Financial Conditions "Never Seen Before"

Yep!  Even though we have been focused on Iran, North Korea, gun laws and Super bowls here in America....the financial condition of many nations continues to deteriorate...and many really have no clue what might happen because they have NEVER seen conditions like this before.

Depending on your point of view, global central bank policies either are going to imperil financial markets or simply propel prices to a place beyond imagination.

The answer, though, could be both.

Investing professionals, even the best and brightest, can't seem to make up their minds whether the U.S. Federal Reserve and its global brethren are the salvation or the doom of capital markets.

They're just trying to survive under conditions they say they've never seen before.

The Fed alone has sent its balance sheet to the $3 trillion mark in freshly created money, while central bank easing has been aggressive as well in Europe, China, Japan, and elsewhere.

"All asset classes have an upward bias now — precious metals, stocks, bonds, real estate, art. That upward bias is robust and we have not experienced anything like it in our lifetimes," said David Kotok, chief investment officer at Cumberland Advisors. "The limit to which those prices can rise is beyond our normal imagination. It's huge."

That, however, is not the talk of a raving bull trying to pump up the markets. It's merely the observation of an investing veteran who believes markets are being manipulated to historic levels, putting investors in a place where they can only ride the tide — at their own future peril.

Here;  http://www.cnbc.com/id/100450668

Never seen before?!  Hasn't been seen in their lifetimes?!  That sounds interesting!!

What we do know is that interest rates are the lowest they have EVER been in the history of interest rates.  How long can the Federal Reserve continue 'buying' Treasury Debt with Monopoly money??

The answer is;  As long as people BELIEVE the Monopoly money is REAL!

But Dennis, what happens when people find out that the Federal Reserve didn't really have the $3 trillion dollars with which to "buy" all those assets?

The answer is:  What happened to Bernie Maddoff when people found out that he didn't really "buy" all the assets that he had listed in the investor's mythical portfolios?

Yep!  People fled his portfolio in a hurry!  The first ones to smell the rat cashed in and got some money from the poor suckers who were still coming in with fresh cash to the scheme.  But the vast majority made a run on the Bernie Maddoff Bank and found out that there were not nearly enough assets to cover what they thought they had.

Think about it....if China, Japan, Russia, Wells Fargo, US Bank, Brazil and others who own about $5 trillion of funny money, backed ONLY by the FULL FAITH AND CONFIDENCE IN THE U.S. GOVERNMENT...all decide to cash in at the same time....how would Uncle Sam cover all those demands?

Now here is the amazing thing....the USA is currently viewed as the LEAST WORST FINANCIAL HOUSE OF CARDS!  And if we are sitting on the edge of this precarious cliff...what can that possible mean for the GLOBAL FINANCIAL HOUSE OF CARDS if Europe, Japan, Venezuela, etc...also start to fold at the same time??

You can ALMOST smell a NEW WORLD ORDER and a NEW WORLD CURRENCY coming down the pike.

Jesus take the wheel....please.  Mankind is driving off a cliff.