Bonds Away!

The US bond market may be closed, but it was fully open in China, and locals took advantage of this fact to do one thing: sell. In the aftermath of our viral post “”Catastrophic” Property Sales Mean China’s Worst Case Scenario Is Now In Play“, China property firms bonds were hit with another wrecking ball onContinue reading “Bonds Away!”

Peak Ponzi: Domino Theory

Evergrande: Companies like Evergrande. Junk companies borrowing USDs at 20%+ comprising ~35 “significant” companies representing 12.5% of the current market cap of the Red Ponzi property sector has already lost some $500 billion to date. These companies develop and sell the 85% of homes bought as investment property – speculators – facing to be a seriousContinue reading “Peak Ponzi: Domino Theory”

Ball. Court. Germany: how do you like those 2000EURs/month heating bills?

Gold, Goats, and Guns: https://tomluongo.me/2021/10/06/european-energy-crisis-gas-you-think-burning/ The European Gas Crisis keeps hitting new high after new high as gas prices around the world go ballistic.  While this isn’t just a European problem, if you read the MSM, that’s all they seem to care about.   You know, it snows in Japan as well folks, and China.Continue reading “Ball. Court. Germany: how do you like those 2000EURs/month heating bills?”

Fed End Game or “Ending the Game of Fed”

US debt is currently ~$29 trillion – up ~$6 trillion in 2 years. All signs are Joe “10% for the Big Guy” intneds to double that rate this year even as supply chains are incapable of handing the modest economic growth to date. No surprise, the 14% inflation we’re seeing (yes – it’s 14%) isContinue reading “Fed End Game or “Ending the Game of Fed””

Coal for Christmas – China’s Supply Chain in Crisis

Human Terrain: https://fortisanalysis.substack.com/p/coal-for-christmas In mid-April 2021, I began receiving reports from sources in China and the United States that certain regions in China had begun to experience ongoing power disruptions at their warehouses and manufacturing facilities. Most notable of these was in south China’s Guangdong megaregion, where in June operations at the Taishan Nuclear PowerContinue reading “Coal for Christmas – China’s Supply Chain in Crisis”

Doomberg on Powell

While far from being a fan of Jerry “The Put” Powell, Dormberg does a great job highlighting the banana republic in which we live. https://doomberg.substack.com/p/jerome-powell-is-finished The elephant in the room is whether you’re going to be renominated. Renominating you means gambling that, for the next five years, a Republican majority at the Federal Reserve, with a Republican chair who has regularlyContinue reading “Doomberg on Powell”

Yikes! Inflation Nation!!!

Energy and Transportation costs lead the way The index for final demand services rose 1.1 percent in July, the largest one-month increase since data were first calculated in December 2009.   Final demand goods up 0.6 percent in July following a 1.2-percent jump in June. Nearly half of the broad-based advance in July is attributable toContinue reading “Yikes! Inflation Nation!!!”

Peak Red Ponzi?

If so, now what? If there is a “one and only one” place to go to understand macro-markets, it is Jeffrey Snider of Alhambra Investments. Jeffrey’s EuroUniversity series should be a masters program for anyone in or into the markets. Read each post several times to lock it in. Jeffrey’s pitch today – the RedContinue reading “Peak Red Ponzi?”

Discounting the Future

Steve Goldstein on living in the moment – literally: https://www.marketwatch.com/story/interest-rates-havent-been-this-low-in-5-000-years-11627644496?mod=home-page Interest rates haven’t been this low in 5,000 years How is this for a historical comparison — interest rates are at a 5,000-year low. That’s a finding in the latest Bank of America flow show report, which, in fairness, is a number that’s been trottedContinue reading “Discounting the Future”

Reverse Repo Madness

Is this the work of a serious artist? And here’s Tyler showing you what’s ahead: https://www.zerohedge.com/markets/25-trillion-reverse-repo-year-end RRP volume is quickly approaching $1 trillion a day, with today’s reverse repo usage hitting the second highest on record at $987.3 billion and just shy of $1 trillion. And with QE still running at $120 billion a month,Continue reading “Reverse Repo Madness”