Experts Warning Americans to Be Prepared For Stage For the Greatest Economic Crisis In History
The US government has already run past the critical mass point of where interest payments on debt are greater than the amount of money it takes in via taxes, fines, etc… By about a couple of billion at this point. So, in other words: it will never be able to pay down debt. The debt has nowhere to go but ,up. Even if the government stops all spending right now ,and just pays interest on the debt. We are now permanently on the highway to hell, and the sheet show is gonna get real. All we can do is hunker down and wait for the collapse. It’s too hard to even try to argue against the blatantly absurd. At least three rounds of QE this year.
America is owned by offshore private banks, period! They set the rules of the game and choose how to play the game. More money on its way. We injected so much liquidity causing yields to rise faster than we expected, which threatens the viability of our risk-free rate valuation balloon.Hence our best course of action is to add even more liquidity at a faster pace. Massive fiscal and monetary stim suggests coming higher inflation Supply not able to meet increased dollars demand. Hence, investors engage in a battle royale with the Fed.
The Fed tries to keep the lid on yields through QE and rate policy. While these investors strive for rational and sane price discovery. The Fed have so painted themselves into an ever-growing asset inflation corner that they’ll do anything in order to support these valuations. They won’t admit they’ve lost control of inflation and prices until forced to do so by the market. Central Banks think it’s okay to keep yields low and money supply infinite. Because it’s all, they can do. The biggest monetary crime of our lifetime is that all Central Banks were warned of this, ignored that advice, and now, unforgivably ( out of sheer panic), deny that they are in that corner. So it makes you wonder what the real objective is here.
According to “GartmanNomura Analytics” from about a week ago, it should’ve been GAME OVER for the markets (and pretty much everything else) when the 10-year yield hit 1.5%. As of now, the 10-year yield is at 1.635%, and the stock markets made new all-time record highs while the 10-year yield stayed above 1.5%. Although the stock market keeps on up and up, regardless of the underpinning factors of the economy.
However, one day, the laws of economic reality will set in. After 12 years of below reality market rates, the bond vigilantes are reborn. And it won’t be pretty. 50 basis points most scenarios can be handled, but if we breach 2.50% on the 10-year yield, it will create a crater in the middle of American finances from sea to shining sea. Interest rates will never go up until the currency used to suppress them becomes worthless. Neither Powell nor the Fed will allow rates to rise far enough.
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