Mauldin – World Headed For Unprecedented Volatility & Chaos / October 23, 2014

Today John Mauldin warned King World News that the world is now headed for unprecedented volatility and chaos.  Mauldin, who is President of Millennium Wave Securities, also discussed the ominous warning featured below from Ambrose Evans-Pritchard.

Eric King:  “John, recently you featured this chilling portion of Ambrose Evans-Pritchard’s commentary:

“Combined tightening by the United States and China has done its worst. Global liquidity is evaporating.

What looked liked a gentle tap on the brakes by the two monetary superpowers has proved too much for a fragile world economy, still locked in “secular stagnation”. The latest investor survey by Bank of America shows that fund managers no longer believe the European Central Bank will step into the breach with quantitative easing of its own, at least on a worthwhile scale.

Markets are suddenly prey to the disturbing thought that the five-and-a-half year expansion since the Lehman crisis may already be over, before Europe has regained its prior level of output. That is the chief reason why the price of Brent crude has crashed by 25pc since June. It is why yields on 10-year US Treasuries have fallen to 1.96pc, and why German Bunds are pricing in perma-slump at historic lows of 0.81pc this week.

We will find out soon whether or not this a replay of 1937 when the authorities drained stimulus too early, and set off the second leg of the Great Depression.”

Mauldin:  “I think we are heading into a deflationary environment.  My current thought process is that the dollar is going to get a lot stronger over coming years than anybody believes.  You can already see the potential stage being set for that. I think that time is now starting and we are going to see the dollar get much stronger….

Continue reading the John Mauldin interview below…



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