“Calm” Before The Storm… “Economic Mother Nature‘s” immutable laws cannot be usurped for long.”

Wednesday, February 11, 2015
By Paul Martin

Andrew Hoffman
February 11, 2015

For centuries, if not millennia, the concept of financial “calm” had a patently obvious, nearly objective, definition. Which was, for the most part, steady economic activity; modest market volatility; and, for the most part, no major cataclysms – either perceived or actual. Sure, stocks had big moves – both up and down. However, within a largely free-market environment, such moves were neither worrisome nor particularly impactful on other business sectors; let alone, assets classes, global economics, or sovereign stability. When “major events” shocked the markets – such as the 1987 crash, for example – they rarely lasted long; particularly in the post-1971 fiat world, when an unsuspecting world didn’t realize the artificial debt capacity it was “papering over” such events with would inevitably run out.

Prior to 1971, financial and economic shocks were, for the most part self-correcting. Whereas, after the gold standard was abandoned – particularly after the global economy peaked in 2000, and broke in 2008 – said shocks were, as a policy, “absorbed” by extraordinary monetary policy. To wit, this incredible chart depicting the expectation that, for the first time ever, Central banks are expected to monetize more than half of all 2015 issuance.

I have been a financial analyst for 26 years, and never could have imagined that the profession I so diligently studied would be rendered useless by such manipulation. However, this “new financial order” decidedly has a “fatal flaw”; which is, that no matter how much markets are rigged; economic data fudged; and perception “molded” by propaganda, “Economic Mother Nature‘s” immutable laws cannot be usurped for long. When losing money in financial markets, “not long” may be an irrelevant term. However, in the big picture of things, it really and truly isn’t – particularly if one avoids catastrophic investment risk (like mining shares, for example).

The Rest…HERE

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