Jack discusses the global bond market conditions today, many times the
size of the world’s stock markets and far more important. Bond guru,
Bill Gross, this week forewarned of a ‘supernova’ explosion coming in
global bond markets as a consequence of the $10 trillion (and growing)
in government bond negative interest rates (not counting corporate
bonds). Is there a ‘bubble’ in global bonds? Will it bust? When and
Where? Jack agrees with Gross and explains why there is—located so far
in Europe and Japan but spreading to the US and taking off in corporate
bonds as well. How the bond bubble is the consequence of central banks’
(US, UK, Europe, Japan) monetary policies since 2008. How tens of
trillions of dollars in money injections by the central banks—in
quantitative easing and zero rate programs—have done little for
stimulating real investment, jobs, incomes and consumption—and instead
have pumped up global stock and other financial markets. The bond bubble
as the latest consequence. Jack predicts why central banks’ NIRP
policies fail to boost real investment and real growth, but are already
having negative consequences for retirees’ and workers’ wage incomes,
growing financial instability, and the slowing real economy. Central
banks’ monetary policies have failed miserably. What’s next? Talk of
‘helicopter money’, ‘guaranteed income’, and bank ‘bail ins’ after the
next bust. Jack warns of likely major global stock market correction
coming soon—in the wake of likely Brexit, NIRP, global oil prices again
falling, and US economic slowdown and predicts a US recession for 2017.
NEXT WEEK: ‘Will There Be a BREXIT?’