Broken Markets – Until and Unless: Peak Prosperity News Update 12-29-2018



hello everyone this is Chris Martenson of peak prosperity here with your updated as Saturday December 29 2018 still last days of 2018 and if you've been watching the stock markets and the financial markets bond markets you know that this has been a month of declines and really high volatility this is going to continue into 2019 and that's our view because our operative phrases until and unless until and unless the central bank's print more money and get off of their quantitative tightening cutey and back into quantitative easing or QE we're gonna see more of this volatility and everything bubble deflating with that means stocks bonds real estate all of them headed down because they have a lot of false pricing that was driven up by the central bank's who had this brilliant theory they thought hey if people feel like the assets they own have gone up in price then they'll feel wealthier and then they'll borrow more and they'll spend more and they've been very successful at that listen you know we saw this in 2011 2013 2016 here we are in 2018 it's breaking again and and by breaking I simply mean prices of financial assets are going down you'd think it's the end of the world that that everything the Sun wouldn't rise in the east anymore if somehow stocks fell in value or something like that but this was all faulty reasoning and it was all founded on a basis that is absolutely not true and the basis is this that the Federal Reserve and the other central banks the European Central Bank the Bank of England Bank of Japan that they can somehow create wealth by magically dumping more money into the marketplaces they can't do that what they can do is they can redistribute wealth so when you read these articles like oh my gosh the 1% the point 1% got so much wealthier as if it just sort of happened it didn't just sort of happen it was a matter of policy that wealth was Tran spurred to them specifically by activists interventionist misguided ill-advised central banks who have been running these really dumb ideas since Greenspan sort of introduced this idea by the way V for Vendetta is about the power of an idea to do good well Greenspan is the opposite of V for Vendetta he must be B for bastard because what he's Illustrated as the power of a really bad idea to really destroy things so good ideas bad ideas a really bad idea was that that somehow the central banks were responsible for taming the business cycle and replacing that with something called the credit cycle now they love the credit cycle over here in bad idea of L because but you get to do with the credit cycle is be heroes you know you're throwing money Punchbowl money you know into the party and everybody loves you and you get invited to Davos and you know Senate and congressional hearings they ask you really softball questions so MS Yellen how much more awesome are things going to be this year than last year well senator very awesome because you're just printing money and everybody pretends like this is a real thing as if it mattered as if this was real wealth but it wasn't and what actually happened is wealth was transferred because those people who are at the 0.1% yeah they got a lot more purchasing power but where did that purchasing power come from is purchasing power something that you can just sort of manufacture out of whole cloth then air even the answer is no so the question when you see but a one group of people get a ton of purchasing power the question is well where to come from right so here's a simple example in Japan they decided that one way that they were gonna goosed their economy for their aging declining population which doesn't need a goosed economy banking system did different story but the decision was made by the Bank of Japan that what they were gonna do is they were gonna reduce the value of their currency and they did that hugely like 27 percent over the course of a year a couple years back and this worked great their stock market took off the profits of Sony and and all these other companies just Japanese companies really took off and here's the reason why if your sony or your Mitsubishi or your Nissan and you're selling a vehicle a car you know a TV electronic product if you're selling that in another country and it was a hundred dollars before and you sell it for a hundred dollars again but your currency is now twenty seven percent less you receive twenty seven percent more yen so on yen terms these these companies got great earnings now that was a lot of purchasing power when you have companies upgrade earnings where did that come from them well it came because the currency got reduced well who that means by definition that that purchasing power came from somebody who did come from oh it came from all the people of Japan who then found that their yen bought 27 percent less stuff from overseas and by the way Japan imports a lot a lot of food a lot of fuel a lot of other things so that Sony's great earnings came at the expense of the people that's a simple example of how a central bank the Bank of Japan consisting of unelected officials as is true across the whole central banking structure in the world decided that everybody in Japan was gonna help Sony become a little bit more profitable now that's an example of redistribution that's what the central bank's have been doing and that's what quantitative easing really was big long word that really meant reverse Robin Hood taking from everybody giving to a few and bad idea really dumb idea it's been tried before all through history and as Plutarch said the oldest and most fatal ailment of all Republic's is a gap between the rich and the poor well here we are doing it again so now you have the context to understand legi age all the yellow vest movement in France which by the way if you didn't catch it today my twitter feed here Saturday morning on December 29 just saw it the the the protesters lit a giant fire up against the gate of the Banque de France right so their central bank like people people are actually torching the main gate at the bump de France because they understand like maybe they started a lot of fires it was just random they torched the main gate to the Bank of France no they get it the people of France get it and people are waking up all over the world the central banks are not your friend they're redistributed of organizations they're reverse Robin Hood's they take from the everybody the poor and they give to the rich that's what they've been doing it's reprehensible it's crass its indefensible it's awful it's awkward it's everything but friendly and so this is what's actually at stake now and this is why I think 2019 we are not going to see the central banks come back with more QE unless something really really bad happens stock market crashes closed markets capital controls institutional failures sovereign failure something bad has to happen for them to get the political cover to say you know we just we the solution to this is to make the rich people richer again right that story's wearing thin viva la internet people are starting to figure this stuff out for their own this is what I've been writing about this week I talk about not just that conflict but also the conflict of the Millennials being really shafted by the boomers I'm sitting here as a Boomer telling you my generation shafted the younger generation simply so we didn't have to face the consequences of our own poor decisions prior so this is everybody in the leadership structure at the Federal Reserve in Congress in the US Senate decided that instead of saying wow we shouldn't run credit cycles we shouldn't have forgotten to invest in infrastructure maybe we shouldn't have had that housing bubble back in 2007 instead of facing up to all of that we went for one more dip at that punch bowl saying specifically the Federal Reserve is 100% responsible for driving housing prices back up near or in some cases beyond their former highs back in 2007 and 8 when you look at the house prices back then those weren't prices we should be getting back to those were baubles and they recreated that bubble dynamic for this one really dumb reason they said people who own homes when they go up in price feel richer and therefore the more against those homes and spend that money virtue a circle except unless you understand that your house is not an asset to be tapped it's a liability liabilities take money out of your pocket assets put cash back in your house is a liability thanks to Robert Kiyosaki for that idea which I didn't understand until he explained it to me probably ten times I finally got it your house is a liability that it goes up in price is meaningless to you except that it costs you more to maintain that house in terms of taxes insurance things like that right so the central bank's decided we're gonna make houses go up in price again the redistributive organization so who paid who lost in that story because there can't be a winner without a loser that's the nature of a redistributive organization right that's the fundamentals of communism somebody loses so somebody can win right this is what the central bank's do they're not Paragons of capitalism by the way they are deeply socialist and not if not communist sort of structures at any rate when house prices were rammed up in all these key markets the homeowners there were allegedly the winners although honestly you can't win that story unless what you sell your house take the gains and go off to some other lower-cost environment and hold on to those gains otherwise you're just if you just shuffle around it nothing happens right so all those winners with the high house prices in places like Dallas Palo Alto Seattle Boston Atlanta you name it who are the losers Oh first-time homebuyers who's that that's the younger generation so sorry we're gonna throw you under the bus along with granny on her pension savers everybody else who are getting 0% interest rates under savings as central bank's made this decision to throw an entire generation under the bus just so that a other group of people who already held the assets wouldn't have to feel the pain as much or as acutely from the past bad decisions of the central bank's now this tends to piss people off so not only do we have leggy Asian all in France but we had the Catalonia breakaway we've got brexit we've got Trump this is to continue as long as these deeply unfair practices happen but they're not just unfair they're immoral it was immoral for the central banks of these countries and in my country for the Federal Reserve to decide to throw one group of people under the bus to bail out another group of people it's absolutely wrong thing to do shouldn't happened and this is why we shouldn't afford them the respect that they seem to want the media when they pump up the Fed officials say you know as if they were anointed with some special power really ought to be doing its job and asking the hard questions and saying hey Federal Reserve official who I'm speaking to right now how is it that you all came to decide to screw over this group of people and enrich this group of people we'd love to know your thought process waiting for the media to finally begin doing his job it's not doing it and that's another story for another day so if you want to know what's going on in 2019 come by check out this most recent two-parter I've written it involves talks about all of that but really it gets down to the harder fundamental question of this period of time which is who are you and what are you gonna do given the nature of the world we live in I think it's an extraordinary opportunity I think it's an opportunity for us to wake up from a long slumber and begin to ask ourselves those vitalizing and revitalizing questions that allow us to step more fully into this life the only one we've got a little piece of time right so with that I'm Chris Martenson I will see you next time in oh oh forgot please check out the seminar that we've got it's coming up in April in Sebastopol California hey you know we go through the basics of getting ready for these times and my website and the books and things like that but we go deeper into these questions at the seminar plus you get to meet other people like you who are thinking this way and who can see the world clearly and want to talk about it so this is your chance to meet your tribe so come check that out as well otherwise I will see you next time have a happy new year you

29 thoughts on “Broken Markets – Until and Unless: Peak Prosperity News Update 12-29-2018

  • Martenson began pumping Gold in 2011 when it was at its peak. He has been fear mongering to scare people out of the stock market since 2010. The stock market has SOARED since then. He has been completely wrong every year. He is a fraud and liar and he's running a cult.

  • WHO GIVES A FUCK????!!

    If everything is so bad and terrible, then just short the markets! Short the DOW, short the S&P, etc.

  • The braintrust at the US Fed forgot that Congress would go on a spending orgy when they rates uber uber low…….

  • Human Extinction will solve all these problems we face . Can any of you claim straight faced any other occurrence can or will . No you can't . Learn to kill and sleep easy .

  • The Thai Baht is strong, yet according to Credit Sussise 1% of the people own 66% of the wealth.

    Thailand is a country of low buisness regulation and taxation.

    Thailand is a cash society, we literally pay for land, houses and cars with cash.

    Minimum wage is $6 a day, $10 a day is a good wage.

    WHY ARE THAI PEOPLE SO POOR?

    I think the same way as you, so am trying to make sense of this wealth difference and povety.

  • Kinda insulting to call Capitolist theft socialism. Capitolism has always been extractive of the wealth of the many and concentrate it to the few. The illusion of Capitolism "generating wealth" only exists because two continents of peoples where genocided after 1492. The ultimate wealth transfer.

  • Great info Chris you do a great job. You are about the last 3 or 4 YouTube producers, that are worth watching.

  • So much of the US economy is based on debt….cars, education, housing etc…especially government spending which results in gov debt growth. The business cycle that is now amplified by the Fed , always ends in a bubble being burst. Prepare accordingly.

  • Be careful dissing any one group. I have seen articles and slide shows on the internet dissing the Boomer generation for everything from ugly carpeting to being sociopaths ( hey, I hated the shag carpeting too). Blaming any one group gives permission to scapegoat. Heap all your anger on this group. Look at the hate groups marching in Charlottesville. If you hate enough you can justify attacking and even killing others. Boomers are a diverse group and many of us have no voice in our politics. (I for one have been geremandered). Instead of blaming, lets work toward identifying problems and finding solutions.

  • A house is a liability? They have only gone up in price. For those who have done the "right thing" and not bought at elevated prices and rented and saved – those people are screwed.

    It's like we live in Bizarro world.

  • TQ Chris. Great explanation. Making things simple for the lay man like me.

    Greetings from Penang, Malaysia.

    Have a great year ahead. Cheers.

  • Like F-ck the banks are socialist!!! They goosed housing prices which only benefits rich homeowners and screws poor renters!!! You have this dead wrong Chris!!! Were they socialist, the poor would get the lowest interest rates and the rich would pay higher rates-that's BS dude!!

  • thanks for the great podcast….the masters of the universe use the FED, the Gov, communism, fascism, predatory capitalism, and socialism to protect their interests while they promote free markets, neoliberalism, and libertarianism for the little people….the nazis are gone, the soviets are gone, the chi-coms are gone, but the wall street banks, the FED and the invisible hand are here and they aint taking no prisoners.

  • If we can relegislate to only lay property taxes to homeowners or investors who are underwater with their property then a nicer home is a phenomenal asset. Robert just doesn't tell you his more realism understanding of holding residential real estate which is that IT CAN be a liability as that every realtor knows that troubled property has a tendency most always to become impossible to turn around. So it's not for the faint-hearted. The key or the secret is to look for a really marketable home, which you're not though going to sell but are going to keep up with TLC and on further real estate speculation think over what you think you might do next with that home.

  • Your talk about house prices and maintence  and taxes and other things reminds me that we home owners are just modern day "high tech" serfs . Running around the spinning wheel like hamsters . Going nowhere .

  • The disaster of the baby boom is forced integration, promoting women over men, colored people over whites, Jews over Christians to tear down the great nation Christian white males created. Low IQ people given jobs subsidized with legally counterfeited currency degrades the quality of the nation. The failed chickens of the 1970's are coming home to roost. Protect yourself. No one else can or will.

  • I own a lot of gold as a hedge. I hope gold goes to zero and my children have a great future. Unfortunately this may not and probably will not happen. Greek empire fell, Roman empire fell. All European empires fell. America is the last empire standing and I hope it hangs on.

  • "Our economic principle is: The duty of the national economy is to provide the necessities of life and not to secure the highest possible profits for capital."

    The Program of the Party of Adolph Hitler by Gotfried Fedder.

    And we all know what happened to him, don't we?

    Be careful, Dr. Martenson. Be very careful.

  • Chris – you are an XGen! You have interviewed Neil Howe on your show. I don't understand why the X-Gen is being overlooked the last year or so. They created the Generational Theories for us, we are the Alpha. https://en.wikipedia.org/wiki/Strauss–Howe_generational_theory

  • Love your presentation. I wish more people understood these concepts. Maybe more people will listen versus the propaganda in the MSM and in public schools.

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