19 Comments
Feb 1, 2022·edited Feb 1, 2022

He’s talking about the 10-yr Treasury bill (bond indicator) which is one of the main indicators people use to gauge the market. The FED’s refusal to increase interest rates signaled they do not see an inflationary increase and feel no compunction to act in order to head off even bigger rises in inflation.

In short, the FED is really putting it to the middle class and the investors in the market. I know it gets confusing. The bond market (which includes 10, 15 & 30 year T Bills ) are a huge part of that bigger debt market that Greg talks about. That’s the big driver for the derivative stock market. I hope that helped a bit.

There’s a double edge to bond increases. CD’s and traditional savings pay more but home buyers get hit with higher interest rates. It depends on where you have your money when these rate changes occur.

Diversify and follow Greg’s advise on stocks and tangible assets and you will weather the ups and downs.

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So if the 10yr yield exceeds the 20 and/or 30 by a material amount, that's when the stuff hits the fan?

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The market functions are related to the 10 yr note as it matures much faster. An inverted curve is an abnormal phenomenon in which the yields on short-term bonds become higher than those on long-term ones. When investors demand more return in the short term than in the long run, they think the economy is headed for a recession.

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Hello Greg✌

I value your focus, determination and passion to assist us/me to look at what matters. Who are the drivers of this machine... and to not get distracted by their mis-information brainwashing methods!!

So.... You know what is happening here in Canada. The convoy counting more than 150.000 vehicles and 2.4 MILLION people united in protest.

It would mean the world 🌎 to me if you could give a shout out to all of us who are united fighting for ALL OF US ❣

The MSM and it's united bullshit slinging dogshit wrapped in catshit machine is failing!!

Thank you for your voice!!

Respect, Love, Laughter, Freedom and abundance!

🙏✌🌞

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God love the truckers. You get what we need to market. Good luck in Canada. Good people!

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Focusing on the debt (driver) market and not the stock (derivative) market. If the bond market begins to crater, that’s my red flag 🚩 to abandon ship. The yield on the 10-30 year notes are strong (could always be stronger) so steady she goes. #EndTheFed is the most sound advise of all.

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Does Greg ever interact on this blog?

Been asking the same question about debt bubble/implosion clarification and how to monitor. Anyone?

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author

There is not much to know other than it will implode at one point. We will see a rapid uncontrolled rise in the 10yr yield which will pressure stocks in a BIG way.

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Thank you for taking the time to answer my question.

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Hope it was helpful Lorraine. Everyday is a learning experience. Just when you think you know it all.; It’s time to check your map and compass readings. Iceberg ahead!

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You got it Bambino! The bond market is the warning signal.

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Send him a personal e mail

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He responded but I'm still not sure what he means. He stated to keep an eye on the increase in 10 yr. More confused than before. I thought it was critical to keep both eyes in the MMRI, yet he stated there is no way to monitor for an impending debt implosion.

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Lorraine. No one can predict a crash. They normally catch everyone by surprise but keeping your eye on the 10 year yield is as good an indicator as you can find. Raising rates minimally is what they call getting ahead of the inflation curve. Failure to act (as we saw last week) is getting behind the curve instead of staying ahead of it and warding off any future trends in inflation. Inflation kills the economy and market.

The only people who like inflation are FED bankers. They live off the rest of us.

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Thank you

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The indicator that tells all is the bond market. A rapid contraction or expansion will have predictable effects on the derivatives or stocks. Since the FED has done nothing in either direction bond traders are pretty much locked in to the present policy. Look for the current trend upward to continue.

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Excellent. Thank you so much🙏

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You’re welcome.

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Thank you GM 😎.

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