Central Banks Are Going to Have to “Pull the Plug” on Stocks

Thursday, January 18, 2018
By Paul Martin

By: Graham Summers
GoldSeek.com
Thursday, 18 January 2018

It’s no secret that Central Banks have been funneling liquidity both directly and indirectly into stocks. However, what most investors don’t realize is that this liquidity pump is about to end.

Why?

Because the endless streams of liquidity (Central Banks continue to run QE programs of $100+ billion per month despite the global economy stabilizing) have unleashed inflation.

Forget the “official” date. That stuff is all propaganda. Take a look at what is happening in the bond markets which trade based on inflation in the real world.

When inflation rises, bond yields rise. And right now, sovereign bond yields are rising around the world.

The yield on the US 10-Year Treasury has broken its 20-year downtrend.

The US is not alone… the yield on 10-Year German Bunds has also broken its downtrend.

Even Japan’s sovereign bonds are coming into the “inflationary” crosshairs with yields on the 10-Year Japanese Government Bond just beginning to break about their long-term downtrend.

The Rest…HERE

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