The biggest news today comes from China, which has announced it will “slow or halt” US Treasury purchases.

This is the so-called NUCLEAR option: the threat by China to stop buying US debt. And it’s an absolute game-changer.

Yields on the 10-Year Treasury spiked on the news as investors dumped Treasuries.

GPC110182 

Source: Blooomberg

This could very well be what bursts the EVERYTHING Bubble.

As I explained in detail in by bestselling book The Everything Bubble: The Endgame For Central Bank Policy, the Fed dealt with the 2008 meltdown by intentionally created a bubble in US Treasuries.

And because these bonds represent the “risk-free” rate of return for the US financial system, when the Fed did this, it created a bubble in EVERYTHING (including stocks).

And now that China is threatening to dump US Treasuries, this could be what bursts the Everything Bubble.

The time to prepare for this is NOW before disaster hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Posted by Phoenix Capital Research