THE VANISHING POINT. By Gregory Mannarino
From Gregory Mannarino
THE VANISHING POINT.
By Gregory Mannarino TradersChoice.net
Take everything that you think you know about economics and finance, AND IT ALL COMES DOWN TO JUST TWO FUNDAMENTAL TRUTHS.
1. To have a strong economy you need a strong currency, and
2. To have a strong currency, you need a corresponding rate of interest high enough to support the purchasing power of the currency.
Today the entire world economy is freefalling faster than any other time in history. Meanwhile, the world’s stock markets are at near record highs. (The US stock market this year alone has hit a new record high 47 times).
But how is this even possible?
How can there be such a great disconnect between the economy and the stock market?
A PARADOX.
Today’s EXTREME DISCONNECT between the economy and the stock market is possible because of THE FACT that the two fundamental truths which support a strong economy, as I outlined above, have been turned upside down.
It is these same two economic truths, when they are turned upside down, now become AN ECONOMIC WRECKING BALL.
However, it is also these same two economic truths that when turned upside down, PUSH WORLD STOCK MARKETS TO RECORD HIGHS.
Low/artificially suppressed interest rates steal currency purchasing power and therefore are massively inflationary. Low/artificially suppressed rates IS EMERGENCY MONETARY POLICY; it is also known as Quantitative Easing (QE).
QE is only to be used as a temporary measure, because when implemented longer term it is massively economically destructive.
QE is STRONGLY POSITIVE FOR THE STOCK MARKET.
The general population has no idea of even the MOST BASIC Economic/Financial System fundamental principles. Therefore, what is happening now WILL CONTINUE.
The mechanism of artificially suppressed rates, and therefore currency devaluation will get more extreme moving forward. In fact, there is a VERY REAL possibility that here in the US people may be forced to endure a NEGATIVE RATE environment.
With artificially suppressed rates/currency devaluation goes people’s hopes, dreams, futures, and a rapid decline in the standard of living. Moreover, the fact that the system has been turned upside down ensures it- THE VANISHING POINT.
We don’t need a strong currency we need sound money
Because of your insights about the economy, I decided to go back into history to determine how technology was able to change the political and financial structures. I believe that the PRINTING PRESS was a very important basis for change because it allowed people to read the Bible and the Protestant Revolution was able to compete with the Government which was the Catholic Church. FASTFORWARD TO TODAY: The Printing Press is allowing the FED to decrease the value of the currency to allow a different form of government and financial system. The application of information cannot be underestimated. However, people have always had to suffer enough to revolt.