RE:RE: Fed likely to cut rates below 3%, making bonds attractive .Guggenheim. I just saw the headline and didn't read their rationale for the call. My opinion says this will happen when one of two things happens....the stock market crashes, unemployment data shows actual job losses.
There is no way the world can continue with over 300 TRILLION in debt and rates around 5%. Debt service in the US is soon to exceed the entire defense budget. We're at the point now where to service all this debt requires even more debt....we're paying the minimum on one credit card with another credit card. This cannot continue. The math no longer works.
We had a generation of easy money which has led to exponential debt and mal investment. There's going to be an accident, something will snap big enough to force the FED to fold. Commercial real estate? More regional bank failures? I can't pin it down or time it but the arithmetic is pretty simple.
The FED fold is going to be something to behold. Could re-ignite inflation at the same time the economy is tanking...stagflation. Gold will be the go to asset. It won't be long now