I didn't really think that thedoors post was off topic at all. It was about the response of the bond market to the "liberation day" tariffs. No one turned up to the bond market auction the following day. Subsequently there was a sharp contraction in long bond values and rise in interest rates, compounded by the rise in government borrowings despite the DOGE cuts. The US debt is still out of control. You will doubtless remember the Australian and the US governments spending a lot in response to covid which was funded by the issue of government bonds at very low interest rates. Those rates will not be repeated when the US has to roll over the rates beginning in August. The bonds will not be paid out, the money cannot be taken from the Repo market; it will have to be paid for by money printing at higher interest rates. At the moment the entire US government receipts only just cover the entitilement expenses of the US government, leaving expenses such as defence having to be covered by borrowing.
More inflation and a lower dollar with higher interest rates. The interest expense on the US bonds at the moment is higher than the defence budget.
Gold to go much higher and more profits for KCN. That has to change the price of the business.
KCN Price at posting:
$2.07 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)