Jack discusses the global bond market conditions today, many times the size of the world’s stock markets and far more important. Bond guru, Bill Gross, this week forewarned of a ‘supernova’ explosion coming in global bond markets as a consequence of the $10 trillion (and growing) in government bond negative interest rates (not counting corporate bonds). Is there a ‘bubble’ in global bonds? Will it bust? When and Where? Jack agrees with Gross and explains why there is—located so far in Europe and Japan but spreading to the US and taking off in corporate bonds as well. How the bond bubble is the consequence of central banks’ (US, UK, Europe, Japan) monetary policies since 2008. How tens of trillions of dollars in money injections by the central banks—in quantitative easing and zero rate programs—have done little for stimulating real investment, jobs, incomes and consumption—and instead have pumped up global stock and other financial markets. The bond bubble as the latest consequence. Jack predicts why central banks’ NIRP policies fail to boost real investment and real growth, but are already having negative consequences for retirees’ and workers’ wage incomes, growing financial instability, and the slowing real economy. Central banks’ monetary policies have failed miserably. What’s next? Talk of ‘helicopter money’, ‘guaranteed income’, and bank ‘bail ins’ after the next bust. Jack warns of likely major global stock market correction coming soon—in the wake of likely Brexit, NIRP, global oil prices again falling, and US economic slowdown and predicts a US recession for 2017. NEXT WEEK: ‘Will There Be a BREXIT?’
Jack comments on the recent Wikileaks revelations of secret IMF plans to impose still more austerity on Greece before this summer. Jack revisits his predictions of last summer 2015 that the Greek debt crisis would reappear in 2016 along with the UK exit from the EU and renewed talk of a Greece exit as well—both of which now appear on the agenda. The Troika’s origins of the Greek Debt and why a new kind of financial imperialism is now emerging. Fractures between segments of Europe’s financial-economic elites continue to grow. Jack discusses what’s wrong with US job and GDP numbers, and why China GDP stats are about half of the official GDP rates. Why US central bank, FED, policy of no interest rate hike benefits US multinational companies at the expense of tens of millions of US households and small businesses. Jack concludes with explaining why global oil prices will again fall, China’s mini-stimulus will again fade, and why Japan and Europe will slip further into QE and NIRP (negative interest rates) in coming months.