And it's created a big bubble in a pocket of the US economy. "There is no acknowledgment today that, yet again, we have a super-duper credit bubble on our hands," he wrote in a note on Thursday.

He went on to explain that central banks are moving away from credit-based currency, and into gold. "As I think more and more people understand the risk is in credit not in a high gold price then ...

The thesis holds that a multi-decade super cycle Credit Bubble - over recent years succumbing to 'terminal phase excess' - ...

Naturally our financial leaders around the world took the radical steps required to reduce the debt created in a massive credit bubble. Oh, sorry, that was my fantasy world I was talking about.