Despite the fact that nearly all of the macroeconomic trends I have predicted since 2006 on my blog, the Underground Investor, have come true, the percent of people that disagree with my predictions for 2010 and 2011 still outnumber those that agree by a factor of ten to one. There is a rational explanation why the public-at-large still grants a great deal of validity to the opinions of people I like to call the “men who cry wolf” – Ben Bernanke, Timothy Geitner, Gordon Brown, Alan Greenspan, et al.
The explanation is that the fastest growing export of the Western banking industry is fraud. This is not to say that the eastern banking industry is not guilty of this same fraud. Off the top of my head and from what I have see in my travels through Asia, I can think of at least three real estate markets in the Pacific Rim region that are bubbles waiting to burst – New Zealand, Thailand, and Hong Kong. If you study the Central Banking monetary policies in these countries in recent years, you will discover that these real estate bubbles are the architectural accomplishments of their respective Central Banks as well. However, the roots of this global monetary crisis lie with the most influential Central Banks in the world that include the ECB, the Bank of England and the US Federal Reserve.
