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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 408.23+2.3%Dec 22 4:00 PM EST

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To: TobagoJack who wrote (197183)3/13/2023 5:04:55 AM
From: carranza2  Read Replies (1) of 218685
 
Who would have thought that the loss of value in USTs caused by rising interest rates would create a capital crunch for banks, whose bedrock are USTs.

Didn’t happen when Volker raised interest rates significantly higher.

Fortunately, the biggest foreign owner of USTs is Japan.

Number two, China, has reduced its holdings by about 15% in the last few months as far as I can tell, but I could easily be wrong as accurate numbers are hard to obtain.

Number three is the U.K.

I don’t think any will sell in any significant way because doing so would imply massive losses for everyone on the planet.

So, rising rates are done for, cooked.

Good for stock market, bad for gold. Really bad for US consumer as inflation cannot be controlled.

Really, really bad for Joe Brandon and Dems.

Another epic miscalculation by the Fed.

I thought banks were super solid after 2008.

No systemically important banks appear at risk, but they’ll be hammered anyway, so a good buying opportunity appears to exist in that space.
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