Here Comes the Hyperinflationary Bailout Endgame
By James West
Thursday, 28 June 2012
In 2009, I wrote that the stimulus, tarp, and zero interest rates were going to result in a rally in the stock market, but that the fundamental causes of the 2008 financial crisis, of which the housing bubble collapse was only one outcome, were still present, and that the financial stimulus, which is effectively a tax on future generations, would compound those symptoms.
As our markets slowly melt down again, and we head back towards the 2008 lows in market values, there is no consolation in being correct. Portfolio values continue to degrade, and disinvestment en masse is incrementally moving the world economy back into the state paralysis it entered in September 2008. The TSX Venture market – in my opinion, the purest indication of risk sentiment there is on the planet – is now within 500 points of its 2008 record collapse, and the only question is: “How fast will we blow through that record?”
The fuse that will ignite the hyperinflation of G20 currencies is smouldering, still damped by the suffocating effect of mass disinformation replicated and broadcast from the centrally owned mainstream financial media. But ignition is approaching, and that is the event that will catalyze the coordinated collapse of all currencies currently labouring under the duress of excess.
Some people think that the idea of the mainstream financial media being a mouthpiece for illegal activities by government and banking is ridiculous. Harry Markopolous, the gentleman who tirelessly pursued the truth behind Bernard Madoff, knows very well how willfully ignorant we can choose to remain in the face of overwhelming evidence. I’m not going to try to change any minds in that regard here. The thing about willful ignorance is its resolve hardens in direct proportion to the evidence with which it is confronted.
As predicted, Greece has led to Spain just as certainly as Spain will lead to Italy, and the half-baked bailouts that are insufficient because the sums they seek to alleviate are themselves wishful thinking on the parts of government.