fbpx

The Next Recession Will Be The Last!

Gold • Silver • Personal Survival Skills • Safe Haven Assets
Deep State Updates, Politics, & U.S. Dollar Exclusive Data

The BEST RECESSION Indicator Is Flashing A “Red Alert” AGAIN!

Mac Slavo
April 15th, 2019
SHTFplan.com
Comments (4) Read by 2,343 people

THC-free CBD Formula - Zero High Brand

If you have not yet begun to prepare yourself for an economic recession, now is the time – even if the recession is still two years away.  One of history’s best recession indicators is predicting another rough patch for the economy, flashing “red alerts” to all who will take heed.

Ominously, the United States’ yield curve has now inverted once again, with the 10-year Treasury yield on March 22 dipping below the three-month T-bill yield for the first time since 2007. According to OZY.com, this is an indicator that should not be ignored, as historically, it’s been incredibly accurate. And it has not been very long since we last experienced the prophetic “inverted yield curve.

“The curve has been flattening and sending a warning signal for some time,” says Douglas Peebles, head of fixed income at AllianceBernstein. “I’m a yield curve junkie and I don’t think you can ignore that.”

The Federal Reserve’s Controlled Demolition Of The Economy Is Almost Complete

The yield curve is Wall Street’s original “fear gauge,” notching up a perfect predictive record before pretenders such as the Vix index were even glimmers in the eyes of financial engineers.

Typically, countries pay less to borrow for three months than five years, and less for five years than for a decade — after all, investors want some compensation for the gradual erosion of inflation, or the risk, albeit faint, that a government could renege on its debt. Plotted on a graph, the bond yields of various maturities form a “yield curve” that most of the time slopes gently upwards.

But sometimes short-term yields rise above longer-term ones, an “inversion” of the usual shape of the curve that has been an uncannily accurate harbinger of recessions, preceding every downturn since the end of the second world war. –OZY

Coupled with a slew of deteriorating economic data, the inverted yield curve has stirred fears that the countdown to the next downturn has already begun. However, others are still not convinced. “I’m not worried,” says Mohamed El-Erian, chief economic adviser at Allianz. “The yield curve’s signal is not what it used to be.” Others agree, saying the yield curve is nothing more than a signal that we should be skeptical about the strength of the economy.  It shouldn’t necessarily be taken as a 100% indication that the economy will fall into a recession.

“You are an idiot to ignore the yield curve but it is not proof that a recession is coming by itself,” says Seth Carpenter, chief U.S. economist at UBS and a former senior Treasury and Federal Reserve official. Peebles stressed that any inversion should not trigger panic.  It should, however, trigger a desire to at least minimally attempt to prepare for the inevitable – even if that’s years away. “I’m not ignoring the yield curve, but for the time being I don’t think we have to be overly concerned,” says Peebles, a self-described “yield curve junkie.”

This economy is volatile a best as the central bankers and media’s talking heads continue to send mixed signals.  The best we can do is prepare for the worst.

Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.
CBD Oils, Isolates, Supplements And Information
Please Spread The Word And Share This Post

Author: Mac Slavo
Views: Read by 2,343 people
Date: April 15th, 2019
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

4 Comments...

Vote: Click here to vote for SHTF Plan as a Top Prepper Web Site
  1. Yohan Smythe says:

    <b<“The yield curve’s signal is not what it used to be.”

    I think they said the same thing last time!

  2. Bob1 says:

    “The yield curve’s signal is not what it used to be.”

    Exactly! In a world of unlimited QE, negative interest rates, plunge protection team activities, manipulated precious metals prices, FED equities buying, etc. the inverted curve can be “countered” until the masses lose faith in the paper that they are using to buy things of real value. Someday the yield curve will matter again and that day will be tremendously bad.

  3. Seminole Wind says:

    Grew up with two hardcore Democrats as parents. Both were Great Depression era kids and blamed “Herbert Hoover ” for their miscible childhoods.

    I could see the Socialists engineering another economic downturn and blaming it on Free Market Capitalism/ Trump.

    Only The Lord knows the future, but them Commies are demons fur sure.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Commenting Policy:

Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn't immediately available. We're not trying to censor you, the system just wants to make sure you're not a robot posting random spam.

This web site thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.