Max says that, simultaneously, people are living on a ship that is sinking, due to the implosion of the velocity of money and the consequent collapse of the bond market.
The bond market has collapsed because the only way America can sell sovereign bonds or government debt is to buy them back from itself, he notes. Otherwise, nobody would be buying it.
So, you have “an economy that would be similar to what you might find at a funeral… People are mistaking the formaldehyde of fiat money as a reanimation of the corpse. And we should then put up the corpse on its own two feet and ask it to walk out of the funeral parlor, which is asking too much of a corpse.”
Max adds: “This American economy died in 2008, there’s been a lot of formaldehyde pumped in through the system but it’s still dead. It is as dead today as it was in 2008, and these professional money managers obviously are utterly lost in the woods, have no idea what they are saying, have no idea what they should be doing.”
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