Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Close with Modest Losses but Miners Gain on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 24 2017
By: Ira Epstein

Life Under Manipulation
By: Theodore Butler

Legendary investor names his top junior resource stock picks right now
By: Peter Spina, President, CEO of GoldSeek.com & SilverSeek.com

Silver Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Deflation must be embraced
By: Alasdair Macleod

Gold’s 47-Year Bull Market
By: Steven Saville

Taxes, Macro Signals, Seasonality, US Stocks and Gold Miners
By: Gary Tanashian

The Key to Profitably Ending Precious Metals Price Suppression And Other Markets Manipulation!
By: Deepcaster

The Precious Metals Bears' Fear of Fridays
By: Dimitri Speck

 
Search

GoldSeek Web

 
Are Central Banks Going to Intentionally Crash the System?


 -- Published: Thursday, 29 June 2017 | Print  | Disqus 

By Graham Summers

 

Since 2007, the world has packed on a truly staggering amount of Debt.  That year (2007) is now commonly referred to as a debt bubble. At that time, global debt was $149 trillion.

 

Today, 10 years later, it stands at $217 trillion.

 

Put another way, the world has packed on another $68 trillion in debt since the last debt bubble. In terms of Debt to GDP, the world has risen from 276% in 2007 (an already insane amount) to 327%.

 

http://goldseek.com/news/2017/6-29gs.jpg

 

Why does this matter?

 

Because this debt was built on the back of low interest rates. In the last 10 years, bond yields have fallen dramatically thanks to endless Central Bank intervention. In the US, Treasuries hit all time lows. In Europe and Japan, sovereign bond yields actually went to ZERO or even negative as far out as 10 years.

 

So we have a massive debt bubble based on interest rates remaining at or near record lows…

 

This is a bubble in search of a needle. And unfortunately for the financial world, Central Banks have just that.

 

Globally, Central Bankers have sent a clear message: the cost of money, AKA bond yields, is going up.

Global central bankers are coalescing around the message that the cost of money is headed higher -- and markets had better get used to it.

Just a week after signaling near-zero interest rates were appropriate, Bank of England Governor Mark Carney suggested on Wednesday that the time is nearing for an increase. His U.S. counterpart, Janet Yellen, said her policy tightening is on track and Canada’s Stephen Poloz reiterated he may be considering a rate hike.

Source: Bloomberg.

Let’s break this down…

The world is sporting a Debt to GDP ration of 327%.

All of this debt was issued at a time when bond yields were FALLING.

 

Central Bankers now want bond yields to RISE.

 

Are these people TRYING to crash the system?

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 


| Digg This Article
 -- Published: Thursday, 29 June 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.