I rarely bother to make any note at all of the "calls" made by the Big Banks, on precious metals markets, or any others. However, sometimes the nonsense which emanates from these fraud-factories is so extreme and absurd that it requires some sort of acknowledgment (i.e. condemnation). This is one of those cases.
Let's begin with a brief review of bond-market fundamentals. By now, most people here should know the basic equation of all bond markets: bond prices and bond interest rates are the direct inverse of each other. In other words, when interest rates rise, bond prices fall. When bond prices rise, it means the "yield" (i.e. interest rate) has fallen.
Currently, all Western interest rates are at near-zero or lower. In any rational world, this is the ABSOLUTE, THEORETICAL MAXIMUM for bond prices, since (in a rational universe) it's impossible for interest rates to go to zero (let alone "negative" rates). Of course we don't have a rational world, but even in our insane/criminalized world, what Morgan Stanley is counseling today is ridiculous gibberish: buy bonds.
There are only two, possible ways in which this "buy" call could be interpreted:
1) Morgan Stanley is expecting interest rates to go STRONGLY NEGATIVE, in which case the (fraudulent) bond prices would rise, or;
2) Morgan Stanley is expecting bond prices to FALL (or stay stable), but expects everything else to fall much farther/faster.
Let's look at these two possibilities. In fact, we can quickly reject #1, as soon as we read the first line of this gibberish propaganda:
Morgan Stanley, one of the Wall Street banks that deals with the Federal Reserve, cut its Treasury yield forecasts for 2016 and said the central bank will wait until December before raising interest rates. Benchmark 10-year yields fell from a six-week high.
So Morgan Stanley is "predicting" U.S. interest rates will rise -- modestly and belatedly -- meaning that (at very best) bond prices could remain close to stable, but could not rise. Thus we are immediately left with only #2. But even here, these snake-oil salesmen are speaking with their usual forked-tongues.
Morgan Stanley is NOT (openly) saying "buy bonds, because everything else is going to crash", it's calling FLAT bond prices a "bull market". Understand the full implications here. With any of our paper wealth, we lose 10% (or more) on that paper each year due to (real) inflation, depending on precisely where you live. Thus it requires at least a 10% annual return on our investment just to BREAK EVEN.
The Great Inflation Lie
Yet here we have one of the world's (supposedly) most-prestigious investment banks counseling investors that if they get a 0% return (at best) by buying bonds, that this is "a bull market" even thought they're losing 10% per year on inflation. In other words, a -10% return is "a bull market", according to Morgan Stanley.
Of course, Morgan Stanley dwells nowhere near the real world. It lives inside the Wonderland Matrix. In the Wonderland Matrix, there is no "inflation". And in "the New Normal", breaking even is "a bull market". Insanity, piled atop insanity, piled atop moreinsanity.
Want some GOOD investment advice which isn't even connected to precious metals, in any way? INVEST IN FOOD. With "food inflation" (i.e. real inflation) running at 20% or more per year, you automatically make a risk-free 20% per year (or more) return on your investment by stocking up on any/all non-perishable goods. U.S "inflation" has been briefly muted via the of the upward manipulation of the USD, but that is a temporary phenomenon, in a world of "competitive devaluation".
The Truth About Competitive Devaluation
Flour, rice, pasta, bottled water (for those who buy it), canned goods, and SPICES, for starters. A millennium or so ago, spices were quasi-currency: rare and precious commodities, to which the Average Person didn't have access. In a hyperinflation environment, where people can barely afford bread and water (at hyperinflation prices), spices could once again take on quasi-currency status.
Hyperinflation Cannot Be Prevented By Debt/Deflation
If people are not already investing in food, then you're NOT (fully) preparing for hyperinflation. There could very easily be a time interval -- even a relatively lengthy one -- between the time our currencies officially go to zero/near-zero and the time when our gold and silver acquires a rational valuation, either officially or on the blackmarket.
What are you going to do if food (priced in paper) is near-infinity, but your gold and silver is still only priced at a tiny fraction of its real value? It will have done us no good to build up a cache of precious metals savings, if we're quickly forced to burn through our bullion simply buying food.
If you're only stocking up on food, but still keeping (most of) your wealth in paper, you're not being fully rational, because you're NOTprepared for hyperinflation. If you're stocking up on bullion, but not also stocking up on food, you're not being fully rational, because you're NOT prepared for hyperinflation.
Over the medium to long term; gold and silver are the ultimate antidotes for the economic disease of hyperinflation (which is now inevitable). Over the short term; a large stockpile of FOOD is the only guaranteed medicine against this Banker Disease.
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. -- Alan Greenspan (1966)
Morgan Stanley Says Bonds Set to Surge in 2016 Year of the Bull
Central banks in Europe and Japan will keep easing monetary policy, while the Fed and the Bank of England will delay raising rates, says the firm.
Morgan Stanley, one of the Wall Street banks that deals with the Federal Reserve, cut its Treasury yield forecasts for 2016 and said the central bank will wait until December before raising interest rates. Benchmark 10-year yields fell from a six-week high.
“The global backdrop for rates markets looks so supportive that 2016 may become known as the ‘Year of the Bull,’” according to a report the company issued Sunday by analysts including Matthew Hornbach, head of global interest-rate strategy in New York.
Most major economies will do worse in 2016 than 2015, the report said. Central banks in Europe and Japan will keep easing monetary policy, while the Fed and the Bank of England will delay raising rates, according to the firm. Treasury 10-year yields will fall to 1.45 percent by the end of September, the analysts wrote, approaching the record low of 1.38 percent set in 2012. The Fed and the Bank of Japan will refrain from taking any action in meetings this week, based on Bloomberg surveys of economists.
A 2016 rally in Treasuries, the world’s biggest bond market, ran contrary to the selloff projected by Bloomberg’s surveys of economists as plunging stock and oil prices sent investors to the safety of government debt. Borrowing costs fell in almost every industrialized nation, with average yields on $23 trillion of bonds falling to 0.69 percent in February, the lowest on record based on Bloomberg indexes that go back to 2010...
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