Posted Mar 16, 2020 by Martin Armstrong
The European markets are crashing from the currencies to the debt – even the Bunds. The smart capital is realizing that this is the end-game. Central Banks are in a state of absolute crisis. We are looking at the extreme volatility that is required to eventually create the slingshot. As we head into the end of the quarter, hedge funds are selling everything to raise cash. All those who have been listening to forecasts all based on the Quantity Theory of Money, including the central banks, are losing everything because they have utterly failed to comprehend the global economy and how it truly functions. You would think after 6 years of negative interest rates in Europe, the ECB buying the bonds because there is no free market left, they would realize that their forecasts of “cash is trash” were so old school from the days of the gold standard and fixed rates.
We as a society seem obsessed with repeating the same mistakes while expecting a different result. Mistakes are supposed to be how we learn, they are not a script for repeating perpetually.
Silver has broken last year’s low. All the European markets have tumbled. The worst possible move was just made. The Fed went all-in and the markets did not respond. Welcome to the Crash of 2020. We have a lot more interesting times just ahead.