Donald Trump’s attempt to expand the dollar system through stablecoins. Trump wants to limit the supply of the dollar and its parity in order to reduce trade deficits while at the same time not wanting the US currency to lose its privileged status as the world’s reserve currency. This can be successfully done by integrating …
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Trump: Attack to “Fortress Europe” through the Bond market with Capital Controls and the abolition of Dollar Swaps
The “monster” of the bond market has awakened after the turmoil of the trade war, this time on the occasion of the detection of fiscal derailment – not only in Washington but also in the major financial capitals. The indications from the long-term bond auctions smell… blood! Foreign investors are selling off American debt after …
Risks to Europe’s financial system from Gold Derivatives
Gold derivatives are now a risk to the global financial system, the European Central Bank said in a note written by its four economists. The note, titled “What does the record price of gold tell us about risk appetite in financial markets?”, comes nearly 25 years after a GATA delegation led by President Bill Murphy …
Credit Default Swaps are back for the US
Credit Default Swaps, or CDS, are a type of security that provides protection against default on bonds. Investors are worried that the U.S. government may struggle to pay its debts — and are buying insurance to protect themselves in the event of a default. The cost of insuring exposure to U.S. government debt has been …
Trust Economics: A new Global cycle of terror is underway
The world is on a grim and unpredictable path, with geopolitical upheaval, military conflicts, and economic derailments creating an explosive combination with unpredictable consequences. The Middle East looks like a powder keg ready to explode, as Israel and Iran are one step away from open conflict. Meanwhile, the United States is sinking deeper into a …
Is a Global bond market crash possible?
Liquidations, steepening and sell-off – The new phase of volatility in global bonds has begun. At a time when the positive side of the distribution curve in US stocks was starting to gain interest again (as we were approaching the point of exercise of options dealers’ “short” positions above 6,000 units of the S&P 500), …
China abandons the Dollar and buys Gold – Liquidated $27.6 billion in US bonds
China’s decision to dump US bonds and at the same time engage in massive gold purchases to bolster its foreign exchange reserves amid a trade war is heralding a monetary earthquake. This move did not come as a bolt from the blue as Beijing’s gradual withdrawal from US debt began during the period of sanctions …
The Fed is secretly buying billions of dollars worth of US bonds – What does this mean?
The US Federal Reserve has quietly made a major move — in four days last week, without any publicity, the Fed has withdrawn $43.6 billion in US Treasury bonds. That’s $8.8 billion in long-term 30-year bonds on May 8 alone, plus another $34.8 billion earlier in the week. Not exactly small change. Quietly returning monetary …
Volatility and MegaCaps drive Μarkets
With “significant progress” being made in US-China trade talks, including the announcement of a temporary 90-day “haircut” on tariffs, exceeding even the most optimistic expectations (with each country reducing its tariffs by 115%, i.e. the US reducing from 145% to 30% and China from 125% to 10%), US Treasury Secretary Bessent said that neither side …
Trump’s Political Victory with Trade Deals
Trump’s April 2 “Liberation Day” tariff announcement sparked sharp volatility in U.S. government debt and equity markets, with the S&P 500 index falling as much as 15% and borrowing costs rising. Markets have stabilized after Trump suspended most of the retaliatory tariffs, but concerns remain that the president’s policy changes could dampen foreign investor enthusiasm …