06/25/2019 (Tue) 13:32:03
The USTreasury Bond is the global subprime bond, and the outcome will be a much bigger bond market crisis than in 2008. It is often called the Everything Bond Bubble. The so-called financial stimulus has been actually hyper monetary inflation, which has destroyed the bond market, even if having prevented a USGovt debt default back in 2012. Legitimate bond investors have vanished years ago. There are no legitimate USTreasury buyers outside the US foreign vassal states. On many different platforms, the USDollar is being rejected, including the crude oil market. Next comes its rejection in the commodities market. By this is meant that the oil and commodity trade is much less dominated by the USD in trade payment. Such is motive to keep the wrecked bankrupted shale sector alive, so as to provide some added USD-based oil trade.
A perfect Storm is hitting the diverse Bond market. Witness a diverse set of very serious if not calamitous warning signals, many noticed but not well as a collection to signal imminent financial crisis. In the Jackass opinion, the Systemic Lehman Crisis has begun. Witness the many warning signals:
Enormous USGovt debt heading for over $1.2 trillion this fiscal year
A gigantic mass of BBB-rated corporate bonds now measured at $3.3 trillion
A badly inverted USTreasury yield curve with all points upside down
Heavy reliance upon derivative machinery to produce fake bond demand
Strained primary bond dealers who cannot find investors
Dwindling USFed cash reserves which worsen each month
Anomalies with respect to Interest on Excess Reserves
An official Fed Funds rate above many bond yields along the maturity spectrum.