Today’s rant is a preview of January’s Boom & Bust, which we’re putting out to subscribers early this round because of the holidays beginning next week. I believe that this upcoming issue is one of the most essential and all-encompassing reports on the current financial bubble, both in terms of how we got to this point and what it means for our future.
So if you are a subscriber to the newsletter, I hope that you read it. And if you’re not, I hope you are enticed enough by this preview to subscribe today. It may actually be in your inbox by the time you read this email.
Anyway, the focus this month is on the difference between quantitative easing and its impact creating financial asset bubbles, and how the central banks’ risky stimulus policies ended up creating this particular bubble even though that was not at all the intent.
Normal stimulus policies focus on expanding bank lending through money supply expansion – and that didn’t work this time with our economy at peak debt. This is why we got financial asset inflation instead of the consumer price inflation gold bugs expected from such massive money printing.
Now we’re near the top of the greatest financial asset bubble in history, and paradoxically in a time of the weakest economic recovery in history. Those two things go together like oil and water, so we’d be best served to move forward trepidatiously and with some serious caution.
Watch this week’s video to learn a little more, and click here to subscribe to Boom & Bust if you have not already.