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?’
The Spring edition of the Trends Journal (available at Trendsresearch.com) was just released, featuring an in-depth analysis of how central banks have created a ticking time bomb. In this Trends This Week program, Trends Journal publisher Gerald Celente breaks down the indicators that suggest that time bomb is about to go off. From slowing market trade activity to rising gold prices, from the real story behind rising oil prices to what a threat of even moderate interest rate hikes means, Celente slices through the media hype and propaganda to tell the fact-based story of a global economy heading off a cliff.