Western banks have enormous exposure to interest rate swaps.

That alone given interest rate volatility poses potential systemic risks.

Banks are in a far more precarious position now than in 2008. Not least in their asset / liability mismatch.

Reality playing out again.

Russian manufacturing grew at its fastest rate in 3.5 yrs in September due to production, new orders and client demand.

A Russian attack on a NATO ally would not necessarily lead to "all-out war", UK's Defence Secretary Ben Wallace said.

"Article 5 doesn't necessarily mean all-out war"

NATO again demonstrating it doesn't want to go to war directly with Russia.

Then capitalisation of a bank is irrelevant if there is a crisis of confidence and clients run for the exits

#winning

UK manufacturing output fell for a third month in a row in September and orders declined for a fourth consecutive month.

German manufacturing contracted for a third month.

French factory activity contracted at the fastest pace since May 2020.

Etc etc etc

Kwarteng:

High interest rates have been driven by the Fed. It is a global issue.

So it is now the fault of the US.

😂😂😂

Gazprom has told European gas customers that Nord Stream 2 is still able to transport gas despite the sabotage of both NS1 and NS2.

Reality strikes again:

UK intends issuing exploration licences for offshore oil and gas. Even if, the big if, namely drilling is successful, it will likely take a decade before such reserves would be in production.

UK finally learning that the oil and gas supermarket is a myth

The US is failing rapidly as an empire because it seeks to destroy Russia via the Ukraine war, attempting to draw China into a similar conflict with Taiwan and is clearly behind another attempt to implement regime change in Iran. Their desperation is obvious.

When a nation's currency is rejected they end up printing their own money.

When you look at the huge growth of the Fed balance sheet, when trillions were printed, it is because no-one was prepared to buy US debt and hence why de-dollarisation is ongoing.

The fabricated demand for USTs that has been implemented since 2008 is mind bending.

USTs via interest rate swaps.

Ask yourself why your fintwit heroes never discuss this?

So now it is back to the usual strategy, punishing austerity.

The timing couldn't be any worse. UK is a clown show on steroids.

https://www.independent.co.uk/news/uk/politics/kwarteng-cuts-tax-truss-budget-b2191341.html?utm_content=Echobox&utm_medium=Social&utm_campaign=Main&utm_source=Twitter#Echobox=1664783325

Gold and Silver spiking

Equities spiking

Has something leaked somewhere about a Fed policy shift?

We will know soon enough.

Sure UK has never done anything remotely like this since.

https://www.thetimes.co.uk/article/britain-secretly-backed-mussolinis-march-on-rome-pzsr2hpb8

Back in early spring 2021, Washington tried to strike a deal with Russia, namely they could have Donbass in return for Moscow ending Nord Stream 2.

If you fight endless wars, implement regime change, impose sanctions, install puppet leaders, destroy nations economically and financially, have 800+ global bases, spend 750bn annually on military budget to preserve your WRC, you will also massively manipulate your currency.

European unity at its finest:

Poland is now officially demanding $1.3tn from Germany for WW2 reparations after the Polish Foreign Ministry made an official declaration in writing.

It's only resilient because of the injection of QE. Without it gilt yields would keep rising.

https://www.reuters.com/markets/europe/exclusive-uk-gilt-market-resilient-despite-major-repricing-debt-office-head-2022-10-04/

Europe facing the reality they chose to embrace.

Bank Of Spain:

It has seen a deterioration in the economic and financial position of companies who have the most exposure to the spike in energy prices.

In other news, night does indeed follow day.

All in it together

EU commissioners are calling for joint EU borrowing to deal with the energy crisis.

Borrowing from who exactly? The ECB?

I thought there wasn't a crisis, they had it under control. That is what they keep telling us.