CHARLES HUGH SMITH'S
NEW SERIES RELEASE
Sultans of Swap
Extend & Pretend
Preserve & Protect
"Currency Wars "
"SULTANS OF SWAP"
archives open in new window
Current Thesis Advisory:
"EXTEND & PRETEND"
PDF, 62 pages
Published November 2009
Use Promo Code: INTRODUCTION
in the Email Subject
"PRESERVE & PROTECT"
archives open in new window
Follow Our Updates
AND FOR EVEN MORE ON RETAIL
STRATEGIC MACRO INVESTMENT INSIGHTS
2014 THESIS: GLOBALIZATION TRAP
NOW AVAILABLE FREE to Trial Subscribers
Reading the right books?
We have analyzed & included
these in our latest research papers Macro Analytics videos!
OUR MACRO ANALYTIC
John Rubino's Just Released Book
Charles Hugh Smith's Latest Books
Our Macro Watch Partner
Richard Duncan Latest Books
F William Engdahl
OTHERS OF NOTE
2015 ROADMAP TO CRISIS
A Fiduciary Failure
Previous Annual Thesis Reports:
- 2000 - Extend & Pretend
- 2011 - Currency Wars – ‘Beggar-thy-Neighbor’
- 2012 - Financial Repression
- 2013 - Statism
- 2014 - Globalization Trap
- 2015 - Fiduciary Failure(see free sign-up below)
EXPANSIVE CREDIT CREATES EXCESS SUPPLY & DEMAND
WHICH EVENTUALLY REACHES AN EQUILIBRIUM
(If rate of expansion is not increased further)
- BRINGS FORWARD DEMAND, WHICH LEAVES A POTENTIAL DEMAND RATE VACUUM
- MEANWHILE INFLATION REDUCES REAL DISPOSABLE INCOME WHICH REDUCES RATE OF DEMAND GROWTH
SHRINKING AGGREGATE DEMAND THEN REDUCES COMMODITY PRICES WHICH LEADS TO COLLAPSING COLLATERAL VALUES SUPPORTING CREDIT EXPANSION
THE OIL SHOCK IS ONLY YOUR FIRST SIGN!
Central Banks by creating 'Excessive' INFLATION actually sow their eventual destruction by creating DEFLATION
- 'EXCESS' INFLATION: This is considered Inflation creation when the business cycle needs to contract. I.e. 2% targets during a period of systemic deleveraging.
- ‘Excess Inflation’ occurs because a prime ‘unwritten’ directive of all central banks is to ensure its sovereign government debt can be serviced.
- ‘Excess inflation’ results from central banks being forced to push negative real interest rates too low (to protect debt holders) relative to real economic expansion and capital wealth creation.
- DEFLATION: Can more understandably be defined as "any increase in the purchasing power of nominal wages".
- The rise of software, robotics and global wage arbitrage is resulting in wages not rising along with prices. As a result, everyone who depends on earned income is getting poorer.
- For the actual real-world the result of central banks easing, money pumping and zero interest rates is actually Deflation of real wages over a longer period of time.
- Central bank easing and zero-interest rate policy (ZIRP) fuel over-capacity which leads to declining prices: deflation with a capital D.
- Central bank easing and zero-interest rate policy (ZIRP) additionally fuels malinvestment which leads to overvalued collateral and an eventual collateral collapse as NPL (non-performing loans) debt cannot to "rolled" (i.e. no one no longer wants to accept the realistic financing risk).
- PURCHASING POWER: The store of Purchasing Power is true WEALTH which governments are effectively transferring from savers to the sovereign Treasury as issuer of new money & credit.
All the phantom collateral constructed with mal-invested free money for financiers will eventfully implode.
Here are the roadmaps to this inevitability.
Marching Towards a Global Fiat Currency Crisis by the End of the Decade
Look for the next Crisis to be; 1-Global, 2 Politically Initiated and 3- Implode from the Unregulated $700T SWAPS / $72T Shadow Banking Complexity
Signup for your FREE copy of the GordonTLong.com 2015 THESIS PAPER
184 Pages of Charts & Facts on where the "Fiduciary Failure" crisis will lead in 2015-2016
No Obligations. No Credit Card.
AVAILABLE IMMEDIATELY TO TRIAL SUBSCRIBERS
Request your FREE TWO MONTH TRIAL subscription
PUBLIC RELEASE - FEBRUARY 2015
Gordon T Long
Publisher & Editor
Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that you are encouraged to confirm the facts on your own before making important investment commitments.
© Copyright 2013 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or suggestions you receive from him.