Yesterday evening, Jon Snow tweeted: “Stock market hits highest point since 1999…are alarm bells ringing…or simply the closing bell?”
If the alarm bells aren't ringing, they should.
A few weeks ago, Business Insider made this point very clearly. On the chart of the dayInvestors are now, as in 2007, leveraging their stock market bets.
Speculators use their stakes like crazy
In other words, they are gambling with money they don't have, and this debt bubble is what is driving the stock market.
Aren't rising stock prices a symbol of growth in the real economy? After all, stock prices represent the value of a company. So let's look at the economic impact. Does rising stock prices have a positive impact on the real economy?
do not have In the UKit seems so. Also, In Europe. or united states of america.
oh dear.
This harsh reality makes it very clear that the financial system has no interest whatsoever in the real economic impacts of its activities on billions of people around the planet. They are playing a great game and no one else cares.
Indeed, David Camleon and George Osborne are clearly of the same mind, putting the markets first in every decision.
As ZeroHedge reported last week, PIMCO's Bill Gross A warning that bubbles are everywhere.
Bubbles are everywhere, but I'm not exaggerating or saying they're going to pop anytime soon. I was just pointing out that there are probably big distortions in the bond market, like a Treasury bubble, narrow credit spreads, a bubble in high-yield bond prices. That said, I'm suggesting that as long as the Fed, the Bank of Japan, and other central banks keep writing checks and not drawing down the money, the bubble will be supported in the form of inflation. They're inflating the bubble. If that stops, there will be a backlash. That doesn't mean a 2008-like situation, it just means that the bull market could end everywhere. Not just in the bond market, but in the stock market, and a bull market is developing in the housing market.
And speaking on the Today programme this morning, HSBC chief economist Stephen King warned: “There has never been a better time than this, and never will be again.”
In an interview, he pointed out that financial activity in the stock and bond markets is nothing more than a claim on future economic activity.
In other words, he was clearly acknowledging that he and his colleagues are speculating about the lives of our children, which is probably why the BBC presenters were chuckling just before the interview.
We probably won't see another sudden hyperinflationary shock like that of 1923, but the possibility of such a shock happening again is certainly built into the system. It will probably be 50 years before we need a wheelbarrow to carry the cash we need for our weekly shopping.
But the message is very clear: we, our children and our grandchildren are staring down a long, slow and painful decline to a Third World standard of living.
So Jon Snow has every right to be worried. It is clear to me that the alarm bells are ringing. No lessons have been learned. The elites continue to play their game. Their intention is to destroy the so-called developed world, but at a pace that keeps the local population compliant.
This may seem like just plain doom and gloom rhetoric from me, but frankly, I am frustrated by how easily this situation can be resolved.
All it takes is for people to recognise the reality we face and demand the breakup of the banks and the reinstatement of the Bradbury Pound, and before we know it we will have a brighter future.
