US BONDS CURRENTLY HAVE NO UNDERLYING
By Mauro Marturano
The yield tells us so. It keeps rising.
Until July, they had the Japanese carry trade as their underlying. An extraordinary disgrace, in my view, and one understood by the few people who actually grasp these mechanisms. A bunch of sellouts: the Japanese bankers who came and went, selling out their own people. A Japanese population that was absolutely ignorant and allowed all of this to happen.
In July, it became clear to me that the underlying supporting US debt, embodied by the Japanese citizen, was disappearing (I’m copying below the text I wrote at the time). YUTO’s words (from a fictional account) seemed to have been thrown out there at random. But I was clear about the direction things were heading. And when you have a clear sense of the direction, you can tell whether the words you are reading make sense. Or not?
What we are experiencing is an absolutely transitional situation. In one month, the 10-year T-Bond yield has risen by 1%, and the run-up shows no sign of stopping, even though the US has decided to buy back its own debt.
The buyback isn’t enough, my friends, boys and girls, ostriches and ostrichesses 😂.
That the buyback isn’t enough is not something I’m saying on my own, even though I am saying it 😂. The market is telling us so: it continues to push the yield higher.
We are in a transitional phase because there is no real underlying supporting US debt. The US buying back its own debt is merely a palliative.
We need different idiots to serve as the underlying.
A “black swan” is urgently needed. It won’t be long now.
Don’t talk to me about black swans, or black ducks. Talk to me—and talk—about the underlying, talk about guarantees, talk about new idiots.
Start speaking properly, because I, the Word 😂, have already shared it with you properly.
YUTO WARNED US 😁
“The measures the Bank of Japan is preparing will affect the lives of millions of people. To the citizens of Western countries, I offer my apologies. This is not a personal affront. May God bless you.”
On July 6, someone posted this strange message from this anonymous account. Strange to those who understand little about life, about the rules of life.
I have spent a great deal of time over these years trying to explain to you the main rules of life. I don’t know whether many of you have understood them, but I am sure that some of you have. And that is a tremendous achievement and a tremendous source of pride for me.
There is something insidious in Yuto’s message.
When Yuto spoke of the “measures the BOJ was preparing,” he was actually referring to the fact that the BOJ had decided to do nothing anymore 😂.
In other words, if during all these years the BOJ had been completely compliant 😂 with Washington’s wishes, it was now stopping its efforts. It was stopping betraying its own citizens (doing it in the 95th minute, with the others already leading 8–0—what value does that have?).
Yuto warned us about what I called yesterday the passing of the baton between unsuspecting Japanese citizens and unsuspecting European citizens (that is who Yuto is referring to when he offers his apologies, being a good Japanese man 😂).
Yuto also says that this is not a personal affront: how could one disagree!
The Japanese citizen doesn’t understand a damn thing about these mechanisms and is himself a victim of his own immense ignorance.
The Japanese citizen has already fallen from the tower. A tower where only a very few people now remain. And surely we Europeans are still on this virtual tower. But we are definitely the next ones to fall.
As of today, however much we may get angry about rising prices, we are still living inside a bubble of prosperity and services that will certainly disappear.
And it will not disappear because I am negative and have to see everything in black. It will disappear because this is the epilogue of fiat currencies. And we are at the epilogue of the yen and the euro.
Not yet at the epilogue of the dollar, because, thanks to military power—or, more accurately, the presumption of military power—and thanks to the complete submission of many politicians (including all of the European ones), the dollar’s lobbies are still able to extract value from other peoples.
And as long as this can continue, the dollar will not fall.