The T-Bill Yield Curve Inverts: A Recession is a Year Away
A fundamental warning indicator of a potential recession was triggered on Friday afternoon, as a result of the 3 month T bill rate exceeding that of 10-year Treasuries. What this would suggest is that short term government bonds are producing larger returns than long term treasury instruments, showing that investors have a negative outlook of the economy long term.
To state this in other words, the rare occurrence of a yield curve inversion has historically predicted recessions in 1989, 2000, 2007, and what will likely be 2020.
The ONLY Thing Propping Up the Current Stock Market
The Federal Reserve System recently revealed that that they had no need to lift interest rates any longer for 2019, primarily admitting they could not any longer. This is a reverse from an exact previous plan to raise rates a minimum of 4 times this ucpoming year. Upon raising rates in the previous year to a nominal rate of a miniscule 2.5%, the stock exchange began a 3 month dive starting in October, and had a spectacular devaluation during the holiday season in 2018.
What this suggests is that the Fed Reserve is confessing that the economy isn’t that sturdy in any case, and with no more zero interest rates to make sure lots of free money get injected into the equity and bond markets, the Dow-Jones and other exchanges don’t have the necessary fuel to remain on their upward price movement for much longer.
Federal Reserve Chair Powell Backtracks on Original Intent to Raise Interest Rates
After flip-flopping on future interest rate hikes, the Federal Reserve has shown their real agena, and if you interpret reality you’ll see that they’re not opposed to dropping rates back to zero, if not going into a time of negative interest rates- charging you money for just holding yours in too-big-too-fail banking institutions.
But maybe unsurprisingly this is simply the outcome of ten years of quantitative easing, money printing, tax cuts for the rich corporations resulting in them performing stock share buybacks to prop up their share price- events that have occurred during a surreal time where consumer, corporate, national, and worldwide debt have soared to a combined $250 trillion and at which currently, everyone admits can never ever be paid off.
So as we tend to sit and await the worldwide debt default, it’ll be up for discussion to figure out the next trigger as housing markets around the world still continue to slide, the school student loan bubble rises to new heights, and presently record retail location closures and people missing their vehicle payments for 3 months straight paint a scenario which will not end well.
Indeed, the economy isn’t as upright as the “experts” have been claiming, and central banks round the world are quietly buying gold in emergency-like proportions. Gold in your IRA is another option as prices are at all-time historic lows, and many assess precious metals as the last real investment opportunity left that is not in a current bubble or fresh off from a burst bubble.
Precious Metals Could Soar in the Coming Years
A great way to protect your retirement with gold and silver is to simply shop for it yourself online. If you have a 401K, Roth IRA or IRA and want to secure a large position in gold or silver, a Gold IRA rollover could be beneficial to your overall portfolio, providing a tax haven, allowing for holding metals and ownership of real gold, and enabling buyers to accept delivery whenever they like.
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