I'm watching and waiting for the inevitable crash. I don't think there's any way to head this off anymore. I'm old enough to have gone through several crashes in my lifetime and I still remember what my grandparents told me about the Great Depression. We're heading for another one. The difference this time, is that China also knows its coming and I think they're preparing for it.
The rest of the world is going to take a huge hit and a lot of governments will change hands and not in a good way. Will another global depression spawn another global war? Look at what the U.S. is doing right now. We know from the histories what Germany did in the lead up to 1939. The U.S. is repeating history because a certain few want to rule the world and take no prisoners.
Actually, China would get hammered in another type of Great Depression. This would collapse demand for Chinese exports when their whole economy is geared for exports. This would effectively destroy tens of thousands of Chinese factory jobs at the worse possible time and would create massive societal unrest.
Count on the central banks doing whatever they have to in order to uphold the house of cards a bit longer. Never underestimate an institution which can make money appear or disappear at their mere whim.
It seems to me it is Japan and the Bank of Japan who have painted themselves inside a corner. They have bought bonds, and even stocks, to artificially prop up stock prices and depressing bond prices. With so much debt to service, exactly how are they going to deal with rising bond prices? My guess is that the Bank of Japan will lower interest rates yet again to keep the Japanese Government from having to pay the piper. If I were Japanese, there's no way I would buy any Japanese bond. After all, what are they to pay them with, more printed yen? Japan is yet another example of the mess central banks create because, ultimately, they serve the politicians and the bankers. The people just suffer the consequences of manipulations, usually via inflation. The Fed even officially tries to destroy your purchasing power 2% a year and not one reporter will ever call them out on this.
We all know the bankers and politicians will always be propped up and bailed out, while everyone else without connections suffers the blowback on their own. We are the chickens and the bankers and the politicians are the foxes.
I'm watching and waiting for the inevitable crash. I don't think there's any way to head this off anymore. I'm old enough to have gone through several crashes in my lifetime and I still remember what my grandparents told me about the Great Depression. We're heading for another one. The difference this time, is that China also knows its coming and I think they're preparing for it.
The rest of the world is going to take a huge hit and a lot of governments will change hands and not in a good way. Will another global depression spawn another global war? Look at what the U.S. is doing right now. We know from the histories what Germany did in the lead up to 1939. The U.S. is repeating history because a certain few want to rule the world and take no prisoners.
Actually, China would get hammered in another type of Great Depression. This would collapse demand for Chinese exports when their whole economy is geared for exports. This would effectively destroy tens of thousands of Chinese factory jobs at the worse possible time and would create massive societal unrest.
Count on the central banks doing whatever they have to in order to uphold the house of cards a bit longer. Never underestimate an institution which can make money appear or disappear at their mere whim.
Good point.
Excellent!
Excellent podcast. Thanks Lena!
It seems to me it is Japan and the Bank of Japan who have painted themselves inside a corner. They have bought bonds, and even stocks, to artificially prop up stock prices and depressing bond prices. With so much debt to service, exactly how are they going to deal with rising bond prices? My guess is that the Bank of Japan will lower interest rates yet again to keep the Japanese Government from having to pay the piper. If I were Japanese, there's no way I would buy any Japanese bond. After all, what are they to pay them with, more printed yen? Japan is yet another example of the mess central banks create because, ultimately, they serve the politicians and the bankers. The people just suffer the consequences of manipulations, usually via inflation. The Fed even officially tries to destroy your purchasing power 2% a year and not one reporter will ever call them out on this.
I think the phrase 'The Chickens are coming home to roost,' is apropos.
We all know the bankers and politicians will always be propped up and bailed out, while everyone else without connections suffers the blowback on their own. We are the chickens and the bankers and the politicians are the foxes.