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European bonds PLUMMETING after Brexit!! AUSTRIA AND FRANCE HAVE COLLAPSED -85%


Government Bond values in European Countries are PLUMMETING on a scale never before seen, as Quarter 1 of 2021 commences after the official "BREXIT."
Government Bond values in European Countries are PLUMMETING on a scale never before seen, as Quarter 1 of 2021 commences after the official "BREXIT."
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Also we will be moving to a Gold Standard soon. To be announced.
National Guard is being rolled out in certain U.S. states already.
NG Troops arriving in LA. to assist with Covid 19 expected to be fully deployed by Jan 4th ?
https://twitter.com/GREEEN_UP/status/1344699290535354376
https://poal.co/s/QStorm/241949
Everyone ready for a TRULY EXCITING NEW YEAR???
I know bonds are primarily loans made to companies and draw interest, while stocks are buying some perceived value or worth of a company and are riskier than bonds. Most people spread the risk across multiple companies by buying mutual funds and in the case of bonds that also includes government bonds.
The great real estate crisis of 2008 came out of mortgage bond mutual funds where you had a mixture of safe mortgages and risky ones. The Dims blamed George Bush but they were really the responsible ones by pushing home ownership on people who could not afford it and resisting Bush's effort to restrain their nonsense. When people began walking away from variable interest mortgages, the system collapsed.
Nobody really knows the dynamics of negative interest rates, though. It's not just a mirror image of positive interest rates. CHANGES of over 100-300%% DOWN in rates that are already negative is still a very concerning development. Very concerning. It means people are willing to pay 100-300% more than they were just a few days ago, for the privilege of lending their money. Repeat: they are PAYING people to borrow their money ! That portends a rapidly collapsing perception of the value of money. Bizarro world !
Once the fall in European bonds takes hold, look out below. Everyone will want out. Where will they go?
(BTW, there appear to be some numerical errors in the table shown for Russian bonds because they do not all add up. I am assuming though most of the numbers are generally correct.)
So having said that, bonds start to make sense as a commentary on the world economy, since the worldwide bond market is about 7-10 times as large as the worldwide stock market capitalization ( present stock bubble notwithstanding ). That sense is, historically consistent bond 4-6 % interest rates mean the issuer nation has good prospects for growth in their real economy, because the money will be put to good productive use giving a return. The GDP of such nations is a fairly accurate reflection of production activity. Hence the long-term savers' preference for them. Low or negative rates ( U.S. and Europe and some Asia ) mean most of the money is used to achieve financial or consumption goals, and the issuance will be either sold to each other or "used up" instead of returned with interest. The GDP of these nations is an ephemera of consumption and government spending, and indicates a declining prospect for any future.
Not good news for the U.S. and Europe. The Fed will have to really ramp up money-printing in 2021 to basically finance a collapsing real economy made worse by the virus lockdowns. They will concurrently hold interest rates low by directly buying or arranging the purchase of the Treasury bonds by investment banks like GS and JPM. The financial and consumer world will appear rescued, once again, and those who make their living off it ( about 75% if all are included ) will be relieved. However, the real economy will continue to suffer capital neglect or destruction until the dearth of real goods is perceived even more than it is now, then WHAM.
This is the big picture Hal's article reveals.
To explain myself: it is always possible to print money for the financial system to exchange among themselves, even when they have made a bunch of bad investments in Ponzi-like schemes such as mortgage bundling, and it makes the system seem stable. However, some of this money always leaks out in the form of salaries, building expenses, lavish perks, frivolous projects, graft payments, taxes, and the like. This money goes on to steadily consume real wealth, i.e., production, in order to feed, house, and clothe the beneficiaries of the leaked-out money. When the supply of real wealth starts to get thin, owing to the neglect of REAL investment in the capital that produces it, PLUS the growing extravagance of the "upper classes" who got in on this money, then a panic can start when it becomes apparent there is tremendously more debt than true value of wealth. When that perception takes even a small hold, then a critical number of people want out of any long-term investment; even six months' worth. They want to buy stuff NOW, while it's available. Just a small amount of such debt note selling, when there is a severe overhang of debt, can trigger everyone for the door.
So, IMO, this could be the Real McCoy ( showing my age there ). But, it IS also possible to engineer such a crash on purpose, when you don't care if the whole system ends up at the bottom of a ravine, as HJ and Tek suggest below. That also aligns with the scenario Katherine Fitts and RFK, Jr. outlined on Hal's show Wednesday night - that there is a bunch of no-good, dirty social bastards who want to "reset" humanity to their liking, confiscating all wealth that has debt behind it. Eternal Hell is a heartbeat away for such people; indeed for all unrepentant, rich or poor.
Rinse, Wash and Repeat.
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