Hm.
Peter Schiff hat seit 2002 (seit 16 Jahren) gesagt 'es kommt gleich der Megabubble-Crash'.
Dann kam der Crash 2008 (6 jahre später), und er hat es 'vorhergesagt'.
Und dann hat er wohl relativ gleich später gleich vorm nächsten Bubble-Crash gewarnt.
(
https://www.youtube.com/watch?v=UCjfLcXNumw)
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https://www.youtube.com/watch?v=maC7phpUVnoFED documentary:
Fed is an independent body, to do stuff that politicians are not able to do because so unpopular
eg Volker raising interest rate to 20% to fight inflation
Alan Greenspan was free market advocate, ayn rand fan
Reagan appointed him
Then first time stock market crash - greenspan reacts fast, makes a soft landing
Fed is for making crashes land softly.
Cooling economy down or softening crashes
Greenspan gets reputation of 'the maestro'
newspaper: 'who needs gold when we have greenspan? As faith grows in central bankd, the metal's price falls
90ies: new kind of inflation -> asset inflation
(stock market going up and other assets)
All depressions have been preceded by bubbles
Greenspan saw stock market bubble in 1996
But got criticiced for speaking, he didn't like that
Greenspan did not cool down the economy
1998 crash happened
Bailouts
and cut interest rates
financial sector doubled in the coming years
they made no regulations for finance sector,
and did not raise interest rate
greenspan thought fed can never know beforehand if there is a bubble,
fed should only intervene after a bubble
2000-2002 crash fall, from 6000 to 1200
fed lowered interest rates, it landed softly, everything seemed fine
but: small interest rates
greenspan said 2002 he does not believe in housing bubble
ben bernacke: fear of deflation, like greenspan
(but that was wrong believe)
they put interest rate down to 1%
never have interest rates been so low for so long
household debt went from 64% 1985 to 133% 2007
new measure of inflation: without house, food & energy prices
(in old measures inflation would be about 3% higher)
instead inflation went into assets -> asset inflation
low interest rates: borrowing money is basically free
-> so everybody borrowed money
fed could have stopped subprime crisis, but Greenspan didn’t want to do it
colleagues recommended it
2005 ben bernacke becomes fed chairman
ben bernacke says ‘houses never declined, there can be no housing bubble’
2007 was crisis
fed are mathematicans
they don’t know too much about market psychology
run on stock market
AIG and lehman go down
bank run was imminent
AIG was saved
FED pumped 4 trillion in all kinds of banks
bernacke ‘banks are not gonna fail, no matter what their balance sheets say’
2009
interest rate at 0%
quantitative easing
quantitative easing 2
quantitative easing 3
Bernacke ‘saved’ the system with this
Banks and companies that should have gone down, didn’t go down
ever increasing public and private debt
ever bigger finance sector (people become stock brokers instead of becoming doctors)
richest always getting richer
2011
greenspan ‘there is zero probability of default, cause we can print money indefinitely’
usa has consumed more than it produced for now more than 1 decade
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https://www.youtube.com/watch?v=Nm0m62reFuYRay Dalio:
next downturn in couple of years:
this time like 1937-1940
very different than 2008
tighten monetary policy
bond market crisis
it will be more like a grinding long term
dollar crisis instead of debt crisis
rising interest rates
currency has to get down to make bonds more cheaper,
for foreigners to buy them
30% depreciation of the dollar
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https://www.youtube.com/watch?v=leEjxuesV6IHarry Dent
Bitcoin: going down to 1k and then go up from there slowly
or holding 6k and making another bubble at about end 2019-2021
in General: biggest crash ever is coming
michael turpin IAS conference
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https://www.youtube.com/watch?v=Q3BjMUd391cMalony 2016
ways for fed to end deflation:
monetary policy:
fed went from 0.8 trillion to 2.4 trillion treasuries
1 trillion to 4 trillion quantitative easing
interest rates to 0 til 2015
fed wants: 2-3% inflation, to have buffer before deflation
1.7 trillion mortgage backed securities
fiscal policy:
tax cuts -> trump tax cut
states buying private corporate bonds
next crisis will be superglobal -> EU, USA and Japan all do massive quantitative easing
35year old bond bubble ends soon
stock market is in severe bubble
baby boomers: now a lot of baby boomers have to save for retirement
gold-silver ratio: look at it
right now is time to buy silver