The Myth Of The Eternal Market Bubble And Why It Is Dead Wrong…”The goal? I believe the goal is to consolidate total power over production and labor using the deliberate institution of a poverty-based civilization.”

Thursday, October 11, 2018
By Paul Martin

Brandon Smith
Thursday, 11 October 2018

Economic collapse is not an event — it is a process. I’ve been saying this since the initial 2008 crash, and I suppose I will keep saying it until it burns into people’s minds because I don’t think that it is a widely understood concept. When alternative analysts talk about financial collapse, we are not talking about something that suddenly happens out of the blue, we are talking about an ongoing decline that occurs in stages. This decline is happening today in the U.S. and around the world, and it has been accelerating since the chaos of 2008. When we bring up the reality of collapse, we are referring to something that is happening NOW, not something waiting on the distant horizon.

The reason why some analysts can see it and others cannot is most likely due to the delusions surrounding market bubbles. These fiscal fantasy worlds are artificially created by central bank intervention and represent an attempt to mislead the populace on the true health of the system — for a limited time. People with foresight see beyond the false data of the bubble to the core economic reality; other people see only the bubble and nothing else.

When it comes to stock markets, bond markets, forex markets and the general casino economy, much of the public has a terrible inability to look beyond the next month let alone the next year. If the markets appear good now, the assumption is that they will always be good. If the central banks have intervened for the past 10 years, the assumption is they will intervene for the next 10 years.

There is no accounting for why the bubble exists in the first place. That is to say, many people including most economists do not consider that these bubbles serve a particular purpose for the banking elites and that this purpose has an expiration date. All bubbles collapse, and the reasons why they collapse are observable and predictable.

Still, the delusion persists that all this talk of “collapse” is simply “doom and gloom,” an event that might happen many years or decades from now, but it’s certainly not a threat taking place right in front of our faces. I attribute this misconception to several popular fallacies and propaganda arguments, and here they are in no particular order…

Fallacy #1: Central Banks Will Continue To Prop Up Markets Indefinitely

The newest generation of market traders and economists were still in high school and college when the 2008 crash hit equities. For the entirety of their careers, they have experienced nothing but an artificial economy supported by ongoing stimulus from central banks. They know of nothing else and know little of history, and thus they cannot fathom the possibility that central banks will one day pull the plug on their fiat life support.

The problem is that 10 years of stimulus is nothing more than a pause in the process of fiscal collapse of a civilization. In fact, the economic decline of nations could be represented as a series of imploding bubbles; each one lasting perhaps a decade, leading to more power and control for central banks and less prosperity for everyone else.

Anyone examining the history of recessions and depressions in the U.S. since the inception of the Federal Reserve in 1913 can easily see a steady pattern of artificially inflated asset values followed by pervasive downturns that siphon wealth from the middle class. This wealth never really returns. Each new downturn cripples the financial independence of the citizenry a little more, while international banks absorb more and more hard assets.

What mainstream economists don’t seem to grasp is that central banks and international banks are ALWAYS positioned to benefit from the crash of the bubbles they create. It is the reason why they inflated the bubbles from the very beginning. Central banks are not afraid to allow markets to plummet, they WANT markets to plummet. The banks simply want to be sure they are set up for optimum benefit when the system does crash.

Fallacy #2: Central Banks Will Never Stop Stimulus Measures

I’m not sure why this fantasy persists despite all evidence to the contrary, but it does. Even today, I still receive letters from people arguing that the Fed will “never” end stimulus, never raise interest rates and never cut their balance sheet. Yet, this is exactly what is happening.

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