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The Second Round of the Crisis Will DWARF 2008 In Size and Scope
If you are an investor, your big concern should not be about what to stocks… but what happens when the bond bubble goes bust.
All of the biggest problems in the financial world revolve around the bond markets today:
1) Greece’s sovereign debt crisis
2) The Bank of Japan is purchasing ALL new debt issuance in Japan.
3) The Fed is terrified of higher interest rates because ever 1% change means over $100 billion more in interest payments on the US debt.
For 30+ years, sovereign nations have been papering over the decline in living standards by issuing debt. In its simplest rendering, sovereign nations spent more than they could collect in taxes, so they issued debt (borrowed money) to fund their various welfare schemes.
This was usually sold as a “temporary” issue. But as politicians have shown us time and again, overspending is never a temporary issue. Today, a whopping 47% of American households receive some kind of Government benefit. This is not temporary… this is endemic.
All of this is spending is being financed by borrowed money… hence, the bond bubble, the biggest bubble in financial history: an incredible $100 trillion monster that is now growing by trillions of dollars every few months.
We do not write that point for effect. Look at the vertical ramp in US debt. Over the last five years.

Indeed, the US issued a total of $1 trillion in new debt over an 8 week period in late 2014 alone.
The reasons it did this? Because it doesn’t have the money to pay off the debt that is coming due from the past… so it simply issues NEW debt to raise the money to pay back the OLD debt.
Sounds a lot like a Ponzi scheme… but the US is not alone in this regard. Globally, the sovereign debt bubble is over $100 trillion in size. Just about every major nation on the planet is sporting a Debt to GDP ratio of 100%+ and that is just including “on the balance sheet” debts… not unfunded liabilities like Medicare or Social Security.
This is why the Fed and every other Central Bank on earth is terrified of interest rates rising; because anything even resembling the normalization of interest rates would mean entire countries going bust.
Remember when interest rates move, they tend to move quickly. Consider Italy. It was considered one of the pillars of the EU since it adopted the Euro in 1999. Because of this, the markets were happy to allow Italy to borrow at stable rates with the yield on the ten year Italy government bond well below 5% for most of the last decade.
Then, in the span of a few weeks, everything came unhinged and the yields on Italy government bonds spiked, rising over 7%: the dreaded level at which a country is considered to be insolvent and set for default. It was only through extraordinary lending mechanisms from the European Central bank (the LTRO 1 and LTRO 2 programs to the tune of hundreds of billions of Euros… for an economy that is €2 trillion in size) that Italy was saved from potential systemic collapse.
Again, Italy went from being a former pillar of Europe to insolvent in a matter of weeks… all because interest rates spiked a mere 2% higher than usual.
Italy is not alone here. Western nations in general are in a similar state. This is why QE has been such a popular monetary tool for the Central Banks (since 2008 they’ve spent $11 trillion buying assets, usually sovereign bonds). QE was never meant to create jobs or generate economic growth… it was a desperate ploy by Central Banks to put a floor under the bond market so rates wouldn’t rise.
The below chart from Societe General illustrates this nicely.

It’s also why Central Banks have kept interest rates at zero or even negative: again, they cannot afford to have rates rise. In the US, every 1% increase in interest rates means between $150-$175 billion more in interest payments on our debt per year.
Forget stocks, forget your concerns about this or that valuation metric, the REAL issue is what happens when the Bond Bubble pops. When that happens it won’t be individual banks going bust, it will be ENTIRE NATIONS.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
You can pick up a FREE copy at:
http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Phoenix Capital Research
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Phoenix thinks that the bond Market will be the black Swan. I dont think so. At 0% interest the Central Banks can print forever and a day. What I think will be the black Swan is the derivatives Market that will bring it on or the privat debt to jobless People who cannot pay the Piper anymore and if enough fall down the Lenders will go Belly up and pull that House of Cards down with it.
Oh I get it now, bonds as in bondage.
And the Phoenix capital contrary indicator is still going strong - I'm guessing the market has another couple years to run...
Shirley, In times like these drinking a six pack is a very self preservation thing to do .....
So what if a 1% interest rate hike means an increase of $175B in interest payments ? Thats only 3 months of QE...sheesh... The Fed can figure that out.
Let's focus on saving the planet from old, angry white people.
Wow, Phoenix Capital are bearish, better take special note of this column...
Conspiracy Fact: Photos show Israeli soldiers with Syria’s Al Qaeda “rebels” in Golan Heights
New Anonymous op as White House still ignores murder of American reporter Serena Shim in Turkey
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"conspiracy" and "fact" "Jumbo Shrimp"
If this was the real world we would be well into the hyper-inflation curve but that money never made down to main street. The big players scooped it all up and hid it away. The piper must be paid though and it won't be the 'special' people who pay the blood price, or at least that's what they assume until Robespierre and his committee of public safety show up with their haircut machine.
Well duh, this was all about making the rich richer from the very get go. The TBTFs played their games and destroyed the market. The rich started to tighten spending and get a bit more conservative with their cash. If the banks went under.. well, the whole jig is up. So bail out the banks, but toss that money to the rich. Rich cannot actually spend all that cash and have it make its way onto the street. Even donations end up as endowments and do not hit the streets. Normal people though... gosh, they might try to pay off the debts that are killing them every month. And that's what the "economy" is now based on. Those debts, packaged and sliced and hedged and indexed and sold over and over again. Go ahead, try and pay off that mortgage, pay off that loan early, see how not easy it is. This is by design. If money hit the streets, the banks would get it anyways, but in the process, the banks would be losing hold of those assets, and poof goes the derivatives of those assets.
Sticking it all in the hands of the rich however... it gets locked up and will never see the light of day.
Best of luck to all.
Actually this is very very good news to all who are going to be or are now on Social Security.
Shirley, if they can 'print' a trillion FRNs in 8 weeks, to pay off a buncha black-hearted very well connected Jews when they fail abominably and should be living under boxes in the bowery but instead are able to continue to throw their $10 million dollar Bat Mitzvahs, then the Treasurer, another Jew, Jack Lew, can print several trillion and put it in lock box for the future retirees.
All this worry about will the government be able to honor its promises to the hard working minions who keep this country afloat for the benefit of the few, is for nothing.
if anyone was listening over the last 50 years, this would not even be an article to read unless it was in a science fiction book.
Hale to the companies who cheat on the taxes and pretend to be citizens of a sovereign nation and pray to keep it intact. Hale to those who run around the world to seek safe haven for their tax avoidance shekel's and then ask their home country to protect them in a perilous law suits ...like APPLE or Micron. Praise the tax dodgers because without them there would be no need for debt issuance and there would be jobs not machines doing man's work. You all remember that the next time you defend these mulitnational zionest ( as in no allegiance to any nation not a jewish reference) destroyers. How is that 401k doing..feel good? This is the bed that Americans have made for themselves....financing their own death via 401k and the like as if you had a chance to be rich in your old age. America has followed lock step to what Japan did to their people.
The latest generations in the USSA have been taught paying taxes is patriotic. Hail to all those slaves that work to avoid paying tax what was once understood as robbery!!
Don't count me as a Ziodefender. But yes, they are represented here on this forum in much higher percentages than in the general population. And I don't think Americans made this bed for themselves. Rather the Zio's and the ZioAssLickers at the political level made that bed and lined it with deceit. Other than that you're pretty much spot on.
I find it silly the author would say the Feds and other central bankers are scared of high interest as it would kill the nations. Man o man, thats their fucking goal. Do they think people can't recognize who their true enemies are? As sure as Hillaries an ugly bitch the bankers are out to fuck the people over. Isn't that synonomous with destroying the nation?
Yep
1945 British National Archives Document Calls For New World Order Now
Stop calling me Shirley...
Never gets old...