by Andy Hoffman, Miles Franklin:
It’s Friday morning, on what could be a key inflectionary day in monetary history. Which is quite the extraordinary statement, when considering that mere minutes ago, I was, for once, having trouble formulating the day’s principal message. That said, when I looked through my notes – of the past 24 hours’ articles; and comments I jotted down about various topics; two charts caught my eye – which subsequently, catalyzed the revelation of why rates will never be “allowed” to rise. That is, until the bond vigilantes inevitably arrive to overwhelm government “monetizers”; in the same manner that soaring physical gold and silver demand will inevitably – and likely, simultaneously, overwhelm the naked paper shorters.
First, a chart depicting the U.S government’s record monthly outlay in June – of a whopping $429 billion, yielding a $90 billion monthly deficit. Which, I might add, was attributed to “higher subsidy costs for student loans; and to a lesser extent, housing guarantees.”