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. 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
Our options service THE CRISIS TRADER is absolutely KILLING it.
We have 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 finished 2015 UP 35%
Over the same time period, the S&P 500 was DOWN.
This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!
Our next trade goes out this 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...
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.
If you’re an investor who wants to protect yourself from the coming bear market, 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 wit… in the last 16 months we’ve closed out 77 straight winning trades.
That is not a typo…
For 16 months, not only have Private Wealth Advisory subscribers locked in 77 CONSECUTIVE winners including gains of 18%, 36%, 69%, even 119%…
But throughout that ENTIRE TIME we’ve not closed a SINGLE loser.
Indeed, we just closed out two more double digit winners yesterday: gains of 10% and 40% opened just a few weeks before
As you can imagine, this track record is a getting a ton of attention, so we are going to be closing the doors on our current offer to explore Private Wealth Advisory at the end of this month.
So if you want to try Private Wealth Advisory for 30 days for just 98 cents, you need to get moving, because the clock is ticking and slots are quickly running out.
To lock in one of the remaining slots…
Chief Market Strategist
Phoenix Capital Research
Phoenix Capital Research