Bill Holter’s Commentary
SUPRISE…No rules! What a shocker?
The Rules of the Bond Game
July 23, 2018
American hard money advocate, economist, and publisher Franz Pick once called government bonds “Guaranteed Certificates of Confiscation.” In making that statement, he assumed the government would eventually inflate the debt away and thus confiscate the buyers’ purchasing power.
Yet here we are, with U.S. Treasury Bonds holding steady despite seven rate hikes by the U.S. Federal Reserve, huge increases in the supply of bonds, and inflation on the rise. The obvious question is, why?
The reason why government debt keeps increasing and yields are more or less stable isn’t because of the fundamentals of the debt, deficit, or the economy. Instead, it is because the rules of the bond game are written by the banks, for the banks.
In my first book, “Methods of a Wall Street Master,” I introduced “The Gamboni.” Joe is a skilled poker player, but when he sits down at a new game, he has not learned the rules of the house, which include a special set of winning cards called “The Gamboni.” He therefore loses and goes broke. The moral of that story: If you want to win a game, you have to know the rules.
Bill Holter’s Commentary
Please read and understand this regarding trade. Trade contraction is coming whether man made by tariffs or via credit contraction.
How The Global Trade Contraction Begins
August 11, 2018
Authored by EconomicPrism’s MN Gordon, annotated by Acting-Man’s Pater Tenebrarum,
The world grows increasingly at odds with itself, with each passing day. Divided special elections. Speech censorship by Silicon Valley social media companies. Increased shrieking from Anderson Cooper. You name it, a great pileup is upon us.
It was probably Putin’s fault (just a wild guess) [PT]
From our perch overlooking San Pedro Bay, the main port of entry for Chinese made goods into the USA, facets of the mounting economic catastrophe come into focus. These elements, even for the most untrained of eyes, are impossible to miss.
To meet the relentless expansion of international trade, berths have been widened, and channels have been deepened to accommodate the definitive absurdity of perpetual credit creation: The CMA CGM Benjamin Franklin.
Jim Sinclair’s Commentary
I think the short seller (mainly singular) may have driven Elon nuts.
DealBook Briefing: Where Is Tesla’s Money?
August 9, 2018
Everyone wants to know where Tesla’s cash will come from
Elon Musk’s declaration that he’s (potentially) taking his electric carmaker off the public markets has everyone’s attention, from Wall Street to regulators. The big question: How will he pay for it?
Bankers at Goldman Sachs, Citigroup and elsewhere on Wall Street are feverishly trying to figure out how to make the plan work — and secure an advisory role — despite being in the dark on Mr. Musk’s efforts.
Their current thinking, according to the NYT: A full buyout is probably a nonstarter, but buying out enough shareholders to let the company delist its stock is more possible, and could be worth up to $20 billion.
Meanwhile, the S.E.C. is investigating whether Mr. Musk just violated securities laws. It’s the last two words of his tweet that count here: “funding secured.” If they’re not entirely true, he’s probably in trouble.
Investors are as likely as the regulator to push Mr. Musk to put up or shut up, and to tell them exactly where that funding was secured. (SoftBank turned him down, for starters.)
Short sellers of Tesla shares, who lost more than $1 billion after Mr. Musk’s tweets, are holding firm. They think a deal won’t happen, in part because they believe no one will want to back it.