Warning: The Fed Lost Control of The Bond Market
Premiered 17 minutes ago
The Fed is in a difficult situation; it has lost control of the bond market.
The ten-year yield is obviously being manipulated and thus has no bearing on the market. Powell couldn’t be more clear yesterday, and yields dropped a little.
This morning the yields jumped 6%; on WHAT news? Big banks have all reasons to manipulate the treasury yield. They want to force the Feds hands to hike interest rates because high rates profit to the bank. Let’s be real. Rates are going up because there are no buyers. It has to run hot for countries like Japan and others , so they can buy it.
Meanwhile, the Federal Reserve’s balance sheet is HYPER-BALLOONING, gaining 100% in a year. It went from $3.8 trillion in September 2019 to over $7.5 trillion today. Stocks are always better than bonds. History shows compound interest is worse than treading water.
The bond market has become irrelevant. If you want to retire on government bonds, you’re going to have to end up eating that dog. Nobody in the right mind would buy bonds and look to retire.
Treasury securities issued by another bankrupt country, not worth the paper it is printed on if it was even printed. Even Confederate treasury notes are worth something to collectors. Not much value in antique digital certificates.
We have no way to service the debt other than sell real estate or monetize the debt. Powell and the Fed are irrelevant. The charade is over.
The news that the Federal Reserve has little real control over Treasury yields. They manage the short-term rate, which is extended (historically) primarily only to banks. The majority of Treasury purchases are far beyond the reach of the federal reserve.
If the Fed loses control and yields spike, the economy will collapse.
A yield spike could lead to panic, contagion, and credit crunch. Trillions of bonds underwater. What if the bond yield is 20 percent and still no one wants to buy them?
As investors wise up and stop buying bonds, the Fed will have its hands full. The king is naked.
The market is a self-entitled cartel of algo abusing criminals. Meanwhile, they show inflation at or below 2%, while shadow stats shows inflation at over 6%.
Coming to the end of their game.
Next yield curve controls. Bond market too big for the Fed to control. They can have a super big impact on a specific part of the yield curve, but the entire market is simply too big, and yields indexed to so many different types of loans, so many different ways directly and indirectly.
Get your popcorn ready and sit back.
This upcoming battle between the Fed and the bond vigilantes will be EPIC!
For the full transcript go to https://financearmageddon.blogspot.com