The Stock Market Bubble Needs To Deflate

There is no way we can have the economic growth that everyone is so excited about until we deflate the stock market bubble and Trump talked about a stock market bubble when he run for Office.

This Is A Gigantic Bond Bubble

This is a gigantic bond bubble that has been inflating for decades and we do not get a free pass because we have Trump. Our economy is so screwed up, the imbalances are so enormous of decades of bad policy that we just cannot elect Donald Trump and now everything magically goes away! (10- Year U.S. Treasuries, iShares Barclays 20+ Year Treasury Bond ETF (TLT) )

The 30-Year U.S. Government Bonds Will Collapse

Donald Trump has already said that we wants to take advantage of these low interest rates, finance deficits with 30 year bonds. So if he is going to be selling all these 30-year bonds, bond prices are already falling now in anticipation of this massive supply. The Federal Reserve is not buying them, there is no more QE in place. The emerging market currencies are being slaughtered, they are not going to be buying dollars, they are starting to sell U.S. Dollars, they are going to need to sell their Treasuries.

So, if you have emerging markets central banks trying to unload Treasuries from their reserves, the Federal Reserve is not buying any and at the same time the U.S. Government trying to sell massive quantities of long term Treasuries, how can the price of those bonds not collapse?