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World News See other World News Articles Title: Huge Problem: Pension Funds Hold About Two Thirds Of This Garbage by Capitalist Exploits “GILTY” AS CHARGED I had written the below late last week. And then today, I was going to have to delete it. That is how fast things are moving. UK Gilts, which are the very belly of the parasites funding lines over on that murky island are now in deep isht. It’s almost like shutting down the entire economy for the flu may impact GDP growth and hence serviceability of the debt burden. That was true before interest costs went up. And now they have. A LOT. Something’s gonna break here and the UK government are going to need a bailout. This will at this stage have been organised – for sure. The only thing to deal with now is to put together a committee to “assess the crisis”, determine the “best course of action” and then rubber stamp what the government was gonna do anyway. And of course, now I have to tell you that this has already happened before I could get this out. Imagine if I only wrote a monthly newsletter instead of a weekly? Jeez, I’d have to rewrite it a dozen times. So I wrote that and then boom, this happened: UK Treasury to Transfer £11 Billion to Bank of England to Cover QE Losses Hahaha! It’s a “transfer”. Definitely not a bailout. A transfer. Got that? Anyway, moving on. Let’s consider some second order effects of what is happening here. A lifetime ago now, back in January of this year, the 30-year Gilts traded at 80bps. A few weeks ago that hit 5% and now trades at 4%. Pension funds hold about two thirds of their portfolios in this garbage so this is a huge problem. But it gets better… or worse. You see, because pension funds were getting such a shitty return from their Gilts, they pledged them as collateral so that they could go out and buy something that would provide a return (risky unprofitable “growth” mostly). This is why for over three years now we’ve been warning about the entire risk parity trade. Now it’s all blowing up. We were early to see the danger but that sure beats the hell out of being late now, doesn’t it? So anyway, back to the good ol’ Gilts, which have been pledged as collateral by those pinstripe suits at billion pound pension funds. Well, their models never accounted for both bonds and equities to decline AT THE SAME TIME. And certainly not at such speed. Now they are likely being forced to meet margin calls on that collateral that just vomited on the carpet. And so they have to sell assets (equities) to meet those calls. Any profits made for the year have long been vaporised, and now it’s a matter all about survival. One other thing before we lay Gilts to rest for the time being. Remember how we just said Gilts are trading at 4%? UK official inflation numbers were just released, and you know what? They clocked in at 10.1%. Ha, imagine that! Now, you know what that means? It means the BOE is waaay behind the curve on inflation. Who, for example, wants to hold a bond that yields 4% when they’re losing 10% annually? Aaand…. just as I was about to send this to my team to format these letters and make them pretty before getting them into your hands, the lettuce won. Daily Star lettuce celebrates victory as Prime Minister Liz Truss resigns Prime Minister Liz Truss failed to outlast the Daily Star’s very own 60p lettuce – but as Liz becomes the shortest-serving PM in British history, which cabbage can we expect in Downing Street next? Shakespeare said that all comedy is tragedy plus time. Smart man! In any event, my vote is for the lettuce as the new PM. I’ll go with an iceberg since it would only be appropriate for the new captain of the Titanic to be named Iceberg. Moving along but sticking with the farce that is British politics. Who’s it gonna be? Well, if the WEF gets its way, it’ll be Rishi Sunak, the son-in-law of Narayana Murphy, the founder and chief architect of Infosys. Infosys runs the largest digital ID/ social credit system in the world: India’s AADHAAR system. Do you understand how this works yet? I hope so. Smart investors are already preparing for what’s coming… For those looking to prepare and profit from this mess, we can show you how. Just click on the links (below my name) to find a solution that works best for you. Post Comment Private Reply Ignore Thread
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