"Central banks are not ready yet to pull the plug," said Mannarino. "There is not enough people yet fully 100 percent dependent on their system." These central banks, he noted, need to keep expanding their influence and control. (Related: Coming economic collapse will be used to close banks and introduce central bank digital currencies.)
"They need more slaves to the system, they need more inflation, they're gonna continue to inflate," he said. "They need more people to lose their jobs as Fed President [Jerome Powell] said recently, that's the way to control inflation – have people lose their jobs."
"In other words, crush the economy faster," he continued. This, he added, is why the Federal Reserve and many of the world's central banks are continuing to raise interest rates. It is not, as they claim, to control inflation.
"They're not doing a d--- thing about inflation here. It's never meant to since day one. All [raising interest rates] is meant to do is kill demand, crush demand, slow the economy, and eventually some miracle is going to happen, according to central bankers, and that is we will see inflation come down," said Mannarino.
Mannarino's warning was broadcast following the "shock" news coming out of Japan. The country's central bank, the Bank of Japan, has intervened in the market by relaxing its "yield curve control" policy.
Under this policy, which the bank implemented nearly a decade ago, the central bank bought up government bonds to ensure that the yield or interest rate on 10-year government debt hovers close to zero.
The new loosened rules expanded the band within which the yield can fluctuate. Instead of minus 0.25 percent to plus 0.25 percent, bond yields can now fluctuate between minus 0.5 percent and plus 0.5 percent.
While the move itself is not necessarily the most drastic, it still sent shockwaves across global debt markets. Bond prices in Japan fell, sending the yield to as high as 0.47 percent before easing back to 0.41 percent, the highest level in two decades.
Furthermore, Mannarino warned that this decision will no doubt elicit pushback from other central banks.
"The issue with Japan and the global debt market gets out of control, we start to see bonds sell off faster. We see bond yields rising, rising, rising around the world," he said.
"Do you believe, right now, at this point, that central banks are going to allow this to happen? In other words, if the debt market were allowed to let go right now and implode? A massive sell-off here in the global debt market would melt down global stock markets."
Learn more about global debt markets at DebtCollapse.com.
Watch this Dec. 20 episode of "Traders Choice" as host Gregory Mannarino discusses in detail how the world's central banks are about to issue even more debt to make society more dependent on them.