Off The Cuff: The Economy Is A Junkie

In this week's Off The Cuff podcast, Chris and John Rubino discuss:

• Hey, Did We Just Declare War On North Korea?
  • Trump's UN speech stuns the world
• Unpacking The Latest Fedspeak
  • Much more talk than action
• The Junkie Economy
  • Dependent on hits of ever more debt until it dies
• The High Cost Of Lacking Resilience
  • Harvy, Irma & Maria are teaching us a lesson in real-time

This week Chris and John tackle the latest Fed announcement. Yellen's talk of tightening/normalizing — to borrow from common parlance — is really a "nothingburger" until the world's other major central banks curtail their stimulus efforts.

The world economy is still receiving $125 billion in liquidity injections every month. This, of course, has destroyed the integrity of the markets and turned all investors into speculators — as whatever the central banks decide to do next is the only thing that will matter to prices.

As we have been warning for years, this will all end badly once the central banks have either destroyed their respective zombie economies or their fiat currencies (if not both). As John correctly puts it:

The world is a junkie.

It’s a credit addictive system that can only function with new credit being pumped in to it continuously in ever larger doses.