“So Deutsche Bank is bankrupt and US investment and commercial banks are at big risk from rising yields, but all the stock prices are still going up because people will trust owning Goldman or Barclays stocks over owning government bonds???”
ANSWER: I seriously doubt that bank stocks will do well. During the Sovereign Debt Crisis of 1931, over 3,000 US banks failed. Roosevelt declared a Bank Holiday. Cash was king. Commodities, including silver, collapsed into its 13 year low in 1932.
It was the devaluation of the dollar that forced inflation just as Japan finally tried but still fails to grasp the real issues suppressing Japan. Roosevelt confiscated gold to make sure he funded his programs with the devaluation of the dollar and to end hoarding. When people do not have confidence, they simply hoard cash and do not invest.
This is why there was such a shortage of money that cities were forced to start printing their own. People accepted this scrip because there was NO OTHER CHOICE! Over 400 cities issued their own money and that too was omitted from the history books.
You can go on Ebay and buy bonds that were defaulted upon as you can with Depression scrip. Government hid the 1931 Sovereign Debt Crisis and it was omitted from the history books as well as Gailbraith’s Great Crash. This was all to support socialism. They lied! Surprised?
The problem is, politicians and economists had to sell the New Deal. Read the newspapers before 1929 and after the New Deal. Previously, stocks rose when interest rates rallied because that was bullish showing there was still a demand for money. Just look at the facts. Rates decline sharply with every depression and recession. They rise with booms. With the New Deal, the thinking flipped and became higher interest rates are bearish BECAUSE government wants to see stocks decline because they now dictate the economy. Analysts did not pick-up the rug and investigate anything. Everyone adopted the New Deal thinking and Keynesianism. They fashioned their theories on facts that were flat out right bogus propaganda, intervention, and manipulations. Sorry, but the confusion people experience today is because they fail to see the world as it is and prefer to see government as the demigod of Wall Street. The analysis is NOT free market, it is what will they do to us next!
The popular myth that gold will rise to $30,000 because of hyperinflation is just nonsense.Germany ended the hyperinflation not with gold, but with real estate backing to the banknotes. Unfortunately, people WANT to believe this stuff about hyperinflation and constantly send me emails only trying to argue points like brainwashed terrorists expecting to get their 72 virgins. Who would want that many anyhow I do not know for they would come with 72 mother-in-laws. There is not a single incident of any established major government going into hyperinflation. They all die by their own hand committing financial suicide because they attack the people in search of wealth precisely as they are doing now. Liquidity is off by 50% from 2007. They are destroying the world economy and are brain-dead. They are TOO STUPID to see that they are collapsing civilization by destroying all the very reasons that brought people together in the first place. Someone from a foreign land cannot open an account with Merrill Lynch and deal with a broker of choice. He must only go through their international desk because they have to report to everyone what he is doing in the USA. There are custodians who will not accept REITS because they do not want the problem of trying to value them for regulators. With every step we take, we are destroying more and more of our economy not to mention losing all our human rights.