Jaime Carrasco: We Are Feeling Tremors of the Impending Earthquake in the Bond Market
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Jaime feels that recent market activity is a good signal of what is coming. He says, “There aren’t many safe havens left, and one of the few is precious metals.”
He mentions the Comex chairman commented that gold should be above $5000. The paper market has been suppressing the price of gold through derivatives. People need to understand they are living in a complete facade and when this game is over, there will be a re-balancing.
Some country is going to peg their currency to something that can be trusted. Central banks are buying gold and people are waking up as bullion premiums are starting to rise.
Jaime feels that the ten-year will continue to rise and that major tremors are coming. The bond market is the real market because it’s so much larger. Interest rates rising are increasing the cost of debt and put further downward pressure on the Dow.
The next few weeks will be crucial as he thinks the Republicans may take the house. Jaime feels that Fed policy is in line with Trump’s objectives which is to unwind this debt event. He says, “I see Trump as the king of bankruptcy.” Trump will then have full control and what happens when Trump doesn’t play ball.
As interest rates rise they will lose control of the currency trends, and it will devalue. Mr. Carrasco thinks investors should be prepared for even worse markets than in 2008. The longer it takes for gold to rebound the higher it will go.