Loading ...“A financial smash-up is really the only thing that will break the awful spell this country is in: the belief that everyday life can go on when nothing really adds up. It seems to me that the moment is close at hand. Treasury Secretary Mnuchin told the Davos crowd that the US has “a weak dollar” policy. Is that so? Just as his department is getting ready to borrow another $1.2 trillion to cover government operations in the year to come. I’m sure the world wants nothing more than to buy bucket-loads of sovereign bonds backed by a falling currency — at the same time that the Treasury’s partner-in-crime, the Federal Reserve, is getting ready to dump an additional $600 billion bonds on the market out of its over-stuffed balance sheet. I’d sooner try to sell snow-cones in a polar bomb-cyclone.”
The financial crash is not an option. Stocks going up are the only thing that will save pensions in the US. Forget about rising rates or a falling dollar, even if the dollar falls they will keep bonds in check to prevent a US gov’t stresser or default of any kind. Never going to happen – ever.
Lastly, there is nothing that will stop them from ever allowing gold to cast doubt on the financial system. That problem has been solved through complete manipulation of all markets. These aren’t Sinclair’s good ol’ days. This is the new reality.
The Fed will never dump $600 billion of bonds on the market, Kuntsler is wrong – as always.