The sell-off in Japanese bonds is a warning to global economies. As yields – particularly at longer maturities – soar and demand collapses, Japan is becoming a case study in what happens when investors lose patience with huge deficits and debt. Japan’s government bond market is currently facing an existential crisis, marked by a sharp …
Tag: bonds
The ECB is secretly rescuing France, while in 2010 it threw Greece into the jaws of the markets
The European Central Bank (ECB), especially after the Greek adventure, has a long history of intervening in government bond markets in order to contain yields during periods of turmoil in the debt market. However, this is not an exercise of monetary policy but an intervention by the Brussels deep state. The most characteristic — and …
Why are US stocks living in an alternate reality?
Stocks seem to be moving in an alternate reality: while indices are hitting historic highs and the market is in a bullish recovery, the underlying economic fundamentals and the real economy don’t seem to fully support this. So what are the forces and factors that explain this “unexplained” rise? From monetary policy easing to investor …
Bretton Woods III from Russia, China and India with a Chinese wall of gold, energy and commodities
Beyond the fading glory of the G7 and G20 — groups of states formed in the aftermath of World War II and now mired in stagnation and demographic decline — a new alliance has emerged on the geoeconomic map: the BRICS+ group. This coalition — Brazil, Russia, India, China and South Africa — represents a …
Hybrid economic warfare: Scenarios for a massive sell-off in American assets and the “nuclear solution”
US bond yields are rising amid concerns about inflation and monetary policy, putting significant pressure on the US’s already tight fiscal position. If President Donald Trump fails to secure sufficient revenue from retaliatory tariffs and a surge in inflationary pressures is not averted, the world’s largest economy risks a sudden death. On Tuesday (22/7), US …
Bond Markets: Reduce Debt and Deficits – deficits will not be financed by the markets
The Land of the Rising Sun is not generally of much interest to global investors — until something goes really wrong, when it does. Japan’s $7.8 trillion government bond market is suddenly causing major financial shocks around the world. A few days ago, Japanese government bonds (JGBs) were the usual haven of calm with ultra-low …
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 …
How will the “punishers” of the bond market be eliminated in 3 moves? The battle for the 10-year
Donald Trump’s retreat, as many mainstream media outlets have pointed out, was not so much driven by the bloodshed on Wall Street as by the reaction of the so-called “punishers” of the bond market (please read also the analysis titled “Tariffs and the $3 trillion held by Asian central banks that make them punishers in …
Great Britain faces a serious debt crisis due to tariffs and deficits
Donald Trump’s trade war and the country’s dire fiscal position risk plunging Britain into a Greek-style debt crisis, investors have warned. Weaker economic output combined with the Treasury’s negative fiscal data are exposing Britain to a “negative growth spiral”. Britain’s £2.7 trillion debt, which exceeds the size of the economy, leaves it vulnerable to the …