Three Major Market Events That WILL Happen


Thanksgiving is now out of the way. We can move on to Christmas. And New Year’s Eve. And then 2014. And 2015. And onward into the future!

But what’s in the future? If only we knew…

Making predictions is tough…especially when we have no idea what to expect. But wait…Some of the most important things we will see in the future have already happened many times.

Yes, dear reader…your editor is going way, way out on a very solid limb. He has identified three things that WILL happen. No doubt about it. He guarantees it.

I. Interest Rates Will Go Up

Interest rates are not fixed. And the Federal Reserve can’t suppress them forever. Nobody has repealed the interest rate cycle.

So, expect rates to go up.


Hey, you want an awful lot from a free publication, don’t you? Isn’t it enough to give you a guaranteed future event?

We can also tell you that when it happens, there will be hell to pay. Here’s Michael Snyder at Global Research:

At this point, we have painted ourselves into a corner by accumulating so much debt. We simply cannot afford to have rates rise significantly.

For example, if the average rate of interest on US government debt rose to just 6% (and it has been much higher than that at various times in the past), we would be paying more than a trillion dollars a year just in interest on the national debt.

But it wouldn’t be just the federal government that would suffer. Just consider what higher rates would do to the real estate market.

About a year ago, the rate on 30-year mortgages was sitting at 3.31%. The monthly payment on a 30-year, $300,000 mortgage at that rate is $1,315.52.

If the 30-year rate rises to 8%, the monthly payment on a 30-year, $300,000 mortgage would be $2,201.29.

Does 8% sound crazy to you?

It shouldn’t. 8% was considered to be normal back in the year 2000.

II. Our Monetary System Will Collapse

No paper money standard has ever survived a complete credit cycle. Certainly not with a central bank on the job!

Higher interest rates, bitcoin, a credit crisis, a central bank miscalculation – something will bring it down. Something always does.

Bitcoin? Maybe. Bitcoin hit the $1,000-per-unit mark on Wednesday, the day before Thanksgiving. My sons followed it over the weekend.

Hey, I made $1,000 last night,‘ said one. ‘Bitcoin went up $100.

Yeah, and I’m thinking of cashing out and buying an old car,‘ said another.

Bitcoin hit $1,230 on Sunday. A bitcoin hedge fund is up 5,000% – which could be the best performance of any hedge fund in history.

Bitcoin will probably bite the dust sometime soon. That’s the trouble with new technology. There’s always newer technology – and maybe a better bitcoin.

Meanwhile, the dollar has been in a gentle decline since July. Someday, the decline won’t be so gentle. It will be brutal. Then investors will suffer huge losses as dollar-denominated assets sink.

Here’s more from Global Research:

The death of the dollar is coming, and it will probably be China that pulls the trigger. […]

As the global economy trembled before the prospect of a US default last month… China’s official Xinhua news agency called for a “de-Americanized” world.

It also urged the creation of a “new international reserve currency… to replace the dominant US dollar”.

So why should the rest of the planet listen to China?

Well, China now accounts for more global trade than anyone else does, including the US.

China is also now the number one importer of oil in the world.
At this point, China is even importing more oil from Saudi Arabia than the US is.

China now has an enormous amount of economic power globally, and the Chinese want the rest of the planet to start using less US dollars and to start using more of their own currency. The following is from a recent article in the Vancouver Sun:

Three years after China allowed the yuan to start trading in Hong Kong’s offshore market, banks and investors around the world are positioning themselves to get involved in what Nomura Holdings Inc. calls the biggest revolution in the $5.3 trillion currency market since the creation of the euro in 1999.

And over the past few years we have seen the global use of the yuan rise dramatically. […]

International use of the yuan is increasing as the world’s second-largest economy opens up its capital markets. In the first nine months of this year, about 17% of China’s global trade was settled in the currency, compared with less than one percent in 2009, according to Deutsche Bank AG.

III. US Empire Will Go the Way of All Empires

The US can still send its ships and bombers to stir up hornets’ nests wherever it pleases. But someday the hornets will develop a deadly sting.

Or maybe the empire will just go broke.

Who knows? Every empire has to find a way to exterminate itself. The US will be no exception.

This last event could be the most exciting. Falling interest rates and collapsing currencies can be fun to watch, provided you’re not standing directly beneath them. But a falling empire? The imperial warriors typically bring down a lot of innocent bystanders along with them.

But don’t worry. Be happy. Hold onto your gold.


Bill Bonner
for The Daily Reckoning Australia

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Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Bill Bonner

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5 Comments on "Three Major Market Events That WILL Happen"

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2 years 10 months ago

Bye bye America !

Big Joe Mufferaw
Big Joe Mufferaw
2 years 10 months ago

I’m with you BB. I just love the gold and silver smashes, the smell of desperation is in the air. By the way, I slept so well last night I did not have to get up for a pee also.

2 years 10 months ago

and throw in a world war that ends all war……yeaaaaay !

2 years 10 months ago

Oil production will go into terminal decline. Asia will undergo demographic decline (just wait until the effects of female intfacide collide with low fertility–by by black-haird, brown-eyed world for good). Australia will end up in depression, along with the rest of the world and the hyperinflated housing bubble will burst.

A few more forgotton things that will happen by new years eve 2029.

2 years 10 months ago

I’ll give you some guarantees instead:

1. Interest rates won’t go up. The Japanese can do it why can’t the US

2. You will collapse financially before the monastery system does. You really think things are fair and that they aren’t out to rob middle class wealth dry? Yup taxes are going up.

3. The US empire will transform into a international socialist empire. Come on, even the pope is calling for it.

You can only hold on to normalcy bias and be wrong for so long guys.

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