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Experts Are Warning That The 76 Trillion Dollar Global Bond Bubble Is About To Explode
By: Voice of Reason
FOR MORE NEWS BY VOICE OF REASON CLICK HERE!
I don’t know that it’s entirely fair to point all the blame for what is coming toward us on the “Bond Bubble,” considering that is only one of several financial bubbles eager to POP that will ultimately end with the United States finally going all the way DOWN the drain instead of continuing to do all the circling we’ve been doing.
According to Thad Beversdorf via FirstRebuttal.com, WE JUST BROKE 2008’s RECORD FOR THE FASTEST ECONOMIC UNRAVELING, if that gives you any sense how full of crap both Obama and the lying, lapdog media have become in this country. There is no shortage of crisis that could ultimately be “THE ONE” that ushers in MARTIAL LAW, and if we really try to break it down, there’s almost an unlimited number of possible ways our economy could, and eventually WILL implode. there is disaster on every front.
NO DOUBT BONDS ARE A BIG ISSUE RIGHT NOW…
As I’ve argued in previous posts like this morning’s CONGRESSMAN LOUIE GOHMERT POSTS ON HIS WEBSITE THAT HE SEES GREAT REASON TO BE WORRIED ABOUT ALL THESE MARTIAL LAW DRILLS, or DOLLAR DOMINATION IS OVER, or even a post a ways back titled, STILL DON’T THINK THE ECONOMY IS GOING TO CRASH, BETTER THINK AGAIN, I always come back to the fact that the REAL culprit in what will take down the United States is when they take our printing press away. Said another way, we always talk about SYMPTOMS, and not the disease. The curtain does down here when we are “OFFICIALLY” bankrupt, and no longer the World Reserve Currency. We’ll not only witness the END OF THE AMERICAN EMPIRE, but we’ll watch our status go from the world’s lone superpower, all the way to a third world wasteland filled with people willing to hurt one another just to eat… and that change will be virtually over night.
That is why I did my post this morning titled: WITHIN 1 YEAR, 9 OUT OF 10 WOULD BE DEAD IN AMERICA. People here have NO CLUE what is coming for them, and very very soon too. If you can believe it, we ACTUALLY have people arguing over who should be baking what kinds of cake in this country, when later on that same day could mark the beginning of watching our society devolve into land of chaos. People are such uninformed boobs here In the U.S. these days… and many people even seem to like it that way… being uninformed.
A $78 TRILLION DOLLAR BOND BUBBLE?
THAT’S NOTHING…
Here in the United States we have a few other bubbles getting ready to blow too. We have the STOCK MARKET BUBBLE (again) which will be lucky to close at 5,000 when the next wave is done with us, we have the STUDENT LOAN BUBBLE where TRILLIONS more are being borrowed that will NEVER be paid back, we all have ANOTHER housing bubble going that will rival the crash of 2008… and to add to all that, we’re involved in all of the messes in Europe too.
Across the pond, they ALSO have THREE major financial crisis going on. The LIBOR SCANDAL is far from over. Interpol is involved, but the deeper they dig, the worse things get. The also have the FOREX SCANDAL, and lastly there is what Zero Hedge calls EVEN WORSE than the Libor Scandal, and the is the PRECIOUS METAL SCANDAL.
GUESS WHAT?
WE ARE TIED TO ALL THAT TOO!
Because Libor is used in US DERIVATIVES MARKETS, an attempt to manipulate Libor is an attempt to manipulate US derivatives markets, and thus a violation of American law. Since mortgages, STUDENT LOANS, FINANCIAL DERIVATIVES, and other FINANCIAL PRODUCTS often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide.
NO DOUBT THERE IS A BIG BIB BIB BOND PROBLEM…
BUT THE BIGGER PROBLEM IS THE UNINFORMED...
[Audio/Video below cannot be seen in Newsletter – have to go to Blog]
IF THE “USEFUL IDIOTS” WOULD HAVE BEEN HALF AS CONCERNED ABOUT BLOCKING THE “NOT-SO-USEFUL IDIOTS” FROM ANOTHER TERM IN WASHINGTON, AS THEY WERE ABOUT NOT KEEPING UP WITH WORLD EVENTS BECAUSE THEY’RE “TOO DEPRESSING…”
MAYBE PEOPLE WOULDN’T BE PREDICTING 9 OUT OF 10 AMERICANS DIE!
Warren Buffett believes “that bonds are very overvalued“, and a recent survey of fund managers found that 80 percent of them are convinced that bonds have become “badly overvalued“. The most famous bond expert on the planet, Bill Gross, recently confessed that he has a sense that the 35 year bull market in bonds is “ending” and he admitted that he is feeling “great unrest”. Nobel Prize–winning economist Robert Shiller has added a new chapter to his bestselling book in which he argues that bond prices are “irrationally high”. The global bond bubble has ballooned to more than 76 trillion dollars, and interest rates have never been lower in modern history. In fact, 25 percent of all government bonds in Europe actually have a negative rate of return at this point. There is literally nowhere for the bond market to go except for the other direction, and when this bull market turns into a bear it will create chaos and financial devastation all over the planet.
In a recent piece entitled “A Sense Of Ending“, bond guru Bill Gross admitted that the 35 year bull market in bonds that has made him and those that have invested with him so wealthy is now coming to an end…
Stanley Druckenmiller, George Soros, Ray Dalio, Jeremy Grantham, among others warn investors that our 35 year investment supercycle may be exhausted. They don’t necessarily counsel heading for the hills, or liquidating assets for cash, but they do speak to low future returns and the increasingly fat tail possibilities of a “bang” at some future date. To them, (and myself) the current bull market is not 35 years old, but twice that in human terms. Surely they and other gurus are looking through their research papers to help predict future financial “obits”, although uncertain of the announcement date. Savor this Bull market moment, they seem to be saying in unison. It will not come again for any of us; unrest lies ahead and low asset returns. Perhaps great unrest, if there is a bubble popping.
And the way that he ended his piece sounds rather ominous…
I wish to still be active in say 2020 to see how this ends. As it is, in 2015, I merely have a sense of an ending, a secular bull market ending with a whimper, not a bang. But if so, like death, only the timing is in doubt. Because of this sense, however, I have unrest, increasingly a great unrest. You should as well.
Bill Gross is someone that knows what he is talking about. I would consider his words very carefully.
Another renowned financial expert, Yale professor Robert Shiller, warned us about the stock bubble in 2000 and about the real estate bubble in 2005. Now, he is warning about the danger posed by this bond bubble…
In the first edition of his landmark book “Irrational Exuberance,” published in 2000, the Yale professor of economics and 2013 Nobel Laureate presciently warned that stocks looked especially expensive. In the second edition, published in 2005 shortly before the real estate bubble crashed, he added a chapter about real estate valuations. And in the new edition, due out later this month, Shiller adds a fresh chapter called “The Bond Market in Historical Perspective,” in which he worries that bond prices might be irrationally high.
For years, ultra-low interest rates have enabled governments around the world to go on a debt binge unlike anything the world has ever seen. Showing very little restraint since the last financial crisis, they have piled up debts that are exceedingly dangerous. If interest rates were to return to historical norms, it would instantly create the greatest government debt crisis in history.
A recent letter from IceCap Asset Management summarized where we basically stand today…
Considering:
1) governments are unable to eliminate deficits
2) global government debt is increasing exponentially
3) 0% interest rates are allowing governments to borrow more to pay off old loans and fund deficits
4) Global growth is declining despite money printing and bailouts And, we’ve saved the latest and greatest fact for last: as stunning as 0% interest rates sound, the mathematically-challenged-fantasyland called Europe has just one upped everyone by introducing NEGATIVE INTEREST RATES.
As of writing, over 25% of all bonds issued by European governments has a guaranteed negative return for investors.
Germany can borrow money for 5 years at an interest rate of NEGATIVE 0.10%. Yes, instead of Germany paying you interest when you lend them money, you have to pay them interest.
These same negative interest rate conditions exist across many of the Eurozone countries, as well as Denmark, Sweden and Switzerland.
Negative interest rates are by nature irrational.
Why in the world would you pay someone to borrow money from you?
It doesn’t make any sense at all, and this irrational state of affairs will not last for too much longer.
At some point, investors are going to come to the realization that the 35 year bull market for bonds is finished, and then there will be a massive rush for the exits. This rush for the exits will be unlike anything the bond market has ever seen before. Robert Wenzel of the Economic Policy Journal says that this coming rush for the exits will set off a “death spiral”…
Anyone who holds the view that the Fed will not soon raise interest rates,and soon, fails to understand the nature of the developing crisis. It will be led by a collapse of the bond market.
Market forces, somewhat misleadingly called bond-vigilantes, will lead the charge.
I am not as bearish in the short-term on the stock market. The equity markets will be volatile because of the climb in rates and look scary at times but the death spiral will be in the bond market.
As this death spiral accelerates, we are going to see global interest rates rise dramatically. And considering the fact that more than 400 trillion dollars in derivatives are directly tied to interest rates, that is a very scary thing.
And in case you are wondering, the stock market will be deeply affected by all of this as well. I believe that we are going to witness a stock market crash even greater than what we experienced in 2008, and other experts are projecting similar things. For example, just consider what Marc Faber recently told CNBC…
“For the last two years, I’ve been thinking that U.S. stocks are due for a correction,” Faber said Wednesday on CNBC’s “Trading Nation.” “But I always say a bubble is a bubble, and if there’s no correction, the market will go up, and one day it will go down, big time.”
“The market is in a position where it’s not just going to be a 10 percent correction. Maybe it first goes up a bit further, but when it comes, it will be 30 percent or 40 percent minimum!” Faber asserted.
Where we are right now is at the end of the party. There are some that want to keep on dancing to the music for as long as possible, but most can see that things are winding down and people are starting to head for the exits.
The irrational global financial bubble that investors have been enjoying for the past few years has stretched on far longer than it should have. But that is the way irrational bubbles work – they just keep going even when everyone can see that they have become absolutely absurd. However, eventually something always comes along and bursts them, and once that happens markets can crash very, very rapidly.
Courtesy of The Economic Collapse Blog.
By: Voice of Reason
FOR MORE NEWS BY VOICE OF REASON CLICK HERE!
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FOR LINKS TO UNDERSTAND THE ECONOMY & THE COMING ECONOMIC COLLAPSE:
- We Just Broke 2008′s Record For The Fastest Economic Unraveling!
- DOLLAR DOMINATION IS OVER!!!! – OMFIF Discusses Alternatives
- THE TRANS-PACIFC PARTNERSHIP: OBAMA’S HIROSHIMA TO THE ECONOMY!
- U.S. Dollar is Going DOWN! Financiers Rush to Flee the Doomed West!
- 19 Signs That American Families Are Being Economically Destroyed
- You STILL Don’t Believe the Economy Will Collapse? Think Again!
- ECONOMIC COLLAPSE: Have You Done All You Can to Prepare In Advance?
- JP Morgan Chase Banker: You’ll Never Guess… “SUICIDE?!?!?”
- ANOTHER Banker, This One From ABN Amro Commits “Suicide”
- It Is About To Get Ugly: Oil Is Crashing And So Is Greece
- 48 Dead Bankers All From Suicide? – Hold the Key to the Coming Civil War
- Gallup Shatters Obama’s Positive Job Growth: ‘Extremely Misleading’
- Warning: “The American Dream Is About To Drastically Change…
- You Are Witnessing the End of the American Empire… Right Now!
- Dead Bankers Hold the Key to the Coming Civil War
- Why Did This Reporter “Disappear” After Predicting the Collapse of Oil Prices?
- How Plunging Oil Prices Could Lead to World War III
- Something Dark Is Here: Dead Banker List Has Reached 36
- MUST READ! – How to Survive While the Dollar Dies: Preppernomics
- 62 Percent Of Americans Are Living Paycheck To Paycheck
- JP MORGAN PAID HER $9 BILLION DOLLARS TO KEEP FROM TALKING!!!!
- No Recovery From America’s Economic Extinction Level Event
- EXPERT: Obama’s Economic ‘SURGE’ Built on TOTALLY Fabricated Data!
- The New York Federal Reserve Has Signaled the End of the Dollar Is Near
- How Vulnerable Is America to Mass Starvation?
- The Math Does Not Lie: America Is One Hiccup Away From Total Anarchy
- Obama Unemployment Numbers All LIES, LIES, LIES, LIES!
- Expect “DEATH SQUADS” as Civil War Breaks Out In the United States
- US Families Increasingly Prepared For “Modern Day Apocalypse”
- New Law Would Make Taxpayers Potentially Liable For TRILLIONS In Losses
- Debt, $18 Trillion Dollars, Oil, Gold, Currency War, World War
- Guess What Happened The Last Time Commodity Prices Crashed Like This?
- The Calm Before the Storm: All Hell Will Break Loose In 2015
- Collapsing Holiday Sales Are A Signal That A Recession Is Coming
- Plummeting Oil Prices Could Kill Banks Holding Trillions In Derivatives
- WORLD WAR III IS ALL THAT’S LEFT TO SAVE THE AMERICAN ECONOMY
- Indicator That Precedes Almost Every Stock Market Correction
- The Rise of the ‘Petro-yuan’ and the Slow Erosion of Dollar Hegemony
- Asia’s Great Narrative Dilemma: China on the Rise, U.S. Simply Paralyzed?
- Guess What Happened The Last Time The Price Of Oil Crashed Like This?
- CIA: “Forget Iran, Iraq, and Syria this is where WWIII will start”
- Petrodollar Death Means A Liquidity And Oil-Exporting Crisis On Deck
- No One Told You When To Run, You Missed The Starting Gun
- The American Dream Is Leaving America
- Why Are So Many Really Smart People Forecasting Economic Disaster?
- 3/10 Largest Economies In The World Have Already Fallen Into Recession
- Obamacare = A Death Panel For The U.S. Economy
- The U.S. Trade Deficit With China Just Hit A New Record High
- We Have Just Witnessed The Last Gasp Of The Global Economy
- RUSSIA MAY BAN CIRCULATION OF US DOLLAR
- MI5 Officer: US Wants War Against Anyone Not Using PetroDollar
- Financial Collapse Will Cause Civil Unrest in America by 2016
- France Could Be About To Unleash Economic Hell On The U.S.
- Dr. Carson: Obama’s Economic Policies Are “Asinine” [VIDEO]
- Government Economic Numbers Are Being Highly Manipulated
- The 10 Principles of Economics You Should Know
- Pentagon Prepping For Large Scale Economic Breakdown!
- Pentagon not Ready for Cold War 2
- Steve Forbes on Obama Economics, “This is Truly Crazy”
- America Drops Out Of The Top 10 Most Economically Free 1st Time
- Ron Paul Warns of Martial Law and Economic Collapse
- THE ECONOMIC COLLAPSE OF AMERICA HAS BEGUN:
- UNEMPLOYMENT RATE DROPS & ECONOMIC COLLAPSE ACCELERATES
- 19 Very Surprising Facts About The Messed Up State Of The U.S. Economy
- Top Cyclical Forecaster: “Yes, A Mad Max Event Is Possible”
- The Real Story on How the Obama Recovery Is Working Out
- The U.S. Government Is Borrowing About 8 Trillion Dollars A Year
- MOST AMERICANS ARE NOT READY FOR AN ECONOMIC COLLAPSE
- H.R. 2847 – Helping Cause the U.S. Dollar Collapse!
- FALSE EAST/WEST PARADIGM HIDE THE RISE OF NEW GLOBAL CURRENCY
- Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat
- The Collapse Of The American Economy Has Begun
- HUGE: Chinese Renminbi Becomes Directly Tradable With the Euro
- Central Banking Is The Problem, Not The Solution
- Proof That Government Economic Numbers Are Being Highly Manipulated
- The 35.4 Percent of the United States : 109,631,000 on Welfare
- 27 Huge Red Flags For The U.S. Economy
- 17 Facts To Show To Anyone That Believes That The U.S. Economy Is Just Fine
- Obamanomics Under Fire as Economy Slows to 0.1 Percent Growth Rate
- Obama Fiddles While the Economy Burns
- First Time America Drops Out Of Top 10 Most Economically Free Countries
- Obama Doubles Down on Destroying Economy
- The New Realities Of The Obama Economy
FOR MORE LINKS ON MARTIAL LAW:
- MARTIAL LAW, JADE HELM, WALMARTS, TUNNELS, & FEMA CAMPS
- ANNOUNCEMENT ABOUT OBAMA’S MARTIAL LAW PLANS BY RAND PAUL
- Military is Transitioning From Drills (Jade Helm) to MARTIAL LAW…
- DO NOT MISS: MARTIAL LAW – ELEMENTS TO WATCH FOR!
- How to Survive Martial Law! – DETAILED GUIDE!
- Obama Already Has d Over 500,000 Troops Stationed Here For Martial Law
- The “New Army Manual” – Does It Destroy the 1st Amendment?
- NEW ARMY MANUAL: LETHAL FORCE ON U.S. CITIZENS
- Ten Chilling Minutes of Video Exposing Martial Law Preparations
- ALERT: Bill Congress Just Passed May Be Backdoor Attempt to Disarm Vets
- What Will Happen First, Impeachment Or A Military Coup?
- The Government is AFRAID of VETERANS & They Should Be!
- ALERT: Pentagon Prepping For ‘Large Scale Economic Breakdown’…
- Expect “DEATH SQUADS” as Civil War Breaks Out In the U.S.
- The Growing Police State Is Tightening Its Noose Around Our Necks
- Deputy on Tape Saying MRAP Vehicles To Fight Legal Gun Owners
- UPDATE: DHS Insider Says Obama Green Lights a Race War
- GET READY! America’s Death Zones: Where NOT To Be When It Hits The Fan
- Top Cyclical Forecaster: “Yes, A Mad Max Event Is Possible”
- PATH TO MARTIAL LAW???? – Ebola Outbreak ‘Spiraling Out of Control’…
- Martial Law Preparations Being Made – Something Big on the Way
- These Men Are Training To Put You and Your Family In a FEMA Camp
- MUST READ!!! – If You Won’t Fight, You’d Better Start Running!
- Leaked Docs Reveal ‘Urban Training Center’ Based on U.S. Town
- DHS and US Military Make Final Preparations Before Announcing Martial Law
- THOUSANDS OF “MARTIAL LAW NOW IN EFFECT” SIGNS SEEN IN IL.
- ALL ROADS LEAD TO MARIAL LAW!
- FEMA Concentration Camps: Locations and Corresponding Executive Orders!
FOR MORE ON FEMA CAMPS:
- ARMY NOW HIRING: INTERNMENT CAMP/RESETTLEMENT CAMP SPECIALIST
- DOMESTIC RENDITION SITES! Black Sites & FEMA Camps Operational!
- MARTIAL LAW PREPARATIONS BEING MADE!
- SUPREME COURT GREEN LIGHTS DETENTION OF AMERICANS
- “Plan C” and the FBI’s Illegal Detention Plans for American Dissidents
- Supreme Court Justice Scalia Talks About FEMA CAMPS!
- Another 213,146 Americans Volunteer for FEMA Camps
- HOW TO AVOID BEING SENT TO A FEMA CAMP
- Find the FEMA Camp Nearest You – Sound Fun?
- Is Rand Paul Trying to Warn Us of the Coming Internment Camps?
- 2014: Obama FUNDS FEMA Detainment Camps For Anti-Government Activists
- FEMA Building Pricey Domes… ‘For Your Safety’
- Obama Quietly Orders One BILLION Dollars of Disposable FEMA Coffins
- LOCATIONS OF THE FUSION CENTERS!
- NBC News Crew Threatened With Arrest For Filming A FEMA Camp?
- Utah FEMA Camps Secretly Exterminate Homeless
- FEMA’s Requirements for Unaccompanied Minor Shelters
- DHS Prepares For Civil War and Says They Will Kill Patriots?!
- Will You Survive Being Sent To A FEMA Camp?
- FEMA Camps are No Longer a Conspiracy Theory – GOT IT?
- These Men Are Training To Put You and Your Family In a FEMA Camp
- FEMA Camps on Steroids! The New FUSION CENTERS
- WW III Defeat & FEMA CAMPS PLANNED UNDER JARRETT & OBAMA
- PHOTOS: FEMA Camps for Anti-Government Americans EXPOSED
- FEMA Demands Deployable Homes As “Permanent Housing”
- FEMA Camps on Steroids! – Government’s ‘Fusion Centers’
- FEMA Seeks Contractors For Biohazard Disposal – 24-48 Hours Notice
- FEMA Region 3 ACTIVATED!!! – Civil Unrest in West Virginia
- Plans Revealed For FEMA Camps in Puerto Rico
- FEMA Camps Have Begun: Homeless First!
- Military Police Leak FEMA Gun Confiscation Plan…
- 100-Plus UN-Marked MRAPS Deploy To FEMA Camps For Civil Unrest!
- FEMA Preparing Military Police For Gun Confiscation
- Have You Heard of the FEMA Council of Governors?
- Another Blatantly Obvious FEMA Camp Pops Up In Texas!
- FEMA Camps: Locations and Corresponding Executive Orders!
- What are FEMA Camps and Why Should I Be Worried?
- VIDEO: Obama HIMSELF talking about FEMA camps
BE SURE TO CHECK OUT THE GIFT SHOP!
Sounds like straight dope to me.
The idea that we can save this scam is naive. Why would you even want to try? Here is the problem. We have paid a live time into a system that was designed to fail with the scam to benefit the few.