In this week's Off The Cuff podcast, Chris and John Rubino discuss:
- Volatility Attacks!
- The market calm is suddenly shattered
- Trading A Credit Crisis For A Currency Crisis
- How all this ultimately ends
- Misuse & Abuse Of Power
- Is the norm these days, not the exception
- The Coming Reset
- Yes, it will be painful. But let's focus on what we want to come afterwards
In this week in which volatility in the markets — which has been MIA for longer than any other time in history — has suddenly come roaring back, Chris and John focus on the inherent fragility of the financial system, which is now utterly dependent on continued central bank subsidization. As John puts it:
The central banks have been buying assets at historically, absolutely crazy, rates for the last 6 or 7 years since QE really got going. And some of the them have switched into equities from bonds, because they bought up all the bonds. So now they're buying up all the equities.
They can do this as long as the currency they're creating has some value, which it still does. People still want euros and yen and dollars. And as long as people around the words are happy to take these computer bits or pieces of paper in return for real stuff, then this can go on.
by richcabot