China’s central bank makes big bet as defaults begin, global bond bubble continues to inflate, plus the big squeeze on state and local government employment.

China’s Big Defaults Begin
July 20 (King World News) – Emma Muhleman, Analyst & Global Macro Strategist:  “China Minsheng Investment group defaults on $500mm worth of external debt, a first of its kind and another symptom of the cracks (gaping holes) in China’s financial system. Foreign Investors (and foreign investors in China / Global bond funds beware).”

China’s Central Bank (PBOC) Makes Big Bet
Jeff Snider at Alhambra Partners:  “The PBOC is making an enormous (& involuntary) bet with its balance sheet. Really doesn’t have any other option. It’s the same thing as in the spring & summer of 2015. (See charts below).

PBOC Made Huge Bets With Its Balance Sheet In Spring & Summer Of 2015

TODAY: Once Again China’s Central Bank Making Enormous Bet With Its Balance Sheet

The Big Squeeze On State & Local Governments
Adam Tooze:  “The squeeze on state and local government finances in the US is starkly visible in their sharply falling share of employment since 2009. (See chart below).

THE BIG SQUEEZE: State & Local Government Employment Plunging

CAUTION: Global Bond Bubble Continues To Inflate
Holger Zschaepitz:  “Bond bubble continues to inflate w/value of global bonds hit fresh high at $55 trillion. Rally driven by number of Central Bank rate cuts together with perceived Fed dovishness despite better data. Eurozone bonds gained by report ECB is studying dovish symmetrical inflation target around 2%. (See chart below).

CAUTION: Global Bond Bubble Continues To Inflate Hitting Fresh High At $55 Trillion!

Bill Fleckenstein discusses in detail what investors should be doing now after the surge in gold, silver and the shares as well as the discussing the action in gold and silver and what to expect next in his KWN audio interview and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

Gold & Silver Pulled Back, But This Is Truly Remarkable
READ THIS NEXT! Bill Fleckenstein Interview – Don’t Get Left Behind In This Gold & Silver Bull Market CLICK HERE TO READ

More articles to follow…

In the meantime, other important releases…

Gold & Silver War Heats Up: Despite Pullback, This Is Truly Remarkable CLICK HERE TO READ

Peter Schiff Just Warned “QE Infinity Is Coming” Plus Silver Has Been On A Tear! CLICK HERE TO READ

Gold Surges Near $1,450: Major Gold Alert Just Issued By Gerald Celente CLICK HERE TO READ

Another Bullish Gold Catalyst, Economic Downturn Getting Worse, Plus It’s Not Just Sovereign Bonds That Have Negative Yields CLICK HERE TO READ

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