Quote from: toknormal on June 11, 2015, 12:11:19 AM

Financial waves lapping up against banks. People dumping 1% bonds for 2.

Also check: http://www.silverdoctors.com/fund-manager-a-derivatives-bomb-exploded-within-the-last-two-weeks/

Tok, one of the harder things to understand about the ebb and flow of world currency markets is the bond yield rate. It's one of those barometers that seems to have numbers attached that work in opposite directions to most other things.

I've just read this article and (as much as I've enjoyed reading Evans-Pritchard's stuff in the past) I'm struggling to understand much of the jargon and throw-away lines he's using.

I wonder if you'd be prepared to summarise the key points highlighting how these yield increases...

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Paper losses over the last three months have reached $1.2 trillion. Yields have jumped by 175 basis points in Indonesia, 160 in South Africa, 150 in Turkey, 130 in Mexico, and 80 in Australia.

...fit into the overall alarming picture?

And this bit...

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Bond vigilantes - supposed to have a sixth sense for incipient inflation, their nemesis - strangely missed this money surge on both sides of the Atlantic. Yet M1 is typically a six-month leading indicator for the economy, and M3 leads by a year or so. The monetary mechanisms may be damaged but it would be courting fate to assume that they have broken down altogether.

...I really don't understand at all (what's "M1" and "M3"?)

Edit: Love your graphic BTW.