By Andrew Hoffman
Gold Seek / Miles Franklin Blog
What a tragic mess the global economy has become with no hope of any outcome other than systemic currency collapse. Each day, our “contrarian” view that sovereign Treasury yields will plunge toward a Japan-like zero is validated further, per what we wrote in May’s “Most Damning Proof Yet of QE Failure.” In other words, irrespective of inexorably rising inflation, particularly in “emerging markets” most vulnerable to Western printing presses, global “big money” will bid Western sovereign bonds to record levels, anticipating the inevitable “QE to Infinity” that accompanies the terminal stage of all fiat Ponzi Schemes. That is, until hyperinflation destroys the real value of essentially all financial assets.
To wit, this morning’s surge in German bonds to record highs; just after an abysmal industrial production report, and before the ECB left its “NIRP” policy unchanged, but kept the “QE door” wide open – when Draghi highlighted “downside risks” to his economic outlook; including, of course, the ambiguous scapegoats of “emerging market woes” and “geopolitical risks.” You mean like the EU threatening Russia, where nearly a third of its natural gas emanates with sanctions?