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We Are Being Set Up For Higher Interest Rates, A Major Recession And A Giant Stock Market Crash

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  • “Obama Set Up the Next President For a Major Recession”… And A Giant Crash Is Coming
    by Michael Snyder, November 21st, 2016, Economic Collapse Blog 
    Editor’s Comment: The past many months have carried a lot of noise about the coming crash, about a tipping point that may be fast approaching. The economics are simply giving way, and they can’t hold the illusion forever. Now that Donald Trump will be calling the shots, the money powers can usher in collapse if they wish, and have ready their scapegoat. It won’t just be Trump the man or the president, but the people who elected him, who backed Brexit and who gave up on their system. They people who let loose the chaos that now consumes us.

    Their rage, their anger and their desperation is brewing unrest. The ascent of populism in the political arena has put the establishment in retreat, and revealed, at last, a most dangerous atmosphere, from which collapse can properly precipitate … one in which all regulatory steadiness on the part of the system has been thrown off balance and out of whack by popular revolt. By the time the hammer falls, and the markets fall to the ground, the people rioting in the streets and losing their civility when ATMs stop working and store shelves go empty – these people will become the face of the disaster. The banks have been planning the next rise and fall for sometime; the next phase is all digital, and tightly monitored and controlled.

    We Are Being Set Up For Higher Interest Rates, A Major Recession And A Giant Stock Market Crash
    by Michael Snyder

    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. 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”… 

    read more.

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November 23, 2016 - Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , ,

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