“30-year Japanese gov’t bonds yields jumped from 0.05% to 0.50% in 4 weeks,” continued the same CIO. Their price fell 15%. “The person who locked-up their money for 30yrs in exchange for 1.5% in cumulative interest payments, lost 15% of principal. That’s 300yrs of interest, lost in a month.” And the Bank of Japan just signaled that they want a steeper yield curve. Which means more losses to come. “These instruments are nuclear bombs. They’re toxic waste. They’re owned but un-ownable. Not even Alice encountered such nonsense.” — Eric Peters, CIO Of One River Asset Management and hedge fund manager
A combination of another Yellen wolf, (((Rosengren))), and a lack of more aggressiveness from the ECB and BoJ seemed to tip the computers over to the sell side on Friday. In fact, Rosengren, a dove, gave the fantasy crowd nothing on which to hang their algos. But completely proving that the algos can do nothing but follow headlines, the “market” reversed much of the loss Monday when a Fed mucky muck (((Lael Brainard))), who is not part of the Yellen wolf contingent, repeated the dove mantra.
Of course, that 2.5% fall was nothing in the greater scheme of things, and as we have seen time and time again, the switch gets flipped back on in the days afterward and “markets” miraculously stabilize. There is no way to hazard the trajectory and day to day head-fakes, but my scenario holds that an enormous trap has been laid.
There is no evidence for me that indicates gold and silver and mining shares will be some safe haven going forward. The CoT shows that specs spent a huge cache of ammo trying to run the market back to $1,350. There is real risk of a waterfall dump in the futures contracts.
There is an enormous amount of troubled credit building. This is now apparent. Are the privately held central banks going to throw themselves under the bus to rescue this caca?
Hardly. If you think so, then your understanding of private central banks is flawed. Most of their junk holdings are not transparent, but you can bet your bottom dollar that they are targeted assets that the Cabal and parasite guildists would ultimately like to foreclose and own outright.
My article on the philosophy of the cabalists has been posted at TNN and is a timely read right about now. The cabalists have zero interest in propping up the credit system at this juncture and plenty of incentive to let it collapse.
Afterward, watch for Mario Draghi and various (((Goldman Sachs vampire squids))) and criminals to be promoted to new positions as the nation’s foreclosers and privatization kingpins.
This serves several purposes, but first and foremost is nation-wrecking and, of course, massive looting opportunities. In the short term, they need to make a quick example of Greece and then in rapid-fire order, Italy [see “Goldman Sachs Just Launched Operation Fear in Italy“], Spain and Portugal.
Nation-wrecking can happen in no particular order; and with two outlandish candidates running for president of the U.S. — including a selfish woman dying of advanced Parkinson disease and vascular dementia — you would be making a huge error if you think the U.S. couldn’t rank high on the take-down pecking order.