If you bothered to read both the links in the post below, you no doubt caught Geoffry Batt’s reference to the oncoming Minsky moment:
What we hope to show with this exercise is that no course of action, even the one currently employed by the Fed, can continue in perpetuity: you can’t have infinitely low housing rates in an environment of exploding delinquency, as even more MBS are onboarded onto the taxpayer’s balance sheet.
The reality is that inflationary concerns will come to a fore, and have a material impact on rates, the second all these speculations are voiced in a more reputable arena. At that point the game will be up; the Fed’s attempt to continue the status quo will be over, and the relentless rise up in rates will begin, culminating with the long-awaited Minsky moment.
As we have said time and time again, the moment when the world’s largest central bank, which controls the supply and interest rate of the world’s reserve currency is FORCED into a rate response due to its final exhaustion of the monetization spiral, the impact on OVER ONE QUADRILLION DOLLARS in interest rate based derivatives will prove beyond any calculable reaction that the price-based system of the world’s collective economies is bankrupt beyond any means of monetary restitution. The calamity that ensues will not be a Minsky moment of impaired cash flow or credit restriction, but rather a complete repudiation of the price based system.
This will usher in the globalist Trojan horse of a consumption based or so-called “carbon currency” model, which the credulous have formerly supposed to be a Technocratic science fantasy.
The end of the world is also fantasy. But then so is the “recovery” propaganda–just look at the fundamentals and take your pick.
The only solution is a repudiation of the derivative bubble, and a Glass Steagall reconstruction under a sovereign credit system, backed by the productive economies of independent nation-states.
We can head this off at the level of our State’s, or brace for the impact of an economic world war between powerful opposing forces–battling between the imposition of these two opposing systems.
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My comment is not for this particular post. It’s the way I view not only this post but your entire site. KEEP UP THE GREAT WORK!!! Our tax dollars has already made these white collar criminals too wealthy already!
But why should they think any different? We’ve bailed out these people several times over the past century. They knew the taxpayers money would come to the rescue when they entered their ‘den of theives’.