For 40 years US government bond interest rates were trending downwards, whereas US government bond prices trended upwards. In March of 2020 I believe the two trends reversed and we're witnessing the end of the bond bubble, although it's still not conclusive yet.
The 30 year US bond yield is 2.251%, The 50 month moving average is 2.291%. If the bond yields go higher they'll be hitting 52 week highs and reversing the downtrend to an uptrend of the 50 month moving average.
That will create a financial crisis, caused by mal investment and mal consumption incentivized by interest rates too low for too long. That is, a lot of bad debt worth pennies or dimes on the dollar.
Welcome to the greatest financial shit show on earth since the 1930's.
Excellent and concise summary of the dilemma we have let ourselves be steered into. Thanks!
For 40 years US government bond interest rates were trending downwards, whereas US government bond prices trended upwards. In March of 2020 I believe the two trends reversed and we're witnessing the end of the bond bubble, although it's still not conclusive yet.
The 30 year US bond yield is 2.251%, The 50 month moving average is 2.291%. If the bond yields go higher they'll be hitting 52 week highs and reversing the downtrend to an uptrend of the 50 month moving average.
That will create a financial crisis, caused by mal investment and mal consumption incentivized by interest rates too low for too long. That is, a lot of bad debt worth pennies or dimes on the dollar.
Welcome to the greatest financial shit show on earth since the 1930's.