Loading ...Thank you Sir LibertyPathfinder!
In money matters, your post, Sir LPF, was the post of the day.
In the same vein I posted this the other day: https://goldtadise.com/?p=529060
Follow the money. It’ll lead you to a lot of the “whys” behind the seemingly inexplicable moves of Trudeau et al.
In other news, Russia now has ZERO treasuries. Go fact check that!
GL
LPF — is it fair to interpret this as no other country wants to buy Cdn bonds and therefore CDA is effectively bankrupt. Printing money to buy the bonds= effective 100% inflation rate on new $$$ ??????
The real issue is there is no longer a market in Bonds worldwide, hence no market for setting of interest rates. Everything is interventions. Japan BOJ in 2019 owned 40% of govt bonds, I have no idea where its at today but BOJ just stated they are buying unlimited 10yr bonds. This is the destruction of (earned) capital that Dr Antal Fekete has described. Bond vigilanties are slain, but they storm back in another area.
We have already become a Zimbabwe in analogy.
Jim Sinclair famously said “This is it!” when Henry Paulson’s bailout demands were acceded to over 13 years ago.
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Jim Sinclair coined the phrase “QE to infinity” back in 2009. Few at the time really understood what he meant but then came QE 2, Twist, and QE 3. The premise was that the Fed (central banks in general) could never really tighten credit or monetary conditions in the future without imploding financial markets and ultimately the real economy. Now that the tightening cycle has been hastily aborted (for exactly the reasons Jim originally laid out), the world is right back to where it left off with QE 3 …QE to infinity is already here!
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The size, and thus the global impact of this “exercise in devilry” will be one for the ages.
GL