Thread by @frankoz95967943

I am not saying these are correlated.

I am saying this is interesting

It looks to me that china is selling the f out of brit bonds.

$USDGBP #POUND #BRITS #RUSSIA #Ruble

Ok, now thats even more interesting

#1 points to a swap with GBP - everyone freaking out about a crash - no - this is intentional.

Brit pound is nuclear bom in the formula - notice its a mirror image of what GBP does (blue vs purple)

GBP moves HEAVILY influence formula.

What this means is if you were holding oil contracts in Pounds, oil price CRASHED bigly.

You will liquidate your position (or buy cause its now cheap) - im betting the liquidate after looking at the oil price move.

So if you are a brit and you held oil long positions, the fed just f'd you hard and didnt even give you a kiss.

The fed wants oil DOWN - and they will manipulate the currency to make goddam sure its down and STAYS down.

There will be no mercy.

As predicted, the inevitable #SWAP

But oil remains down - speculators are no longer speculating price of oil.

This is what swaps ultimately do.

Shake tree and see the nuts fall out.

So initial swap (1) followed by other swap (2) w/ included gbp interest rate hike.

GBP bonds (3) now pay more than usd (4) bonds.

But heres rub - brits love bonds. Like A LOT.

Those holding bonds have gotten CRUSHED this year.

Looking at balance sheet:ouch.
How they pay this?