Loading ...A SPOCKIAN EYEBROW RAISED TO THE DEBT MARKET
This is from Spock Global Matrix.
I took the liberty to make this post Public for Goldtenters . I trust Spock will not mind .
I find Spock’s take to be very very interesting and a scenario not to be dismissed.
NO One is seeing it quite like this IMHO
Greg Mannarino has the same letter..almost
https://gregorymannarino.substack.com/p/the-big-one-stop-looking-at-the-stock?token=eyJ1c2VyX2lkIjo5MDg0MTM4LCJwb3N0X2lkIjo1NTA0NTEzMiwiXyI6Im00cTkrIiwiaWF0IjoxNjUyNjU0NjYzLCJleHAiOjE2NTI2NTgyNjMsImlzcyI6InB1Yi0zNTQzNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ikgWMKDQ_O28A83m3VSCG98uOahP2N7oPNMLzOzguV4&s=r
Fascinating
Ok, I’m no expert, so help me with my thinking. If the debt market implodes, isn’t that synonymous with a vote of ‘no-confidence’ in the US dollar? My thinking is that, yes, there could be swift and violent down drafts as the bond market penetrates key levels…but at a certain point on the curve, capital should flow even more violently IN TO the stock market, real estate market, collectible market, etc… The real ‘bag holders’ will be the ones holding cash, no? If you go extreme enough and say the system has to be scrapped, introduce a new currency, the only way to preserve capital will be in real ‘things’. I can’t store a barrel of oil at home, but I could hold futures contracts, gold & silver, collectibles, and stocks in blue chip companies.
The US dollar, and all other fiat currencies, are now simply units of debt. Their “value” in the FX markets is measured relative to each other.
So yes, the bag holders should include those holding cash.
Other bag holders include holders of debt, including listed companies, real estate mortgage holders, etc.