This is it! The autumn of 2018 will be momentous in the world economy, markets and politics.
We are now seeing the Last Hurrah for stocks, bonds, the dollar and most asset markets.
The world economy has been living on borrowed time since the 2006-9 crisis. The financial system should have collapsed at that time. But the massive life support that central banks orchestrated managed to keep the dying patient alive for another decade. Lowering interest rates to zero or negative and printing enough money to double global debt seem to have solved the problem. But rather than saving the world from an economic collapse, the growth of debt and asset bubbles has created a system with exponentially higher risk.
PROBLEMS START IN THE PERIPHERY – VAT COUNTRIES – VENEZUELA, ARGENTINA, TURKEY
So here we are on the “Eve of Destruction” when the fake measures that governments and central banks have taken have not saved the world, as the Keynesians believe, but instead created an even bigger bubble that is now about to burst. Curing a sick world by the same means that created the disease in the first place was always bound to fail.
Global problems of the magnitude that the world will experience in coming years normally start in the periphery. We are seeing multiple examples of local wildfires that will soon spread to the core of the world economy.
Take for example the VAT countries. Not Value Added Tax, but Venezuela, Argentina, and Turkey. Deficits, debts and currency collapse are the normal warning signals and these are certainly present at varying degrees in the VAT countries. As always, the best single indicator which reveals these problems is of course gold. As the chart below shows, gold in Venezuelan Bolivars is going up exponentially. Since May 2018, gold has gone up 23,000x or 2.3 million percent.
Argentina goes from one crisis to the next and gold is up 14,500% this century. Only since December 2017 gold is up 74% in Pesos.
Finally in Turkey gold is up 26% since May this year and 3,500% since 2000.
No wonder governments around the world hate gold. Because gold reveals their deceitful actions in destroying the economy and the currency.
There is blatant manipulation in so many areas including fake money, fake paper gold, fake news, fake politics and fake governments.
The VAT countries are just one example but a very important one. Because they are giving us the signal that a global crisis has started. Most emerging market countries are in the same situation. In the next few months, emerging markets will drop one after the next.
EUROPE IS BANKRUPT
The situation is the same in the West too. Europe is totally bankrupt. The EU elite is desperately trying to keep a collection of disparate nations together by coercion combined with forcing debt onto any nation who threatens to exit the EU or Euro. Greece and Italy should have left the EU long ago, introduced their own devalued currency and renege on the debt to the EU. But they were stopped by Brussels. Now they will fall with the rest of the EU. The UK people voted to leave the EU but Brussels are using any means to stop that happening.
