There’s a new Martenson Report ready for you. It’s quite germane to today’s market action.
Link to Risk Increases – The Flood Continues
Here’s a snippet:
The liquidity flood continues, with money dumped into the markets on a weekly (if not more frequent) basis. Last week the Fed pumped more than $18 billion into the system through its purchase of agency debt and MBS. That’s what we know about. This week we found out that central banks around the world have pumped a quarter of a trillion dollars into Lloyds.
How many other such deals do we not know about? How much of this secret money is reflected on the books for the public to scrutinize? Why does the Fed refuse to be audited?
More broadly, we would do well to consider what it means to live within a financial and economic system that needs so much daily fine-tuning just to remain afloat. The conclusion I draw is that the risks of a major dislocation are now higher than ever. That instead of being able to allow the necessary process of ‘creative destruction’ to wash away the rot, we are mired in a system where rescues, special interests, and favors rule the day.
I am growing less and less certain that we will have our final deflationary washout before the inflationary impacts of the wall of liquidity are fully upon us.