Bonds, Stocks Slammed, Dollar Jumps After Budget Deal, Bad Auction

Take your pick - a dismal 10Y auction that spiked rates to where the carnage started last week, or a budget deal that suspends the debt ceiling and adds to the fiscal recklessness of America's balance sheet?

Either way, stocks are tanking...

Pushing The Dow back below its 50DMA...

VIX is surging back above 25...


And of course XIV continues to run the show...


Bonds are tanking...

Remember, Friday's 666-point selloff started due to yields spiking to 2.85%; they are now at 2.84%

Even as the Bill curve normalizes modestly...


And the dollar is bid as risk-funding unwinds...


east of eden dasein211 Wed, 02/07/2018 - 14:37 Permalink

About a year ago I tried to explain to all the 'hot honchos' on ZH, that a market collapse meant a serious drop in the gold price as well. Nobody saw it. Nobody paid attention. But they will. Very soon.

It's not even the end of the first full week of February and already gold is dropping like a stone. That was 'some impressive gold rally, no'? 

Don't expect it to stop until it reaches 750, possibly a bit lower. Then, you buy.

In reply to by dasein211

Xamune east of eden Wed, 02/07/2018 - 14:58 Permalink

Gold does drop upon the initial impact of the market collapse.. only to skyrocket upon the perpetrators applying their "fix", to a level much higher than before the collapse. Nonetheless, an up vote given because initially you are correct.. now would not be the best time to buy IMHO either. Not sure about that $750 target though, I would not hold my breath!

In reply to by east of eden

east of eden Davidduke2000 Wed, 02/07/2018 - 14:40 Permalink

Well, you see, the Rothschilds, and consequently, the Fed is on the horns of a dilemma.

If they allow the gold price to rise, not only will the US not be able to buy any gold for trade settlement, but, they will make China and Russia richer beyond belief, since both of them have been stacking gold for at least the last 10 years.

And don't be fooled by the 'official' gold holding figures. There is simply no way that China only has 1,500 tons of gold, more like 50,000 tons.

In reply to by Davidduke2000

octomancer east of eden Wed, 02/07/2018 - 15:18 Permalink

At least in the west, the problems of governments being indebted to bankers has its origins in war. Medieval kings borrowed immense amounts of gold to fund ego-driven campaigns, bleeding their countries dry and handing power to the bankers. Plus ca change ...

But the imperial power spent all its gold on global conquest, only to have it turn sour. So then it said "Gold is for wimps, paper is the new gold!" And now that "gold" is running out too. The sun always sets on empires.

In reply to by east of eden

hvl626 octomancer Wed, 02/07/2018 - 16:45 Permalink

I haven't seen the BIS being audited---or even being the object of government control.  The Rothschild medieval predecessor of the BIS assisted putting the Federal Reserve scheme into place.  How the FR hides money for bankers from the government (in the same manner as Rothschild did for medieval kings---and the ECB undoubtedly does with the Euro) is alleged at : ...

PS: The term 'borrowing' is a misconception--borrowing could not result in inflation.  The scheme was book-entry credit creation.


In reply to by octomancer

Give Me Some Truth BaBaBouy Wed, 02/07/2018 - 14:42 Permalink

Re: Why would gold nose-dive on the news spending increases and debt ceiling is suspended?

You pose an excellent question, which is easy to answer. This "Should NOT" happen ... which means it most certainly will happen (and just did happen).

The message being sent is kind of brazen: "Son, nothing is going to happen that is going to make gold and silver go up. Anytime you think it's going to go up, we are going to make sure it goes down."

I don't know why "they" keep sending this message. I mean, We've got it already. I guess they believe in reinforcing their message.

In reply to by BaBaBouy

s2man BaBaBouy Wed, 02/07/2018 - 18:35 Permalink

baba, it is to be expected.  Gold goes down as folks sell their gold (good as cash) to cover their margin calls.   After they get out of their equity/bond/vix hole, Then they will move to gold as a safe haven.

All of the 'Not If, but When' stuff I have been studying for the last eight years is finally unfolding before my eyes. Equity, UST and Dollar melt-ups before they crash.  Gold sold.  It is happening folks.  Its just a slow-motion train wreck.


In reply to by BaBaBouy

Richard640 Seasmoke Wed, 02/07/2018 - 13:30 Permalink




Please be advised that….



Gold-as if we needed more proof with this latest non-performance in a crisis—is definitely a Museum piece—it’s just a buggy whip in the post-modern age of the Cloud and hypersonic- ramjet/scramjet bombers…that said, against all logic, I will continue to track and trade my “Magnificent Obsession”…any questions?

In reply to by Seasmoke

ReturnOfDaMac dasein211 Wed, 02/07/2018 - 15:12 Permalink

Hint: Ever since the street started crypto exchanges, it's been downhill. They can now manipulate crypto, just like gold and silver.  But wait, it gets better.  With pesky metals, they have to "pretend" they own some, and pretend to pay storage fees and keep books etc.  With crypto, it's just bits.  Even more profitable, there is nothing to store, it's all supposedly in the ledger, and they can get paid for absolutely nothing at all, brilliant!

In reply to by dasein211

Praetorian Guard Praetorian Guard Wed, 02/07/2018 - 13:38 Permalink

I'm confused. How exactly is the budget going to be reduced if they want to suspend the debt ceiling, cut personal and especially corporate taxes, and increase military and infrastructure spending to the tune of trillions, oh and give amnesty to wet backs who will compete against 90+ million US CITIZENS who are either un or under employed? 

In reply to by Praetorian Guard