Money drain: Fears are rising that the global financial system will seize up
When the Bank of England was forced to intervene in the UK bond market last month to avert a foreign exchange and bond market crisis it could have been seen as an event unique to the UK. Could it have been, however, a symptom of a wider problem and a foretaste of future crises to come?
The sea change in bond market conditions this year could, as we saw in the UK, force institutions to dump high-quality collateral (like Treasury securities) to meet margin calls in other markets that are equally, if not even more, volatile.
The volatility in global bond, equity, currency and property markets could trigger – or be triggering – margin calls that flow back to the bond markets.
The liquidity issues in bond markets that traders are complaining about – and the demonstration provided by the UK experience – point to markets, and financial systems, that are fragile and vulnerable.
The Fed and other central banks’ aspirations for a smooth reversal from QE to QT to combat raging inflation rates may not, as the BoE discovered so brutally, be as easy to execute as they hoped or planned.
I think we are about to see a global financial crisis and it has been brought about on purpose. Organisations such as the World Economic Forum are pushing for a Global Government and Global Digital Currency (which gives greater control to.....). The best way toward a Digital Global System is to crash the financial system already in place.
What we are witnessing is the purposeful destruction of the current system to make way for the Great Reset.
This is just my opinion.
PS: If you enjoy my content, I will think of you while drinking my coffee. –
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