Rising Rates: Financial Extinction Level Event Coming – Michael Krieger with Greg Hunter

Michael Krieger – Next 4 Years Will Be Worst in US History

by Greg Hunter
USA Watchdog

Former Wall Street analyst Michael Krieger says the key to predicting this market is to watch interest rates. Krieger explains, “Do I think that there is going to be a huge U.S. currency devaluation next month? No I don’t, but on the flip side, there is going to be some sort of financial calamity. What I am looking at personally is interest rates. I’m 38 years old. My entire life, basically, we’ve been in a downtrend on sovereign yields. So, it’s basically been this 40 year bond bull market. It’s a secular bull market my entire life. When that reverses and interest rates start to rise, and it’s probably not going to be because the Fed is raising rates, when rates naturally stop going down, and they start going up, that’s going to be a financial extinction level event. That’s going to be the most important event in all of our lives because it’s going to be the end of a 40 year bond bull. If you think about all the things going on, all of the rigging, the student loan bubbles, the auto loans, the housing loans and everything, everything is sustained by these extremely low interest rates. If we are at the beginning of a secular bear market in bonds and interest rates are going to be going up with higher highs over the next ten years, what do you think that’s going to do to everything? Everything that’s been rigged, everything that’s been inflated, none of that is going to be sustainable anymore. I don’t know when that day will come. I expect it will come in the next four years. What I do know is it’s going to be extremely ugly when it arrives. That’s why I think the next thing after that will be global conflict because all of these countries that have been sustaining themselves with these fake economies, all these chickens will come home to roost. So, I look at the bonds. For this to be a disaster, it will have to be an uncontrollable disaster, and it will be sparked by rising interest rates in the bond market.”

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