The global bond markets are wrecking havoc with the con men running this show. The supposedly safe German bonds have been tanking (interest rates rising) of late which might be why the top mgt changed at Deutsche bank recently. The move looks quite motive to me.
Keep in mind that bonds are not really the issue; they are just the metric. The real issue, as I have explained many times, are the massively leveraged "over the counter" (AKA "completely unregulated) derivatives whose notional value is between 700 trillion and 1.4 quadrillion USD depending on how you count it.
As Jim Sinclair always says, "There is no such thing as a derivative that does not have an implied or defined interest rate characteristics. This is the chain that connects them all."
When the next liquidity crisis hits, and I think it is coming soon, it will likely be driven by the need to satisfy derivatives which are triggering unexpectedly. What I mean by this is that traditional relationships between supposedly linked things will break down. Economic assumptions, understandings and relationships which have held for hundreds of years (and are thus considered "truths") will be blown wide open. Unfortunately, the derivatives writers will not have considered this and thus while they believe that most derivatives offset each other to produce a zero sum game they will find instead that a large chunk of the derivatives actually all trigger under certain unexpected circumstances.
I don't care if the real value of derivatives is 700 trillion or 1.4 quadrillion dollars. Even $100 trillion has the ability to easily wipe out the entire global debt Ponzi.
Here's a question I think we all need to ask ourselves in advance for consideration mainly after the collapse occurs: why did we let them do this to us? Was it that nobody could see what was happening, nobody could do math, nobody could envision a horrible outcome? Well, I want to dispel that thought because lots of people are talking about this and not just the "if" side but more like the "when" side. So don't tell me later on that nobody saw it coming. I in fact don't just "see" it coming, I count it as an unavoidable eventuality. And my reasoning is simpler and more direct than any math equation. Simply, too many people have been getting rich without doing nearly the work needed to economically justify it. The only way that can happen is that they are either stealing that wealth or they are conning the rest of us out of it (in other words, technically legal but completely amoral abuse of the mass ignorance of the population).
If just a few are stealing, society can eat the losses. But the level of theft has the word "trillions" in it and so believe you me, when the accounting finally comes due it is going to result in major, major upheaval and very likely world war. Yes, it's that bad. I know it doesn't seem like it but it is. In fact, if there were more noise about it I would feel more comfortable. It's the almost lack of news on the matter that makes me wonder when the bear will come storming out of the treeline at full gallop.
When it happens I expect markets to just lock up. Major exchanges around the globe will likely be closed for days or possibly even weeks as a form of capital control (stopping people from exiting the Ponzi scheme). When some of these open back up weeks later it will be with a 30-50% gap down. All the people will be pissed and they will be looking for ass to kick. The US politicians will blame other countries and other countries will blame the US. Then the leaders will look to set the people of the world upon each other in order to save themselves from getting lynched in the street.
All I can say is why do we put up with it? Why don't we just go clear out the rat's nest now and save ourselves a whole lot of global pain and suffering later? The fake money supply and the treasonous bankers who run it should just be shut down immediately so we can begin anew with an honest money supply based on gold and silver.
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