Wednesday, January 4, 2017

"Derivative War Could Bring Down Global Economy"

"Derivative War Could Bring Down Global Economy"
By Greg Hunter’s

"Financial expert Lior Gantz says there is good news and bad news for the economy with the election of Donald Trump. Gantz explains, “If he changes the equation, it could cause a lot of inflation in the U.S. U.S. banks are so liquid and have so much excess cash because of TARP programs and QE programs that this could prompt them to start lending, and lend to the wrong people. It could prompt the government to start issuing increased food stamps, universal unemployment checks and all kinds of stuff that can create large inflation in the U.S.  So, that is one side that is problematic. The other side is very spectacular for the U.S. economy because Trump is doing a lot of things that should have been done years ago:  deregulation, cutting back on taxes, cutting the red tape and making sure that businesses are more comfortable with opening new branches in the U.S. The best indicator of this is the Russell 2000 index that is up much more than the Dow because the small cap companies are mostly based in the U.S., and the large cap companies are international.”

Gantz warns that problems could be caused by central banks either by accident or on purpose. Gantz, who was a money manager for the wealthy, says, “I would even say that there is real grave danger that the government or the elite banking system will create problems. I will even say they might even make Trump fail. They might do something to his disadvantage on purpose because he’s not mainstream, because he’s not them. He came out of nowhere, and he was not backed like Hillary. That is also baked in the cake, and it is what we call a black swan.”

So, if push comes to shove, will the global elite allow deflation or will they trip the inflation button? Gantz, who specializes in resource stocks, says, “They will trip the inflation button. They will not allow deflation to happen in the U.S., and I will tell you why. They feel like they are invincible, and they can’t admit failure. They will never admit, hey, we have done this wrong. QE programs were wrong. Negative interest rates were wrong. They will not come out and say it. They will do whatever it takes to play their end game. They honestly don’t care about the average person. That’s the last thing on their mind. They care about their lifestyle and the way they live life on the toil, sweat and energy of the people who really create the economy and innovation.”

Gantz also warns of a possible derivative war between top bankers that could bring the global economy down. Gantz contends, “Once somebody begins to change the way they look at derivatives, and start using derivatives as a weapon, they’re going to fight between each other. These are nasty people that all they care about is what they make in cold hard cash to take home. They really could start a derivative war that would not be beneficial for anyone. It would be more violent than an orchestrated derivative explosion that I really don’t think is possible. The derivative market is so big that it is out of the control of anybody.” (There is much more in the video interview.)

"Join Greg Hunter as he goes One-on-One with Lior Gantz, President of Wealth Research Group".

No comments:

Post a Comment