When you print record amounts of money, it never ends well. Better to let the bad aspects play out and get it over with instead of kicking the can.
What the most important chart in the world is predicting
By Chris Martenson and cross-posted from Peak Prosperity
Back in January of 2016 we saw what appeared to be, and in my opinion should have been, the end of the Everything Bubble blown by the word’s central banking cartel.
The carnage started in the emerging markets. Highly-leveraged positions and carry trades began to unwind. That’s a fancy way of saying that all the big, sophisticated investors — who were busy borrowing heavily in countries with cheap money (the US, Japan, and Europe) and using that debt to speculate in markets offering higher yields (junk debt, emerging markets, stocks, etc.) — began to reverse their trades.
It quickly devolved into a “Sell everything!” scramble. We saw the dollar spike and stocks fall — with emerging markets taking the full brunt of the carnage as their stock markets rapidly fell into bear…
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