Investment Manager: “Something Really Ugly Is Brewing”
SilverDoctors.com
June 15, 2016
The bond market is telling us that the global economy is headed into depression. Despite the efforts of the Fed to convince everyone that they are going to raise rates, the yield on the long-maturity Treasury debt continues to head lower. The yield curve is become flatter by the day, which historically has signaled the onset of recession.
The Fed has made every effort to prevent other traditional measures of economic turmoil from sending up systemic warning flares – most notably the stock market and gold – but it appears to be powerless to stop the compression of Treasury bond yields. Something really ugly is brewing in the horizon…
Submitted by Dave Kranzler:
There’s nobody looking for value out here [in the stock market] – there is none. It’s obvious the Fed is holding up the stock market. This is one of the reasons the Fed will never be audited. – Friend and colleague of Investment Research Dynamics.
The money printing by the Fed has created the most overvalued stock and bond market in history. The stock market overvaluation is even worse if you use real accounting. But it’s not just outright money printing. The supply of money includes credit creation. This is a fact that surprisingly is overlooked by most, even those I consider highly intelligent: debt behaves like money until that point in time when the debt is extinguished by repayment – not “restructuring.” Take a look at this:
The Rest…HERE
