Thread by @TFL1728

Building on things @biancoresearch has talked about.
Trump wants to be repaid for the post-WWII defense arrangements with the EU.

One of the possibilities is a cram down on the debt they have. Trump's opening off is to replace all the existing USTs owned by European banks (not clear if it's commercial + central or just central) with 0%, perpetual or 100-year bonds.

Now, I think this is a pretty hilarious offer especially in light of what I've been saying for 3 years about how the EU + UK complex has been gorging on USTs since Powell began raising rates.... to the tune of $1.1 trillion net/net since Sept 2021.
/1

They did this to manage credit spreads between US and UK/German bonds in order to keep their banks solvent.

Look up Lagarde's Transmission Protection Instrument (TPI), she instantiated in July 2021 in response to Powell's 75 bps raises back then.

The speculation then was to help the ECB manage the Italian/German spreads which were blowing out... @zerohedge covered it that way back then.

It wasn't.... the real control lever is US yields, against which all other debt is measured. Control the long-end of the US YC, you control global rates.
/2

Now, that the Euro-zone + UK and subsidiaries (Caymans, Canada, Bermuda, BVI, etc) are the largest holders of US debt, the bulk of which were bought at much lower prices, higher yields, Trump wants to cram them down to 0%
/3

BWAHAHAHAHAHAHAHAHAHAHAHAHAHAHA.

Especially since now US/UK spreads are screaming higher after the "Coalition of the Willfully Obtuse" met this weekend.

Today this spred is 39.5 bps. When it reached 60bps in the fall of 2022, it caused the fall of the Truss Government... the so-called "Coup Against the Lizzes."

4/

Now let's look at the US/German 2 and 10 year spreads shall we:

So, how much of this bullshit was funded by our own government and these treasonous NGOs?

I screamed about Yellen and her supporting Lagarde.

"Lagarde's 1st Panic coincides with the German 10 year breaching 2.5% b/c the US 10-year was headed towards 5%. Yellen starts Treasury Yield Curve Control
She and Lagarde drive spreads down, and the BoJ gets the opportunity to end QE definitively, by defending the JPY and begin the unwind of the EUR/JPY carry trade.

The response this week to the events of last week are telling you everything you need to know. The Panic is here, it's real, and it's NOT the US that's panicking.....

... It's Europe and the UK.

Whatever these pricks think they are going to do in Ukraine, Trump will make them pay for it through the nose.

/5

The real war is financial.... it always is.
/fin
@threadreaderapp

July 2022.... mistype.