Ben Bernanke: The US Economy Is Going To Go Off The Cliff In 2020

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It looks like Ben Bernanke is a Bridgewater client.

Recall that earlier this week we reported that in the May 31 “Daily Observations” letter to select clients, authored by Bridgewater co-CIO Greg Jensen, the world’s biggest hedge had an ominous, if not dire appraisal of the current economic and financial situation facing the US, and concluded that “We Are Bearish On Almost All Financial AssetsContinue reading

China Reveals Largest Defense Budget In Three Years

 

China’s government has been relatively vocal in transforming itself into a serious threat against the West — by modernizing its military in anticipation of future wars with Washington. It it therefore not surprising when the official Xinhua news agency reports that China will increase its defense budget by 8.1 percent in 2018, up marginally from last year’s 7 percent.

China has undoubtedly given America’s military-industrial complex and clueless politicians in Washington a stern message, by increasing its defense budget to the highest levels in more than three years, even as the country insists it does not mean harm. Continue reading

Goldman’s Shocking Capitulation: The Buy-The-Dip Era Is Dead, “This Is A Genuine Regime Change”

Earlier today, we were delighted to report that after the biggest vol explosion in history, the world’s largest hedge fund Bridgewater, went from urging traders to go all in as recently as January 23, to warning that a “bigger shakeout is coming.”

It turns out that Ray Dalio wasn’t the only fund to urge its broader client universe – and anyone else who cared to listen – to do one thing, while telling a select group of clients to do the opposite. As we noted on Saturday, in his latest Weekly Kickstat published on Friday, Goldman’s chief equity strategist David Kostin essentially told clients to BTFD, suggesting that the correction was likely almost over, based on historical patterns. Continue reading

Experts Are Warning That The 76 Trillion Dollar Global Bond Bubble Is About To Explode

Warren Buffett believes “that bonds are very overvalued“, and a recent survey of fund managers found that 80 percent of them are convinced that bonds have become “badly overvalued“.  The most famous bond expert on the planet, Bill Gross, recently confessed that he has a sense that the 35 year bull market in bonds is “ending” and he admitted that he is feeling “great unrest”.  Nobel Prize–winning economist Robert Shiller has added a new chapter to his bestselling book in which he argues that bond prices are “irrationally high”.  The global bond bubble has ballooned to more than 76 trillion dollars, and interest rates have never been lower in modern history.  In fact, 25 percent of all government bonds in Europe actually have a negative rate of return at this point.  There is literally nowhere for the bond market to go except for the other direction, and when this bull market turns into a bear it will create chaos and financial devastation all over the planet. Continue reading

Hedge Funder Dalio Thinks the Fed Can Repeat 1937 All Over Again

(Bloomberg) — Ray Dalio, founder of the world’s largest hedge fund firm, Bridgewater Associates, told investors there’s a risk that the Federal Reserve could create a market rout similar to that of 1937 if it raises interest rates too fast. Continue reading