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Re: gldtimer post# 2821

Thursday, 02/18/2016 5:47:29 PM

Thursday, February 18, 2016 5:47:29 PM

Post# of 4668
Maybe I was taught incorrectly a long time ago but to me this was the general paradigm of things;


It’s impossible for Western bond prices to be at all-time highs. Western nations have never been less-solvent (i.e. obviously bankrupt). The less-solvent the debtor, the higher the rate of interest the debtor is (supposed to be) forced to pay, and bond prices and interest rates are precisely inverse to each other. Interest rates should be at all-time highs, bond prices should be at all-time lows. Something stinks here. So looking at this chart, I would assume that based on the divergence in normal conditions this would presume that lower yields signal " health" but we know that this is not the case.

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