Germany 10-Year Bund Yield Daily Chart; German Bund Below -0.11% at 2016 Record Lows; The Japanification of Germany and Europe Continues

Global yields are falling. Bonds are bot (price higher yield lower) collapsing yields this week due to the weak China data, India election turmoil and weak US economic data.

The German 10-year bund yield goes negative below -0.11% testing record lows from 2016. The US-Germany 10-year yield spread is 247 bips. Global investors are seeking safe havens and willing to pay Germany for the privilege of parking their money there.

European Central Bank (ECB) President Draghi is tossing and turning in his sleep each evening. Mario is chugging down NyQuil to try and get some shut-eye and escape his intellectual prison for a few hours. Europe is following Japan's playbook of sticking with accomodative monetary policy while a low-growth and low inflation environment persists.

The central bankers have created a sick world. Inflation is Godot despite a decade of global central banker money printing. The Keynesian Einstein's did succeed, however, in making the wealthy class filthy rich since the easy money is used for stock buybacks to pump equity prices higher. Common folks do not own stocks. The central bankers maintain dovish stances since it makes the wealthy filthy rich who then in turn provide a quid pro quo to the central bankers once they leave public office. Former central bank officials enjoy lucrative speaking fees for showing up at a token lunches (the investment bankers thank them for goosing stocks). Such is the crony capitalism system.

It is comical to hear the capitalism versus socialism argument these days. All systems, including crony capitalism, fail because of human greed. It's not rocket science. America's faux free market crony capitalism financial system is on its last legs but the majority of people do not understand this; they will over the next year couple years. Populism and socialism increases around the world due the greed of the wealthy elite class.

Japan is mired in deep debt, low-growth and low inflation for over two decades, since the mid-1990's; they cannot find a way out. Europe is now in the same boat. The aging demographics will not aid Japan, Europe or America in the years ahead instead it will be another headwind. Wages will remain low. The Wall Street Einstein's continue to predict higher yields year after year and they are wrong year after year. Inflation is Godot. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note: Chart is provided courtesy of the Financial Times and annotated by Keystone.