Central Banks And "A Great Taking."

From Greg M

Lions…

I want to begin with a summary breakdown of what is currently happening. NOT WILL HAPPEN, OR MAY HAPPEN, what IS happening right now.

There are TWO dynamics in play which are “setting the stage” for A Great Taking.

1. Currency devaluation is accelerating and 2. Debt expansion is exploding. Both of these are non-productive dynamics, and as a result, the global economy will slow in lockstep with them.

Central banks (ECB, Fed, BoE, BoJ, PBoC) will accelerate their assault on their own currencies why?

They MUST engineer devaluation JUST to maintain the illusion of system solvency. And as a direct result, expect rate cuts/currency devaluation from every so called developed economy.

>Expect to see world leaders call on their respective central bank to cut rates, AND therefore weaken the purchasing power of the currency. Click HERE.

Expect coordinated weakening of currencies AND VAST Debt Expansion… FAR Worse Than Most Expect. In fact, EXPECT a new "debt expansion" phase which will DWARF all prior phases.

Why? Government deficits are permanent and accelerating. (THIS IS SLAVERY ECONOMICS).

The private sector/middle class is therefore forced into survival borrowing/further debt slavery as the economy slows even FASTER. This will lead to debt-to-GDP ratios exploding globally, and so called “sovereign” balance sheets become even more insolvent. This will lead to even more non-productive debt, (debt for survival, not growth). Again, more SLAVERY ECONOMICS.

The Global Economy Will Slow in Proportion to Debt Expansion. (A GREAT TAKING).

The faster central banks/world leaders expand debt, the faster real economic activity will SLOW Why? (Its basic economics). Each new unit of debt adds less real growth, this leads to “wealth extraction” and will therefore reduce demand, (RESULT, the middle class gets decimated).

Further result… Recession/Depression WITH debt hyper-expansion = FULL-ON COLLAPSE PATTERN.

ECB & Fed Next Moves. CUT rates further, and the ECB has already started.

Expect expanded QE, (likely through targeted purchases, corporate debt, sovereign bonds under "stability" cover or some other name). Treasury buybacks, repo expansion, new liquidity programs. Push the US Dollar to weaken faster, in coordinated fashion (watch this trend). ECB/The Fed.

What We Face Is the Death Spiral of Fiat,- End result, (A GREAT TAKING).

Lions… We are now past the phase of managed cycles, we are entering the endgame phase. Debt must expand and currency must be destroyed to support debt. As a result, the economy must shrink in response… Repeat, until reset.

Thoughts? Comments?

GM