CME: Chinese Yuan (CNH) Euro FX (6E), Micro S&P (MES), Micro Nasdaq (MNQ)
The US government is within ten days of defaulting on its debts. If this unprecedented catastrophe were to happen, what could it trigger?
Risky assets, from stock, bonds, FX, to commodities, will go through a violent period of reset and repricing. Weaker economies could be hit hard if the...
USDPKR is closely following USDLKR before the Sri Lankan Rupee hyperinflated in April 2022.
Below USDLKR can be seen creating a pattern in 2020 and 2021 very similar to what FX_IDC:USDPKR has been doing in the last year.
Here is what happened after Sri Lanka defaulted, and FX_IDC:USDLKR went from 200 to 360 in a matter of days
Given the above...
We'll have dinner 'Cantillon Effect' the poor pay. 🤣
Many thanks to cover the sun with more inflation & devaluation and enjoy the misery to America & Europe, is just a wealth transfer, mathematics never lies, all your politicians and military always lie and will come out with the pockets fully of money. 🤣
This long term weekly chart compares the relationship between:
1) economic fundamentals
2) fears of falling equity prices
3) expected default rates in credit markets
The top half of the chart overlays the long term correlation between the VIX (in orange) to speculative corporate bond yields (blue). The bottom half of this chart shows the Fed's National...
As the default risk for Deutsche Bank keep increasing by the day it is now technically ready to move lower towards it's default target of 0.11€ it is still to date the most obvious contagion to the stock market crash of this decade.
However the most likely target on the way down will first be 2.5€ which sits on the trendline from the top notation in May of 2007...
This is the real market risk, the most obvious contagion to date that will most likely cause the next financial crisis because of the amount of debt that the bank holds within the banking system when this stock moves down the market also follows.
Technically below that trendline and Deutsche Bank moves towards default and 0.11€
