Yield Curve Inversions Recessions
August 28th, 2019Via: Economic Collapse Blog:
You can believe that we will somehow beat the odds this time if you want, but history is completely against you. One of the biggest reasons why there is so much anxiety on Wall Street right now is because of how the yield curve is behaving. We have seen yield curve inversions before each of the last seven U.S. recessions, and now it has happened again.
And we can be quite certain that this yield-curve inversion is a direct consequence of the big central banks power-showering the world financial system with printed money that is more often than not loaned out at negative interest rates. But I can’t bring myself to really blame the central-banking fat-cats too much. After all, the only other alternative would have been to allow the global economy to slip into deflationary compression back in early 2016! Of course now when economic reality is finally able to assert itself, it will be rather more severe.