Commentary on &quot;It&#039;s Over&quot;

Originally posted by 1ronnie: ↑

The truth is that when volatility spikes like this and there are unprecedented events, a lot of relationships break down.
So China selling US Treasuries could definitely be one big reason. But I think it is a mix of reasons all coming together.

Others are:
- Raising cash to meet margin calls
- Deleveraging because they are worried about more volatility
- Holding onto stocks and selling bonds instead
- The more complex issues are structured products and funds. There are quite a few funds that have structured trades that break down in times of high volatility. They create forced selling of bonds. These are basis trades, relative value trades, and risk parity trades.

https://x.com/AyeshaTariq/status/1909898110589084146

Stocks are getting cheaper, but they are still not even close to cheap...
https://x.com/MichaelMOTTCM/status/1909216392311697492

@Taurisk may like this note from ancient economic history.

The Trump World Order has Black Sea, Hellenic, Roman, & Viking roots. US has reverted to the ancient Sea Armies' Imperial taxes tributa and vectigalia: Tribute (protection money & weapons & energy sales) and Market Tolls (tariffs).
US also wants the Imperial tax of portorium: Port & canal duties and ship levies (Panama Canal ports and $1.5 million on Chinese-built ship ownership). It's not often my 5 year detour into the 11th century helps me understand current events so clearly, but here we are. If you want to read 4,000 years of Sea Army conquests distilled to 1066, you might like my earlier book.
(Order from Amazon local to you for best price and shipping.) Carmen Widonis - The First History of the Norman Conquest has my original transcription and translation from the Latin, with a cracking account of the Battle of Hastings and a new interpretation of the 1066 Siege of London.
https://x.com/Kathleen_Tyson_/status/1909651850665541878

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@1ronnie I have been thinking this for some time, that somewhere in the dim mind of Trump are bits of historical facts, not clearly understood. In my mind, I keep referring to a book I read, some time ago, by a French author (Voltaire: 'The Age of Louis XIV') who was also a financial advisor of sorts to the 'Sun' King, and who devoted numerous examples and long passages to the wisdom of the Dutch, who traded within their country without any taxes 'per city' as they did in France, and "look what a prosperous country it had become", but it fell on deaf ears. In the France of that time, you had to pay import duty within France on any goods from outside certain city precincts. Louis XIV, incidentally built Versailles at great cost, and the debts incurred for Versailles were still being paid off by the time of the French Revolution, but he organised all his opposition around him in that wonderful castle. His nobles had to spend most of their time 'supervised' and 'entertained' so they couldn't cause trouble. Remind you of someone?
I'll take a look at that book of yours - am in the process of diminishing my books . . . . have too many, most just read once.
Sorry about the long reply !
Taurisk