Full-blown trade war

in #market6 years ago (edited)

Let's analyse what's going on geopolitically with the dollar, with the markets

We have two dynamics that are very important to look at. Understand... the only thing that has kept this market going up, is the bond market being bought up! By buying those bonds - this has forced a bubble to form in the stock market.


Why bonds, why bubble?


The illusion must be kept real. The central banks have to maintain the spans that they have everything under control. "Our economy is strong". President Trump himself said this is the strongest economy in history. If that's the case, why he is so fearful of a 25 basis point rate hike? Maybe even 50 basis points?


source: US Bonds

This would affect just the overnight rate via the interbank rate - what they charge to lend each other (cash). So it's really kind of an interesting concept as why this is bothering him... Unless there's something else going on, and he realizes that the economy is not really as strong as he wants us to believe. We're in a lot of trouble.


The only thing that has supported this market is the relentless acquisition of debt


We have heard in commercial media, this is the best economy that we've ever had. Meanwhile the Fed doesn't want to rise rates. Not to mention the ECB or central bank of Japan. It makes no sense. Interest rates are the cost of money. Understand that people in western world (for the most part) are becoming broke. They don't even have savings. So they don't know what it's like to be able to earn interest on these accounts anymore.

Bonds going to fall into further pressure?

What will that do? Pretty simple. If bonds continue to sell off, rates will climb. Going the opposite of what President Trump is trying to achieve. He's playing with fire and maybe does not understand the bond market. If bonds continue to fall upon sell-off, moving into next week and the dollar continues to suffer so the weaker dollar with bonds falling will actually mute losses in the stock market.


source: Trade War

If the dollar were getting stronger here, well bonds were selling off we would have a bigger problem. But the bond market is the main thing you need to be looking at.

Bond market is a time bomb. I would expect to see crypto currencies rise but crypto currencies have been under attack.

I think there's a very high potential for a full-blown trade war and currency- debt war to explode.

In the debt market with artificially suppressed interest rates is happening something that we've seen now since since the meltdown of 2008.

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I dont hot this why cryptocurrency is under attck.?

@techxegama Since "bitcoin futures" started to trade on wall street, they make most influence on bitcoin price. Bitcoin price still makes pretty big influence onto lot of other crypto currencies.

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