A Bond Selloff Is Rocking the World. You Might Want to Take the ...

What should we do about this fact? Does this throw off market signals about what the bond market is telling us, since the “bond market” in reference to actual private bond investors is less than half of the recent Treasury demand, while a semi-government institution is more than half of Treasury demand, against a backdrop of record Treasury supply

there is a well-known pattern in government behavior called financial oppression: There exists an alternative to outright default. “Financial oppression” (imposing on creditors real rates of return that are either negative or artificially low) has been used repeatedly in history in similar circumstances. Investors should be prepared to face financi

The point of no return for countries is when interest rates are rising faster than their growth rates. At that stage, there is no hope of stabilizing the deficit. This is the situation many countries in the developed world now find themselves in.

Today, interest rates are exceptionally low and the growth outlook for advanced economies is modest at best. This leads us to conclude that the question is when markets will start putting pressure on governments, not if.