The Great Financial Write-Off: Part ll

[macdon02]

The push higher in US equities along with Bass's tweet says China and Hong Kong is bleeding capital at an astronomical rate, people are worried it will be seized or unavailable, its flying out of there and so China has to offer higher rates to attract investment for short term BONDS!!! Banks are the govts bitch as far as selling debt. This ties into the repo issues as banks also won't invest in China, (thank god our pension money will, sarc). Hong Kong is a massive financial market in Asia, don't have the numbers on the top of my head. If/ when the civil unrest boils to the point China goes full dictator, it's the end as far "Canada being in it for the long haul". The risks are magnifying here as far as commodity prices. We could be looking at the final push of deflation relatively short term speaking. I highly recommend reading the above hotlinked thread. There was a significant amount of time resources spent on it.

[farming101]

You nailed it MD. It is the ROTW.
To be sure there is plenty of waste and crime/theft of all sorts everywhere included the US, holder of the principle reserve currency for the world, but the big problem is how to prop up the world's economy not the US

[errolanderson]

https://twitter.com/mnicoletos/status/1194933054286028800?s=20 https://twitter.com/mnicoletos/status/1194933054286028800?s=20

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Interesting about the Fed, they seem to be more worried about ROW, then domestic policy. Yes they are in full panic mode. I think this comes back to currency and the rate cuts have been an attempt to keep the Dollar index from skyrocketing. There should of been a break of trendline on the higher timeframe by now if there was weakness in the USA. It just keeps pushing higher with higher lows, not bearish. Have a look at the thread on China, if they need that much debt to spur GDP, they are down to months before the house of cards collapses. I think we have built all our commodity markets around one of the weakest countries in the world. It brings into question the entire central bank rate cut theory from day 1 and whose benefit was it for to start with? More globalization? The central banks are a 1 trick pony, more rate cuts will fix it......Imo serious consideration needs to be made about which market are we as producers selling into for this and the following crop year. Tarrifs are going nowhere, they are here to stay and the game is changing.

Powell is trying to calm the flock, but panic appears breaking out. Fed doesn’t have a plan and the sales of Depends has likely spiked in Washington. This could bring down markets quickly, but Fed is in the money printing business big time. These freshly printed jewels are being parked in equities despite the wheels falling off-the-wagon.

Commodities may be hit . . . .

[biglentil]

China has risen up to challenge US supremacy with their Belt and Road initiative, Brics, and alternative trading systems outside the USD. There will be no resolution to the trade war.

[errolanderson]

Pump it up! Fed adds $104 billion to markets in just one day . . . .

Dow approaches 28,000 on emergency market liquidity injection. This will not end well.