WTF is Happening in the Treasury Bond Market?
The bond market is collapsing! In this video, Lynette breaks down how the volatility is a sign of an impending earthquake that will leave the global financial system in ruins. She warns those with wealth in mutual funds, ETFs, annuities etc are at extreme risk of losing it all soon.
- Volatility in the treasury bond market leads to rising interest rates and lack of liquidity.
- Foreign governments selling US bonds results in decreased demand for US debt.
- The Federal Reserve selling off their bond portfolio reduces support for bond prices.
- Smart institutional investors exiting bonds transfers risk to less stable investors.
- Lack of stable buyers for US debt could lead to failed Treasury auctions.
- A failed Treasury auction would make it harder for the US to issue new debt.
- Investing in money markets risks losing principal if corporate/government bonds default.
- People complacent about the financial system won’t take protective measures like buying gold.
- Waiting too long to buy precious metals means limited supply and higher prices.
- Ignoring signs of systemic instability results in loss of wealth when crisis hits.