WARNING: A major sign of fear, plus a surprising look at gold and gold stocks.
Bonds Have Gone Dot-Com Ballistic
August 8 (King World News) – Holger Zschaepitz: “This might be the bond market’s Dot-Com Moment as prices of Long-Term government bonds went ballistic. (See below).
Is This The Bond Market’s Dot-Com Moment?
Low Rates ARE NOT Stimulus
Jeff Snider at Alhambra Partners: “This isn’t about “stimulus”; low rates ARE NOT stimulus. They are the signal that the entire global economy is trapped. It’s not just that the eurodollar market called another false dawn when it inverted in June 2018. It is also the reason why it did. (See below).
LOW RATES ARE NOT STIMULUS: They Are The Signal That The Entire Global Economy Is Trapped
Everything Is Synchronized Globally
Jeff Snider at Alhambra Partners: “Everything is synchronized globally. Bond yields meaning liquidity risk, deteriorating growth, and therefore globally synchronized central banks. Further synchronized with foreigners’ tendency to sell their dollar assets (because they have to). (See below).
Liquidity Risk And Deteriorating Growth
WARNING: A Major Sign Of Fear
Sven Henrich: “The ECB is smoking crack. Look at DAX vs the German 10 year & you see a central bank in process of losing control. Negative rates have lost their efficacy and they don’t know what to do. We’re seeing a colossal policy failure in print. DAX is below the 2015 highs, has broken the 2009 trend, built a bear flag which broke down all the while yields are collapsing and now they want to cut rates again with a ECB balance sheet at 40% of Eurozone GDP? Just stop. Rate cuts at that stage of the cycle are not a sign of effective stimulus. They are a sign of fear. The fact that this major central bank, 10 years after the financial crisis, can’t even raise rates to ZERO without risking collapsing the system is beyond embarrassing and a reflection of how weak the financial system actually is. They can barely keep it together.”
China Fighting A Losing Battle
Robin Brooks, Chief Economist at IIF: “In principle, the fix (white) is supposed to “chase” $/CNY (orange), i.e. reflect market supply – demand dynamics. But that’s not what is going on, even if we have now (finally) gone above 7.00. China is working hard to avoid excessive RMB weakening & resulting currency tensions. (See below).
China Fighting To Halt Weakness In The Yuan
Gold & Gold Stocks
Peter Schiff: “From Jan. to Aug. 2016 the gold price rose by about 30%. During that time the GDX (a gold stock ETF) rose by 160% In contrast, since Aug of 2018 gold is also up about 30%. Yet the GDX is only up 60%. To equal the 2016 move, the GDX would need to gain anther 60% from here!”
KWN will be releasing many articles today…For now
McClellan Just Issued This Major Warning To Investors
READ THIS NEXT! ALERT: Tom McClellan Just Issued This Major Warning To Investors CLICK HERE TO READ
More articles to follow…
In the meantime, other important releases…
CAUTION: This Is How Crazy Financial Markets Have Become CLICK HERE TO READ
UNBELIEVABLE: Reckless Central Bankers Pushing The World Toward Gold, A Silver Lining, Plus One Heck Of A Collapse CLICK HERE TO READ
GOLD BREAKS $1,500: Albert Edwards Just Warned What The Next Phase Of The Global “Ice Age” Will Look Like CLICK HERE TO READ
Gold Surges $30 And Silver Is Soaring More Than 4% But Look At What Is Getting Scary CLICK HERE TO READ
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