As I already posted, the Central Banks can buy U.S. public debt at no cost. The CBs are all just financing each other. Actually, they are just financing the FED. BUT, "US Fed lent $3.3tn to multinationals, billionaires and foreign banks"
The bankers look out for each other. Private investors are a different story,
Bond prices fall when yields rise – and being short the 10-year Treasury, and thus betting on a rising yield, has become a very crowded and profitable trade for hedge funds and other speculators.
OK, so, a "short" bet is a bet that interest rates will go up.
Alarm! 10Y Treasury Shorts Reach All-time High, Net Shorts For VIX, Gold and 10Y Treasuries Near Record
https://confoundedinterest.net/2018/...s-near-record/
Corporate America has debt equal to 50% of the GDP ($6 trillion) Raising interest rates will make it much harder for them to service their debt. Powell is determined to raise interest rates. The market is betting that this will happen.
Raising rates is a full-on attack on both Europe and the East. China, in particular is sliding down.
9/01 Less than 20% of Chinese bond defaults have been paid back – Bloomberg
So, everybody is betting that the 10 year note will go up. What about the fallout? I already mentioned corporate debt. What else?
As interest rates go up, everything else goes down. RE will fall.
Here is a long, detailed article from 8 years ago, proving that interest rates on Treasury notes will eventually go to zero.

Why US Treasury Notes Will Eventually Yield Nothing :: The Market Oracle ::
Keep in mind that you must subtract the price inflation rate from the paid out interest rate on a bond. Price inflation is running just over 10%.
Alternate Inflation Charts
"Zimbabwe wrote the book on trying to print their way out of economic dysfunction and eventually stopped printing with a z$100 trillion bill. As we all know, a printing press that never stops promotes inflation that eventually makes the printing press irrelevant. Not long after the introduction of the z$100 trillion, Zimbabwe thought about introducing the z$1 quadrillion bill. "

Venezuela, "In 2010 VEF-USD traded just above 8 bolivares per dollar in the black market. As of today it stands at more than 8.7 million bolivares per dollar" Here is the graph. The date of 11/17 marks the start of the rise. that is when Venezuela first defaulted.
http://www.acting-man.com/blog/media...a-1024x577.png
"The next chart shows Venezuela’s narrow money supply M1 since 2008 "
"We calculated that Venezuela’s money supply growth amounts to 46.68 billion percent since the early 1960s."

Venezuela ? An Economic Catastrophe in Charts |
Socialism kills motivation at all levels. Price controls are especially corrosive. State-caused monetary inflation means that far more money is chasing the same amount of goods. This causes price inflation. If the State institutes price controls, the producer has no motivation to produce. He just closes up shop.
Chavez / Maduro inflated the lower loop. Greenspan / Bernanke inflated the upper loop. Armstrong said the hyperinflation is reserved for peripheral economies. Central economies don't suffer it. BUT, Germany was a central economy when the Weimar hyperinflation hit.
Powell seems to be betting that his attack on the rest of the world will not set off a debt crash in America. Long before we had instant worldwide capital transfer (1930), the crash of Credit Anstalt in Austria brought worldwide contagion to the banking system. Deutsche Bank is soon to have a shotgun wedding with Commerz Bank. The Italians are on track to bring down the ECB. Turkey is on track to bring down the Spanish banks.
There will be plenty of default contagion to bring down American banks.
Then, there is the looming Bexit that will / would be a disaster for British banks.
A hard Brexit is looking increasingly likely ... - The Independent
https://www.independent
Powell is going to light something, somewhere.

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