Today, there is over $17T invested in bonds that guarantee a loss, if held to maturity. Think of the madness: You invest $101 today and in 2030 you will receive back $100. While the rate of inflation has been around 1.5% and GDP growth has been 2%-2.5% in the passing decade, owning bonds hasn’t been a bad choice or a lousy decision.
China’s economy is performing POORLY; in fact, it is in massive trouble. The Debt/GDP ratio is something out of a horror film and they’ve just cut rates again!
In 2020, as the economy continues on this same trajectory of prolonging the wealth and income inequality, disgust will reach volcanic heat and erupt.
You can sense the desperation with the old guard. I’m telling you that there are winds of change everywhere I look. For the past few days I’ve been visiting Kiev, Ukraine, and young people are DISGUSTED with politics, with corruption, with the lies and distortions of the previous era.
Trump’s “Tariffs Tantrum” is doing what he intended it to do – show his force and flex his muscles. If Jerome Powell doesn’t want to understand Tweets about cutting rates, Trump attacks the markets on the back end, using the Chinese scare as an excuse.