The Markets Are Giving Very Clear Signals that the End Is Nigh!

Never before has the world seen an explosive fire of this magnitude, fueled by uber-profligate money printing and credit expansion by central and commercial banks…[and] people desperate to just spend, spend, spend after a year of lockdowns and restrictions. 

…Explosive fires have started everywhere already. We are now at the end of a secular bull market in the world economy which on a global level has reached extremes never seen before in history. Stock markets are on fire and so are property markets, as well as bond and debt markets. The problem is that fires are initially explosive but always end up implosive [and,] right now, we are in the explosive phase of the fires with markets all going parabolically exponential (or should it be exponentially parabolic!).

…[Unfortunately,] explosive fires always end in everything burning down or imploding eventually and this is just what is going to happen in the next few years. A massive forest fire is not just totally inevitable but is also an absolute necessity.

The Ultimate of all Ponzi Schemes

Because economic bubbles consist primarily of air and lots of it, when countries run out of money all they have to replace it is air to keep the economy going and that air consists of false promises combined with lots of air in the form of trillions of dollars (fake money) which a government can produce and borrow at ZERO cost and, by manipulating interest rates, they can also borrow this money at virtually ZERO cost and, since air is free, governments can produce unlimited amounts of it…[and all this] money obviously creates massive bubbles in stocks, bonds, houses, used cars and other massively overvalued investments and consumer items. This is the ultimate of all Ponzi schemes. No wonder that bank(er)s, hedge funds and wealthy investors are raking it in.

Just look at how, for example, the Dow has gone up exponentially and parabolically in the last year in an historically unprecedented straight line.

The U.S. Is Bankrupt

..With less than a handful of exceptions, U.S. federal debt has gone up every year since 1930 so here we have the biggest economy in the world which can only hold on to this position by printing itself into a false prosperity at an ever faster pace.

After the gold window was closed in 1971, U.S. federal debt (UP 74x), total debt (UP 49x), M2 money supply (29x>) and debt to GDP (Up from 37% in 1971 to 127% in 2021) has gone exponentially parabolic and the dollar, the world’s reserve currency, has lost 98%.

[Unfortunately,] like all exponential curves of a big sample, this one will end in tears. Bubbles are called bubbles because they consist of air, and when bubbles become too big, they ALWAYS – and without fail – burst and implode and this is what the U.S. economy, as well as the rest of the world, can expect next.

Conclusion

Fundamentally, U.S. and global stocks are massively overvalued but we know that overvaluations can last longer than we expect, especially when we are talking about the end of a very long super-cycle which could be 300 years old or even 2,000 years old but, technically, . Whether that means days weeks or a few months, is totally irrelevant. We know that we are at the end of the most remarkable period in history in regards to money, investments and the economy and also reaching social, moral, and political low points in history…

Editor’s Note:  The original article has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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