Last Post on Interest Rates: https://bartscharts.com/2023/07/06/interest-rates-july-06-2023/
I’m going to post some charts – again – just so people realize the extent of the interest insanity that we are dealing with …
At the end of ZIRP (Zero Interest Rate Policy) we were – nominally – at a 5000 year low in interest rates:
I follow Mr. Armstrong – he’s my only follow. Here’s the link to the data: https://www.armstrongeconomics.com/markets-by-sector/interest-rates/source-for-the-history-of-interest-rates/
Now, with that in mind, we have now gone up the same amount in interest rates in 4 years compared to what it took, the last time, 20 years to do … let that sink in!
The below is interest rates since 1913 – LOG SCALE. Take note of the orange line … over 112 years interest rates have NEVER gone up this much and this time THEY DID IT IN A MERE 4 years – not 20+ like the last time.
Sure seems like they want to go to – at a minimum – the .382 below. Imagine what that will do to our multi trillion dollar debt payments and, just as importantly, emerging markets, Asia and Europe. Remember, the reserve currency is STILL the USD.
So, take a look at the chart above … if we have begun (who knows) a ‘new’ bull market in interest rates, certainly seems plausible that we will have 20%+ interest rates OR a global sovereign debt collapse and burn the entire thing down …
I’m still long TBT.
Bart
