The Delusion Of An Illusion
Once upon a time there was a story created for the salvation of the world. It was crafted upon deceit and treachery. It required the entire world to follow the leader. Its leader began printing trillions of dollars and putting it into its primary banks. First the U.S. then Europe. Japan just continued to print the whole time. They coordinated their script with the financial media and the politicians. A recovery was proclaimed. There was to be no denial of this epic achievement. It was written in stone.
So as the story progressed chapter by chapter, more printing was needed. QE reflation was proclaimed a success. It was so successful that the U.S. was not only able to stop QE but began increasing interest rates with the overwhelming success of the debt fueled reflation of the “recovery”.
China continued to receive its gold for its cooperation in the illusion but it grew increasingly distrustful and tried to extricate itself from the plan with its on Yuan pathway. That created quite a fright but was quickly changed after a few convincing “chemical accidents”.
The years passed by and except for a few more unexplained deaths and accidents calm was maintained. Of course there was military positioning and saber rattling but relative disorder was maintained. The dollar remained supreme, but therein also began the problem. Much of the world began to falter as the dollar gained strength and a negative feedback deflationary loop arose. Countries began to collapse as liquidity was withdrawn to support the “recovery” meme.
So here we are with the story nearing its end. Unfortunately we have a strong dollar as the rest of the world is collapsing. Europe’s economy is collapsing and the interest rates are negative. They’re withdrawing QE…so they say….but their economy is still so weak interest rates are negative. How do they declare victory?
We are desperately trying to reach a paltry 3% with a “strong recovery”. Multiple countries like France, Britain, Italy, Spain, Venezuela are ripping apart at the seams……. So what happens? Strong dollar and the ripping accelerates? Strong dollar/higher rates and the collapsing real estate market turns into a fire? Strong dollar/higher rates and the STOCK MARKETS (plural) go from a collapse into a full fledged nuclear event? So what do you think is going to have to happen very quickly? The dollar cannot strengthen. Its going to have to get weaker. If it doesn’t then all hell breaks loose. WE ARE GOING TO GO TO SOME FORM OF HELICOPTER MONEY …..probably within the next three months. The dollar will begin a long descent down or the World burns.
Everyone is going to print. Print and then print some more. It will not be a deflationary collapse. It might look like it for awhile (like right now)….but the pitchforks are already out across Europe and they don’t want that.