by Gary Christenson, Deviant Investor:
It depends upon your perspective and the markets you follow …
The global economy is drowning in debt – $230 Trillion and counting – that will not be repaid at current value. Expect hyperinflation or outright default.
Negative Interest Rates on $13 Trillion in sovereign debt are a sign of failure by central banks, governments, and Keynesian economists.
Pension plans and savers are hurt by low and negative interest rates. They have been sacrificed for the continued levitation in the stock and bond markets.
All of the above indicate a correction and possible collapse are coming. Perhaps it began this month, September 2016.
The charts of six markets tell the story.
Current Highs That Are Worrisome:
Note the circled S&P highs approximately every 91 months and the dangerous breakdown points.
Note the circled T-Bond highs approximately every 91 months. The global bond markets are in a huge bubble, as indicated by negative interest rates, that has lasted over 30 years. “Investors” pay for the privilege of lending money to insolvent governments that will repay, if at all, in devalued currency units.
It is a bubble!
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