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China Threatens To Stop Bond Purchases

The Elephant in Room

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#1 SemiBizz

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Posted 10 January 2018 - 11:02 AM

https://www.bloomber...less-attractive

 

https://timesofindia...ow/62427906.cms

 

Way I see this, it is the first shot across the bow in the Trade War...and unfortunately, perhaps more.

 

 

 

I'm afraid when you weigh all the alternatives here, the conclusion that people are coming up with is invest in the US...

 

As we "buy American", the planet is already bulging at the seams with capacity...

 

If the US$ falls, that benefits the US Economy, cheaper to buy domestic.

 

And all foreign competitors get priced out of the US market or take deep cuts... even then the door is now open for US tariffs...

 

Real interesting battlefield is setting up.

 

This is probably the biggest economic event in history shaping up.

 

I wonder what the odds of it all ending up peacefully are?

 

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#2 SemiBizz

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Posted 10 January 2018 - 11:27 AM

It's all about TIMING !!

 

BOND AUCTIONS THIS WEEK...

 

3-Year NOTE Tuesday, January 09, 2018

10-Year NOTE R Wednesday, January 10, 2018

30-Year BOND R Thursday, January 11,2018


Edited by SemiBizz, 10 January 2018 - 11:28 AM.

Price and Volume Forensics Specialist

Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"

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#3 SemiBizz

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Posted 10 January 2018 - 01:09 PM

PREVIOUS AUCTION 10 YEAR

 

 2.384%

 

TODAY:

 

2.579%

 

No worries eh?  Still a little under 10% higher in... a month.

 

yes.gif


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#4 gm_general

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Posted 10 January 2018 - 01:27 PM

I bring up this chart again - 40 year downtrend broken to the upside - will the support line hold?



#5 pdx5

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Posted 10 January 2018 - 11:30 PM

 

I wonder what the odds of it all ending up peacefully are?

 

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Odds are pretty good to excellent. China is not in driver's seat to start a trade war with US. Yes, China can unload the Treasuries they hold, but that will start the trade war, and you better than most here know what happens if $400 Billion trade surplus gets removed from China economy. There will be many more ghost cities propping up!


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