We have a 1. Will the credit markets continue to function normally; what about the crowded Emerging Markets and short dollar trades? However, here's the point: tight financial conditions are coming regardless of what the Fed does. It is unavoidable precisely because of the humongous extent and duration these borrowing costs have been manipulated.
Mobile Banking App | KVB
There's no end in sight for the trap our central bank is in. For without the massive and indiscriminate purchases of the Fed, our Treasury auctions would fail.
- Trade Your Way to Financial Freedom?
- E-Book : Unlocking the World's Largest Financial Secret - Mario Singh.
- Start Your Journey to Financial Freedom.
Meaning, private buyers would only show up after a super spike in yields; but that would render the government insolvent, along with bonds across the entire fixed-income spectrum. This, I remind you, is while debt service costs are at a record low and some bps below average.
E-Book : Unlocking the World’s Largest Financial Secret
Hence, my conclusion regarding the nefarious trade of central banking is irrefutable. Our bond market is now in revolt. The conundrum now is that the Fed must continue to print money at a record pace to keep asset bubbles from crashing. However, if central bankers keep monetizing debt in its reckless pursuit of higher inflation, the disruptive move higher in bond yields could become absolutely intractable and catastrophic for these same asset bubbles.
Later on this year, and into , we will be looking at an economy and stock market that will be suffering from higher taxes, higher interest rates on a massively increased corporate and government debt burden and much higher inflation. We may be faced with the fact that we will be living with this virus, along with various restrictions and lockdowns even after the vaccines have been fully administered. God forbid this to happen, but we must remain vigilant. Hence, even if the market survives this late spring early summer's interest rate spike, we will still have to deal with the eventual reconciliation of these asset bubbles once the record-breaking fiscal and monetary cliff arrives.
Freedom fatality of the Fed
Contributing to kitco. Interactive Chart. Make Kitco Your Homepage.
Kitco Gold Index. Search Stocks.
About Kitco News. Search News. Mining Mining News. Kitco Gibson Capital. Metals Futures. License: CC Attribution License. Full Name Comment goes here.
Are you sure you want to Yes No. Be the first to like this. No Downloads. Views Total views. Actions Shares. No notes for slide. You just clipped your first slide! Clipping is a handy way to collect important slides you want to go back to later. You should ensure you obtain, read and understand any applicable offer or disclosure document before trading or acting upon any general advice provided in relation to any such products.
Google Review. Google Rating. Learn to Trade Philippines 4. Roda Angelynne Lee 03 Feb John Jerome Arceo 26 Jan Christopher Dacuba 21 Jan Marievic Tecson 11 Jan Jan Philip 21 Dec Marvin Abella 14 Dec Mj Dimayuga 30 Nov Samuel Siong Mayos jr 24 Nov Kristina 26 Oct Vincent Antonio 19 Oct Jeffrey Capistrano 05 Jun Jhoanne Gacutan 26 May Mario Calatan 26 May Vincent Romar Sering 28 Apr Cris Paller 18 Feb Dave Algreg 05 Feb Ted Osias Vendiola 06 Jan Lea Aicel Laugan 07 Dec