Central Banks: The Root of All Economic Evil…”This is the most globally synchronized bubble in all of modern history, and the most volatile markets since the 1930s. Buy and hold is dead for at least several years ahead… mark my words on this! It’s better to be safe and/or flexible than sorry”

Wednesday, May 27, 2015
By Paul Martin

Harry Dent
EconomyandMarkets.com
May 26, 2015

France was in a bind.

In the early 1700s, the country had run up astronomical debts from endless wars with the British. They needed money… desperately.

So, John Law — the first central banker in France — turned the Mississippi territory France had just acquired into a stock company.

Stocks were a new trend. People weren’t prepared for the crash that comes when stocks teeter too high. So, they went all in… and what resulted was one of the fastest, most exponential bubbles to build and just as quickly burst that the world has ever seen.

It took just two years for this venture to became a popular get-rich-quick scheme. Shares or parcels of land were sold to the public and financed by the government at lower-than-market rates.

Little did buyers know, the land was basically a swamp, far away so no one could see what they were getting.

Thus, the Mississippi Land Bubble peaked in 1720… then crashed over 90% in just over a year.

It’s one of the classic examples of political manipulation, and the first major financial bubble in modern history. And yes, it was engineered by a central bank.

England had a similar bubble when it turned its monopoly on trade with the South Seas Trading Company into a public stock — to pay off its debts from the same war France had with them.

The Rest…HERE

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