Bill Holter’s Commentary
As we tried to relay to subscribers earlier today. “It is ALL about credit”! You will understand this shortly…
Coronavirus Paralyzes Global Credit Market As New Issuance Crashes To Zero
February 26, 2020
In the early days, when virtually nobody paid attention to the coronavirus pandemic which China was doing everything in its power to cover up, markets were not only predictably ignoring the potential global plague – after all central banks can always print more money, or is that antibodies – but until last week, were hitting all time highs. All that changed when it became apparent that for all its data manipulation, China was simply unable to reboot its economy as hundreds of millions of workers refused to believe the government had the viral plague under control, starting a potentially catastrophic 2,3 month countdown to millions of small and medium Chinese businesses going bankrupt, resulting not only in untold devastation in the world’s 2nd largest economy but paralyzing and crippling supply chains across the world. Worse, it also triggered the biggest equity selloff in years.
And now, the coronavirus pandemic is about to leave yet another market in critical condition as the global credit machine is grinding to a halt.
As Bloomberg points out, the $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus spreads panic across company boardrooms.
While hardly a surprise with US equity markets suffering one of their worst selloffs since the great depression, Wall Street banks recorded their third straight day without any high-grade bond offerings, an unheard of event – especially in this day and age of ravenous yield apetite – outside of holiday and seasonal slowdowns. Across the Atlantic, European debt bankers had their first day of 2020 without a deal on Wednesday. And bond issuance in Asia, where the virus first emerged, has also slowed to a trickle.
Bill Holter’s Commentary
GATA has been all over this since 1999. they are correct!
How Gold Is Manipulated
February 25, 2020
Is there gold price manipulation going on? Absolutely. There’s no question about it. That’s not just an opinion.
There is hard statistical evidence to make the case, in addition to anecdotal evidence and forensic evidence. The evidence is very clear, in fact.
I’ve spoken to members of Congress. I’ve spoken to people in the intelligence community, in the defense community, very senior people at the IMF. I don’t believe in making strong claims without strong evidence, and the evidence is all there.
I spoke to a PhD statistician who works for one of the biggest hedge funds in the world. I can’t mention the fund’s name but it’s a household name. You’ve probably heard of it. He looked at COMEX (the primary market for gold) opening prices and COMEX closing prices for a 10-year period.
He was dumbfounded.