Economy both pragmatically and psychologically china owns more of our debt than just about any other country so why are they doing this why are they doing this all right so all right hold on im being told now that the 2nd breaking story that we would tell you about has just occurred and this is where this plays into this situation with china think about this just today the u. S. Federal reserve was getting ready to announce or at least contemplate a historic move the u. S. Federal reserve was considering moving the u. S. Interest rate into negative territory but weve just learned just moments ago confirming. That the fed will not lower Interest Rates below 0 will not this is coming in as im telling it to you its being told to me by by producer thats the announcement weve been waiting for the fact that it contemplated going below 0 is enough though to force china to do what its doing so you see china is essentially worried that when you combine the fed contemplating lowering Interest Ra
Of the world china more of our debt in the United States than just about any country in the world so why would they be doing this right well think about it so just today as we reported here as breaking news about an hour ago the u. S. Federal reserve came within moments of being pressured into lowering Interest Rates below 0 in the end they pulled back from taking them into negative territory but even that build up of what they might do was significant significant enough so china is worried that when you combine what the fed has already done in buying back bonds and pouring billions into banks in printing 2 trillion dollars to pump into a sputtering economy in the United States what you have what you have is the makings of a weaker dollar a weaker dollar in other words as berts describe it the currency will be devalued. And what china is essentially saying is we see a storm coming and were going to start getting out getting out of the way while the getting out of the way is good so wha
A psychological standpoint as well the message that it would be sending to the rest of the world china more of our debt in the United States than just about any country in the world so what here as breaking news about an hour ago the u. S. Federal reserve came within moments of being pressured into lowering Interest Rates below 0 in the end they pulled back from taking them into negative territory but even that build up of what they might do was significant significant enough so china is worried that when you combine what the fed has already done in buying back bonds and pouring billions into banks in printing 2 trillion dollars to pump into a sputtering economy in the United States what you have what you have is the makings of a weaker dollar a weaker dollar in other words as berts describe it as currency will be devalued and what china is essentially saying is we see a storm coming and were going to start getting out getting out of the way while the getting out of the way is good. So
A psychological standpoint as well the message that it would be sending to the rest of the world trying to more of our debt in the United States in just about any country in the world so why would they be doing this right well think about it so just today as we reported here as breaking news about an hour ago the u. S. Federal reserve came within moments of being pressured into lowering Interest Rates below 0 in the end they pulled back from taking them into negative territory but even that build up of what they might do was significant significant enough so china is worried that when you combine what the fed has already done and buying back bonds and pouring billions into banks and printing 2 trillion dollars to pump into a sputtering economy in the United States what you have what you have is the makings. Of a weaker dollar a weaker dollar in other words as burkes describe it the u. S. Currency will be devalued. And what china is essentially saying is we see a storm coming and were g
Surging. Awayee emfx which has come , it is coming off as well with the exception of the taiwanese dollar which is stating stable. ,he one, the renminbi won the renminbi they are off. You see the aussie 10year yield lower to 87 basis points. The chinese 10year yield is a turning point. We have seen a selloff in chinese bonds, this could be the Inflection Point to head lower. And we mentioned the oil price, it seems like the recovery could tolongstanding according the fed. We are seeing oil heading to its first weekly drop in two months. In thea trepidation markets come the s p dropping as much as 6 . Lets get perspective. Mark renfield cranfield joins us. We know lots of money is sloshing around. That could provide support for the markets. Mark i think we will have to get used to the higher volatility. But is one of the things we have been experiencing in the selloff in march. On a daytoday basis we get more big swings either up or down. 5 or 6 , movement has become more common. There