👉Mohamed El-Erian Warns We have a distorted Zombie Market ,The Economy is in a very deep hole !!

👉Mohamed El-Erian Warns We have a distorted Zombie Market ,The Economy is in a very deep hole !!




Today we have Banks that trade government bonds rather than lend to business. Corporates see more value buying back their shares than investing in their businesses. The distortions are enormous. And it’s the central bank that did this because its tools are wrong. The monogopolies are controlling everything. These moted aggregates will charge everyone what the market will bare, this racketeering and ability to blackmail communities and control labor is the economic separation point between those who work as the management of these aggregates and those they dupe and call associates, who are living in an illusion of austerity, masked by a litany of corporate euphemisms. The level of debt is unpayable. China and the US are no longer trading, and China isn't lending the US any more money. I strongly suspect we will be at war with China before very long. These "cyber" attacks are being blamed on China as well. If people don't know the game is rigged, then they haven't been paying attention. The Stock market now is pure speculation and gambling. The fall is going to be epic and breathtaking. The harder you push something up the hill, the faster it rolls down when the support gives out. This is a copy of the DotCom Bubble except on steroids. Dollars stopped being money in 1970. Since then, they have been toilet paper. Albeit toilet paper in demand. When the demand for US toilet paper disappears, the markets will stop going up. Debt Clock at $26 Trillion plus!! Eventually, the FED via Blackrock, Goldman and JP Morgan will own everything. Centralized Confiscation and Consolidation through Counterfeiting has never been easier!! In a recent interview, Mohamed El-Erian, the chief economic adviser at Allianz and the former CEO of PIMCO and author of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse. Mohamed El-Erian, the chief economic advisor at Allianz, explained that the stock market is in a "win-win" mindset as the Federal Reserve provides the continued stimulus. He warned of distorted "zombie markets" and explained how some sectors would benefit while others will miss out during the economic recovery. Mohamed El-Erian has had an extraordinary career as an investment analyst, investor, and market commentator. Widely regarded as one of the most astute observers of global economic trends, Mohamed El-Erian is famous for having coined the now-ubiquitous phrase ‘the new normal.’ Five years ago, he was worried that the global economy might take years to regain its footing. Now El-Erian worries it could fall off a cliff. Beware not just of “zombie” companies but of “zombie markets” as asset prices become distorted and detached from fundamentals, he warned. And that he is rather skeptic about the recovery. It will be a long and rather flattish recovery. And we have to understand that we're going to come levels that will still be eye-popping notwithstanding really horrible not as we've seen so far. So we are going to be in a very deep hole. And unless we get policy accelerators, it will take us quite a long time to get out of it. They are going to be a very wide range of winners and losers in this economy, not only among companies but also unfortunately among people with the most vulnerable segment is most at risk. We've got to address productivity. It's about infrastructure. It's about retooling and retraining of labor. We've got to address household economic insecurity. It's about better safety nets. And then we've got to do something about globalization. It's one thing to de-globalize. It's another thing to de-globalize in a disorderly fashion. And he added: I think companies are not coming back. We're going to have, unfortunately, lots of bankruptcies. Once a liquidity problem becomes a solvency problem, you cannot reverse it that quickly. Certain activities that happen to be very labor. Intensive hospitality is very labor-intensive, is not coming back. Then you have existing companies that are now no longer talking about resizing. They're talking about wide sizing. And most of them, unfortunately, wide sizing means less labor. So existing companies will also be shedding labor. And then the sectors that are going to be really favored in the next couple of years. Other than health care are not that labor-intensive. So I worry that what started out as furloughs now becoming short term unemployment may become long term unemployment, then people dropping out of the labor force. And that is problematic both from the supply side and the demand side. That's why I keep on saying it's really important to identify likely trends and do something about them now because none of this is predestined. We have the tools to address these things, but we have to change our mindset.f the FED continues doing what it's doing, it will become a big part of the problem. All that the FED can do is ensure financial conditions that encourage risk-taking, encourage companies to borrow. Why the hope that the more risk we take, we boost up asset prices. The more we boost up asset prices, the better off we feel, and the better off we feel, the more we consume, the wealth effect. And then on the other side, the hope is by making bond financing really cheap, it will encourage companies to borrow in order to invest. But what we've discovered is that when that happens and the underlying economy is not fixed. Companies borrow for debt buybacks, for stock buybacks. They borrow for financial engineering, basically. And people take on too much risk. And you don't get to the real economy. So you boost asset prices. You boost debt; you boost everything financially. But you don't get through to the economy. That is the way that the FED is constructed. It can only go through asset markets. So you need entities that can actually address underlying productivity and underlying demand. It is local government. It is the state government. It is the federal government. It is also collaboration with other countries. Even though we've got de-globalize, it doesn't mean we turn linkages with the rest of the world off completely. We're still going to have supply and demand linkages. They'll be less pronounced than they are now. It's also companies role. I think one element coming out of this crisis is greater social responsibility. And companies realizing that they have a role to play in making sure that we have more inclusive capitalism. The markets are not the economy, Mohamed El Erian explains. It's not about companies. It's not about the economy. It's about a backstop. It's about the confidence that someone with a printing press in the basement. Massive willingness and ability to support financial markets, as they have done for the last ten years, will continue to do so. So if you're an investor who's willing to embrace this moral hazard, if you embrace it, you end up with this win-win mindset. I win if I guessed correctly about the economic recovery. And I still win if I guess wrong because I'm going to be bailed out. And the minute the FED went into the high yield market, and the FED said, I'm willing to take on default risk, I'm willing to take on capital impairments. In the marketplace, the difference between high yield and equities in the capital structure is not that big. So the mentality of the market is, well, if they're willing to do high yield, they'll be willing to do equities, because after all, the last thing the FED wants is a financial crisis to make the economy worse. So the market feels very strongly that it basically is holding the Fed hostage. I tend to agree with El-Erian. We are all fed up with the fed inflating asset prices and contentiously distorting markets and causing capital misallocation. The global economy is now run largely by unelected central banks. Elected governments are failing in their basic job to take care of the economy and why this might lead to a massive unmanageable crisis. The bankers are global. They force the entire world to work for their hyper printed worthless banknotes TO STEAL EVERYTHING. It is all of us serfs vs the fake money cartel. All money backed by violence; Serf or die. Mohamed El-Erian knows the global economy as an investor, a public servant, and as an analyst with a rare ability to grasp its essentials. He has an urgent message to convey here: Central banks cannot continue to carry the global economy on their backs for much longer without a high risk of a very bad global outcome. If he’s right—as he has often been before—all of us, governments, business, finance, and individuals, need to understand why and how to take evasive action. He is right that The central banks, led by the Federal Reserve, have been misguided in pursuing very low-interest-rate policies. They have flooded the global economy with liquidity, subsidizing borrowers, and starving savings. The result is a serious tilt away from capital investment in their attempt to prop up failed fiscal policies. Rising interest rates would have a positive effect in changing attitudes to future growth. Central banks are forever fighting today’s war with yesterday’s weapons. Every recession is different, and central banks have to worry and flail their way back to a smoother ride because this time is different. We’ve seen money supply tools come and go, interest rate tools lose their impact and, of course, regulation all but disappear. The current tool is QE, necessary because so much of the money supply is beyond the control of the Fed. It will probably prove outmoded next time. The governments should reject the financial engineering that has opened gaping holes for big finance to exploit, and instead focus on economic growth policies so the markets will respond (more) rationally. But while economists and bankers argue about the significance of cyclical and secular drivers, they’re still in little enders vs big enders hell. The view from above is completely different. Until and unless political leaders rein in the banks’ ability to create money at will and grow too big to fail, this period will continue. And central bankers will not have tools to do their job. The Governments haven't got their act together in the years since 2008, and it's hard to see anything that's moving in the right direction. The EU is still a mess with little solved in the Euro area, Britain is preoccupied with Brexit, Japan have made much more progress with the funny money leg of the three policy changes and the USA face a farcical Presidential election between two of the least trusted candidates that have ever stood. Geo-political tensions are growing, and it's hard to imagine that social unrest won't rear up in country after country. Take away the Fed and the markets crash. Zero interest rates and record amounts of debt will be catastrophic for the main street. The economy is on life support. There's absolutely no need for the Fed to be involved in corporate financial asset markets, and they should stop manipulating the free market mechanism. There's plenty of money on the sidelines to buy distressed assets. It's just a matter of price. The Fed prevented the smart and prudent investors from profiting from the folly of the speculators in the shadow banking industry. These people got a crony capitalism bailout from the Fed, which prevented them from losing trillions of dollars to the benefit of other investors. It's actually very disturbing because the Fed doesn't have the mandate to do that type of intervention. Money cannot be printed. Only FAKE money can be printed. Money can only be minted. The money is fake & you are just making the money printers richer. Buy long-life shelf food & panic hoard like the virus is serious! Who knows what $100 will be worth in 3-6 months. The fed has created trillions out of thin air for endless wars MIC corruption and to make the stock market feel better. Only ever out of money when deplorable need something. Money printing only works if you can skim off a part of it while keeping it scarce for the 99%. Hence, asset inflation combined with high and rising costs for things the 99% must buy, sold by the 1%. Open borders for the purpose of the lowest costs possible aid with deflation while keeping cash out of the hands of the 99%. Artificially low-interest rates close the loop on why inflation is invisible except for asset prices. Working economists ignore all of this. Low-interest rates are always associated with tight money. This is not necessarily causative directly, but the FED control of interest rates by being the buyer of bonds hampers economic activity by penalizing capital. So the income stream which would normally come from capital is cut off and does not go into the economy. Also, the liability side of a balance sheet is impaired since debt becomes more expensive to discharge, and only companies that engage in fraudulent accounting like Amazon and Tesla are rewarded. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. Thank You. Anyone remember 1999 into early 2000, and what happened afterward? I do, and this is even crazier. Be very careful right now. The stock market and the real economy have never been more disconnected. Today there is no difference between trading and speculating. Investing is at a whole different level. It means you are fully behind someone's plan and ideas, you believe in them, put your skin into them, and expect a return. Most of the people today are simply speculators looking for a quick buck. That's not how this country was built! Today, trading and investing are almost mutually exclusive. Trading has taken over the day-to-day market, leading to extreme volatility (wild swings, sky-high volumes, etc.) that we have been seeing since the closing stages of the last recession. Today’s trading is largely controlled by the “smart” program trading, driven by sophisticated algorithms (Math/AI models). Generally, 30 to 50 major financial services companies (hedge fund, brokerage, private equity, etc.) heavily depend on smart program trading. These models decide the daily swings of the market. Just wait for it, the dollar will collapse in due time! The stock market is rising because the US government keeps injecting more and more cash into it. What does that sound like? Well, ask Bernie Madoff. Amazon is making money finally thought its stock had always risen even when it did not make money. But now it is making money, and what are people using to buy from Amazon? Credit Cards. Credit, which is Debt to the cardholder. Higher credit card debt? Yep and Amazon are one of the biggest debt makers for the American People. You do not use cash at Amazon. What people need to understand is how this is all of a piece. The stock market has become another tool of the rich elites to skin money of the middle class. The middle class, in order to take responsibility for their personal retirements, pay into the stock markets. In turn, the rich elites, by creating a huge stock market crash every decade or so, then hoover up these stocks at much lower values! The historical cure for uncontrolled debt, scandal, massive corruption, and Palace intrigue is and has always been War. While the peoples of the world protest heavy-handed oppression by authorities, nations have been busy and very quietly allying and preparing for conflict. Many of the weapons being rolled out are particularly terrifying and devastating, but no one is paying attention. Great Empires blinded by arrogance have rarely anticipated their own downfall even though all the indicators were in plain sight the whole time. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. 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Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.