It is easy to see where interest rates are heading when we know our adversary

Most see chaos, I see order

Predicting the direction of bond yields over time is not very difficult when one understands the conspiracy for a global financial dictatorship and can properly interpret the actions of the central banks with that end goal in mind.

I marvel at the consternation of the Wall Street analysts and alt-financial “gurus” who seem to think that a recession is imminent, because the 10-year UST yield continues to fall.

The Wall Street consensus predicts rising yields. How can it be so wrong?

These prognosticators either have no understanding of the conspiracy or a distorted version of it and refuse to believe that the direction of the yield curve has essentially lost all meaning.  Even worse, the alt-financial media play up the angle that the central banks have lost control and that a catastrophe is in the making. You and I know better. It is this illusion of impending doom that provides the central banks all the reasons they need to continue buying up the world for their owners. Moreover, the manufactured global nation-state friction seems to have been auspiciously timed for the central banks.

Look at these GDP projections. They are hardly recessionary, but the media have us so scared, we will believe anything.

THE CONFERENCE BOARD ECONOMIC OUTLOOK, 2018-2019
Real GDP Growth – Percentage change, seasonally adjusted annual rates (Updated May 9th)

2018 2019 2018 2019 2020
1st
half*
2nd
half*
I Q*
II Q
 III Q IV Q ANNUAL
ANNUAL
ANNUAL
Real
GDP
3.2 2.8 3.2 2.2 2.3 2.2 2.9 2.7 2.1

* Actual

Misdirection by the mainstream, poor alt-financial analysis

The mainstream outlets run cover for the central banks to dispense fear, so that the central banks can embark on more QE. The alt-financial media play off the mainstream and preach catastrophe and doom. Both the mainstream media and alt-media work to ensure the program moves forward.

The stock market and economic outlook in the United States are “deteriorating,” according to an analysis from one of Wall Street’s top investment banks.

Renewed trade tensions and a slump in economic data — ranging from falling durable goods and capital spending to a downshift in the services sector — has put U.S. profits and economic growth at risk, Morgan Stanley warned Tuesday.

“Recent data points suggest US earnings and economic risk is greater than most investors may think,” wrote Michael Wilson, the firm’s chief U.S. equity strategist.

Falling interest rates are sending a warning signal to the stock market – CNBC, May 28th

The mainstream business outlets, like CNBC and Bloomberg, continue to report that the curiously dropping 10-year UST yield is a harbinger for an upcoming recession. Their analysis will flatly deny that the central banks control the entire yield curve. Their stories serve up the same arguments that the controlled U.S. Federal Reserve dishes out.

Look at this offering from the alt-financial media. I came across a post this afternoon from ZeroHedge titled, Yield Curve Flashing Biggest Recession Signal Yet: Shilling Thinks It Started!, and it illustrates my point. While these types of articles serve a number of purposes, they deliver a lot of profit to the owners of the disinfo-front, Zero Hedge. As I write it has already received about 45,000 views.

Back to the analysis….

The brightest analysts on Wall Street refuse to believe that bond market movements have become meaningless. This blog could replace these well-paid analysts as a better predictor

I look at the above chart, and conclude that the U.S. Fed will soon lower the Fed funds rate, because the yields offered up by short-term USD-based assets are much higher than any other larger developed economy. The U.S. Fed has been admitting that it needs to go back into the market and scoop up longer-dated Treasuries to keep their yields falling over time. This will ensure that the U.S. government stays in business for the indefinite future.

The Fed will need to keep a lid on the USD by lowering the Fed funds rate and moving to buy up longer-dated Treasuries. This will diminish global yield differentials

It is not difficult to comprehend why the U.S. dollar continues to defy gravity. How can the U.S. 10-year UST remain above 2.2% when the German, Japanese, and Swiss equivalents yield -0.14%, -0.07%, and -.52%, respectively?  Take a look at the chart below. The only nations with higher yields are poor credits.

Major 10Y Yield Day Weekly Monthly Yearly Date
US 2.27  0.11 -0.11% -0.11% -0.27% -0.50% May/28
UK 0.93  0.13 -0.13% -0.13% -0.23% -0.35% May/28
Japan -0.07  0.00 0.00% % 0.00% -0.09% May/27
Germany -0.14  0.03 0.00% -0.04% -0.13% -0.42% May/27
Canada 1.58  0.08 -0.08% -0.08% -0.15% -0.62% May/28
Switzerland -0.52  0.04 0.01% -0.05% -0.13% -0.41% May/27
India 7.15  0.25 -0.25% -0.25% -0.27% -0.61% May/28
Greece 3.18  0.77 -0.77% -0.79% -0.59% -1.62% May/28
France 0.25  0.01 -0.01% -0.04% -0.11% -0.41% May/28
Netherlands 0.04  0.01 -0.01% -0.10% -0.14% -0.45% May/28
Spain 0.79  0.04 -0.04% -0.09% -0.23% -0.83% May/28
Italy 2.68  0.08 -0.08% -0.08% 0.09% -0.43% May/28
Mexico 7.97  0.10 -0.10% -0.10% -0.15% 0.22% May/28
Portugal 0.94  0.05 -0.05% -0.19% -0.19% -1.24% May/28
New Zealand 1.77  0.04 -0.04% -0.04% -0.16% -0.91% May/28
Australia 1.53  0.15 -0.15% -0.15% -0.27% -1.20% May/28

Let’s take a look at the The Conference Board’s Economic Forecast for the U.S. Economy, which was updated on May 8, 2019.

THE CONFERENCE BOARD ECONOMIC OUTLOOK, 2018-2019
Percentage change, seasonally adjusted annual rates (except where noted)

2018 2019 2018 2019 2020
1st
half*
2nd
half*
I Q*
II Q
 III Q IV Q ANNUAL
ANNUAL
ANNUAL
Real
GDP
3.2 2.8 3.2 2.2 2.3 2.2 2.9 2.7 2.1
Real
Consumer
Spending
2.2 3.0 1.2 2.9 2.7 2.6 2.6 2.5 2.5
Residential
Investment
-2.4 -4.1 -2.8 1.1 1.1 1.3 -0.3 -1.7 1.5
Real
Capital
Spending
10.1 4.0 2.7 6.1 6.0 5.4 6.9 4.8 5.2
Exports 6.4 -1.6 3.7 3.4 3.5 3.7 4.0 2.5 3.7

* Actual Value

These are hardly recessionary numbers and though they may have drifted lower over the past couple weeks, the U.S. economy can withstand relatively higher rates than the rest of the developed economies. But the agenda calls for the central banks to coordinate on a massive scale and guide global sovereign bond yields lower over time. Thus, the U.S. Fed must embark on a dovish program to lower yields across the entire yield curve.

This blog knows what to look for in the U.S. Fed arguments while the million-dollar, all-star analysts cannot come to terms with the grim analysis we dispense on an ongoing basis. The entire global economy and financial system are centrally managed from stem to stern.

I conclude the elites are doing an excellent job. Why do I say this? Because, they are consolidating the world’s wealth and deftly guiding the new world order agenda, while appearing to be inept improvisers. The IV-drip is firmly in place and can be withdrawn at will, but it seems the elites want this to continue for at least a few more years.