GOLD VS. ‘REAL RATES’
$1,550
$1,500
$1,450
$1,400
Gold
$1,350
$1,300
Real Yields About to Go Negative
1.0%
10-Year TIPS Yield
0.5%
0.0%
-0.5%
Feb Mar
Apr May
Jun Jul
Aug
now yields less than 1.6%. That’s perilously close to the all-time low of 1.35% it reached in mid-2016. As a result of the decline in nominal yields, 10-year “real” yields hit the critical zero threshold on Wednesday, August 14. The above updated chart of the GFSB shows what has happened with “real” Treasury yields. The inversion is imminent . This is wildly bullish for gold.
when it breaks through key thresholds, a hurricane is coming. When you see “real” yields on the 10-year U.S. Treasury bond paying little and heading for zero, you’ll find investors fleeing riskier assets – like growth stocks – and buying things to protect themselves against credit default. In the last few months, U.S. Treasury bonds have skyrocketed, causing their nominal yields to plummet. The 10-year Treasury note
Editor’s note: .J]SYXLMROXLEXXLITVSFPIQWI\TSWIHF]XLI ǻRERGMEP crisis have gone away, you’re mistaken. U.S. mortgage debt just hit a record, eclipsing its 2008 peak... The government is spending more than ever before, at $3.7 trillion so far this year... And more than $16 trillion in debt around the world trades at a negative yield. What could possibly go wrong in 2020? The answer is everything. To learn more about these issues, please read The Battle for America: Why the 2020 Election Will Cause the Biggest Financial Crisis in U.S. History . Click here to learn more.
American Consequences
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