What people haven’t realized yet is that all this political shit is not going to stop. Everyone is too caught up in the moment and chaos. The Clinton side will continue to blame the FBI and Russia for the election and Trump will not stop being a total jack ass. The deep state including the intelligence departments will do what they can to hold onto what they have and keep the war gears grinding.
Confidence is failing. It is no longer a United States. U.S government long term bonds (our debt) has been in a 35 year bull market. This debt cycle is coming to an end as confidence erodes at a faster rate. The two go hand in hand. More on the end of the bond bull market and what it means below.
Within the next 16 years we will likely see at least one state leave the union as capital flows move toward China.
Nobody (including myself) is really understanding the role they are playing in all this.
Trying to find a news source you can consistently trust is next to impossible. If an important item comes out in the news it may take another 20 minutes to scout around to get the complete context, understand how much of it is real and wonder what agenda could be behind the release. Who’s got time for that? It’s a lot easier just to let your emotions flair up.
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Going back to bonds. Retries are told to keep the majority of their savings in bonds. The Social Security fund is required by law to be invested in non-marketable securities issued and guaranteed by the “full faith and credit” of the federal government.
Due to bond duration (a bonds sensitivity to interest rates), the 10-year and 30 year government bonds will take a large hit if interest rates move just 2% higher.
Example: “For instance, if interest rates were to rise by two percent from today’s low levels, a medium investment grade corporate bond (BBB, Baa rated or similar) with a duration of 8.4 (10-year maturity, 3.5 percent coupon) could lose 15 percent of its market value. A similar investment grade bond with a duration of 14.5 (30-year maturity, 4.5 percent coupon) might experience a loss in value of 26 percent1. The higher level of loss for the longer-term bond happens because its duration number is higher, making it react more dramatically to interest rate changes.”
http://www.finra.org/investors/alerts/duration-what-interest-rate-hike-could-do-your-bond-portfolio
The bond losses are going to effect a tremendous amount of people. We are going to soon have a large “Oh shit” moment as Martin Armstrong likes to say.
I’d advise people to do the best they can to check their emotions do NOT align yourself with either Dems or Republicans so you can try and keep a more objective view to see what is unfolding. Easier said than done.
Politicians never admit when they are wrong. They only double down on the bad idea the moved to push. The above is not what I want it to be, but it is the trend. I do not believe there is anything that will stop it.Politicians never admit when they are wrong. The above is not what I want it to be, but it is the trend. I do not believe there is anything that will stop it.
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