There's Bubble 'In Everything, Everywhere'

by JASmius



Now you know why I like Marc Faber so much:

For months, Marc Faber, publisher of the Gloom, Boom & Doom Report, has argued that asset markets are way overvalued.

And he's not changing his tune now, even as major U.S. stock indexes ascended to record highs once again Friday.

"We have a bubble in everything, everywhere," Faber tells CNBC.

"Eventually there will be a problem when these asset markets begin to perform poorly."

The Federal Reserve's massive easing program has inflated the bubbles, he explains. The Fed has kept its federal funds rate target at a record low of zero to 0.25% since December 2008. And its balance sheet has ballooned to $4.5 trillion through quantitative easing.

I.e. printing fiat currency like there's no tomorrow, debasing its value (masked by the absence of any objective standard of worth such as gold) and camouflaging the true depressionary state of the U.S. economy.  Which, as it happens, Article I, Section 8, Clause 5 of the U.S. Constitution was specifically enumerated to prevent.

So what can burst the bubble? "A rise in interest rates, not engineered by the Fed," he notes, meaning an increase in bond yields. The 10-year Treasury yield stood at 2.57% Monday morning.

Another possibility is a global recession, Faber argues. "The big surprise will be that the global economy slows down and goes into recession. And that will shock markets."

Why?  Because this asset value "boom" isn't real.  None of it is real.  It's all a fantasy, a fiction, a monetary amphetamine bender perpetrated for politicoideological purposes by an Obama Regime that wants to keep Wall Street cronyized and corrupted and Main Street stuporously anesthetized as it finishes the task of "fundamentally transforming" the late, great United States of America into the United Soviet Socialist States of Obamerikanstan.

In so many words, the mother of all bubbles.  And when that bubble bursts?  You guessed it - yet another fresh, shiny, new crisis for Barack Obama to exploit.  A commodity of which he already has an embarrassment of riches, with no end in sight.

No wonder this old commercial jingle keeps running through my brain....



In the ruthless context of economic science, that clip is terrifyingly metaphorical of what's to come in the not-too-distant future.