Hello fellow rebel capitalists hope you're well coming to you from Dubai.

It's changed a lot since I've been here last.

That's for sure and I see a lot of good things.

I'm super bullish on Dubai. we'll save that for another video. Right now, the thing that's

catching my attention is the US yield curve, the Treasury market, massively inverted. I mean, first we were talking about the twos and the tens and the one year and the ten year of the three month in the ten year is 1.4, very close to 1.4, I think it's 1.39% inverted. So 140 basis points of inversion.

For those of you who are new to the channel,

what this means is the three month,

not the three year, the three month Treasury is trading with a yield that is 1.4% higher than the 10-year Treasury yield.

I mean, obviously, this should be the complete opposite.

The fact that it's this inverted shows you that the bond market is predicting some very very difficult economic times in the future.

But why is that first and foremost? Because this shows you that a lot of large pools of money all over the world

are betting that the Fed is going to lower interest rates sooner than later.

And they're betting that they're going to do so because of an economic recession, if not depression.

So let's just say that you've got hedge fund XYZ that has $20 dollars under management.

Well, they're going to be long some equities

in a variety of different countries.

So they're saying, okay, how can we hedge our long book? Well, we can buy U.S. Treasury's because if stocks go down, that's

most likely going to be a result of a global recession or a massive recession, economic

depression in the United States, in which case the Fed lowers rates, then most likely the 10 year Treasury yield goes down, which means they have a capital gain on their bonds that would offset the long position that they have in their equities, or whatever long position they may have.

So this is one of the main reasons why you see this kind of

phenomenon. It's because the smart money is predicting a significant economic downturn that will prompt the

Fed to lower interest rates, maybe right back down to zero, and therefore, again, give them that capital

...