They’re on a perilous path. And my analysis is not political. This is about a rapidly deteriorating global bond market environment, with a U.S. President/administration champing at the bit to overstep every boundary, to disregard all constraints, and to defy every limit. Unhinged Friday got us one full step closer to a crisis of confidence.
The rumors are about to play out.
It’s all pro-Bubble, which at this extraordinary juncture equates to pro-“Terminal Phase Excess”. Bessent has significantly raised the stakes. This seemingly ensures the Fed’s balance sheet will be called into action, as the market challenges the Treasury’s control over market yields and currency stability. And this dynamic helps explain the week’s surge in precious metals and commodities prices.