On the Brink of a Bond Market Apocalypse! « Socio-Economics History Blog
Will the FedRes let the bond market collapse? It is clear that foreigners are buying much less bonds, from the latest auction results. No amount of money is sufficient for the deficits the US government is generating. In the end, the FedRes will aggressively monetize debts (QE) by printing money out of thin air. It is a currency event and the precursor to the collapse of the USD. Whichever way you look at it, even if the bond market does not collapse, it will be paid with useless toilet paper USD. It amounts to the same thing: a collapse (albeit via the USD). Martin Weiss warns:
Trusting Washington and Wall Street is bankrupting millions of Americans … and now they’re at it again! In the 1990s, Wall Street urged you to buy Internet stocks at 500 and 1,000 times earnings — and even tried to railroad you into stocks with no earnings at all. Result: According to the Fed, nearly $6.6 trillion vanished into thin air when those stocks crashed and burned.
Then, in 2001, Washington got into the act — driving interest rates to their lowest levels since World War II … helping to create the greatest real estate bubble in history … and doing absolutely nothing when money-hungry bankers and brokers broke every rule in the book. Result: The Fed’s latest report reveals another $15.5 trillion in losses the great real estate bust, credit crisis and recession.
The bottom line: In less than one decade, investors who trusted Washington and Wall Street were fleeced to the tune of $22.1 TRILLION! Now, by bailing out bankers, brokers and CEOs, Washington has created the most dangerous bubble so far: The enormous and rapidly growing explosion of federal debt — U.S. treasuries — dumped on investors worldwide.
An explosion of debt under Trump budget and tax bill… check
An explosion of bond sales due to Trump budget and tax bill…. check
What will the third explosion be? How long will it take?