Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.
moneymetals

Chris Martenson Warns: Markets Are Making Faulty Assumptions about Growth & Resources

Chris martenson

Well now, without further delay, let’s get right to this week’s exclusive interview.

Mike Gleason: It is my privilege now to welcome in Dr. Chris Martenson of PeakProsperity.com, and author of the book Prosper! How to Prepare for the Future and Create a World Worth Inheriting. Chris is a commentator on a range of important topics such as global economics, financial markets, governmental policy, precious metals and the importance of preparedness among other things. And it's always great to have him with us.

Chris, it's been too long, but welcome back and thanks for joining us again.

Chris Martenson: Hey Mike. Thank you so much. It's great to be back with you.

Mike Gleason: Well Chris, we continue to follow your work closely, and your Crash Course video remains in our opinion, a must watch for people who are concerned about the road we are all on. You have summarized the problems we face as “expecting infinite growth in an infinite world.” No amount of money printing and Wall Street wizardry can change the fact that resources and energy in particular are limited. Unfortunately people are not always ready to listen, lots of folks tuned in following the 2008 financial crisis, but years have passed, and many Americans have forgotten about those darker times. Home prices and stock prices have been rising and few people are worried, at least with regards to the markets.

It isn't fashionable to be preaching caution, but the need for it is, we think, greater than ever. What are you saying to people who might think 2008 was just another bump in the road and now is not the time to be bearish, Chris?

Chris Martenson: Well, they have a point. They've got 10 years under their belt of the most expansive monetary policy ever, and I got dinged because I saw a lot of bearishness in 2011, and called it at the time, and of course, things just bottomed a little bit and then went up. Same thing in 2016, beautiful head and shoulders top, there was emerging market trouble everywhere, bonds were exploding overseas, and the dollar was spiking, as carry trades unwound, called that too, said, "Uh oh, this looks bad" and then was 50-degree rocket ride of monthly gains on U.S. equities after that.

Well, now we have the data, Mike. We look back, we say, "Oh, the central banks just printed more, then even more, and then even more." Most people mistakenly think the crisis was in 2008, they did a few extraordinary things on the fiscal side, they had TARP on the monetary side, there was all this quantitative easing, and then that's in the rear view.

But the truth is, the largest ever amount of printing happened in 2015, '16, and '17. Those in '16 and '17 in particular. Those were the years. If you want to understand why things denominated in freshly printed money go up in price, you don't need a PhD in economics. It's just how it works. And the central banks printed like crazy, tens of trillions, shoved it into the markets and guess what happened? Exactly what we predicted in the Crash Course in 2008.​...

Continue reading: https://goo.gl/47gwK4​

Don't be the product, buy the product!

Schweinderl