John Rubino feels "the economic policy around the world is not sustainable. They only have one tool which is easy money which they must do more and more of it over time to maintain normality in the world. At some point they run out of the ability to create more currency and monetize more debt. The debt that is required becomes overwhelming and the system spins out of control We are seeing the early stages of that now with all sorts of crazy volatility springing up in places around the world where no one suspected."
"The Central Banks of the World are Beginning to lose control of the process!"
Making Sense of it All
John tries to make sense of what appears to be unrelated chaotic events. He tackles the most recent four:
1) ECB & Quantitative Easing Announcement
2) SNB Abruptly Unpegging the Franc
3) The Global Energy Shocker
4) Gold's Sudden Movement
ECB & Quantitative Easing Announcements
"The Eurozone is in danger of breaking apart and falling into deflation which is a disaster for an over indebted economy!"
SNB Abruptly Unpegging The Franc
"Switzerland is a very small country but a very big story. This is the first central bank to opt-out of the currency war! Basically, they surrendered but it yet has to be determined if you can surrender in these currency wars?"
The Global Energy Price Shocker
"The US employment gains associated with the Shale Oil boom are gong to be reversed out... as are the junk bonds which will be the 'sub-prime mortgages' of this bubble ... on balance the US is gong to be hurt more by falling oil prices"
Gold's Sudden Movement
"The point is coming where everyone figures this out and doesn't want to hold the currencies anymore. You are seeing this in the behavior of gold in the crisis economies .. Russia and Euros"
What is Occurring
A SHAKEN BELIEF IN THE OMNIPOTENCE OF THE CENTRAL BANKS BEING ALL POWERFUL AND THAT THEY CAN BE TRUSTED!