Jim’s Quote of the Day:

“All we need is for the Fed to live up to its promise that it has an exit strategy. I’m here to say that they don’t have an exit strategy. There isn’t an exit. A return to a normalization of interest rates, a withdrawal by the Fed and other central banks in their efforts to monetize debt and artificially suppress interest rates, as soon as that ceases, the system itself will freeze up just as it did a few years ago.

The reason it will freeze up is the system can’t handle anything close to what would be considered historically normal interest rates. The stock of debt globally at that stage cannot be serviced. So the system, inevitably, will break down. The problem this time is likely to be much worse than it’s ever been in the past because the debt bubble has never been this big at any point in the past.” – Hedge Fund Manager William Kaye of Pacific Group in Hong Kong, January, 2013