Resource analyst and futurist Chris Martenson says “bubbles are everywhere,” and it’s the fault of central banks. Martenson explains, “Italian 10-year debt is trading with a lower yield than 10-year U.S. debt. That’s because the European Central Bank (ECB) has created a massive bubble in the bond market. . . . We’ve got housing bubbles all over the globe in Australia, Canada, the United States, Hong Kong, London and you name it. This is simple because, and there is no mystery about it, the central banks have printed lots and lots of money, trillions and trillions, and people have gone out and bought things with all that money, and it has driven up the prices of things. That’s what the Fed wanted to accomplish. The only problem is when the Fed does, this they want to say, hey look, record high stock prices. Hey look, record high bond prices, as if this is a win for everybody and it’s not. There’s a lot of losers in that story.”
Martenson adds, “When you add up the losers in this story, it’s extraordinary. . . . I can point to the trillions of dollars of losses to savers, pensions, endowments and life insurance companies. You pick it, and I can show you trillions of losses in these categories. By the way, that’s about 99% of the people out there. . . . They have created this extraordinary pool of losers. Grandma got thrown under the bus. Fixed income people were thrown under the bus. Anybody who is trying to live on a middle income or even upper income salary was thrown under the bus. Let’s be really clear, the Fed did not do this to create jobs, they did this to pick some winners. Who are the winners? They are the big banks, the speculators and the people who own the financial assets the Fed and other central banks bid up that are already super wealthy. The Fed and Janet Yellen are out there trying to pretend they have no clue how the super wealthy got wealthier.”
Martenson says the Fed may be on the brink of losing control. Martenson contends, “The Fed is afraid of these markets because the Fed has created Franken markets. These markets are deeply in nose blead territory right now. Most people wouldn’t know this, but the earnings on the S&P are about where they were in 2011, but the market is vastly higher. It’s a really, really expensive market. The bond markets are over the top. They are just extraordinary in their bubble territory. . . . Housing is also way deep into bubble territory, and we are seeing that in all kinds of different markets. This story has always ended the same way. The only thing holding this market together is the people’s belief that the Fed will not stop doing what they are doing. That is a reasonably good bet because the Fed is stuck. On one end, if they stop blowing these bubbles up, they collapse. . . . When these markets collapse, it will be the most damaging bubble bursting that anybody alive has ever seen. We are in crazy territory thanks to the Fed, and people should be paying attention what is happening because they have created a really dangerous set of circumstances.
Join Greg Hunter as he goes One-on-One with Dr. Chris Martenson, the founder and creator of PeakProsperity.com.
(There is more in the video interview.)
After the Interview:
There is free information and analysis on PeakProsperity.com. You can also find a copy of “Prosper” on the upper right hand side of the home page. “Prosper” will give lay out in detail how you can survive and even prosper with a dramatically changing paradigm. There is also a subscription for more in-depth information and analysis, and you can enroll by clicking here.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.