How close are the peasants to revolting? From Bill Bonner and Joel Bowman at bonnerprivateresearch.com:
(Source: Getty Images)
Bill Bonner, reckoning today from Baltimore, Maryland…
If this is really the beginning of a long, dark period of rising yields and falling asset prices, the markets still haven’t gotten the message.
The Dow closed on Friday over 36,000 – near an all-time record (still, with an inflation adjusted loss of about 20%). Gold is hitting a record high. And Bitcoin is once again trading over 42,000. Bloomberg:
The biggest cryptocurrency rose as much as 6.1% to reach $42,144 as of 11 a.m. on Monday in London. Bitcoin was last at these levels in April 2022, before the TerraUSD stablecoin collapse that accelerated a $2 trillion rout in digital assets. It’s on track for the biggest annual gain since 2020.
Of course, we could be wrong. Maybe the economy really is healthy. Maybe stocks and bonds really are going up in price, reflecting the general prosperity of our time.
Maybe…but more likely we are still in that transition stage from one major trend to another. We’ve left behind one period (marked by ultra-low interest rates without much inflation); we have not fully entered another (where the threat of higher inflation hangs over Fed policy). In the meantime, anything can happen.
But last week, we were looking at something else…deeper and more dangerous – the revolt of the masses.
