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Dr. Jim Willie: Worst Bond Crisis in 15 Years, World Quickly Losing Confidence in US (Video)
Most people who use social media have figured out that Facebook and Google are in cahoots with the government, for those who are well aware of the issues it’s high time you switched over to Seen.life. It is a website that is similar to Facebook but without all the censorship.
Right now, thanks to dishonest politicians, and a dishonest media, too many people are paying attention to the equity markets reaching all-time highs, and because of what they’re seeing, they believe they are witnessing a harbinger of better days to come under a Donald Trump presidency. Unfortunately, what too many people are not paying any attention to is the bond market.
DON’T MISS: Dr. Jim Willie: The Dollar Collapse Has Begun; U.S. Bank Failures to Follow
Sure, bonds are harder to understand, and far less sexy than the equity markets, but that is where peoples’ attention ought to be focused right now. If you look throughout history, virtually every stock market crash came after a major bond crash, and bonds are beginning to crash in a major way! In the following video, Dr. Jim Willie joins Elijah Johnson at Silver Doctors just prior to the election to discuss what Michael Snyder this week is calling the beginning of the worst bond crash in 15 years. To help make sense of how you can be certain a crash of biblical proportions is coming, consider the following:
Under Obama, the U.S. printed (figuratively – they called it Quantitative Easing so it would sound better), $85 billion dollars per month out of thin air for AT LEAST the first 6 years of his presidency. Think of how much that diluted the money supply. That dilution becomes inflation. With more money circulating, goods and services cost more. To put the situation in perspective, it helps to realize that when Obama took office, the national debt was $10.6 trillion dollars for all the presidents before Obama COMBINED, and during his miserable eight years in office, Obama doubled that figure, with virtually nothing to show for it. Today, the U.S. national debt is currently sitting at a staggering total of $19,842,173,949,869.58.
With that in mind, consider that inflation is a bond’s worst enemy, but it’s also unavoidable when you print $6 TRILLION+ out of thin air. When inflation expectations rise, interest rates rise, bond yields rise, and bond prices fall. To that end, bond prices/yields, or the prices/yields of bonds with different maturities are an excellent predictor of future economic activity.
Just after the 7:00 minute mark below, Dr. Willie discusses the unprecedented dumping of $51 BILLION in U.S. Treasury Bonds by China and Saudi Arabia over only a two week period just prior to the election, and what it means for the U.S. Dollar.
What happens any time supply exceeds demand in a market of goods being sold? When there is too much quantity, the value of whatever is being sold goes down, and it’s the same with U.S. Treasuries, which makes the Treasury yields go up. That is precisely why interest rates on a 30-year mortgage have already gone up .5% just since the election, and 10 year treasuries have gone up a full 1%…
DO NOT MISS: Dr. Jim Willie: The U.S. Will Lose Global Reserve Status, Expect 80-90% Devaluation of the U.S. Dollar
In this interview, Dr. Willie focuses on the bond market. In a post I will link to later today, Peter Schiff discusses how the U.S. can’t let interest rates go up. We won’t even be able to afford the interest on the $20 TRILLION in debt. Furthermore, we can no longer keep printing, because the Dollar will implode, which is why the Fed is likely to raise rates just before Christmas at their next meeting. You’d be wise to heed what Michael Snyder says in the article below:
“Now is not a time to party. Rather, it is time to batten down the hatches and to prepare for very rough seas ahead. All of the things that so many experts warned were coming may have been delayed slightly, but without a doubt they are still on the way. So get prepared while you still can, because time is running out.”
Most people who use social media have figured out that Facebook and Google are in cahoots with the government, for those who are well aware of the issues it’s high time you switched over to Seen.life. It is a website that is similar to Facebook but without all the censorship.
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Since Donald Trump’s victory on election night we have seen the worst bond crash in 15 years. Global bond investors have seen trillions of dollars of wealth wiped out since November 8th, and analysts are warning of another tough week ahead. The general consensus in the investing community is that a Trump administration will mean much higher inflation, and as a result investors are already starting to demand higher interest rates. Unfortunately for all of us, history has shown that higher interest rates always cause an economic slowdown. And this makes perfect sense, because economic activity naturally slows down when it becomes more expensive to borrow money. The Obama administration had already set up the next president for a major recession anyway, but now this bond crash threatens to bring it on sooner rather than later.
For those that are not familiar with the bond market, when yields go up bond prices go down. And when bond prices go down, that is bad news for economic growth.
DO NOT MISS: Dr. Jim Willie: Huge Red Flags Could Be Telling Us Global Currency Reset Is Upon Us!
So we generally don’t want yields to go up.
Unfortunately, yields have been absolutely soaring over the past couple of weeks, and the yield on 10 year Treasury notes has now jumped “one full percentage point since July”…
The 10-year Treasury yield jumped to 2.36% in late trading on Friday, the highest since December 2015, up 66 basis point since the election, and up one full percentage point since July!
The 10-year yield is at a critical juncture. In terms of reality, the first thing that might happen is a rate increase by the Fed in December, after a year of flip-flopping. A slew of post-election pronouncements by Fed heads – including Yellen’s “relatively soon” – have pushed the odds of a rate hike to 98%.
BE SURE TO CHECK THELASTGREATSTAND.COM FOR SURVIVAL GEAR!
FREE DETAILED GUIDE TO SURVIVING ECONOMIC COLLAPSE OR MARTIAL LAW HERE
As I noted the other day, so many things in our financial system are tied to yields on U.S. Treasury notes. Just look at what is happening to mortgages. As Wolf Richter has noted, the average rate on 30 year mortgages is shooting into the stratosphere…
The carnage in bonds has consequences. The average interest rate of the a conforming 30-year fixed mortgage as of Friday was quoted at 4.125% for top credit scores. That’s up about 0.5 percentage point from just before the election, according to Mortgage News Daily. It put the month “on a short list of 4 worst months in more than a decade.”
If mortgage rates continue to shoot higher, there will be another housing crash.
Rates on auto loans, credit cards and student loans will also be affected. Throughout our economic system it will become much more costly to borrow money, and that will inevitably slow the overall economy down.
DO NOT MISS: Dr. Jim Willie: We Are on the Brink of World War; Americans Totally Clueless
Why bond investors are so on edge these days is because of statements such as this one from Steve Bannon…
In a nascent administration that seems, at best, random in its beliefs, Bannon can seem to be not just a focused voice, but almost a messianic one:
“Like [Andrew] Jackson’s populism, we’re going to build an entirely new political movement,” he says. “It’s everything related to jobs. The conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infrastructure plan. With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Ship yards, iron works, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s, greater than the Reagan revolution — conservatives, plus populists, in an economic nationalist movement.”
Steve Bannon is going to be one of the most influential voices in the new Trump administration, and he is absolutely determined to get this “trillion dollar infrastructure plan” through Congress.
And that is going to mean a lot more borrowing and a lot more spending for a government that is already on pace to add 2.4 trillion dollars to the national debt this fiscal year.
Sadly, all of this comes at a time when the U.S. economy is already starting to show significant signs of slowing down. It is being projected that we will see a sixth straight decline in year-over-year earnings for the S&P 500, and industrial production has now contracted for 14 months in a row.
DO NOT MISS: Dr. Jim Willie: Soon the Fireworks Will Start, then Hell on Earth Follows
The truth is that the economy has been barely treading water for quite some time now, and it isn’t going to take much to push us over the edge. The following comes from Lance Roberts…
With an economy running at below 2%, consumers already heavily indebted, wage growth weak for the bulk of American’s, there is not a lot of wiggle room for policy mistakes.
Combine weak economics with higher interest rates, which negatively impacts consumption, and a stronger dollar, which weighs on exports, and you have a real potential of a recession occurring sooner rather than later.
Yes, the stock market soared immediately following Trump’s election, but it wasn’t because economic conditions actually improved.
If you look at history, a stock market crash almost always follows a major bond crash. So if bond prices keep declining rapidly that is going to be a very ominous sign for stock traders.
And history has also shown us that no bull market can survive a major recession. If the economy suffers a major downturn early in the Trump administration, it is inevitable that stock prices will follow.
The waning days of the Obama administration have set us up perfectly for higher interest rates, a major recession and a giant stock market crash.
Of course any problems that occur after January 20th, 2017 will be blamed on Trump, but the truth is that Obama will be far more responsible for what happens than Trump will be.
Right now so many people have been lulled into a sense of complacency because Donald Trump won the election.
That is an enormous mistake.
A shaking has already begun in the financial world, and this shaking could easily become an avalanche.
Now is not a time to party. Rather, it is time to batten down the hatches and to prepare for very rough seas ahead.
All of the things that so many experts warned were coming may have been delayed slightly, but without a doubt they are still on the way.
So get prepared while you still can, because time is running out.
Most people who use social media have figured out that Facebook and Google are in cahoots with the government, for those who are well aware of the issues it’s high time you switched over to Seen.life. It is a website that is similar to Facebook but without all the censorship.
BE SURE TO CHECK THELASTGREATSTAND.COM FOR SURVIVAL GEAR!
FREE DETAILED GUIDE TO SURVIVING ECONOMIC COLLAPSE OR MARTIAL LAW HERE
IF YOU READ NOTHING ELSE, THE FOLLOWING POSTS ARE ESSENTIAL:
Bill Holter: Between Now and Election Will Be Extremely Dangerous (Video)
Dr. Jim Willie: We Are on the Brink of World War; Americans Totally Clueless - Pt. 1
Dr. Jim Willie: We Are on the Brink of World War; Americans Totally Clueless - Pt. 2
Dr. Jim Willie Reveals 2nd Death Threat From U.S. Government (Video)
Bill Holter: Newly Solidified Chinese Superpower Will Replace Dead U.S. Dollar (Interview)
Peter Schiff: Don’t Believe the Hype! The Real Economic Fallout From Brexit (Video)
How Will the U.S. Conduct Trade With Worthless U.S. Dollars and No Gold? (Video)
Why Did Illuminated George Soros Liquidate 37% of His Stock to Buy Gold? (Video)
What Exactly Does Global Economic Collapse Coming May 2016 Mean?
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FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Dr. Jim Willie: Western Banking Is Totally Broken, Insolvent and Corrupt
Dr. Jim Willie: Huge Red Flags Could Be Telling Us Global Currency Reset Is Upon Us!
Dr. Jim Willie: The Earth Continues to Turn, Even as it Continues to Crumble
Dr. Jim Willie: Collapse of U.S. Dollar, Rise of Gold, and Global Economic Rehab (Video)
Dr. Jim Willie: Understanding the Root Cause of the Coming Global Reset… (Videos)
Dr. Jim Willie: Soon the Fireworks Will Start, then Hell on Earth Follows (Video)
Dr. Jim Willie: China Isolating the U.S. (and U.S. Dollar) From Trade (Video)
Dr. Jim Willie: Banks Are Beginning to Prepare for Nuclear Winter (Interview)
Dr. Jim Willie: U.S. Elites Are Losing All Their Power (Video)
Dr. Jim Willie and the Systematic Bankruptcy of Western Society (Video)
Dr. Jim Willie: New World Order Elites in Absolute Terror of Gold Standard (Audio)
Dr. Jim Willie: We’ve Got “Educated People” That Are Stupid As Bedposts
Dr. Jim Willie: The Dollar is Dead! Even Mainstream Media Realizes it!
Dr. Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions
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FOR MORE LINKS ON MARTIAL LAW:
Reports of Active U.S. Military Drilling for “Authoritarian Rule of Law” (Martial Law)
U.N. Soldier Says They Will Soon Occupy America: “Going Door-to-Door Taking Guns…”
1,500 Pages of New Documents That Reveal U.S. Government’s Martial Law Agenda (Video)
Mainstream Media Blasts Alternative News Personality on FEMA Camps (Videos)
Ron Paul: Undeniable Proof Martial Law Is Coming Because of the Economy (Video)
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Latest News on Government’s Preparing For Civil War or Martial Law (Videos)
Martial Law Convoys Sent to Baton Rouge, Dallas, and St. Paul Before Shootings (Videos)
Pentagon Approves U.N. Use Of Force Against American Civilians (Video)
What Is the U.S. Government Endlessly Preparing For (Videos)
Patriot Films Shocking New Video of a FEMA Camp Recently Discovered in Texas
Major Update to Military Movement and Actual Documentation of Their Plans (Video)
United Nations Troops on U.S. Soil Prepared to Assist With Martial Law? (Videos)
Obama Has Prepared FEMA for All Four Storms… Are You Prepared?
13 States Obama Is Using for His Nefarious Secret Agenda (Video)
Obama: Be Ready For EMP Attacks, Engineered Pandemics, Earthquakes, and Martial Law
How Likely is Martial Law in the US, and What Happens Under Martial Law
Law Enforcement Preparing For Rioting on National Scale (Videos)
All Armed Americans To Be Detained In FEMA Camps Starting In 2017? (Video)
Beware of Martial Law: Obama Will Confiscate Firearms Of All 50 States in 2016
Army Not Prepping for Battle; Training For Riot Control and Martial Law
Pentagon Says Preparing For Huge Civil Unrest in U.S. (Videos)
Political Dissidents Homes Being Marked By FEMA Prior to Martial Law?
Government “Threat List:” 8 Million People To Be Detained Immediately
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this ‘Doctor’ predects a dollar crash every year or so… it gets stale