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Debt Saturation Meltdown Global Economy In Free Fall


how are lower interest rates, Negative rates going to help when the 10-year bond yield curve is cratering?

[voice of Trump]: "just look! Look at the stock market!"
[voice of Corporate Mass Media]: " coronavirus !11!!!!1!!! "

the Labor Force Participation Rate today, in March 2020, is lower than it was in 2010 during the nadir of the last economic depression.
 link to steemit.com


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HUH? 06.Mar.2020 05:54

Mike Novack

I took a look, and the yield curve is normal across the board (higher rates the longer the term, 2, 10, 30).

And falling interest rates is not a crashing bond market, it is a soaring bond market.

Negative bond rates are another matter, indicating real fear about anay safe haven. Remember, you or I could put $50,000 cash in a bank and it would be insured. They can't do that, put $50,000,000 in the bank because it would not be insured. Can't safely stick under the mattress, either. So a scramble for places to park it.

per usual Novack adds _NOTHING_ and here, actually knows nothing. 06.Mar.2020 06:03


Negative _INTEREST_ ( not "bond" ) rates Mike.

Mike Novack wrote:
"falling interest rates is not a crashing bond market, it is a soaring bond market"

Please provide evidence.

"soaring" bond market precisely what is that?

Mike Novack wrote:
" the yield curve is normal across the board"

Mike Novack, what does "normal across the board" mean?
are you bored?
Look at the big board?

The yield curve inversion between 3-month and 10-year U.S. Treasury bonds is at its most negative point since October 2019.

RE: " scramble for places to park it "

in capital markets money is broadly flowing into one of 2 places: equities or treasuries.

Treasury yields fall as price climbs. If the price of treasuries is rising, money is flowing into them, rather than into equities.


US 10-year Treasury yield nears record low 06.Mar.2020 06:05

Colby Smith and Richard Henderson in New York February 24

Deepening yield curve inversion sparks talk of early Fed rate cut

The yield on benchmark 10-year US Treasuries bore down on a record low on Monday, as the spread of coronavirus prompted another flight to the safety of government debt and some investors placed bets on a spring rate cut by the Federal Reserve.

As a result, the US yield curve, watched by investors for indications of an impending recession in the world's largest economy, was its most deeply inverted since October as the rally in Treasuries intensified.

The 10-year yield fell 11 basis points to 1.37 per cent, within touching distance of the historic low of 1.32 per cent it set in 2016 after the UK's Brexit referendum.

The difference between the yield on three-month Treasury notes and the benchmark 10-year widened to minus-18 basis points. A yield curve inversion, where longer-term yields fall below those on short-term notes, has preceded every recession of the past 50 years, so it has become a must-watch indicator for traders.

HUH? V2.0 Educational Materials (->for Novack) about Negative Interest 06.Mar.2020 06:34


WATCH THIS VIDEO prior to making any more comments about economics or finance, DUMBA** :

(Financialization documentary) The Money Deluge

See Also

The Disaster Of Negative Interest Rates

Fiat currency debt-based economic system has now replaced 'capitalism'

IMF: Global economy, financial system on brink of disaster

IMF and World Bank Heads Debate Growing Debt Problems

The way out for a world economy hooked on debt? More debt

TRUMP [to Federal Reserve]: More Easy Money Please... IN YOUR FACE.

Federal Reserve Cuts Interest Rates For Third Time In 2019

US Federal Reserve Starts "Quantitative Easing Forever"

Obama And Trump: The Two Best Friends The Fed Has Ever Had

Debt-based economic model: Can the US dominate the global financial system forever?

10-year U.S. Treasury bond yields hit .688 new record low 06.Mar.2020 06:52


10-year Treasury bond yield dropped below 1% for the first time in history on Tuesday, March 3 2020

never went below 2.0% in the 2008 crisis

When rates are changing rapidly 07.Mar.2020 05:35

Mike Novack

When we say "inverted yield curve" we USUALLY mean when rates have finished adjusting. We do not mean if they are inverted for a day or so when rates are rapidly going up or down. Rates on the various maturities do not move at EXACTLY the same time. Thus we would say inverted if the 3 mo rate stayed above the 2 yr rate and the 2 yr rate above the 10 yr rate and the 10 yr rate above the 30 yr rate AFTER the rates have finished the move. Not during it momentarily. Being inverted for a day or two means nothing. Staying inverted on the other hand......

THAT would be a serious warning sign (the bond market predicting a FUTURE downturn in the equity markets, by future meaning past the time of the maturity of the inverted debt instruments.

"Staying inverted on the other hand...... " <---THIS is what you don't get 07.Mar.2020 09:04


yield curve _has_ been inverted (or would be without the Fed's propping up of its short end) since the Fed began overnight repo operations back in August 2019... and top Fed/WS banking officials continue to insist "don't call it quantitative easing"...
Bond market is in total collapse mode, would be already beyond collapsed were it not for the Fed's completely artificial and "no-it's-not-QE-so-stop-calling-it-that" multi-trillion dollar bailouts of the WS banks so that their liquidity doesn't freeze.

never mind what I say. Just look at the 3-month / 10-year actual-numbers relationship since summer 2019 to comprehend this. How it is either inverting, or on the cusp of inverting that entire duration while simultaneously the Fed conducts tens-of-billion-$$$-per-week overnight repo, and also simultaneously: "Economy is booming, greatest ever! Look at the stock market!"

You have absolutely zero comprehension or understanding of these topics Mike Novack, please do not contribute here.
oh and for bonus Learning try this :  http://portland.indymedia.org/en/2020/03/438297.shtml

Crude oil at $30 per barrel, still plunging down 08.Mar.2020 23:46


WTI Crude 28.61 -30.69%
Brent Crude 32.60 -27.99%
Natural Gas 1.614 -5.50%
Mars US 2 days 41.98 -10.11%
Opec Basket 51.74 -0.48%

Tomorrow ( Monday March 9th ) and this coming week will be a bellwether for, whether or not this is just an intervallic 'market correction' episode or the stock market and global is ready for complete and total collapse in the greatest magnitude since the 1930s.

Energy and financial sectors of the markets are completely dependent upon high oil price.

Debt bubble may ? completely deflate. Federal Reserve is, right now, desperately attempting to keep the yield curve suppressed with its buying up the bond market, overnight repo operations.

In the last 25 repo operations the Federal Reserve has been involved in, 750 billion dollars more than the entire TARP program has been spent since February 2020. And this doesn't count everything spent since August 2019 by the Fed on Wall Street bank repo operations.

and as discussed in many of the Portland Indymedia references previously posted this meltdown will be much more devastating than any historic past economic trough or hardship.

Prepare yourselves.