Zerohedge;
In plain terms, yesterday’s bond auction means the government sale of debt that is necessary to continue running the economic Ponzi scheme we call fiscal and monetary policy didn’t go quite as well as old crow Janet Yellen’s medicine show would have liked.
Insanity masquerading as fiscal and monetary policy has consequences. You haven’t seen anything yet.
BINGO
The next bond auction will likely have to be bailed out by the Fed, i.e. creating money and inflation rolls on. This is indeed the death spiral.
Related, it is interesting that the totes claim the economy is good, yet the US government is running deficits of 7% of the entire economy, what would it look like without all that easy money?
It looks like we’re at the “running out of other people’s money” phase.
Less people are buying, so the question become how bad will that be for markets of bonds that aren’t paying 4.769% ?
You know, like Canada, who’s at 3.61%, with a 1.75% coupon rate…
Indeed.
GIC’s are paying 5+%
Why the hell would anyone want bonds.
The Chinese can’t afford to cover their American allies’ bad cheques any more. The rest is details.
Fear not.
Our financial wizards and Dear Leaders,will prove that we are infinitely wealthy.
By dividing by zero.
To infinity and beyond!