Fake News by Bloomberg: Creditors Dumping U.S. Treasuries Because of Trump

Bloomberg is out with a fictional piece this evening — asserting that creditors are selling treasuries because of Trump.

(adjusts microphone)

WRONG!

Anyone mildly versed in capital markets knows that when Trump was elected President on 11/8/16, equity markets took off — which also caused a rout in the bond market. The reason for this is because investors viewed Trump as a weapon of inflation — someone who’d cut taxes, regulations and spur a massive fiscal stimulus budget. In no way was the sell off in bonds a revolt by foreign governments because they were afraid of Trump. Think of the markets like you would a see-saw: stocks up, bonds down and vice versa.

It’s also worth mentioning that our so called ‘creditors’ are small time holders of treasuries, in comparison to our own Federal Reserve — who own upwards of $2t in U.S. debt.

As per the BBG retard level thinking piece.

In the age of Trump, America’s biggest foreign creditors are suddenly having second thoughts about financing the U.S. government.

In Japan, the largest holder of Treasuries, investors culled their stakes in December by the most in almost four years, the Ministry of Finance’s most recent figures show. What’s striking is the selling has persisted at a time when going abroad has rarely been so attractive. And it’s not just the Japanese. Across the world, foreigners are pulling back from U.S. debt like never before.

Classic care-trolling. The U.S. can borrow as much as it likes. The author of the article is either completely ignorant on matters of finance or purposefully malicious with his editorial slant.

From Tokyo to Beijing and London, the consensus is clear: few overseas investors want to step into the $13.9 trillion U.S. Treasury market right now. Whether it’s the prospect of bigger deficits and more inflation under President Donald Trump or higher interest rates from the Federal Reserve, the world’s safest debt market seems less of a sure thing — particularly after the upswing in yields since November. And then there is Trump’s penchant for saber rattling, which has made staying home that much easier.

Nobody is saying that foreigners will abandon Treasuries altogether. After all, they still hold $5.94 trillion, or roughly 43 percent of the U.S. government debt market. (Though that’s down from 56 percent in 2008.) A significant drawdown can harm major holders like Japan and China as much as it does the U.S.

It’s down from 56% because the god damned Federal Reserve has been buying it all. This is a prime example of intentionally misleading the reader.

Nevertheless, any consistent drop-off in foreign demand could have lasting consequences on America’s ability to finance itself cheaply, particularly in light of Trump’s ambitious plans to boost infrastructure spending, cut taxes and put “America First.” The president has singled out Japan and China, the two biggest overseas creditors, as well as Germany, for devaluing their currencies to gain an unfair advantage in trade.

In December, Japanese investors reduced their investments in U.S. debt by 2.39 trillion yen ($21.3 billion) after a smaller pullback in November. While only a fraction of Japan’s $1.1 trillion of holdings, they were first the back-to-back declines since the start of 2014. China, which owns just over $1 trillion of Treasuries, has been selling since May. Its holdings are at a seven-year low.

Notice how the other glosses over the fact that the former largest holder of U.S. debt, China, has been culling its treasury holdings for 7 years — all of which done under the Obama regime? The Chinese have been selling for quite some time, as their economy slows and their currency drops to 8 year lows — all due to a larger and more serious matter regarding capital flight.

And investors like Kunibe can ill-afford more losses. Last quarter, Japanese investors who hedged all their dollar exposure in Treasuries suffered a 4.7 percent loss — the biggest in at least three decades, data from Bank of America showed. The same thing happened in Europe, where record currency-hedged losses also stung euro-based buyers.

“It was a deer in the headlights moment,” said Zoltan Pozsar, a research analyst at Credit Suisse.

Combined with the unpredictability of Trump’s tweet storms, interest-rate increases in the U.S. could further sap overseas demand. Mark Dowding, who helps oversees about $50 billion as co-head of investment-grade debt at BlueBay Asset Management in London, says the firm has already moved to insulate itself from further losses due to higher rates.

What’s more, central bankers in Japan and Europe are still experimenting with monetary policies that may benefit bond investors locally.

Right now, it’s just “much easier to stay home than go abroad,” said Shyam Rajan, Bank of America’s head of U.S. rates strategy.

What in the actual fuck are they talking about? Rates are near ALL-TIME record lows. America is the primary market for debt issuance — the envy of the world and they make it seem like we’re struggling to raise capital to fund our over bloated and ridiculous surplus spending.

Here are the top holders of U.S. debt.

In other words, our own Federal Reserve owns more US debt than both Japan and China combined — at $2.4t. Why wasn’t that noted in this absurd article cobbled together, lazily, by a Brian Chappatta?

Bonds topped in the summer of 2016. Naturally, asset allocators responded in kind to record prices and sold some to fund whatever projects they deemed more important to their national interests. The worrisome tone about the Japanese central bank selling treasuries — due to Trump — isn’t credible and is without merit, especially when considering Japan is beset with the largest debt/gdp burden of any developed nation in the world — at 230%.

Plus, let’s not forget that the BOJ is currently undergoing a gargantuan perversion of finance — purchasing their own debt and equity ETFs to the tune of $700+ billion per annum. Additionally, the BOJ is the largest owner of equity ETFs in the country — purely and blatantly manipulating every single aspect of their control economy. To chalk up the BOJ’s nonsensical and unconventional monetary actions to Trump winning the election is both stupid and unnecessarily divisive. Then again, it’s Bloomberg, so we should come to expect this sordid brand of yellow journalism.

Since the beginning of the new year, the industrial metals and mining sector has been on fire — led by names in my portfolio: $HBM, $TECK, $VEDL (60% of my 140% long-only portfolio). For the sake of clarity and brevity, I am going to get straight to the point.

We’re not done going higher — algorithmically and based upon valuation. Let me explain.

Based off seasonal trends, now is the time to get long the sector — through April.

The short term timing oscillator in Exodus is not overbought. As a point in fact, it leans towards oversold.

Valuation wise, the industry is trading cheaper now than in any time the past decade.

Stock to buy.

Biggest by cap: $BBL, $EC, TECK, $VEDL, $TRQ, $CNX

Top rated by fundamentals: $SXCP, $AHGP, $MTRN, $SWC, $GSM, $ATI

Top rated by technicals: $HBM, $EC, $TROX, $SXCP, $VEDL, $TECK

Highest short interest: $ATI, $CNX, $CLD, $SWC, $TROX, $SXC

Naturally, I favor zinc.

We’re living in an era of perpetual fear. To think that an undetonated American bomb, from world war 2, could cause 70-75k people to evacuated a city is unbelievable to me.

Granted, the thing weighed 275lbs and could shatter a few city streets, but it wasn’t a damned nuclear device.

Such pussies.

Source: Bloomberg

Authorities in the northern Greek city of Thessaloniki say an unexploded World War II bomb found under a gas station was defused Sunday and safely taken to an army firing range outside the city, paving the way for over 70,000 people to return home.

The roads in western Thessaloniki and the suburb of Kordelio, where most of those forced to evacuate earlier Sunday came from, have reopened. Authorities had shut down a 1.9 kilometer (1.2-mile) radius for experts to safely work on the bomb.

The U.S.-made 275-pound (125-kilogram) bomb was “badly corroded, but its detonation mechanism was still in very good condition,” said Army spokesman Col. Nikos Fanios.

The bomb will be either detonated or dismantled at the firing range, Fanios said. He added that similar bombs had been found in previous years near the Macedonia Airport east of the city, but, with the area being mostly open fields, no large scale evacuation had been deemed necessary.

Sunday’s evacuation started at 7 a.m., with police went house-to-house ringing bells and knocking on doors to remind people to leave.

Bomb disposal experts started work at 11.30 a.m., 90 minutes later than planned, but defused the bomb in only 30 minutes, Central Macedonia governor Apostolos Tzizikostas announced.

Calling the operation “a total success,” he said it was the largest peacetime population evacuation in Greece and estimated it involved 70,000 people.

Many people left the area in their cars, but some were bused to schools and sports halls elsewhere in the city.

“We heard on TV that, if the bomb explodes, it will be like a strong earthquake,” Michalis Papanos, 71, told The Associated Press as he and his wife, Yiannoula, headed out of their home.

Alexander Bogdani and his wife, Anna Bokonozi, left on foot, pushing a stroller with their toddler daughter.

“We are afraid for the child,” Bogdani said.

The city’s main bus station was shut down, trains in the area were halted and churches canceled Sunday services. The city also booked a 175-room hotel where people with limited mobility were taken on Saturday.

Among the evacuees were 450 refugees staying at a former factory who were bused to visit the city’s archaeological museum.

One resident recalled the day the bomb fell.

“The bombing was done by English and American planes on Sept. 17, 1944. It was Sunday lunchtime,” said Giorgos Gerasimou, 86, whose home is half a mile away from the bomb site.

He said the Allies were targeting local German rail facilities. He remembers the day clearly because one of his 10 -year-old friends was killed in the bombing.

Nazi Germany occupied Greece from 1941 until October 1944.

Amazing.

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Without flaw.

Here are all recent occurrences of our 12 mo hybrid oversold signal — which, essentially, measures the stress points of the market and determines whether they are notable or not.

We’re working on some next level stuff now and I don’t want to get anyone too excited, because I’m not sure it’s gonna work yet. We’re still in the discovery phase. I’ve dubbed it, literally, The Holy Grail, which is a set of algorithms used to find momentum breakouts on a micro level — ideally designed to find big breakouts in whole sectors that can last for up to 7 weeks.

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Here was our recent signal in $XLE, which prompted me to get long oil.

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Hilarious stuff. The chimps over at CNN must have a keyword trigger for whenever a guest says the words ‘CNN Fake News’ — which prompts an instant audio cut. After all, calling a CNN journalist ‘fake news’ is no different than calling a black person the ‘N word.’

Shills.

Speaking of CNN fake news.

While it’s true, the market has been a joy to invest in so far. But like in the book animal farm, where all the animals were equal, some were more equal than others — as is the case now you filthy pigs.

For the day, I gained more than 4% — fucking spearheaded by gainz in $HBM, $TECK and $URG. For the year, I’m now up by 14%, once again asserting a Trumponion dominance over you cuckzoids out there protesting higher paying jobs and airport security.

Everything about this market is perfect. I know this sounds crazy from the guy who warned of ‘imminent apocalypse’ during 2016. But the facts on the ground have changed. Right now, quite honestly, there’s literally nothing that could stop the market from achieving supernatural like performance.

You have to understand, “The Fly” is here to win, whether it be Presidential elections, culture wars or stock picking contests. You might attempt to compete and play yourselves into a stupor of sheer idiocy. But you’d be better off joining us in the halls of Exodus — loitering about the Pelican Room — and breathing in the aromas of winship, as ancient as the Order of the Cinncinatus.

Good things are about to happen. You’d be wise to stay the course and heed my advice, for I know exactly what I’m doing — almost at all times.

The globalist shills at Fitch have issued a warming due to Trump’s proposed anti globalist policies.

Per chance, do you notice a county missing from the list?

Anyone?

How about the United States?

Fitch is warning that Trump’s policies will have a profound and deleterious affect on counties who’ve been raping the United States over the past 30 years.

They do, however, Reserve some hope that The Donald will simmer down and listen to his CIA overlords, like Obama, and do whatever he is told.

“The Trump administration represents a risk to international economic conditions and global sovereign credit fundamentals,” the agency said in a statement. “U.S. policy predictability has diminished, with established international communication channels and relationship norms being set aside and raising the prospect of sudden, unanticipated changes in U.S. policies with potential global implications.”

The most serious implications would involve credit downgrades for sovereign debt.

Fitch does not mention the U.S. specifically being subject to a reduced rating, but listed several of its trading partners that could take a hit should negative conditions emerge from Trump’s saber-rattling on international trade agreements and immigration flows.

Among those that could face the most serious impact are Canada, Germany, China, Japan and Mexico, all of which have been mentioned by Trump or his advisors as benefiting from unfair trade pacts. Fitch warned that as the rhetoric escalates, “the list is unlikely to end there.”

“One interpretation of current events is that, after an early flurry of disruptive change to establish a fundamental reorientation of policy direction and intent, the administration will settle in, embracing a consistent business- and trade-friendly framework that leverages these aspects of its economic program, with favourable international spill-overs,” Fitch’s analysts said.

“In short, a lot can change, but the aggressive tone of some administration rhetoric does not portend an easy period of negotiation ahead, nor does it suggest there is much scope for compromise,” the analysts wrote.

The warning comes a day after Fitch said the amount of countries carrying AAA-rated debt has fallen to its lowest level in 14 years. As a percentage of all nations with rated sovereign debt, that is the worst reading ever.

The Fitch warning also includes countries that enjoy investment from U.S. companies and in turn ship goods back to the United States. That list is “potentially long” and includes Canada, the U.K., Netherlands, Mexico, Germany, China and Brazil.

Nevertheless, stocks are at record highs.

After Trump dominated the election, defeating Hillary Clinton by -3 million votes, a Queens museum, with the help of Shia Labeouf launched a project to install a camera outside the museum, so that leftard could conjoin with one another and sing the praises of their mental disorder — called liberalism.

The results of this project have been nothing less than disastrous.

As a matter of coincidence, I’ve been keeping close tabs on this projects — which became the obsession of the cretins on the 4Chan pol message boards. Instead of a bunch of liberals gathering around to smoke weed and decry the evils of Trump, redpillers stormed the camera, en masse, to tell leftards how they felt.

In other words, the project that was designed to unite leftists to take down Trump ended up being a lightening rod for a sundry of Trump supporters. As such, the museum decided to shut it down — giving final victory to the Hitler fanatics over at 4Chan.

Here are some hi and lo lights.

A Queens museum said Friday it is shuttering its controversial anti-President Trump exhibit dreamed up by actor Shia LaBeouf, conceding that the installation has become a “flashpoint for violence,” The Post has learned.

A webcam mounted on a wall outside Astoria’s Museum of the Moving Image — titled “HE WILL NOT DIVIDE US” — began filming on Inauguration Day, and was to be in place 24/7, for the duration of Trump’s presidency.

But clashes between pro- and anti-Trump forces were too much for museum brass to justify the art project.

“The installation created a serious and ongoing public safety hazard for the museum, its visitors, its staff, local residents and businesses,” the museum said in a statement.

“While the installation began constructively, it deteriorated markedly after one of the artists was arrested at the site of the installation and ultimately necessitated this action.”

The statement said the controversy led to “numerous arrests” and prompted around-the-clock police patrols.

Those busted included LaBeouf, who was put in cuffs at a late January scuffle at the oddball installation.

Neighbors complained about noisy visitors loitering on their porches in the early morning hours, urinating and smoking marijuana, the local community board said.

Following a deluge of complaints, the 114th Precinct has set up a 24-hour patrol presence outside the museum, the NYPD said.

Community leaders and neighbors said something had to be done.

“Why don’t they put the cam inside the museum? That has been raised by some individuals,” said Community Board 1 District Manager Florence Koulouris.

“The concern is the quality of life. There’s action going on during unacceptable hours. The museum needs to find a way to make the project better for everyone involved,” she said.

Meanwhile, a prominent museum board trustee had slammed the project as misguided, and said it was authorized without her input.

“I was not told. I don’t really know how it happened. I was upset when I found out about it,” said Claire Shulman, a former Queens borough president.

“It was a mistake to do it. It’s unsafe for a public institution to do a project like this,” said Shulman, a Democrat.

“It’s inappropriate for that location. It’s a city building. It’s a city institution. It’s one of the finest institutions in the city.”

I Mctold you “The Fly” was back on his fucking game. The infrastructure play is where it’s at. But more importantly, Trump had a telephone call with the President of China yesterday and didn’t hang up on him, instead ceding to the one China policy. As a result, markets can’t stop jerking off to this news — buoying the shares of anything China related — including BASE METALS.

You know how I feel about $CLF (buy it), $UEC and $URG. But do you really know how I feel about zinc? I fucking love the stuff. I sprinkle it on my cereal every morning and pray to the Gods, both olde and the new, for deliverance against the many evils that stand in my way of unfettered greatness.

With 60% of my 140% exposure to this market, I am long $HBM, $TECK and $VEDL — due to their exposure to zinc — a key element (Zn) in galvanizing steel.

Also, my new oil position is higher by 3% today. I’d tell you the ticker symbol, but I promised a member of Exodus the other day that I wouldn’t. Join us in the great halls of distinguished gentlemen and I promise you, it’ll be worth your minor investment in House Fly.

My year to date gains are now in the magnitude of +13%.

Look at this shit.

The 'Dear White People' show writer tweeted this on election night. Maybe this $NFLX show is racist after all? pic.twitter.com/QP9WuPjmtF

— The_Real_Fly (@The_Real_Fly) February 10, 2017

So the writer of a new $NFLX show said some racist stuff and then went on to create a racist show, dubbed ‘Dear White People.’ The response by the conservatards has been to cancel their Netflix subscriptions, like fucking asshats, because MUH their feelings were hurt. I’d rather shoot myself out from a carnival cannon into a brick wall than cancel my access to House of Cards, Peaky Blinders, Luther and all of the other shit that I watch on that glorious network.

On the left, they’re fucking boycotting anything and anyone that even looked at Trump in a kind way — from Ivanka’s entire clothing line to Uber to Tesla and now Under Armour. For the love of God, even the most likable person in the world, The Rock, entered the arena filled with leftist retards to decry the supportive comments by the CEO of $UAA about Trump as being ‘divisive and lacking perspective.’

The madness has to stop, fuckers. Vote with your ballots, not your wallets. After all, are you going to carry around lists of ‘politically friendly’ companies with you at all times? The next time you visit a restaurant, will you interrogate the head Chef and staff to see if their views on abortion align with yours?

Trump won. Hillary lost. Get over it.

Some people refuse to watch Woody Allen movies due to his unsavory relationship with his adopted daughter. Understand something, he’s most likely a monster, a reprehensible human being — but I still love his movies. Heck, if I were to hold my moral compass up before watching a Hollywood movie, a place littered with degenerates, I’d find myself without any form of digital entertainment. Fuck that.

How about music? Do you believe the losers you’re listening to actually share your values? WHO GIVES A SHIT?

Life is fleeting and unusual. Narratives change, as do hot button political views. I know for a fact many of you supported the Bush wars, but now with the benefit of hindsight know they were complete horseshit. On the other hand, I’m sure scores of you supported Obamacare when it was first announced, but have since soured on it after finding out it actually sucked.

I like what I like and I do not punish myself — just because the CEO of a company has a different opinion about the events taking place on the ground in Nepal. I come from a very diverse background. My step father, whom I love dearly, is a brilliant math scholar — born Morrocan and is Muslim. My wife and my in laws are of South American heritage. My Mother’s side is Italian and my Father’s parents came to America — fresh from the potato fields of Ireland. Everyone has different views, democratards, replictards, apolitcaltards; but we all get along — because politics isn’t everything.

Mostly, it’s theatre for the intrigued.