3.02.2020

Depression, not Recession Treasury yield Curve Predicts

 It's Free: Try the Worlds Best Tooth Powders!

Typically in the US recessions happen every 10 or so years and last a couple years.  However our last recession we never really recovered from and it actually caused a slight depression that continues until now.  However this upcoming recession is predicted to be big and the effects will last 20-30 years.  You can see it from the yield curve. The daily treasury rates will tell you where we are in the cycle.  High interest rates in the short term says that the economy is good right now.  High interest rates in the medium term means the economy will probably be good in a few years.  High interest rates in the long term means the economy will probably be good in a couple decades.  The reason this is so is that banks don't buy bonds when they expect the stock market to go up, bonds are a hedge against a bad stock market.  So if you see short term yields high and medium term yields low, it means banks see this as the top and that the economy will go down within a couple years.

Right now all interest rates are low which means banks are predicting a collapse any time now and that it will last up to 30 years.  It is predicting especially bat times from 1-3 years from now and not any significant recovery for 20-30 years.  Higher 1 month interest rates means that the banks still have hope that 1 month from now stocks will be doing ok, but beyond that, things look bad.

The coronavirus, the election, china trade, iran war, all of these can and will be used as excuses to cause a mass selloff.  The fed wants to create boom bust cycles and the members sell the boom and buy the bust.  They will dump a few billion dollars here or there to cause shocks to the market that the sheep follow and the fed owners profit.  And of course they will blame something in the news.  But the real cause is always the global central banker cabal.  Trumps tax cuts have so far prevented the downturn but the fed is persistent.  They will use these shocks they create to lower interest rates into territory they know no banks can survive.  And when the bank domino's start falling, the economy is toast.

No comments:

Post a Comment

Thank you for your feedback! Sharing your experience and thoughts not only helps fellow readers but also helps me to improve what I do!