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-Last weekend, we said we were not sure how the coronavirus crisis would unfold, but stated that interest rate support (bond price resistance) may have been breached. One week later, it’s become clear that this crisis clearly has legs, and it looks that if this situation grows and becomes more protracted, the long end of the yield curve will invert further, with yields putting in new all-time lows.
-This crisis is such a propitious circumstance for the central banks that has ostensibly come out of nowhere. We can see that this system is working as predicted as commodity prices tumble, inflationary pressures abate, and economic growth fades. If the opposite happened, I would be worried about the loss of control.
-Do not listen to the official word out of the Fed. In order to keep the Federal government in business (The Fed’s prime directive), The Fed desperately needs lower inflation and fading economic growth. This will strengthen its hold over the system of its owners. Much lower rates will prevail over the next few years.
-Powell and Clarida both seemed poker-faced when asked about future policy moves. They both know that QE can never die and that rates must come down
-The futurists and the Bible talk of a financial system that mirrors this current one, but with a regime of institutionalized negative rates. If you can comprehend a system with rates of a negative few percent, then you have the final system. No need for collapses anymore.
–Denmark has finally passed the costs of negative rates onto their depositors. The official word is that negative rates work. Get ready around the world.
-Falling rates will continue to crush the working class. Rents in America’s heartland spiral higher, and it doesn’t matter if the people can afford these costs. Three to four years ago, I begged those listeners in Middle America to buy rental properties, since they were so cheap versus rents. Some deals can still be had as it all comes down to the numbers.