Last month, the Chinese were net sellers of U.S. Treasury Bonds. Of course, the Federal Reserve created money and took up the slack. In recent years, it was assumed the Chinese would buy all of our debt. Instead, they are buying all of our gold, silver, and hard assets with the paper we gave them for trinkets in the past.
Is the U.S. living in a “Fool’s Paradise”? Normally, August is a relatively quiet month in the markets. This year it is different. The market is poised to push interest rates upward and the Fed is now boxed into a corner. Black swans are headed this way and we may see chaos in the markets before long. Keep your life simple and be prepared for any unusual events to come forth. Central planners get creative when their positions are threatened. It is not business as usual.