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Plunge in Treasury Yields Is Forecasting More Than Just Deflation

OWoN: Simple and to the point. What more needs to be said. No one wants to buy US Debt.

Wall Street On Parade

Plunging yields on U.S. Treasury notes and bonds, record low yields on the sovereign debt of countries in the European Union, together with plunging industrial commodity prices, are sending a crystal clear message to Stock Markets: There is a glut of supply and too little demand from consumers.

Federal Reserve Board Chairwoman Janet Yellen testifies before the Senate Banking, Housing and Urban Affairs Committee today - Image: Win McNamee / Getty Images


Plunge in Treasury Yields Is Forecasting More Than Just Deflation


Wall Street On Parade
By Pam Martens
and Russ Martens
15 January 2015

Plunging yields on U.S. Treasury notes and bonds, record low yields on the sovereign debt of countries in the European Union, together with plunging industrial commodity prices, are sending a crystal clear message to stock markets: there is a glut of supply and too little demand from consumers.

Such a supply-demand imbalance brings about price wars. Thus we have Saudia Arabia slashing prices on oil to its customers in an attempt to grab market share, triggering a global price war in oil; supermarket pricing wars in Britain; gas station pricing wars in the U.S.; mutual fund fee pricing wars; magazine price wars. There is even a chicken nuggets pricing war.

Collapsing yields, collapsing commodity prices are the result of distorted income dispersal, otherwise known as income inequality.

Last August, researchers at the Federal Reserve released a study showing the fragility of the U.S. consumer. The Fed’s Division of Consumer and Community Affairs found that 52 percent of Americans would not be able to raise $400 in an emergency from their checking account, savings or borrowing on a credit card that they would be able to pay off when the next statement arrived.

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8 comments :

  1. I had no idea that Grampa Munster was running the FED

    ReplyDelete
    Replies
    1. OMG! You remind me of my husband...he forget names and he will give a name that he believe that person looks like...I think this is so funny...

      They need to stop purchasing their own toxic paper to keep the system propped up creating more debt on the back of the UsA citizenry...Stop the press!

      We need to request that our concerns be placed on the voting ballots!

      Delete
    2. Thank You fedup I take that as a compliment considering your contributions to this site. But seriously take a close look at Yellen, Grampa Musnter that went to Donald Trumps barber

      Delete
  2. Its in the Genes the Zios all look like that. Genghis Khan raped humanity out of them.

    ReplyDelete
    Replies
    1. I am sitting here doing some work and cracking up...sometimes you have to laugh to keep from crying...OMG!!!!

      Delete
    2. FedUp
      I share your pain! With all the serious issues facing humanity, today Okra Winfree's panties in a wad over lack of Academy Award recognition so she's going to march on Selma, Alabama....or something. Race baiters seem to forget some years almost all nominees were minority.

      How can so many people be distracted with such nonsense? Fluoride, Chemtrails, Vaccines, Drugs, GMOs, tainted everything....

      Delete
  3. http://kingworldnews.com/richard-russell-major-surprise-stocks-china-back-yuan-gold/

    ReplyDelete
  4. Nothing against James Taylor, but whose lame brain idea to haul him to Paris to sing "You've Gotta Friend" while Lurch and some woman stand there watching? Is State Department now being run by Sesame Street producers?

    ReplyDelete

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