Business

Submitted by John Rubino via DollarCollapse.com,

Something interesting has happened. China earlier this year responded to falling stock prices by borrowing a trillion dollars and spending it on commodities, boosting the prices of iron ore, oil, copper, etc., and giving the global economy a patina of recovery.

Nothing unusual so far. China did the same thing in response to 2008’s Great Recession, and the world breathed an appreciative sigh of relief, ignoring the massive new leverage that the policy required.

The gold and silver bullion “super bull market” has been initiated, according to David Morgan of the Morgan Report who was recently interviewed by Future Money Trends.

“We are finally in the very beginning of the new bull market which will be the most exciting as the third leg up is the one that is the most rewarding. In fact few will believe just how high the precious metals will go. The end date is most likely 2018/2019 at this point.”

A day after oil tumbled to the lowest level in weeks, it has once again started to climb, ignoring the changing dynamic in the oilsands region where the fire has now moved away from critical Canadian oil infrastructure, and is instead focusing on concerns about supply disruptions not just out of Canada but also a series of attacks on Nigeria's oil infrastructure which pushed the country's crude output close to a 22-year, cumulatively knocking out 2.5 million barrels of daily production.

This morning's exuberance in equity markets, despite weak inventories data and nothing good from AsiaPac, appears to be entirely ignored by the US Treasury market...

Bonds ain't buying it..

As bonds appeared to have had it correct from the start...

Even VIX is not playing along...

Chart: Bloomberg

When last Friday's disappointing payrolls report hit, which saw just 160K jobs added in April, stocks initially tumbled only to surge as the case of a June rate hike was quickly taken off the table. Not only that, but according to Fed Fund futures as of this moment, the Fed won't hike until some time in early 2017. However, one look at the latest JOLTS data, admittedly Janet Yellen's favorite jobs indicator, paints a very different picture.