Posted on 08/14/2019 10:55:30 AM PDT by rightwingintelligentsia
Consumer spending is 70% of the Gross Domestic Spending. The enemy’s strategy is to destabilize markets, thereby hoping to dampen the “wealth effect” of assets, like stocks or home ownership.
https://www.investopedia.com/terms/w/wealtheffect.asp
If they can stampede consumers into NOT spending, then recession would become a self-fulfilling prophesy.
“Yellen is agreeing with Peter Navaro that people are borrowing money in Europe with negative interest rates (they pay back less than they borrow) to buy US 10 and 30 year Treasuries (they get back nearly 2.0% on their borrowed money). The technical term for this is win-win and with trillions of dollars in the float it amounts to real money. This completely nullifies the predictive value of the inverted yield curve and the equities algorithms and traders are selling based on the expectation of a recession that will not happen. When they come to their senses and realize their mistake they will pour into equities again. That coupled with the crowd that is boycotting equities because Trump is President will provide the fuel for a powerful FOMA upside when they realize that he is going to get reelected in 2020.”
Boom! Add to it when the Fed finally cuts the rate to offset this these countries will stop buying USTs and the yield will shoot up.
Yes, in a negative yield Rest of World US Treasuries are Free Money used in place of banks.
The high rate vs. rest of world is Globalist economic warfare against Trump.
I hope Trump continues to fight back. How ‘bout cutting all carbon laws, declaring global warming a fraud and giving a tax credit for converting power plants to coal?
Cheap energy is the life blood of economic booms.
Well, yes, but only because it has had a huge run already.
Thing is there has been no gold confirmation. Gold should have rallied huge today on an inverted yield curve.
Been like Vegas since 1995. Bad news = up. Good news = up. Today is 800 sure, but it will find the lamest excuse to rally that back.
The inverted yield curve is artificial. It is not caused by the economy. Sorry dems, no recession.
bmp
Agreed. Fed has created a mess. Now they need a way out. Hence Janet is talking. No recession but the fed got caught playing National politics in an international environment.
If the market craters then it was pure politics and we all see it.
And,
Walmart Stock Is Rising After Reporting Strong Earnings, Boosting Its Outlook
By David Marino-Nachison
Updated Aug. 15, 2019 9:50 am ET
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