Pay no attention to those rising sovereign bond yields and rising gold and silver prices; they don’t mean a thing. From Chris MacIntosh at internationalman.com:
The bond market is in deep trouble across the world. Long-term government bond yields are rising everywhere — from the US and the UK to France and Japan.
Of particular interest is the behavior of long dated bonds (30-year), where yields are at multi-year highs. The most extreme is Japanese government bonds (JGBs) at 25-year highs.
The Frogs now have their long-term bond yields at a 15-year high.
This is where rubber meets the road. If you are a government running a budget deficit (and who isn’t running a deficit these days), all this excess spending needs to be financed.
A few noteworthy items with respect to France…
Some 44% of new French debt goes into pensions payments. This comes at a time when there is a “confidence” vote for the PM. I mention this because it doesn’t matter one jot who will be the next French prime minister. The system is bankrupt, and now markets won’t absorb more French debt. France is heading into a debt crisis and yields spiking and gold rallying are simply the canary in the proverbial sovereign debt mine.
What if we put up a too big to fail sign?
Problem solved and a new golden age.