JIM WILLIE: Western Financial MARKETS Have Become THIRD WORLD! [transcript]

The Fed is not going to raise interest rates and eliminate profits for the big banks. The Western financial market systems are a joke.

You have debt from 2 or 5 years ago is maturing and has to be rolled over. You either find new investors or you “monetize” it. Monetize means “print money, then buy the bond.” Which is what Third World Nations do! 

The entire industrialized nations have become Third World.  The US, Japan, Europe and Britain are the 4 nations that actually had debt which was all covered by printed money.

I don’t care that they call it stimulus; printing money is not a good thing. What it means is that you have a generation of outsourcing, to exploit cheaper labor in emerging markets, which is finally causing problems with inadequate industry in the US and western Europe. You can’t send your industry to Asia and India and expect to have no problems back home.

Another big signal is the money velocity. If QE and all the bond purchases were truly stimulus, how come the money velocity is roughly at half of where it was in 2007? It’s because QE is killing the economy by killing capital. It destroys capital by eradicating the profit margins. 

This happens by this simple reaction – you do hyperinflation by the central banks and the reaction globally is to hunker down in hard assets. QE is a guarantee of systemic failure and we are starting to see it. 

The liquidity loss in the bond market is very serious. The Fed must …………………………………………..