keep the fantasy going.
The claim is that because Japan’s stimulus measures have been “successful” in keeping their markets afloat for at least two decades, this is the most likely strategy for the Fed and other central banks as well. What these people have not considered, though, is the speed at which Japan’s central bank bought up assets versus the speed that the Fed has bought up assets.
Fallacy #4: The Fed Can Hyperinflate Markets Perpetually
This is the last-ditch delusion used by stock market addicts and disinformation peddlers to assert that the current bubble can and will be propped up for many years to come, even after the rest of the economy is in dire regression.
In the U.S. for the past decade we have already witnessed our period of inflation in stock prices. Now, the central bank is collapsing the bubble, just as they did in Weimar Germany, just as they did here in the U.S. during the Great Depression as Ben Bernanke admitted in 2002, just as they have done in every market bubble for the past century.
I predicted in February of this year in my article 'Is A Massive Stock Market Reversal Upon Us?'that the early stock market drop would be followed by a period of mindless exuberance and a market bounce (which is what happened this past summer), followed by a return to an extreme stock plunge in the last quarter of 2018. This seems to be occurring now.
There is no eternal market bubble. There never will be. If not for the reason that economic fundamentals make it impossible, then for the reason that crashing these bubbles benefits globalists and banking elitists.
The goal? I believe the goal is to consolidate total power over production and labor using the deliberate institution of a poverty-based civilization. Beyond that, the goal is to make the populace perpetually desperate to the point that they are socially malleable. In order for the bankers to establish what they call their “New World Order,” they need chaos to tenderize the masses, but they also have to be seen as saviors that deserve to be in a position of authority over the global economy. They need to create disasters so they can then ride in on their white horse and save us from those disasters.
Why would central banks continue to perpetuate market bubbles when the destruction of those bubbles gives them opportunities for greater power?
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