Opening Statement from the August 2016 CCPM Forecaster

Opening Statement from the August 2016 CCPM Forecaster

Originally published on August 1, 2016 (premarket)

The notion of lower interest rates across the globe has caused investors to rush into US government bonds, pushing yields to new historic lows. These results are consistent with our previous warnings of global deflation dating back to late-2010. The silver lining for investors in the US capital markets is that the US economy remains the strongest of all advanced nations. With rare exception, this has been a persistent trend for several years.

Moreover, the US capital markets remain the safest by a long shot, offering the best risk-adjusted returns in the world. We have been emphasizing these points for several years.

In addition to US dollar-denominated assets, Japanese Government Bonds (JGBs) are also widely regarded by institutional investors as safe haven assets. At first glance, most investors are likely to question why the government bonds of a nation that has suffered deflation for the large part of the past three decades, as well as a nation that has massive government debt would serve as a safe haven for investors.

A few years ago you might recall that many so-called “brilliant” investors had placed speculative bets that Japan would suffer a catastrophic sovereign debt crisis. The premise of this nonsense was based on fraudulent pro-austerity “research” from two economic “powerhouses” in the academic world, Harvard’s Carmen Reinhart and the University of Chicago’s Kenneth Rogoff. As usual, all of these “geniuses” proclaimed by the media turned out to be very wrong.

And while the fund managers who bought into the pro-austerity nonsense spewed by Reinhart and Rogoff suffered huge losses (as I had predicted), these ever so “brilliant” academicians continue to be propped up on a pedestal as “geniuses” as is always the case with members of the Jewish Mafia.

So what’s the secret? Why do investors flock to JGBs during heightened global risk? What our good “friends” in the media will never report is that...