by Andrew Hoffman, Miles Franklin:
Yesterday, we both wrote and spoke of our belief “it” has begun. Sure, TPTB are working overtime to fight powerful winds of change in the financial markets they have long controlled by manipulating, manipulating and manipulating some more. However, watching the average global interest rates plunge to an all-time low this morning, the “most damning proof yet of QE failure” could not be more obvious. Contrary to mainstream belief, we have shouted from the rooftops that Western interest rates will go to zero as the investment community front runs universal “QE to Infinity,” guaranteed to be implemented by all Central banks as the global economy collapses. Below, Zero Hedge highlights Europe’s complete “Japan-ization” – i.e., a financial cancer that can never be cured, but must be treated with exponentially expanding money printing. And unlike actual cancer, “Japan-ization” is as contagious as Ebola – to all nations with fiat currency regimes. Which is to say, in today’s horrifying financial world, all of them.
As for the U.S. economy, which we’re to believe is “recovering” whilst the rest of the world implodes, the benchmark 10-year yield not only breached its 52-week low of 2.31% this morning, but blew through it like a knife through hot butter, touching 2.28% before the Fed intervened with yet another “new hail mary trade.” As for said “recovery,” in last week’s “painting the tape” we predicted “better than expected” NFP employment data, as it was the last such report before the mid-term elections – supplementing our case by citing the verifiable fraud of the October 2012 report.
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