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The top of this cycle for ASX200, cash is king ?


kahuna1

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Yes but lies (alternative facts, junk science, conspiracy theories etc etc) have become an acceptable diversion to a more rational political discourse - life’s too confronting and complicated and Trump is entertaining and that’s what they want
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In another nail in the coffin of the US financial system, the SEC has given the go ahead for the biggest bunch of financial thieves and liars on the planet to open their own stock exchange.

From Wall Street on Parade

Members Exchange (MEMX), a brand new stock exchange, has announced that it will begin live trading of select stocks for the first time on September 21 with a full phase-in on September 29.

 

Criminal histories are, apparently, no barrier to running a stock exchange in the United States to the deeply conflicted way of thinking of the Securities and Exchange Commission (SEC), which issued its approval to operate the exchange on May 5.

 

Investors in the new stock exchange are some of the most serially-charged Wall Street banks, including JPMorgan, Goldman Sachs, and UBS, along with the hedge fund, Citadel Securities. BlackRock, which is up to its neck in the Federal Reserve’s deeply conflicted bailout programs, is also an investor, as is the high-frequency trading firm, Virtu Financial, and others.

 

Should make it much easier for them to manipulate the market to their own ends.

Sheesh, the rich get richer, screw the rest,

Mick

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Do you think the ASX' days are numbered as a result?

 

ISX is having a good go at bringing them to account.

 

If a complete legislative restructuring of the ASX with proper power transfers doesn't happen then an alternative market isn't necessarily a bad thing.

 

Monetary policy observers will have seen the power transfer away from the Fed and other central banks. Its not inconceivable for such things to happen in the stock markets.

 

Its as if the power base of every miscreant in the world that have derived all their power and influence from the market are being put upon for some reason.

It is the end of the neocon and free market doctrine. Or capitalism as we know it.

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Another salvo in the undeclared US/Sino war.

From Zero hedge

Ever since the early stages of the US-China trade/tech/virus/cold war four years ago, there were frequent rumors - which eventually gave way to increasingly legitimate chatter - that China was looking to go full "nuclear option" by selling some or all of its $1+ trillion of US Treasury securities, which incidentally has not been too far off the mark: as the chart below shows, after peaking in 2013, Chinese holdings of US debt have been steadily declining (and not so steadily in the aftermath of the Chinese devaluation), and are currently near the lowest level in 8 years.

In any case, while Beijing has been gradually reducing its Treasury holdings it has never shocked the market with a major liquidation; and yet this ultimate threat has now found its way into China's premier state-run English language news source Global Times.

 

And while not official policy, the fact that GT on Thursday has made a US Treasury dump front page news, citing top "state-linked experts", is cause for concern (and certainly suggests that the Fed may soon have to step in with another massive QE to purchase whatever China has to sell).

he Beijing-backed publication writes today that "China may gradually reduce its holdings of US Treasury bonds to about $800 billion from the current level of more than $1 trillion, as the ballooning US federal deficit increases default risks and the Trump administration continues its blistering attack on China" citing unnamed experts.

 

The facts are familiar to anyone who has been following the Sino-US trade war amid the US descent into fiscal hell, which as we noted earlier this week will result in the US budget deficit hitting a record $3.3 trillion and a record 107% debt/GDP in just 2-3 years: as the Global Times reviews, in the first six months of this year alone the world's second-largest holder of US debts dumped some $106 billion worth of US Treasury bonds (annualized), and is looking to continue trimming its holdings "systematically" - the publication states.

 

A key reason stated for the liquidation is that China is anxious over risks associated with the surging debt level in the US, which is expected to actually exceed the size of the economy in 2021, which would be a first since the end of World War II. What's worse is that as the CBO has shown, what happens over the next 3 decades is even more insane.

I don't know why they would stop at a mere $800 billion, why not just sell the lot while they can get something useful for it.

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I don't know why they would stop at a mere $800 billion, why not just sell the lot while they can get something useful for it.

 

'Cos (IMO) we've got about a decade left of this non-sense, MMT, fiat, fractional reserve, Federal Reserve Saves All, BS system.

And in the mean time, like it or not, USA is still the largest, most open, transparent capital market in the world. Something the 'current' China will never achieve.

A USA treasury is like fertilizer: You know what it is, you know where it come from, you know how it stinks, but it serves a purpose and has use.

 

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