All Roads Lead to the Bubble-City Danger Zone

Bubbles always pop, whether they exist in stocks, gold, confidence in the media, belief in central bank omnipotence, real estate, or debt. Yes, it could happen anywhere, and based on history, is likely. This time is not different, unless it will be worse…

From Jared Dillian: “The Everything Bubble”

“Also, nowadays, we have no idea what kind of malignant political forces will be unleashed if we have a real, hard-landing recession …

Does it all get pinned on Trump? Probably.

Does it push the left further left? Probably.

Does it increase the chance of real instability in 2020? Yup.

I have been making bearish noises for a while, but I haven’t been willing to stake my reputation on it.

I am now willing to stake my reputation on it.

I think we’re very close to a downturn. I will be surprised if this doesn’t come to pass within 6 – 12 months.”

From Steve Seville: “The Central Bank Moment”

“These days, however, the price of credit is distorted primarily by central banks, and the central bank is most definitely not a natural part of a market economy. Therefore, what is now often called a ‘Minsky moment’ could more aptly be called a ‘central-bank moment.’”

I expect the next ‘central-bank moment’ to arrive within the coming 12 months. I also expect that when it does arrive it will generally be called a ‘Minsky moment’ or some other name that deftly misdirects the finger of blame, and that central banks will generally be seen as part of the solution rather than what they are: the biggest part of the problem.”

From Andy Hoffman: “Most Likely to Catalyze The Big One”

“… it’s difficult to believe America is not angling for Middle Eastern war; ‘coincidentally’ in the best interests of the kings of terrorism themselves, Saudi Arabia; which just happen to be the last hope for the rapidly dying Petrodollar standard. To which, I can only say that if I’m even remotely close to the mark, the world – and gold Cartel – are headed for a potentially catastrophic chain of events.”

From Steve St. Angelo “Russia vs USA: Where’s the Gold Going?”

“The U.S. is in serious trouble as it used extreme leverage in financial and economic markets. When this leverage finally cracks, those holding real gold and silver will experience the insanity taking place in the CRAZY CRYPTOCURRENCY MARKET.”

From Ted Butler: “A Rigged Game”

“Data published by the CRTC, the federal commodities regulator, indicate that JPMorgan and two or three other large financial institutions, have never taken a loss, only profits on every single silver trading position they have established over the past nine years ..”

“There is no question that the silver market is the most rigged game in the world because no one would be able to establish a more perfect trading record than what JPMorgan and a few other big shorts have achieved.”

Roxy from “Why Not Gold:” “Which Way Will Gold Go Now?”

“Today ALL is rigged and manipulated, the news, the markets, public opinion, politics, stock markets, you can’t believe anything…

“The globalist’s game is to rule the ignorant masses through division while repeatedly stealing the wealth from those that create it. We are in an ‘Everything Bubble’ and our stock/bond accounts, our home valuation and our bank accounts are next. When the markets drop this time the whole system will implode taken down by the world’s $2.25 Quadrillion in derivative debt.”

SUMMARY OF THE CURRENT DANGER ZONE:

The ‘Everything Bubble’ has arrived. The current narrative tells us “all is well, nothing to see here, Russia did it, look over there etc.” But bubbles always pop and many implosions are possible. Jared Dillian sees bubbles in:

  1. “Real estate in Canada, Australia, and Sweden
  2. Real estate in California
  3. Cryptocurrencies
  4. FANG, plus Tesla and a few others
  5. Corporate credit
  6. EM sovereign credit
  7. Autos
  8. Indexing”

There are other bubbles that could implode… Everything is connected and it only takes one implosion to create market misery reminiscent of 1987 or 2000 or 2008. Have you asked yourself the following?

  1. What could go wrong?
  2. Why should I believe the narrative that is promoted by the media?
  3. Do I own enough gold and silver that I can sleep well in the event of a downturn, correction, crash, or reset?

Final Thoughts:

 

 

 

Read: “How to Profit From Irrational Low-Inflation Exuberance”

 

Gary Christenson

The Deviant Investor