August 30, 2018 – The choice has been made; The US Treasury and Fed are working to keep the US Government in business

I have uploaded a Markets update podcast for August 30, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click to download the podcast here.

-Discussing the US treasury market under traditional circumstances is meaningless when the US Treasury and US Fed are working to keep a lid on the 10-year yield.
-Mainstream media has it wrong; The talking head shills on CNBC cannot rationally discuss what is going on with US treasuries if they refuse to comprehend the conspiracy for the one-world financial dictatorship.
-The alt-financial media has it wrong; Larry Kudlow must be working with the US Treasury to keep a lid on yields. The compression of the 2-yr and 10-yr spread is manufactured and has lost its meaning in being an indicator of future economic weakness.
-The US Fed cannot raise rates higher while the US Treasury is taking the contra-side in the futures market. The Large spec short position continues to grow, while the large commercials (working for government) are going record long. If I owned a large portfolio of Treasuries I would be shorting the futures as well.
-Despite all the tariff talk, trade data still point to widening deficits (that’s because the US consumer keeps spending)
-Inflation is continuing to pick up and the domestic economic data looks fine, yet the US Fed continues its extremely dovish policy. However, the Treasury is keeping the Fed in a straitjacket.
-The asset bubbles and higher prices in stocks and real estate can continue as long as the US 10-year can stay at these depressed levels.
-Bitcoin’s price rise may only provide the needed potential energy to allow it to fall further. The alt-coins could not get above weekly channel resistance. Recall that bitcoin cash was a free coin handed out last year. The original owner cost basis is $0.