As I write this, the U.S. 10 Year Treasury bond is yielding 2.31%. It’s currently at a 16 month low. The Fed has been manipulating interest rates lower since 2010, but they have been dramatically reducing their purchases of Treasuries and Mortgage bonds. The 10 year Treasury yield should be rising, if the economy is truly improving. Instead it is plunging, indicating a recession. Real short term interest rates are already Negative. The entire financial system in the United States is manipulated, warped, and false. The free market does not exist. Everything is controlled and rigged by the Federal Reserve and their Wall Street owners.
Interest rates in a free market are supposed to reflect risk, debt levels and economic growth. Look at the bullet points below. Ireland’s debt levels are off the charts. Their economy is still in a shambles. In a free market only a fool would buy their government bonds. I wouldn’t buy their debt if it was yielding 10%. How could it possibly be yielding 1.63%, far lower than U.S. bonds? Spain is on the verge of revolution. Youth unemployment exceeds 40%. Their economy is a joke. Their debt load is unsustainable. How can their bonds be yielding 2.038%?
Is Ireland, Spain, France and Italy really a safer investment than the U.S.? Of course not. Europe is disintegrating before our very eyes. Germany is plunging into recession. The economic sanctions on Russia are backfiring. Not selling stuff to Russia hurts your economy. It’s going to be a cold winter in Europe, especially when Russia turns off the natural gas. The EU has papered over their insolvency with trillions of new debt. Pretending there is no risk, doesn’t mean there is no risk.
Interests rates across the globe do not reflect reality. Central Bankers and politicians think they can pull levers and control the global economy. They are sadly mistaken. The unintended consequences of their reckless actions will destroy the world. When all the bubbles implode simultaneously, the anger, discontent, disillusionment, and seeking of the culprits will lead to riots, revolution, and ultimately to war.
None of this makes sense, but the consequences of what these bankers have done will be dire. This will not end well.
- IRELAND SELLS 10-YEAR BONDS AT RECORD-LOW YIELD OF 1.63%
- GERMAN 10-YEAR BUNDS RISE; YIELD FALLS 2 BASIS POINTS TO 0.88%
- DUTCH 10-YEAR GOVERNMENT BOND YIELD DROPS TO RECORD-LOW 1.021%
- PORTUGUESE 10-YEAR BOND YIELD DROPS TO RECORD-LOW 2.942%
- FRENCH 10-YEAR GOVERNMENT BOND YIELDS DROP TO RECORD-LOW 1.214%
- U.S. 10-YEAR NOTE YIELD DROPS TO 2.296%, LOWEST SINCE JUNE 2013
- SPANISH 10-YEAR BOND YIELD DROPS TO RECORD-LOW 2.038%
- FINNISH 10-YEAR YIELD DROPS TO 1% FOR FIRST TIME ON RECORD