An enormous “sword of Damocles” hangs over all markets now. A massive liquidity drain is underway as global QE reverses into QT and rates rise against the background of immense ubiquitous crippling debt burdens. What this means is that the biggest credit crunch of all time is bearing down on us, which will involve markets crashing in the absence of bids, serious dislocation of capital markets and out of control interest rates.

This is probably the high point for Trump’s Presidency as the stockmarket enjoys its final “swansong rally” ahead of the crash, buoyed up the last of the stock buybacks before rising rates choke them off, and the dumbest of the dumb money who think that because the market has been in an uptrend for years it’s going to continue.

The Fed has been playing a stealth game for a long time now, gradually but steadily raising rates and hoping that the market won’t notice, and also furtively offloading its Treasury hoard, and other Central Banks are following the Fed’s lead and doing likewise. The liquidity that drove the massive bubbles in Real Estate and stockmarkets is being pulled. That must inevitably lead to these markets dropping, and we are already seeing the start of it with the Emerging Markets plunging and hitherto red hot Real Estate markets cooling. When punters realize that the game is over, the decline is likely to become disorderly and involve a number of crash phases.

The Fed is always behind the curve and reactive. It has been undermining the markets for over a year now with its raising of interest rates and now QT, so when the markets buckle and cave in, it won’t be “something out of the blue” or an “Act of God” as the mainstream media will inevitably portray it, it is eminently predictable, and slated to happen soon. The reason that the Fed and other Central Banks are raising rates and withdrawing liquidity is that they know there is another mammoth crisis looming, and they are scrambling to buffer themselves ahead of it, by giving themselves “wiggle room” to lower rates, and scaling back their massive holdings of Treasury paper etc. The trouble is that it’s a very delicate balancing act, and they are inevitably overplaying their hand to the extent that their actions will bring about the crisis that they are seeking to avoid, or at least get ahead of.

http://news.goldseek.com/CliveMaund/1538748000.php