There is a significant concern over the US debt downgrade and the government’s contradictory actions regarding borrowing and buying back debt. This indicates a lack of control and raises questions about the effectiveness of the measures being taken. Tune in on Tuesday August 8^th for my research piece on this topic.

I am Lynette Zang, Chief Market Analyst here at ITM Trading, and you might have noticed that yesterday, Fitch Ratings service downgraded the US debt, and that’s because there’s a lot of divide, etcetera, etcetera.

But then they issued, the treasury came out and said, we’re going to be issuing $103 billion in treasury bonds, notes, bills, the difference is just the maturity. And then this morning they announced potentially to buy back debt. So they’re gonna borrow to pay off debt that probably has a lower coupon, a lower interest rate to borrow at a higher interest rate. Or if you don’t really need 103 billion, which is higher than what they anticipated, why in the world are you borrowing and then turning around and talking about buying back the debt? Do you see the problem here?

This follows the Bank of Japan, same kind of schizophrenia on Friday. They widened that band because frankly, they’re losing control of their bond market. We are also losing control of our bond market. And then on Monday, they did just the opposite by announcing a bond buying program. The banks don’t, the central banks don’t know what to do because we are at the very end of this currency’s lifecycle. And I told you yesterday that we’re, yeah, yesterday was Tuesday. I told you that I felåt that what was happening at the Bank of Japan was the canary in the coal mine, and here we’re at it. Again, these banks are just throwing whatever they can up on the wall and hoping that it sticks. But what we’re seeing in the way that I believe, this is the way I’m recognizing it. You do whatever you want with this information, but there’s a lot of schizophrenia going on because they are losing control.

We are at the end. If you have not executed your strategy, get it done. If you haven’t started it, click that Calendly link. Talk to one of our experts, get it in place and get it executed. What are you waiting for? Me, I’m not waiting. I’m gonna be talking a lot more about this. They’re debating right now on whether, oh, well, what? What does the credit rating really matter? Look, that happened in 2011 with S&P, and did it really matter? We have been in crisis since 2008 with all of these extraordinary manipulating maneuvers. Bank of Japan, since the early nineties, have been showing us the way to do this by creating all of this garbage. And it hasn’t worked people. It hasn’t worked. So you’re gonna hear that this is not a big deal, but I’m sitting here telling you it’s a very big deal, and I will talk about it in more depth next Tuesday. But I definitely need it to come out and tie those strings together for you, because what’s happening at the Bank of Japan, what’s happening here with our Federal Reserve and our treasury department, it tells me the central banks are losing control. It’s a big indicator. And until next we meet. Please be safe out there. Make sure you tune into the Q&A. See you later.