Rick’s Picks continues to expect much lower long-term rates — as low, possibly, as 1.64% versus a current 2.82%. This forecast goes sharply against a consensus of heavyweights that includes Bill Gross, David Stockman, the board members of the Federal Reserve, all bankers and, presumably, every economist in government and the academic world. The technical basis for the prediction is shown in the chart accompanying Monday’s tout for TYX, a CBOE proxy for rates on 30-Year Treasurys. Charts aside, a steep drop in interest rates would correspond to the deflationary implosion of the global financial system that we have been predicting, and writing about frequently, for more than two decades. If you don’t subscribe but would like access to the TYX tout, as well as to a 24/7 chat room that draws veteran traders from around the world, click here for a free trial subscription.
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The 4 week rule break out up last week, in the 30 year contract suggest higher contract prices. The opening INDU gap today is a OPPS sell down, which have several clusters of harmonic Time Price (daily and weekly) levels off the INDU/SP market from the all time high to the recent Auggie lows.
Of course,
We are following the path blazed by Japan 20 years ago.
Look at their government paper interest rates.
Look at their zombie banks.
For that matter, what nation on this planet has an old fashioned economic system where a trade imbalance is settled by the transfer of gold bullion?
The Swiss made a feeble attempt at that in the FX market, but gave up when their exports were threatened by a strong Franc.
Everyone is running the same con.
It’s the only game in town.
Now and forever.