BATTLEFORWORLD – February 9, 2018: When it’s time for the US government to address new budgets or budget shortfalls, the US Treasury has to issue more bonds on the stock market for investors to buy, and from which they create more debt to deceptively fix US budget problems. On the regular stock market investors find it to be more profitable than buying bonds. And so many do not want to invest in more US bonds. To fix this problem, the stock market hidden hands goes into leverage mode and panic the stock market to force investors to buy US treasury bonds. When goals are met, the hidden hands are signaled to recover the stock market and continue. According to some, Asian countries are often forced by these stock market tantrums to buy more US bonds.
When stock market experts appear on television or write editorials they do not speak in layman’s terms, but rather cryptic stock market language in order to avoid pressure from others.
And also read the posting: The Reason Behind The United States Mischief With North Korea – America-China Financial Wars
Analysts Predict US Stocks to Remain ‘Choppy’ as Traders Correct Distortions
SPUTNIKNEWS – February: Values of the US stock market are likely to fluctuate sharply for some time before finding a new level of stability as corrections are made to inflated prices and hedging interest rate risk, analysts told Sputnik.
US debt up, up, up…
YAHOO – February 9, 2018: As part of a pledge to “Make America Great Again,” President Donald Trump and Republican lawmakers are pursuing aggressive economic stimulus while slashing taxes at the same time. And the result, budget analysts are saying, is likely to be swelling debts and deficits for the world’s largest borrower.
William Dudley, the outgoing president of the Federal Reserve Bank of New York, said Thursday that such ballooning deficits could drive up yields on sovereign bonds, and thus raise borrowing costs for the federal government.
STOCKS BOUNCE IN HELL WEEK
Trump Signs Spending Bill to End Brief Government Shutdown
SPUTNIKNEWS – February 9, 2018: The new law that was approved by both chambers of the US Congress ends the brief federal government shutdown and removes spending caps for military and non-defense spending until 2019. 71 senators voted in favor of the bill and 28 opposed it, hours after the government shut down at midnight on Thursday when the budget funding expired.
US President Donald Trump took to Twitter on Friday to announce that he has signed the spending bill into law. The move comes shortly after the US House of Representatives and the Senate passed the bill.
The legislation signed by Trump is a continuing resolution to keep the government funded for six more weeks, but it also raises sequestration budget caps for fiscal years 2018 and 2019 by $296 billion, suspends the debt ceiling until March 2019. (BATTLEFORWORLD: So they are going to panic the stock market again and again in order to sell more bonds and create more debt. Google to find out the countries holding the highest amount in US bonds. To hide the Ponzi scheme the term “US bonds” is masked by the word “debt”. In the Youtube video below Rand Paul is uneasy because both the Republicans and Democrats are avoiding the US debt problem. And someday they will have to let the US economy collapse and maybe they will blame the crash from the reliance on computer artificial intelligence. )
America again owes more money to China than any other nation
CNN – February 9, 2018: China’s vast holdings of U.S. government debt jumped $44 billion to $1.15 trillion in June, according to U.S. Treasury Department data. That took China above Japan, which offloaded $21 billion in U.S. bonds in the month. China was dumping U.S. Treasuries in 2016 so that it could buy its own currency – the yuan – to counter downward pressure caused by a huge outflow of cash from its economy.
U.S. Government Shuts Down Again As Congress Fails To Approve Budget Deal
CNN – February 9, 2018: Sen. Rand Paul (R-KY) defends his stance of the proposed government budget. (BATTLEFORWORLD: Rand Paul is highlighting the deceptive fix, that’s what the Republicans accused former President Obama of and yet they themselves are doing the same thing under President Trump.)
Stocks Shake Again
CNNMONEY – February 8, 2018: Worries about the bond market as stocks have also been on a tear because they have been one of the only investments with a decent return. U.S. Treasury bond yields have been so low that many stock dividends are paying better. (BATTLEFORWORLD: That means the US Treasury was unable to sell enough bonds which they use to create more debt to cover the budget. And that means more stock market panicking drama tied to foreign policy aggression.)
But stocks are a higher-risk investment than bonds, which are backed by the United States Treasury. If bond yields start to rise, investors will want to take some of their money out of stocks and put it into safer bonds. (BATTLEFORWORLD: Forcing investors to buy U.S. Treasury bonds. Too many are staying in stocks so you have to panic the stocks to force them into bonds.)
Sure enough, bond yields hit a four-year high Friday. (They pulled back a bit on Monday.) The recent tax bill has forced the Treasury to borrow more money, which will put more bonds into play. A supply glut could devalue bonds. Prices and yields move in opposite directions, and bond buyers will want a higher yield (and lower price) to make it worth their investment.
Dow falls 1032 points, now down 10% from record; S&P 500 drops 3.7% to new low
CNBC – February 8, 2018: Stocks fell sharply on Thursday as strong earnings and economic data were not enough to quell jitters from higher interest rates on Wall Street.
“The big news revolves around bond yields continuing their recent ascent,” said Mark Newton. (BATTLEFORWORLD: A reference to US Treasury Bond being low – unable to ascent.) And the rise in yields and sharp moves in obscure volatility funds that use leverage (BATTLEFORWORLD: i.e. panic) have been cited by traders as reasons for the market’s recent pullback and volatility spike.
The rise in yields and sharp moves in obscure volatility funds that use leverage have been cited by traders as reasons for the market’s recent pullback and volatility spike.
Senate Leaders Reach Budget Deal to Raise Spending Over Two Years
NYTIMES – February 8, 2018: Senate leaders struck a far-reaching bipartisan agreement on Wednesday that would add hundreds of billions of dollars to military and domestic programs over the next two years while raising the federal debt limit, moving to end the cycle of fiscal showdowns that have roiled the Capitol.