The interest rate on the 10 year treasury is increasing. The market is not satisfied with the return they will get for locking their money away for 10 years. This is because of the fear of inflation.
Debt has been cheap for quite a while and its because interest rates are low. If nobody wants to buy government debt then the Fed will have to raise the rates in order to attract bond buyers. Government bonds are considered the safest haven for your money since they can simply print the money they promise to pay you with. The amount of debt that governments have taken out because of the Pandemic is enough to make people concerned about inflation.
Corporations also offer bonds but they have to earn the money they promise to pay you with. Since there are many corporations surviving on cheap debt alone they will need to find a solution to raising interest rates. They could downsize, restructure and even lay off employees. Or they could sell all the stock they have been buying up all these years while the stock market is at all time highs to pay off their debt. This could crash the market if done all at once.
It could be argued that the reason for the lockdowns and extended COVID hysteria is about managing a controlled economic collapse. If people realized that its their retirement they need to worry about and not the coof then they may call their brokers and tell them to get out. So instead they give us another reason to have the same type of fear we may have if we lost it all without actually realizing how we might lose it all. Meanwhile stock markets still flirt with all time highs... while the sky falls.
So, are the powers-that-be creating and/or stretching out the "pandemic" as long as possible in order to 1) crash the economy and 2) to be able to blame the virus for the crash when it happens?
https://www.cnbc.com/quotes/US10Y
The interest rate on the 10 year treasury is increasing. The market is not satisfied with the return they will get for locking their money away for 10 years. This is because of the fear of inflation.
Debt has been cheap for quite a while and its because interest rates are low. If nobody wants to buy government debt then the Fed will have to raise the rates in order to attract bond buyers. Government bonds are considered the safest haven for your money since they can simply print the money they promise to pay you with. The amount of debt that governments have taken out because of the Pandemic is enough to make people concerned about inflation.
Corporations also offer bonds but they have to earn the money they promise to pay you with. Since there are many corporations surviving on cheap debt alone they will need to find a solution to raising interest rates. They could downsize, restructure and even lay off employees. Or they could sell all the stock they have been buying up all these years while the stock market is at all time highs to pay off their debt. This could crash the market if done all at once.
It could be argued that the reason for the lockdowns and extended COVID hysteria is about managing a controlled economic collapse. If people realized that its their retirement they need to worry about and not the coof then they may call their brokers and tell them to get out. So instead they give us another reason to have the same type of fear we may have if we lost it all without actually realizing how we might lose it all. Meanwhile stock markets still flirt with all time highs... while the sky falls.
So, are the powers-that-be creating and/or stretching out the "pandemic" as long as possible in order to 1) crash the economy and 2) to be able to blame the virus for the crash when it happens?