A response to an email – The business cycle has been dead for a decade

My warning about the end of the business cycle goes back to 2013

Note to reader: There is no going back to the way things were. We are too far past that point.

Forget the business cycle, the globe is on a permanent IV-drip, designed to keep the host alive for the elites to consolidate wealth

The New World Order does not want us owning assets outside its satanic tracking system. It will eventually consume everything, so gold and silver are in the globalists’ cross hairs. 

The contrived economic collapse of 2008 allowed the globalists to assume control of all the financial markets. Prior to this, the markets were more free and subject to natural forces. One could use economic principals and simple deductive reasoning to formulate investment theses.

Since 2008,  a brand new set of synthetic economic and financial laws have arisen. Now success in investing and trading relies primarily on a person’s ability to anticipate and interpret official intervention in the marketplace. 

Goldbugs Can Expect More Losses – Chris Pirnak (April 8, 2013)

[Gold was 1,550 and silver was 28 at the time of the writing]

I received an email yesterday from a reader asking me if the business cycle was dead.

Question. With all this unconventional monetary policy, do you think market cycles are dead as we have known it?

Here was my response (edited for grammar and spelling)

Thanks for the email.

The elites are not just keeping themselves intact, but with their central bank money that is printed out of thin air, they are consolidating their wealth.

This next point is important to keep in mind. Recall from my prior posts that the interest that is generated from the Central Bank sovereign debt holdings is transferred back to the Treasury. Even though the central banks won’t make money on the interest, the money was conjured up from nowhere and they now own those assets free and clear. They can keep the scheme going a long time.

As long as inflation remains low they can continue this scheme. It may last for years. When inflation becomes out of hand, they will no longer be able to do any QE. But the more debt that’s generated and hoisted onto the economy’s balance sheet, the more of a deflationary drag the debt burden becomes. This is why we are seeing little inflation on the consumption level. A greater percentage of the economy’s output is devoted to servicing outstanding debt. There’s just so much money left over to bid prices up.

That’s very important to think about. The elites are using this terminal phase of the fiat monetary system to gather up as much of the world’s assets as painlessly as possible with no real money out of pocket. They hoist the assets on the central banks balance sheet and they use the cheap leverage [of low interest rates] to buy up more. [All this debt creates ever-larger pools of monetary equivalents that are used to buy up more assets; only a tiny amount leaks out through higher consumption].

This is why I keep pounding on the table for people to buy income-generating assets. This is the only thing that will keep us intact as the scheme unfolds further.

As for the asset cycle and the market cycles, that has been revoked for about a decade now. As long as the central banks continue to intervene in a ham-handed way the business cycle that you and I have grown up with is dead. We can no longer look to the asset cycles and to the natural rhythm of the marketplace for ideas about investing.

It’s all about interpreting central bank policy now. This is a sad time for humanity, but it will be saddest for the vast sea of humanity that have not planned accordingly.

The world’s economy is now on a permanent IV-drip and economists are relegated to interpreting central bank actions and acting upon the likely outcomes. Gone forever is the normal business cycle.

If the central banks did not intervene this past decade, the economy and financial system would have already collapsed. There is simply not enough aggregate demand for the growing global debt pile at prevailing interest rates. The central banks are buying up the substantial demand shortfall and this has kept things afloat.

This central bank intervention can essentially grow forever and the worse the economy performs, the better it is for the elite. The elites could have already collapsed things, but it is clear they have other intentions.

Keep in mind that this is part of the conspiracy for the global financial dictatorship. Anyone who discounts this harsh reality or believes that the elites are losing control needs to be discounted heavily.