Ed Yardeni explains why the bond vigilantes aren't happy

Define Bond Vigelante!!? Most bond buyers are large banks/pension funds and foreign countries and they use it as collateral. The selling is mostly due to increasing dollar value and US interest rates. Many foreign US dollar debt holders needs more dollar to pay the coupon. To get access to dollar liquidity China/Japan etc start selling US bonds creating a huge selling pressure, which in turn increate interest rates and dollar value. Its a doom loop and is done out of economic weakness.

If the fiscal deficit is cut, the US economy will crater and enter a debt spiral as tax revenues fall and social security payments rise.

AIRBNB & Real Estate Doomed.

What? Let's see. (1) Oct 3rd the government restates prior 3 years of growth (significantly lower) and inflation (higher than reported). (2) Visa reports consumer spending slowing at the fastest rate in history. (3) Gov't spending and borrowing going to increase dramatically with Chips and Inflation Reduction Acts - meaning new record borrowing with few buyers (4) Real estate and banks in trouble, (5) China in trouble and need to repay dollar denominated debt to European banks uncertain, (6) Student loan repayments starting up again, finally, (7) delinquencies on credit cards and used car debts spiking, (8) a President literally asleep and we're not sure who is running the government, (9) House Speaker kicked out first time in nation's history, (10) massive illegal immigration putting a new strain on cities and states, (11) the S&P trading at 23.46X vs historically at 17.86X or way overpriced. - Do I need to go on?? Ed's a bright guy but the set up is all very bad right now. When the selling starts it's going to be very ugly.

Cut Defense Budget.
Cut War & Coup Support.
Taxes back to 1996.
Infrastructure Important?
Chips homemade Important?
Ecology Important?

I'm not sure but what I do know is Joe Biden and Jerome Powell are incredibly incompetent

inflation really has not been "moderate". For instance rents, auto prices and house prices nearly doubled from 2008 to 2019 and then they went up another 50% the last 2 years. Inflation has always been 10% a year on average. 25% the last 2 years.

The FED seems to have slowed down
on Bond Purchases.

Yields have gone parabolic. A change, even if short term, is coming and it’ll rip the faces off the chasers…

The negative feedback loop of higher interest rates and higher deficits ends in BANKRUPTCY and the COLLAPSE OF THE DOLLAR. Long Gold and Silver. Higher Rates are NOT BEARISH for Gold and Silver, they're signaling the beginning of the end of the FIAT PONZI.

Normal lol with 1 trillion interest on debt. Americans will be paying 70 cents on 1 dollar in taxes to pay that off.

Boy I hope that’s true Biden only moves with blood in the streets

Democrats want inflation. We're gonna get it.

We're going beyond normal. Democrats fell in love with mmt. Back to 70's and 80's. Type of rates. Not 90's 2000's.

'Treasury needs to get back in control or bond vigilantes will impose some order'. Spending is out of control, government debt exceeded $33 trillion, interest on the debt will keep increasing as it rolls over and older debt is re-financed at higher interest rates (going from 0 to 5%). If all the debt is refinanced at 5% or higher, the interest will be more than $1.65 trillion, almost half the $3.97 trillion collected by the government in fiscal year 2023 which started in October 2022.

Amazing How Short Sellers Cover Shorts without getting squeeze with the help of feds comments and these clowns fake news!

Japan are selling treasuries to defend the Yen.

I'm holding these bonds until it reaches lows! I'll report whatever loses to taxes

There are no bond vigilantes. What world are you living in? The reality is that the FED is not going to reduce rates any time soon and those holding long duration U.S. treasuries are waking up to that reality. There is also a possibility there is no recession or a very mild recession, where as those that were holding long-term U.S. treasuries were hoping for a big recession. Bond investors are moving into shorter duration bonds expecting to reinvest either at short term rates or longer term rates once they increase. It is interesting to watch the yield curve flatten from being inverted even though there was no recession. Normally the yield curve inverts, then you go into recession, then the FED reduces rates, and then finally the yield curve returns to normal. That is not happening this time it seems.

The media is currently barraged with a lot of economic data right now. It takes a lot to see beyond the whole ocean of news on focus on what is important, which is that no matter how low stocks go, they always bounce back. I really ignore all the news and keep investing. recently allocated about $61k to put in the market as we anticipate a crash. Any recommendations?