Whenever the markets look like capitulating, out come the central bankers.

The bankers who run the world will do absolutely everything to ensure 2 to 3% inflation, which will ensure that property prices in hard hit areas do not continue to fall below the value of the loans outstanding, in nominal terms.  As economic scares continue this year, at the point at which things get emotional, politicians will then be forced by markets to act, which they will do.

 
The only thing they can do is arrange to have good banks take over bad banks, (to have better monetary union in the EU), centralize banking power even further, and print money.  My book describes how this has been done, every 18 years since 1800.  We have so far seen an exact repetition, especially the move out of 1974 and again in 1991/92.  Chapters 13 and 14 of Secret Life.

In addition to this, applying some Gann knowledge, the years ending in two have often seen the lows – or higher lows depending upon where we are in the 18 year cycle.  2002, 1992, 1982, 1962, 1952, 1942, 1932, 1922.

Bankers NEVER forget that you have taken out a loan.  Once you, or a nation, take out a loan, it MUST be paid back.  And they don’t take kindly to having to write them off, unless they get a good tax break for it whilst still making profits.  Greece owes money, Portugal, Ireland, Spain and every other single country as well.  This is the great game of debt.  European bank loans are in Euros.  There is just no way the bankers are going to see such loans devalued even further if the denomination has to change to non-Euros with a new currency.  It is inconceivable.  Bankers will force politicians – and it doesn’t matter which side they belong to –  to instigate any and every possible economic remedy (except one, a land tax) to make sure these debts are repaid in some fashion.  Even better if this involves the issue of yet more debt.

 

We have seen all this before, in every past cycle.