Yesterday suddenly as the 30-year was about to break the important support at 1.81, a sudden wave of selling hit US government bonds…
A break undone, with 2 conspicuous gaps, accompanied by abnormal volumes.
Obviously, those unfamiliar with it immediately rushed to suggest that the Fed meeting has terrified the markets, rates are about to explode, bonds are about to collapse and so on, the usual ignorant amenities.
In fact, it was clear from yesterday to someone well-informed that Evergrande would not pay interest on the maturing dollar bonds and in our opinion, someone was forced to sell the family silverware, or government bonds to make liquidity, strictly in dollars.
A script already seen during the pandemic, someone sells at the beginning, then the “fly to quality” begins!
China Evergrande Group remains silent on debt matured on September 23, a coupon on offshore debt of $ 84 million. Technically, default is declared 30 days after non-payment, but local authorities have been asked to prepare for the worst anyway. Beijing will not come to the rescue of the $ 300 billion indebted real estate giant, but the Central Bank also intervened today to stabilize the system by injecting another $ 70 billion into the system.
Now a little reflection that you will not find anywhere else.
70 billion came out of nowhere to stabilize a group of psychopaths who play with money, to stabilize a handful of legalized criminals the sols of central banks always find them, for other trifles of nothing, such as work, welfare, school and so on. are there ever.
Until the people understand that the greatest danger to democracy is this finance, until they understand that bankers like dragons are placed there to administer the failure of democracy, silent and resigned.
One who until yesterday wrote letters to suggest cutting pensions, salaries, health care, one who has not found a single cent for Greece, now goes around Italy to say that the money must be given and not taken away, that taxes do not it is necessary to increase them, now that he is a liquidator of democracy like Monti.
For heaven’s sake, competent, expert, very good but still liquidator since the days of Britain.
Meanwhile, European banks are trying to reassure investors that their exposure is limited to Evergrande.
Cristina also says so, all limited, all solid and in the meantime Evergrande collapses by 17%.
See you at the weekend with another episode of our manuscripts, entitled… MACHIAVELLI: FEAR!
The manuscripts from the beginning of the year are more than enough to understand how to seize it, the last great opportunity, the most colossal in history, because today they are all on the wrong side of a boat that is about to sink again.
I remind all those who need that ICEBERGFINANZA is also a 360 degree consultancy, in the midst of this perfect storm.
By clicking on the link below and sending an email to [email protected] it is possible to have strategic advice on possible macroeconomic and financial developments in the coming months, as well as to receive our manuscripts. Good day Andrea
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