Cracks in the bond market

Ronald Stöferle in an interview with Egon von Greyerz. Topics are the financial crisis, the ever-widening cracks in the bond market and possible protective measures against the crisis.

What is the Federal Reserve doing?

In the entire history of the FED, there have only been a handful of years in which a budget surplus was allowed. The FED keeps going into debt and there seems to be no end to the money printing. But do they not see where this is leading? However, every politician hopes that it will not collapse on their watch. And so, the ball just keeps getting passed around.

 

The end of an era

A new era has dawned. That of central bank digital currencies. But how long will they be able to last. In addition, we seem to live in a completely surreal world in which climate change is to blame for inflation and must be fought with inflation. The creativity of central banks is inexhaustible when it comes to legitimising and keeping alive the monetary system built on sand. But when the crash comes, swift action will be necessary.

 

Interest rate structure control

While the Fed can keep the interest rates of short-term bonds down by massive money printing, the control over the long-term ones is far from good. If the interest rates on these bonds rise, there will soon be calls for interest rate structure control. This would be carte blanche for unlimited QE. This coupled with further financial repression would further complicate the situation. But one thing is simple. The taxpayer will pay for it.

 

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