LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

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

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

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
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 - 2019



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


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC 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, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.