Author: John Pugliano
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What are lows in interest rates, energy and commodities telling us?
The interest rate rule-of-thumb is that 10 year government bonds are approximately equal to nominal GDP. Global and US nominal GDP forecasts for 2015 are in the ballpark of 4.8%. The rule-of-thumb is obviously out of kilter when we consider current 10 year government interest rates from around the world: Russia 16.05% Greece 8.68% India…