We have an inverted yield curve today - When the near end yields or interest rates is higher than the far end, we have an inverted yield.
What is its implication and any attributes?
To understand the implications of an inverted yield curve, it is crucial to know what a yield curve is and how it works.
A healthy yield curve –
It shows the relationship between...
When the yield of the 3-month bond is higher than the 30-year bond yield, this is known as an inverted yield curve. It is a rare and unusual occurrence and we are seeing this today. This signals a potential economic recession in the future.
An inverted yield curve suggests that investors have a pessimistic outlook for the future of the economy. They are willing...
Gold started its rally since 2000.
Whereas inflation and interest rates remain low since 2000.
Reason for the "Borrowed Time"?
Because easy money policy was needed to create:
1) An increase in money supply
2) By lowering its interest rates
Purpose for easy money policy?
3 major events after 2000:
1) Middle East War
2) Subprime crisis
3) Covid-19 rescue...
