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World Stock Markets Trading Discussion - Rancid regeneration


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All Ords 5-day chart

big.chart?nosettings=1&symb=AU:XAO&uf=0&

http://bigcharts.mar...com/default.asp

 

All Ords closed +0.3% with sectors pretty much the same as the morning post: Energy +1.6%, Miners +1.3% down to Gold -2.1%.

Over in Asia, China +0.1%, Hong Kong flat, Japan +0.3%, India currently +0.1%.

UK/Europe opening in the red: FTSE and DAX -0.2%, CAC -0.4%.

 

 
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THE REPO FILES PART XXX

The Fed can't stop the REPO.

Not if it wants Treasury rates to remain supressed.

This reminds me very much of the interest rate suppression policies pursued by the FED during WW2.

The long bond was pinned at 2.5% in WW2.

(while inflation got up to 14% in 1946)

The FED is suppressing rates and pinning the entire yield curve in order to fund the 1 trillion defecit.

This is massively inflationary.

Expect CPI to be watched like a hawk!!!!!!!!!!!!

Any private holder of bonds with half a brain will start to dump treasuries.

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4 hours ago, Jimbo said:

THE REPO FILES PART XXX

The Fed can't stop the REPO.

Not if it wants Treasury rates to remain supressed.

This reminds me very much of the interest rate suppression policies pursued by the FED during WW2.

The long bond was pinned at 2.5% in WW2.

(while inflation got up to 14% in 1946)

The FED is suppressing rates and pinning the entire yield curve in order to fund the 1 trillion defecit.

This is massively inflationary.

Expect CPI to be watched like a hawk!!!!!!!!!!!!

Any private holder of bonds with half a brain will start to dump treasuries.

I disagree that it is CPI inflationary because there is no mechanism to significantly move all that liquidty, money, from the financial markets into the real world economy, save for luxury goods.  In 1946 most everything imaginable was in short supply making price rises easy and inevitable.. Now virtually nothing is in short supply making price increases above 3% almost impossible.  

With almost unlimited capital, credit that is,  to fund any project imaginable combined with the ease and speed of building  industrial plants and equipment due to the stupendous technological advances of the last 50 years there is no reason for anything to be in short supply and that means limited price inflation. 

Also:

Don't tell JPM holding Treasuries is dumb.

As of the second quarter of 2019, the big four banks alone accounted for more than 50% of the total Treasury securities held by banks in the United States - the largest 30 banks held about 90%

https://www.bis.org/publ/qtrpdf/r_qt1912v.htm

I refuse to link to ZH which fleshes the above article out and discusses JPM massive reworking of it's balance sheet to favor Treasuries.

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Just made it to my hotel in Madrid after a long day of travel from Badajoz in western Spain.  It's 9:10 PM here, just dinner time!  

I'll be posting the gold report in the wee hours your time. 

Hasta bananas! 

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