Bill’s commentary:
“Our pal Manny checks in with a good question.”
According to Taiwanese authorities, on Feb. 2, a Chinese fishing boat damaged an undersea communications cable that connects Taiwan’s main island to Matsu Islands. About one week later, a Chinese cargo ship severed another cable.
Located approximately 30 miles off the coast of China, the tiny island of Dongyin has quickly established a backup communication system, as reported by the WSJ. The new system uses a high-powered microwave radio to transmit data to Taipei. WSJ described the disruption as a “wartime scenario” and “in a potential preview of a Chinese attack.”
Bill’s commentary:
“They have raised rates from zero to 5% in roughly 15 months. The largest and fastest hiking cycle in US history …and of course with absolute and ratio’d debt levels never before seen! What could possibly go wrong?”
The latest spike in bond yields was enough to spook the stock market into a sell-off Tuesday, but there’s a silver lining for fixed income investors: Short-term Treasurys are now touting a risk-free return of 5%.
The latest action follows comments from Federal Reserve Chair Jerome Powell, who said Tuesday that interest rates are “likely to be higher” than previously expected. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” he said.
Bill’s commentary:
“Trapped” is a VERY polite word indeed!”
To know how to wait. It is the great secret to success.’ Joseph de Maistre. (1753-1821).
BTW, you may have noticed that occasionally I issue your reading matter after a 3-day gap. This is usually caused by a news-poor week-end.
It also gives me some time for a decent AA* session!
.
.
.
.
.
.
.
.
*: the Alderley Arms; my local, fine, pub!
Bill’s commentary:
“Maybe ‘they knew’ because they planned it and then carried out the plan?”
BillHolter.com 