Trader and financial analyst Gregory Mannarino says, “I think things are looking very bad in the immediate future here. Just this month, the ECB is going to start their Japan style quantitative easing, and that is going to make the U.S. equity market look a little less desirable . . . . I think we are going to see some cash leave the U.S. stock market.” Mannarino goes on to say, “What’s even scarier . . . I think these games we have seen in the dollar could take off parabolic from here, and that is not good. . . . The digits cannot keep up with how fast the Federal Reserve is printing cash out of thin air, right at this moment, to try to combat this deflationary environment. . . . The Federal Reserve did not see this dollar strength coming and how it would affect Wall Street. You can expect the Federal Reserve to be forced to act to punish the dollar at some point, and that is going to hurt the Federal Reserve’s credibility. . . . When a world central bank becomes so desperate that it has to engage in this type of behavior, you know things are very, very bad.”
Mannarino points out a recent comment by a former Fed Chief that back up his claim the global economy is in deep trouble. Mannarino says, “Even Alan Greenspan came out last week talking about how the global economy is extraordinarily weak, despite what we are hearing from the mainstream media that everything is good, and that they got everything under control. The fact of the matter is this, nothing is real. . . . Central banks are taking the debt and manipulating it, and it distorts every asset class across the spectrum. So, there are no price discovery mechanisms anywhere. There is going to be a terrible price to pay for this.”
Mannarino goes on to say, “This is not just a financial problem. This is a resource issue, and when this debt bubble bursts, basic necessities that people need to sustain their lives are not going to be available. This is a resource issue on a global scale. This entire fake system will continue to fall apart, and it is falling apart right in front of our eyes. People are going to be rioting in the streets of every nation on earth when this comes apart. There is no doubt about it, and there is no way out of it.”
On inflation, Mannarino says, “A lot of people say I’ve been hearing this for a long time. The reason why we haven’t seen massive inflation already . . . there is a tremendous lag effect being created. All this cash that is being printed out of thin air already, and continues to be, is not making its way over to the consumer side of the monetary base yet because the money velocity is so low–at historic lows. This lag effect is not going to continue. At some point, we are going to see the money velocity to pick up. It is a simple mathematical equation. When you have all of these extra printed dollars chasing the same amount of goods, what do you get? You get inflation. . . . The Fed is exacerbating the problem, which we are all going to face down the line.”
Mannarino contends, “We are staring down the barrel of the worst financial cataclysm that has ever been seen, witnessed or even heard of in human history. There is no way out of this. As hard as I think about this, I cannot envision a scenario that there is no way this will not turn into a financial disaster of epic proportions for every human being on this earth.”
For the people that say the economy looks good to them, Mannarino says, “This is the calm before the storm. The Federal Reserve has flooded the system to the point of ridiculousness. They re-inflated an equity market bubble. They are trying as hard as they can to re-inflate a credit bubble. So, people are living on nothing but borrowed time.”
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.