“It Blows My Mind”: 100-Year Austrian Bond With Record Duration 3x Oversubscribed

“It Blows My Mind”: 100-Year Austrian Bond With Record Duration 3x Oversubscribed:

“This new 100 year will be the most price-sensitive bond that exists. In any currency. A one basis-point change in yield will move the price of this Austria 2117 issue by 43 cents, or 0.43 percent.”

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Trump Wants To End The Debt Ceiling, Schumer Agrees

Translated: Trump suggests that there should be no constraint at all, not even the fiscally conservative pretense of the debt ceiling law, over how much debt the government can pile on the backs of future generations of Americans. If Obama can add $10 trillion, we are sure Trump can do “better.”

Trump Wants To End The Debt Ceiling, Schumer Agrees:

If you are wondering what is dragging the dollar down to 32-month lows, perhaps you should add this to the calculus…

Politico reports that President Donald Trump suggested to congressional leaders on Wednesday morning that votes to raise the debt ceiling could be done away with altogether, according to three people familiar with the conversation.

In a meeting with GOP and Democratic leaders, in which Trump sided with the Democrats on a fiscal deal to raise the debt ceiling, the president said he believes the votes are unproductive, those people said.

With Congress set to lift the debt ceiling into December as part of the deal, Trump floated the idea that the next time Congress votes to raise the debt ceiling, it could be the last.

He said conversations should happen over the next three months, according to people in the room.

President Trump has now added his thoughts, telling reporters “we have great respect for the sanctity of the debt ceiling,” as he meets with Emir of Kuwait. “There are a lot of good reasons” to get rid of debt ceiling altogether, Trump says, adding that he discussed it with congressional leaders yesterday, and adding that “there will never be a problem” on the debt ceiling.

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In Latest Reversal, Trump Weighs Tying Debt Limit Increase To Harvey Disaster Aid

In Latest Reversal, Trump Weighs Tying Debt Limit Increase To Harvey Disaster Aid:

In the latest U-Turn, Trump has reportedly given up on the idea of a “clean” debt ceiling bill and is now considering attaching an increase in the debt limit to an initial $6 billion request to Congress for disaster relief funding for Hurricane Harvey, Bloomberg reports.

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This $5 Trillion Time Bomb Will Devastate Americans

This $5 Trillion Time Bomb Will Devastate Americans

H/t reader squodgy:

“They, with California, & NYC are at the cliff edge, thanks to stupid, selfish management.
Taking bets on which one first….oh! what about Maryland?
Either way…the knock on effect will be interesting.”

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Former Fed Chairman Alan Greenspan Ominously Warns That The Biggest Bond Bubble In History Is About To Burst

Former Fed Chairman Alan Greenspan Ominously Warns That The Biggest Bond Bubble In History Is About To Burst:

Are we right on the verge of one of the greatest financial collapses in American history?  I have been repeatedly warning that our ridiculously over-inflated stock market bubble could burst at any time, but former Federal Reserve Chairman Alan Greenspan believes that the bond bubble actually presents an even greater danger.  When you look at the long-term charts, you will see that an epic bond bubble has been growing since the early 1980s, and when it finally collapses the financial carnage is going to be unlike anything we have ever seen before.

Since the last financial crisis, global central banks have purchased trillions of dollars worth of bonds, and this has pushed interest rates to absurdly low levels.  But of course this state of affairs cannot go on indefinitely, and Greenspan is extremely concerned about what will happen when interest rates start going in the other direction…

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We Are Getting Very Close To An Inverted Yield Curve – And If That Happens A Recession Is Essentially Guaranteed

We Are Getting Very Close To An Inverted Yield Curve – And If That Happens A Recession Is Essentially Guaranteed:

If something happens seven times in a row, do you think that there is a pretty good chance that it will happen the eighth time too?  Immediately prior to the last seven recessions, we have seen an inverted yield curve, and it looks like it is about to happen again for the very first time since the last financial crisis.  For those of you that are not familiar with this terminology, when we are talking about a yield curve we are typically talking about the spread between two-year and ten-year U.S. Treasury bond yields.  Normally, long-term rates are higher than short-term rates, but when investors get spooked about the economy this can reverse.  Just before every single recession since 1960 the yield curve has “inverted”, and now we are getting dangerously close to it happening again for the first time in a decade.

On Thursday, the spread between two-year and ten-year Treasuries dropped to just 79 basis points.  According to Business Insider, this is almost the tightest that the yield curve has been since 2007…

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Central Banks Now Own A Third Of The Entire $54 Trillion Global Bond Market

This will surely end ‘well’.

Central Banks Now Own A Third Of The Entire $54 Trillion Global Bond Market:

Central banks own just over a third of the global tradable bond universe of $54 trillion, or roughly $18 trillion. How this amount of debt on bank balance sheets is ever unwound, i.e. sold without crashing the bond market, we don’t know.

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AND NOW: In Watershed Event, Europe Unveils Plan To Securitize Sovereign Debt

This will “surely” end well.

In Watershed Event, Europe Unveils Plan To Securitize Sovereign Debt:

In a watershed event for the European – and global – bond markets, Brussels is pressing for sovereign debt from across the eurozone to be “bundled into a new financial instrument and sold to investors as part of a proposal to strengthen the single currency area.”  Call it securitized sovereign debt.

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21,714 For Every Man, Woman And Child In The World – This Global Debt Bomb Is Ready To Explode

21,714 For Every Man, Woman And Child In The World – This Global Debt Bomb Is Ready To Explode:

According to the International Monetary Fund, global debt has grown to a staggering grand total of 152 trillion dollars.  Other estimates put that figure closer to 200 trillion dollars, but for the purposes of this article let’s use the more conservative number.  If you take 152 trillion dollars and divide it by the seven billion people living on the planet, you get $21,714, which would be the share of that debt for every man, woman and child in the world if it was divided up equally.

So if you have a family of four, your family’s share of the global debt load would be $86,856.

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The Great Economic Collapse (Video)

Mar 2, 2017

Silver and gold was slammed today. Initial jobless claims is at its lowest point in 44 years. BCBG filed bankruptcy. The art bubble is popping. CalPers threatens to slash pension benefits. Trump sent a message to every American that the economy is collapsing. Rickards, Stockman say Trump will not be able to avoid the debt bomb that is ready to go off. The Fed has set the stage to bring down the economy. BofA has analyzed the market and makes a prediction that the economy will collapse in the second half of this year.

H/t reader squodgy.

*****

‘The Great Economic Collapse’ coming to a country near you, …

… as planned by …

And it will happen exactly, when these bastards press this button …

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