Friday, August 05, 2016

Central Banks Are "All In" 
Attempting To Halt The Looming
Global Recession 
"The mainstream news sources seem determined to ignore the extent of the global slowdown in trade. Whether exports, imports, industrial production or whatever your preferred metric, the facts are undeniable. Nevertheless, the mainstream media chooses to refuse to cover it. It begs an obvious question of - why? .. The Central Bankers of the world are acutely aware of this fact and know how devastating a global recession would be in the current highly indebted and over leveraged financial environment. Though Central Bankers programs have been unsuccessful they have fully understood since the year beginning market drawdown that they must act - and fast! .. Central Bankers are reacting to the market for fear of an erosion in collateral values underpinning massive excess financial leverage. They had to act or crumbling collateral values associated with a 'Rehypothecation' implosion would quickly engulf the markets.The markets have been signalling major technical reversals are ahead since early 2016. The Central Bankers had little choice in their mind but to undertake the programs they did .. The market will begin a protracted secular Bear Market OR the Central Banks will flood the world with liquidity thereby artificially lifting the markets .. This will final leg will be the Minsky Melt-up we have also suspected still lies ahead .. The Central Banker actions will temporarily work but the Credit Cycle has turned which will quickly make their efforts futile .. Expect a resulting Currency Crisis to dominate the financial markets in 2017."
- Gordon T Long*
LINK HERE to the analysis

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