K92 Mining Inc. T.KNT

Bond Tantrum and Inflexion

[merlin991]

The bond market is just showing it is not happy. A deluge of debt supplied by the Feds is causing a significant think moment. Can the Feds keep a lid on things? Moreover with M2 rising steeply inflation is being expected and with it initially gold is hit but as this tantrum is recognised as a new 'normal' gold alongside commodities will rise. So just sit back and be patient. Avoid margin and enjoy the ride. By mid March things will look different.

[themason]

Agreed and No the FED can't keep a lid on it and Powell will get the inflation he wants but it will run over him.

[deepthinker63]

Agreed.  Gold responds inversely to real yields.  If my 10 year treasury bond pays 1%, but inflation is 2%, my real yield is -1%.  I'm losing money holding treasuries.  What to do? Buy equities, precious metals, real estate, BTC. Recently, real yields have been getting closer to zero with the rise in treasury yields.  So, there's more incentive to hold treasuries

[themason]

good thought out senerio, thanks

[merlin991]

the only real question is when it becomes apparent that the Feds are undertaking yield control... I say it becomes apparent soon. Probably weeks. The Biden plan may well be passed next week and a deluge of treasuries will come about. The Feds will have to mop it up to bend the curve down. Let's see what transpires and what the Fed speak will be. Just words won't be enough.... $2k gold

[deepthinker63]

I think they did a bit today, or a bit more than usual.  YCC is good for gold.  BTW, I think gold would be over $2000 right now were BTC not siphoning off $. Call me old fashioned, but getting people to pay big money for bits of code that don't perform any function other than "storing value" is perhaps the greatest practical joke of all time.  Satoshi, whoever that is

[merlin991]

BTC slowly spiralling down. It's likely seen its best moves. Let's see the Biden put and YCC in action. KNT will have it's day sooner than later.

[themason]

BTC is far from spiralling down, it is consolidating it's gains for a move to 6 figures. Gold will follow. Inflation is already roaring and there is no putting it back in the cage, this downward move in Gold is temporary. Fed is between a rock and hard place. In other words the FED is dead and the new Quantum financial system will soon be operating thanks to BTC & GOLD.