Article Image

IPFS News Link • Stock Market

Open Madness in Global Bond Markets: Got Gold?

• https://goldswitzerland.com By Matthew Piepenburg

Below, we once again follow the patterns of math and cycles (as well as the open failure of policy makers) to foresee the direction of risk assets, currencies and gold.

The End of Negative Yields: Anything but a Good Sign

Recently, Bloomberg happily announced that the era of "negative yielding" (which technically means "defaulting") USD bonds is over as yields are now "nominally positive."

"Great news!" they tell the huddling masses.

Nothing, however, could be further from the truth.

Let me repeat that: Nothing could be further from the truth.

Yields are only outpacing already embarrassing inflation metrics because bond prices, which move inversely to yields, are tanking in a world which no longer wants or trust USD-based IOUs.

In other words: All this means is that bonds are tanking and inflation is roaring at the same time. 

Great news?                                                                

Furthermore, this so-called "return to normalcy" in positive nominal yields is in fact a neon-flashing sign (or needle) pointing toward the end (and bursting) of a global debt bubble in government bonds.


www.universityofreason.com/a/29887/KWADzukm