US Interest Rate Rise To Highest Since 2008! The Late Market Crash Is Coming Soon?
Today the US interest rates hit their highest levels since 2008. The US 3 Month Treasury bill hit 1.850% the highest since August 18th, 2008. Let's take a look at the way the FED has managed to manipulate interest rates down enough during the last four market crashes down 5-6% to make force the economics to be distorted to lure businesses into more debt as the economy failed. https://apnews.com/b6e16182bc0142fe9f35168b29087d44
If you take a look at the last ten years, it is evident that something unnatural has happened. If the FED pushed interest rates down 5% this time, it would end down to a negative -3.85%. The reason why we haven't seen this yet is that if they went negative people would pull all their cash out of banks creating a massive bank run and the failure on a grand scale of the American banking system.
Josh and I have covered several times spoken about the selloff in US Treasuries by foreign countries. What is happening lately is that the private investors are fleeing US Bonds as well.
Foreign investors hold about 43% of U.S. government debt, the lowest since November 2016. The international buyer's group has steadily reduced their stake in U.S. debt from a peak of 55% during the financial crisis.
People are losing faith in the USD World Reserve Currency System and are looking for options to the failing currency. I would go further to say that most debts have become unsustainable as the world's high on debt is starting to taper and the next bailout/bail-in will take money from those who had little debt and give to those that are most indebted. For the Keynesians debt and inflation is critical to keep their failing system alive.
The only ones buying US debt left is The FED which is not officially purchased debt, but I have seen funny debt accumulation by countries like Belgium and Cayman Isles. I think the ESF SPE an SPV's buying US debt under private names instead of telling the truth that the US is desperately trying to prop up their failing currency in its last days!
The markets in the US is getting ready to crash as the bond yield curve is flattening fast and every time this happens markets come tumbling down.
The end game will be the failure of the dollar no matter what the elite economist think they can manufacture. People will see through it, but with the fall of the dollar, you'll see most other fiat currencies coming down with it as the trust game fails!
Peace, Love and Voluntaryism,
John
These doomsday scenarios are so omnipresent (well, beyond the mainstream) that I doubt there is anyone relevant who hasn't already priced them in. In other words: It probably won't happen, because everyone who can has covered his exposure. Question of course is, who of the relevant players out there is not able to cover his exposure?