Panic is now unfolding as something is seriously spooking the financial markets and the short squeeze in the gold market accelerates.
SOMETHING SPOOKING BONDS: Systemic Liquidity Issue
July 3 (King World News) – Jeff Snider from Alhambra Partners: “Repo rate shot up yesterday, and T-bill rates all over the map, systemic liquidity is an obvious issue. After all, despite all this trade truce talk SOMETHING is spooking the (bond) market. (See chart below).
SOMETHING Is Seriously Spooking The Bond Market!
Nothing To See Here
Jeff Snider from Alhambra Partners continues: “The UST 10s close below 2% for first time since Trump was elected. German 10s record low (again). It wasn’t long ago we were told interest rates had nowhere to go but up. For some, it seems like too much has changed; bonds are being overly pessimistic. (See chart below).
NOTHING TO SEE HERE: 10-Year US Treasuries Close Below 2%…German Yields Hit Record Low…Again
PANIC: Fed Funds, Repo Rates, Repo Fails & Swap Spreads
Jeff Snider from Alhambra Partners continues: “Then you see fed funds; repo rates; repo fails; swap spreads; the foreign repo pool; on and on. It is flight to liquidity driving bond yields. (See chart below).
PANIC IS NOW UNFOLDING: There Is A Major Flight To Liquidity Driving Bond Yields
Cheap Money Wreaking Havoc…
Fred Hickey: “When cost of money (interest rates) is artificially suppressed for this long, all sorts of bad behavior occurs. Result: too much financial speculation. Zombie cos. can stay alive, money losing Unicorns get funding. Mgts. can borrow to do roll-ups & buyback shares: = EPS inflation.
…Until The Eventual Collapse
Fred Hickey continues: “For a while, seems great. There is some additional economic “activity” Share prices rise. But it comes at a long-term cost. Malinvestment (money goes to uneconomic pursuits). Capex spending lags, huge debts & excess capacity piles up, asset prices inflated. Eventually – a collapse.”
SHORT SQUEEZE CONTINUES
READ THESE NEXT! SHORT SQUEEZE CONTINUES: Gold Surges Above $1,430 But Gold May Be Set For Even Further Gains CLICK HERE TO READ
LOOK AT HIS PRICE TARGET: James Turk – The Real Short Squeeze In Gold Is Now Underway, Plus A Look At A Serious Collapse CLICK HERE TO READ
More articles to follow…
In the meantime, other important releases…
ALERT: This Is A Huge Warning As Gold Surges Back Above $1,400 CLICK HERE TO READ
Multi-Billionaire Hugo Salinas Price Just Warned This Is What Has International Bankers So Worried CLICK HERE TO READ
First Time In 80 Months! Plus Gold Is Rising In Popularity But Here Is Why You Don’t Have To Worry About Silver CLICK HERE TO READ
***KWN has now released an extremely important audio interview with Dr. Stephen Leeb discussing why he believes that the price of gold will soar above $10,000 and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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