Is this the Beginning of the End of Easy Money?
In this report I talk about the bond market and how the technical picture in U.S. Treasury yields is pointing to the possible end of the 35-year bull market in bonds and the era of financialization.
In this report I talk about the bond market and how the technical picture in U.S. Treasury yields is pointing to the possible end of the 35-year bull market in bonds and the era of financialization.
The big question is whether the explosion of the bond bubble leads to deflation or inflation. My guess is inflation. Inflation benefits borrowers, since debt can be repaid with worth-less fiat money - and the sovereigns are the biggest debtors of all. The re-set will come, but no way to know when. The current system to stay in place until it can't any more, and the hands of central banks are forced. I'd like to hear more about your reactions to Jim Rickard's books.
I think you are missing the reason why the interest rate has gone down.
In our financial system the money supply has to increase every year or the system will collapse. As such is is natural that debt increases. Interest rates cannot go up without bankrupting everything.
As such I don't see how the time of easy money can come to an end unless the financial system changes fundamentally (I.e. Is not debt based)
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