Central Bank Created Silver Rally - Gary Christenson

February 10, 2016

Central banks have created a mess, unless you enjoy unemployment, crashing economies, a wave of bankruptcies, and half of the world’s assets owned by only a few people.

From Chris Martenson: The Deflation Monster Has Arrived

“Most of the bad decisions that will haunt our future were made by the Federal Reserve in its ridiculous attempts to sustain the unsustainable.”

“… looking at the next few years, we will experience this as a time of unprecedented financial market turmoil, political upheaval and social unrest. The losses will be staggering. Markets are going to crash, wealth will be transferred from the unwary to the well-connected, and life for most people will get harder…”

From Egon von Greyerz:

“In spite of a 50% increase in global debt since 2008 to $230 trillion and zero interest rates, the world economy is now deteriorating rapidly. Add to that $1.5 quadrillion of mostly worthless derivatives and a very serious geopolitical situation and we have the ‘perfect scenario’ that is going to lead to the most serious crisis that the world has ever experienced.”

From Ambrose Evans-Pritchard:

“The global financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability…”

Pritchard quoting William White, OECD, former chief economist of the BIS:

“It will become obvious in the next recession that many of these debts will never be serviced or repaid, and this will be uncomfortable for a lot of people who think they own assets that are worth something.” [emphasis mine]

From Chris Martenson: The Deflation Monster Has Arrived

“I’m not just calling for another run of the mill bear market for equities, but the unwinding of the largest and most ill-conceived credit bubble in all of history. Equities are a side story to a larger one.”

“It’s global and it’s huge. This deflationary monster has no equal in all of history …”

“Faced with the prospect of watching the entire financial world burn to the figurative ground (if not literal in some locations), or doing something, the central banks will opt for doing something.”

Repeat: The central banks will do something! The likely choices are: more QE such as “printing currencies,” bailouts, bail-ins where banks take depositor accounts to recapitalize banks, and helicopter money – money given directly to taxpayers, more giveaways, tax rebates, and whatever else politicians think will buy votes.