Rising Interest Rates Will Cause Serious Problems

Never in the history of the world have interest rates been this low. They think this is the solution. But I want you to know that eventually and soon interest rates are going to go higher again and when interest rates go higher again we are going to have serious, serious problems all over the world.

The Next Bear Market In Stocks

No, I will just say it will be the worst in my lifetime. It has been over 10 years since we had a serious bear market in the United States. I would suspect by the end of this year or next year, it will start. These things always start small, where people are not looking and then they work to the major markets, and then you see them on the major news. 

 In 2007, Iceland went bankrupt but nobody noticed or cared. Then Ireland went bankrupt. Then a few weeks later, Bear Sterns went bankrupt and a few weeks later Northern Rock, the English Bank, went bankrupt. Then eventually Lehman brothers went bankrupt and by then, everybody knew there was a problem. But it had been there for over a year and it has always worked that way. It starts when we are not watching. It has already started. Latvia collapsed. Argentina, Venezuela, Turkey, some banks in India are having problems, Indonesia has started having problems. It has not made to evening news yet. 

All these markets are small but until they make it to the big markets, people do not notice.

“ The more certain something is, the less likely it is to be profitable”.

Trade War: Will China Sell U.S. Treasuries?

"The idea that China would dump its $1.1 trillion of Treasuries to retaliate against U.S. tariffs is often dismissed as improbable. It’s seen as a nuclear option that would inflict more harm on China’s economy than America’s. 

Yet the tensions rippling through global financial markets could still lead Beijing to reduce its stockpile in the $15.9 trillion Treasuries market -- not to retaliate, but to defend its currency if it goes into a free-fall. The offshore yuan has slumped 2.6% this month to about 6.92 per dollar as the trade standoff intensified, reaching the weakest since December." - in Bloomberg

Read the complete article here: Trade War May Yet Spur China to Sell Treasuries as Yuan Tumbles

Stocks: The Next Bear Market

In 2007, Iceland went bankrupt, but nobody noticed or cared. Then Ireland went bankrupt. A few weeks later Bear Sterns went bankrupt and a few weeks later Northern Rock – the English Bank – went bankrupt and then eventually Lehman Brothers went bankrupt. By then everybody knew there was a problem. 

It starts when we are not watching. It has already started. Latvia collapse. Argentina, Venezuela, Turkey, some banks in India are having problems, we have issues in Indonesia; so it has already started showing. It has not made to evening news yet.