Saturday, January 5, 2013

Max Keiser predicts collapse within 6 months


I don't agree with this but here is his reasoning.

1) Bonds are in a huge 240-year bubble that could pop at any time.  Interest rates are the inverse of bond prices.  But interest rates are the effect, not the cause of the bond prices.  So at anytime, the bond bubble could pop and interest rates skyrocket.  The Fed thinks it controls this process, but it doesn't.  Once the process starts, it will be almost impossible to stop.

2) An event is coming that could start the collapse.  That is Japan's determination to cause inflation.  And this will happen by April 2013.

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