Bill’s Commentary:
“No matter what, both sides of the Pacific Ocean will PUMP COPIOUS AMOUNTS OF NEW MONEY INTO THE SYSTEM as sure as death and taxes!”
China’s Keynesian Model Is Crumbling. It Needs a Trade Deal, Fast…
In the past decade, the Chinese economy has expanded its central-planned neo-Keynesian model that simply cannot survive without a trade deal. The Chinese manufacturing sector has followed a running-to-stand-still strategy that simply cannot subsist without the enormous trade surplus with the United States.
The Chinese manufacturing sector overcapacity is not an anecdote. It is the norm. China produces 30% of the world’s manufacturing goods but consumes less than 18%, according to CKGSB. Additionally, China’s industrial capacity utilization rate fell to 74.1% in the first quarter of 2025.
Bill’s Commentary:
“Drill baby drill!”
Gulf Coast may be sitting on more undiscovered oil and gas than we thought
Dating to the Cretaceous period, the geological era between 145.5 and 66 million years ago, the sedimentary rocks far underneath East Texas and Louisiana contain significant undiscovered energy resources, the U.S. Geological Survey reported this week.
According to a USGS news release, the Hosston and Travis Peak formations under the western Gulf Coast states could yield as much as 28 million barrels of oil and nearly 36 trillion cubic feet of natural gas. The release added that since exploration began, the formations have already produced 8 trillion cubic feet of natural gas and 126 million barrels of oil.
Bill’s Commentary:
“Remember this, the global financial system rests entirely upon “debt”. This foundation will ultimately be seen as quicksand…”
Japanese 40 Year Gov’t Bond Trading at Record High Yield Signals Trouble in One of the Largest Bond Markets
As I write, this morning the Japanese Government (JGB) 40 Year bond is trading at record high yield, currently 3.44%%.
There are only two times in history that the JGB 40 year has traded as high as 3%. That happened in January 2011 and again in January 2024.
As one can see in the chart above, rates on the JGB 40 year have spiked from just 2.60% a month ago to 3.44% today.
Bill’s Commentary:
“Interesting!”
BillHolter.com 
It can’t be “million” barrels of oil. Global demand is 105 million barrels per day.
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Thank you pamelamoves@gmail.com
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