An Inverted Yield Curve Isn’t a Tragedy… It’s an Outrage

 

Van Bryan

Aug. 18, 2029

 

It inverted… We’re talking about the yield curve, that unnervingly prescient recession indicator. The last time this happened was 2007, right before the worst financial crisis of the 21st century. Wall Street took the news poorly. Stocks sold off. The S&P 500 dropped 3% on Wednesday. But the inverted yield curve is more than just a tragedy for speculators. As Bill put it, it’s an outrage. This week, our editor knew precisely who to blame for this insult…


image Have We Already Seen “Peak America”?
To start the week, stocks remain near all-time highs. High stock prices represent an optimism for the future. But Bill’s not convinced. Everywhere in America there is phony money, artificial rates, and a bloated central government. America may have reached its zenith decades ago, and the long, miserable decline lies ahead…

image The 21st Century Is a Big, Fat Bust
The century started with such hope. America was on top of the world. The Cold War was over. Business was booming. It seemed to be “the end of history.” But after nearly two decades, Bill looks around at all the breathtaking claptrap from the Fed… Wall Street… and the Swamp. Our editor wonders, maybe the future isn’t all it’s cracked up to be.

image How America Lost to a Nutjob Economy
What promises have been made to you recently, Dear Reader? That rates would be normal? The Swamp would be drained? The Chinese would pay for the tariffs? We hate to be the one to break the news, but don’t hold your breath…

image A 21st-Century Nervous Breakdown
Uh-oh. The S&P drops 3%, the worst one-day fall of 2019. America’s esteemed leaders are quick to howl. Lower rates. More stimulus. Inflate or Die! Bill shakes his head. America’s financial system doesn’t need more inflation. It needs some integrity.

image How America Gets Poorer and Weaker
Stocks are still reeling from 2019’s largest one-day fall on Wednesday. But on Friday, Bill turns his gaze away from the Wall Street claptrap and takes the long view. What is America’s place in the world of 2019? After Y2K, the country didn’t collapse. But it has rolled over.

image Why Trump Says America Must Win the 5G Race
The U.S. and China are locked in a winner-take-all struggle. No, Dear Reader, we’re not talking about the trade war. The world’s two top superpowers are duking it out to claim 5G supremacy. The stakes? Economic dominance for years to come.

Regards,

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Van Bryan
Managing Editor, Bill Bonner’s Diary