A bond is a promise, and trillions of promises are not going to be kept. From Matthew Piepenburg at goldswitzerland.com:
From bond markets to border wars, the world is openly and objectively tilting toward disaster. Many of us already know this, but what can be done?
The Latest Fiasco
As I look back on just the latest and entirely predictable hours, days and weeks of waste occurring in the global debt markets in general, and the U.S. Treasury markets and banking systems in particular, the billions and trillions sloshing and churning through emergency swap lines, discount windows and broken financial systems almost defies belief.
For the last two years, we have consistently shouted from the roof tops that the “bond market was the thing,” and that when it eventually broke, markets (and innocent financial lives) would tilt toward implosion, immediately followed by more centralized controls from the very policy makers who caused the crisis.
Bond Market Disaster: Guilt So Easy to See, Responsibility So Carefully Denied
And now, almost is if on cue, we are seeing yet another crisis in the bond market and yet another scramble among the guilty to re-arrange the deck chairs on a financial Titanic of literally their own design.
As my colleague, Egon von Greyerz, has warned for years in general and this January in particular (see minute 12:18 in the following link), the banks would be the next domino to fall after prior dominoes (the repo markets of 2019, the sovereign bond fall of March 2020, and the gilt implosion of 2022) had already (and so-clearly) pointed the way.
None of these total bond implosions were accidents, black swans or market aberrations.
STRAIGHT LINE LOGIC 