10Yr Yields declined as international Capital Flows began demanding dollars out of the fear as to what is occurring outside the USSA.
This implies, as well, a robust demand for perceived "Safety" - the very last thing it actually is.
Europe, as we have indicated for months now, remains a basket case.
For as bad as it is here, it's worse there.
However, this is short term in its duration as the USSA is losing favor as a "Partner" of actual substance.
The Long Con remains in trade.
It will get a lot worse outside the USA which remains bullish on capital inflows.
Simply watch France as they are teetering on another Bastille Moment.
_____________________________________________________________________________________________________________
That said, the objective of the Level Pullers is not friendly.
Sending hoards of cash into the Fed Reverse Repurchase Market - reduces the cash in the Banks. This ONLY accelerates the liquidity crisis, which, in the very short term can have an important effect on Yields.
It is temporary.
Christine LaGarde, has been inferring that a policy shift is taking place which will be a transition in 2022. Stimulus policies have totally failed and the negative interest rates have destroyed the European Bond Market. Inflows to USTs is axiomatic for the EU, for the UK... not so much as they have shown a clear and present desire to position to China's Bond Market... slowly.
The ECB's ONLY tool remaining is the rather hurried rush to digital currency ASAP for Europe is out of time.
It will not go over well and lead to immense Social unrest.
France, Ireland, Spain, Greece, Italy won't simply roll-over.
80 Central Banks around the Globe desire digital currencies according Lagarde - "We think that it's a duty of us to actually have available digital currencies that would operate to the benefit of consumers."
There is nothing the governments ever do that is for the benefit of consumer citizens unless it benefits the Government 1st.
LaGarde intends to end Private Cryptocurrencies.
In her own words - "funny business" in Crypto needs to end, once and for all.
They will be regulated out of business... plan for it.
When you replace "Currency" which comes into existence from DEBT, Governments no longer need DEBT MARKETS
aka Bonds.
Currency no longer exists, Unlimited Pokemon Cards do however.
The ability of the ECB to continue buying endless debt from its member states is coming to an end.
Pressures to break up the EU is growing and this above all is driving the ECB to take drastic actions.
They will cancel the Euro ahead of schedule, sending the FX Markets into a tailspin.
_____________________________________________________________________________________________________________
UST Bond HODLers somehow believe this works well for them... it can in the very short term.
Ultimately, the Tide begins to approach our shores as Confidence itself evaporates.
The game of borrowing forever with no intention of paying anything back is coming to an end
and with it the US Bond Markets.
What will be the Value of your Bonds?
They will become "Perpetual" - you will be allowed, permitted and forced to accept a coupon
with no return of principal, that will be in Lock Down for good.
Any/All protest from the SVM / Bong Community will have to provide critical rebuttal of the above
for any further consideration.
Unintelligent Echo is considered amorphous, Vapid, Delusional, Degeneracy and participation in its
own demise.
We are no longer entertaining idiocy.
- Hunter Killer
This implies, as well, a robust demand for perceived "Safety" - the very last thing it actually is.
Europe, as we have indicated for months now, remains a basket case.
For as bad as it is here, it's worse there.
However, this is short term in its duration as the USSA is losing favor as a "Partner" of actual substance.
The Long Con remains in trade.
It will get a lot worse outside the USA which remains bullish on capital inflows.
Simply watch France as they are teetering on another Bastille Moment.
_____________________________________________________________________________________________________________
That said, the objective of the Level Pullers is not friendly.
Sending hoards of cash into the Fed Reverse Repurchase Market - reduces the cash in the Banks. This ONLY accelerates the liquidity crisis, which, in the very short term can have an important effect on Yields.
It is temporary.
Christine LaGarde, has been inferring that a policy shift is taking place which will be a transition in 2022. Stimulus policies have totally failed and the negative interest rates have destroyed the European Bond Market. Inflows to USTs is axiomatic for the EU, for the UK... not so much as they have shown a clear and present desire to position to China's Bond Market... slowly.
The ECB's ONLY tool remaining is the rather hurried rush to digital currency ASAP for Europe is out of time.
It will not go over well and lead to immense Social unrest.
France, Ireland, Spain, Greece, Italy won't simply roll-over.
80 Central Banks around the Globe desire digital currencies according Lagarde - "We think that it's a duty of us to actually have available digital currencies that would operate to the benefit of consumers."
There is nothing the governments ever do that is for the benefit of consumer citizens unless it benefits the Government 1st.
LaGarde intends to end Private Cryptocurrencies.
In her own words - "funny business" in Crypto needs to end, once and for all.
They will be regulated out of business... plan for it.
When you replace "Currency" which comes into existence from DEBT, Governments no longer need DEBT MARKETS
aka Bonds.
Currency no longer exists, Unlimited Pokemon Cards do however.
The ability of the ECB to continue buying endless debt from its member states is coming to an end.
Pressures to break up the EU is growing and this above all is driving the ECB to take drastic actions.
They will cancel the Euro ahead of schedule, sending the FX Markets into a tailspin.
_____________________________________________________________________________________________________________
UST Bond HODLers somehow believe this works well for them... it can in the very short term.
Ultimately, the Tide begins to approach our shores as Confidence itself evaporates.
The game of borrowing forever with no intention of paying anything back is coming to an end
and with it the US Bond Markets.
What will be the Value of your Bonds?
They will become "Perpetual" - you will be allowed, permitted and forced to accept a coupon
with no return of principal, that will be in Lock Down for good.
Any/All protest from the SVM / Bong Community will have to provide critical rebuttal of the above
for any further consideration.
Unintelligent Echo is considered amorphous, Vapid, Delusional, Degeneracy and participation in its
own demise.
We are no longer entertaining idiocy.
- Hunter Killer
BY Q3 2022, the axiom will be in full swing.
This is why the Equities Complex will begin a very rapid ascent
as Bonds and Real Estate Fail.
You can't keep a good bunch of Degenerates DOWN when
the TINA's are Nil.