"Forget about the markets of the world. The entire global financial system is going to implode on itself by design. This is what central banks are leading to; they need a new system, the current system is dying," he said in a Feb. 2 post market wrap-up on his personal YouTube channel.
"How do we know that? Because without the added liquidity that we're seeing here in the debt market, the incredible amount of buying here in the debt market to keep rates suppressed. To understand this, this mechanism just doesn't go on autopilot. Once [central banks] get in here and play around with the yield curve, play around with keeping rates suppressed. They have to get into the market."
He went on to say that the central banks around the world are raising rates and charging more for the debt they issued to everyone, including those whose global bond yields are dropping. Mannarino cited an example close to home: the Federal Reserve recently raised rates by 25 basis points and the U.S.'s 10-year yield almost fell of a cliff. He described this as a "Herculean effort" by the central bank to keep rates suppressed.
"I believe this is going to go on until when they're ready, when these central banks believe that they've maxed out the system. They've created more slaves to the system, more dependency on the system here as the world economy continues to crater. That's when they get to pull the plug on the market. But this could be a sustained period of time from what I understand."
Mannarino also pointed out that investor and hedge fund manager Michael Burry of "The Big Short" fame was dead-on accurate when he said that all the elemental chart environment or the stock market is going to collapse. He added that the central banks are raising rates while the yields are dropping, which means that the system is now at the stage of being phased out – in favor of a completely digital, 100 percent fiat system. (Related: Global reset fully underway as 90% of central banks push for digital currency that governments can control.)
The financial strategist also said America is not going back to a system, currency or commodity backed by gold as doing so will take away the power of the central banks.
According to Mannarino, the stock market gains are showing up because of the mass layoffs that are happening. The Federal Reserve along with the central banks have set this up in an incredible way and allowed inflation to manifest itself.
"In other words, we are paying for this so-called mistake. They made no mistake. This is all by design. This is what I'm talking about. This is a criminal organization of the highest possible order. Nothing comes close to this and it's a curse upon the earth."
Mannarino pointed out that the Federal Reserve is completely independent and can do whatever they want. They can lend money to any nation, any person, anywhere with no oversight whatsoever.
"And again, what are they doing? They are charging the world more for that and they have allowed this environment to metastasize and it's a global problem."
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Watch Gregory Mannarino warn of an impending stock market crash and financial collapse below.
This video is from the High Hopes channel on Brighteon.com.