Loading ...All the fake GDP growth in China has been supported by Potemkin projects, all the steel, copper and concrete that goes into ghost cities, and the railways, roads and bridges to nowhere. With a declining population, and a high youth unemployment, there will be no demand for coal, iron ore and bauxite. Our dollar dropped below USD0.60 recently, and while it has bounced to above 0.65 yesterday, I still expect it to go below 0.50.
Buygold, yeah right mate. Dump treasuries, sure, but what are they gonna buy? Eh? Haven’t thought of that, have you? Nothing as good as good ol’ US Treasuries, no sirree! Gold? Who’d buy that stuff? People who sell USTs; HA, idiots. Wait …. WHAT!!
Seriously, the adage that you can’t manipulate the bond market is mostly true, but we know that they have spiced treasury auctions in the past. So I don’t trust one-off stunning results like in the 10s today especially after rates had been creeping up for the previous three days. 4.5% seems to be the line in the sand. Creep up, up, up: dump. Rinse and repeat. One day the filter will block.