As we know so well; over the last two weeks, the chaos in global markets finally reached the shores of Manhattan. Market chaos, that had previously been quite widespread and headlined by China, finally gripped U.S. markets. Now we find out China has exited over $100 billion of U.S. Treasury bonds in just the last two weeks and has indicated it is dumping more through Belgium and elsewhere.
China will clearly no longer fund U.S. budget deficits in the foreseeable future. This leaves us with the misunderstood truth “the Federal Reserve is THE Buyer of last resort.” Worse yet; the Emerging Markets have had to jump the gun and have already started to unload U.S. Treasury’s as their currency falls to reflect lower trade and China’s devaluation of the Yuan.
Apparently, the U.S. has now crossed the Rubicon of sorts and will be forced to “print” deficit spending as a last resort. It is called MONETIZATION and has ALWAYS led to hyperinflation.
Consider this approach. It’s a hell of a lot cheaper and a lot more valuable than indebting yourself for eternity…
When China’s stock market started to slide a few months ago it was a gift in disguise to the IMF. It wasn’t that China’s financial markets were thrown into chaos. Those things happen from time to time, especially when economies are so bloated on fiat paper.
The real problem was how the Chinese government reacted to it.
They froze stock prices. They jailed short sellers. They even tried whipping retail investors into a frenzy, pushing them to go out and mortgage their homes to buy more stocks.
The string of authoritarian measures they implemented looked plain desperate and amateurish, leaving the rest of the world thinking, “same old China.”
Thus, China’s 10+ years of trying to convince the world that they are serious and credible were in vain.
The Wall Street Journal’s recent hit piece was the perfect example of media bias and propoganda….
It is now legal for law enforcement in North Dakota to fly drones armed with everything from Tasers to tear gas thanks to a last-minute push by a pro-police lobbyist…
It appears Atlas has grown up quite a bit over the past two years, and is now capable of strutting its stuff beyond the lab, and into the great American outdoors…
This is EXACTLY the type of market behavior that we would expect to see during the early stages of a major financial crisis.
The U.S. and Global Markets are now entering CONDITION RED
Let me give you an example of something that I bought recently, and talk you through my thought process.
As a caveat, I should tell you that I generally dislike stocks.
Stock markets are a rigged game designed to extract wealth from the little guy and put it in the pockets of investment banks and high frequency traders.
So for me to be interested, there better be some serious value on the table.
This Problem, Reaction, Solution blueprint happened in Cyprus, now Greece, setting the stage for bail-ins throughout the Western world, in order to save the banks that created all the financial mayhem from the beginning.
Guess what plan is waiting in the wings for the masses now?
With the hullaballoo from the recent Chinese devaluation, the rupture in the foreign exchange markets has shown signs of a panic.
With escalating tensions between the U.S. and Russia, Kissinger blasted the handling of the Ukraine situation without keeping focus of “long term order.”