The Third & Final Bubble: Enjoy The World Around You Before It Pops

After last week's performance on CNBC, this week we get another dose of reality from Peter Schiff on Fox News discussing the Fed induced bubble in stocks, bonds, and real estate.

If a small portion of the trillion+ of dollars currently printed every year should begin to enter back into the energy or agriculture market (it is already spiking the cost of rents), then you will have the trifecta that ends this charade: rising inflation in the goods people need to survive every month. When this occur the Fed must decide to either stop printing or ignore it and just hope for the best. Either scenario will lead to total disaster (for the real value of asset prices) and the world will once again see that the emperor has no clothes.

This process will most likely occur first in Japan and provide a blue print for what is coming for the U.S.

In the meantime, and I say this with all honestly, enjoy the world around you today where people are more happy in general because they think this is a real recovery. Most people have no understanding about what is currently happening and therefore have no understanding about the consequences today's actions will induce.

This bubble will be the last bubble because when it begins to collapse central banks and the governments will already both be "all in." There will be no bailout that comes from Mars or Jupiter. The bill will finally come due for the 70 year debt super cycle that has now bankrupted every layer of the economy.

For a complete discussion on the most likely first domino to fall during the next collapse see:

Japan Steps Into The Abyss: Begins Largest Money Printing Experiment In History

2013 Outlook: Japan's Government Debt Bomb Goes Off