Predicting The October Collapse

Hard to nail down details on the matter, but several economic news emails that visited my Inbox tell portions of the collective dire expectations for October 2018. (The federal fiscal year 2019 begins October 1st.) The silver lining in any collapse in October is that it will be just a few weeks before the 2018 U.S. national elections in November, and thus help Democrats. Silver lining notwithstanding, any such collapse will hurt everyone - worldwide - and likely last a really long time.

The gist of the matter is that the government bond markets are all bubbles (the junk bond market is also a bubble, but the problem is smaller and thus a side issue). There are roughly a TRILLION dollars worth of U.S. ten-year Treasury bonds coming due for repayment on October 15th. Congress is ignoring the matter, and Emperor Trump is busy tweeting inanities. A default in these promissory notes will 'wreak havoc' across the Stock Market Casino, this time much worse than the G.O.P. Economic Meltdown of 2008 – and without the team of Barack Obama and Ben Bernanke at the helm to prevent disaster.

But that is not quite the half of it. Also in October, E.C.U. treasury bonds of a further TRILLION dollars will come due. In China, there are another TRILLION dollars of local government and corporate 5- and 10-year bonds coming due in 2018-19 - starting in October.

Web financial analysts are using terms like 'tsunami' and 'Armageddon' for any bond selloff or bond default cycle.

And the situation will be made even worse if the artificially-inflated cryptocurrency market collapses first.
Copyright 2018 by G.E. Nordell, all rights reserved