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Life In A Sound-Money World
Authored by John Rubino via Substack,
Pretend, for a moment, that it’s 1971 and you’re President Richard Nixon (admittedly disturbing fantasies, but bear with me). You face the perennial government income/outflow dilemmas, and other countries, noting your struggle, are trying to cash their dollars in for your limited pile of gold bars.
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Another indicator, called "credit spread."

^ Another indicator, called "credit spread." When people panic, when recession hits, yield on junk becomes much higher than yield on treasuries. In time of panic, the credit spread widens, blue line (junk yield) goes up, purple line (treasury yield) goes down. We are not in panic mode yet.