MIDNIGHT LIGHTENING
It Had not even hit the coast between 4 to 5 PM on Friday August 25th......
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DID WE JUST SEE THE LOW IN INTEREST RATES FOR THE YEAR ON FRIDAY ---- YES, UNTIL SHOWN OTHERWISE.
Of course the 36 year cycle low was put into place on July 8th 2016........ we have already embarked on a multiyear bear market in bonds and a multi year rise in interest rates. Which makes sense with all of the asset bubbles that have been going on with the 1% ers..... who are very out of favor with the very angry DJT voters, the Bernie Sanders voters, the Elizabeth Warren and Barney Frank parts of the Democratic
Party and that's a cumulative 70% of the population.... at least.
The 36 year cycle in the bond bull market that began on Oct 9th 1981 at 14.59% yield on the 30 year bond
Ended on July 8th 2016. The Between July 5th and 8th The BOJ, The ECB and the SNB pulled the plug on
driving the long end of the Major Global Sovereign Bonds into Lower and Lower Negative Yield world. The
Fed was also a Master architect of the end of the $16 Trillion dollar Series of Quantivative Easings and
endless balance sheet expansions of the Central Banks balance sheets, as we had asset bubbles in
global Real Estate in Hong kong, New York, London, Paris, Miami, Vancover etc, as well as asset Bubbles in the High end of the Fine Art Market and other markets of the 1% ers.
And Now The mounting asset bubble in the 876 and growing Cryptocurrency market is being viewed with a jaundiced eye and extreme prejudice by the major global Central Banks as no way on earth are they going to let everyone on the planet get into their central banking business of creating digital money out of thin air.
The solution...... get interest rates significantly higher so that Bitcoin, Bitcash, ethereum,, Ripple, LiteCoin, Monero, Ethereum Classic, Dash, MaidSafeCoin, Augar, and NEM
those were the top 10 Cryptocurrencies by market capitalization in January of 2017
atozforex.com
which do not have a yield become less attractive stores of value when we get interest rates on the 30 year up to 4.46% which will be 178 basis point up in a 1.618 move off of the wave 2 low made this week, added to the 1.10 basis point advance from 2.10 on 7/8/16 up to the wave 1 high of 3.197 made on Dec 16th of
2016. This will normalize interest rate and enable Major Pension funds, endowment funds, Insurance companies , as well as savers and folks over 50 who have had the blood squeezed out of them by not being able to get any yield in a Non risky asset class.
When the yield on the 10 year and 30 year note go higher, it leads to a multiple contraction as the earnings
yield and dividend yield on stocks becomes less attractive and equities are riskier assets.
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This is a VERY PROFOUND CHART...... In has Implications for Equity Prices, Commodity prices,
Interest Rate directions and also will be impacting the Major Currencies.
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