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So it Begins: The Bond Crash Looks to be Here, and Investors Are Panicking

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dollar-tsunami

By: Voice of Reason

FOR MORE NEWS BY VOICE OF REASON CLICK HERE!

 

UNLESS YOU’VE BEEN LIVING UNDER A ROCK… 

YOU PROBABLY KNOW A FINANCIAL TSUNAMI IS HEADED RIGHT FOR US… 

I find it hard to believe how many people are in denial that a financial storm of biblical proportions is coming. I don’t profess to be the brightest bulb on the tree at all times, but I have no formal economic training, and I PREDICTED MUCH OF WHAT WE ARE SEEING NOW, AND ABOUT TO SEE OVER TWO YEARS AGO. Oddly, I did the same thing in 2004 when I had the housing crash of 2008 pegged almost to the day. I dunno. This stuff isn’t that hard to figure out with a pad, pen, and even a hint of common sense. Part of having common sense, is knowing to IGNORE everything the talking heads on TV are saying or what you read in the mainstream media. Do you realize in the 80’s there were 50 major media companies? Today, only SIX remain. EVERYTHING comes from those same SIX companies, and FIVE out SIX are ultra liberal funny farms. 

For all those that HAVE been under a rock, my guess is you had TV down there right? Uh, have you not noticed every other commercial is talking about buying Gold to hedge the impending IMPLOSION? Wow, Let me know how that blissful ignorance works out for you and your families. There are links at the bottom of this post detailing everything you could want to know about the how and why behind the coming crash. Perhaps I should say coming apocalypse because it would be more accurate. This is not going to be an “economic downturn.” This is going to be a global DEPRESSION worse than our civilization has ever seen. Read the links below. It’s so black and white it’s scary. Much like 2008, we’ll be the catalyst that drags the world down with us, only this time we won’t get out of it…. not in my lifetime anyway. Do your homework, and there is PLENTY of precedent for what I am saying. We have become so fat and stupid in America, and thanks to liberals re-writing history, no one actually knows the REAL history… so we are doomed to repeat the mistakes we easily could have avoided. 

 

THAT TIME IS LONG GONE!

It’s time to pay the piper. This crash is going to finally put an end to the Dollar as the World Reserve Currency. Having the world Reserve Currency has given America special privileges and ENORMOUS power over the years… power we abused. Our status has allowed us to borrow money at rates a fraction of our “ALLIES.” With everything being denominated in U.S. Dollars, it gave the United States control in everyone else’s financial affairs. It appears everyone else got tired of it. Furthermore, whenever trouble has struck, America has just started up the printing press. Since taking office, Obama has printed approximately $85 BILLION PER MONTH OUT OF THIN AIR. By joining China’s new bank discussed below, our “ALLIES,” and the rest of the world, have sent a CLEAR message to America: 

 

YOU ARE BROKE, AND YOU ARE OBSOLETE!

In my post titled, DEATHBLOW TO THE DOLLAR – EVEN OUR “ALLIES” ARE ABANDONING US, the The Trumpet writes: The blows to America’s economic might are descending rapidly and forcibly. Brace yourself: A new economic age is about to begin.” The infrastructure is being built for a world without the United States. China’s new long-awaited international payment system could go live as early as September or October. The new payment system will allow nations and companies to conduct transactions outside America’s control. Furthermore, America’s financial house will be in such disarray, some have said WITHIN ONE YEAR OF THE ECONOMIC CRASH, 9 OUT OF 10 AMERICANS WILL BE DEAD. 

 

A NEW DAY IN AMERICA IS ALMOST HERE… 

BRACE YOURSELVES…

THE WORLD IS ENTERING A NEW ECONOMIC ERA – ONE THAT WON’T BE DEFINED BY AMERICA!

This past March marked a radical turning point for the global economy, particularly the United States’ economic dominance.

China proposed the launch of the Asian Infrastructure Investment Bank (aiib)—a new, Chinese-run international bank specifically designed to challenge U.S. global economic leadership. America tried to convince other nations not to agree to join. But it failed—even with its closest allies.

 

FOR THE U.S., IT WAS AN UNMITIGATED DISASTER!

It should be a “wake-up call,” to a “new economic era,” wrote former Treasury Secretary Larry Summers.

The world essentially closed ranks and turned its back on America.

“The battle of wills between Beijing and Washington over a China-sponsored development bank for Asia is turning into a rout,” wrote the Washington Times. “[T]he Obama administration has found itself isolated and embarrassed as its top allies lined up this week to join the proposed Asian Infrastructure Investment Bank” (March 18).

SADLY, IT WAS OUT MOST IMPORTANT ALLY THAT LED THE DEFECTION…

A RESULT OF HOW OBAMA HAS TREATED ALLIES? 

NAH… OF COURSE NOT!

YOU KNOW WHAT IS REALLY SCARY? NO ONE DARES BRING UP THE PINK ELEPHANT…

I don’t think its a stretch to say most Americans have heard ad nausium if Greece goes, so does the European Union – hence all the bailouts to try to save Greece. Just LOOK at all the chaos it has caused Europe. Now for some facts:

I don’t know how many countries make up the whole European Union but I know as a whole they have a $16 TRILLION dollar economy. Greece makes up 2% of their GDP. Hmmmm. If a measly 2% has the potential to bring down an entire continent’s financial system, lets compare that to the United States.

The United States has a $15 TRILLION dollar economy. Anyone care to venture a guess what percentage our “liberal bastions of insanity” here in the U.S. make up as a percentage of our GDP? Of course I am referring to New York, New Jersey, Illinois, California, & Massachusetts. I don’t know what the percentage is, but can we agree its higher than the 2% Greece is? Why is no one talking about this? I think we could say ULTRA conservatively those states make up 15% of our GDP. Sadly, the insane union pensions make up hundreds of billions of dollars in unfunded liabilities coming due. How do you suppose we’ll get out of that one? Don’t even say China. If 2% Greece can bring down Europe, imagine what happens WHEN, not IF those states go belly up. WOW. 

EARTH TO LIBERALS: 

SOONER OR LATER YOU ALWAYS RUN OUT OF OTHER PEOPLE’S MONEY!

 

Is the financial collapse that so many are expecting in the second half of 2015 already starting?  Many have believed that we would see bonds crash before the stock market crashes, and that is precisely what is happening right now.  Since mid-April, the yield on 10 year German bonds has shot up from 0.05 percent to 0.89 percent.  But much of that jump has come this week.  Just a couple of days ago, the yield on 10 year German bonds was sitting at just 0.54 percent.  And it isn’t just Germany – bond yields are going crazy all over Europe.  So far, it is being estimated that global investors have lost more than half a trillion dollars, and there is much more room for these bonds to fall.  In the end, the overall losses could be well into the trillions even before the stock market collapses.

I know that for most average Americans, talk about “bond yields” is rather boring.  But it is important to understand these things, because we could very well be looking at the beginning of the next great financial crisis.  The following is an excerpt from an article by Wolf Richter in which he details the unprecedented carnage that we have witnessed over the past few days…

On Tuesday, ahead of the ECB’s policy announcement today, German Bunds sagged, and the 10-year yield soared from 0.54% to 0.72%, drawing a squiggly diagonal line across the chart. In just one day, yield increased by one-third!

Makes you wonder to which well-connected hedge funds the ECB had once again leaked its policy statement and the all-important speech by ECB President Mario Draghi that the rest of us got see today.

And today, the German 10-year yield jump to 0.89%, the highest since October last year. From the low in mid-April of 0.05% to today’s 0.89% in just seven weeks! Bond prices, in turn, have plunged!  This is the definition of a “rout.”

Other euro sovereign bonds have gone through a similar rout, with the Spanish 10-year yield soaring from 1.05% in March to 2.07% today, and the Italian 10-year yields jumping from a low in March of 1.03% to 2.17% now.

What this means is that the central banks are losing control.

In particular, the European Central Bank has been trying very hard to force yields down, and now the exact opposite is happening.

This is very bad news for a global financial system that is absolutely teeming with red ink.  Since the last financial crisis, our planet has been on the greatest debt binge of all time.  If we are moving into a time of higher interest rates, that is going to cause enormous problems.  Unfortunately, CNBC says that is precisely where things are headed…

The wild breakout in German yields is rocking global debt markets, and giving investors an early glimpse of the uneasy future for bonds in a world of higher interest rates.

The shakeout also carries a message for corporate bond investors, who have snapped up a record level of new issuance this year, and are now seeing negative total returns in the secondary market for the first time this year.

Read more here: http://right.is/politics/2015/06/so-it-begins-the-bond-crash-looks-to-be-here-and-investors-are-panicking-28723.html

 

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In other words, we suck; China rocks.

There are no accidents. US dominance did not occur naturally.

The article describes the symptoms of a disease, not the cause, the root rot that put New World Order wheels into motion. Chinese people are an obedient slave species, willing to follow their tyrannical leaders to world control. I don't see that happening, as other world events will intervene.

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Hy o Silver Away!
Gold Too!

but only for a very short while.

Last year I saw Marc Farber being asked on a biz show about the best investment. His answer: a farm. Excuse me, sir, what did you say? A farm. 

The time to start prepping was yesterday. That includes junk silver, right, CM?

Mole, good to see you posting. How ya doin'?

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Every bit of spare fiat (which is not much, LOL) I have right now is going into buying bitcoin and silver.

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Bitcoin's doing just fine.  It never "collapsed" (it's still way higher than it was before the Cyprus banking crisis, which is what caused the initial big rise.)  Sure, the price dipped (because it was slightly overbought, mostly by the Chinese; when China banned it, the price went down), however, as with all things, the adage: 'buy low, sell high' always applies! :vFpL81r:
Flight to real assets happens when :Shitfan: and bitcoin is a very reliable real asset indeed.  It's in the same arena as gold and silver.  Sure, some people are skeptical about it and they are mostly the ones who don't quite grasp the actual concept, nevermind the technical side (which was a monumental breakthrough in computer science, btw.)
 

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Bitcoin, really? I thought that collapsed.

​My daughters boyfriend and his partner started worldcoin.

Yes, Grav, I'm a bit better. My youngest 28 year old daughter
is at the hospital with my wife though. Stomach virus, and with
her seizure condition, she cannot hold down her medications,
and that's a no no!

Also, just about 20 minutes ago, my wife called to tell me that
10-12 ambulances came to the ER. They made everyone who
was in the er with any patients leave and go out into the waiting
room. Whatever it is, its big, and the crazy part, I cannot get any
information about what's happening, and I know all the right people,
and they're not getting anything either. Strange, just like the family
member posting on facebook last night about the plane going down.
I couldn't even check anything about that today as this is my wives
side of the family, and I'm not a facebook person anymore.

My wife was out since 6:30 am, and when she came home at 8:30pm,
it was straight to the hospital with my daughter. It's 11:30, and they're
not home yet. My wife is going to try to find out whats happening at the
hospital, and when she gets home, the plane crash last night as well.

Edited by Cryptic Mole

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