Rising Rates in Imploding Bond Markets

From Larry Edelson: (format slightly edited) Published by Money and Markets and Miles Franklin blogs.

 “If you give it more than 5 seconds of brain time, it’s too much. Of course, Yellen was going to raise the Fed funds rate today. Free market forces have already done it for her over the past four or so weeks.

She could no longer not raise rates any more than I could stop ISIS all by myself, dead in its tracks on a moment’s notice.

Or change today’s weather. Or any market for that matter. All of this stuff is preordained in advance by the powers-that-be, which are essentially: 

  • Raw human emotions on a mass scale repeated over and over again in fairly regular rhythms.
  • The world is simply a great Shakespearean play, repeated over and over again, and the only things that really ever change are the actors on the stages.
  • Yes, I’m talking social/political/economic cycles of the strongest kinds, all now coming together almost simultaneously for the first time since the Great Depression.

My team, myself and my Artificial Intelligence neural net, deep machine-learning models are on top of it and I have labeled it the “E-wave” …

The “E-wave” is those repetitive periods in history where some of the greatest forces known come together and give birth to revolutions, the rise and fall of civilizations, the death of currencies and the rise of new monetary systems, to rebellions, civil discontent and war, to terrorism and yes, even international world wars.

I’m not saying this to frighten you, though you should certainly be concerned enough to take the right measures to protect your family’s health and wealth as soon as possible … 

And avoid the sheer destruction that will be brought down on the world over the next few years by leaders either ignorant of what I speak or who are in outright denial.

Or are instead committed to beating the cycles of history but largely for their selves and federal government interests … all the while taking from you to protect themselves and their ethically, morally and financial bankrupt souls.

Excuse me for the pontificating. But the latest rendition of the E-wave is now striking like a tsunami, and the next four to five years are going to be like a roller-coaster ride through hell for the entire global economy.

For now, and some time to come, interest rates are going to rise, virtually non-stop. Bond prices in Europe, Japan and the U.S. will sink terribly, for months and even years-on-end.

Many will say inflation is coming, and indeed, we should see a very slight uptick in inflation but largely in this country only.

It won’t be the inflation you’re familiar with. It will be inflation caused by:


  • Plunging confidence in governments’ ability to pay their debts, bond markets getting hit the hardest as a result.
  • Plunging confidence in the ability of Europe and the euro to survive.
  • Plunging confidence in Japan’s ability to survive.
  • Plunging confidence in the social order of most of the world. Think stressful geo-politics here. A deepening cold and possibly hot war with Russia. More domestic and international terrorism.
  • Plunging confidence in leaders’ abilities to go with the flow instead of fighting the forces head-on, making it all that much more volatile and loss-precedenting in the markets …
  • Turning everything you thought you ever knew about markets and asset classes inside out and upside down.

For instance, in the months and years ahead, you are going to see:


  • Gold rise with soaring interest rates and a rising U.S. dollar.
  • Stock markets, mostly in the U.S. first pull back then catapult to Dow 22,000 … then 28,000 … then 32,000 and probably something north of 45,000 by the year 2020.
  • A new underground black market for all kinds of asset hoarding, including a new underground black market for gold.
  • Even though most of the world, including the U.S., will be in a great depression.

I’ll leave you with these additional “big picture” thoughts for today’s “official” Fed funds rate hike …


  • It was overdue.
  • It is not likely to cause anything more than a few minutes of jumpy trading in the markets.
  • And it will certainly NOT change the big picture, which is historically repetitive, cyclical – and has been around for thousands of years.

Oh, by the way, do you know one of the flashing yellow signs of great civilizations starting their final declines?


 I’m talking the Roman/Ottoman empires. The Spanish Empire. The rise and fall of Great Britain, the Venetian Empire, and more.

  • Historically it’s always been when the bankers and financiers made such inroads into government that they essentially took those governments over.
  • That’s been happening for years in the U.S.
  • But now, it’s reaching critical mass. President-elect Trump has put Goldman Sachs’ number two man – Gary Cohn – in charge of our country’s influential National Economic Council.
  • And I can tell you this from personal experience. Cohn is not a good guy. He’s not on your side.

Stay safe and keep your pulse on the tsunami-like E-Wave now starting to hit the world with a vengeance.”


Thanks to Larry Edelson

Gary Christenson

The Deviant Investor

4 thoughts on “Rising Rates in Imploding Bond Markets

  1. Dear Gary,

    Thanks for posting this. Nice article.
    I also bought your books (cartwheel and fort knox), to read and to support your work. I was slightly disappointed by the Fort Knox down, but no regrets about buying.

  2. Larry has been reading Martin Armstrong again…….and that’s a good thing……..Marty’s Pi cycle algorithm passes the test of history, thousands of years, actually.
    I must point out that Armstrong’s algo points to a new low in gold in 2017, having not closed above 1380 and having broken through 1205.
    Which is a good thing……the last best chance to back up the truck!
    I also point out that Marty and Larry both point to an absurd high in US equities on capital flows, in the next 2 years as the EU comes apart.

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