Prins Claims Nothing Returning To Normal - Is She Right?

In a "Sponsored Content" piece by Rogue Economics, Nomi Prins joins those claiming nothing is going back to normal. Prins says we should be prepared for the great distortion to move forward at a faster rate. In this piece, the hyperboles roll off her tongue. Prins says something strange is happening behind the scenes in our financial system and she is one of the few individuals privy to this information. While I like this gal, it is difficult for me not to be skeptical.

Despite the warnings we hear from many notable market watchers such as Wall Street titan Jeremy Grantham the markets seem to be puttering along. But are they? The recent trend has been downward and many currencies are under pressure. The very important currency market is a place few people watch. Grantham’s thesis is that US stocks are in a “Super Bubble”. This is an upgrade on his diagnosis last year that we are experiencing “an epic bubble.”

Grantham states that the US has seen only three other such extreme events in the past 100 years. They are the Wall Street crash of 1929, the turn-of-the-millennium dot-com mania, and the housing market madness of 2006. If Grantham is correct we are about to enter a time of great financial distress that will change the lives of many people as they watch their wealth vanish before their eyes. Grantham points out that all three of these "super bubbles" including Japan's fall from grace, all went through specific events which triggered them to burst and this market has checked all the boxes taking place proceeding market crashes. 

Circling back to Nomi Prins, she is characterized as a former Wall Street managing director who walked away from a million-dollar career. She is now an author and claims the mainstream media is completely ignoring what might be the most important story in the financial world today. She notes that amid the distractions caused by conflicts overseas, shortages, and inflation, Treasury Secretary Janet Yellen recently took the stage at an event called COP26 in Glasgow, Scotland to address some of the world’s most powerful people. There, Yellen called for world leaders to commit to a $150 trillion ‘global transition’ of our economy.

According to Prins since Nixion cut the link between the dollar and gold in 1971 the economy has undergone a massive distortion. Her research indicates the Fed can’t raise rates enough to stop inflation and they won’t stop printing. Her newest prediction is we are about to witness the biggest transfer of wealth in history and that ten years from now, we’ll look back to see nearly every industry has been fundamentally reshaped. The areas she keys in on are energy and what she calls a new financial system. She talks about an entirely new kind of infrastructure spending with great upside for investors and a small company that is building the bridge between the legacy banking world and a new financial system. These are the answers she sees as carrying the world forward.

Rather than focusing on whether Prins is on to something or merely trying to sell her book and promote her brand, it is important to note, that when looking at content someone is putting out we have to be skeptical. A key part of her premise centers on the so-called power brokers currently in charge being able to pull off the transformation they have planned. Remember, the best-laid plans of mice and men often go askew.

Where I do agree with both the individuals noted above is that we should prepare for a great transfer of wealth and change is in the wind. The economy is in uncharted waters and the transfer of wealth seldom benefits the masses. With that in mind, it would be prudent to be cautious and not depend on paper promises to make your future whole. 

Many of us have constructed scenarios of how things might play out when shit hits the fan. The world we live in after a major financial earthquake is likely to be far different than the one we live in today. Expect huge changes in both the economy and society as people are forced to accept the new realities of the day that get fostered upon us. Whether we enter a time of deflation, inflation, stagflation, or hyperinflation, it is unlikely to be kind to most people, in fact, things might get downright ugly. 

Footnote; To those interested, this link takes you to the Rouge video  ----   https://secure.rogueeconomics.com/?cid=MKT623113&eid=MKT638672&assetId=AST236063&page=1

 (Republishing of this article welcomed with reference to Bruce Wilds/AdvancingTime Blog)