By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Analyst/trader Gregory Mannarino thinks the public has a huge false sense of security about the financial markets. Mannarino explains, “The general public is zombiefied. . . . What the Federal Reserve is determined to do is kill the dollar. We might get a bounce here or there, but that downward trajectory that started in December is going to continue and has no end in sight. We know this because the Fed has said it is going to do whatever it takes to create inflation. The Federal Reserve thinks that making things more expensive and sucking the value out of the dollar means you are going to be better off. Right there you can see there is some kind of twisted mentality going on.”

Mannarino goes on to say, “What the Fed is not telling you . . . is the economy is dead in the water. The cash is not moving through the system. So, they can print or add digits to a screen from here to oblivion and not get inflation if the cash isn’t moving. That’s why we are not seeing massive inflation – yet. There is going to be a moment when all these extra bills start chasing the same amount of goods. What’s going to prompt that to happen is the bond market action. Right now, cash is moving back into the perceived safety of debt. The U.S. 10-year yield is plunging. This is positive to the stock market for now.”

On gold, Mannarino says, “Gold has just hit a high for the year, and that is also a trajectory that will continue. Why will this keep going? Let’s go back to the dollar. Investors don’t want anything to do with the dollar. They are dumping their dollars here. We are going to get, at some point, a massive sell-off in the bond market. Don’t listen to Gregory Mannarino on this. Listen to former Fed Head Alan Greenspan. This is what he says, and he thinks the bond market is in a bubble. . . . Greenspan also said the potential for a rapid sell-off in the bond market is very, very high,”

Mannarino contends a rapid sell-off in bonds “will be very good for gold.” Mannarino also likes physical silver and thinks, “It’s still the most under-valued asset on the planet.”

Gregory Mannarino @marketreport