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Is China Dumping German Paper Now? Bund Prices Are Collapsing
German bonds are under significant pressure again this morning - despite equity weakness and US Treasury strength. This raises the rather interesting question of whether - after decimating Treasuries last week, is China turning to its Bund holdings and liquidating them to raise cash?
Bunds crushed to one-month lows...
as 10Y yields spike to 6-week highs...
Charts: Bloomberg
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What is cash?
A rapidly devaluing debt instrument that pays no interest.
... is China turning to its Bund holdings and liquidating them to raise cash?
Well... Germany is skipping the upcoming 70-th anniversary Military Parade in China.
Looney
Payback is a bitch . . .
So is the leader of Germany.
vote for me and you won't have to worry about China's shenanigans anymore...I'll make America great again !!
"dragon whips his tail"
Bruce Lee...Enter the Dragon
The end game is here.
The end game for whom, exactly?
The fiat monetary system
Oh, OK. In that case you're wrong. Well, early, anyway.
Then there's this!
http://finance.yahoo.com/news/gartman-im-confused-still-buying-111743434.html#
Cornfused
dump the paper, keep the gold...seems wise to me
What if the government gold vaults are empty in China, too? Talk about a Black Swan.
Why does everyone simply assume the gold is there? They've lied about GDP, they've built ghost cities, they've arrested short sellers, and they're communists. People here tend to assume they have more gold than they officially say, but what if it's less??
Leave the gun, take the cannoli....
Very similar to the Saudis, sell what you can to raise "funds" to continue status quo or Control as long as possible, don't tell anyone you are buying gold.
I am starting to feel a noticable bias towards blaming everything on China. I'll be the first to admit, they have a large part in recent events, but it's starting to feel like everyone's throwing the kitchen sink at them.
Yep, like I said in the past; when the shit comes home to roost there will be a scape goat to protect the fed. "Terrorists" will be the only people who know who the real criminals are.
They have to in order to whip the public into the right frame of mind. And to give those Nimitz-class carriers a good send-off to the South China sea...
Not so much a send-off as a farewell to the bottom one percent of the high school class who will be heading to the bottom of the ocean floor.
This sucker's goin' down...
hmmm maybe that variable rate mortgage is not so good
Good, let's make it interesting
And we will some a nice dose of sanctions against China after the China presidents visit Sept 3rd, just to keep it real ya know.
Heh! Asking someone what cash is these days will get you at least a half dozen answers. My best guess is what ever you can keep on hand and live off of for a year. Evaluate about every six months to see wheter things go deflationary or inflationary. Right now food, whiskey, ammo, and some cash looks about right. If you can afford it, maybe 10 percent of your savings in gold.
It's just China Greecing Germany's skids..... there is a lot more where that came from. China deals in real numbers...not like $1 billion or 2 here and there like Greece.
Maybe the Europeans are starting to figure out that QE eventually results in higher rates (just like they did here for every single iteration of QE). QE increases inflation expectations and sometimes inflation (even if it's only transitory), and eventually yields should start rising to reflect that.
If all the sovereigns dump USTs then the FED/gov.com will have to turn to the ultimate bagholders-in-waiting, aka private pensions and bank accounts.
Fed can buy up UST but that'd be too Zimbabwe-like, and hyperinflationary, so they'll still need to grab some low-hanging real wealth to burn through and keep up pretenses. When they do it will go down as the most telegraphed confiscation ever. It would be very wise of you to get out of the system.
It is hard to say exactly who is doing what every day although sometimes it is far easier than others to figure it out. That's what you get with truth's protective layers. Everyone has their own goals, own agendas and own intentions. Every interested party spends seemingly endless time and resources jockeying and positioning themselves for their own benefit at the end. This isn't just by politics, or region or country but too many variations. And yet still nobody appears to be focusing on a the immediate biggest threat globally which is the financial mess that we've all been purposely put in the middle of happening. And so quite a few are on edge waiting for the planned and timed financial collapse and subsequent move forward to the official kickoff of global hostilities.
Stabilizing the markets globally should be paramount, coordinated and obvious at this point in time if this were the clear intent. Instead we see daily moves and risks being taken that certainly appear to indicate that this global approach still isn't happening. At least not to the degree necessary to ensure perceptions aren't misperceptions. And then let's say the misperception is only with the public. And the events are a result of the unknown impacts of changes being made to the preexisting problems in place. Then the global public also needs to be reassured so that they don't overreact and contribute to causing more market instability.
I find it amazing that short of blowing up the planet there aren't hotlines in place right now to come to an equally agreeable stand down on all these financial issues that keep arising. If there are they don't seem to be utilized to the fullest extent possible. And then a subsequent united public message of mutual support and actions to stabilize things. It all goes back to priorities and interests. They aren't global. And so like the song 2 Minutes to Midnight said "And to the tune of starving millions to make a better type of gun" we continue to progress in the direction of failure and self-destruction. I won't speculate on some who have alluded to the fact that this has been aided, enhanced or encouraged over time by outside influences. Anything is possible. I'm pretty confident in saying that humanity has perfected death and the ability to destroy itself many times over and could just as well do it without outside influence. Especially in the current global structure in place designed to foment competition and aggression under the guise of nations that are in fact corporations.
But let's say that the nations really exist and there isn't some larger scripted plan in play. If China did in fact take actions that Germany wasn't aware of then in my opinion they made a tactical error in judgement. The short term benefit to possibly stabilizing their market may have cost them an very significant opportunity at strategically position themselves for a future opportunity by working together with Germany. The idea I had would have the potential for far greater benefits for both just not in the short term. For the sake of brevity I won't elaborate. I'm confident China was insightful enough after last weeks currency moves and results not to purposely take unilateral actions that would generate more significant market instability in any location including at home. If today's fluctuation was an unexpected consequence of something then I'm sure the respective countries can work it out.
As I mentioned in previous posts there are always a few inside any organization that will look to instigate problems and purposefully cause division. I am fairly confident that the attack in the Ukraine today is an example of this. It seems far less than coincidental that it occurs shortly after Saturday's agreement between Germany, France and Russia who held a three-way conference call and publicly agreed that a ceasefire would be reinstated on 1 September. So as to not delve into politics I will say that the conference call, agreement and publicity was a great smaller example of the same type of global cooperation needed to stabilize the financial markets as problems arise. Or as a means to coordinate and reduce future impacts that can lead to unneeded large fluctuations.
Now all we need are the right visionaries and resources to do this at a global financial level. Not only for stabilization but for designing a replacement and smooth transition off this old failed system set to purposely self-destruct. And as if that wouldn't be hard enough the various global militaries would need to be equally cautious to not hold training or other events that could be perceived as inflammatory to already heightened tensions surrounding the financial markets. North Korea and South Korea recently deescalated a heated situation very quickly to their mutual satisfaction and it was very publicly acknowledged. Another good example of what needs to happen as we progress into the potential for danger.