The end of stimulus? (And the start of the crash?) What the most important chart in the world is predicting.

Chris Liverani/Unsplash

Back in January of 2016 we saw what appeared to be, and in my opinion should have been, the end of the Everything Bubble blown by the word's central banking cartel.

The carnage started in the emerging markets. Highly-leveraged positions and carry trades began to unwind. That's a fancy way of saying that all the big, sophisticated investors -- who were busy borrowing heavily in countries with cheap money (the US, Japan, and Europe) and using that debt to speculate in markets offering higher yields (junk debt, emerging markets, stocks, etc.) -- began to reverse their trades.

It quickly devolved into a “Sell everything!” scramble. We saw the dollar spike and stocks fall -- with emerging markets taking the full brunt of the carnage as their stock markets rapidly fell into bear territory, their currencies fell, and their bonds were destroyed.

Until...

Very early one morning in February of 2016 everything U-turned and rocketed higher. Suddenly and magically, the panic was over. This wasn’t the invisible hand of the market at work; it was the very-visible hand of central bank intervention.

With the benefit of hindsight, we now have a clear picture of what happened. The central banks huddled together, a bold (desperate?) plan was hatched, and key printing presses around the world were sent into overdrive. In the months to follow, the European Central Bank (ECB) and the Bank of Japan (BoJ) went on a record-breaking money printing spree:

(Source)

The red arrows in the charts above mark this moment when the “markets” were saved.

Or, more specifically, when the portfolios the ultra-wealthy were "saved", as the assets within were boosted higher (yet again) by the central banks printing money from thin air:

(Source)

Addicted To Money Printing

So what caused the weakness in early 2016 that spooked the system so much? The central banks themselves.

After many years of force-feeding stimulus into the global economy to create a "recovery", the central banks have become increasingly concerned that asset prices have become too dependent on said stimulus. So in late 2015, the banks took their feet off of their monetary gas pedals for a bit to see what might happen.

They were hoping that the markets could be gradually weaned off of their stimulus dependence with few ill effects. They wanted to engineer a "soft landing", where if priced declined, they'd come down gradually and not too much.

That didn't happen.

Instead, the cheap-money-addicted markets instantly started expressing massive withdrawal complications.

To re-acquaint you with how quickly things were devolving back then, these are news headlines pulled from an article I wrote back in the middle of January 2016:

Sound familiar at all? It should. These sound exactly like the headlines in the news today, here in May of 2018.

We are still paying the price from 2008, when the central banks committed a massive error by not allowing the markets and their bad debts to actually clear. Yes, it would have been acutely painful; but we would have been through the worst within a year or two and in the process restored the system to a much healthier and sustainable state.

Instead, the bad actors were protected (and rewarded!) and the root fundamental problems were literally 'papered over', left to continue to fester unobserved ever since. Similarly in early 2016, the central banks once again committed the same sin by rescuing everything with another wall of fresh, thin-air money.

To drive home how much, below is a chart showing the yearly change in world central bank balance sheets. The relative ‘area under the curve’ of each major period of money printing gives us a sense of the scale. To help you eyeball it, I’ve placed similar-sized orange rectangles in each area. Key to note is that central money printing has been increasing -- not decreasing -- the further out we've gotten from the Great Financial Crisis:

(Source)

If we've been in "recovery" for years now, as the central banks have been touting, then why has 2016-2108 seen the most stimulus ever injected into the system?

History has taught us that we should trust or leaders' actions far more than their words. And their actions at this time indicate panic.

What is it that has them so worried? We should all ponder that question long and hard. I’m convinced that they know as well as we do that, once the over-inflated ““markets”” created by the central banks can no longer be sustained at their current nose-bleed heights, the damage will be extraordinary and unstoppable.

The End Of Stimulus? (And The Start Of The Crash?)

The pain of the 2008 crash will seem like a mere flesh wound compared to the devastation the next deflationary wave will wreak.

Of course, the central banks have no interest in seeing that happen and will, once more, do all they can to "rescue" the markets.

But will they act in time? More to the point, given all of their very public commitments to raising rates and reducing their balance sheets, will they allow a market correction to happen in the near term? (presumably, so they can ride to the rescue soon after as "saviors")

Politically, the prospect of showering even more wealth on the 0.001% is going to be a tough sell. This is especially true in Europe -- in Italy, Greece and Spain where the populace is suffering mightily already and is in no mood to further enrich the ultra-wealthy.

So it would seem that the central banks, at least publicly, have to stick to their stated plans to reduce their levels of money printing/balance sheet expansion.

As of right now, they are on track to end worldwide simulus in early 2019, when their collective net change in assets will dip below $0 for the first time in many years:

(Source)

Given the importance of central bank purchases and market interventions, the above chart is probably the most important one in existence for divining where financial asset prices are headed.

If global monthly stimulus indeed drops to $0, then Watch out below!

Who know if the future will plays out anything like the projections given above? The central banks have proven weak-kneed at every tiny moment of market wobbliness. To date, they've chosen to print and pent and then print some more at every opportunity where the "“markets”" might have corrected.

But we all know that this charade cannot continue forever. Sooner or later it has to stop. Given the blow-ups we're now seeing in the emerging markets, there’s clearly serious trouble brewing somewhere in the system.

In Part 2: The Breaking Point Is Upon Us we provide plenty of data to support that claim.

The currencies and bonds of five countries are now in the danger zone, and many more teeter on the edge. My analysis is that the central banks will resort to their usual money printing to resolve the issue, but for reasons I explain in Part 2, these efforts will fail at some point in the next year -- and spectacularly so.

When today's Everything Bubble bursts, the effect will be nothing short of catastrophic as 50 years of excessive debt accumulation suddenly deflates.

Given the dangers involved, you should expect the central banks to 'go nuclear' in thier deflation-fighting efforts by sending “money to main street” -- likely in the form of a universal basic income, or a check from the Treasury refunding your last 3 years of tax payments, or maybe even an electronic deposit directly from the Federal Reserve into your bank account.

That's when the inevitable fiat currency crisis will begin in earnest. At that time you’ll need to run, not walk, to buy anything with intrinsic value that can't be inflated away -- before your currency becomes worthless.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

Anyone paying attention can see that President Biden is in dire straights come 2024, regardless of who his opponent may be. His administration has been workshopping several ideas to try and craft just the right message. One that will cut through all the noise (failures) and put him on a more solid footing should he go head-to-head in a rematch with the former President.

Biden called in the big guns and he wasn't afraid to call in a few favors either. He drew on his stint as VP and called Anita Dunn out of the bullpen and tapped the Center for American Progress Action Fund to try and help pull this one out. After an exhaustive six-month-long study into how President Trump was able to summon the magic of MAGA — they finally feel they have the winning message.

Dunn has gotten sloppy, however, since her days in the Obama administration. We obtained her contemporaneous notes and emails showing how they coined the term "ultra-MAGA," trying to get a little "extra pop" to his rhetoric. The leaked emails also show the evolution of the messaging over that same six-month period.


[The preceding Memo was a parody written by MRA writers Josh Jennings and Jon Boldt – not the Biden administration.]

Almost every week, new incriminating evidence is mined from Hunter’s wild laptop. And the proof is mounting that President Joe Biden is lying about his knowledge of his family’s crooked deal-making. Everyone knows Hunter Biden is a seriously degenerate guy. Anyone who has handled his infamous laptop needs a tetanus shot.

The salacious stuff on the laptop is sad and pathetic for sure, but that stuff is NOT what is most relevant to the United States. Glenn Beck exposes how the laptop is REALLY about Joe Biden, his abuse of power as vice president, and his ongoing denials now as president.

Now that the 2020 election has passed and their man is in office, the mainstream media have suddenly decided to admit Hunter’s laptop is not Russian disinformation after all. No one has done more research into the Biden family corruption than journalist and best-selling author Peter Schweizer. He has researched the depths of Hunter’s laptop and found more than racy photos. “These aren’t HUNTER’S business deals,” Peter says, “they benefit the WHOLE family.” And he has the emails to prove it.

But the mainstream media still insist President Biden is as pure as his thinning white hair in all of this. As Glenn reveals tonight, he is not. But will anyone in the Biden family see jail time? Americans are fed up with two sets of rules – one for regular citizens and one for the ruling elites.

Watch the full episode of "Glenn TV" below:

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

Intelligent people know that wokerness plagues society and must be ridiculed and eradicated from conversations. But what happens when people lose their jobs for calling out the absurdity of woke ideology? What happens when corporations and media sources weaponize wokeness?

Here are five videos that will help us better understand a few of the many issues that wokeness inflicts on society and how we can stand against it.

Bye bye, Target. You crossed the line!

In this clip, BlazeTV host Allie Stuckey of "Relatable" explains how Target recently announced the sale of chest binders and "packing underwear" for women. She expresses how children can be negatively impacted by the sale of confusing clothing items for people suffering from gender dysphoria and the importance of loving the body God gave us.

Today, Allie notices that Target's stock experienced a 35-year record drop. Apparel was named as one of the two underperforming departments. Was pushback from critics of gender-affirming apparel the cause? It is hard to tell, but Allie encourages her audience to continue speaking out when corporations cross the line by making harmful products available for sale to the public.

Listen to the podcast here.

Want more from Allie Stuckey?

To enjoy more of Allie’s upbeat and in-depth coverage of culture and politics from a Christian millennial perspective, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Wokeness can get you fired

In this clip, Stu Burguiere covers a story about a man who challenged Black Lives Matter using nothing but data and was fired.

Here's the story: "I had been at Thomson Reuters for over six years—most recently, leading a team of data scientists applying new machine learning and artificial intelligence algorithms to our legal, tax and news data. We advised any number of divisions inside the company, including Westlaw, an online legal research service used by most every law firm in the country, and the newsroom, which reaches an audience of one billion every day around the globe. I briefed the Chief Technology Officer regularly. My total annual compensation package exceeded $350,000." Read more

"We live in the era of woke religion," says Stu.

Listen to the podcast here.

Want more from Stu?

To enjoy more of Stu's lethal wit, wisdom, and mockery, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Coca-Cola circumvents Constitution with TERRIFYING mandates on diversity

Glenn Beck loves Coca-Cola. So much so, in fact, that he refuses to drink Pepsi if Coke isn't available. But ... he says the time has come for him to give up his favorite soda. Why? Because Coca-Cola just announced some terrifying new company policies on diversity and equity. It sent out notices to all partnered law firms, demanding a required percentage of diverse attorneys on any legal team working for the corporation. The notice says all legal teams also must report these numbers quarterly and they will lose Coca-Cola's business if they do not comply.

"Equity is not the same thing as equality," Glenn said, adding that equality means we all have an equal chance, while equality means we all have the same outcome.

Glenn explains how mandates like this could affect everybody — even the guy working on the factory line or the truck driver delivering the drinks. Glenn also explains how Coke's new move is nothing less than a circumvention of the Constitution, and he predicts more companies (especially those in support of the Great Reset) will follow with similar policies, too.

Listen to the podcast here.

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Coca-Cola takes a 'pause' on woke initiatives after after pressure from the Right

Glenn followed up on a story about Coca-Cola becoming the poster child for how a corporation could shove leftist ideologies onto its consumers. The company suspended advertising on Facebook in a push to censor former President Donald Trump, published a manifesto about racial equity, and demanded all legal teams working for Coke meet certain diversity quotas.

But, after Trump, Sen. Ted Cruz (R-Texas), Sen. Rand Paul (R-Ky.), and many other conservative voices called for a boycott of the company's products, Coca-Cola appeared to shift directions.

Read more on this story here.

Listen to the podcast here.

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Calvin Klein's gender blender ruins sex and Mothers' Day

Chad Prather reflected back to the Great Depression era of enticing photographic entertainment, otherwise known as the callow and deprived years of his youth, when a Calvin Klein pictorial of old would have represented something exciting, something to, say, think about at the end of the day. Had he run across this present weird concept at that age, he would have either been disgusted on sight … or possibly really disgusted when his dumb a** put two and two together the next day. Anyway, his point is: Has the whole world gone crazy? Do we really need this? At this inclusive embracing point in our recent history, what in the world makes Calvin Klein feel the need to be the standard-bearer for a lifestyle screamed largely into existence by a very vocal minority?

Listen to the podcast here.

Want more from Chad Prather?

To enjoy more of Chad's comedy, craziness, and common sense, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Former Disney artist SPEAKS OUT: ‘It’s time to do something’

A former Disney artist, who wishes to remain anonymous, joins Glenn to describe WHY he recently took action against his former employer: ‘I'm tired of watching my country go down the drain. And it's time to do something.’ Today’s woke Disney is not what Walt once imagined, he says, and his recent video release — "It’s A Woke World After All" — exposes Disney’s large stray from its roots ...

Listen to the podcast here.

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Rolling Stone magazine on Sunday published an article that argued in no uncertain terms that the suspect who grotesquely took the lives of ten people in Buffalo, New York, last weekend was a "mainstream Republican."

Like so many in the corporate media, the article's author Talia Lavin — who in 2018 resigned from the New Yorker after falsely accusing a combat-wounded veteran and ICE agent of having a Nazi tattoo — has painted the Buffalo killer as a right-wing, white supremacist, Tucker Carlson-worshipping conservative who is "gripped by a racist delusion."

On the radio program Tuesday, Glenn Beck revealed what the killer actually wrote in his alleged "manifesto," which proves he was far from a freedom-loving constitutionalist, and explained why blatantly ignoring his words will only make the problem worse.

"The corporate media has, from the very get-go, tried to associate [the killer] with the Republicans, to say that he's a conservative, to say that he got all of his training from Tucker Carlson," Glenn began. "But you know it's weird, in the 180-page document authored by the shooter, he doesn't mention Tucker Carlson — not even once. Not at all. There is one mention of Fox News, and it's an infographic showing the top Fox News host, such as Maria Bartiromo and Greg Gutfeld, as being Jewish. He also says Rupert Murdoch is a Christian Zionist who may have Jewish ancestry though it's never been publicly admitted," he continued.

"Oh, another thing. Ben Shapiro is mentioned multiple times, including as an example as the 'rat of the Jewish people.' So gosh, that doesn't sound conservative to me, doesn't sound Republican, doesn't sound like he's learned anything from anybody that is on the right. Moreover, he has described himself as an ethno-nationalist and eco-fascist national socialist. He loathes libertarianism and conservatism in particular."

Watch the video clip below to hear more of the criminal's own words, which prove he was no right-winger and certainly NOT a "mainstream Republican."

Can't watch? Download the podcast here or listen to the episode highlights below:

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.