Not your average recession . . . .

[biglentil]

Pay attention . . . China 10-year yields.

Commodity deflation is very real . . . .
Massive gov’t stimulus has done little to control deflation. Has China entered a depression?

I have the complete opposite take. Yields rise when the monetary condition tightens and currency becomes scarce. In the alternative yields plummet like the above graph when Central banks engage in massive amounts of stimulus inflating the currency supply. If you listen closely you can hear the Chinese printing press just went into hyperdrive, brrrrap. These newly printed Yuan will chase commodities like gold, copper, oil.... and hopefully Canadian canola. Its a race to the bottom for fiat currency, buckle up the hyperinflationary turbocharger is beginning to whistle.

[errolanderson]

China is in a complete deflationary debt spiral despite massive gov’t stimulus. China banks are now insolvent. S Korea markets collapsed. They are panicking . . . .

Central banks can now print all they want. This ‘can kicking gimmick’ is clearly up. In fact, the can is now kicking central bankers.

Canada and the U.S. appear in the early stages of debt-driven deflation era. Lots of change in business ahead.

How long this will last? Possibly years. This debt hole is very deep. Housecleaning should have been years ago. Now situation much worse.

No banker or politician is going to tell you this story. Choose who you want to believe.

2025 asset, commodity fallout to continue. Auto industry will be in the financial news in 2025. Big trouble Mergers. Nissan and Honda? How low will oil prices go?

Cash remains king IMO. Warren Buffet stockpiling for some time.

[shtferbrains]

I think I kind of understand the cash is king thing in that there will be bargains for the few with cash.
But how do you protect the cash?

[wheatking16]

I think I kind of understand the cash is king thing in that there will be bargains for the few with cash.
But how do you protect the cash?

Buy USD

[errolanderson]

Dow Jones tanks by 1,100 points this afternoon, posting first 10-day losing streak since 1974.

Tears-of-greed and margin calls . . . .

[biglentil]

I can hear it already, "Hey J POW we need some more of that mouseclick moola stat!!!!"

Yields will tank inflation will rip. The alternative is a debt crisis like we have never seen. The market is like a raging alcoholic with cirrhosis at the punch bowl of negative real interest rates. Take the punch bowl away and the economy will implode taking the too big too fails with it.

[makar]

I can hear it already, "Hey J POW we need some more of that mouseclick moola stat!!!!"

Yields will tank inflation will rip. The alternative is a debt crisis like we have never seen. The market is like a raging alcoholic with cirrhosis at the punch bowl of negative real interest rates. Take the punch bowl away and the economy will implode taking the too big too fails with it.

I dont think i understood any of that.

[makar]

I can hear it already, "Hey J POW we need some more of that mouseclick moola stat!!!!"

Yields will tank inflation will rip. The alternative is a debt crisis like we have never seen. The market is like a raging alcoholic with cirrhosis at the punch bowl of negative real interest rates. Take the punch bowl away and the economy will implode taking the too big too fails with it.

Many things sound better in ukrainian, doubt this is one.

[biglentil]

Coles notes version there is a massive disconnect between real income and the big 7 stocks dominated by Nvidia. Some might say we are at the "New Paradigm" level of a mania and that bubble appeared to get pricked today.

Follow? Good

Central banks have two options.

1. Cut rates and print (mouseclick money) in an attempt to paper over the hole in the bubble we saw pricked today, thus inflating the money supply. Essentially another shot of monetary heroin to keep the party in the markets going.

2. Or let the bubble pop causing a cascade of events which could morph into a much greater 2008 style Lehman debt crisis. Even as far as the manufactured rug pull known as the "Great Reset" setting the stage to introduce austerity measures such as rationing, Digital ID, Central Bank Digital Currency, Universal Basic Income, stakeholder socialism and the rest.

Reguardless of which way they go we are nearing the end game of this fiat monetary experiment.

[Old Cowzilla]

What's the usual trend 30 or more days after a USA election has been held for the last 50 years ?