4/11/2025 Bond Sell Off Continues; Mortgage Rates Skyrocket

China’s economy is fake. And would absolutely collapse without the United States. There’s a reason they’ve gone full blitzkreig on social media trying to spin a narrative…..they never post on American social media.

China’s economy has been struggling for a few years now and a trade war with the US will not go well for them. Full stop there.

The question is which population can take the blows better? You saw the whining about egg prices in the US. How will Americans handle the shitstorm that’s coming our way?

From todays report:

:Consumer sentiment fell for the fourth straight month, plunging 11% from March. This decline was, like the last month�s, pervasive and unanimous across age, income, education, geographic region, and political affiliation. Sentiment has now lost more than 30% since December 2024 amid growing worries about trade war developments that have oscillated over the course of the year. Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month. The share of consumers expecting unemployment to rise in the year ahead increased for the fifth consecutive month and is now more than double the November 2024 reading and the highest since 2009. This lack of labor market confidence lies in sharp contrast to the past several years, when robust spending was supported primarily by strong labor markets and incomes. Note that interviews for this release were conducted between March 25 and April 8, closing prior to the April 9 tariff partial reversal.

Honestly, I think the US market can ween itself off cheap goods, we’ll pay more initially, but it’s not going break us….TBH, people need to consume less.

My biggest angle in this is, something had to change….and it couldn’t be done slowly. That band aid needed to be ripped off.

The US was getting ripped off, the trsde deficit spiked from 2020-2023…..so many things had to change.

Yep, more than a few economists have stated that this will be the last time we see a drop in inflation for a while. I didn’t include that in my post because people here bristle at any criticism of Orange Jesus. China is not blinking and that is going to lead to damage to both economies. It will be worse for China than for us , but does their leadership care if the people in China suffer? They’re used to hardships.

The leadership doesn’t suffer consequences. It’s a dictatorship. Much different in America where we get pissed when the price of eggs goes up.

Scary graph.

Edit: if this trend continues the credit markets will seize up, which is why we saw the tariff backpedal this week when the bond market was crashing. Japan started dumping bonds on April 09. Another reason for the tariff backpedal. If China and the Saudi’s do the same. Lookout.

Edit #2 China knows the playbook, dump bonds and we will capitulate, remove tariffs and put out a tweet pronouncing victory. So predictable.

Don’t get mad at me, counter my point with data.