For six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis.
All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. If the below chart was a problem BEFORE 2008… there is no way that things are better now. After all, we’ve just added another $10 trillion in debt to the US system.
Similarly, anyone with a functioning brain could tell you that a bunch of academics with no real-world experience, none of whom have ever started a business or created a single job can’t “save” the economy.
However, there is an AWFUL lot of money at stake in believing these lies. So the media and the banks and the politicians were happy to promote them. Indeed, one could very easily argue that nearly all of the wealth and power held by those at the top of the economy stem from this fiction.
So it’s little surprise that no one would admit the facts: that the Fed and other Central Banks not only don’t have a clue how to fix the problem, but that they actually have almost no incentive to do so.
The Single Best Options Trading Service on the Planet
Most investors believe that trading options is both risky and dangerous.
Our options service THE CRISIS TRADER has a success rate of 72% meaning we make money on more than seven out of 10 trades.
Even if you include ALL of our losers, we are up 43% year to date.
Over the same time period, the S&P 500 is up less than 2%.
That’s correct, with minimal risk, we are outperforming the S&P 500 by 41%… and the year isn’t even over yet.
Our next trade goes out tomorrow morning… you can get it and THREE others for just 99 cents.
To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER…
CLICK HERE NOW!!!
So here are the facts:
1) The REAL problem for the financial system is the bond bubble. In 2008 when the crisis hit it was $80 trillion. It has since grown to over $100 trillion.
2) The derivatives market that uses this bond bubble as collateral is over $555 trillion in size.
3) Many of the large multinational corporations, sovereign governments, and even municipalities have used derivatives to fake earnings and hide debt. NO ONE knows to what degree this has been the case, but given that 20% of corporate CFOs have admitted to faking earnings in the past, it’s likely a significant amount.
4) Corporations today are more leveraged than they were in 2007. As Stanley Druckenmiller noted recently, in 2007 corporate bonds were $3.5 trillion… today they are $7 trillion: an amount equal to nearly 50% of US GDP.
5) The Central Banks are now all leveraged at levels greater than or equal to where Lehman Brothers was when it imploded. The Fed is leveraged at 78 to 1. The ECB is leveraged at over 26 to 1. Lehman Brothers was leveraged at 30 to 1.
6) The Central Banks have no idea how to exit their strategies. Fed minutes released from 2009 show Janet Yellen was worried about how to exit when the Fed’s balance sheet was $1.3 trillion (back in 2009). Today it’s over $4.5 trillion.
We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work. They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.
The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail.
Smart investors are preparing now.
If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.
Private Wealth Advisory. is a WEEKLY investment newsletter with an incredible track record.
To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.
That correct, during the last year, we’ve not closed a SINGLE LOSER.
And if you go back further, 46 of our last 47 trades have made money.
In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.
During that time, you’ll receive over 50 pages of content… along with investment ideas that will help you make you money… ideas you won’t hear about anywhere else.
If you have not seen significant returns from Private Wealth Advisory. during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.
All the reports you download are yours to keep, free of charge.
To take out a $0.98, 30-day trial subscription to Private Wealth Advisory.
Phoenix Capital Research