Stock trader Gregory Mannarino says Greece is the tip of the debt iceberg. Mannarino explains, “Never in history have we been so overwhelmed and buried underneath a mountain of debt. I believe we are at a top in regard to the debt. What does this mean? We could see a domino effect where all this starts cascading down and correct to fair market value. It will, whether it’s today, tomorrow or next week. There is no way out of it, and that is what people need to keep in mind.”
Mannarino goes on to say, “I think people are being distracted by the mainstream media saying this is just a Greek problem or this is just a Puerto Rico problem. This is a global problem. It is insurmountable. It can never be paid back in any possible way. It’s too huge. It’s the mechanism of the system that simply demands the relentless acquisition of debt in perpetuity. Once we admit we can’t borrow anymore, we have a debt crisis. That is what we are seeing here. How are they trying to fix it? The same old way by fueling it with debt. All this is doing is growing the Frankenstein, the monster of debt even larger.”
The take away here from Mannarino is the days of ever expanding debt are numbered. Mannarino contends, “The system is ending, and we are going to see a massive correction in bond yields. Debt is going to reprice itself to fair market value, and that is going to change the spectrum of every asset class because every asset class is based off of the bond market. . . . The bond market is going to light up. . . . What do I mean by that? We are going to see a spike in bond yields. The entire system is based on the premise that it will function on confidence. It’s a belief that the system will work. Once that confidence is shaken, then it’s party over, that’s it. So, we have confidence in the financial system now being shaken. We have the credibility of central banks being put on the line by the central bank of central bankers. Once the confidence is lost, it is party over and that is really what the issue is here with Greece.”
Think the US is in good shape? Mannarino says, “The US is in debt beyond the point of beyond. We are all going to be facing this issue here. This is a global problem that has no solution. There is no way you can continue to inflate the debt and the problem be fixed. Again, it is the mechanism of the system that is being called into question, and I believe we have to be close. . . . Just look at the writing on the wall everywhere.”
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.