SILENCE IN THE ECHO CHAMBER, ALL UNDER CONTROL …
Confirmation over the last six months of central bank commitment to solving a debt and credit crisis with more of the same is really starting to take effect.
It’s truly amazing, that with the prospect of slowing global economic growth and recession looming, Central bank buildings around the world, full of PhD’s, are nothing more than a collection of giant echo chambers!
All their modelling and prognosticating always produces the same fix. More money printing, lower rates, creating even more debt and bubbles, everywhere. Everywhere.
Negative Yielding Debt is now over 13 TRILLION dollar equivalent, and on the rise. Onwards and upwards!!!
We wanted to see Japan added to the chart below, but limited to just Europe still gives you the picture.
The great thing about the matrix below is that it continues to grow. Soon to include the UK, US and Australia, perhaps?
So, Global Bond Yields continue to collapse as Stock Markets soar!! It’s a kind of magic.
Right now, one of the only policy certainties in this monetary world is the commitment of policy-makers to do more of the same.
The question can now be asked, if the current “emergency” stimulus was needed during the last 10 years, what might we need in a recession?
A very relevant question if recession chances are now 90%, according to the probability model below.
Anyway, it seems the answer is now all too much for the gold market. A market not blind to what happens if Central bankers realise their inflationary dreams.
After six…..long……years, can you imagine what might happen when investors, other than the lunatic fringe, wake up and work out that the barbaric useless yellow metal, may have a portfolio use after all?
Full faith and credit!!
Green light, in all major currencies.
However, the biggest opportunity may be in this………Silver, the precious metal yet to confirm the gold breakout.
Still, just USD15 an ounce.
Hi ho, hi ho, don’t wait for FOMO!
