The sub-zero kakistocrats running the shitshow are facing a day of reckoning for serious inflation and the Ponzi-unit, false-price-discovery crises they’ve created
Thursday was another black day in the financial markets. At long last, the European Central Bank acknowledges the seriousness of inflation in Europe and claims it will wield its tools to do something about it. Incredibly these tools so far consists of a signal of a token 25 bps hike in July and the end of their securities purchase program (aka QE) on July 1.
Also demonstrating in spades the total central bank price setting domination and lack of price discovery is the response by the insolvent sovereigns of Europe. This answers a question that “radical doubters,” such as me, have been asking for years:
What happens with the central banks end QE and their heavy-handed interventions?
The answer is a bond meltdown, as illustrated by Greece.
This was Greece before the end of ECB’s QE!
What insane party bought these and similar bonds for a 1% yield throughout 2020 and 2021? And 4.1% now is just the beginning.
Update: It hit 4.3% in early Friday European trading.
Worse in terms of impact are the sovereigns of insolvent-debt bloated Italy, a country that was further drained and looted during the Covid scamdemic. And now an energy shortage weighs on Europe. The yield on the Italian 10-year bond surged 25 basis points to 3.7% hovering around levels not seen since 2018. Many more black days lie ahead for the PIIGs of Europe.
Again, a question begs:
Who bought these PIIGs at sub-1% fictitious prices?
Other indications that “it’s happening” come from China, Version 666.0 of the shitstorm.
All banks in #Shanghai have restricted depositors from withdrawing money.
Remember the videos about banks having no money to all withdrawing from Henan Province I tweeted before? A bank run is about to sweep #CCPChina. pic.twitter.com/WgDVnjLsky
— Jennifer Zeng 曾錚 (@jenniferatntd) June 9, 2022
Turkey default looks imminent.
— ilhan tanir (@WashingtonPoint) June 10, 2022
On June 15, the U.S. Federal Reserve kakistocrats are scheduled to lower the U.S.’ securities portfolio by $47.5 billion. During their meeting, they’re also expected to raise the Fed Funds rate by 50 bps. The quarterly blackout on stock buybacks starts June 14. As the tide goes out, we will finally see who’s not wearing a swimsuit.
It’s almost like a script for a new “Margin Call” movie. Is a Cabal of shady banksters meeting in a dimly lit conference room on the 18th floor of the BIS tower in Basel right about now to decide who will be this cycle’s Lehman?
Secretary of Treasury “Damnit” Janet Yellen has been a longstanding sub-zero kakistocrat of the lowest order. Her latest offering — after draining the strategic petroleum reserve — is to impede Russian oil (key to supplying developing nations) and constrict the oil market even further.
*YELLEN: BANS ON INSURANCE OF RUSSIA OIL COULD HAVE IMPACT
did she have a stroke
— zerohedge (@zerohedge) June 9, 2022
Damnit Janet claims the U.S. consumer is in “good shape” because they can liberally use their credit cards to survive. Damnit says that’s a good thing.
Credit card debt soared by $17.8 billion in April, the second-highest amount ever recorded. The highest ever was in March, when it soared to a staggering $25.6 billion. Consumers are completely tapped out. They’re using their credit cards to buy food and pay for other essentials. #Stagflation.
— Peter Schiff (@PeterSchiff) June 7, 2022
AMERICANS OWE $22 BILLION IN LATE UTILITY BILLS AS ENERGY PRICES HAVE SOARED 34%
Global energy crisis = inflation crisis.
— Gold Telegraph ⚡ (@GoldTelegraph_) June 10, 2022
Home refinancing (typically equity extractions) have collapsed to the lowest level since 2000.
This is the same Dr. Evil rabble that passed new rules at the market top about trading in markets. Fucking legendary.
A massive inventory overstocking recession is underway.
$TGT is the 2nd largest container importer. They announced today they’ve cut vendor orders. $WMT (#1) and others are likely to follow. Container volumes bound for the US have dropped by 1/3 in past two weeks. https://t.co/kCvSAeDcRu pic.twitter.com/VbzUSNyHFw
— Craig Fuller 🛩🚛🇺🇦 (@FreightAlley) June 7, 2022
Shipping rates from China to the western coast are down 38% month over month. Trucking rates are down 31% since the start of 2022. Railroads are reporting a 3% YTD decline in volumes. Air cargo in May (YoY) down 7% after a 11.2% fall compared to April 2021.
If this isn’t a canary in the mine shaft about food shortages, I don’t know what is.
The apocalypse has officially begun, the sh!t has hit the fan! pic.twitter.com/Hh3acJVXvK
— Wall Street Silver (@WallStreetSilv) June 8, 2022
Approval rating for Damnit’s administration has dipped to 39%. Those must be the same pajama people that bought into the sub-1% yield and stimmie-check stories.