Via SchiffGold.com,
The 10-year treasury yield rocketed up to near 5%, and analysts say it’s because the economy is strong despite higher inflation.
But if the economy is so strong, why are Americans so indebted, cash-poor, and desperate?
10-Year Treasury Yields
Source
The recent spike in 10-year yields has been explained away by many as the result of a strong economy, but they fail to mention that high inflation makes the 10-year yield harder to contain. High 10-year yields support higher rates for things like car loans and mortgages, and with the world still under the inflationary spell of COVID-era QE and free money “stimulus,” the only answer may be—you guessed it—more free money QE to “stimulate” an economy that’s already stuck in an infinite loop of inflation. As Peter Schiff said recently:
“I think that they’ve already lost control of the long end of the bond market…the Fed is going to be pressured to try to lower long-term rates, and the only way it would be able to do that is by buying the long term bonds, and the only way to get the money to do that is to print it.”
But not even the Fed has a clue for how it would deal with a stagnation…
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