BLOOMBERG – July 31, 2017: No Bubble in Stocks, but look out when Bonds pop (BATTLEFORWORLD: U.S. Treasury Bonds), Greenspan says. Inflation won’t stay at historically low levels (BATTLEFORWORLD: And when it pops, inflation will skyrocket. Refer to the article The Reason Behind The United States Mischief With North Korea – America-China Financial Wars; And Iran), dooming bonds, Fed Model justifies elevated stock valuations for now.
Equity bears hunting for excess in the stock market might be better off worrying about bond prices, Alan Greenspan says. That’s where the actual bubble is, and when it pops, it’ll be bad for everyone. “By any measure, real long-term interest rates are much too low and therefore unsustainable,” the former Federal Reserve chairman said in an interview. “When they move higher they are likely to move reasonably fast. We are experiencing a bubble, not in stock prices but in bond prices. This is not discounted in the marketplace.”
“The real problem is that when the bond-market bubble collapses, long-term interest rates will rise,” Greenspan said. “We are moving into a different phase of the economy — to a stagflation not seen since the 1970s. That is not good for asset prices.”
Stocks, in particular, will suffer with bonds, as surging real interest rates will challenge one of the few remaining valuation cases that looks more gently upon U.S. equity prices, Greenspan argues.
If rates start rising quickly, investors would be advised to abandon stocks apace, Greenspan’s argument holds. Link: Read Complete Article
References – Links:
[ Greenspan: It’s About To Burst ]
BATTLEFORWORLD – August 2, 2017: Well, Greenspan spoke in codes, and I decoded it.
Greenspan’s words, paraphrasing here, implies that at some point the US will have to stop its bellicose foreign policy, and when that happens, the US economy will fall, because it can no longer create debt to finance the federal budget and maintain a low interest rate.
That is why the United States panics investors to buy into US dollars so that it can create more debt to finance the federal budget, etc.
Reagan did it, Bush Sr. did it, Clinton did it, Bush Jr. did it, Obama did it, but Trump says he was not going to do it, i.e. no more foreign policy wars, and found himself in trouble with media attacking everywhere, and now Trump is doing the same as the rest of them — bullying other countries — taking their dollars to create debt for the US Federal Government so that Americans can continue to live their dreams.
>>N. Korea says they…
America is behind the North Korea drama. It uses it to create panic. And have the nerve to tell China to fix it. It is the US who is animating N. Korea to do those things. If the US does not do that, it cannot create debt so Americans can continue to live their dreams. B***r’s friend said that Americans were living off other people’s blood, and I have come to realize that he’s correct.
In America it does not matter who is elected president, because its foreign policy aggression blueprint remains the same, pushing ahead toward one world dictatorship and domination.
And it’s foreign policy is symbiotic, because the scheme is organized around aggression to create “panic”, i.e. fear-mongering, together with the press/media pushing doom tales.
And if America can no longer create panic, it can no longer create debt, and so the American dream is over.