ALL LONG TO ALL SHORT

Well that took a turn for the worst today, and today is a wake up call for all of those passive index and account holders who think that being penny wise isn't pound foolish and saving 1% is about to get exposed. After decades of being lulled to sleep by the BTFD all in all long only central bank driven 5x balance sheet bonanza, nature and the bond market for that matter tend to force the narrative with such brute strength that its almost unimaginable. From massive bond inflows to an outright global panic, January is going out with a bang and we look forward to Sunday night when China reopens their markets, well that is "if" they reopen. Anyway two of my favorite global macro guys posted great charts today, the first is from Jim Bianco, and is the US 30Y Treasury which once again broke below 2%:

The next chart is from Tavi Costa at Crescat and this chart is truly scary, but I have to say, I've been waiting over a decade for such a candle stick on the monthly and bygone, I suppose patience is a virtue, because today we got it!

We have always said time is more valuable than money and a chart like this should send shivers down the spine of any late to the party investors riding this central bank driven wave. A lot of trust has been put into pouring more and more debt onto an already weakened global trust system. Just think all of this on top of nearly $2 Trillion dollars worth of Repo over the last 2 months, damn outright shocking if you ask me, but more evidence of the stunningly misconception that the central banks have with reality:

The funny thing about debt is that the more you have of it the less your actual organic asset is worth, it just takes a long time for people to realize it. We can only suspect Gold and Bitcoin will continue to be lifted as more and more distrust comes circling around. We are certain the central banks will look to calm fears and say they will do whatever it takes, but in reality the only tool they have funnels right into widening the income disparity and concentrating wealth so tightly that the mere act of intervention is deemed quite impotent to the overall general public. Have a good weekend!

DISCLAIMER: For educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures nor an endorsement for the purchase and sale of an ICO, Crypto currency or any digital asset and should not be construed as such. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Mike Agne owner of Magnelibra Capital Advisors LLC (MCA) and the website blog, which can be found at www.econemotions.com. All rights are reserved. We will never claim that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, (MCA) makes no warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed.