title: reasons you should stop using facebook
text: why is obama threatening russia with world war  right before the election michael on television we are being set up for higher interest rates a major recession and a giant stock market crash   november th  
  since donald trumps victory on election night we have seen the worst bond crash in  years  global bond investors have seen trillions of dollars of wealth wiped out since november th and analysts are warning of another tough week ahead the general consensus in the investing community is that a trump administration will mean much higher inflation and as a result investors are already starting to demand higher interest rates unfortunately for all of us history has shown that higher interest rates always cause an economic slowdown and this makes perfect sense because economic activity naturally slows down when it becomes more expensive to borrow money the obama administration had already set up the next president for a major recession anyway but now this bond crash threatens to bring it on sooner rather than later 
  for those that are not familiar with the bond market when yields go up bond prices go down and when bond prices go down that is bad news for economic growth 
  so we generally dont want yields to go up 
  unfortunately yields have been absolutely soaring over the past couple of weeks and the yield on  year treasury notes has now jumped one full percentage point since july  
  the year treasury yield jumped to  in late trading on friday the highest since december  up  basis point since the election and up one full percentage point since july 
  the year yield is at a critical juncture in terms of reality the first thing that might happen is a rate increase by the fed in december after a year of flipflopping a slew of postelection pronouncements by fed heads  including yellens relatively soon  have pushed the odds of a rate hike to  
  as i noted the other day  so many things in our financial system are tied to yields on us treasury notes just look at what is happening to mortgages as wolf richter has noted  the average rate on  year mortgages is shooting into the stratosphere 
  the carnage in bonds has consequences the average interest rate of the a conforming year fixed mortgage as of friday was quoted at  for top credit scores thats up about  percentage point from just before the election according to mortgage news daily  it put the month on a short list of  worst months in more than a decade 
  if mortgage rates continue to shoot higher there will be another housing crash 
  rates on auto loans credit cards and student loans will also be affected throughout our economic system it will become much more costly to borrow money and that will inevitably slow the overall economy down 
  why bond investors are so on edge these days is because of statements such as this one from steve bannon  
  in a nascent administration that seems at best random in its beliefs bannon can seem to be not just a focused voice but almost a messianic one 
  like andrew jacksons populism were going to build an entirely new political movement he says its everything related to jobs the conservatives are going to go crazy im the guy pushing a trilliondollar infrastructure plan with negative interest rates throughout the world its the greatest opportunity to rebuild everything ship yards iron works get them all jacked up were just going to throw it up against the wall and see if it sticks it will be as exciting as the s greater than the reagan revolution  conservatives plus populists in an economic nationalist movement 
  steve bannon is going to be one of the most influential voices in the new trump administration and he is absolutely determined to get this trillion dollar infrastructure plan through congress 
  and that is going to mean a lot more borrowing and a lot more spending for a government that is already on pace to add  trillion dollars to the national debt this fiscal year 
  sadly all of this comes at a time when the us economy is already starting to show significant signs of slowing down it is being projected that we will see a sixth straight decline in yearoveryear earnings for the sp  and industrial production has now contracted for  months in a row  
  the truth is that the economy has been barely treading water for quite some time now and it isnt going to take much to push us over the edge the following comes from lance roberts  
  with an economy running at below  consumers already heavily indebted wage growth weak for the bulk of americans there is not a lot of wiggle room for policy mistakes 
  combine weak economics with higher interest rates which negatively impacts consumption and a stronger dollar which weighs on exports and you have a real potential of a recession occurring sooner rather than later 
  yes the stock market soared immediately following trumps election but it wasnt because economic conditions actually improved 
  if you look at history a stock market crash almost always follows a major bond crash so if bond prices keep declining rapidly that is going to be a very ominous sign for stock traders 
  and history has also shown us that no bull market can survive a major recession if the economy suffers a major downturn early in the trump administration it is inevitable that stock prices will follow 
  the waning days of the obama administration have set us up perfectly for higher interest rates a major recession and a giant stock market crash 
  of course any problems that occur after january th  will be blamed on trump but the truth is that obama will be far more responsible for what happens than trump will be 
  right now so many people have been lulled into a sense of complacency because donald trump won the election 
  that is an enormous mistake 
  a shaking has already begun in the financial world and this shaking could easily become an avalanche 
  now is not a time to party rather it is time to batten down the hatches and to prepare for very rough seas ahead 
  all of the things that so many experts warned were coming may have been delayed slightly but without a doubt they are still on the way 
  so get prepared while you still can because time is running out