The big news early this morning is that Chinese officials have publicly announced that they are considering halting the purchase of additional US Treasurys.

This news initially sent shock waves though the “markets” (still in quotation marks because they are no longer true markets, distorted beyond recognition by ten years of coordinated central bank intervention) with both bonds and stocks selling off.

Naturally, “stabilizing” forces showed up almost immediately; purchasing US equities in the futures market while also selling gold. But the fear in response to China's declaration remains evident.

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