MARKETS: Why Is No One Talking About This? (MAXIMUM SATURATION).

By Gregory Mannarino

MARKETS: Why Is No One Talking About This?

(MAXIMUM SATURATION).

By Gregory Mannarino TradersChoice.net

Not since the run up to the March 2000 stock market crash, (Dot-com bubble), have we seen the stock market do what it is doing right now.

The stock market today is rising at its fastest pace since the Dot-com era. Not before, nor since, the run up to the bursting of the Dot-com stock market bubble and subsequent meltdown, has the stock market run up so fast. So far this year, 2024, the stock market has set 47 new record highs.

Would it surprise you to know that today, it is THE SAME mechanism in place which led up to the Dot-com stock market crash that is driving the stock market today?

Leading up to the Dot-com meltdown, it was low interest rates (easy money) which led to wild speculation in the stock market, especially tech.

The effect of low/artificially suppressed rates is ALWAYS the same- it creates massive and out of control market speculation which leads to a multiples-expansion cycle, (investors are willing to pay MORE to own shares of stocks). The mechanism of low/artificially suppressed rates consequently and directly create massive price action distortions in equities/stocks which therefore leads to an inevitable stock market meltdown.

What makes today’s situation exponentially worse than that of the Dot-com era is this. Today the system is DEBT SATURATED. The paradox here is that even though the system is debt saturated, there is not enough of it. The current central bank run debt-based system can only operate in a perpetual EXPANDING deficit. This means that DEBT MUST EXPAND in greater and greater amounts just to function. It’s a perpetual SUPER BLACK HOLE.

What makes this situation even worse.

The system has already hit what I call “MAXIMUM SATURATION,” (a term I came up with years ago).

Maximum Saturation occurs when the already debt saturated environment must now be fueled with PARABOLIC debt just to keep functioning. The first sign of “maximum saturation” is WORLDWIDE INFLATION- which is exactly what we have now. So, to keep the already debt saturated system going, central banks MUST now work in concert to MASSIVELY SUPPRESS RATES AND THEREFORE DRAMATICALLY DEVALUE THE CURRENCY. Ultimately this maximum saturation condition cannot be overcome, and an eventual LOCK-UP of the credit/debt markets will occur.

MAXIMUM SATURATION… Central Banks Gone Wild.

Today THE NUMBER ONE buyer of DEBT is world central banks.

Today THE NUMBER ONE buyer of GOLD is world central banks.

Think about that… as central banks continue to issue their singular product to the world, debt in the form of currency, they themselves are hoarding gold. Moreover, central banks are using the currency they create out of nothing to BUY BACK/MONETIZE the debt AND buy gold.

For over 10 years I have said: “BET AGAINST THE DEBT! BECOME YOUR OWN CENTRAL BANK.” Well today, with central banks now the number one buyer of gold, THEY THEMSELVES ARE BETTING AGAINST THEIR OWN SYSTEM WHICH WE ARE FORCED TO PARTICIPATE IN!

In summary.

The world today has already hit the point of MAXIMUM SATURATION regarding debt, and the effect of this moving forward is going to be devastating to the world economy and its people.