The economy has gone suicidal. It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the world’s most powerful bankers are any indication.
Remember Ray Dalio's warning from early 2016 that if assets remain correlated and things continue to move in the “wrong” direction, "there’ll be a depression"? Well, this is where we are now courtesy of the latest observations of Citi's Matt King...
Most people think of the money they deposit into the bank as a personal asset they own. But that’s not true.People in Cyprus had to find this out the hard way in early 2013... and the Italians are next to find out.
"... it would only take a 100 basis point rise in Treasury bond yields to trigger the worst price decline in bonds since the 1981 bond market crash. And since those interest rates are embedded in the pricing of all investment assets, that would send them all much lower."
Does being the Managing Director of the International Monetary Fund mean never having to say sorry? As Christine Lagarde blunders on from one mishap to another with apparent insouciance, it would appear so.