By Gregory Mannarino TradersChoice.net
Here are the facts. Two MAJOR events are taking place simultaneously right now.
The global debt market is teetering on the edge of an implosion. But how do we know that this is true?
Global bonds are selling off rapidly which is causing an uncontrolled spike in global bond yields, moreover, the relative strength of the dollar continues to increase which is a FEAR TRADE.
We have gotten WARNING AFTER WARNING, and not just from me, but from the World Bank, the International Monetary Fund, the Wall Street Super Bank Goldman Sachs and most recently from Bank of America which said this:
“Fragile Treasury Market Is at Risk of Large Scale Forced Selling
Or Surprise That Leads to Breakdown.”
On an absolute basis the purchasing power of global currencies is in freefall. How do we know that this is true?
In real time we are witnessing the consequences of a full-on currency crisis in the form of punishing, and worsening inflation ON A WORLDWIDE SCALE—with no end in sight.
For many weeks now, this issue of worsening instability in the global debt market has rattled stock markets worldwide. As of late, I have explained very forcefully in my daily MarketReports on YouTube that without direct and immediate intervention by central banks to stabilize the debt market this entire thing would implode.
Yesterday, the MMRI– Mannarino Market Risk Indicator crossed the 300 mark for the first time ever, reflecting that risk in the market has now hit an extreme level.
“Coincidentally” just as the MMRI crossed the 300 threshold, Nick Timiraos, who is also known as “The Fed Whisperer” was floated out to “whisper” that it was highly likely that come December the Federal Reserve would PIVOT from its aggressive raising of rates, AND THE STOCK MARKET RIPPED HIGHER.
Moreover, not only did the stock market surge higher, but the 10-year yield (which is the benchmark) dropped 10 basis points and the relative dollar strength reversed and fell.
But it gets even better!
Right after “Nick” was floated out to “whisper” that come December the Fed would likely pivot, also just by coincidence Fed President Mary Daly made a public statement ALSO stating that come December the Fed may pivot. The result? A BIG rally in the stock market.
Of course… you know that all these events; the repeated warnings, the MMRI crossing 300, the statement made by “Fed Whisperer” Nick being backed up by Fed President Daly are all just coincidences… happening all at the same time.
Understand, that whatever action the Fed or any other central bank may undertake here, ANY attempt to stabilize this grossly HYPER-inflated debt market SUPER-bubble will only cause global inflation to rise even faster.
Moreover, it will not prevent a total and absolute systemic breakdown of the global financial system from occurring—all it will do is exacerbate the problem and push it off—temporarily.