The crash has just begun. Note that 13% decline in
notionals, to 592 Trillion, and 66.5% increase in real value,
to 33.9 Trillion. Guess where the biggest increase in
real value was? Nope, it was not the CDS. It was rate swaps.
9 Trillion dollars. Things have surely subsided since
December, but imagine what a Black Swan in T-bondz will do
to this picture. Yes, the rate swaps caused far more
damage than the widely publicized CDS, but they are, of course,
on books, and payment of the bulk is not immediately required.
bis.org
As far as gold goes, don't expect the Swan to necessarily
cooperate with your grand vision. The interest rate on
gold is artificially kept at zero, so if T-bonds crash, they may
take down gold. Only a global run on physical held by
"lending" CBs can alter that picture. |
