AS I have been saying, the historic rapid rise of short-term interest rates over the past year has gashed the financial Titanic and it now has a mortal wound. Bond prices have risen for 40 + years and peaked and ZIRP (zero interest rate policy) for the past 10 years has sucked all bond buyers into buying at the highest price. And now the bond prices are falling, and bonds are unique in that banks both count bond debt on both sides of the balance sheet. Bonds are not only a negative book asset but a positive asset and a spawn of Jewish invented fractional reserve lending.
Simply put, if you owe me money, I cannot count that debt as an “asset”. Yet that is what modern banking does. You owe me $100 and then I ledger that debt as an “asset” (and then leverage the leverage into rehypothecation). It’s quite perverted really and God hates usury, and he definitely HATES fractional reserve banking. And he ABHORS rehypothecation. Thats all you need to know.
So, it will all fail when social mood is ready for it to fail. Perhaps today was the first spark that lights a bonfire into the final collapse. We shall see. Today’s very bearish end of day collapse results in the following count below:
