We discuss the KK Ho of central bankers, Mark Carney, seeking ‘escape velocity’ while impersonating a bond trader. They also discuss the dreadful summer wind for the currency impersonating a reserve as good as gold. In the second half, Max talks to Robert Prechter of ElliottWave.com about debt, deflation and hyperinflation. Regarding the latter, Prechter asks, “if central banks were interested in hyperinflation, then where were the helicopter drops for Cyprus?” As there is no such thing as magic money, it won’t happen, he says.
As Bob Prechter warns… re: ‘Deflation.’ The printing, no matter how great, is not covering the shortfall: not even close. The liquidity tsunami injected by the central banks merely taped over the epic capital shortfall that just got epic-er, increasing from €2.8 trillion to €3.2 trillion, an increase of over half a billion to over $4 trillion in one short year.