TODAY – THURSDAY – BILL GROSS THE “BOND GOD” SPOKE
Bill warns of the coming SUPER CRASH. Why? As reported on this blog site the issue is complex. Melt down is historic to excessive leverage and speculation. When the markets are rigged by speculators the real market evaporates into mindless profit seeking in imprudent risk taking rising like a risk tornado until it collapses into SUPER CRASH. The two products that create SUPER CRASH are world wide DEFLATION and systemic bad debt.
The Debt Bomb has reached a global water spout still fantastically rising exceeding 100 trillion in “never to be repaid” debt booked by criminal accounting practices exempting institutions from FAIR MARKET ACCOUNTING VALUATIONS on their books. You and I would go to prison if we lied like they lie on their books. When they lie its politics.
Now an accelerant has been added into this first time in human history as failed central bank financial policy still pumping out free money of nations into the bad debt water spout rather than pause is accelerating the BAD DEBT…… Everyone booking profit making….. that is not real.
The accelerant is NEGATIVE INTEREST BONDS. The king of all bond strategy globally, is ringing the ALARM BELL this weekend to world markets. What is he saying? Google to get all of it and start with the venerable Financial Times of London so often reporting where no one dares to tread.
Bill Goss data concludes that the accelerate of 10 TRILLION in sovereign nation bonds, sucked up by the voracious appetites of institutions, is now costing investors tens of billions of dollars in LOSS to park money in these bonds. To balance the loss taking place the fund managers are forced to balance their holdings with increasingly risky bets in lower rated bonds with higher yields. If these bonds swing wildly in future markets the entire market is going to be savagely globally effected. Bill repeats the BLOW UP is coming more than once in his Bell Ringing WARNING.
The world markets are no longer under regulatory control. Nations have lost control. We have advocated on this blog for the largest global re-think in world wide economic regulatory frame work in 100 years.
The bond loss ratio Bill Goss reports is the WORST economic reality today in the past 500 years. Thats 500 years folks. And Bill knows.
Blackjack the largest institution and most of the Super sized, has 49% in ETF holdings – of their holdings to preclude runs on funds – which are occurring in record numbers now when yield deliverables tumble… by elevating risk into the wholly unregulated field of international speculations. These new unregulated “structured” asset plays have surpassed the still rising earlier versions of sub prime – with an April record of over 1 trillion placed in London globally- same oh same oh – sub prime and all rated AAA. Nothing has changed. Only its worse now.
The ETF related collapse linked to Bill Gross’s ALARM BELL WARNING and the warning of the IMF and World Bank have zero impact on world leaders. Hostage to their independent and non accountable central banks – as all central banks but a few are for the most part all private ventures under contract with the nations – the Federal Reserve Board included, and are never not ever, in consequence for their own failed policies. Policies that brought us the last crash and policies that are making the next crash worse.
We have advocated all nations MERGE their central banks back into their national treasuries in a digital transparent world. Policies can then be adjusted by the right mind set without conflict to the banks that own these central bank stock shares. Plus the merger would audit the central bank giving real policy makers data missing today plus the audit of who owned these antique and obsolete creations – put in place when the telegraph ruled and no one had telephones. They have passed their usefulness in the 1960’s. Everything forward has been a central bank disaster in policy.
Central bank FREE MONEY and negative interest rate has not created market investment and re-set inflation. Has not created real recover jobs and growth. Far from it. Like ostrich’s with heads all buried in the sand – no one honestly reports on the market bubbles the debt bombs and the deflation cycle we are truly inside of. Politicians just want to not see panic destroy their economic model. Which it will as historically these conditions always play out as Bill Gross ringing the alarm bell demonstrates.
If I were advising the kids today I would tell them the SUPER BIG SHORT is to short the ETF market. As this SUPER SHORT comes into position ( and it will ) those betting against the speculation bubble will reap in untold wealth and fortunes on the SUPER CRASH.
What is so sad for investment banker economists like myself is that the failed policies can still even with this level of system abuse be resolved for all peoples in all nations. Competition will continue to destroy our way of life. Cooperation will resolve system flaws and reset the landscape. Time is running out however.
It will take everyone. Russia, China, the EU an all the rest of us. Yet no one is leading the cooperation revolution.
I have laid out the solutions in this blog publication series. I have published deeper versions more complete blue prints for world leaders in my book REDEMPTION THE COOPERATION REVOLUTION. The step by step economic recovery is presented inside for global discussion. That discussion is slow but it is going on. Thank God. If enough time remains.
One contagion event to the economic system and the house of cards, the real one not the sit com, falls. Hillary and Trump both have the information on the problem and both have repairs that are closer versus farther apart. Another thank God. Both leaders have been unfairly election SPUN which is too bad as both carry a high torch to solve these issues.
Obama knows the problem but as a lame duck historic first Black President he has limited agenda’s he can complete in the few months remaining. He is setting a positive field of options in play for the next administration. More is being done behind the scene’s than the current team will ever get credit for and this issue is not Obama’s creation it is inherited and started in Dec 1999 with the smashing of the depression fire walls on RISK taking and SPECULATION with institutional resources once better regulated and now unregulated.
The SEC in America ( God Bless Mary Jo ) was given the largest new mandate to regulate digital markets – without the legal resources they have requested of congress. While their burden to make markets safer is larger than ever Congress has CUT BACK THEIR FUNDING. How could that be given the risk to the entire system?
Could it be that the largest lobby is now the FINANCIAL LOBBY globally where the speculation is larger than national treasuries or Fed capacity to influence or in any way moderate? There is URGENCY as Bill Goss informed us when he rang the world ALARM BELL supported by CEO SPACE and our economists and law firms and economists world wide including the IMF and World Banks.
But law makers world wide FIDDLE ( with Negative interest rates a totally failed policy ) while Rome ( the world markets ) burn to the ground. There are no fire brigades putting out the fire.
How can YOU BE SAFE? You read Kevin Freeman best selling author of GAME PLAN where he reports how to make your own game plan, as your nations are out to lobby lunch parties and are not making a plan for YOU at all.
Kevin and CEO SPACE have been lobbying law makers to install a plan we call MARS or Mutual Assured RECONSTRUCTION Systems. We argue that Mutually Assured Destruction is largely now DIGITAL WAR FARE and economic. MADD no longer works as a national defense for any nation without a plan for mutually assured reconstruction. This prevention is so low cost versus trying to recover in the absence of MARS.
But as we say the law makers are fiddling while ROME burns.
The Platinum music artist ( CEO SPACE member ) Michael Peterson wrote a song THEY FIDDLE WHILE ROME BURNS which defines the problem in music. Get a copy at least the music will vent a little for you.
As always we are helping CEO business OWNERS make their own Game Plan July 24th in Vegas at the BUSINESS GROWTH CONFERENCE in the Mid Year. Life insurance for the wallet. We hope many of you will elect to invest in insuring your lifestyle. We’ll help you win in any future market.
Berny Dohrmann- Thanking Bill Goss today— June 10, 2016